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.”

Recently, San Francisco leaders changed the Ellis relocation payments law: speculators who buy a building to “go out of the rental business” will have to pay tenants the difference between their current rent and the market rent – times 24! Naturally, landlords have filed a lawsuit.

Now, SF activists are fighting the Ellis crisis with a ballot measure they call an “Anti-Speculation Tax.” The tax was first proposed by activist Supervisor Harvey Milk around the time that San Francisco got rent control – over 30 years ago! Today, SF’s Prop G is sponsored by four members of the Board of Supervisors and would impose a tax on buildings sold in the first five years after purchase, but exempt owner-occupied homes.

“Prop G would tax the entire value of the building, beginning at 24 percent if sold within one year of purchase. The rate would be less after each successive year, falling to 14 percent if sold five years out. It would not apply to owner-occupied buildings, so as long as the buyer moved into the property they could sell it within five years and not face the tax.”
http://www.ebar.com/news/article.php?sec=news&article=69972

“…Additional Transfer Tax on Residential Property Sold Within 5 Years of Purchase seeks to discourage real estate speculators from buying up properties with the aim of flipping them, a process that tends to involve bringing down the hammer of the Ellis Act to evict long-term tenants.”
http://www.sfbg.com/politics/2014/08/12/who-will-san-francisco-dems-back-november

 “The anti-speculation tax — which would be 24 percent of the sale price if resold within the first year of purchase and drop to 14 percent if resold within five years — was the among the final pieces of legislation that Supervisor Harvey Milk pushed before he was assassinated in 1978.”
http://www.sfexaminer.com/sanfrancisco/sf-tenants-rally-for-support-of-proposition-g/Content?oid=2879961

“The law, which went into effect June 1, requires landlords to give tenants in Ellis Act evictions a relocation assistance payment equal to two years’ worth of the difference between the tenant’s current rent and the cost of comparable housing in the city.”
http://sanfrancisco.cbslocal.com/2014/08/22/judge-refuses-to-block-sf-law-increasing-relocation-payments-to-evicted-tenants-trial-put-on-fast-track/

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/

 

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.

Doorbells

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

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

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

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

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

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

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

Photo courtesy of Tenants Together.
Photo courtesy of Tenants Together.

Berkeley is one of 14 cities in California that enjoys strong protections for tenants. San Francisco has decent protections, but has seen a huge wave of evictions that use a state law, the Ellis Act, to get around local rules.

Now there is a statewide effort to reform the Ellis Act. The law was intended to allow long-term owners to “go out of the rental business” but instead allows investment companies and other speculators to buy rent controlled buildings, evict all the tenants, and sell the units as condos or tenancies-in-common at huge profits.

Activists from San Diego to Redding are hoping a reformed law might require an owner to hold the building for at least five years before they could “go out of business” – this would eliminate speculators who buy rental properties only to flip them after evictions. However, in 2007 a bill in the California legislature which called for a five-year delay failed miserably. If a broad coalition from many cities – including Berkeley – doesn’t support the current reform, we could end up with a state exemption to the law that will only protect San Francisco.

And you know what they say – “When San Francisco sneezes, Berkeley get a cold!” If SF was able to curb their epidemic of evictions, speculators will quickly turn to Berkeley. This is why the Berkeley Tenants Union wants you to join with us in supporting broad statewide reform of the Ellis Act now!

Our friends at Tenants Together have put together a petition as a first step:

A state law, The Ellis Act, is responsible for the unfair eviction of thousands of seniors and families in California. In the past few years Ellis Act evictions have surged, with thousands of long-term tenants displaced from their homes.

Send the message that we will stand up for our communities against speculation.
http://org2.salsalabs.com/o/5247/p/dia/action3/common/public/?action_KEY=15820

San Francisco is taking other steps to end their eviction crisis – Berkeley should also increase Ellis relocation payments, restrict unit mergers, and give evicted residents priority for local affordable housing – join BTU to fight for this today! Right now, the revisions to the Berkeley Demolition Ordinance proposed by Mayor Bates will make it easier to eliminate rent controlled units by merging them to create big houses for the wealthy — the exact opposite of how San Francisco is changing their law!
http://sfpublicpress.org/news/2013-12/supervisors-approve-plan-to-protect-tenants-against-displacement

Hundreds of seniors, families and long-term renters evicted in San Francisco
http://www.beyondchron.org/articles/Stopping_Ellis_Act_s_Economic_Terrorism_12134.html

The Ellis reform bill would allow local governments more say in preventing evictions:
http://m.sfexaminer.com/sanfrancisco/tenant-advocates-seek-support-for-reforming-ellis-act/Content?oid=2665435