August 2004

Sound Minds Prevail at the Board of Supervisors
Supervisor Chris Daly';s attempt to expand and retool San Francisco's Rent Board Commission was soundly defeated last month at the Board of Supervisors. The proposal, a charter amendment, would have required approval by the voters this November. Daly made several last minute attempts to amend the legislation, but the charter amendment eventually failed, losing 7 - 4. Supervisors Ammiano, Gonzalez and Sandoval joined Daly in casting yes votes, while Supervisors Alioto-Pier, Dufty, Hall, Ma, McGoldrick, Maxwell and Peskin courageously opposed the divisive charter amendment. A special thanks goes out to SFAA's industry partners: the Coalition for Better Housing and the San Francisco Association of Realtors. Also, thanks to all of the SFAA members who spoke at hearings, wrote letters and emails, and telephoned the Board of Supervisors. Your hard work made a profound difference! Please take the time to thank the supervisors who believed in common sense and opposed this poor piece of legislation.

50/50 Rent Board Fee
Supervisor Chris Daly did secure a win last month, however, when his legislation to split the cost of the Rent Board's annual fee equally between landlords and tenants was passed by the Board of Supervisors. The legislation also mandates a reduction in the fee to $21 per unit, down from the current $26. For each rental unit now, the landlord and tenant will each be responsible for paying $10.50 of the fee.

Property Management Training
The Fall 2004 CCRM property management series starts September 9 and continues through November 18. Topics include: leasing skills and the application process, maintenance management, liability management, fair housing and more. The courses, nine in all, offer excellent training in how to effectively manage and operate rental housing in California and are ideal for on-site resident managers, property management professionals, leasing agents and small owners. For detailed information and registration please check online at www.sfaa.org/educate.html or call Greg Miller, education director, at 415-255-2288. Information on the fall series can also be found on page 12.

On-site Staff Training
SFAA can provide property management training to your staff on-site at your location on dates and times convenient to you. Select any number of courses from our nine comprehensive CCRM series and we'll come out to your chosen location. Workday, evening or weekend, we can suit your company's schedule. Discounted rates are available too. For more information please contact Greg Miller, education director, at 415-255-2288 or greg@sfaa.org.

MiniFEST'04: Trade Show & Educational Classes September 20, 2004
Mark your calendars! Educational Classes: 1 p.m. - 5 p.m. (reservations required) and Trade Show: 5:30 p.m. - 9 p.m. Check out the announcement on page 41. Free hot dogs, lots of vendors.

Legal Ruling in L.A. Strengthens Owners' Rights
Action Apartment Association, Inc. v. City of Santa Monica The goal of recent trends in landlord-tenant law is to prohibit certain landlord statements that are directed to tenants. These communications typically deal with poor tenant conduct, warnings about evictions, endeavors to recover possession and tenancy buy-outs.

In San Francisco, the “Daly Amendments” to the Rent Ordinance made it unlawful for landlords to threaten or harass tenants, or to enter into a settlement agreement without approval of a judge or tenant-attorney. Santa Monica made it a crime to terminate a tenancy, including serving an eviction notice to a tenant, based upon the landlord not having a reasonable belief in the truth of the communication.

A Santa Monica non-profit corporation, established to protect the rights of housing providers, sued the City of Santa Monica claiming that a city ordinance abridged the rights of free speech and to sue in court.

The court in Action Apartment Association, Inc. v. City of Santa Monica ruled that under the “litigation privilege,” a landlord serving an eviction notice or filing an unlawful detainer is immune from suit based on those notices or filings, and cannot be enjoined from that conduct, even if the motivation is malicious, the factual allegations known to be untrue, and the legal theory untenable under the true facts.

The litigation privilege is intended to encourage parties to petition the courts for assistance in the resolution of disputes without being chilled from exercising that right for fear of subsequently being sued in a tort action arising from something said or done in the context of the litigation. The privilege applies to any communication that has some connection or logical relation to the action, even if made outside the courtroom before a lawsuit was ever filed. And the privilege applies notwithstanding the landlord's malice or intent to harm.

How far the litigation privilege extends to landlord communications is uncertain. Unfortunately, the court that issued the decision is now reconsidering the matter upon request from tenant organizations. – Clifford E. Fried