Tag: FlipKey

By Posted on Posted in Issues

Businesses do not like to be regulated. In fact, Airbnb sued San Francisco, Santa Monica, and New York City quite some time ago about the same issue they have now threatened to sue Berkeley about – yet in all the discussions City Council had about short term rentals (STRs), they have never discussed those lawsuits?

Airbnb and HomeAway say they are protected when they advertise illegal rentals just like YouTube and Yelp are protected when they host user content. Not exactly the same thing? Craigslist was recently found not to be responsible for housing ads that ban minorities, with the court saying it would be like FedEx looking in every package. However, Airbnb makes money directly off the services it markets and also already claims to vet the listings in other ways. Are short term rental hosting platforms like social media, or are they like e-commerce sites?

Airbnb has invoked Section 230 of the Communications Decency Act. As San Francisco Deputy City Attorney Robb Kapla said, Section 230 doesn’t apply. “San Francisco is regulating commercial transactions, not speech,” he said.

Also, some Council members have said to me that if Berkeley doesn’t give in to the mega corporation’s threats, then Berkeley’s new STR Law could be put on hold – that would be great! Right now, short term rentals are just illegal! Why not just enforce that so we can have those 200-400 homes for rent again?

That is the real problem with Short Term Rentals in Berkeley – that the city staff and city leaders have refused to enforce ANY short term rental provisions while trying to get a law legalizing some of the rentals in place. Berkeley is sending the wrong message – essentially telling owners it’s OK to break the law. By changing our new law in response to a threat instead of joining Santa Monica and San Francisco in fighting for our housing, Berkeley is sending another wrong message.

San Francisco’s law was not put on hold, just enforcement of the provision fining platforms who list illegal hosts. So why doesn’t Berkeley join on the side of SF and Santa Monica the way that HomeAway and some big property managers have joined on the side of Airbnb? If Berkeley won’t fight the lawsuit, why not file an amicus brief?

Instead the City Council voted unanimously to edit the new law – a law that has had countless public hearings and been debated for almost three years – just the way Airbnb asked them to!

Additionally, the Council report our new renter-Mayor Jesse Arreguin submitted said that changing this key enforcement provision will cost Berkeley nothing. But Berkeley contracts with an outside vendor to (not do) its enforcement. If every ad has to show the host has registered, how much easier will it be to see who is legal and who is not? How much money will that save Berkeley?

Again, it would also be really easy to see who is breaking the law if we just went back to not allowing any short term rentals, and enforced that! Isn’t that what our leaders should be saying to Airbnb? Isn’t this just a big game of chicken?

Then the item from Jesse Arreguin goes even further: it says Berkeley will lose money if Council doesn’t do what Airbnb wants, not because we will be sued, but because we won’t get revenue from short term rental listings. Like we just sold Berkeley’s housing rights? Actually we could generate a lot of money by fining all the people who are already breaking the law.

Shouldn’t the City Council have at least held a closed session to discuss pending litigation before they let Airbnb off the hook?

Santa Monica responded to their lawsuit – which actually claims the law violates the US Constitution – by making their rules even stricter and demanding any business renting for the short term appear on a public city registry just like other small businesses do. This is something BTU asked for in Berkeley, so we could make complaints and track enforcement by being able to see who is legally registered. But even Berkeley’s new City Council would not do this for tenants. The registry is not public.

In San Francisco, New York, and many other places they have moved toward more and more restrictive laws because owners just continue to ignore them. In San Francisco, Airbnb made a big show of taking 900 of the thousands of illegal listings off of their site. In New York, you can now call 311 if you think your neighbor is running an illegal hotel.

Santa Monica recently won a case where a large landlord created fake profiles to get around the local laws. BTU has found several owners with fake profiles, including some who rent all the rooms in one house under two different “host profiles” to disguise that they are renting a whole unit, since renting rooms is allowed under Berkeley’s new law.

Another trend we see in Berkeley is that large landlords who had complaints filed against them just move their listings away from Airbnb and HomeAway and try to hide them on Sabbatical Homes, Flipkey, or even Craigslist.

Berkeley Council Has Second Reading April 25th – it’s not too late!

Meet the New Boss, Same As the Old Boss?
“After over two years of discussion and a lengthy community process, the City Council voted on an ordinance that would regulate Short Term Rentals (STRs) in a balanced way that ensures people can rent out a spare unit, while preventing the exploitation of converting units into mini-hotels. The ordinance provides a method of enforcement that would make it easy to identify violators, and prevent Accessory Dwelling Units from being used as STRs (a position 8 out of 9 members of the Council agreed on). However, during the second reading of the ordinance, last minute changes were proposed that jeopardized the entire process. Despite a previous consensus, several Councilmembers are backtracking as a result of intensive lobbying from Airbnb, which among other things would make it very difficult to enforce.”
Jesse Arreguin, July 2016 Newsletter

Airbnb Letter to Berkeley and City Council Response
“After consultation with AirBnB representatives and City Attorney, it is prudent to strike this section to avoid unnecessary litigation so the ordinance can move forward and so AirBnB can work cooperatively with the city in implementation.”
2017-04-04 Item 11 Amending BMC Section 23C 22 050, Short-Term Rental-1

San Francisco Lawsuit: Initial Ruling Against AirBnB
“City Attorney Dennis Herrera applauded the ruling. “I am grateful for Judge Donato’s thoughtful ruling recognizing that just because Airbnb and Homeaway conduct their business online, they are not exempt from any regulation of their commercial transactions,” he said in a statement. “Online businesses don’t get a free pass from the types of regulations that apply to other businesses in San Francisco.”
http://www.sfgate.com/business/article/Airbnb-rebuked-in-SF-lawsuit-10602042.php

Why San Francisco is Winning
“James Donato, a US District Court Judge for California’s Northern District, didn’t see it that way. In November 2016, he dealt a major setback to Airbnb when he rejected the company’s request to block the ordinance. Donato didn’t buy Airbnb’s Section 230 argument. As he put it, San Francisco’s ordinance doesn’t treat Airbnb as the publisher of illegal rental listings, nor does it force Airbnb to police its website and remove such listings. It simply holds Airbnb accountable for its own conduct: providing “booking services” in connection with unregistered units.”
https://backchannel.com/the-most-important-law-in-tech-has-a-problem-64f5464128b6

1431 Allston -Multiple Rooms under different “Hosts”

 

Details About Each Step of the SF Case:
http://ia601908.us.archive.org/8/items/gov.uscourts.cand.300367/gov.uscourts.cand.300367.docket.html

Airbnb Pulls 900 Illegal SF Listings
http://www.sfweekly.com/news/airbnb-ousts-nearly-1000-sf-home-listings/

Santa Monica Sued In September
“The goal of Santa Monica’s legislation is to eliminate so-called “rentalpreneurs”, people who use services like Airbnb to lease out several units that, critics argue, would otherwise be used as housing stock in L.A.’s historically tight rental market. For example, a group of evicted tenants sued their former landlord last December, after their old homes showed up in Airbnb’s listing pages.”
http://laist.com/2016/09/03/airbnb_sues_santa_monica_over_airbn.php

Santa Monica Responds by Making Law Tougher
“The City Council voted 4-0 to require all “home sharing” hosts to not only register with the City but have their information published on a special registry compiled by the City. Officials said it is not unusual for businesses to opt out of such lists, but that eliminating the choice in this case will make it easier for the City to catch hosts who are operating without having registered.”
http://www.surfsantamonica.com/ssm_site/the_lookout/news/News-2017/January-2017/01_12_2017_Santa_Monica_Gets_Even_Tougher_on_Short_Term_Vacation_Rental_Hosts.html

Details on Santa Monica Lawsuit
http://strfacts.com/wp-content/uploads/2016/02/Airbnb-Santa-Monica-Complaint.pdf

More About the Law Airbnb Invoked
“In Airbnb’s case, the short-term rental giant is arguing that although some people might be breaking the law by listing property on Airbnb without first registering with the city, Airbnb isn’t responsible — and can’t be held accountable — for what people decide to list on its platform.”
http://www.latimes.com/business/technology/la-fi-tn-airbnb-free-speech-20160629-snap-story.html

Tech Industry Wants Its Shield
“…Detractors say the law has been applied too broadly, and judges have pushed back in a string of recent cases. Section 230 was intended to protect free speech online by removing liability for a newspaper, say, for libelous comments posted on their websites by readers.
But Deputy City Attorney Robb Kapla said Section 230 doesn’t apply.” San Francisco is regulating commercial transactions, not speech,” he said.”
http://www.reuters.com/article/us-tech-court-idUSKCN10T0ET

Santa Monica Wins Another Case
“The city accused Globe of hiding its activities from investigators through subterfuge, which according to news reports included creating phony Airbnb profiles for owners. Globe is appealing.”
https://www.courthousenews.com/class-home-sharers-can-sue-santa-monica/

 AirBnB Drops Lawsuit Against New York
“Airbnb on Friday agreed that it would drop the suit as long as New York City enforces the new law only against hosts and does not fine Airbnb. The settlement takes effect on Monday.”
https://www.nytimes.com/2016/12/03/technology/airbnb-ends-fight-with-new-york-city-over-fines.html?_r=0

Craigslist Not Responsible for Housing Discrimination
“Traditional statutes are now being applied to e-commerce models. For instance, the anti-discrimination clauses of the United States (“US”) Fair Housing Act (“FHA”) have been examined in the case of online classifieds companies like Craigslist. And, a clause under the Communication Decency Act (applicable to explicit content) has been applied to this case.”
http://www.ibls.com/internet_law_news_portal_view.aspx?s=latestnews&id=2014

Related Issue – Renters Subletting

In Berkeley, the new STR law prohibits renters from doing a short term rental without permission from the owner. BTU didn’t oppose this even though it seems unfair on the surface. That is because we hear about renters getting evicted for using platforms like Airbnb. Not only do most written leases prohibit subletting and assignment (like taking money to let someone else use your apartment) – the Rent Ordinance also does not allow a master tenant (person on the lease) to charge more than the rent controlled rent. That means if the rent is $2000 a month, the rent is about $66 a day, and charging more than that is against the law.

Property Manager Sues AirBnB
“It is not acceptable to us that Airbnb actively promotes and profits from deliberate breaches of our leases, and does so in utter disregard of the disrespectful and unsafe situations created for our full-time residents and their families,” Aimco CEO Terry Considine said in a statement.”
https://techcrunch.com/2017/02/18/a-big-apartment-management-company-is-suing-airbnb/

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Thanks to California Senator Diane Feinstein, there is a national movement to call for the Federal Trade Commission to investigate how commercial landlords using short term rental platforms are impacting housing shortages and contributing to high rents nationwide.

Now you can join their calls for a national investigation.
Airbnb-National-Petition

 

“Senators Dianne Feinstein of California, Brian Schatz of Hawaii and Elizabeth Warren of Massachusetts wrote a letter to FTC Chairwoman Edith Ramirez requesting the agency “study and quantify” the prevalence of commercial renters using Airbnb, HomeAway Inc., VRBO and other short-term rental services. The letter said activity on those sites can result in housing shortages and drive up prices.”
http://www.bloomberg.com/news/articles/2016-07-13/u-s-senators-ask-ftc-to-probe-airbnb-s-impact-on-housing

Feinstein, Elizabeth Warren and other US Senators are also calling for investigation into charges of race discrimination on sites like Airbnb:
http://www.reuters.com/article/us-usa-congress-warren-housing-idUSKCN0ZT2WI

Democrats Discuss Airbnb Problems…
RACISM: http://thehill.com/policy/technology/289105-airbnb-race-controversy-comes-to-dem-convention
BAD DATA: https://www.theguardian.com/technology/2016/jul/27/airbnb-panel-democratic-national-convention-survey

…But Party Leaders Boost Short Term Rentals Use During Convention
“Like Grucella, one-quarter of all Philadelphia-area hosts for this week’s DNC were new to the role. And their homes were in demand. Airbnb estimated its Philadelphia partners would welcome over 5,000 guests for the convention, a 250 percent jump from a typical week.”
http://www.philly.com/philly/business/20160730_Airbnb_has_a_busy_week_in_Philly.html
“About 40,000 people are in Philadelphia for the convention, and Airbnb says 7,000 of them are using its home rental services, staying in spaces rented out by 3,000 hosts.”
http://www.bloomberg.com/news/articles/2016-07-26/airbnb-and-uber-to-democrats-you-need-us

Berkeley has passed up another opportunity to be a leader of policies that protect affordable housing by delaying any vote on short term rentals, even after a year of debate. 

Berkeley’s next hearing on Short Term Rentals is expected to be Wednesday September 7th at the Planning Commission.

Video about Airbnb Race Discrimination:
https://youtu.be/dOEd4h-pQfg

Congressional Black Caucus On Airbnb Racism
“Members of the CBC are deeply concerned about recent reports of exclusion of African-Americans on the Airbnb platform, and we sincerely hope the leadership of Airbnb will take the issue of discrimination seriously and implement common sense measures to prevent such discrimination and ill-treatment of its customers in the future.”
http://blackamericaweb.com/2016/06/27/airbnb-racism-allegations-head-to-capitol-hill/

More on Warren’s Call for Investigation:
“Opponents argue that Airbnb, a platform that allows users to rent out their homes to strangers, is aggravating housing crises in cities across the country by flooding markets with short-term rentals and, as a result, reducing much-needed affordable housing. While Airbnb claims that many of its users are occasionally renting out rooms to make extra cash, some experts who have studied the limited data available argue that the platform is allowing people to operate sophisticated hotel businesses while dodging taxes and other key regulations.”
https://www.theguardian.com/technology/2016/jul/13/elizabeth-warren-airbnb-government-investigation

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IMG_6926

Short Term Rentals

We have one step forward and two steps back:
The good news is that the City Council voted July 7th to demand enforcement of the existing law prohibiting short term rentals if an owner has three or more units offered as vacation rentals in Berkeley. BTU is sending updated info about the owners we complained about last summer – and we would like you to send any information about big landlords breaking the law to the City Council, and to us, too!
The bad news is that the Council majority may be selling tenants out for some tax revenue so they can cut a deal with megacorps like AirBnB. After promises from Bates and Capitelli to continue the ban on short term rentals of units that are not someone’s home, they voted to “have staff consider the possibility of grandfathering in permits for accessory dwelling units currently being rented out on a short-term basis.” In other words, if you own a duplex and are following the law, you are screwed, but people who have been breaking it might be allowed to legalize their small business.

“After debating some of the finer points about what the city’s ordinance should look like — particularly after a preliminary vote in June — officials agreed to have staff do further research before ratifying the overall law. In the meantime, however, officials want to begin immediately to address the issue of owners with multiple units who are flouting the rules. “It’s currently against the law and it will continue to be against the law,” Worthington said. “Therefore there’s no reason to delay.”
http://www.berkeleyside.com/2016/07/11/berkeley-council-votes-to-crack-down-on-short-term-rentals-of-multiple-units-by-same-owner/comment-page-1/

Durant Demolition Granted
(with Unknown Mitigation)

We have mostly a success story on our continuing opposition to the demolition of 18 rent controlled units on Durant. This is because while the BTU/ASUC appeal was going through a ridiculous year-long city process, the Council passed a new version of the demolition ordinance which requires a mitigation fee for the loss of rent control.

However, the Council did not set the fee. State law says you have to show a direct relationship between the level of a mitigation fee and the damage to society that the money is meant to offset. Council first commissioned a “nexus study” on demolition of rent controlled units several years ago, but they say they still don’t have it back. Some activists think they are waiting until after the election to make an unpopular vote.
BTU plans to demand that the fee be as high as the study says it needs to be to provide for one-for-one replacement of rent controlled units with real affordable housing.

2631 Durant In Daily Cal
“We don’t inherently oppose tearing-down and replacing the building,” Lewis said in an email of the project that would add 38 housing units to the city of Berkeley. “However, we do oppose incentivizing landlords to destroy habitable, low-cost housing in order to try to make a profit.”
http://www.dailycal.org/2016/07/13/lawsuit-prolongs-struggle-2631-durant-ave-complex/

Berkeley Demolition Appeal in SF Chronicle
Berkeley’s approval of demolition increases worries over rent – San Francisco Chronicle

Lawsuit on Durant Demolition
Developer Orloff claims there is an inherent “right to develop.”
“…plaintiffs fault Berkeley for “its enactment of legislation that illegally and unconstitutionally requires property owners to transfer massive sums of money to the City and tenants in order to exercise an essential right of property ownership: the right to develop property.” They seek, among other relief, a declaration from the court that the ordinance violates the Fifth Amendment of the Constitution and its Due Process Clause, and is therefore invalid….The city, in its motion to dismiss, argues that there is a definite nexus between mitigation fees and the public purpose of mitigating the loss of affordable housing…”
http://www.eastbaytimes.com/breaking-news/ci_30145194/berkeley-landlord-sues-city-over-demolition-fees

In Other News

2017 Berkeley Budget Cuts Homeless Services
The City took money from long-established programs to pay for a new “hub” for homeless intake.
http://www.dailycal.org/2016/07/04/several-berkeley-nonprofit-homeless-services-partially-defunded-by-2017-city-budget/

Evictions from Unpermitted Units in SF
“Though S.F. has proven to be an inhospitable place for renters the last several years, the circumstances surrounding this eviction are particularly startling. It seems that Malliett’s new landlords—Mathieu Verbeeck, a VP of product development at Mubi, and Catherine Crevels, a marketing manager at Intuit—are testing out a novel strategy for ejecting tenants. They contend that Malliett and her daughter are causing a “nuisance” by living in a unit that lacks the proper permits. The Board of Supervisors has…”
http://www.modernluxury.com/san-francisco/story/tech-workers-evict-kindergarten-teacher-mission-apartment-using-appliances

Where Do Renters Evicted from SF Move?
http://antievictionmappingproject.net/relocation.html

San Jose Needs a Demolition Mitigation
https://www.theguardian.com/technology/2016/jul/07/silicon-valley-largest-eviction-rent-controlled-tenants-income-inequality

First Time Buyers Screwed Too
“The only cities that fared worse than Oakland and Berkeley were Miami Beach, Florida (299) and Newark, New Jersey (300).”
http://sanfrancisco.cbslocal.com/2016/07/18/oakland-berkeley-ranked-worst-u-s-cities-for-first-time-home-buyers/

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After a year of public hearings and debate, Berkeley Mayor Tom Bates is proposing to change the Short Term Rentals law which Berkeley City Council passed on May 31. Every law in Berkeley must be voted on twice, and in between vote one and vote two, Berkeley leaders are appearing to waiver.

Berkeley City Council votes Thursday, July 7th at a special 5:30pm meeting.

Bates has introduced a proposed contract with Airbnb to collect tax for Berkeley if Berkeley does not compel Airbnb to share any data that might allow our city to enforce the law and protect our housing supply. This contract comes at the same time that Oakland has cut a similar deal, but while San Francisco is increasing fines and being sued by the corporate platform.

The new law is already a compromise which allows residents to rent their homes, or rooms in their homes, while continuing the (as yet unenforced) ban on rentals of empty homes. The reason that rentals of less than 14 days have been against the law in Berkeley is because such rentals allow an owner to get around tenant protections and rent control.

It is important that Berkeley Tenants who have not written to Council since May 31 send them a letter asking that they approve the second reading of the law which has gone through a long public process already. It is important that everyone read this ridiculous contract with Airbnb and let the Mayor know that he can’t give away our hard-won tenants rights as one of his last acts in office!

WE CANNOT ALLOW HOUSING TO BE CONVERTED TO HOTEL ROOMS

WE MUST REQUIRE LICENSE NUMBERS ON ADVERTISING

BERKELEY SHOULD NEVER SIGN A CONTRACT WITH AUDIT RESTRICTIONS

Proposed Berkeley Contract With Airbnb http://www.eastbayexpress.com/SevenDays/archives/2016/06/29/will-berkeley-cut-a-deal-with-airbnb-or-vote-to-regulate-short-term-rentals

The Contract Offer:
– Stays over 29 days in duration will not be subject to tax
– Berkeley waives all taxes not paid before contract date
– The Department of Finance will not directly or indirectly audit any Host
– Airbnb will not provide personally identifiable information regarding its Hosts
– Berkeley can audit Airbnb no more frequently than every four years
2016 STRs air bnb contract

NY TIMES: SF and NYC Crack Down on Illegal Hotels
“Airbnb sued San Francisco over a unanimous decision on June 7 by the city’s Board of Supervisors to fine the company $1,000 a day for every unregistered host on its service. If Airbnb does not comply, it could face misdemeanor charges. The suit follows a bipartisan move by New York lawmakers who voted this month to heavily fine anyone who uses Airbnb to rent a whole apartment for fewer than 30 days, a practice that has been illegal in the state since 2010.”
http://mobile.nytimes.com/2016/06/29/technology/airbnb-sues-san-francisco-over-a-law-it-had-helped-pass.html?referer=https://www.google.com/

Airbnb Sues San Francisco
The largest corporation making money off illegal hotels is suing the City of SF over their new policy of fining the hosting platform for listing illegal rentals.
http://fortune.com/2016/06/27/airbnb-san-francisco-lawsuit/

SF WANTED Posters for Illegal Hotel Operators
http://www.nbcbayarea.com/news/local/Wanted-Flyers-Across-Chinatown-Accuse-12-San-Francisco-Residents-of-Airbnbing-Our-Community-384774561.html

LA City Attorney Files Suit Over Illegal Hotels
“Given that shortage of affordable housing, illegally converting rental units to hotels or short-rentals has got to stop,” City Atty. Mike Feuer said at a news conference Monday. “My office is going to intervene to preserve rent-stabilized units and restore those units when we allege they’ve been unlawfully taken off the market.”
http://www.latimes.com/local/california/la-me-ln-landlords-illegal-rentals-20160620-snap-story.html

By Posted on Posted in Issues

Short Term Rentals held over by Berkeley City Council until Thursday July 7. BTU will post an update in a couple of days regarding the Mayor’s last-minute introduction of a proposed contract with Airbnb.

Durant Demolition approved under new demolition law which calls for mitigation of the loss of rent controlled housing through a fee to fund new low-income housing – however, the fee has not been set yet! Also, that developer has filed a lawsuit against the new version of the law.

Two Competing Landlord Taxes on Berkeley Ballot
“Depending on the business license tax rate increase, the CSAH measure would fund 40 to 70 units annually, while BRHC’s would pay for just 12, Barton added. The measures also differ on exemptions. The apartment owners’ measure raises taxes on every rental housing unit currently taxed.

Gulbransen says the lack of exemptions makes their measure more equitable. The CSAH measure exempts tax increases on low-rent units housing tenants living under rent control since 1998, units rented under federally subsidized programs and permanently affordable inclusionary units in newer buildings.”
http://www.mercurynews.com/breaking-news/ci_29928806/berkeley-voters-could-face-dueling-robin-hood-tax

“But in California, the profits from ever-increasing land values aren’t shared for the public good. They’re collected by landlords in the form of higher rents…. But a broad-based coalition of Berkeley renters, affordable-housing activists, political leaders, and even some landlords are trying to revive the idea of a land tax. And they want to dedicate the millions it could raise to affordable housing.”
http://www.eastbayexpress.com/oakland/berkeley-city-council-approves-ballot-measure-to-tax-landlords-and-create-affordable-housing-fund/Content?oid=4818958

“The additional tax would raise an additional $5 million a year from landlords over the current $3.5 million, for a total of $8.5 million a year, according to estimates by the Committee for Safe and Affordable Housing, which supports the measure. Apartments rented to Section 8 tenants, apartments with tenants in occupancy since before 1999, and certain other properties, would be exempt from the tax increase; there also would be a hardship exemption. The measure would prohibit passing the business tax increase along to most tenants. Proceeds of the tax increase would facilitate 45 affordable housing units per year.”
http://www.eastbaytimes.com/breaking-news/ci_29974957/berkeley-council-oks-funding-measures-november-ballot

Rent Board Candidate Igor Tregub
Igor is also a member of the BTU Steering Committee.
http://www.dailycal.org/2016/05/26/igor-tregub-files-run-rent-stabilization-board/

UCB Report: Market Rate Housing Doesn’t Prevent Gentrification
http://www.eastbayexpress.com/SevenDays/archives/2016/05/27/uc-berkeley-report-lao-wrong-about-market-rate-housing-panacea
see also
https://news.berkeley.edu/2016/05/23/researchers-stress-role-of-subsidized-housing-in-easing-affordability-crisis/

Council Talks About Housing Plan
 “Proposals approved for implementation or further study ran the gamut from financial incentives and taxes, to rezoning, red tape-cutting, beefing up the city’s Affordable Housing Trust Fund and protections against eviction. Many will be the subject of a larger council discussion on housing tentatively scheduled for early fall.”
http://www.eastbaytimes.com/breaking-news/ci_29919572/berkeley-backs-package-steps-address-housing

Jesse Arreguin Discusses Housing Policy
http://www.dailycal.org/2016/05/31/berkeley-city-must-take-comprehensive-approach-to-housing-crisis/

UC Students Have Trouble Accessing Rights
http://www.dailycal.org/2016/06/20/housing-struggles/

San Francisco Tenant Takes On Costa Hawkins in the Media
http://mediaoneservices.com/mary-catherine-wiederhold-and-neil-hutchinson-62816/

Affordable Housing Bond on Alameda County Ballot
http://www.ebho.org/2012-02-07-00-50-21/regional-policy-a-land-use/alameda-county-housing-bond

Concord Wants Rent Control!
“The full City Council is scheduled to discuss the rental situation in Concord and the policy options available to the council on July 26.”
http://www.eastbaytimes.com/concord/ci_30066419/rent-control-hot-topic-concord

By Posted on Posted in Issues
Owners appear to move into this airstream when they rent their home in West Berkeley on AirBnb.
Owners appear to move into this airstream when they rent their home in West Berkeley on AirBnb.

EDIT: Planning Commission final public hearing 1/20
 Housing Commission Strengthens Recommendations for Local Law
Berkeley’s Housing Advisory Commission sent a follow-up to their earlier short-term rentals recommendations. The HAC did this both because the draft ordinance does not seem to reflect their recommendations and because there were additional issues to address.
“During the meeting, Darrow expressed concerns that current regulations could allow owners to turn rent-controlled housing units into short-term rentals by evicting all tenants in a building under the Ellis Act, a state law that allows property owners to evict tenants in order to “go out of business.”
According to the new language approved by the commission at the meeting, if an owner evicts a tenant from a unit through no fault of the tenant, the owner must wait five years before the property can be turned into a short-term rental. Additionally, owners must obtain a business license through the city and list their license number in their rental listings.”
http://www.dailycal.org/2015/12/06/citys-housing-advisory-commission-approves-short-term-rental-recommendations/

Draft Law Making Final Rounds
The draft of Berkeley’s Short Term Rental (STRs) ordinance is now available to the public. The next step is for the Planning Commission to hold a final public hearing, then the law will go back to the City Council, which last discussed the matter in July. Unfortunately, the staff report specifically says they did not address concerns from the Housing Commission in the draft.
It is also unfortunate that the draft law seems to contravene two Council referrals (one on ADUs and one on STRs) by allowing accessory dwelling units (ADUs) on the same property in which an owner occupies another unit as her primary residence to be used as hotel rooms. As usual, the language in the draft law is unclear:
“Host present” means the host is living at the premises of the dwelling unit that is being used for STRs during the short-term rental period or living in the Primary Residence or the Accessory Dwelling Unit.”
Read the Draft: 2015-12-16_Information_Item_Draft Short Term Rental Ordinance-Combined
The Planning Commission is expected to hold a public hearing on January 20 or February 3rd.

Berkeley Owners Sent Warning Letters
At the 4×4 Committee meeting in December, Planning Director Eric Angstadt told Council leaders and Rent Board Commissioners that the City Manager’s office sent warning letters to several STR operators who are violating Berkeley’s current ban on rentals of less than 14 days. BTU has done a public records request to see if letters were sent to the 4 owners BTU filed complaints about in May and June of 2015.

STRs in the News

Ousted Tenants Sue In Los Angeles
“Their rent-controlled building allowed them to enjoy below-market rents of less than $2,000 a month for their two-bedroom pads in the upscale neighborhood. That came to an end in late 2013 when the owners evicted them under the Ellis Act, a state law that allows landlords to get out of the rental business….Within weeks, their apartments began appearing on Airbnb — a short-term rental site geared at tourists — for nightly rates that could total $15,000 a month, they said.”
http://www.latimes.com/local/westside/la-me-1217-ellis-suit-20151217-story.html

Airbnb Fined for Offering Lodgings Without Permits in Barcelona
“With the aid of a software programme, the town hall detected listings for 1,891 lodgings that did not have proper permits on Airbnb, and another 3,929 on HomeAway, it said in a statement. Each have been issued a fine of €60,000 ($65,000).
Since taking office in June, Barcelona mayor Ada Colau, a former anti-eviction activist, has kept her pledge to try to curb a boom in visitor numbers that she fears could drive out poor residents and spoil the charm of Spain’s second largest city.”
http://www.thelocal.es/20151222/barcelona-city-hall-fines-airbnb

By Posted on Posted in Issues
Why don’t City inspectors notice these problems?
Why don’t City inspectors notice problems like this balcony on San Pablo?

Balcony Lawsuit Says Owners Knew About Problems
If we had the proactive inspections program the City Council will discuss on December 1, then this tragedy may have been prevented.
“The lawsuit claims that Segue used cheaper materials to construct the balcony, making it more susceptible to water damage, and left it exposed to rain during construction in 2005…. Previous tenants reported seeing mushrooms – a clear sign of rot.”
http://theindianrepublic.com/lawsuits-filed-in-deadly-berkeley-balcony-collapse-reveal-3892.html

Tenants Reported Signs of Rot Weeks Before Deadly Balcony Collapse
http://www.mercurynews.com/news/ci_29110467/
“Library Gardens was only 8 years old when the balcony collapsed, leading many to wonder how such a new building could have such a catastrophic structural failure. The city of Berkeley released a report that identified dry rot as the only contributing factor to the structural failure of the balcony, but the city said determining the reason for that failure was beyond the scope of its analysis. The lawsuit claims to have identified the reason.”
http://www.berkeleyside.com/2015/11/13/berkeley-balcony-collapse-contractor-used-inferior-wood-and-owner-ignored-signs-of-rot-including-mushrooms-sprouting-from-the-surface-lawsuits-allege/

Berkeley Tenant Fights for Garden
Berkeleyside: “Gorell moved into the rent-controlled, one-bedroom apartment in 1979 and began to add plants to the front and side of the building soon after that. Gene Anderson, the son of the original owners, and his wife used to visit annually and would compliment Gorell on how he had turned the space into an alluring swath of green, according to Gorell. Gorell also wrote to the Andersons in 1992 to describe his plans for the garden. There were no complaints, he said.”
http://www.berkeleyside.com/2015/11/11/lush-berkeley-garden-at-center-of-tenant-landlord-dispute/
Daily Cal: http://www.dailycal.org/2015/11/11/berkeley-tenant-fights-to-preserve-garden-in-ongoing-dispute-with-landlords-property-managers/ 

Activists Say They Are Targeted for Eviction at Redwood Gardens
https://www.indybay.org/newsitems/2015/11/11/18779862.php

Berkeley’s Largest Landlord Leaving Town
http://www.berkeleyside.com/2015/11/16/equity-residential-to-sell-8-berkeley-apartment-buildings/

Rent Wars
Excellent overview of California’s housing crisis and current tenant’s movement.
“Activists in cities that have long had rent control laws are pushing for stronger measures. In Los Angeles, activists like Larry Gross, Director of the Coalition for Economic Survival, want the city to stop allowing tenants to be evicted so that speculators can demolish their rent-controlled buildings.”
http://www.beyondchron.org/the-new-rent-control-wars/

Alameda Tenants Get Moratorium
Something is better than nothing!
“The Alameda City Council on Wednesday approved a 65-day moratorium on rent increases above 8 percent and no-fault evictions. Tenant advocates were hoping for an outright moratorium as the city considers various permanent tenant protections, including banning evictions without cause.”
http://www.contracostatimes.com/news/ci_29078395/bloody-alameda-meeting-highlights-tenants-growing-ire

Berkeley Fair Election Initiative
“But when elections are determined by fundraising alone, communities pay the price. And when the perception is that only money matters in campaigns, it erodes public faith in government. With voter turnout at historic lows, we need to do everything we can to increase participation.
What if I told you there was a proposal to encourage local candidates to spend more time talking to voters and less time dialing for dollars? What if this proposal could diversify the local donor pool, encourage more voters to participate and make City Council more responsive to the citizens they are elected to serve?”
http://www.berkeleyside.com/2015/11/06/lets-amplify-local-voices-in-berkeley-city-hall/

Evictions and Air BnB
“Data analysis of Airbnb usage in San Francisco tells a decidedly different story about who is benefiting. Although Airbnb refuses to share its numbers, a 2014 report commissioned by the San Francisco Chronicle found that of the (at the time) nearly 5,000 homes, apartments, and private or shared rooms for rent via Airbnb, two-thirds were entire houses or apartments with no owner present during the rental period, and almost a third of Airbnb rentals were controlled by people with two or more listings. Some of the “whole house” or “whole apartment” rentals are from hosts who happen to be away. But many others are being rented out by professional property managers who are handling multiple Airbnb rentals on behalf of absentee home- and condo owners. A separate study conducted by data analyst Tom Slee found similar results. He calculated that about 70 percent of Airbnb revenue comes from hosts who are renting out an entire home or apartment, and 40 percent comes from Airbnb hosts with multiple listings.”
http://prospect.org/article/evictions-and-conversions-dark-side-airbnb

Is Berkeley Like Disneyland?
“More than 40% of the homes that have permits to rent in Anaheim are owned by real estate companies, investment firms or the owners of multiple properties, according to city records.
“These are basically unsupervised mini hotels in our neighborhoods,” said Cornejo, who has called the police on his neighbors several times for late-night noise.
With so many strangers visiting their communities, some residents recently urged Anaheim council members to consider safety and security issues. Renter safety too has become a growing concern in the wake of some well-publicized reports of sexual assault, injuries and deaths at short-term lodgings in other towns.”
http://www.latimes.com/business/la-fi-anaheim-short-term-rentals-20151111-story.html

Evictions and Rent Hikes Skyrocket In Oakland
http://www.eastbayexpress.com/oakland/eviction-and-rent-hike-complaints-skyrocket-in-oakland/Content?oid=4580708

NY Attorney General Disregards Airbnb Promises
“It is a transparent ploy by Airbnb to act like a good corporate citizen when it is anything but,” Schneiderman told Re/code in an emailed statement. “The company has all of the information and tools it needs to clean up its act. Until it does, no one should take this press release seriously.”
http://recode.net/2015/11/11/new-york-attorney-general-activists-call-bullshit-on-airbnbs-promises/

By Posted on Posted in Issues

File Oct 14, 8 58 41 PMGreat Summary of the Short Term Rentals Issue
“Almost everyone agrees that there’s nothing wrong with renting out a spare bedroom to travelers, and there’s not even much harm in renting your entire house for a month or two if you’re on vacation and would like to earn a little extra income. But what was once a small, on-the-margins practice of occasionally sharing one’s home with travelers for a few bucks has morphed into a behemoth and avaricious global marketplace for transforming residential housing into hotels… It’s harming renters; it’s helping drive up the cost of rental housing by taking homes and apartments off the rental market; and it’s upending the character of neighborhoods.”
http://www.eastbayexpress.com/oakland/turning-housing-into-hotels/Content?oid=4499687

Housing Advisory Commission on Vacation Rentals
“The commission passed six proposals that are in accordance with seven of nine guidelines referred to it by Berkeley City Council. It chose to take no action on whether a unit may be rented for more than 90 days without a host present or how to penalize hosts for regulation violations.”
http://www.dailycal.org/2015/10/04/housing-advisory-commission-makes-short-term-rent-recommendations/

Students Suffer In Housing Crunch
UC Berkeley’s alumni magazine covered the student housing crisis – but failed to note that it’s folks renting out housing on Airbnb that is taking away permanent homes and contributing to making housing more expensive for all!
“Radio producer Liza Veale has been using Airbnb, the short-term rental company, to rent out three rooms in her parent’s Elmwood home for the past three years. It’s one of a reported 1,162 Airbnb units in Berkeley. At first, she didn’t understand why so many students were renting out a room for roughly $1,000 a month.”
http://alumni.berkeley.edu/california-magazine/just-in/2015-10-14/crammed-berkeleys-housing-zone-students-get-creative-and

Berkeley’s Short Term Rentals law is expected to be discussed at the planning commission on November 4.

San Francisco’s Prop F – “The Airbnb Law”
BTU has endorsed San Francisco’s Prop F. We hope our City makes a law that can, and will, be enforced – so we don’t have to do a ballot measure here!
“Senator Dianne Feinstein, a fierce foe for Airbnb and its ilk, is in favor of Prop F., which “closes loopholes and provides effective enforcement tools.” She said the current law is unworkable and unenforceable, and guts zoning regulations while incentivizing “illegal conversion of residences to de facto hotel rooms.” She said, classifying Prop F. as a “common sense change.”
http://sfist.com/2015/08/31/sue_thy_neighbor_airbnb_prop_f_and.php

“Current law requires hosts to register with the city, but only 618 have done so, the planning department said. Airbnb has 4,238 local hosts with 5,459 listings, while HomeAway/VRBO has about 1,000 listings and FlipKey has 359, a Chronicle investigation found.”
http://www.sfgate.com/business/article/Would-SF-Prop-F-spur-Airbnb-suits-with-neighbor-6472468.php

Berkeley Seismic Retrofits: Cup Half Full?
“The retrofitted buildings, which number 145 at latest count, account for 1,591, or just under half, of the 2,841 apartments in buildings identified as particularly vulnerable to earthquakes.”
http://www.contracostatimes.com/breaking-news/ci_28930420/berkeley-more-than-half-soft-story-buildings-retrofitted

San Francisco and Los Angeles Retrofits
San Francisco plans to allow rent increases to pay for retrofits. So far, Berkeley hasn’t done that. Los Angeles plans to require retrofit of concrete buildings as well as soft story ones – Berkeley hasn’t done that either.
http://www.latimes.com/local/lanow/la-me-ln-quake-san-francisco-20151006-htmlstory.html

Foreclosure Crisis Not Over
“…The California State Teachers Retirement System (CalSTRS) confirmed that the pension fund invested $660 million in two different funds managed by Lone Star, and that the company has used the money to buy up distressed home loans, foreclose on the homeowners, and resell the homes.”
http://m.eastbayexpress.com/oakland/california-teachers-have-been-financing-evictions/Content?oid=4526962