San Francisco Real Estate - Residential

San Francisco property owners get the shaft as Proposition H passes

Once again it is a case of the inmates running the asylum as most of San Francisco voters, who are renters, passed the ironically named Proposition H (not Preparation H) which will require property owners to pay outrageously high expenses to "eligible tenants" for no-fault evictions. Is it any surprise that more and more property owners are going out of the rental business? It is our opinion that tenants are only hurting themselves in the long run as the supply of good rental units continue to disappear from the market.

Section 37.9C of the Rent Ordinance is set forth in the paragraphs below:

• Each eligible tenant receiving a covered no-fault eviction notice shall receive $4,500, $2,250 of which shall be paid at the time of the service of the notice to quit, and $2,250 of which shall be paid when the unit is vacated. In no case, however, shall the landlord be obligated under this Section 37.9C (e) (1) to provide more than $13,500 in relocation expenses to all eligible tenants in the same unit.
• In addition, each eligible tenant who is 60 years of age or older or who is disabled within the meaning of Section 12955.3 of the California Government Code, and each household with at least one eligible tenant and at least one child under the age of 18 years, shall be entitled to receive an additional payment of $3,000, $1,500 of which shall be paid within 15 calendar days of the landlord's receipt of notice from the eligible tenant of entitlement to the relocation payment, along with supporting evidence, and $1,500 of which shall be paid when the eligible tenant vacates the unit. Within 30 days after notification to the landlord of a claim of entitlement to additional relocation expenses because of disability, age, or having children in the household, the landlord shall give written notice to the Rent Board of the claim for additional relocation assistance and whether or not the landlord disputes the claim.
• Commencing March 1, 2007, the relocation expenses, including the maximum relocation expenses per unit, shall increase annually, rounded to the nearest dollar, at the rate of increase in the "rent of primary residence" expenditure category of the Consumer Price Index for All Urban Consumers in the San Francisco-Oakland-San Jose Region for the preceding calendar year, as that data is made available by the United States Department of Labor and published by the Board.

- Mick Orton

posted by SFResidence.com @ 4:58 PM