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

Zoning Board remand will be February 25th
Zoning Board remand will be February 25th

Berkeley Tenants and the students of the ASUC filed an appeal last summer to stop the demolition of 18 rent-controlled units on Durant. Berkeley’s City Council finally heard the appeal on December 1st, but just sent the decision back to the Zoning Board with instructions for the volunteer board to pay close attention to several issues in the appeal as well as a lengthy economic report submitted by the Rent Board.
Both the ASUC and BTU had dozens of speakers present to highlight various aspects of the problem, and emphasize that this would be a far-reaching policy decision for the Council, not just about this one project. The Council seemed particularly swayed by a letter from a former student tenant. But in the end, there wasn’t even that much deliberation, and no decision, just a remand.

On the one hand, BTU is pleased that the Council did not uphold approval of the project, because this would be the first time in history that our city would agree that a developer can’t make a profit by rehabilitating an older building instead of tearing it down. On the other hand, it would be nice to see our elected leaders stand up for affordable student housing. BTU had hoped the Council might chastise the developer for encouraging damage to his own building in order to claim he could not afford to fix it.

It is not yet known when the ZAB (Zoning Board) will hear the appeal. In the meantime, the 4×4 Committee, which is where the Rent Board meets with the City Council, discussed changes to allow more demolitions while protecting tenants and creating affordable housing.

“In approving the demolition permit, the ZAB agreed with the owner’s financial projections that it could not make a fair rate of return on its investment if it were to rehabilitate the building in its existing configuration — a notion contested by Pamela Webster, Lisa Stephens and Matthew Lewis in an appeal on behalf of the Associated Students of the University of California. The trio noted, moreover, that the owner allowed the building to deteriorate by keeping it vacant and inviting the Berkeley Fire Department to do training exercises there in late 2014, which involved cutting holes in the roof.…
Dozens of speakers warned that upholding the demolition permit would set a dangerous precedent. They warned that it would encourage landlords to pay exorbitant prices for rent-controlled buildings and let them go to waste while expecting the city to guarantee them a good return by allowing them to tear down the buildings and build larger ones with market-rate apartments.”
http://www.contracostatimescom/breaking-news/ci_29192392/berkeley-council-sends-permit-demolish-rent-controlled-building

For More About the Demolition Ordinance:
https://www.berkeleytenants.org/?page_id=773

Zoning Board Approved Kennedy Bait-and-Switch
A while ago, infamous Berkeley developer Patrick Kennedy (Panoramic) got approval for a residential hotel which was to house folks making less than 120% of area median. The other day, Zoning allowed him to change the project to tiny studio apartments (300 square feet) with no parking. Kennedy will make two of the 22 units at 2711 Shattuck affordable to 120% AMI, and two affordable to folks making 50% of Area Median Income. The other 18 will be market rate. Commissioner Denise Pinkerton was particularly vocal, condemning other ZAB members for calling for more affordable units.
http://www.berkeleyside.com/2015/12/14/berkeley-zoning-board-approves-new-units-on-telegraph-shattuck/

Durant-Project
Other apartment buildings will be at risk if the Durant demolition is permitted.

Mayor Bates would like to us to give up, and stay out of important City business. Berkeley City Council has two meetings on Tuesday December 1st, and both agendas are packed with issues concerning housing, renters, and poverty. The meetings will be held at Longfellow instead of old City Hall: 1500 Derby, at Sacramento Street.
The already burdensome agendas now also include items held-over and postponed from the last couple of meetings, including several issues which tenants have already waited hours to see discussed:

Demolition Appeal (7 pm) Item 24
SUMMARY: Allowing the demolition presents dangerous precedents: This would be the first time Berkeley has allowed an owner to claim he can’t make a fair return on a rehabilitated building. The developer invited the Berkeley Fire Department to tear out walls and cut holes in the roof!! To grant this project as requested is to condone willful destruction of housing.
ACTION: Come to the hearing on December 1st and hold signs showing support.
More Info: https://www.berkeleytenants.org/?p=1477
Berkeley Citizens Action: BCA-letter-111715

Rental Housing Safety (7 pm) Item 28
SUMMARY: Landlords are letting their housing fall apart. Besides proactive inspections and confidential complaints, this would also make mold and mildew a public nuisance, and require landlords to actually turn in the self-inspection they are supposed to do each year.
ACTION: Take a photo of unsafe conditions and send to Council by November 30.
More Info: https://www.berkeleytenants.org/?p=1456
Wellstone Democratic Club: Wellstone-letter-111715

Affordable Housing (5:30 pm) Items 2a, 2b, 2c, 2d, 2e
SUMMARY: Common-sense measures to make city funding for affordable housing easier.
ACTION: You already signed the petition, but did you ask your friends?
http://petitions.moveon.org/sign/fund-affordable-housing-2.fb48?source=c.fb&r_by=9240326
More Info:
Sierra Club Letter: Sierra Club 10-27 Berkeley City Council Items on Affordable Housing
Daily Cal: http://www.dailycal.org/2015/11/08/housing-advisory-commission-talks-assessment-of-affordable-housing-mitigation-fee-predevelopment-funding/
Cool Map: http://ww2.kqed.org/pop/map-where-can-you-find-an-affordable-one-bedroom-near-bart-san-francisco-bay-area-oakland

See You Tuesday December 1!
Longfellow Middle School, 1500 Derby

Also on the 5:30pm Agenda:
Below Market Rate Housing Report; Housing Trust Fund Status Update; Use of Predevelopment Funds by Nonprofit Housing Builders; Report from Berkeley Housing Authority.
http://www.ci.berkeley.ca.us/Clerk/City_Council/2015/12_Dec/City_Council__12-01-2015_-_Special_Meeting_Agenda.aspx

Also on the 7:00pm Agenda:
Accessory Dwelling Units; Appointment to Human Welfare Commission; Police Crowd Management Policies; Lien for Noncompliance with Seismic Mitigations 1734 University; 2nd Reading of Anti-Homeless Laws.
http://www.ci.berkeley.ca.us/Clerk/City_Council/2015/12_Dec/City_Council__12-01-2015_-_Regular_Meeting_Agenda.aspx

 

Update from the Windfall Profits Tax Special Workshop November 17:

FundAffordableHoudingThe City Council gave the new landlord PAC, the Berkeley Rental Housing Association, a seat at the table for their very own PowerPoint on how it must be somebody else’s job to fund affordable housing. However, the Council seemed receptive at the workshop since the measure has what passes for bipartisan support, Berkeley-style: both Arreguin and Capitelli want to fund affordable housing through a reasonable increase in the business license fee. Only Mayor Bates asked aggressive questions which betrayed his ignorance of the process of crafting Council ballot measures.

Contra Costa Times Covers Landlord Tax
Satellite Affordable Housing Associates Executive Director Susan Friedland said $4 million annually would mean construction of 40-to-50 affordable units every year given that nonprofit housing developers must get about 25 percent of their funding from local sources to leverage other funds….Barton proposed a number of exemptions, including one- and two-unit and nonprofit-owned properties; rent-controlled properties with pre-1999 tenants (before vacancy decontrol allowed landlords to set rents of rent-controlled units as high as the market will bear when units are vacated); low-and-moderate income landlords; and units with federally subsidized tenants.”
http://www.contracostatimes.com/breaking-news/ci_29134727/berkeley-tax-proposed-fund-low-income-housing

Affordable Housing Panel November 14
Amy Davidson, community project coordinator for the City of Berkeley, said it takes $500,000 to develop one unit of affordable housing and then discussed the city’s $28,000 fee for developers with a complete lack of irony.
http://www.contracostatimes.com/bay-area-news/ci_29124916/berkeley-few-prospects-affordable-housing-panel-says

IMG_shirtBerkeley Tenants Union will hold our quarterly member potluck on Wednesday July 8th. There will be free tenant counseling from 6:30 to 7:30 PM, updates on demolitions and short term rentals regulations, and a roundtable discussion about enforcement of safety and habitability concerns for tenants.

Demolition Decision Sets Bad Precedents

Learn more about what happened at the Zoning Board at our quarterly member potluck on July 8th.

ZAB Grants Demolition…
“Some speakers at the meeting were concerned that the owner of the building deliberately worsened its condition in order to get approval for its demolition. John Selawsky, a substitute for Sophie Hahn and the only ZAB member to vote no on the use permit, said the building showed signs of deliberate neglect. Cliff Orloff, managing partner of developer OPHCA LLC, agreed to let the Berkeley Fire Department conduct training exercises in the building in 2014.”
http://www.dailycal.org/2015/06/26/zoning-adjustments-board-approves-student-housing-complex-on-durant-avenue/

Despite Strong Public Protest
“Earlier this week, in an email regarding the project, a UC Berkeley student who said she used to live at 2631 Durant said tenants had been required by the owner to move out by a certain date, and that conditions had been poor.“When I was signing my lease I was told that I was signing under the condition that I would move out on May 31, 2014. We were told that the building was going to be torn down and developed,” wrote Nicole Yeghiazarian.
“The building was kept in awful shape because they did not want us to stay. When I moved into my apartment, there was mold. The kitchen was filthy with food stains around the stove.… Other tenants I talked to had similar complaints of conditions inside and outside of their units being dilapidated. It really felt like they were doing the bare minimum to not be sued, but wanted to make our conditions unpleasant enough that we would move out.” Added local resident Tree Fitzpatrick, in an email to the zoning board, “To grant this project as requested is to condone demolition by neglect.”
http://www.berkeleyside.com/2015/06/25/berkeley-zoning-board-to-consider-demolition-on-durant/

Short Term Rentals

We have heard that legal service providers like the East Bay Community Law Center are seeing more attempted evictions for renters who sublet for the short term on services like Airbnb. Currently, the Berkeley proposal to legalize such rentals may allow renters to sublet this way as long as the place is their home. But that doesn’t mean doing so won’t be a violation of their lease – it depends on the agreement. Renters should read the fine print, and remember the Rent Ordinance prohibits charging more than a prorated portion of the controlled rent.
Below is the document some folks currently violating Berkeley’s ban on such rentals are presenting to the Planning Commission, who will hold a hearing soon regarding the potential new laws and taxes in Berkeley.
We have just a few corrections: Regulations are not “being passed” – the current prohibition is being lifted for some users. Therefore, the number of short term rentals will not be “cut,” and no law-abiding citizens will see their “livelihood” impacted. These new regulations will not reduce any legal income, they will only legalize a currently illegal activity for some but not all users. It’s like saying the pot dealer on the corner is going to be put out of business by the legalization of medical marijuana!
2015-07-01_Communications_Berkeley Home Sharers_Recommendation on Revisions

Landlords Favor Allowing Hotels Anywhere, Unless Run By A Renter
Sid Lakireddy, president of the Berkeley Property Owners Association, said he doesn’t think the use of Airbnb among tenants is widespread. Lakireddy believes that property owners should be allowed to use Airbnb, but not tenants.
“It’s a lot of work for a property owner to do Airbnb, and if they feel like they can make more doing it, I don’t think we should stop them,” he said. “If a tenant is doing it, that’s wrong because they’re using somebody else’s property to make a profit.”
http://www.dailycal.org/2015/06/21/city-considers-lifting-restrictions-on-short-term-rentals-while-practice-abounds/

Council Passes Referral Designed to Protect Rental Housing Stock
“The proposal, introduced by Mayor Tom Bates and Councilmember Lori Droste, would legalize rentals not exceeding 14 consecutive days and would tax hosts in the same way as hotels. Under the proposed regulations, the property must be occupied by the owner or tenant for at least nine months of the year and can be rented out no more than 90 days if the host is not present.”
http://www.dailycal.org/2015/06/25/city-council-refers-short-term-rentals-proposal-planning-housing-advisory-commissions/

San Francisco Hires 6 to Crack Down on Illegal Hotels
http://www.bizjournals.com/sanfrancisco/morning_call/2015/07/san-francisco-airbnb-law-enforcement-office-hosts.html

Paris Neighborhood Had More Airbnb Guests Than Actual Residents
During summer 2014, 66,320 people stayed on Airbnb in the neighborhood’s two arrondissements, slightly more than the 64,795 who actually live in them, according to 2012 figures. The popularity of tourist rentals also made it a target of French housing inspectors. In May, inspectors made surprise early-morning inspections that turned up roughly 100 potentially illegal apartments.”
http://graphics.wsj.com/how-airbnb-is-taking-over-paris/

Balcony Collapse Highlights Problems with Code Enforcement

Code enforcement complaints and missing inspection forms at Library Gardens highlight the need to revamp Berkeley’s Rental Housing Safety Program. Currently, the program is a little meaningless. Landlords have to pay a fee and do inspections each year, but they don’t have to turn in the forms to the City. Issues about inspections and habitability will be the topic of a BTU member roundtable at our quarterly meeting on July 8th.

Missing Inspection Forms at Library Gardens
Prior to July 1st, city officials say Greystar provided the wrong inspection records, failing to use the form required by the city. In a letter to Greystar, the city noted that the self-inspections were also missing required signatures and dates.”
http://wn.ktvu.com/story/29458314/2-investigates-missing-incomplete-safety-inspections-after-berkeley-balcony-collapse

Mayor Says New Housing Is Safe
“Berkeley code enforcement inspectors might not have been previously aware of Library Gardens’ failure to perform safety inspections. Those records are not required to be filed with the city unless a code inspector asks for them. Bates said it was unreasonable to mandate increased city inspection of rentals, given the city’s budget, but believed newer apartment buildings are not apt to present many hazards”.
http://www.latimes.com/local/lanow/la-me-ln-balcony-inspection-report-20150629-story.html

Balcony Collapse Spotlights Dry Rot
Yes, but when will they realize we need to inspect more than just balconies?
“In Berkeley, officials recognized this gap in oversight and a week after the balcony disaster called for a mandate on building owners to inspect balcony supports at least once every five years. State officials are considering whether the balcony collapse demands a broader fix.”
http://www.latimes.com/local/california/la-me-balcony-dry-rot-20150626-story.html

Criminal Investigation
“As reported by the San Francisco Chronicle, the investigation will likely focus on Segue Construction Inc. — the company responsible for constructing the building — and on R. Brothers Inc., the company responsible for waterproofing the balcony’s wooden support beams. Several lawsuits throughout the Bay Area involving allegations of water penetration due to faulty waterproofing have been filed against Segue in the past.”
http://www.dailycal.org/2015/06/25/alameda-county-lead-criminal-investigation-berkeley-balcony-collapse/

From Other BTU Members:

Supreme Court on Fair Housing
From a BTU Member: I think that the Court’s decision on the Fair Housing Act is more important, insofar as it established the “disparate treatment” standard.  This is a significant victory for tenants and housing rights advocates.  It will now be much harder to defend discrimination and segregation in housing and other areas on the basis that it was not intentional.
http://feminist.org/blog/index.php/2015/06/25/the-supreme-court-fair-housing-ruling-is-a-civil-rights-victory/

And In Other News:

Demolitions, Ellis Act Plague Los Angeles Renters
http://www.latimes.com/opinion/op-ed/la-oe-0609-gross-housing-ellis-act-20150609-story.html

Cal Student Plagued by Pests
http://www.dailycal.org/2015/06/10/off-the-beat-on-renting-and-raccoons/

This 18-unit OCCUPIED building on Durant has applied for a demolition permit.
This 18-unit building on Durant has applied for a demolition permit.

BTU Appealed This Demolition — City Council November 17

The proposed demolition at 2631 Durant includes 18 rent controlled units which have traditionally been 100% occupied by students and were occupied until May 2014. This is the building next door to the Art Museum and across from the dorms near College on Durant.

One of the most sensational aspects of this application is that developer Cliff Orloff claims he cannot get a fair rate of return because of the costs if he rehabilitates the existing building – but Orloff invited the Berkeley Fire Department to conduct trainings in his building, and when they were done there were holes in the roof and very few interior walls, according to a Building Inspector report that is part of the City record.

The other extremely disturbing aspect of tonight’s hearing is public perception that the process may have been manipulated:

1) City packed the Zoning agenda with two controversial issues – demolition of 2631 Durant and the EIR for 2211 Harold Way, the first downtown high-rise. This will limit discussion time for both projects.

2) City scheduled a different public meeting at virtually the same time on another aspect of Harold Way. Many BTU members want to speak at both meetings but cannot endure 4 or more hours of meetings just to have their one or two minutes to comment at each.

3) CITY STAFF SENT AT LEAST ONE LETTER FROM A CONCERNED CITIZEN TO THE DEVELOPER well before this correspondence was available to the public or even to ZAB Commissioners. (see Supplemental Communications Page 5) Having communications before the rest of the public seems to give the developer more time to refute or refine arguments than the time any other member of the public would have to comment on correspondence.

4) This building was 100% student occupied but the hearing is scheduled when students are away – see the letter from ASUC External Affairs linked below.

BTU is asking folks to come tonight, hold signs, and speak against demolition of rent controlled units as well as in favor of increased affordable housing requirements from downtown high-rise builders.

BTU Letter to ZAB About Durant

ASUCMariumZABCommunication

Communication from the Public Forwarded to Developer, Page 5
http://cityofberkeley.info/uploadedFiles/Planning_and_Development/Level_3_-_ZAB/2015-06-25_ZAB_Supplemental%20Item_Rd1_2631%20Durant.pdf

Link to All City Documents Regarding this Application:
http://cityofberkeley.info/Planning_and_Development/Zoning_Adjustment_Board/2631_Durant.aspx