Payment of the rent increase would be stayed for a period of 60 days from the date of filing or until a hearing is held and a decision issued by an Administrative Law Judge.

From my understanding, how it will be determined whether a renter’s claim of financial hardship is to be granted, the Rent Board and the Administrative Law Judge would base their decision on:

• Whether a tenant in a household is either unemployed or has had wages reduced by 20 percent or more compared to 12 months prior, or whose sole income consists of government benefits such as Social Security, SSI, SDI or similar benefits and has not received a cost of living increase in the past 12 months;
• Whether the rent including the increase comprises or will comprise 33 percent or more of the tenant’s gross income;
• Renter’s assets also are to be considered in making the determination.

Upon a finding that the tenant has financial hardship, the Administrative Law Judge will order that the rent increase will not be in effect for a specific period of time based on the tenant’s circumstances and schedule a review at the end of that period.

If the rent increase is later allowed, it will take effect as of the date the tenant’s income or assets changed to permit the increase.

Of course, this hasn’t gone into effect as it is part of the ballot in June – so if you’re a renter or a landlord, it probably is important to remind yourself about this and go to the ballet to have your vote counted.

A new city-run program, GreenFinanceSF, will give San Franciscans the money to pay for such projects up front and let them pay it back through installments on their property tax bills. Berkeley pioneered the idea in 2007, and since then, hundreds of cities, counties and states have adopted their own versions.

For more information, give me a call (415-680-8031) or email

Important dates to know, eligible taxpayers who close escrow on qualified principal residences between May 1, 2010 and December, 31, 2010, or who close escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit.

Under the bill, purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state…doubt you want to do that, so keep that timetable in mind). Buyers also must be at least 18 years old and be unrelated to the seller.

By the way, if you have forgotten, first-time buyers are defined as those who have not owned a home in the past three years, so if you have been renting the past three years and want to get back in as we’re seeing more activity in the San Francisco market, now maybe a good time for you to do so.

This is a limited time tax credit upwards of $18,000. As always, you should consult with your tax advisor on how this new tax credit will or can effect you before jumping into anything.

Give me a call (415-680-8031) to find out.

The FBI just recently arrested 18 people in the Bay Area last week on the suspicion of involvement in mortgage fraud schemes that led to the loss of more than $10 million.

All the individuals were are currently in the mortgage and real estate business, with three being former bank employees, eight real estate brokers and at least one mortgage broker.

$10 million dollars within a four year time span between 2005-2009, right at the height of the real estate market towards the down-turn that occurred with the banking crash of 2007.

Source: KTVU

Given that we live in Earthquake country, sounds like a good idea to me. With so many of our homes in San Francisco being built in the early 1920s-1940s, retrofitting them to protect yourself in the event of an earthquake will pay divednece in the event of one.

It’s been 21 years since the last major quake, and if you were here as I was, you know that it’s been a while since that last one and another one is probably coming sooner than later.

The new legislation, which takes effect on April 19, 2010:

• Waives Building and Planning Department Plan Review fees—saving hundreds or even thousands of dollars per project.
• Expedites the processing, review and approval of permits for voluntary seismic retrofit upgrades of soft-story, wood-frame buildings—buildings identified as likely to collapse during the next major earthquake in a January 2009 study by the Community Action Plan for Seismic Safety (CAPSS); and
• Enables those who retrofit voluntarily now, and who meet the building performance standard established by the Building Department for these voluntary retrofits, to be exempt for 15 years from any requirements that may be adopted in the near future as mandatory retrofitting legislation is enacted.



New ordinance starts March 14th 2010

Didn’t know about that? Why haven’t you signed up to the newsletter then?

Well, either way, now you know. So if you were considering purchasing a home and trying to get the Tax Credit from the government, you defiantly will have to consider a time frame when you can move if there are tenants currently residing in the home as it is still currently the school year until late May.
Although…there are exceptions.

“The law will not apply where there is only one rental unit owned by the landlord in the building, or where the owner who will move into the unit pursuant to Section 37.9(a)(8) eviction has a custodial or family relationship with a child under the age of 18 who will reside in the unit with the owner.”

If you forgot, the federal tax credit for home buyers was extended and expanded late last year, and will be for good either first time home buyers or repeat buyers that purchased and closed their escrows by April 10, 2010. Qualified first-time buyers may be eligible to receive a tax credit of up to $8,000 and repeat buyers may be eligible for a tax credit of up to $6,500.

To receive the tax credit, home buyers must comply with the IRS’s documentation requirements, including a fully executed IRS Form 5405.  On the form, which is available on the IRS’s Web site, taxpayers provide information supporting their claim of eligibility, such as income and home purchase date.

The IRS also requires home buyers to submit a copy of the closing or settlement statement that proves the transaction took place. The IRS previously said that the statement should show “all parties’ names and signatures, property address, sales price, and date of purchase.”  However, since closing or settlement statements vary by state, and in some cases the form does not include both the seller’s and buyer’s signatures, the IRS has revised this requirement.  As long as the closing or settlement statement conforms to prevailing local practices, the IRS will accept it.

One stipulation for repeat buyers is they must provide documentation they lived in their former property for a consecutive five years out of the previous eight years. Accepted documentation may include property tax records, hazard insurance records, or copies of annual mortgage interest statements filed with their federal taxes.

I’ve included the link below so that if you’re doing it yourself, you can look into it or you can forward the link to your Tax Advisor.

First-Time Homebuyer Credit: Answers

I can attest that I’ve come across a number of all cash buyers at the low end of the spectrum in both the East Bay and within entry level Studio/1 bedroom condos in the city, but hearing that the high end of the market is also experiencing this trend is surprising, and I wouldn’t expect to see this trend continue much longer.

High down payment buyers understand that is the “safest” way in order to make your monthly mortgage payments easy on their pockets and won’t allow them to get into the foreclosure situation so many people have been a part of the past two years.

They also found that “at the current sales rate, the months of supply inventory for single-family homes dropped to 3.5 months from 5.8 months while the months of supply inventory for condominiums show a more substantial decline during this time, dropping to 4.1 months from 9.5 months in January 2009. Rosen Consulting Group believes this to be another positive sign in the market.”

I bet you probably didn’t know about this little rule from the city did ya?

“Under rules introduced late last year (2009) by city leaders in an attempt to reduce neighborhood blight, a property owner is required to pay a $765 annual fee to register a vacant building and maintain it in a secure and good condition”.

Source: SF Examiner