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(a) Findings and Purpose. San Francisco is in the midst of a housing crisis. As the disparity between rent-controlled and market rate rents continues to grow, landlords have greater incentives to induce tenants in rent-controlled units to move out. Similarly, with the real estate market skyrocketing, many landlords are selling their property with the knowledge that an unoccupied unit can command a significantly higher sale price than an occupied one.
Instead of evicting tenants, some landlords offer cash buyouts to tenants in exchange for the tenants vacating rental units. These are sometimes called buyout agreements. Even buyouts worth tens of thousands of dollars can be recouped by a landlord retaining ownership and re-renting at market rates or selling the unit. Unlike no-fault evictions, these buyouts are unregulated, and can enable landlords to circumvent many of the restrictions that apply when a landlord executes a no-fault eviction. For example, a landlord who executes some types of no-fault evictions must give tenants a certain amount of time to move out, provide funds to tenants to cover relocation costs, and allow tenants to move back into the unit under specified circumstances. Two types of these no fault evictions – the Ellis Act and owner move-in evictions – contain restrictions on how much rent a landlord can charge if the units are re-rented following eviction. Analogous regulations do not exist for tenant buyouts.
Anecdotal evidence indicates that many buyout negotiations are not conducted at arms-length, and landlords sometimes employ high-pressure tactics and intimidation to induce tenants to sign the agreements. Some landlords threaten tenants with eviction if they do not accept the terms of the buyout. The frequency of these buyout offers increased significantly following passage of a San Francisco law in 1996 which restricted, and in many cases prohibited, condominium conversions following no fault evictions. By threatening a specific no fault eviction and then convincing a tenant to vacate rather than receiving the eviction notice, a landlord will avoid restrictions on condominium conversion as well as restrictions on renovations, mergers, or demolitions.
These tactics sometimes result in tenants entering into buyout agreements without a full understanding of their rights and without consulting a tenants' rights counselor. These buyouts vary widely in amounts and, in some cases, are even below minimum relocation benefits which are required to be paid for all no fault evictions. Disabled, senior, and catastrophically ill tenants can be particularly vulnerable, and can face greater hurdles in securing new housing.
The main purpose of this Section 37.9E is to increase the fairness of buyout negotiations and agreements by requiring landlords to provide tenants with a statement of their rights and allowing tenants to rescind a buyout agreement for up to 45 days after signing the agreement, thus reducing the likelihood of landlords pressuring tenants into signing buyout agreements without allowing the tenants sufficient time to consult with a tenants' rights specialist. Another goal of this ordinance is to help the City collect data about buyout agreements. The City lacks comprehensive information about the number, location, and terms of buyout agreements. This dearth of information precludes the City from understanding the true level of tenant displacement in San Francisco.
“Buyout Agreement” means an agreement wherein the landlord pays the tenant money or other consideration to vacate the rental unit. The term “Buyout Agreement” includes an agreement to settle a pending unlawful detainer action if the action was filed within 120 days after Buyout Negotiations commenced. In all other instances, an agreement to settle a pending unlawful detainer action shall not be a “Buyout Agreement.”
"Buyout Negotiations" means any discussion or bargaining, whether oral or written, between a landlord and tenant regarding the possibility of entering into a Buyout Agreement.
(d) Disclosure Required Prior to Buyout Negotiations. Prior to commencing Buyout Negotiations for a rental unit, the landlord shall provide each tenant in that rental unit a written disclosure, on a form developed and authorized by the Rent Board, that shall include the following:
(1) A statement that the tenant has a right not to enter into a Buyout Agreement or Buyout Negotiations;
(2) A statement that the tenant may choose to consult with an attorney before entering into a Buyout Agreement or Buyout Negotiations;
(3) A statement that the tenant may rescind the Buyout Agreement for up to 45 days after the Buyout Agreement is fully executed;
(4) A statement that the tenant may visit the Rent Board for information about other Buyout Agreements in the tenant's neighborhood;
(5) A list of tenants' rights organizations and their contact information;
(6) A statement that information about tenants' rights is available at the Rent Board's office, through its counseling telephone number, and on its website;
(7) A statement explaining the legal implications under Section 1396
(e)(4) of the Subdivision Code for a landlord who enters into one or more Buyout Agreements;
(8) If the landlord is an entity, the names of all people within that entity who will be conducting the Buyout Negotiations, as well as the names of all people within that entity who will have decision-making authority over the terms of the Buyout Agreement;
(9) Any other information required by the Rent Board consistent with the purposes and provisions of this Section 37.9E;
(10) A space for the tenant to sign and write the date the landlord provided the tenant with the disclosure; and
(11) Information provided by the Mayor’s Office of Housing and Community Development regarding the impact of the buyout on the tenant’s eligibility for the City’s affordable housing programs.
The landlord shall retain a copy of each signed disclosure form for five years, along with a record of the date the landlord provided the disclosure to each tenant and the method of service that the landlord used (regular mail, electronic mail, hand delivery, etc.).
(e) Notification of the Rent Board. After providing the disclosures required by subsection (d) and prior to commencing Buyout Negotiations, the landlord shall file a declaration executed under penalty of perjury with the Rent Board, on a form prepared by the Rent Board, that provides the following information:
(1) The landlord’s name, business address, business email address, and business telephone number;
(2) The name of each tenant (if known) with whom the landlord intends to enter into Buyout Negotiations;
(3) The address of the rental unit that may be the subject of Buyout Negotiations, along with the Assessor’s Parcel Number (lot and block) of the building where the unit is located; and
(4) The date that the landlord provided each tenant with the disclosure required by subsection (d), and the method of service that the landlord used.
The Rent Board shall make the information included on this form publicly available, except that the Rent Board shall redact all information regarding the identity of the tenants.
(f) Requirements for Buyout Agreements. Every Buyout Agreement shall:
(1) Be in writing. The Agreement may be executed no sooner than 30 days after Buyout Negotiations commenced. The landlord shall give each tenant a copy of the Buyout Agreement at the time the tenant executes the Agreement.
(2) Include the following statement in bold letters in a size equal to at least 14-point type in close proximity to the space reserved for the signature of the tenant(s). “You, the tenant, may cancel this agreement at any time on or before the 45th day after all parties have signed this agreement. To cancel this agreement, mail or deliver a signed and dated notice stating that you, the tenant, are cancelling this agreement, or words of similar effect. The notice shall be sent to: ________ (Name of landlord) at ________ (Address of landlord). If you do not cancel this agreement by the 45th day after all parties have signed the agreement, the landlord will be required to file a copy of the agreement with the Rent Board no later than the 59th day after all parties have signed the agreement. If the landlord does not file the agreement by the 59th day, you may file a copy, and you shall also have the option to void any language in the agreement in which you have waived your rights or released claims. Any provision of this agreement that purports to excuse the landlord from filing the agreement by the 59th day, or that purports to limit, restrict, or prevent you from filing a copy and/or exercising these options if the landlord has not filed by the 59th day, shall be void and unenforceable.” Immediately after this statement, there shall be a line for each tenant to affix his or her initials.
(3) Include the following statements in a size equal to at least 14-point type: “You, the tenant, have a right not to enter into a buyout agreement”; “You, the tenant, may choose to consult with an attorney and/or a tenants’ rights organization before signing this agreement. You can find a list of tenants’ rights organizations on the Rent Board’s website – www.sfrb.org”; and “The Rent Board has created a publicly available, searchable database that may include information about other buyout agreements in your neighborhood. You can search this database at the Rent Board’s office at 25 Van Ness Avenue, Suite 320.” Immediately after each statement, there shall be a line for each tenant to affix his or her initials.
(4) Include the following statements in a size equal to at least 14-point type: “Under Section 1396(e)(4) of San Francisco’s Subdivision Code, a property owner may not convert a building into a condominium where: (A) a senior, disabled, or catastrophically ill tenant has vacated a unit under a buyout agreement after October 31, 2014, or (B) two or more tenants who are not senior, disabled, or catastrophically ill have vacated units under buyout agreements, if the agreements were entered after October 31, 2014 and within the ten years prior to the condominium conversion application. A ‘senior’ is a person who is 60 years or older and has been residing in the unit for ten years or more at the time of the Buyout Agreement; a ‘disabled’ tenant is a person who is disabled under the Americans with Disabilities Act (Title 42 United States Code Section 12102) and has been residing in the unit for ten years or more at the time of Buyout Agreement; and a ‘catastrophically ill’ tenant is a person who is disabled under the Americans with Disabilities Act (Title 42 United States Code Section 12102) and who is suffering from a life threatening illness and has been residing in the unit for five years or more at the time of the Buyout Agreement. Do you believe that you are senior, disabled, or catastrophically ill as those terms are defined above? Yes ____ No ____ I don’t know ____ I prefer not say ____. “ The question listed in this subsection (f)(4) shall appear in the Buyout Agreement once for each tenant who is a party to the Buyout Agreement. Next to each question shall be a line for the tenant to affix his or her initials.
(5) Include the address of the rental unit in question, as well as the Assessor’s Parcel Number (lot and block) of the building where the unit is located.
A Buyout Agreement that does not satisfy all the requirements of subsections (f)(1)-(4) shall not be effective and may be rescinded by the tenant at any time. A Buyout Agreement that does not include the initials of each tenant next to each of the statements described in subsections (f)(2)-(4), as well as the initials of each tenant next to his or answer to the question listed in subsection (f)(4), shall not be effective and may be rescinded by the tenant at any time.
(g) Rescission of Buyout Agreements. A tenant shall have the right to rescind a Buyout Agreement for up to and including 45 days after its execution by all parties. In order to rescind a Buyout Agreement under this subsection (g), the tenant must, on or before the 45th day following the execution of the Buyout Agreement by all parties, hand deliver, email, or place in the mail a statement to the landlord indicating that the tenant has rescinded the Buyout Agreement.
(h) Filing of Buyout Agreements. The landlord shall file a copy of the Buyout Agreement with the Rent Board no sooner than the 46th day after the Buyout Agreement is executed by all parties, and no later than 59 days after the agreement is executed by all parties. After the 59th day, either the landlord or the tenant may file a copy of the Buyout Agreement. However, regardless of whether any party files the Buyout Agreement after the 59th day, if the landlord had not filed a copy by the 59th day, any provision of the Buyout Agreement in which the tenant waived their rights or released claims shall not be effective and shall be void at the option of the tenant, and the tenant shall be entitled to all remedies authorized by law; provided, however, that said remedies shall not include the displacement of a subsequent tenant in the unit. Buyout Agreements rescinded under subsection (g) need not be filed with the Rent Board.
(i) Posting of Buyout Agreements. The Rent Board shall create a searchable database with information received from filings under subsection (h). The database shall be accessible to the public at the Rent Board’s office and shall include a copy of all filings received under subsection (h). Before posting a copy of any filing received under subsection (h) on its database, the Rent Board shall redact all information regarding the identity of the tenants. The party who filed the Buyout Agreement shall inform the Rent Board whether the Buyout Agreement concerned an unlawful detainer action. If so, the Rent Board shall also redact from the posted Buyout Agreement any information concerning the unlawful detainer action that may be confidential under California Code of Civil Procedure 1161.2.
(j) Annual Report. The Rent Board shall provide an annual report to the Board of Supervisors regarding the implementation of this Section 37.9E. The first report shall be completed by January 31, 2016, and subsequent reports shall be completed by January 31 in subsequent years. The report shall include, but not be limited to, a list of all units that have been the subject of Buyout Agreements that have been reported to the Rent Board under subsection (h). The Rent Board shall post each of these annual reports on its website.
(k) Penalties and Enforcement.
(1) A tenant who has vacated a unit based on a Buyout Agreement may bring a civil action against the landlord in San Francisco Superior Court for failure to comply with the requirements set forth in subsections (d) and (f). The landlord shall be liable for the tenant’s damages. In addition, the penalty for a violation of subsection (d) shall be up to $500. The penalty for a violation of subsection (f) shall be up to 50% of the tenant’s damages. The court shall award reasonable attorneys’ fees to any tenant who is the prevailing party in a civil action brought under this subsection (k)(1).
(2) The City Attorney or any organization with tax exempt status under 26 United States Code Section 501(c)(3) or 501(c)(4) and with a primary mission of protecting the rights of tenants in San Francisco may bring a civil action against a landlord in San Francisco Superior Court for failure to comply with subsection (h). A landlord who has violated subsection (h) shall pay to the City an administrative penalty of up to $100 per day for each document the landlord failed to file, but in no event shall the landlord’s total administrative penalty in a single civil action exceed $20,000. Any administrative penalties collected under this subsection (k)(2) shall be deposited in the General Fund of the City and County of San Francisco. The court shall award reasonable attorney’s fees and costs to the City Attorney or a nonprofit organization that is the prevailing party in a civil action brought under this subsection (k)(2).
(3) A tenant may not bring a civil action under subsection (k)(1) and the City Attorney or a nonprofit organization may not bring a civil action under subsection (k)(2) more than four years after the date of the alleged violation.
(a) Findings. As market rents continue to increase in San Francisco, landlords of rent-controlled units have a greater incentive to prevent long-term tenancies. Complementing the just cause protections in Section 37.9, this Section 37.9F addresses the growing efforts among some landlords to induce their tenants into believing that they are required to vacate their units at a specific time designated in the lease or agreement, despite existing law to the contrary, or to try to avoid certain landlord-tenant obligations altogether. This trend is especially common with respect to corporate rentals, though it is not limited to corporate rentals. Such tactics by landlords undermine rent control and frustrate the purpose of ensuring that rent-controlled units in the City remain available as a long-term housing option for the City’s renters.
(b) Prohibition of Fixed-Term Agreements. Consistent with Section 37.9(a)(2) and Section 37.9(e), any provision of any lease or rental agreement that purports to require a tenant to vacate a rental unit at the expiration of a stated term, or that purports to characterize a tenant’s failure to vacate the rental unit at the end of the stated term as a just cause for eviction (either of them, a “Fixed-Term Agreement”), shall be void as contrary to public policy, and a landlord may not attempt to recover possession of the unit without just cause. This prohibition shall not apply where this Chapter 37 expressly authorizes a fixed-term tenancy (e.g., Section 37.2(a)(D)), or where it expressly authorizes a tenant to be evicted without just cause (e.g., Section 37.9(b)).
(c) Restrictions on Non-Tenant Uses.
(1) A rental unit is being used for a “Non-Tenant Use” when the landlord is allowing the unit to be occupied by a person or entity who is not a “tenant” as defined in Section 37.2(t). Renting a unit to a corporate entity or other non-natural person, or using a unit as housing for one’s employees, licensees, or independent contractors rather than one’s tenants, are nonexclusive examples of Non-Tenant Uses. This subsection (c) is not intended to narrow the definition of “tenant” under Section 37.2(t) or to limit the just cause protections in Section 37.9; the sole intent is to prevent landlords from circumventing or undermining the tenant protections of this Chapter 37, by restricting when a landlord may provide a rental unit to a person or entity to the extent that person or entity does not otherwise qualify as a “tenant.”
(2) Commencing April 1, 2020, it shall be unlawful to use a rental unit or allow a rental unit to be used for a Non-Tenant Use, subject to the exemptions listed in subsection (c)(3). Any provision of any agreement entered into on or after April 1, 2020 that purports to allow a unit to be used for an unauthorized Non-Tenant Use shall be void as contrary to public policy, and the occupants shall instead be deemed tenants under Section 37.2(t).
(3) This subsection (c) does not apply to any of the following:
(A) where the rental unit is subject to an agreement authorizing a Non-Tenant Use that was entered into before April 1, 2020, for the existing duration of that agreement.
(B) the use of a rental unit as a lawful short-term rental as set forth in Administrative Code Chapter 41A.
(C) where the landlord is providing the rental unit to its employees as a condition of their employment to assist in the maintenance or management of a building owned or managed by the landlord (e.g., resident managers).
(D) where an organization with tax-exempt status under 26 United States Code Sections 501(c)(3) is providing access to the unit in furtherance of its primary mission to provide housing, or in furtherance of its primary mission of education by providing housing to teachers.
(d) Required Disclosures. Commencing April 1, 2020, every online listing for a rental unit, excluding listings by landlords or master tenants who will reside in the same rental unit as their tenants or subtenants, must contain a legible disclosure in at least 12-point font that includes the following text: “This unit is a rental unit subject to the San Francisco Rent Ordinance, which limits evictions without just cause, and which states that any waiver by a tenant of their rights under the Rent Ordinance is void as contrary to public policy.” The foregoing text should also be included in print advertisements, if practicable.
(e) Monitoring and Enforcement.
(1) The Board shall receive referrals regarding online listings that do not comply with subsection (d). Upon receipt of a referral, if the Board determines that the listing does not substantially comply with subsection (d) and that the defects have not been cured, the Board shall inform the landlord in writing. The landlord shall be required to correct the violation within three business days after receiving the notice. If the landlord has not corrected the violation within three business days, the Board may impose a reasonable administrative penalty of up to $100 per day, not counting the three-day correction period, provided that in no event shall the total administrative penalty for a single listing exceed $1,000. The procedure for the imposition, enforcement, collection, and administrative review of the administrative penalty shall be governed by Administrative Code Chapter 100, “Procedures Governing the Imposition of Administrative Fines,” which is hereby incorporated in its entirety. Any administrative penalties collected under this subsection (e)(1) shall be deposited in the General Fund of the City and County of San Francisco to be used for enforcement of this Section 37.9F.
(2) The City Attorney may bring a civil action in San Francisco Superior Court against a party who has failed to comply with this Section 37.9F. A nonprofit organization with tax exempt status under 26 United States Code Section 501(c)(3) or 501(c)(4) and with a primary mission of protecting the rights of tenants in San Francisco may also bring such a civil action, provided that the organization shall first provide 30 days’ written notice of its intent to initiate civil proceedings by serving a draft complaint on the City Attorney’s Office and on any known address(es) of the affected tenant(s), and may not initiate civil proceedings until the end of this 30 day period. A party who violates this Section 37.9F may be liable for civil penalties of not more than two times the amount paid or received for use of the rental unit during the period of the unlawful activity, and each rental unit used in violation of this Section 37.9F shall constitute a separate violation. Any monetary award obtained in such a civil action shall be deposited in the General Fund of the City and County of San Francisco to be used for enforcement of this Section 37.9F. The court shall also award reasonable attorney’s fees and costs to the City Attorney or a nonprofit organization that is the prevailing party in such a civil action.
(3) The remedies available under this subsection (e) shall be in addition to any other existing remedies that may be available.
(Added by Ord. 78-20, File No. 191075, App. 5/22/2020, Eff. 6/22/2020)
(a) It shall be unlawful for a landlord to increase rent or rents in violation of the decision of an Administrative Law Judge or the decision of the Board on appeal pursuant to the hearing and appeal procedures set forth in Section 37.8 of this Chapter. It shall further be unlawful for a landlord to charge any rent which exceeds the limitations of this Chapter. Any person who increases rents in violation of such decisions or who charges excessive rents shall be guilty of a misdemeanor.
(b) It shall be unlawful for an landlord to refuse to rent or lease or otherwise deny to or withhold from any person any rental unit because the age of a prospective tenant would result in the tenant acquiring rights under this Chapter. Any person who refuses to rent in violation of this subsection shall, in addition to any other penalties provide by State or federal law, be guilty of a misdemeanor.
(c) It shall be unlawful for a landlord or for any person who willfully assists a landlord to recover possession of a rental unit unless, prior to recovery of possession of the unit the landlord satisfies all requirements for recovery of the unit under Section 37.9(a) or (b).
(d) In any criminal or civil proceeding based on a violation of Section 37.10A(c), the landlord’s failure to use a recovered unit for the Section 37.9(a) or (b) ground stated verbally or in writing to the tenant from whom the unit was recovered shall give rise to a presumption that the landlord did not have a good faith intention to recover the unit for the stated ground.
(e) If possession of a rental unit is recovered as the result of any written or verbal statement to the tenant that the landlord intends to recover the unit under one of the grounds enumerated in Section 37.9(a) or (b), the unit shall be subject to all restrictions set forth under this Chapter on units recovered for such stated purpose regardless of any agreement made between the landlord or the landlord’s agent and the tenant who vacated the recovered unit. Any unit vacated by a tenant within 120 days after receiving any written or verbal statement from the landlord stating that the landlord intends to recover the unit under Section 37.9(a) or (b), shall be rebuttably presumed to have been recovered by the landlord pursuant to the grounds identified in that written or verbal statement.
(f) It shall be unlawful for a landlord to knowingly fail to disclose in writing to the buyer, prior to entering into a contract for the sale of any property consisting of two or more residential units, the specific legal ground(s) for the termination of the tenancy of each residential unit to be delivered vacant at the close of escrow.
(g) It shall be unlawful for a landlord/owner, when offering a property for sale in the City and County of San Francisco that includes two or more residential units, to knowingly fail to disclose in writing to any prospective purchaser:
(1) The specific legal ground(s) for the termination of the tenancy of each residential unit to be delivered vacant at the close of escrow; and,
(2) Whether the unit was occupied by an elderly or disabled tenant at the time the tenancy was terminated. For purposes of this Section 37.10A(g), “elderly” means a tenant defined as elderly by Administrative Code Section 37.9(i)(1)(A), 37.9A(e)(1)(C), 37.9A(e)(2)(D), or 37.9A(e)(3)(C), or a tenant defined as “senior” by Subdivision Code Section 1359(d). For purposes of this Section 37.10A(g), “disabled” means a tenant defined as disabled by Administrative Code Section 37.9(i)(1)(B)(i), 37.9A(e)(1)(C), 37.9A(e)(2)(D), or 37.9A(e)(3)(C), or by Subdivision Code Section 1359(d).
Any disclosure required by this Subsection (g) that is made on a flier or other document describing the property which is made available to prospective purchasers at each open house and at any tour through the property will constitute compliance with the disclosure requirements of this Subsection (g).
(h) It shall be unlawful for any landlord, within five years after service of the notice to quit under Section 37.9(a)(8), to charge a rent for the unit that exceeds the maximum rent for the unit as provided in Section 37.9B(a), unless the notice of constraints on the unit has been rescinded. Each month or portion thereof that the landlord charges an excessive rent in violation of Section 37.9B(a) shall constitute a separate violation.
(i) It shall be unlawful for a landlord to endeavor to recover possession of a rental unit that is exempt from rent increase limitations under Section 37.3(d) or Section 37.3(g) by means of a rent increase that is imposed in bad faith with an intent to defraud, intimidate, or coerce the tenant into vacating the rental unit in circumvention of Section 37.9(a), 37.9A, 37.9B, or 37.9C. Evidence of bad faith may include but is not limited to the following: (1) the rent increase was substantially in excess of market rates for comparable units; (2) the rent increase was within six months after an attempt to recover possession of the unit; and (3) such other factors as a court or the Rent Board may deem relevant.
(j) Any person who violates Section 37.10A(a), (b), (c), (f), or (h) is guilty of a misdemeanor and shall be punished by a mandatory fine of $1,000, and in addition to such fine may be punished by imprisonment in the County Jail for a period of not more than six months. Each violation shall constitute a separate offense.
(Added by Ord. 20-84, App. 1/19/84; amended by Ord. 20-84, App. 10/2/98; Ord. 347-99, File No. 992197, App. 12/30/99; Ord. 57-02, File No. 011575, App. 5/3/2002; Proposition B, 6/6/2006; Ord. 160-17, File No. 170349, App. 7/27/2017, Eff. 8/26/2017; Ord. 5-19, File No. 180735, App. 1/25/2019, Eff. 2/25/2019; Ord. 296-19, File No. 191105, App. 12/20/2019, Eff. 1/20/2020)
Editor's Note:
Portions of this section have been adjudicated as (1) not enforceable through Rent Board-mandated reductions in rent and/or (2) entirely invalid. See the note at the conclusion of the section.
Portions of this section have been adjudicated as (1) not enforceable through Rent Board-mandated reductions in rent and/or (2) entirely invalid. See the note at the conclusion of the section.
(a) No landlord, and no agent, contractor, subcontractor or employee of the landlord, shall do any of the following, in bad faith or with ulterior motive or without honest intent:*
(1) Interrupt, terminate or fail to provide housing services required by contract or by State, County or local housing, health or safety laws;
(2) Fail to perform repairs and maintenance required by contract or by State, County or local housing, health or safety laws;
(3) Fail to exercise due diligence in completing repairs and maintenance once undertaken or fail to follow appropriate industry repair, containment or remediation protocols designed to minimize exposure to noise, dust, lead paint, mold, asbestos, or other building materials with potentially harmful health impacts;
(4) Abuse the landlord's right of access into a rental housing unit as that right is provided by law;*
(5) Influence or attempt to influence a tenant to vacate a rental housing unit through fraud, intimidation or coercion; for example and without limitation, by endeavoring to recover possession of a rental unit that is exempt from rent increase limitations under Section 37.3(d) or Section 37.3(g) by means of a rent increase that is imposed with an intent to defraud, intimidate, or coerce the tenant into vacating the rental unit in circumvention of Section 37.9(a), 37.9A, 37.9B, or 37.9C, in which case evidence of bad faith may include but is not limited to the following: (1) the rent increase was substantially in excess of market rates for comparable units; (2) the rent increase was within six months after an attempt to recover possession of the unit; and (3) such other factors as a court or the Rent Board may deem relevant.*
(6) Attempts to coerce the tenant to vacate with offer(s) of payments to vacate which are accompanied with threats or intimidation;*
(7) Continue to offer payments to vacate after tenant has notified the landlord in writing the they no longer wish to receive further offers of payments to vacate;*
(8) Threaten the tenant, by word or gesture, with physical harm;*
(9) Violate any law which prohibits discrimination based on actual or perceived race, gender, sexual preference, sexual orientation, ethnic background, nationality, place of birth, immigration or citizenship status, religion, age, parenthood, marriage, pregnancy, disability, AIDS or occupancy by a minor child. *
(10) Interfere with a tenants right to quiet use and enjoyment of a rental housing unit as that right is defined by California law;*
(11) Refuse to accept or acknowledge receipt of a tenant's lawful rent payment;*
(12) Refuse to cash a rent check for over 30 days;*
(13) Interfere with a tenant's right to privacy.*
(14) Request information that violates a tenant's right to privacy, including but not limited to residence or citizenship status or social security number.*
(15) Other repeated acts or omissions of such significance as to substantially interfere with or disturb the comfort, repose, peace or quiet of any person lawfully entitled to occupancy of such dwelling unit and that cause, are likely to cause, or are intended to cause any person lawfully entitled to occupancy of a dwelling unit to vacate such dwelling unit or to surrender or waive any rights in relation to such occupancy.*
(b) Nothing in this Section 37.10B shall be construed as to prevent the lawful eviction of a tenant by appropriate legal means.
(c) Enforcement and penalties.
(2) Criminal Penalty. Any person who is convicted of violating this Section shall be guilty of a misdemeanor and upon conviction shall be punished by a fine of not greater than one thousand dollars or by imprisonment in the County Jail for not more than six months, or by both such fine and imprisonment.
(3) Civil Action. Any person, including the City, may enforce the provisions of this Section by means of a civil action. The burden of proof in such cases shall be preponderance of the evidence. A violation of this Chapter may be asserted as an affirmative defense in an unlawful detainer action.
(4) Injunction. Any person who commits an act, proposes to commit an act, or engages in any pattern and practice which violates this Section 37.10B may be enjoined therefrom by any court of competent jurisdiction. An action for injunction under this subsection may be brought by any aggrieved person, by the City Attorney, or by any person or entity who will fairly and adequately represent the interest of the protected class.
(5) Penalties and Other Monetary Awards. Any person who violates or aids or incites another person to violate the provisions of this Section is liable for each and every such offense for money damages of not less than three times actual damages suffered by an aggrieved party (including damages for mental or emotional distress), or for statutory damages in the sum of one thousand dollars, whichever is greater, and whatever other relief the court deems appropriate. In the case of an award of damages for mental or emotional distress, said award shall only be trebled if the trier of fact finds that the landlord acted in knowing violation of or in reckless disregard of Section 37.9, 37.10A, or 37.10B herein. In addition, a prevailing plaintiff shall be entitled to reasonable attorney's fees and costs pursuant to order of the court. The trier of fact may also award punitive damages to any plaintiff, including the City, in a proper case as defined by Civil Code Section 3294. The remedies available under this Section shall be in addition to any other existing remedies which may be available to the tenant or the City.
(6) Defending Eviction Lawsuits. In any action to recover possession of a rental unit subject to the Chapter, unless the sole basis of the notice to quit is Section 37.9(b), the court shall award the tenant reasonable attorney fees and costs incurred in defending the action upon a finding that the tenant is the prevailing party under Code of Civil Procedure Section 1032(a)(4).*
(d) Severability. If any provision or clause of this Section 37.10B, or Section 37.2(g), or the application thereof to any person or circumstance is held to be unconstitutional or to be otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other provisions of this Section 37.10B or Section 37.2(g) and all clauses of these Sections are declared to be severable.
The Court of Appeal has held the following regarding portions of this Sec. 37.10B:
• The Rent Board is precluded from making rent reductions under divisions (a)(4) through (a)(15);
• Division (a)(7) is invalid in its entirety;
• Division (c)(6) is invalid in its entirety.
See Larson v. City and County of San Francisco, 192 Cal. App. 4th 1263 (Cal. App. 1st Dist. 2011).
In addition, a final decision of the San Francisco Superior Court held that the phrase "with ulterior motive or without honest intent" (in division (a)) cannot be enforced. See Order Dated May 29, 2009, Larson v. City and County of San Francisco, Case No. 509-083.
(a) Prohibition on Sale. It shall be unlawful to sell, license, or otherwise provide to San Francisco landlords any algorithmic device that sets, recommends, or advises on rents or occupancy levels that may be achieved for residential dwelling units in San Francisco.
(b) Prohibition on Use. It shall be unlawful for a landlord to use an algorithmic device described in subdivision (a) when setting rents or occupancy levels for residential dwelling units in San Francisco. Each separate month that a violation exists or continues, and each separate residential dwelling unit for which the landlord used the algorithmic device, shall constitute a separate and distinct violation.
(c) Definitions.
(1) “Algorithmic device” means a device commonly known as revenue management software, that uses one or more algorithms to perform calculations of non-public competitor data concerning local or statewide rents or occupancy levels, for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for that unit. “Algorithmic device” includes a product that incorporates an algorithmic device, but does not include (A) a report that publishes existing rental data in an aggregated manner but does not recommend rents or occupancy levels for future leases; or (B) a product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, the federal government, or other political subdivision.
(2) “Non-public competitor data” means information that is not available to the general public, including information about actual rent prices, occupancy rates, lease start and end dates, and similar data, regardless whether the information is attributable to a specific competitor or anonymized, and regardless whether it is derived from or otherwise provided by another person that competes in the same market or a related market.
(d) Remedies.
(1) The City Attorney may file a civil action for violations of subsections (a) and/or (b), for damages, injunctive relief, restitution/return of illegal profits, and/or civil penalties of up to $1,000 per violation. The court shall award reasonable attorney’s fees and costs to the City Attorney if the City Attorney is the prevailing party in such a civil action.
(2) A tenant may file a civil action for violations of subsection (b), for injunctive relief, money damages, and/or civil penalties of up to $1,000 per violation. The court shall award reasonable attorney’s fees and costs to the tenant if the tenant is the prevailing party in such a civil action. A lease provision that limits a prevailing tenant from obtaining attorneys’ fees shall not be enforceable against a tenant’s claim for attorneys’ fees that arises under this subsection (d)(2).
(e) Undertaking for the General Welfare. In enacting and implementing this Section 37.10C, the City is assuming an undertaking only to promote the general welfare. It is not assuming, nor is it imposing on its officers and employees, an obligation for breach of which it is liable in money damages to any person who claims that such breach proximately caused injury.
(f) Severability. If any subsection, sentence, clause, phrase, or word of this Section 37.10C, or any application thereof to any person or circumstance, is held to be invalid or unconstitutional by a decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions or applications of the Section. The Board of Supervisors hereby declares that it would have passed this Section and each and every subsection, sentence, clause, phrase, and word not declared invalid or unconstitutional without regard to whether any other portion of this Section or application thereof would be subsequently declared invalid or unconstitutional.
(Added by Ord. 224-24, File No. 240766, App. 9/13/2024, Eff. 10/14/2024)
(a) Whenever a landlord charges a tenant a rent which exceeds the limitations set forth in this Chapter, retaliates against a tenant for the exercise of any rights under this Chapter, or attempts to prevent a tenant from acquiring any rights under this Chapter 37, the tenant may institute a civil proceeding for injunctive relief and/or money damages, and in cases where the landlord has charged an excessive rent in violation of Section 37.9B(a), injunctive relief and/or money damages of not less than three times the amount of excess rent collected; provided, however, that any monetary award for rent overpayments resulting from a rent increase which is null and void pursuant to Section 37.3(b)(5) shall be limited to a refund of rent overpayments made during the three-year period preceding the month of filing of the action, plus the period between the month of filing and the date of the court's order. In any case, calculation of rent overpayments and re-setting of the lawful base rent shall be based on a determination of the validity of all rent increases imposed since April 1, 1982, in accordance with Sections 37.3(b)(5) and 37.3(a)(2) above.
(b) Any organization with tax exempt status under 26 United States Code Section 501(c)(3) or 501(c)(4) that has a primary mission of protecting the rights of tenants in San Francisco may bring a civil action for injunctive relief and/or damages against a landlord who has wrongfully endeavored to recover, or has recovered, possession of a rental unit in violation of Section 37.9(a)(8), or who has collected excess rent in violation of Section 37.9B(a). Such action shall be filed within three years after an affected tenant knew, or through the exercise of reasonable diligence should have known, of the facts constituting the violation. However, before bringing any action under this Section 37.11A(b), the organization shall first provide 30 days’ written notice of its intent to initiate civil proceedings by serving a draft complaint on the City Attorney’s Office and on any known address(es) of the affected tenant(s), and may bring the action under this Section 37.11A(b) only if neither the City Attorney’s Office nor the tenant(s) have initiated civil proceedings by the end of the 30 day period. Any monetary award for rent overpayments shall be for two times any excess amounts of rent charged, as well as any other sums reasonably expended to investigate and prosecute the claim, and shall be limited to the three-year period preceding the month of filing of the action, plus the period between the month of filing and the date of the court’s order.
(Added by Ord. 20-84, App. 1/19/84; amended by Ord. 162-93, App. 5/28/93; Ord. 363-93, App. 11/18/93; Ord. 293-98, App. 10/2/98; Ord. 160-17, File No. 170349, App. 7/27/2017, Eff. 8/26/2017)
This Section is enacted in order to assure the smooth transition to coverage under this Chapter of owner-occupied buildings containing four units or less, as a result of the repeal of the exemption for owner-occupied units. The provisions of this Section apply only to such units. The units are referred to as "newly covered units" in this Section. The term "effective date of coverage" as used herein means the effective date of the repeal of the owner occupancy exemption.
(a) The initial base rent for all newly covered units shall be the rent that was in effect for the rental unit on May 1, 1994. If no rent was in effect for the newly covered unit on May 1, 1994, the initial base rent shall be the first rent in effect after that date.
(b) All rents paid after May 1, 1994, in excess of the initial base rent under Section 37.12(a), shall be refunded to the tenant no later than December 15, 1994. If the landlord fails to refund the excess rent by December 15, 1994, the tenant may deduct the amount of the refund from future rent payments, or bring a civil action under Section 37.11A, or exercise any other existing remedies. All tenants residing in newly covered units are entitled to this refund, even if the tenant vacated before the effective date of coverage of the newly covered units.
(c) As soon as practical after the effective date of coverage, the Board shall mail to the landlords of record of newly covered units a notice advising of the repeal of the exemption for owner-occupied buildings containing four units or less. The notice shall include information deemed appropriate by the Board to explain the requirements and effects of the change in the law. It shall be the responsibility of landlords to distribute a copy of said notice to all newly covered units within 15 days of the date the Board mails such notice to landlords. Distribution shall be by mail properly addressed to a tenant of the newly covered unit, or by personal delivery to a tenant of the newly covered unit, or by placing said notice under the door of the primary entrance to the newly covered unit.
(Added by Proposition I, 11/8/94; amended by Ord. 88-95, App. 4/7/95)
(a) A landlord shall provide a minimum of one key or key-set per rental unit for each adult occupant, without charge.
(b) Additional Keys/Key-Sets. A tenant may request keys/key-sets in addition to those provided pursuant to Section 37.13(a), for his or her convenience. Requested additional keys/key-sets must be provided within fourteen (14) days of the tenant's written request stating the reason(s), unless the landlord timely denies the request in writing as provided in Section 37.13(b)(2). Examples of tenant reasons for receiving additional keys/key-sets include, but are not limited to: admitting a service provider, delivery person, houseguest, or relative. All keys are issued for the duration of a tenancy to be returned upon vacating the unit.
(1) When providing requested additional keys/key-sets to a tenant, the landlord may charge only for the documented cost of replicating the additional keys/key-sets, which cost shall be paid by the tenant upon delivery of the requested additional keys/key-sets. Additional keys/key-sets shall be provided without requiring any other cost, fees, deposits, or terms or conditions of any kind whatsoever.
(2) The landlord may deny the request for additional keys/key-sets only for good reason, such as unlawful occupancy in the tenant's unit or the tenant's pattern of lease violation. Any landlord denial must be provided to the tenant in writing, stating specific reasons for the denial, within fourteen (14) days of the written request.
(3) A tenant may file a petition with the Board to decide a disputed request for additional keys or key-sets which may constitute a substantial decrease in housing services, and/or to decide a disagreement concerning landlord charges or deposits (Section 37.13(b)(1)). A disputed request includes a failure to respond within fourteen days (Section 37.13(b)), a disagreement concerning landlord terms and conditions (Section 37.13(b)(1)), and a denial (Section 37.13(b)(2)).
(A) The Board through its Administrative Law Judges shall conduct a hearing in order to decide the petition.
(B) The decision of the Administrative Law Judge shall be final unless the Board vacates the decision on appeal.
(C) Either party may file an appeal of the Administrative Law Judge's decision with the Board. Such appeals are governed by Section 37.8(f).
(4) Unreasonable denial of additional keys/key-sets requested under this Section 37.13(b), or failure to respond to the tenant's written request within fourteen days by providing either the keys/key-sets or a written denial as provided by Sections 37.13(b) and (b)(2), or imposition of terms or conditions prohibited by Section 37.13(b)(1), constitutes a substantial decrease in housing services for which the Administrative Law Judge may order a corresponding reduction in rent.
(Added by Ord. 34-04, File No. 031879, App. 3/19/2004; amended by Ord. 66-05, File No. 041688, App. 4/15/2005)
(Former Sec. 37.13 added by by Ord. 62-02, File No. 020343, App. 5/3/2002; currently codified as Sec. 37.14A)
(a) Upon receipt of a petition from a current or former occupant of a residential hotel alleging violation of the provisions of Administrative Code Chapter 41D, including allegation of violation of the Uniform Visitor Policy or any Supplemental Visitor Policy, the Board through its Administrative Law Judges shall conduct a hearing in order to decide the petition. This decision may require a determination as to whether a residential hotel's policies and procedures are consistent with the Uniform Visitor Policy and any approved Supplemental Policies, and in compliance with Administrative Code Chapter 41D.
(b) Upon an Administrative Law Judge's findings of fact and decision that the operator, employee or agent of a residential hotel has violated the Uniform Visitor Policy or any approved Supplemental Visitor Policy or any other provision of Chapter 41D, the Administrative Law Judge may conclude that the occupant has suffered a diminution in housing services and order a corresponding reduction in rent.
(c) The decision of the Administrative Law Judge shall be final unless the Board vacates the decision on appeal.
(d) Either party may file an appeal of the Administrative Law Judge's decision with the Board. Such appeals are governed by Section 37.8(f).
(Added as Sec. 37.13 by Ord. 62-02, File No. 020343, App. 5/3/2002; redesignated as Sec. 37.14 by Ord. 34-04, File No. 031879, App. 3/19/2004; redesignated as Sec. 37.14A by Ord. 73-06, File No. 060188, App. 4/20/2006)
(a) Upon receipt of a petition from a current or former permanent resident of a residential hotel alleging violation of the provisions of Administrative Code Chapter 41E, the Board through its Administrative Law Judges shall conduct a hearing in order to decide the petition. This decision may require a determination as to whether the petitioner is permanent resident.
(b) Upon an Administrative Law Judge's findings of fact and decision that the operator of a residential hotel has violated the requirement to install a United States Postal Service-approved mail receptacle for receipt of mail delivered by the United States Postal Service, the Administrative Law Judge may conclude that the resident has suffered a diminution in housing services and order a corresponding reduction in rent.
(c) The decision of the Administrative Law Judge shall be final unless the Board vacates the decision on appeal.
(d) Either party may file an appeal of the Administrative Law Judge's decision with the Board. Such appeals are governed by Section 37.8(f).
(Added by Ord. 73-06, File No. 060188, App. 4/20/2006)
(a) Owners of residential dwelling units subject to this Chapter 37 shall be required to report certain information about their units to the Rent Board, as set forth in subsections (b) and (c). In the case of a unit owned by multiple owners, reporting by a single owner shall suffice. Owners shall report the information using a form prepared by the Rent Board. The Rent Board may, in addition to or in lieu of a paper form, develop an electronic form or a secure internet website with an interface for owners to submit the required information. The Rent Board may develop procedures for tenants to also report information about their units, but in that event reporting by tenants shall be optional rather than required.
(b) Owners shall report under penalty of perjury the mailing address of each unit and whether the unit is Owner-Occupied. The term “Owner-Occupied” shall refer to a unit which is occupied by an owner of record on either a full-time or part-time basis and is not rented at any time, as set forth in Administrative Code Section 37A.1(f). Depending on whether the unit is Owner-Occupied, the following reporting requirements shall apply:
(1) If the unit is Owner-Occupied, then the owner shall not be required to report any further information about the unit under this subsection (b).
(2) If the unit is not Owner-Occupied, then the owner shall be required to report under penalty of perjury the following additional information about the unit: (A) the name and business contact information (address, phone number, email address) of the owner(s), or of the property manager, if any, designated by the owner(s) to address habitability issues; (B) the business registration number for the unit, if any; (C) the approximate square footage to the best of the owner’s or manager’s knowledge,,1
and number of bedrooms and bathrooms in the unit; (D) whether the unit is vacant or occupied, and the date the vacancy or occupancy commenced; (E) the start and end dates of any other vacancies or occupancies that have occurred during the previous 12 months; (F) for tenant-occupied units, the base rent reported in $250 increments, and whether the base rent includes specified utilities (water/sewer, refuse/recycling, natural gas, electricity, etc.); and (G) any other information that the Rent Board deems appropriate following a noticed public meeting in order to effectuate the purposes of this Chapter 37.
(c) For units (other than condominium units) in buildings with 10 units or more, the information described in subsection (b) shall be reported to the Rent Board by July 1, 2022, and updated by March 1, 2023 and annually by March 1 of each successive year. For condominium units and units in buildings with fewer than 10 units, the information shall be reported commencing March 1, 2023 and updated annually by March 1 of each successive year. Unit information shall also be updated within 30 days of any change in the name or business contact information of the owner or designated property manager.
(d) The Rent Board shall use the information it receives under this Section 37.15 to create a housing inventory that may be used for purposes of inspecting and investigating the level of housing services being provided to tenants, investigating and analyzing rents and vacancies, monitoring compliance with this Chapter 37, generating reports and surveys, and providing assistance to landlords and tenants and other City departments as needed. The Rent Board shall not use the information to operate a rental registry within the meaning of California Civil Code Sections 1947.7 – 1947.8.
(e) If a landlord has substantially complied with the obligation to report information about a rental unit as required under this Section 37.15, the landlord shall receive a license to impose rent increases on tenants in that unit under Sections 37.3(a)(1)-(2). If the landlord has not substantially complied with the reporting obligation, then the license to impose rent increases shall be temporarily suspended during the period of the landlord’s noncompliance. Upon receipt of the required information from the landlord, the suspension shall be terminated, and the license to impose rent increases shall be restored prospectively, but a tenant shall not be obligated to pay the increased rent for months during the period of suspension.
(Added by Ord. 265-20, File No. 201262, App. 12/18/2020, Eff. 1/18/2021, Oper. 7/1/2022)
(Former Sec. 37.15 originally Sec. 37.14; amended by Ord. 20-84, App. 1/19/84; Proposition I, 11/8/94; Ord. 62-02, File No. 020343, App. 5/3/2002; renumbered as Sec. 37.15 by Ord. 34-04, File No. 031879, App. 3/19/2004; renumbered as Sec. 37.16 by Ord. 265-20, File No. 201262, App. 12/18/2020, Eff. 1/18/2021, Oper. 7/1/2022)
CODIFICATION NOTE
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