BPOA employee says U1 funds being misdirected.
“Tuesday night, they approved an “emergency” ordinance to buy the old Premier Cru building complex on University Avenue for $6.65 million. They want to use the site for future City Council chambers and maybe later, for affordable housing.”
http://www.berkeleyside.com/2017/03/31/opinion-berkeley-done-bait-switch-using-housing-funds-buy-new-council-chambers/

More on Council Item
It will repay the funds from money generated from excess property taxes and Measure U1, the new business tax on rental properties that voters approved in November. The funds will be repaid with interest, said city spokesman Matthai Chakko.”
http://www.berkeleyside.com/2017/03/27/city-council-set-buy-west-berkeley-building-will-move-meetings/

Council Item Itself
“$4.650 million (70% of the purchase price) from Measure U1 revenue”
http://www.cityofberkeley.info/Clerk/City_Council/2017/03_Mar/Documents/2017-03-28_Item_32_Acquisition_of_Real_Property.aspx

Other News

Rent Board Delays Appointing Commissioner
The Berkeley Rent Stabilization Board honored outgoing Commissioner Harr but decided to delay appointment of a new Commissioner until May. They chose to delay because Commissioner Murphy was absent due to a family emergency.
Here is the report that ranks contenders for the position, including several candidates who did not make the slate at the 2016 Tenant Convention. BTU is not taking a position yet, because most candidates are BTU members, including Stefan Elgstrand, Tim Kingston, and Christine Schwartz.
http://www.cityofberkeley.info/uploadedFiles/Rent_Stabilization_Board/Level_3_-_General/TBD_Candidate%20search%20results%20and%20rec%20memo%20and%20attachment_FINAL.pdf

People’s Park Anniversary as UC Considers Building, Again
April 23 is the anniversary celebration for People’s Park.
“In 1968 the University used eminent domain to evict the residents and demolish all the houses on the block. Apparently they talked of plans to build needed student housing but nothing happened. For a year the empty lot was an eyesore, muddy and strewn with garbage. In April 1969 activists put out a call for people to help create a park. Hundreds came and cleared the ground, planted flowers and trees and built a children’s playground. They created a park, a People’s Park, that still lives today.”
http://www.berkeleydailyplanet.com/issue/2017-03-31/article/45603?headline=Berkeley-s-People-s-Park-is-in-the-news-again–Lydia-Gans

BARF Lawsuit Could End Neighborhood Preservation
The Bay Area Renter’s Federation, (SF BARF) known as a tool for developers and not a tenants group, is suing over a Council decision to deny permits at 1310 Haskell.
“The law states that a city or county cannot deny the approval of a housing project that complies with its general plan and zoning ordinance without substantial evidence that it will negatively impact public health or safety.”
http://www.dailycal.org/2016/10/31/lawsuit-alleges-berkeley-city-council-illegally-revoked-housing-development-permit/

Low Income Tenants Ousted By Oakland Fire
“The residents even obtained a restraining order against the building’s landlord. And, now, their lawyer is calling for an arson investigation.”
http://www.eastbayexpress.com/SevenDays/archives/2017/03/27/landlord-of-west-oakland-building-destroyed-by-fire-was-working-to-evict-tenants

Harsh Laws Drive Artists to Unsafe Warehouses
The father of one artist who died in Oakland’s Ghost Ship Fire is speaking out about how impossible permitting processes and costly complex rules make it impossible for artists and musicians to make their spaces safe and legal and leave those without resources prey to slumlords.
http://www.sfgate.com/bayarea/article/Father-of-a-Ghost-Ship-victims-urges-lawmakers-to-11005032.php

UN Report on Housing as Commodity
It details the shift in recent years that has seen massive amounts of global capital invested in housing as a commodity, particularly as security for financial instruments that are traded on global markets and as a means of accumulating wealth. As a result, she says, homes are often left empty – even in areas where housing is scarce.”
https://www.theguardian.com/housing-network/2017/feb/28/un-report-lays-bare-the-waste-of-treating-homes-as-commodities

 Report Itself
“This influx of capital has increased housing prices in many cities to levels that most residents cannot afford – in some cities by more than 50% in a 5-year period. Housing prices are no longer commensurate with household income levels, and instead are driven by demand for housing assets among global investors. When housing prices skyrocket, low and sometimes even middle-income residents are forced out of their communities by high rent or mortgage costs. When housing prices plummet, residents face mortgage foreclosure and homelessness.”
http://www.ohchr.org/en/NewsEvents/Pages/DisplayNews.aspx?NewsID=21264&LangID=E

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

Because of the appeal of the Zoning Board ruling, tenants who lost almost everything in the 2012 fire at 2227 Dwight Way will be given relocation benefits and the units, once rebuilt, will remain under rent control. City Council voted to uphold the ZAB ruling, but “clarified” that previous tenants have the right to reoccupy the apartments at the previous rent-controlled rates. The units will remain under rent control, but if the old tenants don’t move back in, new rents can be set at market.

The appeal challenged the ZAB decision that the owners, the infamous Lakireddy family, would not have to pay the affordable housing mitigation fee. At issue was the possibility that the owners were at fault for the extend of the fire damage because smoke detectors and fire alarms may not have sounded, and the fire may have been caused by a faulty water heater.

Because of the appeal, the City Council also plans to clarify what constitutes “fault” when properties destroyed by fire are exempt from city fees like the affordable housing mitigation fee. In the appeal, it was suggested that city staff only looks for arson and does not consider negligence when determining fault.

Several BTU members wrote to the City Council in support of the appeal, and many tenant advocates spoke at the meeting.

According to Inside Bay Area, Council also voted to make rental housing inspection safety reports from the Dwight property public documents.

Inside Bay Area
http://www.insidebayarea.com/breaking-news/ci_24420395/berkeley-council-upholds-affordable-housing-exemption-rebuilt-apartments

Daily Californian
http://www.dailycal.org/2013/10/30/fire-damaged-building-retain-rent-controlled-status/

Berkeleyside
http://www.berkeleyside.com/2013/10/31/fire-damaged-berkeley-apartments-to-stay-rent-controlled/comment-page-1/

Daily Planet
http://berkeleydailyplanet.com/issue/2013-10-26/article/41579?headline=Berkeley-City-Council-to-Decide-on-Appeal-Brought-by-Former-Tenants-of-Fire-Ravaged-Building-with-History-of-Landlord-Negligence–By-Marcia-Poole

Tenants from the building on Dwight partly destroyed by fire are asking for support on October 29. Renters and friends from 2227 Dwight, owned by Lakireddy Bali Reddy, the famous Berkeley landlord who plead guilty to federal charges about immigration fraud, transporting a minor for sex and tax evasion, are appealing the Zoning Board ruling that allows the owner to rebuild without paying mitigation fees. At issue is whether the owner was at fault for the extent of the fire because the smoke alarms may have been disconnected.

This is from BTU member Luis Amezcua:

The tenants of 2227 Dwight Way, on March 8, 2013, lost most, if not all, their personal possessions due to the fire that happened that night. The Zoning Adjustments Board (ZAB) approved a use permit to reconstruct the building, but there are some uncertainties that need to be addressed before the reconstruction can begin. For clarification, the appeal does not object to the reconstruction to the building, since it would remove a blight from the neighborhood and provide needed housing.

The ZAB was not fully informed of 2227 Dwight, and were unsure as to whether the fee and other mitigations applied. Even with the testimony of one tenant about the fire and the owner’s negligence, Staff determined that, because the fire was not arson, it was accidental. Staff failed to fully analyze the issue of fault, and restricted themselves between two possibilities (either arson or accidental) when making their determination; however, there is evidence that suggests that the landlord is fault due to negligence. The fire report states that “the building’s fire alarm system was not sounding when fire units arrived at the scene and was not heard sounding by firefighters at any point during the incident”, and that “the full circumstances surrounding the failure of the fire alarm system are still under investigation”. Tenants testify that the landlord disabled the fire alarm system due to false alarms, and it is a factor that needs to be considered when determining fault. Furthermore, there is still pending litigation between some of the former tenants and the property owner, with the question of who’s at fault being key. A few of the former tenants received settlement payments from the property owners – something that wouldn’t happen if this was an open and shut case where the property owner clearly was not at fault.

The ZAB’s decision on 2227 Dwight Way encourages owners of older housing to not adequately maintain their properties by creating unsafe housing which result in fire incidents. When a building is burned down, the owner can put the new units at market rate, lowering the amount of affordable housing in Berkeley, and allowing owners to avoid the Affordable Housing Mitigation Fee. All we ask is that the Council either require affordable housing to be built on site, an in-lieu payment be made to the Housing Trust Fund, or staff thoroughly investigate the issue of fault and remand this project back to the Zoning Adjustments Board with sufficient information so that they can make the proper findings (including the determination of fault).

City Council hears the appeal on October 29 and the tenants are asking for support at the meeting.

On Thursday, July 25, the Zoning Adjustments Board will decide whether to issue a building permit for the New Sequoia Building. The original Sequoia Building at Haste and Telegraph was destroyed by fire in 2011, wiping out almost forty rent-controlled apartments.

Unfortunately, state law prohibits the construction of new rent-controlled units. But ZAB has the authority to put important conditions on the New Sequoia building permit. They can tell the owner, Kenneth Ent, to make the units permanently affordable, or at the very least, refuse to exempt the building from the usual mitigation fee. The fee of twenty thousand dollars per unit is for the Housing Trust Fund, but ZAB exempt the Lakireddy family from paying the fee for 2227 Dwight, also destroyed by fire. That permit is being appealed.

The Trust Fund uses mitigation fees to build new low-cost housing. However, since each unit of new housing costs about four hundred and ten thousand dollars to build, including permanently affordable housing in the building may be a better solution.

It seems some ZAB members may disagree that they can impose conditions on permits. Yet a paragraph of the ordinance that guides their actions states that the Board “may attach such conditions to any Use Permit as it deems reasonable or necessary to achieve the purposes of this Ordinance, and which otherwise promote the municipal health, safety and welfare.” (italics added).

The restitution of forty affordable housing units surely promotes municipal welfare. It can be argued that Mr. Ent is obligated to provide them, and that doing so is reasonable. Consider:

  • The fire started in the elevator control box. Many Sequoia tenants have said that the elevator was frequently out of order or working poorly. According to SF Gate, the last time the elevator was inspected was in August 2010 and the permit for the elevator had expired. Had these problems been addressed, the fire might have been avoided.
  • The building lacked a sprinkler system. Sprinklers might have limited the scope of fire (from whatever cause), and saved the building. Furthermore, Mr. Ent could have recouped the expense of this improvement through legally sanctioned rent increases.
  • Tenants also had complained about problems with fire escapes and smoke detectors, according to media reports.

Berkeley Tenants Union has not taken an official position, but if you think tenants need to persuade ZAB that affordable housing at the New Sequoia will promote the City’s welfare, and that ZAB Commissioners should exercise their power to mandate this, please:

  • Come to the ZAB meeting on Thursday, July 25th, 7:00 PM at Old City Hall, and tell them how you feel. Contact BTU members at 510-982-6696 for more information.

For various reasons, we have been losing rent-controlled units in Berkeley. Let’s make sure that these losses are compensated through permanently affordable housing.

ZAB application:
http://www.cityofberkeley.info/Planning_and_Development/Zoning_Adjustment_Board/2441_Haste.aspx

SFGate:
http://www.sfgate.com/bayarea/article/Berkeley-building-was-site-of-earlier-fire-2344380.php

► This week’s fire at the Nash Hotel should remind us that the tenants from the buildings that burned on Telegraph Avenue and Dwight Way in late 2011 are still fighting to get their due. Replacements for both buildings are winding their way through Berkeley’s permit maze, but the City’s rules exempt these buildings from any affordable housing fees UNLESS the landlord was at fault for the damage. Since it was reported that the fire alarms were disconnected at the Lakireddy-owned building on Dwight, and tenants at the Haste-Telegraph Sequoia building have a lawsuit against the owner, fault is still being investigated. The 2227 Dwight property was at the Zoning Board on Thursday June 13, but there has been no press coverage. The Zoning Board granted the owner’s permit.

http://abclocal.go.com/kgo/story?section=news/local/east_bay&id=8575386

http://www.contracostatimes.com/breaking-news/ci_23446113/tuesday-fire-at-downtown-berkeley-hotel-causes-at

► The Berkeley Housing Authority took back 14 rental assistance vouchers they had already given to low-income families, and suspended the list of those who can get Section 8 assistance in the future, due to funding cuts from the federal government:

http://www.indybay.org/newsitems/2013/06/09/18738201.php

►As reported earlier, Berkeley Property Owners Association President Sid Lakireddy has filed a lawsuit against the four candidates for Rent Board chosen at the Tenant Convention in 2012. Another article on this lawsuit was published recently:

http://www.dailycal.org/2013/06/02/berkeley-city-officials-file-an-appeal-in-response-to-decision-in-defamation-lawsuit/

Everest Properties Vandalizes Its Own City Landmark
Everest Properties Vandalizes Its Own City Landmark

►A Lakireddy family property on Haste was also in the news:

http://www.berkeleydailyplanet.com/issue/2013-05-31/article/41107?headline=Everest-Properties-Vandalizes-Its-Own-City-Landmark–By-Daniella-Thompson

► Although the City Council considered revision to the Demolition Ordinance again on June 11, and the suggestions just keep getting worse for tenants and advocates of affordable housing, there were no news stories on the latest developments. BTU will post again when the Council calendars the next round of debate – it is expected for July 2nd. Several leaders are calling for Council to send the new draft back to the Planning Comission – since the proposal they approved wasn’t so much amended as replaced!! Video of the latest changes can be viewed on the City website – discussion started just after 9:45 PM on June 11.

www.ci.berkeley.ca.us/Clerk/City_Council/City_Council__Agenda_Index.aspx

► There has also been no news on the State of California investigation of fair election law violations by the faux-tenant slate, Tenants United for Fairness. When Berkeley’s Fair Campaign Practices Commission issued the landlord-backed candidates the second-largest election fine in Berkeley history last month, FCPC stated that there is an ongoing investigation at the state level.

http://www.berkeleyside.com/2013/05/20/landlord-backed-group-fined-for-campaign-violations/