houses

Berkeley Top Rental Market
Berkeley rentals are usually listed for an average of six days before they are rented.
http://sf.curbed.com/2016/5/11/11659084/berkeley-el-cerrito-rent-onerent

Lawsuits Following Berkeley Balcony Collapse
They are suing 11 named defendants who fall under the umbrella of two companies: Blackrock – the owners of the Library Gardens development, and Greystar – the property managers…
The three are alleging that the wooden deck of the balcony was already water damaged before the water-proof coating was applied in 2006, during the construction of the Library Gardens complex, and that the owners and managers knew it was dangerous.”
http://www.rte.ie/news/2016/0412/781151-berkeley-balcony-legal/

A Californian judge denied applications by the main defendants in the suits, who had been seeking to have claims for punitive damages struck out. These are additional damages paid on top of basic compensation, designed to punish offenders and to discourage similar conduct in future.”
http://www.independent.ie/irish-news/courts/court-rejects-bid-to-limit-damages-in-berkeley-case-34663214.html

Five Library Gardens Contractors Broke Law
Contractors State License Board, or CSLB, found Segue Construction, Etter and Sons Construction, R. Brothers Waterproofing, Northstate Plastering and the Energy Store of California “willfully departed from accepted trade standards for good and workmanlike construction.”
http://www.dailycal.org/2016/04/14/license-board-alleges-contractor-violations-contributed-berkeley-balcony-collapse/

“Investigators said the balcony supports failed because the incorrect application of waterproofing resulted in “water incursion that caused dry rot.” The Alameda County (CA) district attorney said that workers waterproofed the balcony supports while they were wet, leaving the water trapped underneath to rot the wood.”
http://www.constructiondive.com/news/ca-investigators-cite-contractors-in-berkeley-balcony-collapse-for-poor-wo-1/417241/

Oakland Converting Residential Hotel to Luxury Tourist Spot
One of the last single room occupancy hotels in Oakland will be converted to a boutique hotel, according to the East Bay Express. Losing the 102 rooms will likely increase the number of homeless in Oakland. Several other low-income hotels are already being converted, because Oakland has no protections for SROs.
The potential sale of the Sutter — which serves very-low income people, many of them on the verge of homelessness — follows the recent sale of two other downtown Oakland SROs to investors, who plan to push out existing tenants and turn the properties into market-rate apartments or upscale tourist hostels.”
http://www.eastbayexpress.com/oakland/affordable-no-more/Content?oid=4791392

Evictions in Alameda County
Dejected renters sat on benches along the walls, fiddling with their cell phones. Seniors leaned on canes. Other tenants pushed walkers. One man told his attorney he’d kill himself if he lost his home in Berkeley, where he’d lived for 18 years.”
http://www.mercurynews.com/crime-courts/ci_29831195/evictions-soar-alameda-county-rents-rise

San Jose Considers Relocation Funds for Renters
Berkeley already provides relocation for tenants displaced through no fault of their own, and the Rent Board has requested a ballot measure this year to raise the relocation funds for owner-move-in evictions, since Berkeley has not increased the allowance since 2001.
https://nextcity.org/daily/entry/san-jose-landlords-pay-displaced-tenants

Owners appear to move into this airstream when they rent their home in West Berkeley on AirBnb.
Owners appear to move into this airstream when they rent their home in West Berkeley on AirBnb.

EDIT: Planning Commission final public hearing 1/20
Housing Commission Strengthens Recommendations for Local Law
Berkeley’s Housing Advisory Commission sent a follow-up to their earlier short-term rentals recommendations. The HAC did this both because the draft ordinance does not seem to reflect their recommendations and because there were additional issues to address.
“During the meeting, Darrow expressed concerns that current regulations could allow owners to turn rent-controlled housing units into short-term rentals by evicting all tenants in a building under the Ellis Act, a state law that allows property owners to evict tenants in order to “go out of business.”
According to the new language approved by the commission at the meeting, if an owner evicts a tenant from a unit through no fault of the tenant, the owner must wait five years before the property can be turned into a short-term rental. Additionally, owners must obtain a business license through the city and list their license number in their rental listings.”

http://www.dailycal.org/2015/12/06/citys-housing-advisory-commission-approves-short-term-rental-recommendations/

Draft Law Making Final Rounds
The draft of Berkeley’s Short Term Rental (STRs) ordinance is now available to the public. The next step is for the Planning Commission to hold a final public hearing, then the law will go back to the City Council, which last discussed the matter in July. Unfortunately, the staff report specifically says they did not address concerns from the Housing Commission in the draft.
It is also unfortunate that the draft law seems to contravene two Council referrals (one on ADUs and one on STRs) by allowing accessory dwelling units (ADUs) on the same property in which an owner occupies another unit as her primary residence to be used as hotel rooms. As usual, the language in the draft law is unclear:
“Host present” means the host is living at the premises of the dwelling unit that is being used for STRs during the short-term rental period or living in the Primary Residence or the Accessory Dwelling Unit.”
Read the Draft: 2015-12-16_Information_Item_Draft Short Term Rental Ordinance-Combined
The Planning Commission is expected to hold a public hearing on January 20 or February 3rd.

Berkeley Owners Sent Warning Letters
At the 4×4 Committee meeting in December, Planning Director Eric Angstadt told Council leaders and Rent Board Commissioners that the City Manager’s office sent warning letters to several STR operators who are violating Berkeley’s current ban on rentals of less than 14 days. BTU has done a public records request to see if letters were sent to the 4 owners BTU filed complaints about in May and June of 2015.

STRs in the News

Ousted Tenants Sue In Los Angeles
“Their rent-controlled building allowed them to enjoy below-market rents of less than $2,000 a month for their two-bedroom pads in the upscale neighborhood. That came to an end in late 2013 when the owners evicted them under the Ellis Act, a state law that allows landlords to get out of the rental business….Within weeks, their apartments began appearing on Airbnb — a short-term rental site geared at tourists — for nightly rates that could total $15,000 a month, they said.”
http://www.latimes.com/local/westside/la-me-1217-ellis-suit-20151217-story.html

Airbnb Fined for Offering Lodgings Without Permits in Barcelona
With the aid of a software programme, the town hall detected listings for 1,891 lodgings that did not have proper permits on Airbnb, and another 3,929 on HomeAway, it said in a statement. Each have been issued a fine of €60,000 ($65,000).
Since taking office in June, Barcelona mayor Ada Colau, a former anti-eviction activist, has kept her pledge to try to curb a boom in visitor numbers that she fears could drive out poor residents and spoil the charm of Spain’s second largest city.”
http://www.thelocal.es/20151222/barcelona-city-hall-fines-airbnb

File Dec 24, 2 04 50 PMCode Enforcement Item Passes at City Council
Jesse Arreguin’s item asking for changes to Berkeley’s Rental Housing Safety Program passed on the consent calendar after being postponed for several meetings. Of course, the item doesn’t yet set policy, it just asks for a report back from the City Manager regarding costs for proactive rental housing inspections and other proposed improvements.
Berkeley City Council also passed Arreguin’s item to have Berkeley staff look into the feasibility of creating a “small sites program” to help nonprofits – such as student co-ops – purchase small multi-family buildings.
District 7 Council Member Kriss Worthington’s item requesting our state representatives to work to increase the California housing tax credit for low income residents also passed on consent, but several other housing items Worthington had introduced for an October meeting were held over for a fourth time and will be heard January 12th.

Rental Housing Safety Program Item:
http://www.ci.berkeley.ca.us/Clerk/City_Council/2015/12_Dec/Documents/2015-12-01_Item_28_Revising_the_Rental.aspx
more info:
https://www.berkeleytenants.org/?p=1456

Related: More Library Gardens Balcony Lawsuits
As well as blaming contractors involved in the construction, lawyers claim the company which managed the Library Gardens apartment complex did not want to spend money on remedial work or investigations as it was motivated to maximise profits.”
http://www.independent.ie/irish-news/berkeley-tragedy/berkeley-lawsuit-claims-red-flag-warning-ignored-34300516.html
“Some of the Irish students who witnessed the Berkeley balcony collapse but who were not injured are expected to file lawsuits over their emotional distress, according to a new court filing in California.”
http://www.irishtimes.com/news/ireland/irish-news/berkeley-witnesses-expected-to-file-lawsuits-over-incident-1.2459187

Students Getting Involved!
BTU has added many student members this year, including two recent graduates and one current student who now serve on the steering committee of your Berkeley Tenants Union. The Associated Students of the University of California joined with BTU in appealing the demolition on Durant, and the ASUC has also formed a Student Housing Committee to create a Housing Action Plan to address how the housing emergency is impacting students.
“The committee is considering several potential solutions to address the campus’s housing shortage, such as constructing additional buildings in the courtyards of Unit 1 and Unit 2 and earmarking parts of the university budget to building more affordable housing…The committee also discussed plans for a Housing and Tenants’ Rights Week, tentatively scheduled from Feb. 8-13, and a possible large public event to bring awareness to student-housing issues.”
http://www.dailycal.org/2015/12/11/asuc-student-housing-committee-discusses-housing-tenant-rights/

In Other News 

Fire Highlights Problems With Relocation Law
At issue was Berkeley’s Relocation Ordinance, written in 2011 and designed to support tenants who are temporarily forced out of their rental units. It applies most often to planned renovations that displace tenants — as well as to relocation due to fire or code enforcement, except in the case of an earthquake or other natural disaster. Under the ordinance, tenants are entitled to “relocation payments from the property owner to mitigate the costs associated with a temporary move,” until they can move back into the unit.”
http://www.berkeleyside.com/2015/12/10/tenants-scramble-to-relocate-after-dwight-way-fire/

Oakland Ellis Evictions
With no-fault evictions on the rise, Oakland is considering a relocation fee that will be higher than San Francisco’s or Berkeley’s.
http://www.eastbayexpress.com/SevenDays/archives/2015/12/07/ellis-act-evictions-on-the-rise-in-oakland

Lafayette Wants Rent Control
This summer, the Bay Area suburb of Lafayette backed down on a city moratorium on rent increases when controversial landlord Sack Properties agreed to limit increases to 10%. However, tenants say the owner added on new charges and fees instead of raising the rents. Now renters are back before the City Council asking for protections.
“He outlined the many charges and fees: water charges, marked-up garbage costs, pet rent, parking rent, mandatory renters insurance, questionable language in new leases that give the landlord the right to evict tenants for anything deemed to be an excessive mess, and a $3,000 charge for an early break of the lease.
A parade of concerned tenants spoke to the council about all of these issues, emphasizing the serious inconsistencies in utility charges, and lack of transparency.”
http://www.lamorindaweekly.com/archive/issue0920/Tenants-Criticize-Landlord-Practices-Again.html

Redwood City Wants Rent Control
Across Redwood City, the median rent price for two-bedroom apartments increased from $2,500 to $3,800 since 2012, according to the real estate website Zillow. Minimum wage and other full time workers are unable to afford those rents. They end up having to move out of the area and in sometimes quitting their local jobs.”
http://ww2.kqed.org/news/2015/12/21/redwood-city-renters-officials-face-off-as-housing-crisis-intensifies

Videos From the November 22 Housing Teach-In:
https://www.youtube.com/playlist?list=PLS2O9Gttsg5cwvAjJi-VMccKBLLu3-Iun

teach-In

Media Estimates 180-plus Attended Teach-In November 22

“Audience members lined the walls, balcony and sat on the floor for the “teach-in,” organized by the Ad Hoc Committee for a Progressive Berkeley in conjunction with eight other advocacy and tenants’ rights organizations.”
http://www.berkeleyside.com/2015/11/24/20k-a-month-for-berkeley-house-skyrocketing-rental-prices-draw-crowd-to-housing-affordability-teach-in/comment-page-1/

“Among the ideas discussed, Stephen Barton, panelist and former deputy director of the city’s Rent Stabilization Program, proposed an affordable housing tax that taps into the excess profits landlords receive from rent. Revenue from the tax would be used to aid the development of below-market-price housing.”
http://www.dailycal.org/2015/11/23/community-members-meet-affordable-housing-teach/

“Areas included housing for teachers and firefighters; those sleeping in doorways; workers who can’t pay escalating rents; seniors whose fixed income is less than even small rent increases allowed under rent control; students stuffed five or more into two-bedroom apartments; and very low income tenants with federal housing vouchers that no local landlord will accept.”
http://www.insidebayarea.com/breaking-news/ci_29160259/berkeley-panel-urges-community-activism-address-housing-crisis

“The city is an increasingly unaffordable place for low- and moderate-income households and for students, which is threatening the city’s valued diversity,” according to the Berkeley Progressive Alliance, which is sponsoring the event. Co-sponsors include Sustainable Berkeley Coalition, Berkeley Citizens Action, Berkeley Tenants Union, California Public Interest Research Group (CALPIRG), the Berkeley NAACP, Black Student Union of Berkeley City College and the Better Berkeley Working Group.There will be a panel composed of former Berkeley Housing Director Stephen Barton; affordable housing activist Moni Law; Rick Lewis, executive director at Bay Area Community Land Trust; Berkeley Student Cooperative President Austin Pritzkat; and Katherine Harr of the Berkeley Tenants Union.”
http://www.contracostatimes.com/breaking-news/ci_29145519/berkeley-affordable-housing-teach-explore-solutions-skyrocketing-rents

A Similar Message at City-Sponsored Panel
“Christina Murphy, with the Friends of Adeline Corridor, spoke from the audience, saying in her work as housing case manager at the Berkeley Drop-in Center, she sees a growing number of seniors and people working three jobs without housing.” People going to Cal live in their cars,” she said, arguing the solution is a windfall profit tax on landlords, a proposal the city council will address.” People are building in our town and not putting in the money they should,” she said.”
http://www.contracostatimes.com/bay-area-news/ci_29124916/berkeley-few-prospects-affordable-housing-panel-says

Public Finds City-Sponsored Panel Lacking Solutions
“No mechanism was described whereby the people would gain a seat at the planning tables, at which they could actually shape the course of things to come. But still, it was called “participation.” The issues involved, from the neighborhood’s perspective, in these prior meetings, were clear. Affordable housing, no dislocation, no evictions; at several meetings, that was summed up as a call for a moratorium on market rate housing until the need for affordable had been satisfied. Somehow, none of that appeared in this A-H 101 session.”
http://www.berkeleydailyplanet.com/issue/2015-11-20/article/43940?headline=State-of-Emergency-101—Steve-Martinot

Broken Elevator Illustrates Need for Code Enforcement
The elevator at Acton Courtyard – owned by Equity Residential and exempt from the Rent Ordinance because it is recent construction – was broken for 14 days, despite Berkeley codes which require repair within 24 hours. Disabled residents were trapped in their homes or unable to access their units.
Changes to Berkeley’s code enforcement will be discussed at Council December 1.
http://www.berkeleyside.com/2015/11/24/broken-elevator-strands-disabled-berkeley-tenants/comment-page-1/

No Place for Students
The UC system is adding 10,000 students and Mayor Bates says Berkeley might get 4,000 of those. Currently, UCB houses only 8,244 of their 37,581 students. Now, students say a proposed city law regarding Group Living Accomodations will make it harder for student co-ops to provide affordable housing and build community. Meanwhile, private dorms like Casa Cedar and The Berk are charging students $1000-$1400 a month TO SHARE a room.
http://m.eastbayexpress.com/oakland/where-are-students-supposed-to-go/Content?oid=4588970

Oakland to Increase Rent Board Fee
“The city needs to triple the existing fee that funds the program, from $30 to $110 per every rental unit, or it will be unable to enforce its rent adjustment rules and resolve tenant landlord disputes. However, both landlord and tenant advocates are opposing the proposed fee increase, on the grounds that it’s excessive.”
http://www.eastbayexpress.com/oakland/eviction-and-rent-hike-complaints-skyrocket-in-oakland/Content?oid=4580708

Tony Thurmond’s Housing Town Hall
“Some solutions proposed, such as increasing the impact fees levied on building developers, were quite popular among the audience. Acknowledging others that were not, such as adding an annual tax to cable subscriptions to fund affordable housing, Thurmond requested at the onset that the audience members ‘boo quietly’ if they wished to.”
http://www.dailycal.org/2015/11/15/assembly-member-holds-town-hall-on-affordable-housing-shortages-talks-solutions/

SF Mission Home For Sale at Discount
It’s kind of sad that selling your house for only $650K makes the news, but what this woman did for her Mission District community is still cool.
http://sfist.com/2015/11/25/woman_sells_mission_apartment_for_2.php

History Lesson
This good tenant attorney blog gives a little etymology.
http://crowandrose.com/2009/06/they-dont-call-em-landlords-for-nothing-2/

…And the Fun Never Ends
Councilman Arreguin may bring back necessary changes to the demolition ordinance at the December 15 City Council meeting.

Durant-Project
Other apartment buildings will be at risk if the Durant demolition is permitted.

Mayor Bates would like to us to give up, and stay out of important City business. Berkeley City Council has two meetings on Tuesday December 1st, and both agendas are packed with issues concerning housing, renters, and poverty. The meetings will be held at Longfellow instead of old City Hall: 1500 Derby, at Sacramento Street.
The already burdensome agendas now also include items held-over and postponed from the last couple of meetings, including several issues which tenants have already waited hours to see discussed:

Demolition Appeal (7 pm) Item 24
SUMMARY: Allowing the demolition presents dangerous precedents: This would be the first time Berkeley has allowed an owner to claim he can’t make a fair return on a rehabilitated building. The developer invited the Berkeley Fire Department to tear out walls and cut holes in the roof!! To grant this project as requested is to condone willful destruction of housing.
ACTION: Come to the hearing on December 1st and hold signs showing support.
More Info: https://www.berkeleytenants.org/?p=1477
Berkeley Citizens Action: BCA-letter-111715

Rental Housing Safety (7 pm) Item 28
SUMMARY: Landlords are letting their housing fall apart. Besides proactive inspections and confidential complaints, this would also make mold and mildew a public nuisance, and require landlords to actually turn in the self-inspection they are supposed to do each year.
ACTION: Take a photo of unsafe conditions and send to Council by November 30.
More Info: https://www.berkeleytenants.org/?p=1456
Wellstone Democratic Club: Wellstone-letter-111715

Affordable Housing (5:30 pm) Items 2a, 2b, 2c, 2d, 2e
SUMMARY: Common-sense measures to make city funding for affordable housing easier.
ACTION: You already signed the petition, but did you ask your friends?
http://petitions.moveon.org/sign/fund-affordable-housing-2.fb48?source=c.fb&r_by=9240326
More Info:
Sierra Club Letter: Sierra Club 10-27 Berkeley City Council Items on Affordable Housing
Daily Cal: http://www.dailycal.org/2015/11/08/housing-advisory-commission-talks-assessment-of-affordable-housing-mitigation-fee-predevelopment-funding/
Cool Map: http://ww2.kqed.org/pop/map-where-can-you-find-an-affordable-one-bedroom-near-bart-san-francisco-bay-area-oakland

See You Tuesday December 1!
Longfellow Middle School, 1500 Derby

Also on the 5:30pm Agenda:
Below Market Rate Housing Report; Housing Trust Fund Status Update; Use of Predevelopment Funds by Nonprofit Housing Builders; Report from Berkeley Housing Authority.
http://www.ci.berkeley.ca.us/Clerk/City_Council/2015/12_Dec/City_Council__12-01-2015_-_Special_Meeting_Agenda.aspx

Also on the 7:00pm Agenda:
Accessory Dwelling Units; Appointment to Human Welfare Commission; Police Crowd Management Policies; Lien for Noncompliance with Seismic Mitigations 1734 University; 2nd Reading of Anti-Homeless Laws.
http://www.ci.berkeley.ca.us/Clerk/City_Council/2015/12_Dec/City_Council__12-01-2015_-_Regular_Meeting_Agenda.aspx

 

Update from the Windfall Profits Tax Special Workshop November 17:

FundAffordableHoudingThe City Council gave the new landlord PAC, the Berkeley Rental Housing Association, a seat at the table for their very own PowerPoint on how it must be somebody else’s job to fund affordable housing. However, the Council seemed receptive at the workshop since the measure has what passes for bipartisan support, Berkeley-style: both Arreguin and Capitelli want to fund affordable housing through a reasonable increase in the business license fee. Only Mayor Bates asked aggressive questions which betrayed his ignorance of the process of crafting Council ballot measures.

Contra Costa Times Covers Landlord Tax
Satellite Affordable Housing Associates Executive Director Susan Friedland said $4 million annually would mean construction of 40-to-50 affordable units every year given that nonprofit housing developers must get about 25 percent of their funding from local sources to leverage other funds….Barton proposed a number of exemptions, including one- and two-unit and nonprofit-owned properties; rent-controlled properties with pre-1999 tenants (before vacancy decontrol allowed landlords to set rents of rent-controlled units as high as the market will bear when units are vacated); low-and-moderate income landlords; and units with federally subsidized tenants.”
http://www.contracostatimes.com/breaking-news/ci_29134727/berkeley-tax-proposed-fund-low-income-housing

Affordable Housing Panel November 14
Amy Davidson, community project coordinator for the City of Berkeley, said it takes $500,000 to develop one unit of affordable housing and then discussed the city’s $28,000 fee for developers with a complete lack of irony.
http://www.contracostatimes.com/bay-area-news/ci_29124916/berkeley-few-prospects-affordable-housing-panel-says

Why don’t City inspectors notice these problems?
Why don’t City inspectors notice problems like this balcony on San Pablo?

Balcony Lawsuit Says Owners Knew About Problems
If we had the proactive inspections program the City Council will discuss on December 1, then this tragedy may have been prevented.
The lawsuit claims that Segue used cheaper materials to construct the balcony, making it more susceptible to water damage, and left it exposed to rain during construction in 2005…. Previous tenants reported seeing mushrooms – a clear sign of rot.”
http://theindianrepublic.com/lawsuits-filed-in-deadly-berkeley-balcony-collapse-reveal-3892.html

Tenants Reported Signs of Rot Weeks Before Deadly Balcony Collapse
http://www.mercurynews.com/news/ci_29110467/
“Library Gardens was only 8 years old when the balcony collapsed, leading many to wonder how such a new building could have such a catastrophic structural failure. The city of Berkeley released a report that identified dry rot as the only contributing factor to the structural failure of the balcony, but the city said determining the reason for that failure was beyond the scope of its analysis. The lawsuit claims to have identified the reason.”
http://www.berkeleyside.com/2015/11/13/berkeley-balcony-collapse-contractor-used-inferior-wood-and-owner-ignored-signs-of-rot-including-mushrooms-sprouting-from-the-surface-lawsuits-allege/

Berkeley Tenant Fights for Garden
Berkeleyside: Gorell moved into the rent-controlled, one-bedroom apartment in 1979 and began to add plants to the front and side of the building soon after that. Gene Anderson, the son of the original owners, and his wife used to visit annually and would compliment Gorell on how he had turned the space into an alluring swath of green, according to Gorell. Gorell also wrote to the Andersons in 1992 to describe his plans for the garden. There were no complaints, he said.”
http://www.berkeleyside.com/2015/11/11/lush-berkeley-garden-at-center-of-tenant-landlord-dispute/
Daily Cal: http://www.dailycal.org/2015/11/11/berkeley-tenant-fights-to-preserve-garden-in-ongoing-dispute-with-landlords-property-managers/ 

Activists Say They Are Targeted for Eviction at Redwood Gardens
https://www.indybay.org/newsitems/2015/11/11/18779862.php

Berkeley’s Largest Landlord Leaving Town
http://www.berkeleyside.com/2015/11/16/equity-residential-to-sell-8-berkeley-apartment-buildings/

Rent Wars
Excellent overview of California’s housing crisis and current tenant’s movement.
“Activists in cities that have long had rent control laws are pushing for stronger measures. In Los Angeles, activists like Larry Gross, Director of the Coalition for Economic Survival, want the city to stop allowing tenants to be evicted so that speculators can demolish their rent-controlled buildings.”
http://www.beyondchron.org/the-new-rent-control-wars/

Alameda Tenants Get Moratorium
Something is better than nothing!
The Alameda City Council on Wednesday approved a 65-day moratorium on rent increases above 8 percent and no-fault evictions. Tenant advocates were hoping for an outright moratorium as the city considers various permanent tenant protections, including banning evictions without cause.”
http://www.contracostatimes.com/news/ci_29078395/bloody-alameda-meeting-highlights-tenants-growing-ire

Berkeley Fair Election Initiative
But when elections are determined by fundraising alone, communities pay the price. And when the perception is that only money matters in campaigns, it erodes public faith in government. With voter turnout at historic lows, we need to do everything we can to increase participation.
What if I told you there was a proposal to encourage local candidates to spend more time talking to voters and less time dialing for dollars? What if this proposal could diversify the local donor pool, encourage more voters to participate and make City Council more responsive to the citizens they are elected to serve?”

http://www.berkeleyside.com/2015/11/06/lets-amplify-local-voices-in-berkeley-city-hall/

Evictions and Air BnB
“Data analysis of Airbnb usage in San Francisco tells a decidedly different story about who is benefiting. Although Airbnb refuses to share its numbers, a 2014 report commissioned by the San Francisco Chronicle found that of the (at the time) nearly 5,000 homes, apartments, and private or shared rooms for rent via Airbnb, two-thirds were entire houses or apartments with no owner present during the rental period, and almost a third of Airbnb rentals were controlled by people with two or more listings. Some of the “whole house” or “whole apartment” rentals are from hosts who happen to be away. But many others are being rented out by professional property managers who are handling multiple Airbnb rentals on behalf of absentee home- and condo owners. A separate study conducted by data analyst Tom Slee found similar results. He calculated that about 70 percent of Airbnb revenue comes from hosts who are renting out an entire home or apartment, and 40 percent comes from Airbnb hosts with multiple listings.”
http://prospect.org/article/evictions-and-conversions-dark-side-airbnb

Is Berkeley Like Disneyland?
More than 40% of the homes that have permits to rent in Anaheim are owned by real estate companies, investment firms or the owners of multiple properties, according to city records.
“These are basically unsupervised mini hotels in our neighborhoods,” said Cornejo, who has called the police on his neighbors several times for late-night noise.
With so many strangers visiting their communities, some residents recently urged Anaheim council members to consider safety and security issues. Renter safety too has become a growing concern in the wake of some well-publicized reports of sexual assault, injuries and deaths at short-term lodgings in other towns.”
http://www.latimes.com/business/la-fi-anaheim-short-term-rentals-20151111-story.html

Evictions and Rent Hikes Skyrocket In Oakland
http://www.eastbayexpress.com/oakland/eviction-and-rent-hike-complaints-skyrocket-in-oakland/Content?oid=4580708

NY Attorney General Disregards Airbnb Promises
It is a transparent ploy by Airbnb to act like a good corporate citizen when it is anything but,” Schneiderman told Re/code in an emailed statement. “The company has all of the information and tools it needs to clean up its act. Until it does, no one should take this press release seriously.”
http://recode.net/2015/11/11/new-york-attorney-general-activists-call-bullshit-on-airbnbs-promises/

Changes to Berkeley’s Rental Housing Safety Program will be discussed November 17
Changes to Berkeley’s Rental Housing Safety Program will be discussed November 17

Lots of Berkeley folks came out to the City Council meeting on October 27 to support a large list of measures designed to address the housing affordability crisis. Unfortunately, most of the items were postponed to December 1 or November 17.

BTU’s Letter to Council:
2015.10.27 Council Letter

Important Item Returns November 17

November 17 is shaping up to be a big day for Berkeley Tenants. BTU’s appeal of the demolition of 18 rent controlled units on Durant will be at the City Council, as well as a 5:30 PM special workshop about funding affordable housing by increasing the business license tax on rental property.

Last night, the Council also voted to postpone review of Jesse Arreguin’s important proposal to re-examine the City’s Rental Housing Safety Program to November 17.

Fixing this City program, which enforces safe and habitable rental housing, has been in the spotlight ever since the balcony collapse at Library Gardens, a building less than 10 years old. Activists and candidates have been talking for years about the need for the common-sense measures in Arreguin’s proposal – measures which most other cities already have!

Under the proposed revamp of the Rental Housing Safety Program, Berkeley inspectors would do proactive, cyclical inspections which would detect problems like the one at Library Gardens. Right now, inspectors only visit rental housing if there is a complaint. Right now, owners also know exactly which tenant made that complaint! This proposal would allow the name to remain confidential, so tenants would have less fear of retaliation.

Besides proactive inspections and confidential complaints, tweaks to the RHSP in Arreguin’s proposal would also make mold and mildew a public nuisance, and require landlords to actually turn in the self-inspection they are supposed to do each year.

These enhancements would be paid for mostly through increased fees and fines for those who do not correct violations within 30 days of being cited by code enforcement. The proposal also opens up the possibility of increasing the RHSP program fee from $26 to about $32 – that could pay for two new employees for the program.
see: http://www.ci.berkeley.ca.us/Clerk/City_Council/2015/10_Oct/Documents/2015-10-27_Item_30_Revising_the_Rental_Housing.aspx

Steps to Safe and Secure Housing In Berkeley Will Be Discussed at the
BTU MEMBERS MEETING
Thursday October 29

Council Voted to Send Letter About Costa-Hawkins

The good news is that the Council voted to send a letter to our State representatives calling for repeal of Costa-Hawkins. Berkeley joined several other rent-controlled California cities in asking for the return of a local city’s right to restrict rents. This would mean recent construction could be under rent control.
If the 1996 state law was repealed, Berkeley could also return to the form of rent control that voters selected and tenants enjoyed – the rent would always be regulated, and not be re-set when a new renter moves in. Repeal would also allow Berkeley to demand that when developers tear down rent controlled units, their new units would also be rent controlled. However, Governor Brown is not likely to sign any such repeal, so this might be a long-term effort and the letter a token gesture.

Worthington’s Measures Postponed to December 1

City Manager Referral: Streamline the Permit Process for Housing Projects with a Majority or More Affordable Units
Recommendation: Refer to City Manager to create an ordinance that will streamline the permit process for housing projects with a majority or more affordable units if it includes at least 20 percent of units at 50% AMI.
Housing Trust Fund Loan for $1,000,000
Recommendation: Loan $1,000,000 to the Housing Trust Fund.
Match All National Housing Trust Fund Grants Awarded to Recipient Projects in Berkeley
Recommendation: Adopt a Resolution to match all National Housing Trust Fund (NHTF) grants awarded to recipient projects in Berkeley.

Sierra Club Letter: Sierra Club 10-27 Berkeley City Council Items on Affordable Housing

East Bay Express Coverage Before the Meeting: http://www.eastbayexpress.com/SevenDays/archives/2015/10/16/facing-the-housing-crisis-berkeley-and-emeryville-lawmakers-are-advancing-numerous-solutions-but-not-oakland

Droste Parking Spaces Measure Passes

Newbie Councilwoman Lori Droste had her first major victory when the City Council approved her suggestions that Berkeley cut down on parking requirements for new developers but dedicate the cost savings to more units for lower-incomes. The items didn’t have enough detail for Berkley Tenants Union to take a position regarding them before the October 27 meeting.
Droste emphasized that her package was deliberately broad-brush, so that city staff could exercise freedom and creativity in working out the details.” http://www.berkeleyside.com/2015/10/28/green-housing-package-sails-through-berkeley-council/
“Some council members, however, were worried that the money saved through the provisions would not find its way to affordable housing in the city.”
http://www.dailycal.org/2015/10/28/berkeley-city-council-approves-item-to-convert-parking-spaces-into-housing/
Not everyone was happy with the proposal:
http://www.berkeleydailyplanet.com/issue/2015-10-23/article/43833?headline=The-Berkeley-City-Council-Hopes-for-Housing-Opinion—Steve-Martinot
Includes a List of Postponed Items:
http://www.mercurynews.com/ci_29035896/berkeley-council-endorses-green-affordable-housing-package

File Oct 14, 8 58 41 PMGreat Summary of the Short Term Rentals Issue
Almost everyone agrees that there’s nothing wrong with renting out a spare bedroom to travelers, and there’s not even much harm in renting your entire house for a month or two if you’re on vacation and would like to earn a little extra income. But what was once a small, on-the-margins practice of occasionally sharing one’s home with travelers for a few bucks has morphed into a behemoth and avaricious global marketplace for transforming residential housing into hotels… It’s harming renters; it’s helping drive up the cost of rental housing by taking homes and apartments off the rental market; and it’s upending the character of neighborhoods.”
http://www.eastbayexpress.com/oakland/turning-housing-into-hotels/Content?oid=4499687

Housing Advisory Commission on Vacation Rentals
The commission passed six proposals that are in accordance with seven of nine guidelines referred to it by Berkeley City Council. It chose to take no action on whether a unit may be rented for more than 90 days without a host present or how to penalize hosts for regulation violations.”
http://www.dailycal.org/2015/10/04/housing-advisory-commission-makes-short-term-rent-recommendations/

Students Suffer In Housing Crunch
UC Berkeley’s alumni magazine covered the student housing crisis – but failed to note that it’s folks renting out housing on Airbnb that is taking away permanent homes and contributing to making housing more expensive for all!
“Radio producer Liza Veale has been using Airbnb, the short-term rental company, to rent out three rooms in her parent’s Elmwood home for the past three years. It’s one of a reported 1,162 Airbnb units in Berkeley. At first, she didn’t understand why so many students were renting out a room for roughly $1,000 a month.”
http://alumni.berkeley.edu/california-magazine/just-in/2015-10-14/crammed-berkeleys-housing-zone-students-get-creative-and

Berkeley’s Short Term Rentals law is expected to be discussed at the planning commission on November 4.

San Francisco’s Prop F – “The Airbnb Law”
BTU has endorsed San Francisco’s Prop F. We hope our City makes a law that can, and will, be enforced – so we don’t have to do a ballot measure here!
“Senator Dianne Feinstein, a fierce foe for Airbnb and its ilk, is in favor of Prop F., which “closes loopholes and provides effective enforcement tools.” She said the current law is unworkable and unenforceable, and guts zoning regulations while incentivizing “illegal conversion of residences to de facto hotel rooms.” She said, classifying Prop F. as a “common sense change.”
http://sfist.com/2015/08/31/sue_thy_neighbor_airbnb_prop_f_and.php

“Current law requires hosts to register with the city, but only 618 have done so, the planning department said. Airbnb has 4,238 local hosts with 5,459 listings, while HomeAway/VRBO has about 1,000 listings and FlipKey has 359, a Chronicle investigation found.”
http://www.sfgate.com/business/article/Would-SF-Prop-F-spur-Airbnb-suits-with-neighbor-6472468.php

Berkeley Seismic Retrofits: Cup Half Full?
The retrofitted buildings, which number 145 at latest count, account for 1,591, or just under half, of the 2,841 apartments in buildings identified as particularly vulnerable to earthquakes.”
http://www.contracostatimes.com/breaking-news/ci_28930420/berkeley-more-than-half-soft-story-buildings-retrofitted

San Francisco and Los Angeles Retrofits
San Francisco plans to allow rent increases to pay for retrofits. So far, Berkeley hasn’t done that. Los Angeles plans to require retrofit of concrete buildings as well as soft story ones – Berkeley hasn’t done that either.
http://www.latimes.com/local/lanow/la-me-ln-quake-san-francisco-20151006-htmlstory.html

Foreclosure Crisis Not Over
“…
The California State Teachers Retirement System (CalSTRS) confirmed that the pension fund invested $660 million in two different funds managed by Lone Star, and that the company has used the money to buy up distressed home loans, foreclose on the homeowners, and resell the homes.”
http://m.eastbayexpress.com/oakland/california-teachers-have-been-financing-evictions/Content?oid=4526962

IMG_1151The Berkeley Rent Board won an important case regarding eviction threats and OMI evictions where the owner never moved in. The California Court of Appeal supported the Berkeley regulation that resets rent for new tenants at the lower controlled rent if the previous tenant moved within a year of getting an Owner Move-In notice.

In this case, a tenant who rented at 1807 Addison for 28 years and had refused informal requests to move finally got a formal eviction notice, so she made a deal, got some money, and moved. Then the owner rescinded the OMI notice. The tenants who moved in challenged their rent – which was more than double the old rent – under regulation 1016.

The regulation addresses withdrawn eviction notices for owner occupancy and states, “…if the tenant vacates within one year of the date of service of the notice, the tenancy is presumed to have been terminated by the owner as a result of the notice. The rental rate for the next tenancy established in the vacated unit shall be no more than the maximum allowed under the Rent Ordinance for the tenant who vacated.”

The Rent Board called the court decision a “victory for local control at a time when gentrification purges valued members of our community.” The Court referred to the landlord Jason Mak’s gambit as “subterfuge.”

Rent Board Press Release:
“The court ruled that when a landlord uses an eviction notice as “negotiating leverage” to secure an agreement that the tenant would “voluntarily vacate” the unit, the tenant did not actually vacate voluntarily.”
Mak press release (9-8-15)

Court Decision:
“The finding that the tenancy was terminated pursuant to the termination notice can hardly be questioned, notwithstanding the attempt to mischaracterize the situation in the agreement that Burns agreed to sign. Maintaining the rent level of the former tenant is a rational and proportional deterrent to the use of such an artifice in the future.
Mak Omi decision reg 1016

In the Papers:
http://www.contracostatimes.com/breaking-news/ci_28777456/berkeley-court-finds-property-owner-made-false-made

Tenants In the News

Several of these stories were sent in by BTU members:

BERKELEY

Berkeley Owners Claim Elected Officials Don’t Represent Their Interests
http://www.dailycal.org/2015/07/06/property-owners-should-be-involved-in-shaping-berkeley-housing-policy/

Development: BARF Invited, Berkeley Tenants Not
http://www.contracostatimes.com/breaking-news/ci_28596764/berkeley-residents-wary-6-story-adeline-street-mixed

SAN FRANCISCO

Removal of Units From Housing Market
The Housing Balance Report shows the city added 6,559 affordable housing units between 2004 and 2014. But during the same period, 5,470 apartments were “removed from protected status” through a variety of “no fault” evictions allowed by state law.

http://www.sfgate.com/bayarea/article/S-F-rent-controlled-apartments-lost-as-fast-as-6380744.php

Vacation Rentals Struggle Continues in SF
Tired of relying on their Supervisors – who crafted a law that city staff explained was unenforceable, then weakened that law a few months later – tenants and hotel workers in SF have joined forces to write a ballot measure.
http://ballotpedia.org/City_of_San_Francisco_Initiative_to_Restrict_Short-Term_Rentals_%28November_2015%29

Chronicle does Five-part Series on Impact of Short Term Rentals
http://www.sfchronicle.com/airbnb-impact-san-francisco-2015/#1

CALIFORNIA

El Cerrito: Low Income Renters Displaced at RV Park
http://www.eastbayexpress.com/oakland/low-income-tenants-to-be-directly-displaced-by-development-in-el-cerrito/Content?oid=4402578

Healdsburg Continues Ban on Airbnb
And why isn’t this a no-brainer for Berkeley’s Planning Commission too?
The City Council took little time Monday evening in unanimously upholding a ban on vacation rentals in residential areas, mainly in an effort to preserve the city’s housing for residents and workers — not visitors. “Anything that takes away from potential long-term rental stock is a non-starter,” said Mayor Shaun McCaffery, noting that the lack of affordable housing has risen to the top of the civic agenda with a recent wave of escalating rents and evictions of low-income tenants.”
http://www.pressdemocrat.com/news/4353074-181/healdsburg-reaffirms-ban-on-vacation

Sacramento Looking into Vacation Rentals
Sacramento is considering allowing landlords to rent out homes or rooms up to 30 days a year.”
http://www.bizjournals.com/sacramento/news/2015/08/13/how-sacramento-s-airbnb-proposal-stacks-up.html

IMG_shirtBerkeley Tenants Union will hold our quarterly member potluck on Wednesday July 8th. There will be free tenant counseling from 6:30 to 7:30 PM, updates on demolitions and short term rentals regulations, and a roundtable discussion about enforcement of safety and habitability concerns for tenants.

Demolition Decision Sets Bad Precedents

Learn more about what happened at the Zoning Board at our quarterly member potluck on July 8th.

ZAB Grants Demolition…
“Some speakers at the meeting were concerned that the owner of the building deliberately worsened its condition in order to get approval for its demolition. John Selawsky, a substitute for Sophie Hahn and the only ZAB member to vote no on the use permit, said the building showed signs of deliberate neglect. Cliff Orloff, managing partner of developer OPHCA LLC, agreed to let the Berkeley Fire Department conduct training exercises in the building in 2014.”
http://www.dailycal.org/2015/06/26/zoning-adjustments-board-approves-student-housing-complex-on-durant-avenue/

Despite Strong Public Protest
“Earlier this week, in an email regarding the project, a UC Berkeley student who said she used to live at 2631 Durant said tenants had been required by the owner to move out by a certain date, and that conditions had been poor.“When I was signing my lease I was told that I was signing under the condition that I would move out on May 31, 2014. We were told that the building was going to be torn down and developed,” wrote Nicole Yeghiazarian.
“The building was kept in awful shape because they did not want us to stay. When I moved into my apartment, there was mold. The kitchen was filthy with food stains around the stove.… Other tenants I talked to had similar complaints of conditions inside and outside of their units being dilapidated. It really felt like they were doing the bare minimum to not be sued, but wanted to make our conditions unpleasant enough that we would move out.” Added local resident Tree Fitzpatrick, in an email to the zoning board, “To grant this project as requested is to condone demolition by neglect.”
http://www.berkeleyside.com/2015/06/25/berkeley-zoning-board-to-consider-demolition-on-durant/

Short Term Rentals

We have heard that legal service providers like the East Bay Community Law Center are seeing more attempted evictions for renters who sublet for the short term on services like Airbnb. Currently, the Berkeley proposal to legalize such rentals may allow renters to sublet this way as long as the place is their home. But that doesn’t mean doing so won’t be a violation of their lease – it depends on the agreement. Renters should read the fine print, and remember the Rent Ordinance prohibits charging more than a prorated portion of the controlled rent.
Below is the document some folks currently violating Berkeley’s ban on such rentals are presenting to the Planning Commission, who will hold a hearing soon regarding the potential new laws and taxes in Berkeley.
We have just a few corrections: Regulations are not “being passed” – the current prohibition is being lifted for some users. Therefore, the number of short term rentals will not be “cut,” and no law-abiding citizens will see their “livelihood” impacted. These new regulations will not reduce any legal income, they will only legalize a currently illegal activity for some but not all users. It’s like saying the pot dealer on the corner is going to be put out of business by the legalization of medical marijuana!
2015-07-01_Communications_Berkeley Home Sharers_Recommendation on Revisions

Landlords Favor Allowing Hotels Anywhere, Unless Run By A Renter
Sid Lakireddy, president of the Berkeley Property Owners Association, said he doesn’t think the use of Airbnb among tenants is widespread. Lakireddy believes that property owners should be allowed to use Airbnb, but not tenants.
“It’s a lot of work for a property owner to do Airbnb, and if they feel like they can make more doing it, I don’t think we should stop them,” he said. “If a tenant is doing it, that’s wrong because they’re using somebody else’s property to make a profit.”
http://www.dailycal.org/2015/06/21/city-considers-lifting-restrictions-on-short-term-rentals-while-practice-abounds/

Council Passes Referral Designed to Protect Rental Housing Stock
“The proposal, introduced by Mayor Tom Bates and Councilmember Lori Droste, would legalize rentals not exceeding 14 consecutive days and would tax hosts in the same way as hotels. Under the proposed regulations, the property must be occupied by the owner or tenant for at least nine months of the year and can be rented out no more than 90 days if the host is not present.”
http://www.dailycal.org/2015/06/25/city-council-refers-short-term-rentals-proposal-planning-housing-advisory-commissions/

San Francisco Hires 6 to Crack Down on Illegal Hotels
http://www.bizjournals.com/sanfrancisco/morning_call/2015/07/san-francisco-airbnb-law-enforcement-office-hosts.html

Paris Neighborhood Had More Airbnb Guests Than Actual Residents
During summer 2014, 66,320 people stayed on Airbnb in the neighborhood’s two arrondissements, slightly more than the 64,795 who actually live in them, according to 2012 figures. The popularity of tourist rentals also made it a target of French housing inspectors. In May, inspectors made surprise early-morning inspections that turned up roughly 100 potentially illegal apartments.”
http://graphics.wsj.com/how-airbnb-is-taking-over-paris/

Balcony Collapse Highlights Problems with Code Enforcement

Code enforcement complaints and missing inspection forms at Library Gardens highlight the need to revamp Berkeley’s Rental Housing Safety Program. Currently, the program is a little meaningless. Landlords have to pay a fee and do inspections each year, but they don’t have to turn in the forms to the City. Issues about inspections and habitability will be the topic of a BTU member roundtable at our quarterly meeting on July 8th.

Missing Inspection Forms at Library Gardens
Prior to July 1st, city officials say Greystar provided the wrong inspection records, failing to use the form required by the city. In a letter to Greystar, the city noted that the self-inspections were also missing required signatures and dates.”
http://wn.ktvu.com/story/29458314/2-investigates-missing-incomplete-safety-inspections-after-berkeley-balcony-collapse

Mayor Says New Housing Is Safe
“Berkeley code enforcement inspectors might not have been previously aware of Library Gardens’ failure to perform safety inspections. Those records are not required to be filed with the city unless a code inspector asks for them. Bates said it was unreasonable to mandate increased city inspection of rentals, given the city’s budget, but believed newer apartment buildings are not apt to present many hazards”.
http://www.latimes.com/local/lanow/la-me-ln-balcony-inspection-report-20150629-story.html

Balcony Collapse Spotlights Dry Rot
Yes, but when will they realize we need to inspect more than just balconies?
“In Berkeley, officials recognized this gap in oversight and a week after the balcony disaster called for a mandate on building owners to inspect balcony supports at least once every five years. State officials are considering whether the balcony collapse demands a broader fix.”
http://www.latimes.com/local/california/la-me-balcony-dry-rot-20150626-story.html

Criminal Investigation
“As reported by the San Francisco Chronicle, the investigation will likely focus on Segue Construction Inc. — the company responsible for constructing the building — and on R. Brothers Inc., the company responsible for waterproofing the balcony’s wooden support beams. Several lawsuits throughout the Bay Area involving allegations of water penetration due to faulty waterproofing have been filed against Segue in the past.”
http://www.dailycal.org/2015/06/25/alameda-county-lead-criminal-investigation-berkeley-balcony-collapse/

From Other BTU Members:

Supreme Court on Fair Housing
From a BTU Member: I think that the Court’s decision on the Fair Housing Act is more important, insofar as it established the “disparate treatment” standard.  This is a significant victory for tenants and housing rights advocates.  It will now be much harder to defend discrimination and segregation in housing and other areas on the basis that it was not intentional.
http://feminist.org/blog/index.php/2015/06/25/the-supreme-court-fair-housing-ruling-is-a-civil-rights-victory/

And In Other News:

Demolitions, Ellis Act Plague Los Angeles Renters
http://www.latimes.com/opinion/op-ed/la-oe-0609-gross-housing-ellis-act-20150609-story.html

Cal Student Plagued by Pests
http://www.dailycal.org/2015/06/10/off-the-beat-on-renting-and-raccoons/