Justin Goodman Featured in SF Apartment Magazine Legal Q&A for November 2018

Justin Goodman was featured in the Legal Q&A for the November 2018 issue of SF Apartment Magazine – the official publication of the San Francisco Apartment Association.

Justin discussed potential liability for a landlord “waiting too long” to rent an available apartment when he is only receiving applicants enrolled in the Section 8 program, as well as how the recent opinion CCSF v. Post (2018) changed the rules on “source of income discrimination” in San Francisco.


SFAA is dedicated to educating, advocating for, and supporting the rental housing community so that its members operate ethically, fairly, and profitably. SFAA’s is a trade association whose main focus is to support rental owners by offering a wide variety of benefits that address all aspects of rental housing industry.

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San Francisco Legislative Update (2018): New “Fire Life Safety Notice and Order” Enhances City’s Tools for Fire Safety Violations and Mandated Upgrades

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Ordinance 267-18 amends the Building Code to create a new “Fire Life Safety Notice and Order” that Department of Building Inspection officials can issue in response to repeated violations of DBI-enforced fire safety requirements.

The new rules apply to buildings of three or more units (i.e., anything larger than a duplex) and after two or more unabated Fire Life Safety Notice and Orders, they will require the building owner to do one or more of the following:

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DLI Properties, LLC v. Hill (2018): Post-Foreclosure Tenant Protection Statute Inapplicable To Successor Owners Who Create New Leases with Existing Tenants

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In DLI Properties, LLC v. Hill, the Appellate Division of the Superior Court of Los Angeles parsed a state statute requiring certain notifications by new landlords to their tenants, affirming an unlawful detainer judgment for the landlord.

DLI Properties, LLC acquired a property in foreclosure that was tenant occupied. Generally, foreclosing on an earlier interest (like a deed of trust) will eliminate interests that are later in time (like a lease). But California has specific statutory protections for tenants facing foreclosures. California also requires successor owners to notify existing tenants of information how they can pay rent and how they may serve notices relating to the tenancy and civil process. These requirements (found in Civil Code §1961, et seq.) are somewhat self-policing for successor owners, who cannot serve a rent demand notice to initiate an unlawful detainer, based on rent owed during any period of non-compliance.

DLI Properties, LLC purchased the subject property in foreclosure. It hired Strategic Property Management, Inc. to manage the property, and Strategic entered into a new lease agreement with the tenant (Hill) on the date of sale. Hill had become delinquent in the payment of rent, and DLI served a three-day notice to pay rent or quit, and then filed an unlawful detainer action. Before the jury returned a verdict in favor of DLI (finding that it complied with the unlawful detainer procedures and that Hill was not entitled to offsets for habitability issues), Hill moved for nonsuit, then directed verdict, then JNOV on a single issue: failure to comply with Section 1962, et seq.

Section 1962(c) provides: “The information required by this section shall be kept current and this section shall extend to and be enforceable against any successor owner or manager, who shall comply with this section within 15 days of succeeding the previous owner or manager. A successor owner or manager shall not serve a notice pursuant to paragraph (2) of Section 1161 of the Code of Civil Procedure or otherwise evict a tenant for nonpayment of rent that accrued during the period of noncompliance by a successor owner or manager with this subdivision. Nothing in this subdivision shall relieve the tenant of any liability for unpaid rent.”

The Appellate Division upheld the trial court ruling, noting the distinction between “owners” and “successor owners” under the statute. The California Legislature was understandably concerned about the treatment of existing tenants who do not necessarily know who succeeds to their lease contracts following foreclosure. (In fact, this concern guided the California Supreme Court’s recent analysis of post-foreclosure eviction notices in Dr. Leevil, LLC v. Westlake Health Care Center.)

While DLI purchased at foreclosure, its property manager executed a new lease, and this rendered them “owner” under the statute: “This disparate treatment of owner and successor owner/manager for the same dereliction of their statutory duty indicates the prohibition is meant to specifically target successor owners and their managers to address a danger posed by the change in ownership. There is a greater likelihood a tenant would not be aware of relevant information concerning a successor owner/manager rather than an owner with which he enters into a lease agreement. Therefore, the prohibition against evictions encourages and incentivizes a successor owner/manager to disclose such information.”

Ultimately, where the owner (via its property manager) entered a new lease with an existing tenant, it created a direct relationship with the tenant, which did not resemble any of the Legislature’s concerns in enacting the statute.

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California Proposition 10 (2018): Voters Reject Repeal of Costa-Hawkins

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SF Gate reports on the defeat of Prop. 10 at the ballot. The measure to repeal the Costa-Hawkins Rental Housing Act “fell behind early and continued to trail by a margin of about 65 percent to 35 percent throughout the night”.

Proposition 10 followed AB 1506 (2017), a legislative attempt at repeal, which failed to get out of committee.

For now, cities remain capable of implementing new rent control ordinances. However, Costa-Hawkins will continue to limit the extent of local price controls (as cities cannot impose price ceilings on “new construction”, apply “strict” vacancy control to empty units, or extend rent control to new tenancies in single family homes and condominiums).

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Justin Goodman Featured in SF Apartment Magazine Legal Q&A for October 2018

Justin Goodman was featured in the Legal Q&A for the October 2018 issue of SF Apartment Magazine – the official publication of the San Francisco Apartment Association.

Justin discussed “what happens next in San Francisco” in the event Prop 10 passes (although as of recently, it is not polling well). (Prop 10 (“the Affordable Housing Act“) is the ballot initiative seeking to repeal the Costa-Hawkins Rental Housing Act.)

The October 2018 issue also featured Justin’s recommendation to landlords dealing with fires, in terms of tenants, regulations and restoration work, in an article by editor Emily Landes, titled “Master of Disaster“.


SFAA is dedicated to educating, advocating for, and supporting the rental housing community so that its members operate ethically, fairly, and profitably. SFAA’s is a trade association whose main focus is to support rental owners by offering a wide variety of benefits that address all aspects of rental housing industry.

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Zacks, Freedman & Patterson, PC Attends FBANC Celebration of Judge Quidachay

Zacks, Freedman & Patterson, PC attended the Filipino Bar Association of Northern California celebration of retired Judge Ronald Evans Quidachay, hosted by the Dolan Law Firm.

(Featured: Staff Attorney Olga Grecova, Justin A. Goodman of Zacks, Freedman & Patterson, PC and Hon. Judge Ronald Evans Quidachay)

Judge Quidachay was one of the founding members of FBANC and the first Filipino-American to be appointed as a judge in Northern California (in 1983).

Also in attendance were the members of FBANC, past and present court staff, friends, family and the landlord and tenant attorneys who have had the great pleasure of arguing before him in Housing Court (some for their entire careers).

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San Francisco Chronicle Recommends No on Prop. 10

Citing a nearly universal rejection of rent control by economists, the San Francisco Chronicle recommends voting “no” on Proposition 10, the ballot measure aimed at repealing the Costa-Hawkins Rental Housing Act – a state law limiting and defining cities’ ability to impose rent control.

As the Chronicle describes it, “Prop. 10 would repeal the 1995 Costa-Hawkins Rental Housing Act, which protects properties built that year or later from rent control. The law also prevents cities with preexisting rent control laws from extending them to newer units; San Francisco’s ordinance, for example, remains limited to housing built before 1980. And Costa-Hawkins exempts single-family homes from rent control while guaranteeing property owners the right to raise rents to market value when units are vacated.”

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Los Angeles Times Reports on Tenant Choices in Return of Ellis-Withdrawn Building to Rental Market

The Los Angeles Times reports on the decisions of tenants, displaced by the Ellis Act, to return to their former units later re-offered for rent.

While the Ellis Act is colloquially described as “going out of the rental business”, it actually sets the standards for cities to implement rules on withdrawing from the market and going back into business later. For instance, a displaced tenant may be re-offered their former unit if rented within ten years of withdrawal, and within five years, they benefit from their old rent-controlled rental rate.

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Legislative Update: AB 2343 (2018): Amendment to Unlawful Detainer Statutes To Extend Breach Cure Period and Tenants’ Time To Respond to Complaint

Assemblymember Chiu’s AB 2343 is signed into law, extending three important deadlines in the unlawful detainer statutes by excluding “Saturdays, Sundays and judicial holidays”. Effective September 1, 2019, both three day notices to pay rent or quit and three day notices to cure breach or quit will no longer include these “off days” in calculating their deadlines.

Under current law, a notice served on a Wednesday would count Thursday (day 1) and Friday (day 2), however, they cannot expire on a holiday/weekend, so the “third” day would be Monday. At least with payment of rent, this rule makes sense, because a tenant may need to go to a bank to obtain funds. (Still, this calendaring has arguably led to confusion and harsh results for some.)

The amended unlawful detainer statutes will also exclude these off days when counting the response date to the unlawful detainer five-day summons.

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Division Four of First District Court of Appeal Harmonizes Litigation Privilege with Tenant Anti-Retaliation Statute in Winslett v. 1811 27th Avenue, LLC

“The litigation privilege is ‘not without limit’, as the Action Apartment court took pains to point out. (Action Apartment, supra, 41 Cal.4th at p. 1242.) Because recognition of the privilege here would neuter section 1942.5 by removing eviction from the statutory remedy of retaliatory eviction, we view the clash between section 47, subdivision (b), on the one hand, and section 1942.5, subdivisions (d) and (h), on the other, as irreconcilable. To be consistent with the high court’s guidance that we give section 1942.5 a liberal construction designed to achieve the legislative purpose, we conclude that the litigation privilege must yield to it.”

In Winslett v. 1811 27th Avenue, LLC (2018), a former tenant filed a complaint against a landlord for retaliation and retaliatory eviction, under Section 1942.5 of the Civil Code, as well as violations of Oakland’s just cause for eviction ordinance. The trial court granted the landlord’s anti-SLAPP motion to strike. The tenant appealed the trial court’s ruling that the litigation privilege barred the retaliation claims and that her claims under the eviction control ordinance were based on protected activity under the anti-SLAPP statute. The Court of Appeal agreed and reversed.

Continue reading Division Four of First District Court of Appeal Harmonizes Litigation Privilege with Tenant Anti-Retaliation Statute in Winslett v. 1811 27th Avenue, LLC

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