Be a Big Mouth — Speak Out
District 6 Supervisor Chris Daly introduced new legislation that he calls a “Renters Economic Relief Package.” The goal of this package is to help renters in San Francisco who may or may not be suffering due to the current economic climate. There are a number of proposed reforms in this package.
The first measure would suspend any rent increases that would cause tenants’ rents to exceed 33% of their incomes. This would extend the rights of the tenants to claim a hardship and make rent increases more difficult for owners in San Francisco. Another measure would expand the rights of tenants to add roommates to help pay the rent. This provision would allow tenants to increase the number of occupants beyond what is stated in their lease agreement and would be based on occupancy limits in the San Francisco Housing Code. The final provision would limit the amount of banked rent increases that can be imposed in any one year. Currently, owners are able to enforce any amount of “banked” rent increases. The new provision would not allow an owner to raise the rent more than 8% in any one year using banked increases.
SFAA is working to ensure such measures are not put into place. We realize the impact it would have on property owners in San Francisco, many of whom may also be going through difficult financial times in the current economy. To assist SFAA staff in their efforts to work with the San Francisco Board of Supervisors, please email, call and send letters to your supervisors letting them know that you are against this type of legislation. We must make it clear to the board that such provisions would push owners into worse financial situations, which may cause more foreclosures in San Francisco.
In Memoriam: Jeffrey S. Rosen
It is with great sadness that I report the recent passing of attorney Jeffrey S. Rosen. A partner in the well-known and respected firm of Sheppard Rosen (now Sheppard, Rosen, Uziel and Sussman), Jeff was a personal mentor and friend.
Jeff and I were opposites on many levels. While I exclaimed the conservative philosophies of William F. Buckley and Ronald Reagan, Jeff was a true liberal with the beard to prove it. Unlike many who wear that badge, Jeff truly believed in social justice and restitution for those who were legitimately aggrieved. While successfully representing both landlords and tenants, his true zeal lay in helping renters who were genuinely taken advantage of by owners and speculators. Jeff, unlike the masses, did not promote his trade to extort vast sums of money under the rent laws, but instead was motivated to achieve a fair and equitable result. Not many lawyers follow such a path.
Jeff also understood the ever-important truth that a trial occurred only when the lawyers failed to do their jobs. Consequently, in the many cases my office litigated with Jeff, there was a Herculean effort to resolve the matter without the wasted expense of trials, appeals and protracted litigation. Indeed, because of his intellect and skill, Rosen knew how to make a wrong right even when an adversary, like me, did not.
You might also remember Jeff from our tenant panels at the membership meetings. Jeff would gladly appear and participate, and he did so not for personal gain or to pontificate tenant dogma, but out of a genuine desire to help landlords understand the laws from a tenant perspective.
I learned from Jeff that you don’t need showmanship or scorched-earth tactics to be a good lawyer. Rather, Jeff’s thoughtful analysis, tireless work ethic, and his ability to creatively craft an equitable resolution made him an outstanding lawyer who could show all of us on both sides of the political spectrum that conflicts can be resolved without the expensive nonsense that permeates the landlord-tenant environment today. Thus, we lost someone who rejected the style of animosity and the desire to place one’s ego above all else. His unique kindness, coupled with a true understanding of what lawyers should be doing to aid their clients and society at large, shall remain a standard for the rest of us to follow, and I truly hope that we do. Jeff, you will be missed, and I thank you for the outstanding contribution you made to our industry while you were here.
There will be a public memorial for Jeff on April 30, 2009, at 6 p.m. in the lobby of Sheppard, Rosen, Uziel and Sussman at 100 Montgomery Street. Anyone who knew Jeff is invited to come and say a few words about him. Refreshments will be served in Suite 2100 afterwards.
—David Wasserman
On the Up and Up
Water and sewage rates in San Francisco are poised to increase in July, largely to pay for seismic safety improvements to the water system. A final SFPUC vote on the increases is scheduled for May 5.
The proposal calls for multifamily water and sewage rates to increase by around 12% per year over the next five years. Single-family water rates are due to increase by an average of 13.2% while wastewater rates would go up only 8% for those customers. Commercial customers will see their water rates go up by 13%, while sewage will only increase by 1%.
The SFPUC is in the midst of a more than $4 billion upgrade program to safeguard the Bay Area’s largest drinking water system from drought or a catastrophic earthquake. The projects are scheduled to be completed by 2014.
The San Francisco Department of Building Inspection will also likely be raising its rates. It has produced an internal report showing that DBI fees are lower than its surrounding Bay Area counterparts. The report also shows that the agency is not covering the cost of its building inspectors’ time and expenses.
As such, DBI is considering a fee increase of 25% on 3-15-unit buildings. Officials are also talking about a fee (to be modeled after the Rent Board fee) for R-3/single-family homes. Public discussion on the fee increase will begin shortly. The report will go to the Building Inspection Commission, but ultimately it will be up to the Board of Supervisors to decide.
Green Fest April 20
Just in time for Earth Day, SFAA will be hosting its first “Green Fest,” an environmental trade show open to all SFAA members. Featuring the latest and greatest in green design and building trends, the festival will take the place of the April membership meeting, and will be held at Fort Mason on April 20 from 5 p.m. to 7 p.m. For more information or to help sponsor the event, contact Education and Events Director Vanessa Khaleel at 415-255-2288 or via email at vanessa@sfaa.org.
Rental Housing Expo May 19
CAA’s 2009 Northern California Rental Housing Education Expo will be held on Tuesday, May 19, 2009, in Santa Clara. This annual event focuses on the issues and trends in the property management industry. It presents a unique opportunity to interact with prospects and peers and to explore the issues critical to industry survival in these tough economic times. Spend your time learning ways to protect your investment, increase sales and overcome the difficult economy
The expo will take place at the Santa Clara Convention Center from 10 a.m. to 4 p.m. The cost for members is $79. Registration: 8 a.m. - 9 a.m., For attendee registration and exhibitor information visit www.caanet.org/2009expo.
Free Tax Preparation
Free tax return preparation will again be offered at 40 locations in San Francisco through the United Way of the Bay Area’s “Earn It! Keep It! Save It! San Francisco” campaign. Anyone with an income of $45,000 or less is eligible. Last year, over 15,000 San Franciscans took advantage of the service and received over $11,297,000 in refunds.
California Borrowers Largely Unaffected by Obama Housing Plan
The Obama administration’s housing plan is intended to help 9 million struggling homeowners avoid foreclosure, but it leaves out tens of thousands of Bay Area borrowers who won’t qualify because their homes have lost too much value.
The $75 billion program offers refinanced mortgages or modified loans with lower monthly payments. Yet its refinancing plan is limited to borrowers who owe up to 5% more than their home’s current value. Loan modifications are unlikely for severely “underwater” borrowers. In the California cities of Stockton, Modesto and Merced, more than one out of every 10 homeowners with a mortgage won’t qualify for any help because they owe more than 50% more than their house’s current value, according to data from Zillow.