Tag: displacement

By Posted on Posted in Issues

The Trouble With AirBnB

The owner of 3100 College lists 11 Berkeley apartments on AirBnB.
The owner of 3100 College lists 11 Berkeley apartments on AirBnB.

The Berkeley City Council will begin the process of legalizing short-term rentals.

Right now, Berkeley law prohibits residential rentals of less than 14 days, according to a March 18 Planning Department staff report. However, over one thousand such rentals are listed on hosting platform Airbnb in Berkeley. The City plans to legalize these rentals in some form, and collect the hotel tax from them.

The Berkeley Rent Board has identified three issues with potential short term rentals regulations in a letter they are sending to the City Council: the loss of rental housing, adequate enforcement of new laws, and preservation of existing rights for tenants. “Allowing unlimited short-term rentals or creating regulations that lack enforcement will contribute to the housing crisis in Berkeley,” they said.

Meanwhile, Berkeley’s code inspectors don’t seem to be enforcing the existing prohibition. Two Berkeley Tenants who have been to code enforcement have been told different things. A few months ago, a tenant who lives beneath a vacation rental was told at the counter that “it’s illegal but there is nothing you can do about it.” Another Berkeley Tenant who lives next door to such a rental spoke to code enforcement last week and was told it is hard to find evidence of the rentals. Meanwhile, San Francisco fined one landlord $276,000 for evicting tenants with the Ellis Act and then renting to tourists on VRBO.

The central question in the local debate seems to be how to limit short-term rentals of rent controlled units, particularly in owner-occupied, smaller buildings. The Rent Board letter says that such rentals could still have a big impact on available rental housing, and cites a chart from the Housing Element which shows 21% of all Berkeley housing is in 2-4 unit buildings. It seems that the Rent Board is discussing rentals of empty units like hotel rooms, not homes where the occupant is away on their own vacation. BTU has identified a handful of large landlords renting five or even ten units to tourists all year round, and is examining Santa Monica’s new law as a model, since that town has rental control rules similar to the Berkeley laws on rental units.

If you are a tenant who has been displaced – and replaced – by a tourist rental, contact BTU. We are also looking for more tenants who can no longer relax at home because the unit next to them has been turned into a hotel.

The City Council is expected to discuss a framework for regulations, then refer the issue to the Housing and Planning Commissions, as early as May 26.

IMPORTANT DATES

Thursday May 21 @ 10 AM
4×4 Committee (Rent Board/City Council)
2001 Center Street
Rent Stabilization Program’s Law Library, 2nd floor
http://www.ci.berkeley.ca.us/Clerk/Home/4x4_Committee_Homepage.aspx

Tuesday May 26 @ 7 PM
City Council Meeting
2134 Martin Luther King Jr. Way
ITEMS 19 and 21
http://www.ci.berkeley.ca.us/Clerk/City_Council/2015/05_May/City_Council__05-26-2015_-_Regular_Meeting_Agenda.aspx

LINKS

March 18 Staff Report to Planning Commission:
http://www.ci.berkeley.ca.us/Clerk/Commissions/Commissions__Planning_Commission_Homepage.aspx

Berkeley Rent Board Letter to City Council (Item 4):
http://www.cityofberkeley.info/Rent_Stabilization_Board/Home/Agenda__RSB_2015_May_11.aspx

San Francisco City Attorney Sues Landlords Over Short-Term Rentals
“Illegal conversions that push long-term tenants out of their homes diminish the availability of residential rental units for San Franciscans, and they’re a significant contributor to our housing affordability crisis,” Herrera said. …The City Attorney’s Office suspects that the Lees aren’t the only landlords flouting state and city laws in that fashion, and is eager to pursue other cases like this one. Folks who want to report violations like the Lees’ are encouraged to contact the City Attorney’s code enforcement hotline.”
http://sfist.com/2015/05/07/landlords_who_evicted_tenants_to_ma_1.php

“Also last year, Herrera filed a similar case against landlords in North Beach. That case settled in January with the landlords paying $115,000 in penalties and agreeing to a similar injunction.”
http://www.sfgate.com/business/article/Landlords-fined-for-evicting-tenants-to-make-a-6246550.php

Santa Monica Bans Short Term Rentals of Whole Units
“Santa Monica has taken one of the strongest stances of any city against the practice of professional landlords hoarding all their properties for tourists instead of for actual renters, keeping housing off an already crunched and expensive market. Full-unit rentals account for the overwhelming majority of the listings on Airbnb in Los Angeles, and for nearly all of the listings that actually make money.”
http://la.curbed.com/archives/2015/05/santa_monica_just_banned_airbnbs_biggest_moneymakers.php

By Posted on Posted in Issues
The Planning Commission will be discussing Vacation Rentals on March 18, 2015!

SF’s New Vacation Rental Law Making Everyone Unhappy
http://www.triplepundit.com/2014/10/san-francisco-airbnb-wins-vacation-renters-lose/?doing_wp_cron=1425914928.0972390174865722656250
“Residents were previously restricted from renting out their homes for periods of less than 30 days, according to a law that the city said protected housing rates and helped to regulate property rentals. The new law allows residents who live in the city for a minimum of nine months of the year to rent out rooms or residences for short stays for up to 90 days of business per year….
The legislation, he said, was “easily subvertible” and encourages homeowners to try to find a way around the restrictions. “A person has to declare that it’s their permanent residence, and anyone can say that about any place [and] this invites people to do all sort of things and then say ‘come catch me,’” he told SFGate.”

SF Already Discussing Changes; Can Law Be Enforced?
http://www.sfexaminer.com/sanfrancisco/san-francisco-considers-revising-airbnb-law-to-help-enforcement/Content?oid=2922455
“But high-ranking city planning officials said there are loopholes in the current law that no amount of resources could fix. ”
“The department said that without cooperation from the host platforms, it can’t enforce the requirement that there be 90 days of unhosted stays — those where the resident is not at the rented unit — when there is no cap on hosted stays. There has also been concern about the low number of short-term hosts who have taken steps to register under the law. Sixty residents successfully applied and received registration numbers, which are required to be included in the host’s listings on websites like Airbnb. But there are an estimated thousands of other listings that remain illegal.
Sanchez said the department is “frustrated” that hundreds turned out to support the law’s adoption but there hasn’t been the same turnout to comply with it.”

SF City Attorney Sues Two Landlords
http://www.sfgate.com/bayarea/article/S-F-city-attorney-sues-2-landlords-over-5425826.php
“Illegal short-term rental conversions of our scarce residential housing stock” are contributing to “a housing crisis of historic proportions,” Herrera said in a statement.
To illustrate, the suits cited the proliferation of short-term vacation rentals in San Francisco advertised on popular websites: 6,225 on Airbnb, 1,413 on VRBO and 1,351 on HomeAway, VRBO’s parent company.”

SF Tenant Advocates Sue Two Vacation Rental Firms
http://www.sfexaminer.com/sanfrancisco/housing-rights-committee-lawsuit-alleges-vrbo-homeaway-violating-sf-laws/Content?oid=2918721
“The legal action comes a day after The City’s Short-Term Residential Rental Ordinance legalizing home rentals for periods of less than 30 days went into effect. Hooshmand said the new legislation allowing property owners or tenants to rent space short-term if they meet specific criteria will not rectify the various allegations against VRBO and HomeAway.
The new legislation, according to the Committee’s Executive Director Sara Shortt, does not include a strong enforcement mechanism and “actually gives us all the more resolve to put the brakes – in this case through litigation – because the new rules are not going to adequately protect tenants from displacement due to the short-term rentals industry.”

SF Sued by HomeAway – New Law Too Strict
http://www.washingtontimes.com/news/2014/nov/5/homeaway-sues-san-francisco-over-airbnb-law/
“The lawsuit filed Monday by HomeAway says the law stymies competition and discriminates against both vacation hosts by requiring them to be city residents and vacation-website companies by mandating they collect the city’s 14 percent hotel taxes….”

Even Senator Diane Feinstein Opposes SF Law
http://www.sfgate.com/opinion/openforum/article/Don-t-hand-San-Francisco-over-to-Airbnb-5835325.php
“This is a shortsighted action that would destroy the integrity of zoning throughout San Francisco, allowing commercial and hotel use in residential areas throughout the city.”

SF’s Current Vacation Rental Law – Overview
http://www.sf-planning.org/index.aspx?page=4004

San Diego Begins Revision of Codes for Vacation Rentals
http://www.utsandiego.com/news/2015/mar/08/airbnb-vacation-rental-growth-causing-confusion/
“In San Diego, the regulations that come closest to encompassing short-term rentals are those governing bed-and-breakfasts where residents are renting out one or more rooms in a house in which they are living. In those cases, special permits are needed that require owners to notify surrounding neighbors.”

New York State Bans Most Short-Term Rentals
http://www.nycinsiderguide.com/nyc-vacation-rentals#.VP5CQ44lRzp
“The short of it, is that unless the Landlord owns the entire building, it is illegal to rent or sublet a co-op, condo or apartment for stays less than 30 days. In 2010, the NY State Governor passed a bill and NYC plans to crack down on this law.”

NY City Council Considers Innovative Enforcement
http://town-village.com/2015/03/10/mendez-bill-would-make-illegal-hotels-a-form-of-tenant-harassment/
“(Short-term renters) are coming in at all hours, bringing people they meet into the apartment and it’s then impacting the quality of life, in that there are strangers in their building,” Mendez said. “It’s a breach of peace and quiet in your home because of the noise and people traffic.”
Governor Andrew Cuomo, Schneiderman and Mayor Bill de Blasio announced the launch of a joint enforcement task force last week called the Tenant Harassment Prevention Task Force that will investigate and bring enforcement actions against landlords who harass tenants. Under Lancman and Mendez’s tenant harassment bill, illegal hotel conversions would be included in that definition of harassment. It would fall under the jurisdiction of the task force and would be subject to its investigations and enforcement actions.”

NY City Council Discusses Enforcement, Housing Crisis
http://www.nytimes.com/2015/01/21/nyregion/hearing-pits-tenants-who-denounce-airbnb-against-those-who-profit-from-it.html?_r=0
“At the hearing on Tuesday, which focused on Airbnb, members of the City Council took turns fuming over what they called a reckless enterprise that put neighborhoods in jeopardy and sapped an already-weak affordable housing market. Speaking before a crowd of hundreds who waved placards reading “My Home Is Not a Hotel,” they variously compared Airbnb to a “marauding army” and an “epidemic.”
“No one should have to live in a building or next to someone where the apartment is being used as an illegal hotel, people coming and going, traipsing in and out, no idea who they are,” Councilman Corey Johnson, a Democrat from Manhattan, said.
The hearing, which focused on how the city enforced a state law barring people from renting an apartment for under 30 days unless the apartment’s resident also stays there, grew into a wide-ranging face-off between two groups of city residents who each said they were being battered by the growing cost of housing.”

Guardian Summary of the Debate on Vacation Rentals
http://www.theguardian.com/travel/2014/jul/08/airbnb-legal-troubles-what-are-the-issues
“While the heat is on in Barcelona – where Airbnb have just been fined €30,000 for breaching local tourism laws – the company is also under attack in a growing number of other cities. In New York it is currently in the midst of a prolonged legal dispute with the attorney general, while authorities in San Francisco, New Orleans, Malibu and other US cities are also mounting crackdowns. In Berlin – where Airbnb has been partly blamed for increasing rents – city officials have created a new housing law banning regular short-term letting of rooms without permission from the authorities, something that could have a big impact on the number of Airbnb hosts in the city.”

Spain Makes Nationwide Law
http://www.spain-holiday.com/rentalbuzz/dispelling-the-myths-about-holiday-rental-licences-in-spain
“In the UK you could not rent your home out as a furnished holiday let without meeting set standards in safety and cleanliness, and declaring your earnings to the tax man. And this is essentially what the new law in Spain sets out to do.”

Barcelona Suspends New Licenses
http://www.spain-holiday.com/rentalbuzz/barcelona-suspends-the-issue-of-further-holiday-rental-licences-for-six-months
“…the rights of local residents were being undermined and community life was suffering, due to the volumes of tourist apartments springing up in local neighbourhoods.”

Paris Actually Enforces Vacation Rental Laws
http://www.bloomberg.com/news/articles/2014-08-07/paris-airbnb-cops-want-to-know-if-you-re-rental-is-legal
“As in New York and Barcelona, officials in the French capital say companies such as Airbnb Inc. have spawned a cottage industry of scofflaw landlords who are cheating citizens out of housing and depriving localities of much-needed revenue from the growth in international travel.
Paris Mayor Anne Hidalgo has a 20-person team making unannounced visits to apartments whose owners are suspected of, or turned in by nosy neighbors for, unlawfully renting to visitors.”

By Posted on Posted in Actions
BTU at the Farmers Market
BTU at the Farmers Market

Saturday May 10 will be the last day to sign the citizens initiatives from the Robin Hood Committee at the Berkeley Tenants Union table at the Center Street Farmers Market.

The Windfall Profits Tax on High Rents will increase the business license tax on landlord investors and speculators by 1.9% – the ballot measure will not raise the tax on single family homes, duplexes, and landlords who live in the building and own less than ten units. The increase will not apply to units rented under Section 8 and the measure would eliminate the existing tax on rents from long-term rent-controlled units. This is a tax designed to capture a small portion of the $100 Million a Year in excess profits that investors take from Berkeley renters, and put that 1.9% to use for our most vulnerable citizens.

The Affordable Housing measure addresses the top concern on the recent Community Survey: Berkeley needs to build more affordable housing. This companion measure takes $3.5 million of the Windfall Profits Tax and dedicates it to the Housing Trust Fund. The fund is used by the city, housing developers like Satellite and RCD, limited equity co-ops and student co-ops. The portion of the money from the Windfall Profits Tax dedicated to affordable housing is expect to generate 40 units of Affordable Housing a year for Berkeley.

The Robin Hood measures have been endorsed by BTU Steering, as well as The Green Party of Alameda County, Berkeley Citizen Action (BCA), East Bay Housing Organizations (EBHO), Satellite Affordable Housing, Resources for Community Development (RCD), Bay Area Community Land Trust (BACLT), Democratic Socialists of America, Council Members Jesse Arreguin, Kriss Worthington and Max Anderson, Rent Board Chair Lisa Stephens, Vice Chair Harr, Rent Board Commissioners Soto-Vigil, Webster, Shelton, Blake, Dodsworth and Townley, Housing Advisory Commissioners Darrow and Tregub, former School Board leader John T. Selawsky and many more.

Full text of the measures: http://www.fundaffordablehousing.org/

Transfer of wealth from tenants to investors: https://www.cityofberkeley.info/uploadedFiles/Rent_Stabilization_Board/Level_3_-_General/Economic%20Effects%20of%20Rent%20Stabilization%20in%20Berkeley_Cleancopy.pdf

By Posted on Posted in Issues
Photo courtesy https://www.flickr.com/photos/andscene/
Photo courtesy https://www.flickr.com/photos/andscene/

Robin Hood Committee Aims to Tax Landlords and Fund Affordable Housing
The city’s landlords charge high rents and gain free money simply by their Berkeley location. The public makes Berkeley property valuable “by investing in the university, parks, transit, and through all their economic, cultural and social activities,” Barton told the City Council at an April 1 meeting.
http://www.contracostatimes.com/breaking-news/ci_25580122/berkeley-initiatives-would-tax-landlords-create-redistricting-panel

Volunteer to help Robin Hood fund affordable housing by calling 510-585-FAH1 

Berkeley Rent Board Invites League of Women Voters
…extending this invitation specifically to the League in response to your letter of November 7, 2013. The letter contains a great number of inaccuracies and misconceptions regarding the current functions of the Rent Stabilization Program, our budget and the appropriateness of the current registration fee.
http://www.berkeleydailyplanet.com/issue/2014-04-18/article/42024?headline=An-Open-Letter-to-the-League-of-Women-Voters-from-Lisa-Stephens-Chair-of-the-Berkeley-Rent-Stabilization-Board–From-Lisa-Stephens-Chair-Berkeley-Rent-Stabilization-Board

Redistricting Referendum Panics Council Majority, City Sues Itself
The city’s lawsuit, filed April 3, names county registrar Tim Dupuis and city clerk Mark Numainville as defendants, along with nine others who are listed as “real parties of interest”: council members Worthington, Arreguín and Anderson, as well as Stefan Elgstrand, Paul Kealoha Blake, Matthew Lewis, Stephanie Miyashiro, Phoebe Sorgen and Alejandro Soto-Vigil.
http://www.berkeleyside.com/2014/04/09/city-of-berkeley-heads-to-court-over-redistricting-lines/

By Posted on Posted in Issues

Doorbells

Redistricting Referendum: Tuesday February 25
The referendum passed, with over 150 volunteers collecting 7,500 signatures over the holidays. Now, the Referendum Coalition needs support at the City Council meeting Tuesday February 25. If you can’t attend, please email Clerk@cityofberkeley.info to support ITEM 21b: “Choose an Alternate Redistricting Map, not a Special Election.” (A Special Election is recommended in Item 21a from the City Manager.)
Item 21b:
http://www.ci.berkeley.ca.us/Clerk/City_Council/2014/02_Feb/City_Council__02-25-2014_-_Regular_Meeting_Agenda.aspx
Referendum in the news:
http://blog.sfgate.com/stew/2014/02/10/berkeley-voters-overturn-gerrymandering/

Demolition Ordinance
The City Council seems to have put bad changes to the demo ordinance on the back burner. However, some buildings may still have Zoning hearings under the old rules, which include an anti-tenant interpretation by the City Attorney. We will keep you posted.
Berkeley Neighborhoods Council:http://www.berkeleyneighborhoodscouncil.com/Newsletters/2014/Issue5/BNC_eNEWS_5_NHF5.htm
Demolishing older, affordable rentals to replace with luxury apartments is a national trend:
http://www.bloomberg.com/news/2014-01-13/demolitions-dire-for-poor-as-affordable-rent-gap-grows-economy.html

Tenant Sues over Eviction for Air BnB
“…case highlights an ongoing issue of Airbnb and other sites that allow people to rent out spare rooms or entire apartments to temporary visitors. Critics charge that the new sharing-economy services are so lucrative – and so laxly regulated – that they are forcing out residents and driving up rents by reducing the supply of available housing.”
Airbnb profits prompted S.F (PDF)

Rich People Say the Darndest Things
“The problem is that the world and this country should not talk about envy of the 1 percent. It should talk about emulating the 1 percent,” he said. “The 1 percent work harder. The 1 percent are much bigger factors in all forms of our society.” –Billionaire Sam Zell, who owns Equity Residential, now Berkeley’s Largest Landlord.
http://www.huffingtonpost.com/2014/02/05/sam-zell-1-percent_n_4733196.html

Consider the Source
“For moderates like Mayor Ed Lee, appearing to get tough on the Ellis Act is an easy way to address voter discontent about affordability without having to wade into more controversial issues like housing density and planning reform.”
http://www.modernluxury.com/san-francisco/story/the-eviction-crisis-wasnt

Class Action Lawsuit Against Central Valley’s Biggest Slumlord
“When repairs are made, the complaint alleges, they are merely cosmetic and fail to address the health and safety issues, and JD Homes often retaliates against tenants who complain to authorities.”
http://tenantstogether.org/article.php?id=2944

More on Tenant Displacement in San Francisco
“There’s 50,600 proposed units of housing coming to San Francisco. Approximately 27,000 of these housing units have already been approved by officials, with 6,100 currently under construction. Most of the housing being built is “market rate,” meaning that it’s priced for those who can afford to spend roughly $36,000 a year on rent…The tech boom has conspired with rising housing prices to create an incredibly profitable incentive for landlords to push out low-income tenants and replace them with wealthy buyers, in spite of all the new units coming to market.”
http://www.counterpunch.org/2014/02/13/san-franciscos-displacement-crisis/

By Posted on Posted in Issues

CIty Council Finally Making Seismic Retrofits the Law
http://www.dailycal.org/2013/11/20/city-property-owners-may-required-retrofit-seismically-unsafe-buildings/

Berkeley Backs Off Supporting Richmond, CA on Foreclosure Efforts
Item 32 for December 2nd was amended to remove references to joining
Richmond’s Joint Powers Authority, making the Council’s deliberations meaningless:
www.ci.berkeley.ca.us/Clerk/City_Council/2013/12Dec/Documents/2013-12-03_Item_32_Supporting_City_of_Richmond_-_Rev.aspx

LWV Directors Live in Berkeley’s Wealthiest Areas
LWV Directors Live in Berkeley’s Wealthiest Areas

Berkeley’s League of Women Voters tells Rent Board to Cut Staff, Services:
http://www.lwvbae.org/league-news/league-urges-rent-board-improvements/

San Francisco Holds Hearings on Evictions:
“Overall evictions in San Francisco rose from 1,242 to 1,716 over the past three years, he said, reflecting an increase of 38.2 percent. Ellis Act evictions rose by 169.8 percent in that same time frame.”
http://www.sfbg.com/2013/11/19/eviction-epidemic-spurs-legislative-solutions
http://www.sfbg.com/politics/2013/11/14/hundreds-attend-hearing-call-action-evictions

Even San Francisco’s Mayor Wants to Stop Ellis Act Evictions:
http://www.sfgate.com/bayarea/article/S-F-politicians-Restrict-Ellis-Act-evictions-4981974.php

Tenants Together has a Statewide Petition to Change the Ellis Act:
“…then real estate speculators starting abusing the Ellis Act to turn a quick profit by evicting long-term tenants and selling the units. Ellis Act evictions are now surging. In San Francisco and Los Angeles in particular, thousands of rent-controlled tenants are being displaced by Ellis Act evictions.” – and Berkeley could be next!
http://org2.salsalabs.com/o/5247/p/dia/action3/common/public/?action_KEY=15820

Banks “Securitize” Rents, Cause Concern:

http://www.sacbee.com/2013/11/21/5932043/wall-street-firm-sells-bonds-backed.html

http://www.salon.com/2013/11/06/wall_street_slumlords_outrageous_new_scheme_how_they_could_wreck_economy_again/

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/11/08/wall-street-figured-out-how-to-securitize-your-rent-should-you-worry/