Tag: passthroughs

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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/