Jarvis Initiative on June Ballot
Signature   gatherers   have   received enough support to put the Jarvis Initiative, officially known as the California Property Owners and Farmland Protection Act, on the June ballot as Proposition 98. This proposition would curb both eminent domain and rent control. In fact, if it passes this summer, the initiative would lead to the phasing out of rent control throughout the state. Tenants’ groups will be running a “No on 98, Yes on 99” campaign, in an attempt to swing support to far-less-encompassing Proposition 99, which would not affect rent control. SFAA does not take positions on state ballot measures, but many of its members are likely making contributions to the Prop. 98 campaign.

Locally, it appears that the San Francisco Unified School District will be placing a parcel tax on the June ballot. The specific language is still being determined, but the tax will likely be $198 per parcel, regardless of the size of the parcel. In other words, studio condos and downtown office buildings will both be taxed the same amount. If passed by a two-thirds majority vote, the tax could raise $28 million each year for teachers’ and administrators’ salaries. The possibility of a passthrough was uncertain at press time. SFAA does not support the measure as it is currently written.

Security Deposit Interest Rate Stays at 5.2%
The rate for security deposit interest payments will remain 5.2% (the new rate
is effective March 1, 2008, through February 28, 2009). Since 2004, the San
Francisco Rent Board has calculated the rate according to the Federal Reserve Six-Month CD rate, using an average of the 12 most recent monthly rates (rounded to the nearest tenth).

Health Ordinances Coming to the Board
Two ordinances that could have a major effect on apartment owners appear to be heading to the San Francisco Board of Supervisors in the near future. First up will likely be Supervisor Ross Mirkarimi’s Healthy Housing legislation, which would give the San Francisco Department of Public Health the ability to give notices of violation and fine property owners for “nuisances” found in buildings; the system would be similar to the one currently in place at the San Francisco Department of Building Inspection. For example, excessive noise could be considered a violation and the owner fined if cited. SFAA has been working with Mirkarimi to fine tune the legislation and make sure that property owners’ voices are heard.

Supervisor Gerardo Sandoval is behind another health-related ordinance on its way to the board. This one would ban smoke shops (but not medical marijuana facilities) from operating below residential buildings. This legislation had not yet been drafted at press time, but tune in to this column for future updates.

Managers Luncheon March 20
SFAA invites all of its members in property management firms to join the Managers Luncheon on March 20, 2008, at Absinthe in Hayes Valley. These luncheons are designed to provide a venue for discussion amongst those who manage property in the city; speakers have included sanitation workers with Sunset Scavenger and officers with the Vice Crimes division of the San Francisco Police Department. The Managers Luncheon takes place the third Thursday of every other month at noon. The luncheon costs $40 per person, which includes a three-course prix-fixe lunch. Seating is limited, so please contact
Education and Events Director Vanessa Khaleel at 415-255-2288 or via email at
vanessa@sfaa.org to RSVP.

Legislative Day March 26
On March 26, join CAA members across the state at the organization’s annual Legislative Day in Sacramento. This year’s theme is “Strength Through Unity,” a
good reminder that this is your annual opportunity to enjoy, embrace and experience the collective power of the rental housing industry by participating in CAA's most anticipated event of the year. The event runs from 9:30 a.m. to 6 p.m., and registration is $40 for members and $55 for nonmembers. SFAA hopes that many of its members will attend this educational and informative event.

SFAA Goes Paperless
SFAA recently became greener by becoming an email-driven organization. For example, rather than reminding members of the monthly meetings via postcards, you now receive email notices about the meetings, as well as other events. The organization also puts more of its communications online at www.sfaa.org, creating a more comprehensive website for members. If you are not currently receiving SFAA’s email communications, please contact Member Services Coordinator Maria Shea at 415-255-2288 or via email at maria@sfaa.org.

Free Tax Services Available
Tax-Aid is once again offering free tax services at dozens of San Francisco locations for those with incomes below $42,000 in 2007. U.S. Citizenship is not required to receive this assistance and Tax-Aid has posters available in five languages so you can get the word out to all of your tenants who might be able to use this valuable service. For more information, check out www.tax-aid.org.

Lawsuit Filed to Block FCC Cable Regulations
The National Multihousing Council and National Apartment Association filed a lawsuit against the Federal Communications Commission asking the courts to strike down the FCC’s recently issued regulations retroactively banning “exclusive access” agreements between cable providers and apartment owners.

Before they were banned, exclusive access contracts were the primary means through which apartment owners could force the large cable firms to lower
their prices and improve their service offerings. These exclusive access agreements also fostered competition by allowing smaller video firms to recoup the initial investment required to wire a property. By taking this bargaining tool away from owners, the FCC has essentially removed a key incentive the cable firms had to negotiate with apartment owners.

The NMHC/NAA lawsuit argues that the FCC lacks the legal authority to regulate agreements between private property owners and video providers, and that the regulations are based on erroneous and unproven assertions about market conditions. Letting the FCC’s exclusive access ban stand could establish a dangerous precedent that would allow the commission to enact further
regulations interfering with the private negotiations between property owners and telecom providers. 

Asking Rents Up 9.4%
The average asking rent in the nine-county Bay Area was $1,562 during the fourth quarter of 2007, a 9.4% increase over a year ago and a 16.3% increase from four years ago, according to a report from research firm Real Facts. The report only details asking rents from housing complexes with 50 or more units and averages figures from apartments ranging from studios to three-bedroom units. The increases are largely attributed to a very high threshold for entry in the home market and a still-thriving local economy that is bringing more people to the area. The biggest increase—14.5%—was in San Francisco, which also boasts a 95.2% occupancy rate and an average asking rent of $2,285. By comparison, Alameda saw a 5.4% increase, while Oakland’s asking rents were up just 3.7% year over year.

Home Builders Want to Cut Energy Use in Half
The largest association of home builders in the Bay Area has set itself a goal of halving the amount of energy used in the houses it constructs by 2020. The Home Builders Association of Northern California’s goal is much higher than current construction standards in the state. The 50% decrease will be based on 1990 levels. It also plans to drop carbon dioxide emissions by 30% in the same time frame. Reaching these goals will most likely involve using more energy efficient building materials and appliances, as well as upping the number of solar panels. These changes will be voluntary, but the organization called on all Bay Area governments to adopt mandatory green building standards.

Parks Bond Passes
More than two-thirds of voting San Franciscans decided that a slight uptick in property taxes was worth it to save the city’s ailing neighborhood parks. Proposition A on the February 5, 2008, ballot was a $185 million bond measure that sets aside $117.4 million to renovate 12 neighborhood parks and recreation centers, $33.5 million for the creation of new bayfront parks and $11.4 million for the repair and addition of city park bathrooms. Landlords may pass through 50% of the resulting property tax increase to their tenants.

Voters also passed Proposition B, which allows police officers to earn a pension and a salary if they stay on the job instead of retiring. The measure will allow full-duty officers who are at least 50 years old and have at least 25 years of experience to join a deferred retirement program that puts off retirement for no more than three years.