Tag: housing crisis

By Posted on Posted in Issues

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/

By Posted on Posted in Issues

A special edition of the Berkeley Property Owners Association newsletter came out in early July, announcing their plans to spend at least half a million dollars each year to fund the Berkeley Rental Housing Coalition. Their announcement begins:
“Since the beginning of permanent rent control thirty-five years ago, knowledgeable people have often suggested that Berkeley property owners should establish a legal defense fund and /or a political action committee.”

Apparently, our Mayor, Tom Bates, is one of those people!

In his speech, Bates also called for an end to the elected Rent Board in Berkeley. In recent press articles, the landlords have said the Board is “answerable to no one” – BTU thinks the Board is answerable to the voters, since they are elected.

From the Contra Costa Times: “Introduced by BPOA President Sid Lakireddy as a friend and supporter of the organization, Bates talks about his early days as a real estate salesman, manager and developer, observing wistfully that a former partner later became a billionaire… He touts the Downtown Area Plan; mocks the sponsors of a move to modify it last year; proposes a downtown office building to entice startup companies to stay in Berkeley; and suggests it might be time to bring the Rent Stabilization Board and the Berkeley Housing Authority under direct city control.
Late in the video, Bates sounds a warning: “You need to organize yourselves,” he says. “You need to think about the possibility of forming a PAC … because you’re going to be under attack.”
http://www.contracostatimes.com/breaking-news/ci_28426339/fremont-chastised-destroying-emails-berkeley-mayor-tom-bates

Landlords Plan to Sue Rent Board
“It depends on the money they have. They can run candidates,” UC Berkeley assistant adjunct professor public policy Larry Rosenthal said about the new coalition’s potential influence. “A group of landlords that are organized well will have substantial influence.”
http://www.dailycal.org/2015/06/25/berkeley-landlord-coalition-raises-money-to-seek-greater-political-influence/

People Power Can Beat Money Every Time!
Get Involved! Come to the Potluck July 8th!

Berkeley Still Has It Better
“…In Oakland, when a landlord unlawfully raises rents throughout an entire building, the burden falls to each tenant to write a formal petition and present his or her case in a hearing. As a result, many 1565 Madison residents — who chose not to file petitions or missed a hearing, in some cases because they didn’t have the resources to complete paperwork or because they feared retaliation — have to pay the entire rent increase, even though the city deemed a portion of it illegal.”
http://www.eastbayexpress.com/oakland/how-oakland-landlords-prevail-in-rent-disputes/Content?oid=4345386

By Posted on Posted in Issues

St. John
Leaders of the Berkeley Property Owners Association – including owners of Premium Properties, Shaw Properties, Everest, real estate agent Jon Vicars, legal advocate Michael St. John, and the notorious Lakireddy family – have formed a new political coalition. Is their primary purpose to run candidates for the Rent Board? No. Is it to bring lawsuits like the 2012 libel cases, to scare tenants away from running for election? No. We fully expect them to do those things as well, but the Berkeley Rental Housing Coalition is landlords pooling their money mostly to sue the Rent Board over a $19 increase in the registration fee. It was the first increase of the fee, which funds the Rent Board agency, in six years.

“…She was more concerned that lawsuits funded with PAC money could divert the board from its mission. ‘I think (the landlord’s) interest may be more in the board spending time and money to defend it, thus taking away from our core services.’ ”
http://www.insidebayarea.com/breaking-news/ci_28332932/berkeley-landlords-plan-coalition-challenge-rent-board

CA Supreme Court Upholds San Jose Requirements for Developers – But Inclusionary Housing Ordinance Will Not Apply To Rentals!

The state Supreme Court upheld the right of a city to impose affordable housing requirements on developers of for-sale housing, but let stand the 2009 Palmer decision, which said cities cannot limit the rent a developer can charge for newly built rental units because of the state Costa-Hawkins law. The decision also made it clear that a nexus study is not required because cities do not have to prove that the demand for affordable housing was created by the development of new buildings.

The ruling will impact over 170 local governments with similar inclusionary housing requirements and allow Berkeley to move forward with inclusionary laws. It’s good news for anyone who might scrape it together to buy some “affordable” housing, but bad news for folks who are pretty sure they will be renters for the rest of their lives. The decision again shows the need for tenants to come together statewide to change the Costa-Hawkins law.

“The Court noted that many land use regulations result in a reduction in the market value that a property may command in the absence of regulations and this does not constitute a taking of the diminished value of the property. In this regard, the Court reasoned that the affordable housing requirement was no different than limitations on density, unit size, number of bedrooms, required set-backs, or building heights.”
http://www.jdsupra.com/legalnews/california-supreme-court-upholds-88596/

California Building Industry Association v. San Jose Decision
CA Building Trades Vs San Jose final

Berkeley Student Paper Discusses Inclusionary Case
www.dailycal.org/2015/06/16/california-supreme-court-ruling-sets-precedent-for-inclusionary-housing-in-state/

For More Info on Costa-Hawkins:
“The Costa-Hawkins Act is not only contributing to soaring rent prices, but it’s also creating barriers to new housing construction.”
http://www.eastbayexpress.com/oakland/its-time-to-overturn-the-state-ban-on-rent-control/Content?oid=4229744

Another Tenant Screwed By Costa-Hawkins
http://crowandrose.com/2013/12/another-tenant-screwed-by-costa-hawkins/

Berkeley Tenants send huge hugs to the families of all the young people lost or hurt at Library Gardens.

Faulty Construction Likely Cause of Balcony Collapse
“The horrible structural failure of a 5th floor balcony that killed six and injured seven…has brought to the forefront the issue of safety in the frantic construction of apartment buildings mushrooming the city.”
http://dissidentvoice.org/2015/06/berkeley-structural-tragedy/

Deadly Balcony Collapse Tied to Rotted Wooden Beams
http://www.foxnews.com/us/2015/06/17/collapsed-berkeley-balcony-reportedly-not-intended-for-large-group/

A History Of Housing Safety Complaints
“The apartment complex’s housing code violations included holes in walls, trip hazards from damaged floors, loose metal strips in doorways, inoperable ceiling fans in laundry rooms and missing or inoperable exit signs throughout the building. The majority of violations were found during a random September 2013 city inspection of several low-income and affordable housing units in the complex.”
http://www.latimes.com/local/lanow/la-me-ln-berkeley-code-violations-20150619-story.html

Berkeleyside Report On Builder Track Record
“As it turns out, however, there was also a $3.5 million settlement in 2013 in Millbrae related to waterproofing and wood rot. And, that same year, Trestle Glen Associates, in Colma, filed a breach of contract lawsuit, still underway, against Segue related to ‘water intrusion causing tangible property damage.’ ”
http://www.berkeleyside.com/2015/06/17/firm-that-built-berkeley-complex-has-been-fined-sued/

Builder Under Scrutiny BEFORE Balcony Collapse
“The building has been the subject of numerous complaints, both through the city and online. The most recent official complaint, submitted in February to the Berkeley Rent Board, listed missing or broken stairwell lights, missing handrails on stairwells, holes in the walls of public spaces, expired fire extinguishers, and peeling floor material that posed a tripping hazard.”
http://www.berkeleyside.com/2015/06/17/berkeley-building-under-scrutiny-before-balcony-collapse/

Protest Calls For Investigation, Halt for New Construction
A group of concerned citizens has called for a moratorium on new building construction in Berkeley until the tragedy at Library Gardens can be analyzed. The Berkeley Daily Planet posted an editorial with a similar suggestion.

Protesters’ Letter to Council Linked Here
http://www.berkeleyside.com/2015/06/19/protesters-demand-a-halt-on-new-construction-in-berkeley/

Daily Planet Suggests Pause for Building Approvals
http://berkeleydailyplanet.com/issue/2015-06-12/article/43421?headline=Ask-Council-to-Analyse-Problems-Before-Scheduling-New-Construction–

By Posted on Posted in Issues

IMG_0926-1Landlords Form PAC
The Berkeley Property Owners Association announced this week that they are forming a political action committee. “While the Rent Board uses our money to undermine our rights, the BRHC will use its funds to fight for our rights, bringing balance to matters that have been far out of balance for far too long.” The founding landlords pledge to spend at least $500,000 a year to fight against renters rights in Berkeley.
http://www.berkeleydailyplanet.com/issue/2015-06-12/article/43384?headline=Berkeley-Landlords-Form-Political-Action-Committee-to-Raise-Half-Million-per-Year–

Short-Term Rentals (AirBnB) Discussion Continues June 23
http://www.mercurynews.com/my-town/ci_28289073/berkeley-discussion-short-term-rental-regulations-stalls-city

http://www.berkeleyside.com/2015/06/11/berkeley-council-meeting-ends-abruptly-during-testimony/

Students Call for Tight Limits on Vacation Rentals
“Research has shown that short-term and vacation rentals increase the costs of housing by reducing the supply of affordable housing available on the market…. If City Council decides to legalize short-term and vacation rentals, such as those found on Airbnb, then it must adequately regulate them in order to protect the city’s supply of affordable housing. The proposal put forward by Mayor Tom Bates and Councilmember Lori Droste, while a good start, would fail to adequately regulate short-term and vacation rentals so that they do not reduce the supply of affordable housing in Berkeley.”
http://www.dailycal.org/2015/06/08/protect-housing-costs-increase-regulation-of-short-term-rentals/

Pro-Development, Pro-AirBnb “Renters” Group Gets YELP Donation.
“I believe Sonja represents a massive segment of the population that’s been largely ignored in the discussion on Bay Area housing – renters,” said Stoppelman.”
http://www.bizjournals.com/sanfrancisco/blog/real-estate/2015/03/pro-density-sfbarf-yelp-jeremy-stoppelman.html

Upcoming Dates:

Wednesday July 8 – BTU Member’s Meeting and Summer Potluck

CITY COUNCIL
Tuesday June 23, 7 PM – Short Term Rentals continues
Thursday June 25 5 PM – Community Benefits from Downtown High-rise Buildings
Tuesday June 30
Tuesday July 14
Tuesday September 15

ZONING BOARD
Thursday 6/11 at 7:00 PM
Thursday 6/25 at 7:00 PM – Demolition of 18-Unit Rent Controlled Building
Thursday 7/09 at 7:00 PM
Thursday 7/23 at 7:00 PM
Thursday 8/27 at 7:00 PM

PLANNING COMMISSION
Wednesday June 17
Wednesday July 1
Wednesday July 15 – possibly Short Term Rentals
Wednesday September 2

By Posted on Posted in Actions
Short-term rentals are more lucrative than permanent housing. Image courtesy of http://www.beyondchron.org
Short-term rentals are more lucrative than permanent housing. Image courtesy of http://www.beyondchron.org

Berkeley City Council Continues Discussion of Short Term Rentals Tuesday June 9th
7 PM @ Longfellow Middle School Auditorium, 1500 Derby

  • Please join BTU in supporting Councilmember Arreguin’s amendments to the Mayor’s proposal.
  • Ask that Council does not lift the ban on renting whole, empty units on Airbnb and other vacation platforms.
  • Say that we need rent controlled units and other empty apartments to be offered for Berkeley residents.
  • Ask the law be written so that it can be easily enforced!
  • Ask them to include the Rent Board in the referral so that the new law is in harmony with existing state and local laws on rental units.

Revised Council Item 32: 2015-06-09 Item 32 Short-Term Rental

Berkeleyside: Short Term Rentals
“The conversion of apartments into a short-term rentals, where guests come and go, is part of a trend that is sweeping Berkeley. While renting out apartments to anyone for less than 14 days is prohibited under Berkeley law, hundreds of homeowners are renting out rooms, suites, whole houses, cottages — even a tent and a yurt — according to listings posted on Airbnb, VRBO (Vacation Rentals by Owner), Home Away and other short-term rental websites… Property owners who rent out for short terms often stand to make a substantial amount of money, certainly more than if they rented month to month.”
http://www.berkeleyside.com/2015/05/26/short-term-rentals-are-squeezing-out-berkeley-renters/

Berkeley Tenants Union Public Comment
http://berkeleydailyplanet.com/issue/2015-06-05/article/43372?headline=The-Problem-with-Short-Term-Rentals-Perspective-of-Berkeley-Tenants-Union

State Won’t Force Airbnb to Share Information for Enforcement
“Legislation aimed at forcing Airbnb Inc. and other short-term rental sites to ensure collection of local taxes stalled in the state Senate on Thursday.
SB 593 would have required short-term housing platforms to report quarterly to cities and counties the addresses that were rented out on their sites as well as the number of nights those properties were rented and for what prices. Local governments could have used the information to ensure transient occupancy taxes were paid and to ferret out vacation rentals operating in cities that bar them. The bill had the backing of various cities, hotel lobbies and organized labor. But Airbnb fought back against the proposed regulations, hiring its first contract lobbyist in Sacramento and rallying its users with emails and phone calls. The company, along with its allied tech lobbies and the Santa Monica group Consumer Watchdog, framed the debate as a battle over its customers’ privacy.”
http://www.therecorder.com/id=1202728452451/Airbnb-Bill-Halted-By-Lobby-Blitz?slreturn=20150505224830

Should New Backyard Cottages Be Allowed as Short Term Rentals?
http://www.berkeleyside.com/2015/03/25/officials-to-relax-rules-for-berkeley-granny-flats/

“Airbnb Will Probably Get You Evicted and Priced Out of the City”
“If you look at the economics of it, Airbnb is ruining your life. Or, at least, your chances at a lasting life in the city. In an attempt to make an extra buck, you may be slowly screwing yourself out of the market…Every unit that’s being used for illegal hotel activity is a unit that’s not on the residential housing market.”
https://news.vice.com/article/airbnb-will-probably-get-you-evicted-and-priced-out-of-the-city

In Other News

Fun Protest! Saturday June 6 @ 10 AM
“…To fly large red, black and white balloons, three feet in diameter, to a height of 194 feet, near the planned site of The Residences at Berkeley Plaza, also known by its street address 2211 Harold Way. The building would be 180 feet high — or 194 feet, with the addition of an elevator housing and other infrastructure on top.”
http://www.contracostatimes.com/breaking-news/ci_28244224/berkeley-activists-plan-visual-protest-downtown-proposal

Berkeley Rents Too Damn High
“The last time rents rose so crazily was 15 years ago during the last technology boom, and history seems to be repeating itself.” In 2000, the dotcom boom market, rents skyrocketed and now we are dealing with some of the same issues,” said Nick Traylor, a manager at the Berkeley Rent Stabilization Board. Some landlords are even increasing rents by $400 to $1,000 a month if they have a tenant vacate a unit, said Traylor. He stressed these substantial increases are on top of the already high market rates being charged to the previous tenant. Elaine Perkins, who runs the Cal Rentals office at UC Berkeley, said students are living in cramped conditions to afford decent accommodation.”
http://www.berkeleyside.com/2015/05/28/berkeley-rental-rates-skyrocket-causing-problems-for-students-and-those-on-middle-incomes/

German Rent Freeze; Berlin Rent Ceilings
“Berlin is limiting rent increases to 10 percent of average rents in neighborhoods suffering housing shortages. Landlords often jack up rents by as much as 40 percent to take advantage of well-heeled newcomers who are flocking to the city from the around the world, said Reiner Wild, managing director of the Berlin Tenants Association.
“The rent ceiling is very important for Berlin because the difference between the rent paid in existing contracts and new contracts is so high,” Wild told The Guardian.”
https://news.vice.com/article/berlin-imposes-rent-caps-as-worlds-most-desirable-cities-become-gated-communities
Law allowing rent controls on Berlin’s inner-city property prevents landlords charging new tenants more than 10 per cent above the local average
http://www.telegraph.co.uk/finance/property/news/11645625/berlin-rent-control-law-housing-crisis.html
“Berlin is pioneering the rent cap after the national parliament approved the law, aimed at areas with housing shortages, in March… “We don’t want a situation like in London or Paris,” said Wild. “The reality in Paris or London is that people with low income have to live in the further-out districts of the city.”
http://www.theguardian.com/world/2015/jun/01/rent-cap-legislation-in-force-berlin-germany

By Posted on Posted in Issues

The Trouble With AirBnB

The owner of 3100 College lists 11 Berkeley apartments on AirBnB.
The owner of 3100 College lists 11 Berkeley apartments on AirBnB.

The Berkeley City Council will begin the process of legalizing short-term rentals.

Right now, Berkeley law prohibits residential rentals of less than 14 days, according to a March 18 Planning Department staff report. However, over one thousand such rentals are listed on hosting platform Airbnb in Berkeley. The City plans to legalize these rentals in some form, and collect the hotel tax from them.

The Berkeley Rent Board has identified three issues with potential short term rentals regulations in a letter they are sending to the City Council: the loss of rental housing, adequate enforcement of new laws, and preservation of existing rights for tenants. “Allowing unlimited short-term rentals or creating regulations that lack enforcement will contribute to the housing crisis in Berkeley,” they said.

Meanwhile, Berkeley’s code inspectors don’t seem to be enforcing the existing prohibition. Two Berkeley Tenants who have been to code enforcement have been told different things. A few months ago, a tenant who lives beneath a vacation rental was told at the counter that “it’s illegal but there is nothing you can do about it.” Another Berkeley Tenant who lives next door to such a rental spoke to code enforcement last week and was told it is hard to find evidence of the rentals. Meanwhile, San Francisco fined one landlord $276,000 for evicting tenants with the Ellis Act and then renting to tourists on VRBO.

The central question in the local debate seems to be how to limit short-term rentals of rent controlled units, particularly in owner-occupied, smaller buildings. The Rent Board letter says that such rentals could still have a big impact on available rental housing, and cites a chart from the Housing Element which shows 21% of all Berkeley housing is in 2-4 unit buildings. It seems that the Rent Board is discussing rentals of empty units like hotel rooms, not homes where the occupant is away on their own vacation. BTU has identified a handful of large landlords renting five or even ten units to tourists all year round, and is examining Santa Monica’s new law as a model, since that town has rental control rules similar to the Berkeley laws on rental units.

If you are a tenant who has been displaced – and replaced – by a tourist rental, contact BTU. We are also looking for more tenants who can no longer relax at home because the unit next to them has been turned into a hotel.

The City Council is expected to discuss a framework for regulations, then refer the issue to the Housing and Planning Commissions, as early as May 26.

IMPORTANT DATES

Thursday May 21 @ 10 AM
4×4 Committee (Rent Board/City Council)
2001 Center Street
Rent Stabilization Program’s Law Library, 2nd floor
http://www.ci.berkeley.ca.us/Clerk/Home/4x4_Committee_Homepage.aspx

Tuesday May 26 @ 7 PM
City Council Meeting
2134 Martin Luther King Jr. Way
ITEMS 19 and 21
http://www.ci.berkeley.ca.us/Clerk/City_Council/2015/05_May/City_Council__05-26-2015_-_Regular_Meeting_Agenda.aspx

LINKS

March 18 Staff Report to Planning Commission:
http://www.ci.berkeley.ca.us/Clerk/Commissions/Commissions__Planning_Commission_Homepage.aspx

Berkeley Rent Board Letter to City Council (Item 4):
http://www.cityofberkeley.info/Rent_Stabilization_Board/Home/Agenda__RSB_2015_May_11.aspx

San Francisco City Attorney Sues Landlords Over Short-Term Rentals
“Illegal conversions that push long-term tenants out of their homes diminish the availability of residential rental units for San Franciscans, and they’re a significant contributor to our housing affordability crisis,” Herrera said. …The City Attorney’s Office suspects that the Lees aren’t the only landlords flouting state and city laws in that fashion, and is eager to pursue other cases like this one. Folks who want to report violations like the Lees’ are encouraged to contact the City Attorney’s code enforcement hotline.”
http://sfist.com/2015/05/07/landlords_who_evicted_tenants_to_ma_1.php

“Also last year, Herrera filed a similar case against landlords in North Beach. That case settled in January with the landlords paying $115,000 in penalties and agreeing to a similar injunction.”
http://www.sfgate.com/business/article/Landlords-fined-for-evicting-tenants-to-make-a-6246550.php

Santa Monica Bans Short Term Rentals of Whole Units
“Santa Monica has taken one of the strongest stances of any city against the practice of professional landlords hoarding all their properties for tourists instead of for actual renters, keeping housing off an already crunched and expensive market. Full-unit rentals account for the overwhelming majority of the listings on Airbnb in Los Angeles, and for nearly all of the listings that actually make money.”
http://la.curbed.com/archives/2015/05/santa_monica_just_banned_airbnbs_biggest_moneymakers.php

By Posted on Posted in Issues
The Planning Commission will be discussing Vacation Rentals on March 18, 2015!

SF’s New Vacation Rental Law Making Everyone Unhappy
http://www.triplepundit.com/2014/10/san-francisco-airbnb-wins-vacation-renters-lose/?doing_wp_cron=1425914928.0972390174865722656250
“Residents were previously restricted from renting out their homes for periods of less than 30 days, according to a law that the city said protected housing rates and helped to regulate property rentals. The new law allows residents who live in the city for a minimum of nine months of the year to rent out rooms or residences for short stays for up to 90 days of business per year….
The legislation, he said, was “easily subvertible” and encourages homeowners to try to find a way around the restrictions. “A person has to declare that it’s their permanent residence, and anyone can say that about any place [and] this invites people to do all sort of things and then say ‘come catch me,’” he told SFGate.”

SF Already Discussing Changes; Can Law Be Enforced?
http://www.sfexaminer.com/sanfrancisco/san-francisco-considers-revising-airbnb-law-to-help-enforcement/Content?oid=2922455
“But high-ranking city planning officials said there are loopholes in the current law that no amount of resources could fix. ”
“The department said that without cooperation from the host platforms, it can’t enforce the requirement that there be 90 days of unhosted stays — those where the resident is not at the rented unit — when there is no cap on hosted stays. There has also been concern about the low number of short-term hosts who have taken steps to register under the law. Sixty residents successfully applied and received registration numbers, which are required to be included in the host’s listings on websites like Airbnb. But there are an estimated thousands of other listings that remain illegal.
Sanchez said the department is “frustrated” that hundreds turned out to support the law’s adoption but there hasn’t been the same turnout to comply with it.”

SF City Attorney Sues Two Landlords
http://www.sfgate.com/bayarea/article/S-F-city-attorney-sues-2-landlords-over-5425826.php
“Illegal short-term rental conversions of our scarce residential housing stock” are contributing to “a housing crisis of historic proportions,” Herrera said in a statement.
To illustrate, the suits cited the proliferation of short-term vacation rentals in San Francisco advertised on popular websites: 6,225 on Airbnb, 1,413 on VRBO and 1,351 on HomeAway, VRBO’s parent company.”

SF Tenant Advocates Sue Two Vacation Rental Firms
http://www.sfexaminer.com/sanfrancisco/housing-rights-committee-lawsuit-alleges-vrbo-homeaway-violating-sf-laws/Content?oid=2918721
“The legal action comes a day after The City’s Short-Term Residential Rental Ordinance legalizing home rentals for periods of less than 30 days went into effect. Hooshmand said the new legislation allowing property owners or tenants to rent space short-term if they meet specific criteria will not rectify the various allegations against VRBO and HomeAway.
The new legislation, according to the Committee’s Executive Director Sara Shortt, does not include a strong enforcement mechanism and “actually gives us all the more resolve to put the brakes – in this case through litigation – because the new rules are not going to adequately protect tenants from displacement due to the short-term rentals industry.”

SF Sued by HomeAway – New Law Too Strict
http://www.washingtontimes.com/news/2014/nov/5/homeaway-sues-san-francisco-over-airbnb-law/
“The lawsuit filed Monday by HomeAway says the law stymies competition and discriminates against both vacation hosts by requiring them to be city residents and vacation-website companies by mandating they collect the city’s 14 percent hotel taxes….”

Even Senator Diane Feinstein Opposes SF Law
http://www.sfgate.com/opinion/openforum/article/Don-t-hand-San-Francisco-over-to-Airbnb-5835325.php
“This is a shortsighted action that would destroy the integrity of zoning throughout San Francisco, allowing commercial and hotel use in residential areas throughout the city.”

SF’s Current Vacation Rental Law – Overview
http://www.sf-planning.org/index.aspx?page=4004

San Diego Begins Revision of Codes for Vacation Rentals
http://www.utsandiego.com/news/2015/mar/08/airbnb-vacation-rental-growth-causing-confusion/
“In San Diego, the regulations that come closest to encompassing short-term rentals are those governing bed-and-breakfasts where residents are renting out one or more rooms in a house in which they are living. In those cases, special permits are needed that require owners to notify surrounding neighbors.”

New York State Bans Most Short-Term Rentals
http://www.nycinsiderguide.com/nyc-vacation-rentals#.VP5CQ44lRzp
“The short of it, is that unless the Landlord owns the entire building, it is illegal to rent or sublet a co-op, condo or apartment for stays less than 30 days. In 2010, the NY State Governor passed a bill and NYC plans to crack down on this law.”

NY City Council Considers Innovative Enforcement
http://town-village.com/2015/03/10/mendez-bill-would-make-illegal-hotels-a-form-of-tenant-harassment/
“(Short-term renters) are coming in at all hours, bringing people they meet into the apartment and it’s then impacting the quality of life, in that there are strangers in their building,” Mendez said. “It’s a breach of peace and quiet in your home because of the noise and people traffic.”
Governor Andrew Cuomo, Schneiderman and Mayor Bill de Blasio announced the launch of a joint enforcement task force last week called the Tenant Harassment Prevention Task Force that will investigate and bring enforcement actions against landlords who harass tenants. Under Lancman and Mendez’s tenant harassment bill, illegal hotel conversions would be included in that definition of harassment. It would fall under the jurisdiction of the task force and would be subject to its investigations and enforcement actions.”

NY City Council Discusses Enforcement, Housing Crisis
http://www.nytimes.com/2015/01/21/nyregion/hearing-pits-tenants-who-denounce-airbnb-against-those-who-profit-from-it.html?_r=0
“At the hearing on Tuesday, which focused on Airbnb, members of the City Council took turns fuming over what they called a reckless enterprise that put neighborhoods in jeopardy and sapped an already-weak affordable housing market. Speaking before a crowd of hundreds who waved placards reading “My Home Is Not a Hotel,” they variously compared Airbnb to a “marauding army” and an “epidemic.”
“No one should have to live in a building or next to someone where the apartment is being used as an illegal hotel, people coming and going, traipsing in and out, no idea who they are,” Councilman Corey Johnson, a Democrat from Manhattan, said.
The hearing, which focused on how the city enforced a state law barring people from renting an apartment for under 30 days unless the apartment’s resident also stays there, grew into a wide-ranging face-off between two groups of city residents who each said they were being battered by the growing cost of housing.”

Guardian Summary of the Debate on Vacation Rentals
http://www.theguardian.com/travel/2014/jul/08/airbnb-legal-troubles-what-are-the-issues
“While the heat is on in Barcelona – where Airbnb have just been fined €30,000 for breaching local tourism laws – the company is also under attack in a growing number of other cities. In New York it is currently in the midst of a prolonged legal dispute with the attorney general, while authorities in San Francisco, New Orleans, Malibu and other US cities are also mounting crackdowns. In Berlin – where Airbnb has been partly blamed for increasing rents – city officials have created a new housing law banning regular short-term letting of rooms without permission from the authorities, something that could have a big impact on the number of Airbnb hosts in the city.”

Spain Makes Nationwide Law
http://www.spain-holiday.com/rentalbuzz/dispelling-the-myths-about-holiday-rental-licences-in-spain
“In the UK you could not rent your home out as a furnished holiday let without meeting set standards in safety and cleanliness, and declaring your earnings to the tax man. And this is essentially what the new law in Spain sets out to do.”

Barcelona Suspends New Licenses
http://www.spain-holiday.com/rentalbuzz/barcelona-suspends-the-issue-of-further-holiday-rental-licences-for-six-months
“…the rights of local residents were being undermined and community life was suffering, due to the volumes of tourist apartments springing up in local neighbourhoods.”

Paris Actually Enforces Vacation Rental Laws
http://www.bloomberg.com/news/articles/2014-08-07/paris-airbnb-cops-want-to-know-if-you-re-rental-is-legal
“As in New York and Barcelona, officials in the French capital say companies such as Airbnb Inc. have spawned a cottage industry of scofflaw landlords who are cheating citizens out of housing and depriving localities of much-needed revenue from the growth in international travel.
Paris Mayor Anne Hidalgo has a 20-person team making unannounced visits to apartments whose owners are suspected of, or turned in by nosy neighbors for, unlawfully renting to visitors.”

By Posted on Posted in Issues

Did you know most states prohibit rent control? Or that here in California rent control is not allowed, only rent stabilization? Plus, the State of California won’t let any local jurisdiction put any building built after 1995 under any form of rent restriction!

Even in California, rent control comes in many shapes – but more and more places are strengthening tenant protections, and soon we will have a statewide movement big enough to repeal Costa-Hawkins, end the Ellis Act, and allow real rent control like Berkeley once enjoyed!

People are starting to realize that “rent control drives up housing prices” is just another landlord lie. If rent control drives up rents, why does it cost just as much to live in Albany (no rent control) as in Berkeley?

Here’s some good info on exciting changes all around us:

San Mateo County
http://www.mercurynews.com/san-mateo-county-times/ci_27620755/san-mateo-county-affordable-housing-crisis-inspires-talks
“If the supervisors were to adopt rent stabilization, the policy would apply only to the county’s unincorporated areas, including the rural coast and the hills of San Mateo and Redwood City. But County Manager John Maltbie said the task force could have a broader impact by engaging city leaders in the conversation.”
“Joshua Howard, with the local apartment association, said job growth has caused the demand for housing to skyrocket and that some property owners he called a “few bad apples” have taken advantage of their tenants by jacking up their rents. “We are discouraging property owners to not be the poster child for rent control,” Howard said about property owners who have raised rents exorbitantly and recent efforts to highlight the impacts on the area’s working poor.” http://www.smdailyjournal.com/articles/lnews/2015-02-25/san-mateo-county-to-study-rent-control-supervisors-form-blue-ribbon-task-force-on-housing/1776425139003.html

Emeryville Wants to Organize
https://neighborland.com/ideas/emeryville-rent-control

63% of Emeryville Households Rent
http://evilleeye.com/news-commentary/commentary/op-ed-the-800-pound-gorilla-in-the-city-is-housing/

Mountain View Wimps Out
http://www.sanjoseinside.com/2014/10/29/rent-control-off-the-table-in-mountain-view-for-now/
“While many of the prospective candidates for the council sympathized with Garcia, none seem keen to take on developers and big-monied apartment lobbies like the California Apartment Association’s Tri-County Division and the Silicon Valley Association of Realtors. Of the nine candidates, most said they simply don’t think rent control will work, including all three renters in the race.”

Rumors say San Jose Renters Want Better Protections
www.sanjoseca.gov/FAQ.aspx?QID=521
“Apartment rents can be raised without a hearing by 8%. They can be raised 21% if the last increase was more than 24 months ago. A landlord can propose a larger rent increase, but it can be contested by the tenant.”

Alameda – the City with a Rent Board but No Rent Increase Restrictions!
http://www.alamedamagazine.com/Alameda-Magazine/July-2014/Is-Rent-Control-the-Answer/

Richmond Housing Element Rejects Rent Control, for Now
http://richmondconfidential.org/2013/01/23/housing-plan-sparks-arguments-on-rent-control-just-cause-evictions/

Richmond Did Extend Good Cause for Eviction to Foreclosures:
Richmond Municipal Code § 7.105.020

Costa-Hawkins:
www.sfaa.org/pdf/CAA-Insights-Costa-Hawkins-Rental-Housing-Act.pdf

Rent Control Laws By State:
http://www.landlord.com/rent_control_laws_by_state.htm

California Cities with Rent Restrictions:
http://www.ci.berkeley.ca.us/Rent_Stabilization_Board/Home/Other_Rent_Control_Jurisdictions.aspx