Tag: capital improvements

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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

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Berkeley Referendum Ends in Tears
“At issue was the redistricting map the council approved in December, with Worthington, Anderson and Arreguin dissenting. The city must adjust council boundary lines after each decennial census to equalize the population among council districts.The ordinance approving those boundaries was set aside after opponents collected some 7,800 signatures supporting the referendum. The city sued to have the judge temporarily lift the stay, in order to use the council district boundaries approved in December for the November election.”
http://www.contracostatimes.com/west-county-times/ci_25677403/berkeley-judge-rules-city-council-redistricting-suit

Daily Planet: Mayor Used Public Resources
“These two public statements using government resources appear to violate the state law around misuse of public resources for political purposes…”
http://berkeleydailyplanet.com/issue/2014-05-02/article/42084?headline=Berkeley-Mayor-Uses-Official-Newsletter-and-Public-Resources-to-Oppose-Green-Downtown-Petitions-Arreguin-Protests

Robin Hood Initiatives Miss 2014 Ballot, Continue for 2016
Our friends at FundAffordableHousing.org tell us that Robin Hood was unable to make the deadline for the 2014 ballot, so signature gathering will continue later in the summer, and these measures will be on the 2016 ballot.

BTU 1970
BTU 1970

Robin Hood in the Daily Planet
http://www.berkeleydailyplanet.com/issue/2014-05-09/article/42090?headline=Tax-the-Rich-to-House-the-Poor–By-Katherine-Harr-Jesse-Townley-from-the-Robin-Hood-Committee

Judges own Banks?
East Bay Express: Are Foreclosure Cases Rigged?
Forty-two of California’s 105 appellate court judges (or 40 percent of the bench) own significant amounts of stock in at least one financial company. Seventeen justices disclosed owning stock or bonds in Bank of America in 2012, the most of any bank, followed by Citibank with ten judges owning at least $2,000 in securities.
http://www.eastbayexpress.com/oakland/are-foreclosure-cases-rigged/Content?oid=3922254

Oakland Tenants Gain Small Victory
The Oakland City Council voted last night to tighten the city’s rent control law after landlords and tenants’ groups reached a compromise deal… The new rules, which take effect this summer, cap rent hikes to a total of 10 percent a year for upgrades to buildings. They also prohibit landlords from passing on all the costs of capital improvements to tenants, capping the total at 70 percent. Oakland’s rent control laws, however, are still weaker than other cities, including San Francisco and Berkeley.
http://www.eastbayexpress.com/SevenDays/archives/2014/03/19/wednesday-must-reads-oakland-council-approves-new-rent-control-rules-richmond-council-raises-citys-minimum-wage-to-1230-an-hour

San Francisco Cracks Down on Vacation Rentals
“Illegal short-term rental conversions of our scarce residential housing stock” are contributing to “a housing crisis of historic proportions,” City Attorney Herrera said in a statement.
http://www.sfgate.com/bayarea/article/S-F-city-attorney-sues-2-landlords-over-5425826.php

Landlord Comments on Robin Hood Initiatives (April 29)
As you can tell, I don’t like this ‘windfall profits tax’, which I think is a cruel voter hoax; however, there is one good thing about it. I will be exempt from paying it! Yes, this ‘windfall profits tax’ ballot initiative specifically states that landlords who own single family houses and duplexes will not have to pay the new tax, and the only rentals I own in Berkeley are single family houses and duplexes. So even though I think this tax is a bad idea, I don’t plan to get involved in this campaign.
http://www.tarses.com/blog/

 

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ACTION: Statewide Ellis Reform
The Berkeley Rent Board agenda for Monday March 17 contains a report on landlord and tenant bills at the state legislature. BTU is asking the Board to take action to support and broaden the two bills to reform the Ellis Act, a law that allows speculators to buy an apartment building and immediately get rid of all the tenants. We hope the Board will ask Nancy Skinner and Loni Hancock to persuade San Francisco’s Tom Ammiano and Mark Leno to change their bills so they could apply in Berkeley if use of the Ellis act rises dramatically here.

Santa Monica’s Rent Board, and then Santa Monica’s City Council, have taken a similar position, stating that they are hopeful that any Ellis reform will allow all jurisdictions with rent control to be given a chance to opt in.
Santa Monica Rent Board Annual Report: “…entering 2013, there are signs that the economy may be improving—foreclosures are down in California along with unemployment—and there is a sense in the state that our economy may finally be headed in the right direction. Along with that recovery is the likelihood of increased Ellis activity, bringing with it the inevitable loss of accessible, competitive, controlled housing.”

The Berkeley Rent Stabilization Board meets Monday at 7 PM — 2134 Martin Luther King. The report on housing legislation and discussion on Ellis reform are early on their agenda.

Berkeley Rent Board Legislative Report, Item 5 http://www.ci.berkeley.ca.us/Rent_Stabilization_Board/Home/Agenda__RSB_2014_Mar_17.aspx

Also on the Agenda, Banks as Landlords, Item 7(a)8 and Wall Street Securitizing Rents 7(a)11

Ellis Reform from the San Francisco Appeal: “Speculators are buying properties and posing as new landlords, then evicting the tenants within a matter of months to “flip” the building and convert it into a high-cost home or luxury condominiums, the senator said.”
http://sfappeal.com/2014/02/local-landlords-demonstrate-against-announcement-of-legislation-to-close-ellis-act-loopholes/

Ellis Reform from 48 Hills Blog: “The presence of the mayor and the tech industry is just the latest indication of how serious the eviction crisis has become – and how much of a force the tenant movement has become in local politics. When you get a crowd like this for an anti-eviction bill, it’s clear that 2014 is, indeed, the Year of the Tenant in San Francisco.”
http://48hillsonline.org/2014/02/24/everyone-in-town-except-a-few-landlords-is-supporting-lenos-ellis-act-bill/

San Francisco To Raise Ellis Relocation Benefits?
“The Campos legislation will pay tenants 2 years’ worth of the “rent differential” between their current rent and the market rent they will have to pay. For example, if a tenants being evicted is paying $1,500 a month in rent and the current market rent for a similar apartment is $3,000, they will received $72,000 in relocation benefits (the $1,500 difference their current rent and the new rent, times 48)”–  according to Eviction Free SF. Berkeley’s Ellis relocation benefits are currently between $8,700 and $16,200 per household, San Francisco has a $15,632.69 maximum, and Santa Monica and West Hollywood base their benefits on the size of the unit, with relocation payments of up to $17,000 (West Hollywood) and $19,000 (Santa Monica.)

Student Perspectives on Housing
This week was UC Berkeley’s annual Tenants Rights Week, so BTU tabled on campus alongside Renters Legal Assistance and other services. The Daily Californian has their annual housing special issue, with articles discussing gentrification, types of housing in Berkeley, vacancy decontrol and landlord profits, and the role of the Rent Board.
http://www.dailycal.org/section/special/housing-issue-2014/

Tuesday Exchange on Berkeley’s Downtown
There are 1,400 units of rental housing in development for the Downtown area, and none of it will be rent controlled. Unfortunately, this talk will happen while you are at work.
“The Berkeley Historical Society asked LWVBAE to partner with them in an exploration of how development activities may potentially impact the cultural and physical characteristics of the Downtown area. Panelists, including Michael Caplan, Lisa Stephens and Jim Novosel, will open a discussion on this important topic, which will be followed by a question-and-answer period. The talk will be moderated by Steven Finacom and introduced by Sherry Smith.”
Conversation about the Downtown Development Plan
Tuesday, March 18 :: Noon to 1:30 pm
Berkeley History Center, 1931 Center Street
Admission free. Donations welcome. Wheelchair accessible.

Oakland City Council To Review Capital Improvement Rent Increases Tuesday
“A staff recommendation this week calls for the number of years landlords can amortize capital improvement costs to be extended from 5 years to 20 and caps the rent increase at 10 percent. In addition, landlords would be asked to petition the city for rent increases. Currently, the only way for the city to track rent increases triggered by capital improvement projects is only when renters issue a complaint. Most tenants, however, may be unaware of their rights regarding the complaint system, says Oakland tenants’ rights advocate James Vann”.
http://oaklandlocal.com/2014/03/tenants-rights-resolution-heads-to-oakland-city-council-as-talks-continue/

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100913Thursday, October 10 at 5 PM
Final Public Hearing on Seismic Retrofits
City of Berkeley Hearing sponsored by ASUC
UC Berkeley Alumni Hall: 2537 Haste Street

Currently, the plan is to allow landlords to pass costs onto tenants if the landlord can claim paying for the retrofit is a hardship. Since Rent Board rules already allow owners to pass costs on to tenants if they are not making a fair return on their investment, these new hardship rules imply that owners who “need” to raise rents for seismic safety are already making a fair return, so where is the hardship??!

REVISED DATE! Tuesday, November 19 at 7 PM
Seismic Retrofits to City Council
Council Chambers: 2134 Martin Luther King Jr. Way

The Rent Board recommendations were posted in a recent BTU update: Rent Board Seismic
The Housing Advisory Commission recommendations: HAC Memo SWOF with HAC amendments

more info:
http://www.ci.berkeley.ca.us/Planning_and_Development/Building_and_Safety/Soft_Story_Program.aspx

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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

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garages
2091 California is already retrofitted.

This Thursday, October 3, the Housing Advisory Commission will vote on their recommendations to Council regarding the law to require landlords to fix unsound buildings. BTU attended the last HAC meeting to speak about our concern:

Tenants should not have to pay extra rent for safe housing!

The City will hold the final public hearing on the law to require seismic retrofits for Berkeley’s most unstable rental housing on October 10 at 5 PM. Since the first hearing was held over the summer, and so many students live in these “soft story” buildings, the October hearing is cosponsored by Berkeley’s ASUC and will be held on campus but open to everyone. Only five tenants spoke at the July 27 hearing, although more than 40 landlords were present.

On September 16, the Berkeley Rent Board finished their recommendations to Council, which cite many ways that owners with financial hardship could pay for retrofits without raising rents. However, even the Rent Board voted to consider amending rules so that landlords can raise rents! If tenants do not speak out at the meetings listed below, Berkeley tenants could see increases under the new mandatory retrofit rules like those in San Francisco, where rents in unsafe buildings are going up an average of $900 a year!

Seismic Retrofit Recommendations
Thursday October 3 – 7 PM
Housing Advisory Commission
South Berkeley Senior Center

Final Public Hearing on Seismic Retrofits
Thursday October 10 — 5 PM
City of Berkeley Hearing sponsored by ASUC
UC Berkeley Alumni Hall – 2537 Haste Street

Seismic Retrofits to City Council
REVISED DATE November 19 — 7 PM
Council Chambers: 2134 Martin Luther King Jr. Way

City website, including draft law and inventory of unsafe buildings:
http://www.ci.berkeley.ca.us/Planning_and_Development/Building_and_Safety/Soft_Story_Program.aspx

Rent Board recommendations:
Rent Board Seismic

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Tenants are urged to speak out about paying for these earthquake safety improvements.

  • Wednesday, August 7th 7pm
    Disaster and Fire Safety Commission
    Fire Department Training Facility
    997 Cedar Street @ 8th Street
  • Monday, August 26th, 7pm
    Rent Stabilization Board
    Council Chambers
    2134 Martin Luther King Jr Way @ Center St
  • Wednesday, Sep 4th, 7pm
    Planning Commission
    North Berkeley Senior Center
    1901 Hearst Street @ MLK
  • Thursday, Sep 12th, 7pm
    Housing Advisory Commission
    South Berkeley Senior Center
    2939 Ellis Street @ Ashby

more info: http://www.ci.berkeley.ca.us/Planning_and_Development/Building_and_Safety/Soft_Story_Program.aspx

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softstoryBTU is very focused on Seismic Safety this summer. San Francisco passed a mandatory retrofit law that allows landlords to pass the costs of seismic upgrades to their tenants; it has been reported that the average rent increase there will be $900 a year! We won’t let this happen in Berkeley! Please join BTU by coming to our August 14 Potluck to learn how you can help.

The really good news at the first public hearing on retrofits, held July 25, was that the city has hired one staff member to deal with “Soft-Story Phase 2” – the retrofit law. Berkeley has not really enforced the 2005 rules (“Soft Story Phase 1”) in part because there has been no dedicated staff in the Housing department for this work.

Berkeley landlords had a huge turnout July 25, with their comments ranging from helpful suggestions to difficult demands. Several landlords pointed out that the city permit process makes it more expensive to retrofit by making their construction timeline uncertain and requiring additional safety work be done at the time the retrofit permit is issued. Many also claimed they can’t afford a retrofit and can’t get a loan to do one. The city has discussed creating a low-interest loan fund for owners who really can’t afford to make their buildings safer, but several landlords said they want to see a zero-interest loan from the city.

Most tenants who spoke talked about how they want their building to be safe, but believe any substantial rent increase would be a hardship. Some said they were willing to pay a little more rent if they could afford it. Tenants also spoke about fear of temporary relocation, but Rent Board speaker Matthew Siegel said few retrofits are expected to require relocation. Landlords said the law (Relocation Ordinance), which requires that owners pay a “rent differential” and other expenses for tenants who must temporarily move out, is unfair.

Currently, 109 buildings on the original unsafe list are now retrofit, while 18 have not even done the engineering report required under the 2005 law. There has been no city tracking of compliance with the required posting of warning signs, but BTU joined the Third Annual Day of Seismic Action and found many buildings lacked signage. No fines have been issued.

The Rent Board speaker said that agency would consider allowing costs to be passed through to tenants, so we intend to gather tenants to speak at upcoming hearings at the Rent Board (possibly AUGUST 26), Disaster and Fire Safety Commission (AUGUST 7), and the Planning Commission (SEPTEMBER 4).

July 25 Hearing:
http://www.berkeleyside.com/2013/07/26/berkeley-renews-focus-on-retrofitting-soft-story-buildings/#disqus_thread

Draft Legislation:
http://www.ci.berkeley.ca.us/Planning_and_Development/Building_and_Safety/Soft_Story_Program.aspx

No Signs Posted at Many Unsafe Structures:
Seismic Day of Action 2013 Report 

Related: Alameda renters got eviction notices from the new owners at Marina View Towers. Carmel Apartments will evict 84 families to perform seismic retrofits.
http://blog.sfgate.com/inalameda/2013/07/27/the-broad-brush-your-alameda-news-in-60-seconds-33/

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RetrofitHEARING: Berkeley is moving forward with a law to require unsafe buildings to retrofit. A public hearing is scheduled for Thursday, July 25, at the North Berkeley Senior Center at 7 PM.

A few months ago, San Francisco passed a mandatory retrofit law which requires tenants to pay for the building safety improvements, but activists are asking for rules to ease the burden on low-income renters. Rent increases in SF are expected to be over $900 per year. Join the Berkeley Tenants Union to make sure you don’t have to pay to make your building safe!

Proposed Berkeley Law: http://www.ci.berkeley.ca.us/Planning_and_Development/Building_and_Safety/Soft_Story_Program.aspx

On San Francisco’s Law: http://www.theepochtimes.com/n3/8861-not-all-sf-renters-need-to-pay-for-earthquake-retrofits/

Sign Hidden Behind Door
Sign Hidden Behind Door

BERKELEY’S SEISMIC DAY OF ACTION: In March, BTU joined with students to visit 20 buildings on the “Soft Story” list – and we found HALF of the buildings had not posted warning signs as required by a 2006 law! Code Enforcement has refused to issue any fines.

Seismic Day of Action 2013 Report

Daily Cal on the Report: http://www.dailycal.org/2013/06/30/survey-finds-some-berkeley-buildings-do-not-meet-earthquake-safety-requirements/

NEW WEBSITE: In exciting news, a student leader from Cal has created a website where anyone can look up the status of their building in relation to Berkeley’s list of buildings that are expected to immediately collapse in an earthquake of the size that struck San Francisco in 1991. This list includes only buildings known as “soft-story” — it doesn’t list buildings that are seismically unsafe but of other construction types, unfortunately. BTU will be working to get our city leaders to address “podium” and “unreinforced masonry” buildings too! Join us!

Berkeley Safe Renting is here: http://senator.kleinlieu.com/saferenting/