Property Matters June 2009
 
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ReliefPKgUpdate on Renters Economic Relief Package

Supervisors Will Vote on Renters Economic Relief Package June 23

 
The Government Audit & Oversight Committee approved the Renters Economic Relief Package forward at its hearing on May 28 and forwarded it to the Board of Supervisors for a full vote on June 23. The committee adopted some amendments to the package, most significantly limiting the rent increase suspension to periods when the unemployment rate dips below 5%.

 

The full Board vote was delayed to June 23, so that the Fair Political Practices Commission can issue a written decision as to whether or not Supervisor Sophie Maxwell, a landlord who usually votes pro-tenant, can vote.

 

Maxwell sought to be excused, but there is some dispute as to whether or not she has a conflict of interest under state laws.

 

If the legislation is to survive a Newsom veto, then Maxwell must be able to vote (and then vote for it). Maxwell is typically the 7th vote.  Sup. Bevan Dufty would also have to support the package to reach the 8 votes needed to override a Mayoral veto.

 

The package of amendments to the city's rent control law consists of three parts:

         Suspend any rent increases which will cause a tenant's rent to exceed 33% of their income. This provision expands the law's existing provision which enables the Rent Board to suspend rent increases based on "tenant hardship" by expanding when a tenant can apply for hardship and defining hardship as any rent increase which would cause a tenant's rent to exceed 33% of their gross income.

         Expand the rights of tenants to add roommates to help pay the rent. This provision will let tenants bring in roommates so that the rent will be more affordable. The number of roommates would be limited by San Francisco Housing Code provisions which establish occupancy limits based on the size and number of bedrooms in an apartment. Currently landlords are able to limit the number of tenants to levels below what the law allows.

         Limit the amount of "banked" rent increases which can be imposed in any one year. Current law allows landlords, to "bank" annual rent increases and impose them all at once at a later date, often resulting in rent increases of 20% or more. This provision will limit these banked rent increases to no more than 8% in any one year.

Please contact your supervisors and urge them not to support this ordinance.  

SaveMoneyRelocation Payments for Evictions

Many of my clients have asked about the relocation payments for evictions based on Owner Move-ins, Removal of a Rental Unit from the Housing market, or Temporary Capital Improvement Work, as well as Ellis Act Evictions.
 
In 2005 the San Francisco Board of Supervisors amended the Rent Ordinance to require owners to provide relocation payments of $4,500 per tenant up to a maximum of $13,500 per unit, with an additional payment of $3,000 for each elderly, minor or disabled tenant, evicted for no-fault of the tenant. 
 
The amendment also requires that the relocation payment amounts be adjusted for inflation on March 1, 2006 and March 1 of each year thereafter.
 
The current relocation payments are $,4941 per tenant, with a maximum relocation amount per unit of $14,825.  The additional amount due for each elderly, minor or disabled tenant is $3,295.  In the event of an Ellis Act Eviction, these amounts are increased to $4,945.46, $14,836.35 and $3,296.96 respectively. 
 
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