SF Apartment : January 2016


Place of Preference

On Tuesday, November 17th, the San Francisco Board of Supervisors passed “neighborhood preference” legislation, altering the current city lottery system for affordable housing units. Under the new legislation, 40 percent of subsidized units will be reserved for current residents of the same supervisorial district where the affordable units exist, or for those who reside within a half-mile of the units.

New York City has been operating under a similar model since the 1970s, using a 50 percent local preference. However, Sophie Hayward, director of policy and legislative affairs at the Mayor’s Office of Housing, said analysis showed 50 percent would be too high for San Francisco, as the city’s neighborhoods often divide on ethnic lines and such a high percentage would result in some communities gaining an advantage over others. Hayward recommended a 25 percent preference, but the board of supervisors brought the number up to 40 percent, which Hayward said was still within the analysis’s bounds. However, concerns about differences in benefit to some communities over others still abounded, and comprised most of the opposition to the legislation.

The measure passed 9-2, with strong support from the board’s two African American supervisors, board president London Breed and Malia Cohen. Eric Mar (District 1: Richmond) and Katy Tang (District 4: Sunset), two of the board’s Asian-American supervisors, voted against the legislation. Supervisor Tang expressed concern as to how the new legislation will affect residents who are being displaced from the Sunset, since the majority of affordable housing is being built in Districts Five (Western Addition), Six (SOMA), Eight (Mission/Noe Valley) and Ten (Bayview/Hunters Point). Luis Granados, executive director of the Mission Economic Development Agency, also criticized the legislation, saying it does not adequately address the displacement of Latinos from the Mission, and feared the new law could pit neighborhoods and communities of color against one another.

Data for the years 2008-2014 shows how rentals and sales of affordable housing units in private developments have corresponded with ethnicity. Asians and Pacific Islanders received the highest number of units (615), followed by whites (264 units), Hispanics/Latinos (145 units), blacks (62 units), unknown race (193 units) and other (47 units). Supervisor Jane Kim attributes these numbers to the Asian-American community’s strong organization in regard to alerting low-income residents about affordable units. Chinese language newspaper Sing Tao Daily advertises open lotteries to its readership, and the Chinatown Community Development Center is available to assist residents with their applications. In contrast, very little of this kind of infrastructure is in place in African American communities, said Cathy Davis, executive director of Bayview Hunters Point Multipurpose Senior Services.

During the 1950s, when the Fillmore District was redeveloped, an estimated 20,000 to 30,000 African Americans were displaced. San Francisco’s African American population stood at 13.4 percent in 1970. Data shows that the city has since lost 60,000 African American residents, a decline to just 5.5 percent of the city’s total population.

As most of the city’s new subsidized housing is in Districts Six and Ten, 
longtime residents in those areas now have greater chances at winning the affordable housing lottery and staying in their neighborhood.

Mayor Ed Lee was in favor of neighborhood preference but did not take a stand as to what the percentage point should be.

The legislation is expected to go into effect in early 2016. For projects utilizing state and federal funding, the city of San Francisco will need special permission from those governments to enact the neighborhood preference percentage.

Allowable Rental Increase for 2016

Effective March 1, 2016 through February 28, 2017, the allowable annual increase amount is 1.6%.

In accordance with Rules and Regulations Section 1.12, this amount is based on 60% of the percentage increase in the Consumer Price Index (CPI) for All Urban Consumers in the San Francisco-Oakland-San Jose region for the 12-month period ending October 31, which was 3.2% as posted in November 2014 by the Bureau of Labor Statistics.

To calculate the dollar amount of the 1.6% annual rent increase, multiply the tenant’s base rent by .016. For example, if the tenant’s base rent is $1,500.00, the annual increase would be calculated as follows: $1,500.00 x .016 = $24.00. The tenant’s new base rent would be $1,524.00 ($1,500.00 + $24.00 = $1,524.00).

SFAA “Vines By the Bay” Tradeshow February 22, 2016

The annual SFAA tradeshow arrives a bit earlier in 2016, so be sure to mark your calendars for Monday, February 22. The event will take place at the Fort Mason Conference Center, Building A, from 4:00 to 7:30 pm.

The tradeshow covers all facets of the multifamily housing industry. Professionals who provide San Francisco’s property owners with top products and services will be on hand. In addition to vendor booths, free educational classes will be offered.

The event is free and open to the general public, so bring your friends and family. Please note the tradeshow replaces the February SFAA member meeting.
For more information on the tradeshow or to become a sponsor, contact Vanessa Khaleel at vanessa@sfaa.org.

New SFAA 2016 Lease Available Mid-January; Contains a Critical Update

The 2016 SFAA Residential Tenancy Agreement will be available mid-January. Call the SFAA office at 415-255-2288 to obtain the new lease, which contains a crucial new paragraph. Effective November 9, 2015, the San Francisco rent law was amended to permit tenants to bring in subtenants notwithstanding a prohibition in the lease agreement to the contrary, provided that the total number of adult occupants does not exceed: (i) two persons in a studio unit; (ii) three persons in a one-bedroom unit; (iii) four persons in a two-bedroom unit; (iv) six persons in a three-bedroom unit; or (v) eight persons in a four-bedroom unit. Many apartments have recreation rooms, living rooms, and/or dining rooms. To prevent tenants from reclassifying the bedroom count of your apartment so as to add on more subtenants, please make sure to designate in the lease agreement exactly what your rental consists of in terms of bedrooms. The addition of such language is now critical. Thus, all rental agreements going forward should contain a paragraph specifying how many bedrooms are contained within the unit, and there should be a line for the tenant to initial and acknowledge such provision. Please add this verbiage into your existing rental agreement template and if you use SFAA leases, be sure to use the updated 2016 lease for all new rentals.

New 2016 Notification Requirements for Pesticide Use at Rental Properties

Since 1984, California law has required pest control companies to provide notice to owner/agents and residents whenever pesticides are applied at a property. In situations where an owner/agent has contracted with a pest control operator for periodic applications, the owner/agent must provide the pest control company’s notice to all new residents. Additional notice provisions also extend to owner/agents if they have residents who operate a child day care facility at the property.

Effective 2016, an owner or authorized agent who applies any pesticide to a dwelling unit without the use of a licensed pest control operator is also required to provide advance notice to residents. Here is an overview of the new law.

A “pesticide” is defined as any substance or mixture of substances intended to be used for controlling, destroying, repelling or mitigating any pest or organism. The definition excludes antimicrobial pesticides as described by the Federal Insecticide, Fungicide and Rodenticide Act (7 U.S.C. Sec. 136(mm)).

While the law still allows owners to personally apply pesticides themselves, the California Apartment Association (CAA) recommends the use of a licensed pest control operator whenever any pesticide is applied. It is illegal and dangerous to apply any pesticide in a manner inconsistent with the instructions. Pesticide containers must be disposed of properly. For these safety and liability reasons, CAA recommends the use of a professional service. For more information about safe pesticide use, visit epa.gov/safepestcontrol.

There are a number of new forms that CAA has created to help owners comply with the new law. The notice and service requirements vary depending on whether the application is to a unit or to a common area. The form you use will depend on both the location and frequency of the application, as well as the type of pesticide used.

Form 61.0 – Notice of Pesticide Application – Dwelling Unit. Use this form for one-time or periodic (i.e. weekly or monthly) pesticide application to a dwelling unit. CAA Form 61.0 is used to provide notice to the tenants in the unit where the application will take place.

Form 61.1 – Notice of Pesticide Application – Adjacent Unit. CAA Form 61.1 is used to provide notice to tenants in adjacent units when an owner/agent is making broadcast applications (more than 2 square feet), using total release foggers (i.e. bug bombs) or aerosol sprays. Use this form for tenants in adjacent units for either one-time or periodic applications of these natures.

Form 61.2 – Notice of Pesticide Application – Common Area Posting. This sign is required to be publicly posted prior to a one-time application of pesticides in a common area.

Form 61.3 – Notice of Pesticide Application – Common Area – Notice to all Units. This form is to be used when the owner/agent will engage in periodic application of pesticides in a common area. It is also used in the case of one-time application if posting form 61.2 in the common area is not possible.

Form 61.4 – Periodic Application of Pesticides by Owner/Agent to Common Area – Addendum. This form is used to notify an incoming resident when the owner/agent is engaging in periodic application of pesticides in a common area.

Form 61.5 – Periodic Application by Pest Control Operator – Addendum. This form is used when the owner/agent has contracted with a pest control operator for periodic pest control.

Requirements for Residential Management Companies and Agents of the Owner

The licensing and registration requirements for residential management companies under existing law differ depending on whether structural or exterior pest control work is to be performed.

Indoor Application. According to the California Structural Pest Control Board, a residential management company that handles all aspects of management for a property owner/agent is not required to be licensed to do indoor or other structural pest control.

Outdoor Application. The California Department of Pesticide Regulation 
(DPR), however, considers the management company to be performing pest control “for hire.” If the management company is contracted to maintain outdoor landscaping at the property in general, and pesticides are applied for outdoor landscape maintenance, the company must obtain a Maintenance Gardener License from DPR. If the management company is contracted specifically to perform outdoor pest control, a Qualified Applicators License is required. 
Additional information regarding covered chemicals and licensing and registration requirements and procedures can be obtained from the California Department of Pesticide Regulation by calling 916-324-0399, and from the California Structural Pest Control Board by calling 916-561-8700.

For a copy of CAA’s forms outlined above, a more detailed background paper on this new law and/or documentation of the pre-existing laws applicable to pest control operators, visit caanet.org/?s=pesticides.