September 12, 2014 Measure Y Tracking Report

Rent Stabilization Board
Office of the Executive Director
MEMORANDUM
DATE:
12,2014
September
TO:
Committee
SiForeclosure
HonorableMembersof the Eviction/Section
FROM:
JayKelekian,ExecutiveDfuectof/
t '
Matt Brown,Staff Attorney
MatthewSiegel,Staff Attorney'Þ
Lief Bursell.AssistantPlanner
,4
SUBJECT: MeasureY TrackingReport(July2011- June2014)
BACKGROUND
In November 2000, in responseto a rash of owner-move-in evictions, Berkeley voters adopted
MeasureY as an amendmentto the Rent Stabilization and Eviction for Good CauseOrdinance.
MeasureY was subsequentlycodifred under Berkeley Municipal Code (B.M.C.) Section
13.76.130A.9placing restrictions and conditions on o.'wnerand/or relative occupancyevictions.
Berkeley's owner-move-in law allows property owners and their qualifying relatives' to evict
tenantsand move into rental units. Property owners who evict tenant householdsthat qualiff as
low income are required to pay $4,500 relocation assistanceprior to the tenantsrelinquishing
possessionof their rental units. MeasureY further requires fhat".. . at least twice annually,
Rent Board Staff shall report to the Rent Board regardingthe occupancystatusof units
possessionof which has beenrecovered. . . within the prior thirty-six months."
Attached is a report detailing Measure Y evictions from July, 2011 through June, 2014.
tB.M.C. 13.76.130A.9b.
allows a landlord's spouse,child, or parentto evict a tenantfor occupancyin a rental unit.
The owner or relative must intend to live in the unit for 36 continuous months. Additionally, with few exceptions,
property owners may not evict seniorsor disabled tenantswho have occupied their rental units for five years or more
in buildings with four or more units.
2I25 Milvia Street,Berkeley,California94704
¡ FAX: (510)9814940
(981-RENT)o TDD: (s10)981-6903
TEL: (510)981-7368
¡ INTERNET: www.citvofberkelev.infg/rent
E-MAIL: [email protected]
MeasureY Reportto Eviction/Section8/ForeclosureCommittee
September12,2014
Page2 of5
SUMMARY OF ATTACHED REPORT
SinceJuly 1,201I therehave beenforty-four (44) MeasureY eviction noticesfiled with the Rent
Board. Of theseforty-four, fourteen notices were servedto tenantsin single family homes,
fourteennotices were submitted to tenantsoccupying a unit in a duplex, thirteen to units in
triplexes and three on fourplexes. Seechart immediately below.
Unit designation
Number of
notices sent
Unit currently
tenant-occupied'
Sinelefamily home
Duplex
Triplex
14
T4
13
a
J
U
Fourolex
a
J
2
I
Staff has conductedresearchinto theseforty-four casesby focusedmailing to eachrental unit
that receivedan eviction notice. The letter requestedinformation regarding the current
occupantsof the unit. Additionally, staff reviewed county records,property files, internal
databases,conductedfollow-up counselingwith tenants,and (in many cases)performed on-site
inspections.Of the forty-four notices,thirty-one were for owner-move-in and thirteen involved
qualifying relative move-in evictions. Sixteentenant households(36% of the total that vacated
their units pursuantto OMI notices) qualified as low-income and received $4,500 relocation
paymentsduring this period.
assistance
NARRATIVE DATA FROM STAFF RESEARCH
SineleFamily Homes- Of the fourteensinglefamily homesthat receivedowner-move-in(OMÐ
notices,thirteen were Costa Hawkins exempt tenanciesand one is currently in dispute as to how
many residentialunits are actually on the property with a RWN petition pending. Two OMI
evictionsare of Section8 tenants.
Of thesecases,staff s researchindicatesthat tenantsare still residing in three of theseunits; one
landlord rescindedthe notice to vacateand one property appearsto still be undergoing
constructionwork.
Duplexes- Four of the units in duplexeswhere tenantsreceivedOMI notices would now qualify
for exemptionunder B.M.C. 13.76.050F["golden duplex"]. Staff researchindicatesthat all of
the units in duplexeswhere tenantsreceivedOMI notices are currently occupied by owners or
relatives.
Triplexes - Thirteen OMI notices were servedduring the recentreporting period. One unit
receivedtwo separatenotices.Of the twelve tenanciesthat receivedOMI notices,one is still
intact. Nine have had or are having the owner or family membermoving in and two are still
underreview and investisation.
'The
data regarding tenant occupancy in this column only includes units where staff has determinedthat a unit is
tenant-occupied. There are several other casesthat staffcontinues to investigateto find out ifthe unit is tenant or
owner-occupied.
MeasureY Report to Eviction/Section 8ÆoreclosureCommittee
September12,2014
Page3 of5
Fourplexes- For the most recentreportingperiod,threenoticeshavebeenservedon tenants
residingin fourplexes.One caseis owner-occupiedand one casehashad a Costa-Hawkinsrent
adjustmentwith a new rent ceiling that has beenapprovedby the agencyafter investigationand
review.
The last casehas recently gone to Superior Court after the landlord filed a writ of administrative
mandatechallengingthe Board's decisionon appealof a Certificateof PermissibleRent Ceiling
after the agencycertified the rent atthat of the last tenant at the time of the MeasureY eviction.
The former tenant moved out pursuantto a SettlementAgreementwith the owner, and the owner
subsequentlyrentedto a new tenant and instituted a Costa-Hawkinsvacancy rent increase.'That
rent level was rejectedby staff and subsequentlychallengedby the owner. At hearing,the
agencydenied the owners' appeal.The Superior Court has recently ruled in favor of the Board in
this matter.
STAFF MONITORING
To ensurethat the tenant protections incorporatedinto MeasureY are not violated, Rent Board
staff endeavorsto contact occupantsliving in units that have received OMI eviction notices at
leastonce every six months. Staff sendsa letter to the unit notiffing the occupantof the proper
rent ceiling if s/he is a tenant in the unit. Staff also researchesinformation in our databasesand
county ownership information to ensurethat residencyinformation is correct. Furthermore,staff
conductssite visits to attempt to ascertainwho lives in theserental units when there is a question
as to whether a landlord lives in the unit after an OMI notice is sent.
When staff finds fhat atenant is living in a rental unit following an OMI eviction, staff may
contactthe owner andlor counselthe tenant to file a petition if the landlord is charging more than
the restrictedrent ceiling allowed underRent Board Regulation1016. Additionally, staff will
attemptto contactthe tenant(s)who were displacedfrom a rental unit due to an OMI notice to
explain the tenants' rights if staff determinesthat the landlord has violated the Ordinance,and
the tenant expressedan interest in being notif,redof changesin the rental unit's status.
OWNERSHIP HISTORY PRIOR TO OMI FILING
The committee has requesteddata showing the length of ownershiphistory prior to the filing of
OMI notices.The chartbelow detailsthis history for the most recentreportingperiod'
33 (75%) of the noticeswere given by ownerswith interestin the property for under 5 years.
11 (25%) of owners gave notices after owning the property for 5 years or more.
3
Rent Board Regulation 1016 makes clear that even when the tenant and owner sign an agreementthat the tenant is
leaving voluntarily after an owner has rescindedan owner move-in notice, the presumption still exists that the tenant
left beõauseof the owner move-in notice and the rent will subsequentlybe restricted for the first tenancy following
the vacancy.
MeasureY Reportto Eviction/Section8/ForeclosureCommittee
September12,2014
Paee4 of5
This data can be broken down fuither, for example:
OwnershipPrior to notice # props.
20
lessthan 1 year
>:1. lessthan 5
13
5 to 10years
More than 10 years
5
6
CONCLUSIONS
During the pastthree-yearperiod (July 2011-June2014)the Board receivedatotal of 44
MeasureY eviction notices.During the initial three-yearmonitoringperiod (December2000December2003),we received 110 eviction notices,over two and a half times the rate as the last
three years.Equally notable, in the three months immediately precedingthe adoption and
enactmentof MeasureY (September,OctoberandNovember2000) 47 noticesfor owner or
relative occupancywere filed. More notices for owner occupancywere filed in the three months
precedingpassageof Measure Y than were filed in the past 36 months. By any measure,the
passageand diligent implementation of MeasureY have significantly reducedthe displacement
of long-term tenants,which was commonplaceafter the imposition of vacancy decontrol.
One condition establishedby Measure Y was a requirementthat the owner provide a $4,500
relocation assistancepayment to any displacedlow-income tenant who has residedin the unit
for one year or more. Sincepassageof MeasureY roughly 25Yoof thosehouseholdsreceiving
eviction notices for owner occupancyhave qualified for and benefitedfrom the low-income
relocation assistanceprovisions of the ordinance."This number is particularly noteworthy if we
of MeasureY eviction noticesare later rescinded
considerthat historically between25o/o-300lo
and the tenantsremain in the unit. When we back-outtheserescindedunits, the percentof
MeasureY tenantsreceivinglow-incomerelocationis over 30% of thosehouseholdsbeing
displaced.
The chart below breaksdown in six-month periods,the number of Measure Y eviction notices
the Boardhasreceivedsince September2000.The first reportingperiod on the table below only
reflects a four-month period. As noted above,47 of the 56 evictions occurred during the three
months prior to the adoption of MeasureY. While we did not track the number of owner
move-in noticesreceivedprior to September2000, it was reportedthat the number of notices
issuedduring the period from December 1997to December2000 was similar to or greaterthan
the four-month period from September- December2000, before MeasureY becamelaw.
Attachment 1: Table of MeasureY noticesfiled with the Rent Board for the period between
September2000 through June 2014.
Attachment 2: Sampleof letter sent to all rental units that receivedan owner-move-in eviction
noticebetweenJuly 201land June 2014.
o
Sixteenhouseholdsthat received OMI eviction notices during the three year period reviewed in this report
requiredby the Ordinance.
qualif,redfor and receivedthe $4,500 relocationassistance
MeasureY Reportto Eviction/Section
SlForeclosure
Committee
September
12,2014
Page5 of5
Measure Y Eviction NoticesFiled With BerkelevRent Board
Date of Eviction Notice
Number of Notices Received
- December
September
2000
*(only four months)
January- June2001
Julv- December
2001
Januarv- June2002
56
July- December
2002
January- June2003
32
2l
t7
9
13
July- December
2003
January- June2004
l0
July- December
2004
January- June2005
5
July- December
2005
Januarv- June2006
July- December
2006
January- June2007
t4
t6
6
10
I
7
July- December
2007
January- June2008
2
Julv- December
2008
January- June2009
7
Julv- December
2009
January- June2010
July- December
2010
January- June2011
I
7
7
6
J
6
July- December
2011
January- June2012
2
Julv- December2012
Januarv- June2013
5
Julv- December
2013
Januarv-June2014
5
10
J
19
Rent StabilizationBoard
February28,2014
Berkeley,CA947l0
RE:
Owner Move-in eviction
"t-Berkeley
Dear occupant:
Our recordsindicate that a prior tenantin your unit receivedan eviction notice so that the unit
could be occupied by the owner or a closerelativeof the owner. Berkeley Municipal Code
section 13.76.I30.A(9Xp) requiresthe Rent Board to monitor your unit for three yearsto ensure
that the unit is, in fact; occupiedby the owner or a relative of the owner. Therefore,you will
receive a letter like this onceevery six monthsduring this threeyearperiod. If you are the owner
or a non-rent payingparent,spouse,domesticpartner,or child of the owner, it is not necessany
for you to respondto this letter.
If you are not the owner and are payingrent, your rent should not exceed:
.57
$2,301
If you are paying rent in excessof this amount,pleasecontactme by March 17, 2014 at (5 10)
981-4903. Also, Rent BoardCounselorsareavailableto explainyour rights and options,
including the procedurefor recoveringany rent overchargesyou have paid. An explanationof
your rights may also be found on the Rent Board's web site: www.ci.berkeley.ca.us/rent.
Sincerely,
Matthew Siegel
StaffAttorney
Berkeley Rent Stabilization Program
2125MilviaStreet,Berkeley,
California94704
TEL: (510)981-7
368! TDD:(510)981-6903
! FAX: (510)98r-4940
E-MAIL: [email protected]
! INTERNET:www.ci.berkeley.ca.us/renf