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

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 Then the owner rescinded the OMI notice.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

The regulation addresses withdrawn eviction notices for owner occupancy and states, “…if the tenant vacates within one year of the date of service of the notice, the tenancy is presumed to have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

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

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

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

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

Tenants In the News

Several of these stories were sent in by BTU members:

BERKELEY

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

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

SAN FRANCISCO

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

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

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

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

CALIFORNIA

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

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

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

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

Demolition Decision Sets Bad Precedents

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

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

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

Short Term Rentals

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

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

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

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

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

Balcony Collapse Highlights Problems with Code Enforcement

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

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

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

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

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

From Other BTU Members:

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

And In Other News:

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

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

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

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/

Household-Income-DistributionOn Wednesday February 18 the Planning Commission will hold a public hearing on the Housing Element of Berkeley’s General Plan. The hearing is at 7 PM at the North Berkeley Senior Center. BTU needs tenants to come speak out!

Berkeley’s 2015-2023 Housing Element is the basis for housing goals and policies for the next eight years. It is important that renters comment on this draft now, in order to maintain tenant protects and expand development of actual affordable housing.

Your Berkeley Tenants Union has written an extensive critique of the draft, linked below. We hope you will attend the hearing or write the Planning Commission right away supporting our goals:

  1. Demo Ordinance: Rent controlled housing must remain protected from demolitions.
  2. The Affordable Housing Mitigation Fee charged to developers should be high enough to actually mitigate the lower-income housing needs created by new development.
  3. “Illegal” Units: City should provide path to legalize 4,000 rent controlled units which do not have permits – San Francisco’s program could be our model.
  4. Code Enforcement / Habitability: Increase proactive inspections; allow anonymous complaints.
  5. Better monitoring of Below Market Rate “Inclusionary” Rentals

Write to planning: JHarrison@cityofberkeley.info; aamoroso@cityofberkeley.info

Full BTU Letter to Planning
2015.Planning Commission Feb 18.BTU

Article on first Housing Element hearing:
http://www.contracostatimes.com/breaking-news/ci_27491384/berkeley-commission-examines-housing-issues

Draft Housing Element itself:
http://www.ci.berkeley.ca.us/housingelement/

Screen shot 2015-03-09 at 7.55.51 PMThis is from John’s letter to the Planning Commission for the February 18 hearing:

It is clear from the Draft Berkeley Housing Element document that Berkeley is falling short of providing a mix of affordable housing for lower income AND middle income residents. I will focus on middle income residents, and particularly in my view an acute need for additional family housing within the City of Berkeley. Recent projects within the City have included a limited mix of primarily studio rentals and high-end rentals and condos, but units falling in the middle of these two extremes are, in comparison, few. I cite Table 1-1 as an example, which indicates that between the years 2000 and 2006 Berkeley provided only 4% of the Regional Housing Needs Determination as set by ABAG for moderate-income residents. Further, Table 2-14 indicates a lack of Renter Occupied 3 and 4 bedroom units, units which could be utilized by moderate to large size families.

I quote from the Objectives section of the Draft: “Berkeley residents should have access to quality housing at a range of prices and rents.Housing is least affordable for people at the lowest income levels, and City resources should focus on this area of need.

I do not argue with the egalitarian goal of this statement, but in reviewing the documentation in this Draft it is clear to me that the middle class, and particularly moderate-income residents with children (i.e., families) are the ones primarily being squeezed for housing in Berkeley. I do not see that trend reversing without an emphasis on strategies and programs to address this essential need.

John T. Selawsky
Member, Berkeley Tenants Union
Commissioner, Rent Stabilization Board

DEMO_1106
Scenes like this will no longer be confined to Southside if revisions to the Demolition Ordinance allow destruction of small rental properties to build expensive commuter apartments.

DATE: November 5, 2013
TO: Planning Commissioners
RE: Demolition Ordinance

SUMMARY: Please preserve affordable housing by again recommending the June 4 compromise on the Demolition Ordinance. Please find attached our petition — with 270 signatures.

Respected Planning Commissioners:

The Berkeley Tenants Union is extremely concerned about proposed changes to the demolition ordinance. As you may recall, you already approved changes to this zoning code in the spring. We think it might be a bit confusing that this law is before you once again, so we have tried to provide a comprehensive summary with links to all relevant documents in this correspondence.

In December of 2011, the Berkeley City Council directed staff to draft amended language to Berkeley Municipal Code Chapter 23C.08, the “Demolition and Elimination of Dwelling Units Ordinance.” (Document: Council Direction 12-6-11) In June of 2013, staff presented a draft that met all the requests Council made in 2011, and was approved by the Rent Board and the Planning Commission. The same draft has also been presented one month before, at the 4×4 Committee, and neither Mayor Bates nor Councilman Capitelli voiced any concerns with the draft. On June 4, it looked like Council was going to pass this compromise draft (Document: June 4 draft), until time ran out on the meeting.

Then something changed. The Council began to question the June 4 compromise, and considered a new draft, perhaps hastily prepared, presented at the July 2 Council meeting. (Document: July 2 Draft). The new draft appeared to be based on requests made by developer Equity Residential (Document: ER Letter to Council), who are now Berkeley’s largest landlord. Since Council got letters of objection from many civic groups, including the Sierra Club, Berkeley Architectural Heritage Association, Berkeley Neighborhoods Council, and Berkeley Tenants Union, they sent the Ordinance back to the Planning Commission and the Housing Advisory Commission.

What do these drafts say?

Currently BMC 23C says “controlled rental units” cannot be eliminated unless the owner “cannot make a fair return on investment by maintaining the dwelling unit as a part of the rental housing market” and that those apartments must also be “seriously deteriorated beyond the conditions which might reasonably be expected due to normal use.” It also says that demolished rent controlled units must be replaced with permanently affordable housing. (Document: DemoCURRENT)

Problems with the current law arose because the City Attorney decided that empty units which would otherwise be under rent control are not “controlled rental units” and therefore not subject to the rules above. This means any empty unit can be torn down with no mitigation for the loss of affordable older units which would be under rent control if they were rented. Such a policy encourages owners to leave buildings to rot, promotes evictions and harassment, and may violate not only the Demolition law, but also the voter-approved Neighborhood Preservation Ordinance. (Document: NPO)

To end the controversy about the interpretation of the law, the Rent Board and the City Council called for revisions, but Council also asked that new rules require “units are replaced with an equal or greater number of new units inclusive of the current number of existing affordable units.” (Document: Council Direction 12-6-11) Likewise, the June 4 draft required developers who tear down multiunit buildings built before 1980 (those covered by rent control) replace them with “designated below-market rate units equal in number and comparable in size to the demolished units.”

However, the July and August drafts do not call for one-for-one replacement of affordable rent controlled units with housing for low-income renters. The July 2 and August 30 drafts both require developers pay a fee into the Housing Trust Fund. However, the fee in the July 2 draft is about 10% of what it costs to build an affordable unit, and the fee in the August 30 draft is unspecified and thus could be changed by City Council at any time. (Document: Worse Aug 30 draft)

There are numerous other problems with the July and August drafts. For example, one scheme outlined by developer Equity Residential was included in the July draft. This calls for replacement units in the new building which would be “designated rent increase restricted” – however, the Rent Board (Document: Berkeley Rent Board letter) and East Bay Community Law Center (Document: EBCLC Letter) have both pointed out that this violates the state law called Costa-Hawkins, because that law banned any new rent control in California, even if you call it by another name.

In addition, later drafts contradict the voter-approved Neighborhood Preservation Ordinance and may be challenged in court if they are made law. (Document: NPO)

Several community groups have sent communications on this issue that raise various additional concerns, such as the wisdom of tearing down perfectly fine small buildings at all, and the environmental impact of encouraging growth through demolition. You can find copies of public communications from The Sierra Club, Berkeley NAACP, Berkeley Neighborhoods Council, and Berkeley Architectural Heritage Assn. on our website along with all documents we have linked to in the text above.

The real question here is what kind of community benefits does Berkeley need in exchange for allowing speculators to tear down a useable rent controlled building in order to build a bigger one with market rate apartments? This is not just about what legal mitigations a nexus study might allow. We can actually choose, as Berkeley did in the 1970s, to ban demolition altogether. BTU hopes you might realize that rent control has been Berkeley’s most successful affordable housing program, and that rent controlled units should be preserved, even if they are not rented at this time.

You can choose not to allow demolition – and you should choose this if there is going to be a long wait for a Nexus study.

Please see the attached petition, with 270 signatures. Please note that, following pages with electronic signatures and comments, there are scans of the paper petitions.

Please again recommend the June 4 compromise draft.

Sincerely,
Berkeley Tenants Union Steering Committee, on behalf of the tenants of Berkeley

P.S. All documents mentioned in this correspondence can be found here:
https://www.berkeleytenants.org/?page_id=773

city-to-suburb_stamenreprisedforwired-660x5891Oakland fights to close rent control loophole:
Berkeley tenants enjoy protections against bad business decisions by owners. Here, landlords can only passthrough “capital” costs if they were not foreseeable when they set the initial rent or they can’t make a fair return on their investment. In Oakland, their weaker rent control law is further undermined by broad rules which allow landlords who paid too much for a building to then raise the rents to pay their mortgage. Oakland is fighting to close this loophole even as Berkeley tenants could see passthrough rules relaxed so that landlords can charge for seismic retrofits:

“Of the ten major jurisdictions in California that have rent control laws, only four allow landlords to pass on the costs of debt service. Of those four, Oakland is the only municipality that allows landlords to force tenants to pay up to 95 percent of their debt.”

http://www.eastbayexpress.com/oakland/oakland-rent-laws-to-be-debated/Content?oid=3719780#fromMobile

In San Francisco, the rents are too damn high:
The SF Department of Public Health made an interactive map which shows how many full-time minimum wage jobs it takes to pay rent on the average market rate apartment in each SF neighborhood. For example, in the Mission District, it would take 5.5 minimum wage jobs to pay rent on a new 2-bedroom apartment, because market rent is $2,920. The actual median income of the neighborhood is about half of what it takes to pay that rent.
http://www.sfphes.org/news/211-rent-affordability-in-san-francisco

Thoughtful tech industry comments on gentrification, development, and the “Google Bus” phenomena:
Whichever side of this issue you’re on, it’s clear that we’re looking at a reversal of the historical norm: The workers that used to live in residential suburbs while commuting to work in the city are now living in the city, while the largest technology companies are based in the suburbs and increasingly draw their labor supply from dense urban neighborhoods…That they’re young and educated and lots of them are millionaires is kind of beside the point. It’s about more than gentrification as we’ve experienced it thus far: It’s about an entirely reconfigured relationship between density and sprawl…

This article contains a really cool map but it doesn’t show that these tech industry shuttles now pick up at MacArthur, Ashby and North Berkeley BART stations as well.
http://www.wired.com/opinion/2013/09/mapping-silicon-valleys-corporate-shuttle-problem/

Nob Hill building with 33 units would be largest Tenancy in Common:
Over in San Francisco, investors would like to use the state Ellis Act to evict rent controlled tenants and turn buildings in condominiums. Only they can’t, because like Berkeley, San Francisco has tight restrictions on how many precious affordable rent controlled units can be turned into condos each year. So speculators turn them into Tenancies-in-Common, which are like condos, only not. Pretty soon investors in Berkeley will be exploiting similar loopholes, so let’s get ready!
http://www.sfgate.com/realestate/article/Park-Lane-tenants-protest-conversion-plans-4853226.php

Meanwhile back in Berkeley, BNC issues strong statement on Demolition Ordinance:
The Berkeley Neighborhoods Council newsletter discusses how revisions to the Demo Ordinance are not only bad for tenants, but also for neighborhood stability:

“This provision puts multiple unit buildings that are well-integrated parts of neighborhoods throughout the city at risk of being demolished for no other reason than a developer sees an opportunity to replace it with a new and bigger building.”

In their September newsletter, BNC reminds everyone that the Ordinance will be discussed November 6 at the Planning Commission.
http://www.berkeleyneighborhoodscouncil.com/Newsletters/2013/Issue2/BNC_eNEWS_2_NNRaA2.htm

Speculators Driving Up Rents in East and West Oakland:
Big national companies are outbidding regular folk and buying up foreclosures all over Oakland’s flatlands, breaking up long-standing African American communities. Some firms just slap a new coat of paint on the “distressed property” and resell them right away, at prices working people can’t afford. Others are offering these homes at San Francisco-type rents, but plan to sell them in five to seven years. Several nonprofits – including Oakland Community Land Trust and Restoring Ownership Opportunities Together –are working to keep owners in their homes, or buy foreclosures and keep them affordable to working people. If you think this is going on in Berkeley, let us know!
http://www.eastbayexpress.com/oakland/whos-jacking-up-housing-prices-in-west-oakland/Content?oid=3726518

April 28 BTU - 18Good news on the Demolition Ordinance!

On September 12, the Housing Advisory Committee voted unanimously to support one-for-one replacement of demolished rent controlled units with permanently affordable housing. They recommended the good June 4 compromise draft over the more recent drafts, which provide incentive for developers to empty buildings of all tenants.

The key vote on the Demolition Ordinance will be the one by the Planning Commission on November 6. BTU will be calling all tenants to come out to the meeting. We need Planning on our side to save Berkeley from the bulldozer.

potluck_01Our friends from the Eviction Defense Center will provide Tenant Counseling from 6 to 6:30 PM before this month’s BTU gathering.

Come break bread with tenants, smart landlords, activists, and everyone who wants to keep rent control strong and working in Berkeley. Bring any dish you like – but vegetarian food is always encouraged!

If any members have an announcement to share, please contact us before the meeting to be allocated time. We will keep announcements brief, but both of the issues BTU has been focused on this summer are coming up before the Planning Commission, Rent Board and City Council. Learn what you can do to stop dangerous revisions to the Demolition Ordinance, and finally move forward the requirement to retrofit the apartment buildings identified in 2005 as “Soft Story.” EDC will also say a few words about the problems they are seeing most from Berkeley tenants.

When:  August 14, 2013 6:30-8:30

Tenant’s Rights counseling at 6pm, potluck from 6:30-8:30 p.m.

Where: Grassroots House, 2022 Blake, Berkeley between Milvia and Shattuck map

Children are welcome.  Please contact us if you would like to share childcare arrangements.

Note: beginning September 18, Potlucks will be the third Wednesday of the month.