Are eviction moratoriums an "unconstitutional physical taking" of property? This question is being duked out in federal court.

The Oakland and Alameda County Eviction Moratoriums are being challenged in the Northern District of California Federal Court in Williams et al v. Alameda County et al. There was a recent hearing on Plaintiff's Motion for Summary Judgment which the Judge took under submission and is expected to issue a decision "soon." See: Landlords argue in court to end Oakland and Alameda County eviction moratoriums, a story published in the Oaklandside on Sept.30, 2022.

How Do I Determine if My Building is Covered by AB 1482 or Rent Control?

The "techies" have gotten together with ACCE and other tenant's rights organizations to form tenantprotections.org. They have created a slick tool to help tenants learn if they are covered by the Tenant Protection Act of 2019 (otherwise known as AB 1482) or rent control.

See: https://tenantprotections.org/

By answering several questions, the tool will either answer your question about coverage under AB 1482 OR whether you may be covered by rent control and point you to tenants' rights organizations to help provide further guidance.

As it pertains to both AB 1482 and rent control, the year the building that you live in was built is one of the establishing factors. To discover when the building was built, you can search for the buidling address and companies like Zillow or Trulia may have that information. Or, contact the building records division in your city to establish when the building was issued a "certificate of occupancy." This certificate is issued by building inspection and certifies that the building is ready for occupany. If a certificate of occupancy was not issued, ask if the building received a "final permit" and when.

Tenantprotections.org is a collaborative project between various California non-profits, and volunteers including: Alliance of Californians for Community Empowerment (ACCE), Code for San Francisco / Code For America, and TechEquity Collaborative.

Learn All About It - Oakland's New Rent Registry Program

Atttend the Oakland Rent Registration Workshop to better understand these new requirements for your landlord. Once the registry is established, it would be prudent for tenants to check the information submitted by your landlord to ensure that 1) your unit is registered, and 2) that the informaiton is correct.

The first workshop is on Oct. 19, 2022 via Zoom and begins at 5:30 p.m.

See: https://www.oaklandca.gov/resources/rent-registration-in-oakland-information-and-faqs

Just Who Owns My Rental Property? The San Francisco Chronicle Introduces a New Tool to Help Answer that Question.

Discovering who -- or what enttity - owns your rental property can be challenging. The San Francisco Chronicle developed this helpful tool to assist you to discover the property owner. 

This map reveals who owns every property in the S.F. Bay Area

Data is current through the 2020-2021 fiscal year, thus, if there was a property sale since then, the information may not be current.

Oakland's Rent Board Holds a Tenant's Rights Workshop on Sept. 14, 2022 - Come one, come all!

 

WHY CAN'T WE AFFORD TO LIVE IN OUR CITIES?

A documentary film by an award-winning Swedish filmmaker, Fredrik Gertten explores why renters across the globe are being pushed out of rental housing through corporate investment and unaffordable rent in a film called "PUSH." For a special viewing, ACCE and the Oakland Tenants Union are sponsoring a showing at the Grand Lake Theater on Sept. 20, 2022 at 6:30 p.m.

Oakland Voters have an Opportunity to Expand Just Cause Protections - Vote in the November 2022 Election for Measure V!

Attention all Oakland Voters:

Measure V will be on the Ballot this November 2022 proposing to expand Oakland's Just Cause Eviction Ordinance as follows:

"Shall the Measure amending the Just Cause for Eviction Ordinance to: 

(1) prohibit no-fault evictions of children and educators during the school year; 

(2) extend eviction protections to tenants in recreational vehicles (RVs), tiny homes on wheels, and newly constructed units (except during the first 10 years after issuance of the certificate of occupancy); 

(3) remove failure to sign a new lease as grounds for eviction; and 

(4) make other clarifying amendments, be adopted?"

For more details, check the City Council agenda and minutes for "This Year" and search for "Just Cause." 

Care4Community which is associated with Councilperson Carroll Fife, which be holding a virtual assembly about Measure V and two other ballot measures related to housing issues.

The Theme of the Day: Tenant Power

Yesterday, an assembly meeting occurred in Hayward which was sponsored by the Regional Tenant Organization (RTO), an affiliation of thirty-one tenant associations spanning the Bay area. Tenant organizers from SonomaCounty, San Francisco, San Jose, East Palo Alto, Alameda, Oakland, and many other communities attended. A representative from the Eden Community Land Trust weighed in; the ECLT is loosely affiliated with the Oakland Community Land Trust and is seeking to acquire and develop affordable tenant housing in the unincorporated areas of Alameda County and the City of Hayward. In turn, the ECLT, OCLT, and Bay Area Community Land Trust are affiliated with the California Community Land Trust Network.

The overall theme of the assembly centered around how tenants in specific rental communities have organized to counter significant rent increases and improve living conditions, successful approaches, and how to keep the tenant momentum going and growing. The pandemic, job loss and financial hardship seemed to help fuel the growth of these tenant organizations as well as state-wide organizations such as ACCE and Tenants Together.

There's no question that the tenant movement is on a roll and making strides locally and state wide.

U.S. Supreme Court Refuses To Hear Challenge To Oakland’s Tenant Relocation Assistance Law

Below is an excerpt of a City Attorney - Oakland newsletter posted in July 2022:

"On June 6, the United States Supreme Court refused to hear a challenge to Oakland’s Uniform Residential Tenant Relocation Ordinance. The Court’s denial of the petition requesting review means that Oakland’s victories in the lower courts will stand—affirming a critical component of Oakland’s comprehensive tenant protections..."

"This case, Ballinger v. City of Oakland, began in 2018 when local landlords evicted their tenants in order to move back in, and paid the tenants the relocation assistance required under Oakland’s local laws. Calling the relocation payment “ransom,” the plaintiffs challenged Oakland’s ordinance, claiming it was unconstitutional on several grounds, including that the City was “taking” their property and that the payment was an unlawful “seizure” of their money."

"In 2019, the federal District Court for the Northern District of California agreed with the City that every one of the plaintiffs’ claims should be dismissed, as no law supports their theories. The Ninth Circuit Court of Appeals agreed, upholding the dismissals earlier this year in an opinion confirming that Oakland’s ordinance is constitutional, and is consistent with many other types of lawful government regulation, from requiring corporations to pay to clean up hazardous waste to monetary assessments on tobacco companies."

"This challenge to Oakland’s tenant protections is not an isolated case; it is part of a growing national campaign against progressive policy and policymakers who seek to balance the scales by providing protections for historically and currently marginalized communities. The plaintiffs in this matter were represented by the Pacific Legal Foundation (PLF), which is funded and guided by major corporate interests such as ExxonMobil and the tobacco industry, and by conservative foundations financed by right-wing billionaires such as the Koch brothers and the Scaife family. PLF has been involved in innumerable challenges to governments’ ability to protect vulnerable tenants from eviction and discrimination, raise money via taxation, and much more."

"This is an important and just victory for the City of Oakland—and for tenants’ rights. By refusing to consider overturning the Ninth Circuit Court of Appeals, the Supreme Court affirmed what we have said since this litigation began: the City’s Uniform Residential Tenant Relocation Ordinance is a lawful—and vital—protection for Oakland tenants against no-fault eviction..."

AB 1482 Applies to Many Rental Units Not Covered by Rent Control BUT Not All Rental Housing

See NBC Bay Area news article below:

'Loophole' in 10% Rent Cap Law; Some Landlords Hike Rent 30%

Inviting Tech Industry Workers to Create Social Change: It's called TechEquity

A non-profit organization called TechEquity Collaborative which was founded by Gina Tomlinson who serves as a Commissioner for the City of Oakland Privacy Advisory Commission, has a "mission is to mobilize tech workers and companies to advance structural change that addresses economic inequity at its roots, focusing on housing and workforce & labor.

TechEquity has an interesting perspective on tenant screening algorithms and companies. See article below:

"Tech, Bias, and Housing Initiative: Tenant Screening"

Riding Out the Recession Tide

After spending nearly two years in isolation due to the Covid-19 pandemic, we are now weathering high food prices, utility costs, and gas prices. And, many landlords, also squeezed by higher operating and water costs, are raising rent. If you are like most people, these escalating prices are squeezing your budget. So, here are a few ideas to help you ride out the recession tide:

Utility Costs:

OhmConnect is a San Francisco based company that pays you to use your smart-plugs at specific times.

Smart-plugs and smart-thermostats can be controlled through an app. You can schedule when to turn on your electrical outlets and when to turn them off and this control can also be done remotely by OhmConnect at specific times during which you earn “watts.” Watts earned can be exchanged for rewards or a gift card redeemable through Amazon.

PG&E also has energy saving tips and programs including as simple a suggestion as using LED bulbs. In addition, PG&E has their own Power Savers Rewards program.

Medical Tests:

You can order many different blood tests through LifeExtension who works with Lab Corp, a leading medical lab. Such tests include Complete Blood Count (CBD) tests, vitamin D tests, female and male hormone panels, and many more. Lab tests are reliable, competitively priced, and results can be delivered by email and provided to your doctor.

Every Woman Counts

Is a free state-sponsored program offered to low-income women aged 40+ for breast cancer and cervical screening. 

Dental Services:

The University of Pacific in San Francisco offers discounted dental services conducted by students under the supervision of their professors. No-interest financing may also be available. Also check out the UCSF Dental School for similar services.

Some dentists also offer discounted dental cleanings + xrays through GroupOn.

Prescription Eye Exams and Glasses:

UC-Berkeley offers low-cost optometry exams that are initially conducted by optometry students and reviewed by their professors who are licensed optometrists. They also have a large array of frames and prescription lenses that can be ordered via their on-site store.

CostCo also offers on-site eye exams; discounted prescription glasses and frames can be ordered on-site.

Subscriptions:

Subscriptions to streaming movie/TV channels may be another area to cut costs. Quicken, Mint, or PayPal may help you identify, track, and reduce those expenses.

Pet Parents:

During the pandemic, many people found new pet companions. Keeping a pet healthy and fed is a commitment and here are a few resources to help keep costs down.

Got a new kitten or puppy? You can have your pet neutered or spayed by the Animal Fix Clinic in Richmond or The Pet Advocate in Tracy. The Pet Advocate also offers dental services for pets.

Pet Vet offers low cost vaccination clinics for your pets and accepts clients on a first/come first/serve basis. Plus, you can buy prescription pet food without a prescription and at a discount. Pet vet has clinics in Oakland and in El Cerrito.

VipPet Care also offers pet clinics in multiple Bay areas also on a first come/first serve basis. You can get a general wellness exam, vaccinations and low costs blood and fecal tests for your pets.

Some veterinarians like Banfield Pet and VCAHospital may offer free or discounted examinations to new clients or to pets adopted via pet shelters. Be sure to call the veterinary hospital to verify what offers might be relevant to you and your pet.

Looking for lower cost prescriptions for your pets? Chewy and WalMart pet pharmacies are good options. Ask your vet for permission to fill your pet’s prescriptions at these on-line pharmacies.

Pet Club in Oakland and other Bay area locations has an entire warehouse of food, toys, bedding, and pet accessories at competitive prices and often has sales.

Vet emergency? It was very difficult to find emergency service during the pandemic but there is a clinic in San Ramon called VEG which has top-notch veterinarians, on-site lab testing, and is up-front about their prices and options. Any vet emergency clinic can point you to a list of emergency veterinarians to try.

Most emergency veterinarians offer CareCredit and either 6-month or 12-month no-interest finance options but, be forewarned, if the promotional financing isn’t paid on time, the 30% or better interest rate will be applied to the initial balance.

Tenant-friendly Software to Answer a UD Complaint

A landlord attorney posted an article from CalMatters related to software created by tenant representatives and tenant-oriented non-profits concerning software designed to timely answer a UD complaint. If you are served with an "eviction complaint" (a Summons and Unlawful Detainer complaint), this might be software to explore. The software is currently designed for English and Spanish speakers and is meant to buy the tenant time until they can find attorney representation and file an amended answer to the UD Complaint.

Got an eviction notice? This California website will help you file a response.

See Tenant Power Toolkit. Click here.

Also see Nolo Press California Tenants Rights and California Landlord's Law Book: Evictions.

Tenants + ACCE + Oakland Community Land Trust = the Power to Persuade Owners to Sell

Affordable Housing Victory: How a Years-Long Strike Helped Residents Get a Property in Oakland reported by NBC Bay Area news. 

For more about Oakland Community Land Trust and their equity-based model, click here.

Also see article featured on the ACCE web site related to the story above.

Capital, Indeed. Another rent increase that may be passed on to You!

Tenants have a legal duty to keep the rental property clean and in good condition.

Tenants also have a legal duty to report repair issues to their landlord or property manager. If a pipe bursts or the heater fails to work, for example, the tenant should report this issue to their landlord. If the report is made verbally, tenants should also follow the request in writing (an email will do).

Renter’s insurance is a good idea, and may actually be requirement of a lease agreement. And some insurance companies will include an add-on policy to cover damages caused by water damage due to burst pipes or sewar backups which may be helpful in an old building.

But, what if the landlord decides to replace an outdated furnace with a new, energy efficient furnace? Or, to paint the building exterior or hire a structural engineer to upgrade the building balconies? In certain rent controlled jurisdictions like San Francisco, Berkeley, and Oakland, the landlord can pass the cost of these improvements on to the tenant in the form of a rent increase. If the landlord had to borrow money to pay for these improvements, the interest cost of the loan may be added to the total cost of improvements and amortized over a period of years.

The San Francisco rent board describes a capital improvement as, “. . .one that materially adds to the value of the property, appreciably prolongs its useful life, or adapts it to new uses, and which may be amortized over the useful life of the improvement of the building.”

Before passing certain capital improvement costs onto the tenant, the landlord must petition the local rent board, serve a copy of the petition on each of the tenants, and wait for a hearing in which tenants can attend and object. Supporting documentation to the petition may include labor and material costs, costs of engineering or architectural consulting, loan costs, and other relevant costs. After the hearing, the rent board hearing officer considers all documentation and testimony and issues an official decision to the landlord and the tenants. If the petition is approved, a specific cost – in the form or a “temporary” rent increase – can be passed along to each tenant for a period of months or years.

For example, in Oakland, 70% of the costs to paint the building exterior can be passed along to the tenants as a rent increase for 60 months or 5 years, after which the landlord or his agent should notify affected tenants that the rent increase related to this capital improvement is satisfied and the rent should decrease by the amount approved by the hearing officer.

In Oakland, capital improvements must “benefit the tenant,” however, what benefits the tenant is arguable. If the exterior paint of a building is in good condition, does applying a new color benefit the tenant or increase the property value for the landlord?

Each jurisdiction has their own requirements; there doesn’t seem to be a “standard” approach relating to capital improvements and the rent increase that the rent board may allow the landlord to pass along to their tenants or for how long.

It is important for the tenant to keep good records concerning the landlord’s petition, the hearing decision, and the Notice of Rent Increase related to these capital improvements and to create a calendar reminder about when this “temporary” increase should be suspended. The landlord or the landlord’s agent may not be as diligent at suspending this rent increase as they are at requiring it.

Reg. 1267 - Capital Improvements in Berkeley

Oakland's Capital Improvement Calculator

Alameda County Supervisors Meet This Morning to Discuss the County Eviction Moratorium

Today, Tuesday, July 19, the Alameda County supervisors will be discussing whether to weaken or end the County Eviction Moratorium, Agenda Item 30.1.

The meeting starts at 10:30 am, but the Supervisors probably will not begin to discuss the County Eviction Moratorium until after 10:45 a.m. 

To call into the meeting, use this zoom link :https://us06web.zoom.us/j/98271491041 and click 'raise your hand' when they call agenda item 30.1

You can also call in at 1-669-900-6833, Webinar ID 982 7149 1041, and dial *9 to raise your hand to speak when they call agenda item 30.1.

ACCE and the Oakland Tenants Union (OTU) asks tenants to please attend the meeting and make public comment.

NOTE: Agenda Item 30.1 which was to "Place the eviction moratorium ordinance on a future agenda for review and possible modification" was voted against -- the Alameda County Eviction Moratorium is still effective.

The Best Defense is a Good Offense

 A tenant was served a Notice to Pay Rent or to Quit for non-payment of rent “plus late fees.” While the Notice was defective because it included “late fees,” the Landlord could have separately served a “Notice to Cure or to Quit” for violation of a lease clause that related to late fees. If the issue of non-payment of rent + late fees escalated to an unlawful detainer proceeding (e.g., an eviction), the tenants attorney could challenge the Notice to Pay Rent or to Quit as being defective.

Moreover, how much “rent” and late fees were included in the Notice was not disclosed; only a total dollar figure owed was stated. A Notice to Pay Rent or to Quit can only be for the most recent 12-months of non-payment of rent -  the time period for which rent was owed was also not recorded. 

 But the question remained – “How much rent and late fees did the Notice include?”

 To answer that question, and to effectively challenge a Notice in court, the tenant should have a record of rent payments even when landlord-tenant relations are good. Sometimes the landlord-tenant relationship can go “south” and a tenant ledger can be helpful. The ledger can be a simple, handwritten record of payments made to the landlord, with the date and check number recorded. If rent payments are made by mail, then it is also a good idea to send rent payments with delivery tracking and to keep a copy of the postal receipt and the delivery tracking number.[1] If payments are made electronically, then bank statements will record when and how much each rent payment was deducted from the tenant’s bank account. In addition to the ledger, a copy of the voided check or the bank statement for electronic payments should be kept with the ledger. If things do go awry or if there are questions about a “short rent” payment, the tenant can produce the evidence to their attorney.

Landlords or their property managers usually also keep a ledger for each tenant of any payments made or incurred such as rent, late fees, utilities, rent registration city fees, etc. And this ledger may be submitted as evidence in a court proceeding along with the lease agreement and the Notice.

Tenants should also keep the original or a scanned copy of any and all Notices and letters received by the landlord or their property manager as well as all emails and texts. All written communications can be considered evidence for or against the tenant in a court proceeding whether the proceeding relates to issues with rent or security deposits or any other issue that may be hammered out in court.

 Sample Rent Ledger 

Date	Check No.	Rent Owed	Late Fees	Rent Paid	Balance
5/1/22	403	$1555.00	$0	$1555.00	$0.0
6/1/22	410	$1555.00	$0	$1555.00	$0.0
7/1/22	450	$1555.00	$55.00	$1000.00	$610.00

 [1] https://www.jdsupra.com/legalnews/when-the-check-is-in-the-mail-31240/

No Person is Ellised unto Themselves

In late 2018, tenants of a three-story, 13-unit building in Berkeley received a buyout offer to exchange their tenancy for cash. The building was covered by Berkeley's rent control and buyout ordinance. Some of the tenants accepted the buy-out offer and moved but there were a few “hold-outs” in 6-units.

 In April 2019, existing tenants received a Notice to Terminate Tenancy under the Ellis Act; the Owner alleged that they were going to remove the building from the rental market. Some of the tenants were “elders” or disabled and had lived in the building for many years; under Berkeley’s ordinance, they had a one-year notice period but the other tenants were given 120-days to relocate. Building renovations began. Balconies were dismantled, windows in vacant units were broken and left open to the elements, and some empty units were deconstructed.

Stimulated by the eviction notices, the tenants began to meet informally, involving the Eviction Defense Center and a private attorney. Due to a technicality, the Owner’s attorney rescinded the Ellis notices but served a new Ellis Notice to Terminate Tenancy in July 2019. The tenants stood strong. 

After one of the tenants paid for private tests for lead and asbestos which were positive, an anonymous caller involved OSHA and building inspection. Renovations were shut down, and with the shut-down, the tenants could enjoy some relief from the daily din of construction. In December 2019, a HazMat team began asbestos and lead abatement in the building.

An investigation revealed that due to state and local restrictions, while the building could not be converted to condominiums, it could be sold under a Tenancy-in-Common ownership which was the owner’s apparent intention. 

The tenants began to organize and, in September 2019, were notified that Bay Area Community Land Trust (BACLT) may be interested in acquiring the building; if successful, existing tenants could stay and BACLT would lease the other units to new tenants who met their income criteria. Was BACLT going to be their knight in shining armor?

In October 2019, the “elder” tenants were served with a new notice, a Notice of Temporary Relocation offering a rent differential to “temporarily relocate" to a new residence within 30-days and stating the the relocation period would be for about 4-months. One tenant stayed while the others packed their belongings and sought “temporary housing.”

The oldest tenant, who was in her mid-90’s, had resided in the building for over 25-years, and "temporarily" relocated to a nursing home. She died in May 2020 without ever being offered the opportunity to return to her "home."

In November 2019, the tenants met with ACCE leaders and organized a protest in front of the building and they were also supported by the Berkeley Tenants Union. The press covered the tenants' story..

Now down to a few existing tenants, the remaining tenants were hauled into court after their 120-day Ellis notice period expired in December 2019. Armed with their Eviction Defense Center attorney, the second Ellis Act notice was judged defective and their cases dismissed.

In March 2020, the Owner rescinded all Ellis Act eviction notices. And, then the world shut down due to the global COVID-19 pandemic. Renovations resumed – at a exceedingly slow pace. The building was re-roofed but vacant units revealed garbage bags of building debris mounting on bare balconies and windows in some of the units remained broken and open to trespassers.

But through it all, BACLT, the tenants, and the City of Berkeley persevered. BACLT secured the necessary financing to acquire the building both from the City's Small Sites program and private sources. BACLT closed escrow at the end of June 2022. 

Existing tenants’ tenancy is secured and the remaining nine units will eventually be leased to new tenants who meet BACLT’s income criteria and who will pay an affordable rent.

It takes courage for tenants to stand up and stand together, it takes perseverance and emotional fortitude. And, perhaps it takes a few good advocates and tenant’s rights leaders to stand by their side. 

An update to this story was published by Berkelyside on Sept. 30, 2002 and authored by Supriya Yelimeli: Residents return to North Berkeley apartments after local land trust buys back building

Berkeley's Eviction Moratorium Remains in Effect

Berkeley Tenant Union recently advised that the Berkeley eviction moratorium remains in effect.

The City website states the following:

"Berkeley’s eviction moratorium is still in effect! City Council has declared a local state of emergency with no expiration date set as of yet. So long as the state of emergency is declared, Berkeley's eviction moratorium remains in effect. In addition, on September 30, 2021, the Alameda County Superior Court amended its Emergency Rule 1.8a. This rule prohibits the filing of any eviction lawsuit unless the landlord alleges that the eviction is permitted under any local ordinance and/or is necessary to ensure the health and safety of residents or any other permitted exception."

The Alameda County Moratorium also remains in effect. 

A lawsuit was filed in March 2022 against the City of Oakland and against Alameda County in federal court, Northern District, alleging that both the City and the County eviction moratoriums are illegal. The case (Case 3:22-cv-01274-LB) is currently set for jury trial in April 2023.

For more about this federal lawsuit, including reviewing a copy of the complaint, see the article published by The Oaklandside: Landlords sue to end eviction moratoriums in Oakland and Alameda County

Oakland's Eviction Moratorium Still in Effect

The Oakland Rent Board advises the following:

"California Assembly Bill 2179, which extended the State's Eviction Moratorium, has . .  expired. However, this law did not preempt Oakland’s [Eviction] Moratorium, which continues to prohibit most evictions, rent increases beyond the CPI, and late fees on covered units until the City Council lifts the local emergency. For questions about how the end of the State's moratorium might affect you, contact a RAP Housing Counselor at 510-238-3721 or rap@oaklandca.gov."

Are you "banking" on a rent increase? Or are you taken by surprise?

Tenants in Oakland breathed a sigh of relief when the City Council recently voted to change the manner in which the CPI rent adjustment was calculated and the Council capped rent increases at no more than 3% versus 6.7% under the prior calculation. The Council also changed the date at which the new increase became effective from July 1 to August 1, 2022.

I reside in Oakland and on June 30, 2022, I received a rent increase notice from my landlord's agent notifying me that my rent would be increased by 3% on August 1. The last sentence of the notice read as follows:

“It is the express intention of the property owner that the balance of any allowed rent increase under the Ordinance are banked under provisions of the RAO (Rent Adjustment Program) and can be added to any future increases and transferred to any future property owners."

Fortunately, given the continuation of the Oakland Eviction Moratorium, only the the annual CPI increase can be imposed on any Oakland tenant covered by the Moratorium and late fees are also prohibited. In addition, a rent increase can only be imposed with proper written notice once every 12-months.

Landlords may argue that rent increases that are not imposed allow tenants to “bank” the increase in a savings account until the increase is actually imposed. But it is more likely a strategy for a landlord to accumulate banked increases and raise the rent by the highest allowable (and unaffordable) amount, an amount that is designed to stimulate the tenant to move. (The transference of banked rent increases may also make the building more attractive to new owners for the same reason.) Once the unit is vacated, the landlord can re-lease the unit at market rate. This is particularly true if the tenant is low income, retired and/or disabled and “enjoying” a fixed income and a low market rent due to rent control. 

In San Francisco, for example, there is no limit to applying any banked increases dating back to as far as April 1982. In an article published on 9/16/2019 and titled, “Cities Grapple with ‘Banked’ Rent Hikes,” Noah Arroyo wrote, “San Francisco can be seen as the Wild West of rent banking. . .Landlords may grow their banks to any size, and may tap into any portion of that bank in a single year, as long as they provide. . .notice. . .That means a landlord who never raised the rent in 37 years could impose a non-negotiable [rent] hike of 95% in 2020.”

Fortunately, in Oakland, there is a cap of 3x the current CPI but not more than 10% for banked increases, which is still a pricey increase. Landlords are limited to banking rent increases for no more than the most recent 10 years. But, there are certain exceptions that allow landlords to increase rent by more than 10% and this includes (but is not limited to) a petition and hearing related to a "Fair Market Return."  

The City of Alameda appears to have the most well thought out ordinance regarding banked rent increases restricting any banked increases to no more than 8% being imposed at one time and allowing only 3% of the banked increases plus the current AGA to be imposed on any tenant in any year. Moreover, Alameda has a Rent Registry, requiring landlords to inform the rent board about any and all banked increases. (AGA = Annual Gross Adjustment). 

Oakland is playing catchup to Alameda, Berkeley, Richmond, and San Francisco having just enacted a Rent Registry which would require landlord's to register the latest rent increase. But, to protect an elder or disabled population or low income families, the registry (like others) does not include age or income range, likely due to privacy issues.

So what's a tenant to do? Oakland has a Banked Rent Increase calculator available for download with instructions which tenants can use to determine how many, if any, rent increases have been banked. If possible, tenants can start a special savings account to accommodate for these future increases although tenants are currently squeezed by post-pandemic hikes in gas, utility, and food costs, and the cost of household supplies.

A table below explores some of the municipal banked rent increase requirements.Links to research studies by the Terner Center for Housing and Innovation, U.C. Berkeley, are also noted below.

https://ternercenter.berkeley.edu/blog/california-rent-cap-debate/

https://ternercenter.berkeley.edu/wp-content/uploads/pdfs/Rent_Control_Paper_053018.pdf

BANKING RENT	BANKED RENT INCREASES LIMITED BY “X’ YEARS?	IS BANKED RENT INCREASE CAPPED?
Oakland	10 Years; banked increases over 10 years expire. Banked rent increases can be transferred to a New Owner.	Yes. The total of CPI Adjustments imposed in any one Rent increase, including the current CPI Rent Adjustment, may not exceed three times the allowable CPI Rent Adjustment on the effective date of the Rent Increase notice (Reg. 10.45) and no more than 10% in any one year (O.M.C.8.22.070A(2)) with certain exceptions such as if the Owner seeks a Fair Market Return. (O.M.C. 8.22.070A(3)). "No series of rent increases in any five-year period can exceed 30% for any rent increases [with certain exceptions]" (O.M.C. 8.22.070A(3).)
Berkeley	No. “If a landlord chooses not to take an AGA rent increase in a given year, they do not lose it. Landlords can “bank” AGAs and then raise the rent to the rent ceiling at any time if they provide the tenant with proper notice.” See: https://rentboard.berkeleyca.gov/rights-responsibilities/rent-levels/annual-general-adjustment See B.M.C. Chapter 11 (1102)	Yes, it is capped by the rent ceiling which is established by the rent board annually and published for each rental address and rental unit. See: https://rentregistry.cityofberkeley.info/#/homepage
Richmond	No.	Yes, as guided by Rent Board Regulation 602," To the extent a Landlord has not increased Rent up to the Maximum Lawful Rent level, the Landlord shall have the ability to apply deferred AGA rent increases; however, if the proposed rent increase for the Tenant household exceeds the current year AGA plus five percent (5.0%) of the rental amount charged to the Tenant household at any time during the 12 months prior to the effective date of the proposed increase, either in and of itself or when combined with any other rent increases for the 12 months prior to the effective date of the increase, the proposed rent increase shall be void." NOTE: The rent board uses compounded addition for banked rent increases.
City of Alameda	No. Landlords may choose to bank unused portions of the AGA to impose in later years; however, there are numerous restrictions such as a banked increase may not be transferred to a new Owner, a landlord can’t bank more than 8% in rent increases, and a banked increase is capped at 3% plus current AGA. NOTE: Compounded addition is used.	For more information, see Form RP-203. https://www.alamedarentprogram.org/Forms/Landlord-Forms
San Francisco	No. A banked rent increase is an increase that has not been imposed on the Tenant for 24-months unless the banked rent increase is a partial increase which can be banked for 12-months. There is no limit to the number of years of banked increases that may be imposed but rent increases prior to April 1982 can’t be imposed. Banked increases can be transferred to the new Owner for current (not new) tenants. NOTE: Compounded addition is not used and the landlord cannot round up the rent increase amount. See https://sfrb.org/topic-no-053-banked-rent-increases See: https://sfrb.org/fact-sheet-7-annual-allowable-rent-increases-and-banked-rent-increases	No. See column 1.

Rent Protection for Renters Not Covered by Municipal Rent Control - AB 1482

In January 2020, AB 1482 (or The Tenant Protection Act of 2019) was enacted to regulate rents for renters in California who are not covered by municipal rent control. 

Tenants in rental units that are exempt from AB 1482 were supposed to receive a "Notice of Exemption" from their landlord in 2020. If tenants did not receive this Notice, it is incumbent upon the tenant to proactively check and determine if their unit is covered or exempt from AB 1482. (See sidebar to this blog under "AB 1482" for more information about this state law.)

Each year, AB 1482 allows rent increases of 5% plus the CPI for the region or 10% whichever is lower for the 12-month period August 1 and ending July 31. Only one rent increase is allowed every 12-months and any rent increase requires advance written notice.

This year, beginning August 1, 2022 and ending July 31, 2023, the state rent cap is 10%, which is 5% plus 5%, the regional CPI for the San Francisco Bay Area. For more information about the regional CPI, visit California’s Department of Industrial Relations here.

Oakland Joins Berkeley and Richmond and Enacts a Rent Registry Program

When landlord tenant relations go sour in Oakland, one of the first questions for a tenant to ask is “Is my unit covered by the Oakland Rent Adjustment program?” One would think that answering that question is simple, but that really isn’t so.

While at the inception of tenancy, a landlord is required to also issue the Oakland RAP notice advising the tenant that their unit is covered by rent control, in some cases, the landlord neglects to issue the notice. In cases where the RAP notice has not been issued, the tenant then has to determine the age of the building and research municipal laws to determine if the age and the number of units in the building qualify the building to be covered by rent control. They can also consult the rent board for assistance all of which takes time.

However, in Berkeley and Richmond, landlords are required to register each rent unit covered by the municipal rent control ordinance. Failure to register rental units is met with financial penalties. All a tenant or prospective tenant needs to do is to check the rent registry (or consult the rent board if they suspect that the landlord failed to register their rental unit.)

Oakland has a population of about 423,000 persons and about 60% of its residents are renters. Whether pushed by the pandemic or the result of progressive city council members, a new program manager, and public pressure, or all of these combined, the creation of rent registry in Oakland was just approved by the City Council.

Beginning March 1, 2023, landlords will be required to register each rental unit covered by the Oakland Rent Adjustment Program, with the city. Such information as the:

• Address of each rental unit;
• Name, address and contact information of the Owner(s);
• Name, address, and contact information of the Property Manager(s);
• Name(s) of the tenant(s), their email address(es);
• Start date of the tenancy and the initial rental rate;
• Effective data of the last rent increase for each rental unit; and
• Amount of the security deposit.

If the landlord fails to timely register the rental units, a financial penalty will be imposed.

If the landlord fails to register the rental units at all, the landlord will not be able to file or to respond to a tenant petition and their failure to register the rental unit will act as an affirmative defense to eviction.

While the rent registry information will be public, the information will be limited to the "bare bones" to protect the privacy of the owner and the tenants. A public information request will reveal more information but private information will be redacted.

It's high time for Oakland to develop a rent registry and I, for one, would like to thank the City Council for taking this progressive action.

Oakland Provides Relief to Tenants, Capping Rent Increases at 3%

The pandemic brought significant change to our lives, including mine. Last year, I learned about the terminal illness of a family member whose care I have become involved in. Thus, as I have become adjusted to the role of “care giver,” I am finding my way back to tenant advocacy and am happy to report positive changes in Oakland municipal law.

I understand that landlords have been hard hit, too, with delays in rental assistance from the state’s Housing is Key program and increased costs (i.e., EBMUD, etc.). But, when I learned about Oakland’s proposed 6.7% rent increase adjustment, I was shocked and wondered how Oakland’s AGA could be so different from Berkeley and San Francisco.

Berkeley’s AGA for 2022 is 2.1%. See: https://rentboard.berkeleyca.gov/rights-responsibilities/rent-levels/annual-general-adjustment

San Francisco’s AGA for 2022 is 2.3% (Jan. 2021 to Dec. 2021) See: https://sfrb.org/topic-no-051-years-annual-allowable-increase#:~:text=The%20annual%20allowable%20increase%20amount%20effective%20March%201%2C%202021%20through,San%20Francisco%20Rent%20Board's%20jurisdiction.

The difference has to do both with the time period used from the Consumer Price Index (CPI) and the calculation. As reported in a recent City Council meeting, Oakland’s CPI calculation was negotiated by the City in 2002 and weighed the interests of landlords and tenants. But, the pandemic, and its aftermath, has shaken up all of our lives and, given public outcry, has stimulated the City to re-examine the 6.7% rent increase adjustment and how it is derived. I am happy to report that the calculation has been changed and rent increases capped at 3.0% to apply on August 1 versus July 1, 2022. Applicable increases are also guided by the Oakland Eviction Moratorium which is still in effect, is tied to the Local Health Emergency, and is being challenged in the court.

OLD NEWS:

On 2/29/2020, I reported the following on this blog, 

“As guided by O.M.C. 8.22.070B(3):

Beginning in 2002, the CPI Rent Adjustment is the average of the percentage increase in the ‘CPI—All items’ and the ‘CPI—Less shelter’ for the twelve (12) month period starting on March 1 of each calendar year and ending on the last day of February of the following calendar year calculated to the nearest one tenth of one percent."

The All Item Index CPI for the Bay area is 3.53% while the All Items Less Shelter Index is 3.54%.

The data for these calculations takes some time to locate on the U.S. Bureau of Labor statistics website but if one visits the CPI database page and selects one-screen data search and uses non-seasonally adjusted data, one can secure the relevant statistics.

                  CPI All Items All Items Less Shelter

Feb. 2018  281,308         240,742
Feb. 2019  291,227         249,269
Change          9,919            8,827
% Change      3.53%           3.54%

Avg. 3.53%

Applying rounding principles, one would round down to 3.5% which is the percent allowable rent increase published by the Oakland Rent Adjustment Program for July 2019.

See: https://www.bls.gov/cpi/data.htm

NEW NEWS:

On 5/31/22, Oakland proposed, and the City Council enacted, a major change in the CPI as follows:

1) the CPI time period used will now date from April 2021 to April 2022,

2) only the "All Items CPI" for the San Francisco – Hayward-Oakland western region will apply, and

3) Oakland will use 60% of the CPI or a 3% cap, whichever is lower.

The current CPI is 5% and 60% of that is 3%. (NOTE: The reason for the continued difference between Oakland, San Francisco and Berkeley is the time period chosen to calculate the CPI increase.)

This new rent adjustment calculation has been adopted by the City and, notably, is now lower than the allowable CPI rent adjustment increases in 2019 and 2020.

For more information, see: https://www.oaklandca.gov/news/2021/annual-allowable-rent-increase-announced

City Councilperson Carol Fife sponsored the amendment. She is the founder of ACCE, a state-wide tenants’ rights organization. All but one City Councilperson voted in favor of the amendment. Oakland Tenants Union also backed the CPI revision as well as other tenants’ rights organizations.

The City advised Landlords about other avenues available to increase rent in non-pandemic circumstances which includes 1) capital improvements, and 2) fair market return. A small property owner’s workshop will be offered by the City on July 13, 2022.

Tenants may register for a Tenants’ Workshop which is occurring on June 22, 2022. 

For more information about these workshops, see: https://www.oaklandca.gov/resources/rent-adjustment-program-workshops