Author: Judy Shelton

By Posted on Posted in Issues
3000 block of College Ave.

Rents in Berkeley are rising dramatically. What’s going on? Two things are creating upward pressure on both rent- and non-rent-controlled units. These phenomena are:

1) The skyrocketing rents in San Francisco, which push people across the Bay, and
2) The ongoing construction of expensive new (thus not rent-controlled) apartment housing in Berkeley.

If you’re a doctor or high-paid techie, no problem. But if you’re a teacher or postal worker, good luck! Berkeley is becoming a bedroom community of upper-middle class professionals.

From $1817 to $3465
1300 block of Euclid Ave

This one-bedroom unit was rented back in 2002 at $1,550 to one tenant. Its 2014 rent ceiling is $1,817.93. Had it remained rent-controlled under pre-Costa-Hawkins rules, the rent ceiling would be $1,353.

The owner recently filed a Vacancy Registration stating that the unit had been rented to a new tenant on July 1 for $3,465. Still listed as one bedroom, still rented to one tenant.

From $1250 to $3380
1200 block of Alcatraz Avenue

This one looks like a flip, and sure enough, some pretty big rent increases have been taken. Here is the history:

All three units were rented out by the previous owner in 2007/2008:
#A was rented out in 2007 at $1,250;
#B was rented out in 2008 at $1,000;
#C was rented out in 2008 at $450 (it is a studio, but this still seems like a below-market rent).

In 2008 #A was claimed exempt because it was rented out to a Section 8 tenant, and #C was claimed exempt as not available for rent. (No change reported for #B.)

In December 2012, the entire property changed hands, and all three units were claimed exempt as owner-occupied as of that date, probably in error.

Then, in May 2013, the property was sold to a new owner. And sure enough, in August of 2013: Rents more than twice those charged in 2007/08!

#A was rented for $3,380;
#B was rented for $2,380,
#C was rented for $1,080.

The new owner has listed the property for sale several times – this is from one recent real estate listing: “Currently Producing $6840 a month from rent. THE HIGHEST RETURN ON THE MARKET IN BERKELEY! Average rent per unit is $2280. Over 200 applicants prior to August 2013 placement of current tenants. There are no substitutes for good quality of life & peace of mind! Maybe that’s why an all cash million dollar offer was dismissed?”

From $3090 to $3690
1500 block of Walnut Street

This also seems to represent fairly big rent increases over the years, but it also needs to be said that the rent goes up as the number of tenants goes up.

In 2002, it was rented to 4 people for $2,200.
In 2005, it was rented to 2 people for $1,750.
In 2009, it was rented to 5 people for $3,090.
In 2012, it was rented to 7 people for $3,690.

Thus, not quite apples to apples. Without Costa-Hawkins rent increases, under Berkeley’s old system of rent control, the rent ceiling would be $1,326.

From $1600 to $3200
3000 block of College Ave

Two of the units have turned over and been fixed up. The tenant in the third unit, who had several cases before the Rent Board, recently passed away. We assume that in the near future the Board will receive a revised registration form raising the rent significantly.

While the owner has done substantial work on the property, it was purchased for a bargain price in 2008 and the owner only pays taxes on a value equal to the average single family home bought in Berkeley this year, while soon his rents will total Over $110,000 a Year for this triplex.

Unit 1
Before Costa Hawkins increase — $674.27.
After Costa Hawkins increase — $3,300.00 (8/1/13).

Unit 2
Before Costa Hawkins increase — $581.61.
After Costa Hawkins increase #1 — $1,600.00 (8/1/12).
After Costa Hawkins increase #2 — $3,200.00 (6/1/13).

Unit 3 (long-term rent controlled tenant) — $670.46.

By Posted on Posted in Issues

On Thursday, July 25, the Zoning Adjustments Board will decide whether to issue a building permit for the New Sequoia Building. The original Sequoia Building at Haste and Telegraph was destroyed by fire in 2011, wiping out almost forty rent-controlled apartments.

Unfortunately, state law prohibits the construction of new rent-controlled units. But ZAB has the authority to put important conditions on the New Sequoia building permit. They can tell the owner, Kenneth Ent, to make the units permanently affordable, or at the very least, refuse to exempt the building from the usual mitigation fee. The fee of twenty thousand dollars per unit is for the Housing Trust Fund, but ZAB exempt the Lakireddy family from paying the fee for 2227 Dwight, also destroyed by fire. That permit is being appealed.

The Trust Fund uses mitigation fees to build new low-cost housing. However, since each unit of new housing costs about four hundred and ten thousand dollars to build, including permanently affordable housing in the building may be a better solution.

It seems some ZAB members may disagree that they can impose conditions on permits. Yet a paragraph of the ordinance that guides their actions states that the Board “may attach such conditions to any Use Permit as it deems reasonable or necessary to achieve the purposes of this Ordinance, and which otherwise promote the municipal health, safety and welfare.” (italics added).

The restitution of forty affordable housing units surely promotes municipal welfare. It can be argued that Mr. Ent is obligated to provide them, and that doing so is reasonable. Consider:

  • The fire started in the elevator control box. Many Sequoia tenants have said that the elevator was frequently out of order or working poorly. According to SF Gate, the last time the elevator was inspected was in August 2010 and the permit for the elevator had expired. Had these problems been addressed, the fire might have been avoided.
  • The building lacked a sprinkler system. Sprinklers might have limited the scope of fire (from whatever cause), and saved the building. Furthermore, Mr. Ent could have recouped the expense of this improvement through legally sanctioned rent increases.
  • Tenants also had complained about problems with fire escapes and smoke detectors, according to media reports.

Berkeley Tenants Union has not taken an official position, but if you think tenants need to persuade ZAB that affordable housing at the New Sequoia will promote the City’s welfare, and that ZAB Commissioners should exercise their power to mandate this, please:

  • Come to the ZAB meeting on Thursday, July 25th, 7:00 PM at Old City Hall, and tell them how you feel. Contact BTU members at 510-982-6696 for more information.

For various reasons, we have been losing rent-controlled units in Berkeley. Let’s make sure that these losses are compensated through permanently affordable housing.

ZAB application:
http://www.cityofberkeley.info/Planning_and_Development/Zoning_Adjustment_Board/2441_Haste.aspx

SFGate:
http://www.sfgate.com/bayarea/article/Berkeley-building-was-site-of-earlier-fire-2344380.php