Action/Alerts

Today, July 24, SPOSFI filed suit in California State Superior Court against the Campos legislation that mandates payments of twenty-four months of rent differential to tenants who are displaced by the invoking of the Ellis Act by property owners.

In addition, our partner groups, and individual plaintiffs, filed a SEPARATE suit in Federal Court against the same legislation. Plaintiffs in this suit, the Levins, are, incidentally, members of SPOSFI. They are represented by the Pacific Legal Foundation.

These separate actions are part of our pledge to fight back, together, against legislation that Kills Housing. Here is the press release for our court action.
 
Contact: info@smallprop.org

Andrew M. Zacks
Zacks & Freedman PC
az@zulpc.com   ph. (415) 956-8100

FOR IMMEDIATE RELEASE
 
SMALL PROPERTY OWNERS OF SAN FRANCISCO INSTITUTE JOINS LAWSUIT OPPOSING INCREASED ELLIS ACT RELOCATION PAYMENTS

 
July 24, 2014 – San Francisco – Today, the Small Property Owners of San Francisco Institute joined local property owners in filing a lawsuit against the City and County of San Francisco. The lawsuit challenges a new ordinance that dramatically increases relocation payments that landlords must give to tenants who are lawfully evicted under the state's Ellis Act.

The new ordinance, San Francisco Ordinance No. 54-14, was introduced in February 2014 by Supervisors David Campos, Jane Kim, John Avalos, and Eric Mar.The ordinance passed on April 22 and became law.

Under the ordinance, each relocated tenant will be entitled to the greater of either: a) the existing statutory relocation payment (currently $5,265.10 per tenant up to a maximum of $15,795.27 per unit, plus an additional $3,510.06 for each elderly or disabled tenant), or b) the difference between the tenant's current rent and the prevailing market rent for a comparable apartment, multiplied over a two year period.

Example: A 35-year-old tenant is evicted from a rent-controlled apartment in Russian Hill. His current rent is $1,000 per month. Market rents for comparable units are $4,000. The relocation payment would be the higher of a) the existing statutory relocation payment of $5,265.10, or b) $72,000 (the difference between the tenant's current rent and the prevailing market rent ($4,000 minus $1,000) multiplied by 24 months).

The Ellis Act is a state law that guarantees property owners' right to go out of the rental business. The new ordinance's payments effectively prohibit evictions under the Ellis Act, which is illegal under state law. Moreover, the new ordinance's requirements will be applied retroactively, so a property owner who began an Ellis Act eviction under the old law will now be required to pay dramatically more money to her tenants than she expected.

The Small Property Owners of San Francisco Institute is represented by the law firm of Zacks & Freedman, P.C. More information about the lawsuit is available at www.zfplaw.com.

Small Property Owners of San Francisco Institute (SPOSFI)
Founded in 1998, SPOSFI provides owners of small rental properties in San Francisco the tools and information necessary to conduct business successfully in the changing marketplace. Through education programs, publications and workshops, SOPOSFI helps 2,000 members understand their rights and obligations, how to work constructively with government officials, and how to deal effectively with their tenants. SPOSFI is a non- profit organization with a volunteer board. For more information, call (415) 647-2419 or visit  www.smallprop.org.