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Monday February 3, 2020

Expansion of Eviction Controls to All Residential Rental Units - Amendment to the SF Ordinance

Effective Date: January 19, 2020
 
The San Francisco Board of Supervisors has unanimously approved an ordinance by Supervisor Matt Haney expanding the City's current eviction controls so that they apply to all residential rental units regardless of when they were built. Prior law exempted from such control units in buildings having an original Certificate of Occupancy that was issued after June 13, 1979. The new law became effective January 19, 2020.
 
Under the new law, all residential rental units now fall under the jurisdiction of the Rent  Board, are subject to rental unit fees to the Rent Board, and may be subject to tenant lawsuits for a landlord's violation of the City's eviction controls. 
This new ordinance follows enactment of AB-1482, the Statewide Rent and Eviction Control measure which permitted local municipalities to pass more restrictive measures.
 
WHAT DOES THIS MEAN?
 
Rent Control:
- San Francisco's rent control provisions remain unaffected. Properties built after June 13, 1979 remain EXEMPT from the local rent increase restrictions. However, such properties ARE SUBJECT to statewide rent restrictions as applicable.
- The statewide measure known as Costa Hawkins (Civil Code Section 1954.50 et seq.) remains substantially unaffected.
 
Eviction Control:
Eviction control protections now apply equally to all properties in San Francisco, regardless of when they were built - INCLUDING SINGLE FAMILY HOMES AND CONDOS. For example, an owner (landlord/seller) of a residential rental unit in San Francisco having a certificate of occupancy that was issued after June 13, 1979 may no longer evict a tenant solely for not vacating at the conclusion of the written lease term, nor evict a month-to-month tenant of such a unit in preparation for the sale of the property with 30/60 days notice. Such a tenant now generally has the continued right to remain indefinitely unless there is a  "just-cause" basis for eviction or alternatively, and with full compliance with all related legal requirements, a properly negotiated written voluntary buyout agreement and effectuated buyout. Such procedures are technical, expensive and, if not handled correctly, can result in serious liability and other ramifications. Engaging a qualified local landlord attorney before initiating any such procedures is strongly recommended.

Multiple Tiers of Rent and Eviction Control:
Conflicts exist between the Statewide Measure and the San Francisco rent and eviction ordinance creating multiple tiers of rent/eviction controls. For example, there is a 15-year "rolling" exemption under the State law that exempts new construction built both (a) after June 13, 1979 and (b) with an original certificate of occupancy that was issued within 15 years before the date of rental. Thus, if the original certificate of occupancy was issued on July 31, 2006 it would be exempt from the new State law to and including July 30, 2021, if issued July 31, 2007, until July 30, 2022, etc. Determining how these laws affect any individual residential rental property is complex and should only be handled by a qualified San Francisco landlord-tenant attorney.   

Due to the complexity of the new state laws and their impact on the existing and ever-changing local rules, interested parties are cautioned to seek the advice and counsel of a qualified local landlord-tenant attorney. Real estate agents cannot and will not give legal or tax advice.

 

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