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SPOSFI has filed a lawsuit challenging a new anti-landlord ordinance sponsored by Supervisor John Avalos that went into effect in January.

The Avalos Ordinance would legalize the practice of renovating and enlarging "nonconforming units." (Nonconforming units are "grandfathered" residential units that exceed local zoning laws' density limits.) Controversially, it would also discriminate against nonconforming units that have been the subject of lawful "no-fault" evictions, which are allowed under state and local law. Such units would be denied building permits for up to 10 years following a lawful eviction —even for regular maintenance and minor repairs.

Nonconforming units are different from "in-law" units, which are generally unpermitted and illegal. For example, a permitted third unit on a parcel zoned for two is considered a nonconforming unit. The Planning Department's Information and Analysis Group estimates that approximately 52,000 units in the city are nonconforming, comprising some 14% of the city's housing stock.

Supervisor Avalos initially proposed the ordinance in July 2013 as an expansion of property rights, giving owners new flexibility to alter their nonconforming units. But when criticism of no-fault evictions returned to the political forefront in late 2013, Supervisor Avalos added a punitive caveat to his proposed ordinance: owners could enlarge and remodel their nonconforming units unless a no-fault eviction had taken place in the unit within the last 10 years (or five years for owner move- in evictions). Worse, a literal reading of the ordinance would prohibit the issuance of permits even for routine maintenance and repairs. Why would the city intentionally cause housing units to deteriorate for up to 10 years after a lawful no-fault eviction? The answer is both simple and illegal: to discourage lawful evictions.

SPOSFI, represented by Zacks & Freedman, P.C., filed a lawsuit on January 28 seeking to invalidate the ordinance, and has coordinated its efforts with S.F. Apartment Association. SFAA filed its own lawsuit to invalidate another ordinance sponsored by Supervisor Avalos that imposes new restrictions on residential unit mergers and demolitions.

The SPOSFI lawsuit challenges the ordinance's enactment on several grounds, including violation of the Ellis Act, the California Environmental Quality Act (CEQA), the San Francisco Charter, and the Planning Code. The case will likely be heard in San Francisco Superior Court in mid-2014.