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

Demolition Decision Sets Bad Precedents

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

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

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

Short Term Rentals

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

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

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

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

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

Balcony Collapse Highlights Problems with Code Enforcement

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

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

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

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

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

From Other BTU Members:

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

And In Other News:

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

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

A special edition of the Berkeley Property Owners Association newsletter came out in early July, announcing their plans to spend at least half a million dollars each year to fund the Berkeley Rental Housing Coalition. Their announcement begins:
“Since the beginning of permanent rent control thirty-five years ago, knowledgeable people have often suggested that Berkeley property owners should establish a legal defense fund and /or a political action committee.”

Apparently, our Mayor, Tom Bates, is one of those people!

In his speech, Bates also called for an end to the elected Rent Board in Berkeley. In recent press articles, the landlords have said the Board is “answerable to no one” – BTU thinks the Board is answerable to the voters, since they are elected.

From the Contra Costa Times: “Introduced by BPOA President Sid Lakireddy as a friend and supporter of the organization, Bates talks about his early days as a real estate salesman, manager and developer, observing wistfully that a former partner later became a billionaire… He touts the Downtown Area Plan; mocks the sponsors of a move to modify it last year; proposes a downtown office building to entice startup companies to stay in Berkeley; and suggests it might be time to bring the Rent Stabilization Board and the Berkeley Housing Authority under direct city control.
Late in the video, Bates sounds a warning: “You need to organize yourselves,” he says. “You need to think about the possibility of forming a PAC … because you’re going to be under attack.”
http://www.contracostatimes.com/breaking-news/ci_28426339/fremont-chastised-destroying-emails-berkeley-mayor-tom-bates

Landlords Plan to Sue Rent Board
“It depends on the money they have. They can run candidates,” UC Berkeley assistant adjunct professor public policy Larry Rosenthal said about the new coalition’s potential influence. “A group of landlords that are organized well will have substantial influence.”
http://www.dailycal.org/2015/06/25/berkeley-landlord-coalition-raises-money-to-seek-greater-political-influence/

People Power Can Beat Money Every Time!
Get Involved! Come to the Potluck July 8th!

Berkeley Still Has It Better
“…In Oakland, when a landlord unlawfully raises rents throughout an entire building, the burden falls to each tenant to write a formal petition and present his or her case in a hearing. As a result, many 1565 Madison residents — who chose not to file petitions or missed a hearing, in some cases because they didn’t have the resources to complete paperwork or because they feared retaliation — have to pay the entire rent increase, even though the city deemed a portion of it illegal.”
http://www.eastbayexpress.com/oakland/how-oakland-landlords-prevail-in-rent-disputes/Content?oid=4345386

St. John
Leaders of the Berkeley Property Owners Association – including owners of Premium Properties, Shaw Properties, Everest, real estate agent Jon Vicars, legal advocate Michael St. John, and the notorious Lakireddy family – have formed a new political coalition. Is their primary purpose to run candidates for the Rent Board? No. Is it to bring lawsuits like the 2012 libel cases, to scare tenants away from running for election? No. We fully expect them to do those things as well, but the Berkeley Rental Housing Coalition is landlords pooling their money mostly to sue the Rent Board over a $19 increase in the registration fee. It was the first increase of the fee, which funds the Rent Board agency, in six years.

“…She was more concerned that lawsuits funded with PAC money could divert the board from its mission. ‘I think (the landlord’s) interest may be more in the board spending time and money to defend it, thus taking away from our core services.’ ”
http://www.insidebayarea.com/breaking-news/ci_28332932/berkeley-landlords-plan-coalition-challenge-rent-board

CA Supreme Court Upholds San Jose Requirements for Developers – But Inclusionary Housing Ordinance Will Not Apply To Rentals!

The state Supreme Court upheld the right of a city to impose affordable housing requirements on developers of for-sale housing, but let stand the 2009 Palmer decision, which said cities cannot limit the rent a developer can charge for newly built rental units because of the state Costa-Hawkins law. The decision also made it clear that a nexus study is not required because cities do not have to prove that the demand for affordable housing was created by the development of new buildings.

The ruling will impact over 170 local governments with similar inclusionary housing requirements and allow Berkeley to move forward with inclusionary laws. It’s good news for anyone who might scrape it together to buy some “affordable” housing, but bad news for folks who are pretty sure they will be renters for the rest of their lives. The decision again shows the need for tenants to come together statewide to change the Costa-Hawkins law.

“The Court noted that many land use regulations result in a reduction in the market value that a property may command in the absence of regulations and this does not constitute a taking of the diminished value of the property. In this regard, the Court reasoned that the affordable housing requirement was no different than limitations on density, unit size, number of bedrooms, required set-backs, or building heights.”
http://www.jdsupra.com/legalnews/california-supreme-court-upholds-88596/

California Building Industry Association v. San Jose Decision
CA Building Trades Vs San Jose final

Berkeley Student Paper Discusses Inclusionary Case
www.dailycal.org/2015/06/16/california-supreme-court-ruling-sets-precedent-for-inclusionary-housing-in-state/

For More Info on Costa-Hawkins:
“The Costa-Hawkins Act is not only contributing to soaring rent prices, but it’s also creating barriers to new housing construction.”
http://www.eastbayexpress.com/oakland/its-time-to-overturn-the-state-ban-on-rent-control/Content?oid=4229744

Another Tenant Screwed By Costa-Hawkins
http://crowandrose.com/2013/12/another-tenant-screwed-by-costa-hawkins/

Berkeley Tenants send huge hugs to the families of all the young people lost or hurt at Library Gardens.

Faulty Construction Likely Cause of Balcony Collapse
“The horrible structural failure of a 5th floor balcony that killed six and injured seven…has brought to the forefront the issue of safety in the frantic construction of apartment buildings mushrooming the city.”
http://dissidentvoice.org/2015/06/berkeley-structural-tragedy/

Deadly Balcony Collapse Tied to Rotted Wooden Beams
http://www.foxnews.com/us/2015/06/17/collapsed-berkeley-balcony-reportedly-not-intended-for-large-group/

A History Of Housing Safety Complaints
“The apartment complex’s housing code violations included holes in walls, trip hazards from damaged floors, loose metal strips in doorways, inoperable ceiling fans in laundry rooms and missing or inoperable exit signs throughout the building. The majority of violations were found during a random September 2013 city inspection of several low-income and affordable housing units in the complex.”
http://www.latimes.com/local/lanow/la-me-ln-berkeley-code-violations-20150619-story.html

Berkeleyside Report On Builder Track Record
“As it turns out, however, there was also a $3.5 million settlement in 2013 in Millbrae related to waterproofing and wood rot. And, that same year, Trestle Glen Associates, in Colma, filed a breach of contract lawsuit, still underway, against Segue related to ‘water intrusion causing tangible property damage.’ ”
http://www.berkeleyside.com/2015/06/17/firm-that-built-berkeley-complex-has-been-fined-sued/

Builder Under Scrutiny BEFORE Balcony Collapse
“The building has been the subject of numerous complaints, both through the city and online. The most recent official complaint, submitted in February to the Berkeley Rent Board, listed missing or broken stairwell lights, missing handrails on stairwells, holes in the walls of public spaces, expired fire extinguishers, and peeling floor material that posed a tripping hazard.”
http://www.berkeleyside.com/2015/06/17/berkeley-building-under-scrutiny-before-balcony-collapse/

Protest Calls For Investigation, Halt for New Construction
A group of concerned citizens has called for a moratorium on new building construction in Berkeley until the tragedy at Library Gardens can be analyzed. The Berkeley Daily Planet posted an editorial with a similar suggestion.

Protesters’ Letter to Council Linked Here
http://www.berkeleyside.com/2015/06/19/protesters-demand-a-halt-on-new-construction-in-berkeley/

Daily Planet Suggests Pause for Building Approvals
http://berkeleydailyplanet.com/issue/2015-06-12/article/43421?headline=Ask-Council-to-Analyse-Problems-Before-Scheduling-New-Construction–