Foster v. Britton (2015) 242 Cal. App. 4th 920: Rent Board Rules and Regulations Survive Preemption Challenge

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Over the years, the Board of Supervisors has amended the Rent Ordinance in various ways to prevent de facto terminations of tenancies. For instance, a “housing service”, like a patio, a parking space or use of a barbecue cannot be severed without the same “just cause” required to end a tenancy generally. The reasoning for this is obvious – a landlord cannot urge their tenants to leave by taking away the features of a tenancy that the tenant has come to rely on.

Similarly, a landlord cannot add to the lease – that is, they cannot create new, unilaterally imposed contract requirements, the violation of which constitutes a material breach of the lease and just cause for eviction. This policy is codified in Section 12.20 of the Rent Board Rules and Regulations.

In Foster v. Britton (2015) 242 Cal. App. 4th 920, a tenant filed an action for declaratory relief against her landlord, seeking a determination of the legal rights under her lease, in response to her landlord unilaterally changing the terms of her tenancy, under Cal. Civ., §827. In response, the landlord took the position that section 827 preempts Section 12.20.

Judge Quidachay of the San Francisco Housing Court ruled in favor of the tenant. In upholding his ruling, the Foster court found authority in the seminal case Birkenfeld v. City of Berkeley (1976) 17 Cal.3d 129 for the proposition that “a municipality has authority to limit the substantive grounds for eviction, but it may not interfere with the procedural protections offered by state law. Nothing in Rule 12.20 interferes with the notice procedures required by section 827, or any other procedural protections. Rather, its effect is to regulate the substantive grounds on which a landlord may evict a tenant”.

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Division Four Disagrees with Delta Imports: Could Borsuk Lead to the Death of the Delta Motion?

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“The question is whether the tenant may challenge the landlord’s alleged failure to comply with this requirement by moving to quash service of summons under section 418.10. We conclude that the tenant may not, and in doing so we disagree with the leading case on the point, Delta [Imports v. Municipal Court].”

On November 23, 2015, Division Four of the Second Appellate District interpreted a long-standing doctrinal procedure for attacking an unlawful detainer complaint: Borsuk v. Appellate Division of the Superior Court of Los Angeles County (2015) 242 Cal.App.4th 607 has the potential to eliminate the “Delta Motion” and change how unlawful detainer actions are litigated.

Continue reading “Division Four Disagrees with Delta Imports: Could Borsuk Lead to the Death of the Delta Motion?”

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Oakland Considering Expanding Required Ellis Relocation Payments

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The East Bay Express reports on the Oakland City Counsel’s proposed amendment to the rent ordinance, which would expand the payment of relocation assistance when tenants are displaced by the Ellis Act. Currently, only low income tenants receive relocation assistance of roughly $8,000 per unit (plus $2,500 for homes with minors, seniors and disabled tenants). The amendment would expand this payment to apply to all displaced tenants, regardless of income level.

This expansion would track a 2003 amendment to the Ellis Act. As the First District Court of Appeals noted, in the case Pieri v. City and County of San Francisco, this amendment removed the limitation that these payments only be given to low income tenants. In that case, the Pieri court upheld a San Francisco ordinance, similarly expanding the required relocation payments to all tenants displaced by the Ellis Act, finding the amount of that payment “reasonable”.

And, while there are certainly limits on what constitutes a “reasonable” relocation payment, the East Bay Express notes that the legislative intent is to allow “displaced renters cover the first and last month’s rent for new apartments . . . and help with other fees and expenses associated with moving in to a new place”. Where Oakland is now the fourth most expensive rental market in the country, these dollar amounts seem to stand a good chance of being “Pieri reasonable”.

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San Francisco Rent Prices “Only” Increased by 4.5% in 2015 (Zumper)

Zumper reports that San Francisco prices increased 4.5% in 2015. While this means that the most expensive housing market in the country got even more expensive, after a 13.5% increase in 2014, this may suggest that prices are approaching their limit – particularly given that prices went down in November of this year.

Zumper also notes that a few neighborhoods in San Francisco actually saw price drops this year.

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San Francisco Average Rent Prices Go… Down?

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Zumper.com reports that the average cost of a one-bedroom apartment in San Francisco actually dropped to $3,500 in November of 2015, from an all time high of $3,670 in October. Also noteworthy in the report is that Oakland became the fourth most expensive rental market in the country for the first time.

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San Francisco Legislative Update (Archives): Affordable Housing Priority

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Chapter 47 of the San Francisco Administrative Code provides for affordable housing unit priority for various categories of tenants. Originally, the stock of affordable units was allocated to applicants who obtained “Certificates of Preference”.

In 2013, San Francisco enacted Ordinance 277-13, which added a category for tenants displaced by the Ellis Act. In 2015, the City enacted Ordinance 204-15, which included tenants displaced by owner move-in evictions under Section 37.9(a)(8) of the Rent Ordinance.

Currently, the Board of Supervisors is evaluating adding another category for people who live or work in San Francisco.

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