Short-term rentals are more lucrative than permanent housing. Image courtesy of http://www.beyondchron.org
Short-term rentals are more lucrative than permanent housing. Image courtesy of http://www.beyondchron.org

Berkeley City Council Continues Discussion of Short Term Rentals Tuesday June 9th
7 PM @ Longfellow Middle School Auditorium, 1500 Derby

  • Please join BTU in supporting Councilmember Arreguin’s amendments to the Mayor’s proposal.
  • Ask that Council does not lift the ban on renting whole, empty units on Airbnb and other vacation platforms.
  • Say that we need rent controlled units and other empty apartments to be offered for Berkeley residents.
  • Ask the law be written so that it can be easily enforced!
  • Ask them to include the Rent Board in the referral so that the new law is in harmony with existing state and local laws on rental units.

Revised Council Item 32: 2015-06-09 Item 32 Short-Term Rental

Berkeleyside: Short Term Rentals
“The conversion of apartments into a short-term rentals, where guests come and go, is part of a trend that is sweeping Berkeley. While renting out apartments to anyone for less than 14 days is prohibited under Berkeley law, hundreds of homeowners are renting out rooms, suites, whole houses, cottages — even a tent and a yurt — according to listings posted on Airbnb, VRBO (Vacation Rentals by Owner), Home Away and other short-term rental websites… Property owners who rent out for short terms often stand to make a substantial amount of money, certainly more than if they rented month to month.”
http://www.berkeleyside.com/2015/05/26/short-term-rentals-are-squeezing-out-berkeley-renters/

Berkeley Tenants Union Public Comment
http://berkeleydailyplanet.com/issue/2015-06-05/article/43372?headline=The-Problem-with-Short-Term-Rentals-Perspective-of-Berkeley-Tenants-Union

State Won’t Force Airbnb to Share Information for Enforcement
Legislation aimed at forcing Airbnb Inc. and other short-term rental sites to ensure collection of local taxes stalled in the state Senate on Thursday.
SB 593 would have required short-term housing platforms to report quarterly to cities and counties the addresses that were rented out on their sites as well as the number of nights those properties were rented and for what prices. Local governments could have used the information to ensure transient occupancy taxes were paid and to ferret out vacation rentals operating in cities that bar them. The bill had the backing of various cities, hotel lobbies and organized labor. But Airbnb fought back against the proposed regulations, hiring its first contract lobbyist in Sacramento and rallying its users with emails and phone calls. The company, along with its allied tech lobbies and the Santa Monica group Consumer Watchdog, framed the debate as a battle over its customers’ privacy.”
http://www.therecorder.com/id=1202728452451/Airbnb-Bill-Halted-By-Lobby-Blitz?slreturn=20150505224830

Should New Backyard Cottages Be Allowed as Short Term Rentals?
http://www.berkeleyside.com/2015/03/25/officials-to-relax-rules-for-berkeley-granny-flats/

“Airbnb Will Probably Get You Evicted and Priced Out of the City”
“If you look at the economics of it, Airbnb is ruining your life. Or, at least, your chances at a lasting life in the city. In an attempt to make an extra buck, you may be slowly screwing yourself out of the market…Every unit that’s being used for illegal hotel activity is a unit that’s not on the residential housing market.”
https://news.vice.com/article/airbnb-will-probably-get-you-evicted-and-priced-out-of-the-city

In Other News

Fun Protest! Saturday June 6 @ 10 AM
“…To fly large red, black and white balloons, three feet in diameter, to a height of 194 feet, near the planned site of The Residences at Berkeley Plaza, also known by its street address 2211 Harold Way. The building would be 180 feet high — or 194 feet, with the addition of an elevator housing and other infrastructure on top.”
http://www.contracostatimes.com/breaking-news/ci_28244224/berkeley-activists-plan-visual-protest-downtown-proposal

Berkeley Rents Too Damn High
“The last time rents rose so crazily was 15 years ago during the last technology boom, and history seems to be repeating itself.” In 2000, the dotcom boom market, rents skyrocketed and now we are dealing with some of the same issues,” said Nick Traylor, a manager at the Berkeley Rent Stabilization Board. Some landlords are even increasing rents by $400 to $1,000 a month if they have a tenant vacate a unit, said Traylor. He stressed these substantial increases are on top of the already high market rates being charged to the previous tenant. Elaine Perkins, who runs the Cal Rentals office at UC Berkeley, said students are living in cramped conditions to afford decent accommodation.”
http://www.berkeleyside.com/2015/05/28/berkeley-rental-rates-skyrocket-causing-problems-for-students-and-those-on-middle-incomes/

German Rent Freeze; Berlin Rent Ceilings
“Berlin is limiting rent increases to 10 percent of average rents in neighborhoods suffering housing shortages. Landlords often jack up rents by as much as 40 percent to take advantage of well-heeled newcomers who are flocking to the city from the around the world, said Reiner Wild, managing director of the Berlin Tenants Association.
“The rent ceiling is very important for Berlin because the difference between the rent paid in existing contracts and new contracts is so high,” Wild told The Guardian.”
https://news.vice.com/article/berlin-imposes-rent-caps-as-worlds-most-desirable-cities-become-gated-communities
Law allowing rent controls on Berlin’s inner-city property prevents landlords charging new tenants more than 10 per cent above the local average
http://www.telegraph.co.uk/finance/property/news/11645625/berlin-rent-control-law-housing-crisis.html
“Berlin is pioneering the rent cap after the national parliament approved the law, aimed at areas with housing shortages, in March… “We don’t want a situation like in London or Paris,” said Wild. “The reality in Paris or London is that people with low income have to live in the further-out districts of the city.”
http://www.theguardian.com/world/2015/jun/01/rent-cap-legislation-in-force-berlin-germany

City Council continues discussion on #1 (Airbnb) on June 9.

 AirBnB in BerkeleyAirBnB in Berkeley

1) CHANGE Council Item 21: Short-Term Rental Regulations:
This Tuesday, Berkeley City Council will outline their directive for legalizing short-term rentals in Berkeley. Right now, rentals of less than 14 days are prohibited, but over 1,000 such illegal rentals are listed online.

Mayor Bates, who co-sponsored the item with new Councilperson Droste, assured Rent Board Commissioners at Thursday’s 4×4 Committee that his proposal will protect rent controlled units by continuing the ban on short-term rentals in unoccupied housing. The Mayor seemed surprised when Rent Board folks told him that about 400 rent controlled units were currently used only for vacation rentals, and that several large landlords are renting multiple units on Airbnb.

However, the Mayor and Councilman Capitelli were noncommittal when the Commissioners asked to be included in the Council referral and pointed out that proposals such as requiring the owner’s permission before a tenant rents their unit on Airbnb may conflict with state and local laws.

Councilman Arreguin and Rent Board Commissioners also raised the importance of enforcing the existing law and considering enforcement when creating the new law.

BTU is still formatting our position on the issue, which must have at least one public hearing at the Planning Commission before it becomes law, but we stand with the Rent Board in believing that short-term rentals are taking away needed housing.

We call for continuation of the ban on renting whole, empty apartments only for short stays. We need those homes for Berkeley students, Berkeley families, and Berkeley workers! We call for the elected Rent Board to be included in the process of making the new laws, and we call for enforcement of the existing laws when large landlords rent multiple units only for short term guests.

2) SUPPORT Council Item 19, State Short-Term Rentals Regulation:
The Council will also vote regarding support for a state bill which would compel hosting platforms like Home Away and Airbnb to share information with local governments. California Senate Bill 593, by McGuire and Leno, is essential to regulating vacation rentals.

3) SUPPORT Council Item 25: Amend the Housing Element
Councilmember Arreguin has introduced changes to the Housing Element that BTU members and friends called for at the Planning Commission in February, but City Council left out of the draft they approved. The proposal returns essential language about Berkeley values that was taken out of the Housing Element, such as, “Ensure rent control and/or other tenant protections for all tenants, including vulnerable populations,” and “All Berkeley residents should have access to decent housing at a range of prices and rents in pleasant neighborhoods that meet standards of quality.”
Most importantly, Arreguin’s amendments put back the priority that we should protect rent controlled housing from demolition and enforce those laws!

4) CHANGE Council Item 35, Community Benefits from Tall Buildings
Downtown developers must contribute more toward affordable housing.

TO LEARN MORE:

City Council Agenda
http://www.ci.berkeley.ca.us/Clerk/City_Council/2015/05_May/City_Council__05-26-2015_-_Regular_Meeting_Agenda.aspx

Rent Board on Short Term Rentals, Item 21:
“A summary of our major Rent Board concerns are as follows:
1) Loss of Housing: We hope that any Council policy recommendations to the Housing Advisory Commission and Planning Commission will focus on ensuring that whole units with kitchens that are not occupied by the host most of the year will remain available for permanent residents. Owners of multiple rental units in Berkeley should not be allowed to go into the hotel business.
2) Enforcement: Regulations must provide a workable enforcement mechanism with adequate funding and staffing. Penalties and remedies should be clear.
3) Tenants Rights: Berkeley’s new regulations must preserve rights tenants currently hold, such as the right to quiet enjoyment of their home as well as the right to sublet if they already hold that privilege. Council should include the Rent Board for input in their referral.”
Letter from the Rent Board regarding Short-Term Rentals

Text of the SB593 for Item 19: https://legiscan.com/CA/text/SB593/2015

Also on Item 19, SB 593: “This legislation is simple…It makes online vacation rental businesses follow local laws just like the rest of us.”  With concerns “about loud parties, traffic and other problems,” on the rise, this move could not come at a better time….If passed, Senate Bill 593 will help ensure short-term online rental companies follow some simple rules and regulations to preserve our neighborhoods, ensure consumer safety, and protect the well-being of longtime residents in communities across California.”
http://www.overnightoversight.com/ca-legislation-addresses-short-term-online-rental-concerns/

On Item 25, the Housing Element: https://www.berkeleytenants.org/?p=1195

On Item 35, Community Benefits from Downtown Buildings:
http://berkeleydailyplanet.com/issue/2015-05-22/article/43322?headline=Significant-Community-Benefits-an-open-letter-to-the-Berkeley-City-Council

In Other News

Thanks to BTU Members Who Sent in Most of These Stories

Windfall Profits Tax On High Rents (Fund Affordable Housing)
The only way off the treadmill is to build or buy housing that will be owned by non-profit organizations, land trusts and limited-equity cooperatives. And that takes money, a lot of money. So let’s tax the rising rents that increase the need for affordable housing in the first place.”
http://www.berkeleydailyplanet.com/issue/2015-05-22/article/43326?headline=Fund-Affordable-Housing-with-Windfall-Profits-Tax-on-Rising-Rents-News-Analysis—Stephen-Barton

Berkeley Development: Call for Moratorium on Luxury Construction
“…while the City is fully caught up and already ahead on its higher income units, we haven’t even made our quota for moderate or lower income units for 2006 yet. This makes the big push to build block after block of high rent homes and apartments unfathomable.”
http://www.berkeleydailyplanet.com/issue/2015-05-15/article/43314?headline=Berkeley-Needs-a-Moratorium-on-High-Rent-Units–Rhiannon 

California: Rents Go Up Fast, Income Goes Up Slow
“Since the end of 2010, rental prices have surged at nearly twice the pace of average hourly wages, according to data from the real estate firm Zillow and the Labor Department.
More than 30 percent of renters in California, Florida, New Jersey and New York state devote at least half their incomes to housing and utilities, according to the analysis.”
http://m.sfexaminer.com/sanfrancisco/1-in-4-us-renters-must-use-half-their-pay-for-housing-costs/Content?oid=2928601

California: Wall Street Invests in Single-Family Home Rentals
“California tenants renting single-family homes from the three biggest Wall Street landlords in the state, Blackstone/Invitation Homes, Waypoint Homes, and Colony American Homes, pay higher rents than their neighbors and face challenges getting repairs,” according to a new research report by Tenants Together.
http://org2.salsalabs.com/o/5247/p/salsa/web/common/public/signup?signup_page_KEY=9191

SF: Mission Renters in NY Times
“When a family in a rent-controlled apartment leaves or is forced out, the rent is jacked up to market rate, apartments become condominiums or are advertised by the landlord on Airbnb as a good place for short-term visits.”
http://mobile.nytimes.com/2015/05/23/us/high-rents-elbow-latinos-from-san-franciscos-mission-district.html

City of Alameda Considers Eviction Protections
“Advocates for local renters, who make up about half the Island’s population, have pressed for rent control and other protections. But at least three members of the council have questioned whether rent control would be an effective solution to renters’ woes, or whether the city should get involved in rents issues at all.”
http://thealamedan.org/news/rents-blog-just-cause-eviction

San Jose Renters Hold Rally
http://kron4.com/2015/05/13/activists-hold-rally-in-support-of-san-jose-renter-protections/

Lafayette Considers Rent Control or Rent Freeze May 26
“…City Council acknowledged that high rents are a problem all over the Bay Area, but also expressed sympathy for the renters, saying that 90% increases were “crazy” and “beyond the pale.”   In the end, the Council asked for more information from small towns similar to Lafayette that have adopted rent control or stabilization policies (such as Los Gatos).  It also asked the City Attorney to investigate whether the City could impose a temporary moratorium on rent increases.”
http://lovelafayette.org/Home/Components/News/News/966/18?backlist=%2Fhome

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

Rented building applying for demolition
Rented building applying for demolition

1) Rent Board Ad Hoc Committee:
Friday April 3rd @ 3 pm
Short-Term Rental Regulations
Side Entrance on Center Street @ Milvia

2) Zoning Hearing on Demolition:
Thursday April 9th @ 7 pm
Rent Controlled Triplex 1920 10th Street, UP #2007-0063
2134 Martin Luther King, Jr. Way @ Allston

3) Planning Commission:
Wednesday April 15 @ 7 pm
Short-Term Rental Regulations
Edit: vacation rentals not on this agenda
1901 Hearst Ave @ MLK

4) Zoning Board:
Thursday May 14 @ 7 pm
Removing Rent Control at 2332 Channing to add 3 units.
2134 Martin Luther King, Jr. Way @ Allston

5) Affordable Housing Week: May 8-17, 2015
East Bay Housing Organizations (EBHO)
http://ebho.org/our-work/affordable-housing-week#ahw

In Other News

Thanks to BTU Members Who Sent in Most of These Stories

The Windfall Profits Tax on High Rents (Robin Hood)
“In Berkeley, activists are in the early stage of advocating for a so-called “windfall profits tax,” which would increase the business license tax for larger property owners and thus generate revenue that could be invested into affordable housing. “This money is being extracted from tenants for the benefit of people who own real estate, and it’s windfall profits,” explained Stephen Barton, former housing department director for the City of Berkeley, who is pushing for the windfall tax. “We’re going to take some of [the money] that’s being extracted from the community … and use it to mitigate some of the harms of the system.”
http://www.eastbayexpress.com/oakland/how-east-bay-tenants-get-displaced/Content?oid=4216802

More Berkeley Seniors Threatened – Oregon Park
“While much of the conflict stems from an ongoing disagreement about the board leadership, housing attorneys said they were especially concerned about the board’s attempts to evict a number of outspoken tenants. Earlier this year, Ibrahim Moss, a management consultant, served eviction notices to at least nine residents — and subsequently filed eviction lawsuits against at least four of them.”
http://www.eastbayexpress.com/oakland/an-eviction-nightmare-at-oregon-park-senior-apartments/Content?oid=4229738

San Francisco Can’t Enforce Vacation Rentals Law
“To enforce the Airbnb law, the city needs booking data so the planning department can make sure rentals are registered with the city. It also needs a clear limit on the number of days a unit can be rented out each year. Currently, the law says an owner can rent 90 days if they aren’t home, but that’s difficult to prove.”
http://www.bizjournals.com/sanfrancisco/morning_call/2015/03/san-francisco-airbnb-law-unenforceable-rentals.html

SF Supervisors Want to Fix Airbnb Law
The legislation would prohibit all tenants or homeowners, regardless of whether or not they live in their house or apartment full-time, from renting out their spare space for more than 90 days a year. If they did, neighbors would have the right to sue them. The legislation would extend the existing 90-day limit from entire homes to smaller spaces.”
http://www.sfgate.com/bayarea/article/2-supervisors-want-to-tighten-up-law-regulating-6153957.php

California Considering Statewide Law on Short-Term Rentals
“…
online home-sharing companies would have to make regular reports to cities and counties about which homes in their area are renting rooms, for how many nights and how much money the homeowners are collecting for the short-term rentals.”
http://www.sacbee.com/news/politics-government/capitol-alert/article15202547.html

New York City Enforcing Vacation Rentals Law
“New York’s investigators have cited over 7,000 fire and building code violations, shut down over 200 short-term apartments and sued several operators — ending an additional 250 short-term rentals — over the last nine years, according to the Mayor’s Office of Special Enforcement. With Airbnb and other websites sparking a short-term rental boom, some lawmakers now want to triple the illegal-hotel investigation staff and have it go beyond answering complaints to scour the web for suspect listings.”
http://www.usnews.com/news/business/articles/2015/03/28/in-nyc-an-unusual-task-force-fights-home-as-hotel-rentals

SF Collective Living in Commercial Space Avoids Eviction
“Housing activists came out in full force March 2 to support Station 40 at a press conference to denounce gentrification and urge the Jolish family to accept an offer to buy the building from the San Francisco Community Land Trust.
Though the landlords at first denied the offer, which would keep the property available as below-market rate housing, Station 40 says the Jolish family is now willing to consider selling.”
http://www.sfexaminer.com/sanfrancisco/housing-collective-avoids-eviction-from-mission-district-home/Content?oid=2924912

Cooperative Housing
One way to attack escalating property costs is to increase the number of limited equity cooperatives, where people own property collectively, run it democratically and don’t extract profit from it, says Bay Area Community Land Trust Executive Director Rick Lewis.”
http://www.contracostatimes.com/tri-valley-times/ci_27706941/berkeley-runaway-housing-costs-make-co-ops-attractive

SF Rents – Cool Map!
“This map from the folks at Zumper found that we reached an all time high for a 1-bedroom apartment in February, clocking in at an average of $3,460.
On top of that, it’s only going upwards. They reported that San Francisco rents have “continued upwards, increasing 1.5% month over month and 3.3% over the last quarter.”
http://www.upout.com/blog/san-francisco-3/san-francisco-rents-hit-record-high-again-last-month-its-only-getting-worse

Daily Cal Housing Issue
Berkeley has the 10th-highest income inequality in the country, according to a ranking of 300 cities with more than 100,000 people in the United States by Bloomberg.
“Our city is at a crossroads,” Arreguin said. “We’re becoming the city of the haves and the have-nots.”
http://www.dailycal.org/2015/03/13/berkeley-residents-priced-homes-rental-rates-rise/

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.”

The 2014 Rent Board Slate: (left to right) John Selawsky, Paola LaVerde, Katherine Harr, and James Chang. Not pictured: Jesse Townley
The 2014 Rent Board Slate: (left to right) John Selawsky, Paola LaVerde, Katherine Harr, and James Chang. Not pictured: Jesse Townley

The Berkeley Tenant Convention on Sunday July 13 chose the five candidates most Highly Recommended by the Berkeley Tenants Union screener: incumbents Jesse Townley and Katherine Harr, former School Board Director John Selawsky, and first-time candidates Paola LaVerde and James Chang. Selawsky, Harr, and Chang all serve on the BTU steering committee.

Daily Californian Celebrates Student Candidate
“I’m talking about fighting for the soul of Berkeley,” Chang said at the convention. “In Berkeley, student issues are community issues, and community issues are student issues.” http://www.dailycal.org/2014/07/13/pro-tenant-slate-chosen-berkeley-rent-board-race/

More Information on the Convention:
http://berkeleytenantsconvention.net/

In Other News

Berkeley City Council Passes NAACP Recommendations
“Ultimately, these measures will not be enough. They are a set of steps to stop the bleeding of lower-income residents from Berkeley, many of whom are people of color. But in the long run, the only effective way to combat gentrification is through the strict application of rent control.”
http://www.dailycal.org/2014/07/14/berkeley-housing-vote-step-right-direction-miles-still-go/

No Rent Control? No Security Against Displacement!
When one unit in the predominantly artist-occupied complex was put on the market a couple months ago, an attorney who had her eye on the space offered to pay $2,650, or $300 above the rental listing price. The landlord, one of the original developers of the complex in 1990, accepted the offer. Wells’ landlord, who had recently inherited the property, got word of the unprecedented demand, and notified her that her rent would be raised as well, from $2,200 to $2,650 — a 20 percent increase — effective in September. Wells, and another tenant whose rent was also increased, have no choice but to leave.”
http://www.berkeleyside.com/2014/07/03/is-the-tech-boom-putting-pressure-on-berkeley-rents/

No Dogs Allowed
“Rental search startup Lovely reports that just 17 percent of the rental apartments on their site specifically indicate that dogs are accepted, compared with 40 percent in Los Angeles and 48 percent in Chicago.”
http://www.sfgate.com/bayarea/article/Pet-owners-struggle-as-fewer-S-F-landlords-allow-5603191.php

Demolition Evictions in SF up 300%
“…evictions for things like owner move-ins, demolitions and withdrawal of units from the rental market rose dramatically last year to 673.”
http://sanfrancisco.cbslocal.com/2014/03/24/rent-board-report-san-francisco-demolition-evictions-up-300-percent/

Like her husband Mayor Bates, Berkeley’s representative in the California Senate is starting to vote against tenants. BTU needs you to stand with us, and tenants across the state, to stop a very real threat.

We are asking you to take two actions:

  1. Call Loni Hancock right now, and tell her you are ashamed of her vote on AB1513.
    Call (510) 286-1333
  2. Sign Tenants Together’s message to our Senator and ask your friends to do so too!
    http://org2.salsalabs.com/o/5247/p/dia/action3/common/public/?action_KEY=17893

The proposed law Hancock voted in favor of at the Senate Rules Committee is sponsored by the Association of Realtors. The wording allows any owner to ask the police to evict a tenant without going to court if the landlord claims the tenant is trespassing. That means any renter who can’t produce a written lease when the cops come to the door is at risk.

Banks claim they want this extra- judicial eviction option because there are squatters, but banks have a long history of trying to evict legitimate tenants. Even though the bill has been amended to impact “only” three cities, it sets a dangerous precedent, it could be expanded and it leaves tenants in Palmdale, Lancaster and Ukiah at risk of being thrown on the street without having their day in court. Regular eviction proceedings are already fast tracked. There are laws against trespassers, too. This law is unnecessary!

Additionally, the bill has no penalties for landlords who lie. So if the tenant later shows they were legit, they would have to convince the District Attorney to prosecute the owner for perjury, or nothing at all will happen to those who try to harass renters this way. This is what the Berkeley Rent Board was told by the legislative advocate the Board has instructed to try to stop the bill.

This bill just is not fair! Let the judge decide!

Update:

Current law allows police to arrest trespassers, and when it isn’t clear if someone’s a trespasser, the matter gets resolved in court where a tenant has the right to trial in an expedited proceeding. The bill’s author and its sponsor, the California Association of Realtors, have not explained why existing law is not sufficient to deal with trespassers. Legislators have not even asked the author or sponsors to come forward with a single case in which a new “eviction by declaration” law is needed. Yet the bill continues to advance. This contrasts sharply with how tenant protection bills are treated in the Capitol.” http://beyondchron.org/eviction-by-declaration-bill-advances-exposing-sacramento-double-standard-on-tenants/

Analysis:

Not simply a bill to address tenants living in foreclosed homes, AB 1513 could seriously jeopardize tenants who have no protection of a written lease agreement. AB 1513 could allow slumlords to evict their tenants simply by stating to the police department of their local jurisdiction that their tenant was an “unlawful occupant,” nullifying the tenant’s constitutionally protected due process.” http://sandiegofreepress.org/2014/04/california-state-assembly-bill-ab-1513-will-take-away-tenants-rights/#.U7NwCGS9Kc0

“AB 1513 is also unclear regarding a resident’s rights if a property owner improperly evicts. It appears that the property owner’s only liability is based upon perjury. Accordingly, even a resident improperly evicted by a property owner making a false statement would have no recourse if the property owner’s false statement was made due to a mistake, lack of knowledge, or even lack of understanding regarding the law. Because of this, AB 1513 places a premium on the ignorance of property owners who can evict residents at will as long as they subjectively believe they have the right to do so.” http://oaklandwiki.org/AB-1513

 

IMG_5216-300hSB1439 was amended so only San Francisco tenants would be protected, but it failed in committee at the California State Assembly because many Democrats joined Republicans in voting against the eviction protections.

This from Tenants Together:

Despite our best efforts and a broad-based coalition of support from tenants and allies, our bill for Ellis Act reform, SB1439 (Leno), failed to pass out of the California Assembly Housing & Community Development Committee. Democratic Assembly Members Sharon Quirk-Silva (D – Fullerton) and Cheryl Brown (D- San Bernardino) teamed up with Republicans Brian Maienschein (R – San Diego) and Beth Gaines (R – Roseville) to defeat SB 1439 (Leno), a modest bill to stop speculators from misusing California’s Ellis Act to evict long-term tenants. The bill failed on a 3-4 vote, with Assembly Members Ed Chau (D – Monterey Park), Tom Ammiano (D – San Francisco) and Mariko Yamada (D –Davis) voting to support the bill. The bill would have plugged a loophole that has allowed speculators to purchase apartment buildings and immediately evict long-term San Francisco tenants who are disproportionately elderly and disabled. With no real arguments against the bill, the real estate lobby relied on a strategy of misrepresentations and campaign donations to prevail.

billEllis Act Update

Mark Leno’s Ellis Act reform bill (SB1439) was amended so only San Francisco tenants will be protected if the law passes. Yet tenants all over California are rallying to support long-time renters who face a dire situation in San Francisco, so the bill passed the state Senate and is now in the Assembly. It goes to the Housing and Community Development Committee on Wednesday.

The Berkeley Rent Board voted in March to ask Loni Hancock and Nancy Skinner to work to amend the bill so it  protects East Bay renters. The Board will get an update from the legislative advocates on Monday June 16 on this and other state legislation.

There were no Ellis evictions filed in Berkeley from 2011 through 2013. The Rent Board gives a report once a year, but tenant advocates have told the Tenants Union that there are many renters in Berkeley threatened with Ellis evictions. When tenants leave without an official eviction, there is no statistical record.

http://www.sfgate.com/realestate/article/S-F-Ellis-Act-reform-bill-passes-in-state-Senate-5514880.php

http://www.thebolditalic.com/articles/5123-woohoo-ellis-act-reform-bill-passes-in-state-senate

Amended “Squatters Bill” Remains Threat to Renters

A bill in the state assembly intended to allow cities to evict squatters without going through a full eviction process in court could put any tenant without a written lease at risk of losing her or his access to the justice system. BTU worked to discourage our representatives in Sacramento to support the bill.

Recently, AB1513 was amended to only cover a couple places in Southern California, but if it is made law, it could set a dangerous precedent to allow the police to remove renters without the owner going to court. 

http://beyondchron.org/szetso-piece-ab-1513-update/

Berkeley Supports Renters Tax Assistance 

On June 3, Berkeley City Council approved a recommendation from the Housing Advisory Commission to support AB 2175 (Daly). The bill calls for restoration and expansion of State Tax Assistance to Renters, particularly seniors, the disabled, and low-income folks. Council voted to send letters to State Senator Hancock, Assembly member Skinner, and Governor Brown to communicate the City of Berkeley’s support for AB 2175. 

The Rent Board also voted in March to go on record supporting the bill, and will get an update on Monday June 16 from the legislative advocate.

Expanding Seismic Retrofit Requirements to Other Types of Buildings

In March, the Rent Board also voted to advise the City Council to review AB 2181, which would authorize cities to implement retrofit requirements on non-ductile concrete residential buildings by adding those structures to existing law regarding soft story buildings.

Image courtesy of Tenants Together
Image courtesy of Tenants Together

The Berkeley Rent Board voted at their March meeting to ask Senator Hancock and Representative Skinner to work on our behalf to allow cities like Berkeley to be a part of the statewide Ellis Reform. Meanwhile, the current bill from Mark Leno (SB 1439) – which will only protect San Francisco – narrowly passed the Senate Transportation and Housing Committee. Now it heads to the Judiciary. Although BTU wants protections against these speculative evictions to be open to Berkeley renters, we are still excited to see help for San Francisco may be on the way!

Tenants Together has published a fascinating report called The Speculator Loophole with help from the Anti-Eviction Mapping Project. The report shows that more than half of the owners who want to “go out of the rental business” bought the property within one year of deciding to evict everyone. The Leno bill calls for owners to hold rental property for five years before they can “go out of business” with the Ellis Act – San Francisco hopes this will stop speculative evictions.

http://tenantstogether.org/downloads/Ellis%20Act%20Report.pdf

San Francisco also voted this week to increase relocation assistance for Ellis evictions: “On Tuesday, the Board of Supervisors voted 9-2 to approve legislation that requires property owners in such eviction situations to pay the difference between the tenant’s current rent and what the tenant would have to pay for a similar apartment under current market conditions for two years…a tenant who moved into a two-bedroom apartment in the Mission district in 1987 at a monthly rent of $909, a relocation payment of $44,832 would be required.”
http://www.sfexaminer.com/PoliticsBlog/archives/2014/04/09/sf-boosts-compensation-for-ellis-act-evictees

SF Gate on Relocation Payment Increase:
http://www.sfgate.com/news/article/S-F-supervisors-OK-bigger-Ellis-Act-payouts-5386872.php

San Francisco Starts Pilot Program to Legitimize In-Law Apartments:
http://www.ebar.com/news/article.php?sec=news&article=69627

SF Tech Companies Support Ellis Reform:
http://www.beyondchron.org/articles/SF_Tech_Companies_Formally_Back_Ellis_Act_Reform_12534.html