Image courtesy of Tenants Together
Image courtesy of Tenants Together

The Berkeley Rent Board voted at their March meeting to ask Senator Hancock and Representative Skinner to work on our behalf to allow cities like Berkeley to be a part of the statewide Ellis Reform. Meanwhile, the current bill from Mark Leno (SB 1439) – which will only protect San Francisco – narrowly passed the Senate Transportation and Housing Committee. Now it heads to the Judiciary. Although BTU wants protections against these speculative evictions to be open to Berkeley renters, we are still excited to see help for San Francisco may be on the way!

Tenants Together has published a fascinating report called The Speculator Loophole with help from the Anti-Eviction Mapping Project. The report shows that more than half of the owners who want to “go out of the rental business” bought the property within one year of deciding to evict everyone. The Leno bill calls for owners to hold rental property for five years before they can “go out of business” with the Ellis Act – San Francisco hopes this will stop speculative evictions.

http://tenantstogether.org/downloads/Ellis%20Act%20Report.pdf

San Francisco also voted this week to increase relocation assistance for Ellis evictions: “On Tuesday, the Board of Supervisors voted 9-2 to approve legislation that requires property owners in such eviction situations to pay the difference between the tenant’s current rent and what the tenant would have to pay for a similar apartment under current market conditions for two years…a tenant who moved into a two-bedroom apartment in the Mission district in 1987 at a monthly rent of $909, a relocation payment of $44,832 would be required.”
http://www.sfexaminer.com/PoliticsBlog/archives/2014/04/09/sf-boosts-compensation-for-ellis-act-evictees

SF Gate on Relocation Payment Increase:
http://www.sfgate.com/news/article/S-F-supervisors-OK-bigger-Ellis-Act-payouts-5386872.php

San Francisco Starts Pilot Program to Legitimize In-Law Apartments:
http://www.ebar.com/news/article.php?sec=news&article=69627

SF Tech Companies Support Ellis Reform:
http://www.beyondchron.org/articles/SF_Tech_Companies_Formally_Back_Ellis_Act_Reform_12534.html

Berkeley is a college town, and that means May and June bring free furniture to the streets as the student population moves into new digs. On Wednesday April 16, the Berkeley Rent Stabilization Board will offer a special workshop on Security Deposit law at their office on Milvia at Center Street, downtown.

Landlord/Tenant – Rights/Responsibilities on Security Deposit Law Seminar
Wednesday, April 16th, 5:15 p.m. – 6:15 p.m. @ the Rent Stabilization Board Office

Most rules about deposits are state law, so they apply to all renters, even those who are not under the rent control portion of Berkeley’s tenant protection ordinance.

Another good resource for planning to move in or move out is provided by the University of California campus group Renters Legal Assistance:
Getting Your Security Deposit Back

Tenants Together, the statewide renters organization (BTU is a member group) also offers some good information here:
http://tenantstogether.org/article.php?id=571

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

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

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

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

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

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

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

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

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

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

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

Doorbells

Redistricting Referendum: Tuesday February 25
The referendum passed, with over 150 volunteers collecting 7,500 signatures over the holidays. Now, the Referendum Coalition needs support at the City Council meeting Tuesday February 25. If you can’t attend, please email Clerk@cityofberkeley.info to support ITEM 21b: “Choose an Alternate Redistricting Map, not a Special Election.” (A Special Election is recommended in Item 21a from the City Manager.)
Item 21b:
http://www.ci.berkeley.ca.us/Clerk/City_Council/2014/02_Feb/City_Council__02-25-2014_-_Regular_Meeting_Agenda.aspx
Referendum in the news:
http://blog.sfgate.com/stew/2014/02/10/berkeley-voters-overturn-gerrymandering/

Demolition Ordinance
The City Council seems to have put bad changes to the demo ordinance on the back burner. However, some buildings may still have Zoning hearings under the old rules, which include an anti-tenant interpretation by the City Attorney. We will keep you posted.
Berkeley Neighborhoods Council:http://www.berkeleyneighborhoodscouncil.com/Newsletters/2014/Issue5/BNC_eNEWS_5_NHF5.htm
Demolishing older, affordable rentals to replace with luxury apartments is a national trend:
http://www.bloomberg.com/news/2014-01-13/demolitions-dire-for-poor-as-affordable-rent-gap-grows-economy.html

Tenant Sues over Eviction for Air BnB
“…case highlights an ongoing issue of Airbnb and other sites that allow people to rent out spare rooms or entire apartments to temporary visitors. Critics charge that the new sharing-economy services are so lucrative – and so laxly regulated – that they are forcing out residents and driving up rents by reducing the supply of available housing.”
Airbnb profits prompted S.F (PDF)

Rich People Say the Darndest Things
“The problem is that the world and this country should not talk about envy of the 1 percent. It should talk about emulating the 1 percent,” he said. “The 1 percent work harder. The 1 percent are much bigger factors in all forms of our society.” –Billionaire Sam Zell, who owns Equity Residential, now Berkeley’s Largest Landlord.
http://www.huffingtonpost.com/2014/02/05/sam-zell-1-percent_n_4733196.html

Consider the Source
“For moderates like Mayor Ed Lee, appearing to get tough on the Ellis Act is an easy way to address voter discontent about affordability without having to wade into more controversial issues like housing density and planning reform.”
http://www.modernluxury.com/san-francisco/story/the-eviction-crisis-wasnt

Class Action Lawsuit Against Central Valley’s Biggest Slumlord
When repairs are made, the complaint alleges, they are merely cosmetic and fail to address the health and safety issues, and JD Homes often retaliates against tenants who complain to authorities.
http://tenantstogether.org/article.php?id=2944

More on Tenant Displacement in San Francisco
“There’s 50,600 proposed units of housing coming to San Francisco. Approximately 27,000 of these housing units have already been approved by officials, with 6,100 currently under construction. Most of the housing being built is “market rate,” meaning that it’s priced for those who can afford to spend roughly $36,000 a year on rent…The tech boom has conspired with rising housing prices to create an incredibly profitable incentive for landlords to push out low-income tenants and replace them with wealthy buyers, in spite of all the new units coming to market.”
http://www.counterpunch.org/2014/02/13/san-franciscos-displacement-crisis/

day-of-action-2014-flyer-image_Page_1
Renters’ Day of Action
Tuesday February 18
Click to download a PDF

Berkeley Tenants Union members will join with tenants from around the state in the first tenant March and Rally in Sacramento in many years.

On Tuesday February 18, Tenants Together is leading member organizations like BTU to the capital. BTU members and friends are invited to hop on a bus in the morning and return by about 1 PM to the East Bay. If you live in Berkeley, please email us for more information. Sign up directly on the Tenants Together website if you are not a Berkeley tenant.

With evictions in California’s larger cities creating panic among long-term renters, it is time for solidarity. State cuts to affordable housing threaten to have long-term impacts unless restored, and elimination of the renters’ rebate in state income taxes has left low-income senior and disabled tenants with less food on the table. These are the issues we will march to support on the Renters’ Day of Action.

Signing an online petition is not enough. Even writing to your state representatives is not enough. It’s time to take to the streets!

◘ Restore the Renter’s Rebate For Seniors and Disabled

In 2008 the Governor cut the Senior Citizens Renters Tax Assistance Program from the California budget. The program allowed disabled and senior tenants making less than $44,096 a tax rebate of about $300. Fixed income renters relied on this rebate.

http://www.tenantstogether.org/section.php?id=136

◘ Support the Homes and Jobs Act

State Bill 391 puts a fee on recording of real estate transactions – except home sales – which would generate $500 million a year to fund construction of housing for working people. California could use this money to leverage another $2.78 billion in federal assistance and bank loans to boost construction and create 29,000 jobs.

Homes and Jobs PDF

◘ Reform the Ellis Act

Speculators are misusing the state law to get around local tenant protections. In San Francisco, over 3,700 families have lost their homes through this type of eviction. This reform asks that local governments have more control over how Ellis evictions are carried out.

http://www.antievictionmappingproject.net/ellis.html

If you have not, please sign the ELLIS REFORM PETITION:

http://bit.ly/reformellis

Photo courtesy of Tenants Together.
Photo courtesy of Tenants Together.

Berkeley is one of 14 cities in California that enjoys strong protections for tenants. San Francisco has decent protections, but has seen a huge wave of evictions that use a state law, the Ellis Act, to get around local rules.

Now there is a statewide effort to reform the Ellis Act. The law was intended to allow long-term owners to “go out of the rental business” but instead allows investment companies and other speculators to buy rent controlled buildings, evict all the tenants, and sell the units as condos or tenancies-in-common at huge profits.

Activists from San Diego to Redding are hoping a reformed law might require an owner to hold the building for at least five years before they could “go out of business” – this would eliminate speculators who buy rental properties only to flip them after evictions. However, in 2007 a bill in the California legislature which called for a five-year delay failed miserably. If a broad coalition from many cities – including Berkeley – doesn’t support the current reform, we could end up with a state exemption to the law that will only protect San Francisco.

And you know what they say – “When San Francisco sneezes, Berkeley get a cold!” If SF was able to curb their epidemic of evictions, speculators will quickly turn to Berkeley. This is why the Berkeley Tenants Union wants you to join with us in supporting broad statewide reform of the Ellis Act now!

Our friends at Tenants Together have put together a petition as a first step:

A state law, The Ellis Act, is responsible for the unfair eviction of thousands of seniors and families in California. In the past few years Ellis Act evictions have surged, with thousands of long-term tenants displaced from their homes.

Send the message that we will stand up for our communities against speculation.
http://org2.salsalabs.com/o/5247/p/dia/action3/common/public/?action_KEY=15820

San Francisco is taking other steps to end their eviction crisis – Berkeley should also increase Ellis relocation payments, restrict unit mergers, and give evicted residents priority for local affordable housing – join BTU to fight for this today! Right now, the revisions to the Berkeley Demolition Ordinance proposed by Mayor Bates will make it easier to eliminate rent controlled units by merging them to create big houses for the wealthy — the exact opposite of how San Francisco is changing their law!
http://sfpublicpress.org/news/2013-12/supervisors-approve-plan-to-protect-tenants-against-displacement

Hundreds of seniors, families and long-term renters evicted in San Francisco
http://www.beyondchron.org/articles/Stopping_Ellis_Act_s_Economic_Terrorism_12134.html

The Ellis reform bill would allow local governments more say in preventing evictions:
http://m.sfexaminer.com/sanfrancisco/tenant-advocates-seek-support-for-reforming-ellis-act/Content?oid=2665435

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/

Handful of MoneyWe’ve got some good news about SB603 – the great new law about Security Deposits that we keep telling you about. Thanks to unified support from tenants all over the state, the bill has moved out of committee and into the state Senate.

However, we really need to KEEP UP THE PRESSURE. The California Apartment Association has its members writing letters every day. They say, “With the change to the penalty provisions of the law, more tenants would surely challenge their deposit return. Any degree of victory would mean getting all of a security deposit back, plus penalties and actual damages.” Indeed!

WRITE YOUR SENATOR NOW: http://yourdeposit.org/

SF Chronicle article:
http://www.sfchronicle.com/realestate/article/Security-deposit-rules-in-Leno-legislation-4540903.php

What the opponents are saying:
http://caapartments.org/help-caa-fight-interest-on-security-deposits-bill/

Justice?Berkeley’s Rent Board will discuss support for the state bill SB603 which would provide further protections for tenants and their security deposits. All-too-often, landlords don’t return security deposits or follow state laws, such as the rule that they have to let tenants know they can request a pre-move inspection, or the law that landlords must send copies of receipts. SB603 would allow a chance for tenants who have to take owners to small claims court to get damages. And if landlords risk having to pay the tenant MORE than just their deposit, maybe landlords won’t try to keep it for no good reason.

Tell the Rent Board what you think on Monday, or write them here: rent@ci.berkeley.ca.us
If you write the Rent Board, please say you support BTU and make sure you title your email “For the Commissioners re: May 13 Meeting” so it gets to them.

Tenants Together, the statewide group leading the charge on this issue, just published a report about security deposit theft.

The report contains the following findings from a survey of Tenants Together members from across the state:

  • 60% experienced unfair withholding of some or all of their deposit;
  • 53% did not receive any of their deposit funds within 21 days of vacating the last time they moved;
  • 36% reported that their entire deposit was never returned the last time they moved.

The report also analyses of the outcomes of security deposit cases filed by tenants in small claims courts to recover their deposits. The three-courthouse study, the first of its kind in California, found:

  • Tenants prevailed in over 70% of the cases that went to judgment;
  • In only 3.5% of the security deposit cases filed by tenants was a landlord assessed a penalty by the court.

read more here:
http://www.tenantstogether.org/article.php?id=2707

state bill:
http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140SB603