Sunday, June 18, 2017

Foreshadowing Live/Work Tenant's Rights in Oakland

Since the Ghost Ship fire in Oakland, live/work buildings in commercial zones have become a focus of the City. Live/work buildings have been traditionally occupied by artists and low-income tenants, many of whom have resided in an industrial building without heat, adequate ventilation, and with mold and mildew, leaky roofs, and shared utilities. Since the Ghost Ship fire, building code enforcement seems to have sharpened its’ teeth but under an executive order from the Mayor, the city has identified certain buildings to bring into code compliance with attempts to lessen tenant displacement.

For example, the building pictured here is on International Boulevard in the Fruitvale-Harwood-International neighborhood in East Oakland and is a beautiful brick structure. The building was built in the 1920’s and is adorned with an impressive tower finished off by art-deco embellishments. But, the broken windows, graffiti, and hand-made signs are an exterior glimpse into the conditions that exist inside in this much neglected building.

This mixed use building is in an area zoned CN-3 for the portion fronting on International Boulevard and IG (Industrial General) or Commercial Industrial Mix-2. 


The property also sits in an S-19 zone which means that under the Oakland planning code, the area is in a hazardous waste area. In fact, the property nearby, previously occupied by a General Electric facility was found to have PCB’s, trichloroethene, and other toxic substances in the ground-water and soil.

After apparent public notice, the property management company applied for and recently received numerous building permits between December 21, 2016 and June 6, 2017 to convert 21 illegal live/work units to legal units and to add 38 new live/work units.


Their application for permits was made after the property owner in an application to the Landmarks Preservation Advisory Board in Oakland proposed to convert a "commercial space into ...live/work units in a designated historic property" on December 13, 2016 and it appears that the architectural plan was approved by the Oakland Planning Department.


Preliminary to the conversion of the building, existing tenants may have been offered “cash-for-keys” or buy-out offers to relocate. Others who may have turned down buy-out offers may have been provided a 30 or 60-day notice to move based on the just cause of substantial repairs.

To be valid, an eviction notice related to the just cause of substantial repairs must include the following statements under Oakland Municipal Code (O.M.C.) sec. 8.22360(A)(10):

1. That the owner of record has obtained all necessary building permits on or before the date upon which notice to vacate is given and seeks in good faith to undertake substantial repairs that cannot be completed while the unit is occupied, and that are necessary either to bring the property into compliance with applicable codes and laws affecting health and safety of tenants of the building, or under an outstanding notice of code violations affecting the health and safety of tenants of the building.

2. The owner of record shall proceed without unreasonable delay to effect the needed repairs.

3. The tenant shall not be required to vacate for a period in excess of three months but this period may be extended by the rent board.

4. Upon completion of the needed repairs, the owner shall offer the tenant the first right to return to the premises at the same rent and pursuant to a rental agreement of substantially the same terms, subject to the owner of record's right to obtain rent increase for capital improvements consistent with the terms of the Oakland Residential Rent Arbitration Ordinance or any successor ordinance.


5. An eviction notice terminating tenancy must include the following information:
  • A statement informing tenants as to their right to [relocation] payment under the Oakland Relocation Ordinance. 

  • A statement that "When the needed repairs are completed on your unit, the landlord must offer you the opportunity to return to your unit with a rental agreement containing the same terms as your original one and with the same rent (although landlord may be able to obtain a rent increase under the Oakland Residential Rent Arbitration Ordinance [O.M.C. Chapter 8.22, Article I)." 
  • An estimate of the time required to complete the repairs and the date upon which it is expected that the unit will be ready for habitation. 

Since the building pictured here is being substantially converted to bring illegal live/work units into compliance and to add new live/work units within building code regulations, it appears that relocation payments are covered by O.M.C. Chapter 15.60.

O.M.C. Chapter 15.60 was modified and the modifications adopted by the Oakland City Council as of January 19, 2017. In fact, there are two City Ordinances adopted (but not yet codified), namely 13416 and 13417.

The new O.M.C. Chapter 15.60 redefines "Code Compliance" to be more inclusive than relocations for "red-tagged" buildings only. The building pictured here appears to fall under the purview of the planning department.

A notice to terminate tenancy must comply with O.M.C. 15.60.060 and attach a "relocation program summary." [This last requirement assumes that a current relocation program summary that is compliant with the newly enacted code is drafted and available by the City.]

Finally, relocation payments are no longer based on fair market HUD rates for comparable units and there is an additional allotment for disabled, elderly, low income tenants, and/or households with children. Relocation payments are described in O.M.C.8.22.450.

Also note that with substantial repairs being used as a just cause for eviction, the eviction notice must be filed with the City of Oakland Rent Adjustment Board within 10-days of being served on the tenant and the notice, then, will become part of public record. Failure to file the notice within ten (10) days of service shall be a defense to any unlawful detainer action. O.M.C.8.22.360B.7.

Tenants facing similar issues should consult an attorney to determine whether a buy-out offer is a better alternative to the mandated relocation payments before receiving an eviction notice. 

Key City contacts for displaced (or soon to be displaced) tenants are as follows:

Sabrina Landreth: City Administrator

Connie Taylor: Oakland Rent Adjustment

Pamela Hall: Code Compliance and Housing Assistance

Kelley Rush: Admin. Assistant, ORAB for public records of eviction notices. 
(510) 238-6180

The "City Attorney's FAQ's Regarding Non-Conforming Residential Units in Light of the December 2, 2016 Warehouse Fire (1515 - 31st Avenue)" is an excellent primer summarizing tenant's rights under the newly enacted ordinances.

The City Attorney's FAQ's discusses the rental agreement which, in some cases, may be for a residential unit in a commercially zoned area. The rental agreement may provide or limit a tenant's rights and goes to the "heart" of the landlord-tenant relationship.

For tenants in live/work units, consult a private attorney concerning your rights or visit a non-profit legal agency such as those listed as resources to the right of this blog.

The Oakland Warehouse Coalition is an active advocacy group for tenants residing in live/work units and can be followed on Facebook.

In the case here, because a public notice was placed on the front door of the building and on the side-street fence, tenants and the public at large were clearly notified about changes to come. Forewarned is forearmed.

Finally, this blog contains general information and does not constitute legal advice or legal conclusions and analyses. Please consult a private attorney or non-profit legal agency for legal advice specific to your individual situation.

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