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

Like her husband Mayor Bates, Berkeley’s representative in the California Senate is starting to vote against tenants. BTU needs you to stand with us, and tenants across the state, to stop a very real threat.

We are asking you to take two actions:

  1. Call Loni Hancock right now, and tell her you are ashamed of her vote on AB1513.
    Call (510) 286-1333
  2. Sign Tenants Together’s message to our Senator and ask your friends to do so too!
    http://org2.salsalabs.com/o/5247/p/dia/action3/common/public/?action_KEY=17893

The proposed law Hancock voted in favor of at the Senate Rules Committee is sponsored by the Association of Realtors. The wording allows any owner to ask the police to evict a tenant without going to court if the landlord claims the tenant is trespassing. That means any renter who can’t produce a written lease when the cops come to the door is at risk.

Banks claim they want this extra- judicial eviction option because there are squatters, but banks have a long history of trying to evict legitimate tenants. Even though the bill has been amended to impact “only” three cities, it sets a dangerous precedent, it could be expanded and it leaves tenants in Palmdale, Lancaster and Ukiah at risk of being thrown on the street without having their day in court. Regular eviction proceedings are already fast tracked. There are laws against trespassers, too. This law is unnecessary!

Additionally, the bill has no penalties for landlords who lie. So if the tenant later shows they were legit, they would have to convince the District Attorney to prosecute the owner for perjury, or nothing at all will happen to those who try to harass renters this way. This is what the Berkeley Rent Board was told by the legislative advocate the Board has instructed to try to stop the bill.

This bill just is not fair! Let the judge decide!

Update:

Current law allows police to arrest trespassers, and when it isn’t clear if someone’s a trespasser, the matter gets resolved in court where a tenant has the right to trial in an expedited proceeding. The bill’s author and its sponsor, the California Association of Realtors, have not explained why existing law is not sufficient to deal with trespassers. Legislators have not even asked the author or sponsors to come forward with a single case in which a new “eviction by declaration” law is needed. Yet the bill continues to advance. This contrasts sharply with how tenant protection bills are treated in the Capitol.” http://beyondchron.org/eviction-by-declaration-bill-advances-exposing-sacramento-double-standard-on-tenants/

Analysis:

Not simply a bill to address tenants living in foreclosed homes, AB 1513 could seriously jeopardize tenants who have no protection of a written lease agreement. AB 1513 could allow slumlords to evict their tenants simply by stating to the police department of their local jurisdiction that their tenant was an “unlawful occupant,” nullifying the tenant’s constitutionally protected due process.” http://sandiegofreepress.org/2014/04/california-state-assembly-bill-ab-1513-will-take-away-tenants-rights/#.U7NwCGS9Kc0

“AB 1513 is also unclear regarding a resident’s rights if a property owner improperly evicts. It appears that the property owner’s only liability is based upon perjury. Accordingly, even a resident improperly evicted by a property owner making a false statement would have no recourse if the property owner’s false statement was made due to a mistake, lack of knowledge, or even lack of understanding regarding the law. Because of this, AB 1513 places a premium on the ignorance of property owners who can evict residents at will as long as they subjectively believe they have the right to do so.” http://oaklandwiki.org/AB-1513

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/

 

CIty Council Finally Making Seismic Retrofits the Law
http://www.dailycal.org/2013/11/20/city-property-owners-may-required-retrofit-seismically-unsafe-buildings/

Berkeley Backs Off Supporting Richmond, CA on Foreclosure Efforts
Item 32 for December 2nd was amended to remove references to joining
Richmond’s Joint Powers Authority, making the Council’s deliberations meaningless:
www.ci.berkeley.ca.us/Clerk/City_Council/2013/12Dec/Documents/2013-12-03_Item_32_Supporting_City_of_Richmond_-_Rev.aspx

LWV Directors Live in Berkeley’s Wealthiest Areas
LWV Directors Live in Berkeley’s Wealthiest Areas

Berkeley’s League of Women Voters tells Rent Board to Cut Staff, Services:
http://www.lwvbae.org/league-news/league-urges-rent-board-improvements/

San Francisco Holds Hearings on Evictions:
“Overall evictions in San Francisco rose from 1,242 to 1,716 over the past three years, he said, reflecting an increase of 38.2 percent. Ellis Act evictions rose by 169.8 percent in that same time frame.”
http://www.sfbg.com/2013/11/19/eviction-epidemic-spurs-legislative-solutions
http://www.sfbg.com/politics/2013/11/14/hundreds-attend-hearing-call-action-evictions

Even San Francisco’s Mayor Wants to Stop Ellis Act Evictions:
http://www.sfgate.com/bayarea/article/S-F-politicians-Restrict-Ellis-Act-evictions-4981974.php

Tenants Together has a Statewide Petition to Change the Ellis Act:
“…then real estate speculators starting abusing the Ellis Act to turn a quick profit by evicting long-term tenants and selling the units. Ellis Act evictions are now surging. In San Francisco and Los Angeles in particular, thousands of rent-controlled tenants are being displaced by Ellis Act evictions.” – and Berkeley could be next!
http://org2.salsalabs.com/o/5247/p/dia/action3/common/public/?action_KEY=15820

Banks “Securitize” Rents, Cause Concern:

http://www.sacbee.com/2013/11/21/5932043/wall-street-firm-sells-bonds-backed.html

http://www.salon.com/2013/11/06/wall_street_slumlords_outrageous_new_scheme_how_they_could_wreck_economy_again/

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/11/08/wall-street-figured-out-how-to-securitize-your-rent-should-you-worry/

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