Last month, the San Francisco Board of Supervisors voted on amendments to the city’s Rent Ordinance, proposed by Supervisor John Avalos. The amendments will extend “just cause” eviction protections to tenants in units that are not now subject to eviction controls (i.e., most residential rental units with a certificate of occupancy issued after the effective date of the Rent Ordinance, June 13, 1979).

From my understanding, nothing has passed, although If the amendments are passed by the Board of Supervisors and signed into law by the mayor, an owner of residential real property still may, under the Costa-Hawkins Rental Housing Act (California Civil Code Sections 1954.50, et seq.), establish the initial and all subsequent rental rates for a unit located in a structure for which a certificate of occupancy was first issued after the effective date of the Rent Ordinance.

But, according to some, there is some possibility that the mayor may veto the amendments if they are passed by the Board of Supervisors.

Arguments to Advance

1.    The Avalos amendments, if passed by the Board of Supervisors and signed into law by the mayor, will reduce the availability of rental units for the following reasons:

• o    They will impede an owner’s ability to move into a rental unit in structures for which a certificate of occupancy was issued after June 13, 1979—a problem no owner had reason to believe would ever exist when a decision was made to buy and rent.
• o    They will discourage owners from renting units in post-1979 structures because of problems likely to be experienced recovering possession.
• o    They will discourage the construction of residential structures that can be rented.

2.    The Avalos amendments provide only the flimsiest justification for their passage. Two examples:

• o    ”Evictions without just cause from these post-1979 residential units are a growing concern…particularly due to the increasing number of no-fault evictions following property foreclosures.” (No specifics are provided.)
• o    ”As a matter of fairness to all residential renters, just cause eviction protections should be extended to units with a certificate of occupancy first issued after June 13, 1979.”

3.    The Avalos amendments provide no verifiable evidence—only hearsay from biased tenant activists and others—that evictions without cause have become a problem in structures for which a certificate of occupancy was issued after June 13, 1979.

It is estimated that 15,000 residential rental units have been built after June 13, 1979, and currently are not covered by just cause eviction protections. Approximately 180,000 were built before June 13, 1979, and are covered by the rent control provisions of Chapter 37 of the city’s Administrative Code.

From my understanding, nothing has passed, although If the amendments are passed by the Board of Supervisors and signed into law by the mayor, an owner of residential real property still may, under the Costa-Hawkins Rental Housing Act (California Civil Code Sections 1954.50, et seq.), establish the initial and all subsequent rental rates for a unit located in a structure for which a certificate of occupancy was first issued after the effective date of the Rent Ordinance.

But, according to some, there is some possibility that the mayor may veto the amendments if they are passed by the Board of Supervisors.