Category Archives: San Francisco

Federal District Court Overturns Enhanced Ellis Act Relocation Payments

rent board logo

Last week, the United States District Court for the Northern District of California invalidated an amendment to the San Francisco Rent Ordinance requiring an increase to the existing relocation payments owed to tenants in non-fault evictions pursuant to the Ellis Act. The new, enhanced payments were calculated based on market rate differentials – the difference between the tenant’s rent-controlled rental rate and the cost of a comparable unit on the open market. In some cases, this number reached six figures per unit.

Finding that the new law constituted a monetary exaction, prohibited under the Takings Clause without the payment of “just compensation”, Judge Breyer found that there was no “essential nexus” between the right to change the use of property (i.e., to no longer allow rentals) and there was no “rough proportionality” between the costs a displaced tenant faced on the open market and the direct consequences of a decision by the landlord to go out of the rental business. (By contrast, challenges to the previous relocation payment scheme, requiring a payment based on the cost of first months’ rent, last months’ rent, and security deposit at a new rental unit, have been upheld as comporting with the Ellis Act.) The City is expected to appeal the decision to the 9th Circuit.

facebooktwitterredditlinkedinmail

San Francisco Eviction Assistance Unit Allows Sheriff’s Department To Assist the Community

sf examiner

The SF Examiner explores the work of the “Eviction Assistance Unit”, which allows the Sheriff’s Department to interact with tenants to be displaced, to provide them with housing resources. As the Examiner explains, the unit was created by former Sheriff Michael Hennessey, following a tradition of San Francisco Sheriffs who look for alternatives to mechanically carrying out their duty to evict tenants. (The famous example was the refusal of former Sheriff Richard Hongisto to evict a large number of occupants from the International Hotel in the 1970s. This resulted in his going to jail for contempt, and it generated pro-tenant sentiment that led to the adoption of eviction control protections in the Rent Ordinance.)

facebooktwitterredditlinkedinmail