Tuesday, January 29, 2019

Knowing Your Rights and When Not to Waive Them

If you reside in a leased apartment in San Francisco, Oakland, Berkeley, Richmond, or any other municipality in the Bay Area, check to see if the apartment is covered by rent control and/or just eviction municipal ordinances. Make no assumptions that your new apartment IS covered even if the lease agreement attaches notices relating to these municipal ordinances. 

When an apartment is covered by rent control, the landlord is required to register the unit with the rent board and pay an annual fee to the City. But even through a landlord may be required to register the unit doesn't mean that they will always follow the law. 

Your first step - before you sign the lease agreement - is to verify coverage or exemption from rent control and/or just cause eviction statutes. Contact the City rent program board and ask them for details. To do this, you may need to pay the city housing counselors a personal visit or, minimally contact the housing counselors by email or telephone.

Before you contact the housing counselor, do a little research. Ask: 

1. Was a Certificate of Occupancy issued for the building and when was it issued? Usually the City Building Department will have those records.

2. When was the building actually built? Again, city building department records may be helpful here.

3. What is the configuration of the leased units on the property? Bring a description of the property to the rent board housing counselor. 

For example, explain that there is a single family home at the front of the property and that you lease a backyard cottage that has been divided into two units. Or that you live in a duplex. Or that you lease one unit in a 8-unit building.

If you lease a single family home or a condominium, it is likely that the building is not covered by rent control due to the Costa-Hawkins Act but, even then, there may be some nuances to municipal law and a complicated analysis may ensue to determine coverage or exemption from rent control.

4. While you are speaking to the housing counselor and if you discover that your apartment is covered by rent control and/or just cause eviction ordinances, ask if the city requires any notices to be attached to the lease agreement that further describe tenants' rights.

Even if your apartment is covered by one or more of these ordinances, the landlord may have failed to provide you with the requisite notices or to have provided you with the correct notice but an outdated version.

Finally, if the apartment IS covered by a just cause eviction statute, never waive your rights as one landlord attempted to do in this lease agreement:

"There will be no month-to-month lease extensions [at the termination of this fixed-term lease.] This clause by agreement between Tenant and Landlord supersedes any other requirement or rule that may apply regardless of the entity including the City of [fill in the blank] Rent Board."

This clause is void and against public policy and would likely be stricken by the court in a legal proceeding involving the lease agreement. This clause implies that the "entity" could be the State of California, disclaiming even state law. If you see a clause like that in your lease agreement, write a line through it (strike it) and initial the revision in the margin of the lease agreement. The landlord may object to this change but that's probably a landlord that you don't want to lease from in the first place.

Menlo Park Takes Steps to Equalize the Bargaining Position of Tenants and Landlords

In February 2019, the City Council of Menlo Park will meet to determine if they should pass a proposed ordinance, the Tenant Relocation Assistance ordinance. In late 2016, Menlo Park passed a 12-month lease ordinance "finding that tenants have a right to a written lease and that a contractual relationship with a landlord may offer some needed assurances of stability and minimize displacement of tenants in a rental housing market affording tenants few and increasingly expensive options."

Indeed, the heart of the landlord tenant relationship is the lease agreement and while oral contracts may be binding, proving the terms of the agreement are much more difficult than when the terms are memorialized in a writing.

Monday, January 28, 2019

Just Cause Eviction Ordinance Expands to Unincorporated Areas of Marin County

"On December 18, 2018, the Board of Supervisors adopted an ordinance[PDF]ordinance that establishes a Just Cause for eviction policy in unincorporated areas of Marin. The policy applies to properties with three or more units, and requires that tenants be given a reason for a lease termination. The ordinance went into effect on January 17, 2019."

For more details, click here.

While housing costs are high in California, the laws are beginning to become more balanced between landlord and tenant. Hip, hip, hooray!

Tuesday, January 15, 2019

Floor Furnaces: A Footnote

PG&E is under considerable “heat” [no pun intended] given the California fires. So much so, that they are rumored to be filing for bankruptcy. Perhaps this is why things played out the way they did last weekend when I asked PG&E to inspect the floor furnace in my apartment and turn on the gas and pilot light.

When the PG&E technician entered the apartment, he exclaimed, “Oh my goodness, you have a floor furnace! That means you have a crawl space.”

Says I, “Well, yes, and I can show you where it is and open the crawlspace access door.”

The technician (who was a bit portly) looked at the crawlspace opening in dismay and then took out his measuring tape. He said, “The opening is too small and out of code. If I get stuck, PG&E will have to rescue me.”

He took out his flashlight and showed me the furnace beneath the floor and where the gas valve is. I volunteered to crawl beneath the building to turn on the valve but he warned me against this.

As I saw him walk away with his tool box, I reflected upon a recent advisory from the property management company:

  • If you smell gas when you turn your gas heater on (or any gas appliance), or if your CO detector alarm is activated, you need to turn off the appliance, contact PG&E immediately at 1-800-743-5000 and open all windows and doors to ventilate. PG&E will send a technician out immediately to check your gas heater or gas appliance and if need be, turn the gas off until repairs can be made. 
  • If you simply need your gas heater pilot light lit, please contact PG&E at 1-800-743-5000 and they will arrange with you to check your heater for safety and re-light the pilot light. This may be the quickest way to get your pilot light lit. 
Heating and Air Conditioning Vendors don’t want the liability to inspect a floor furnace;

PG&E doesn’t relish the idea of their technicians being trapped in a crawl space or the inspection liability; and

And the property owner doesn’t want to invest in a replacement furnace even though he could appeal to the Oakland rent board to pass along the capital improvement costs to the tenants.

Net, net, the property management company should be proactively inspecting any apartments with floor furnaces on an annual basis for they, too, may be liable for negligent repair and inspection.

I’m resorting to my space heater and sweaters to stay warm in the interim and, if it gets too cold, I will arrange for an HVAC vendor to turn on the gas and inspect the furnace. Oy vey!



Thursday, January 3, 2019

A Heated Resolution?

Originally from Chicago where old apartments have radiant heat and newer homes have central heat, it wasn’t until I lived in a 50+ year old building in California that I ever heard about "floor furnaces." A floor furnace is a gas furnace installed beneath the floor, that uses a pilot light to heat air. The heated air escapes through a metal grill installed in the floor.

Last winter, I turned on the floor furnace in my living room. Dust, particulate matter, and smoke was “coughed” out by the furnace. Moments later, a combination smoke and carbon monoxide detector belted out an incessant, blaring noise. I disarmed the detector, turned off the furnace, and thinking that this was simply an aberrant occurrence, waited five minutes only to experience the same thing but with another smoke detector being activated.

I called the property management company and asked for a furnace inspection. Two technicians came out, turned off the gas, vacuumed the unit, and remarked that the “inspection cap” was “missing” and that a replacement would need to be found. Given that these furnaces are old and outdated, finding a replacement inspection cap requires some ingenuity by the vendor.

Net, net, due to the issues with the furnace, the vendor recommended that PG&E inspect the furnace for gas leaks. Eventually, the duct work for the furnace was replaced and the vendor asked PG&E to reinspect the furnace. This process took 3-months of inspections, repairs, and re-inspections and I finally had PG&E shut off the gas to the furnace since we were approaching the summer months and since I learned that the pilot light in the furnace is always on and increases the indoor temperature by up to 10 degrees. Since having the gas turned off, the apartment has been far cooler in summer and saved me about $20 per month on my PG&E bill. And, I have covered the grill to prevent dust and debris from falling into the furnace.

But, this was the first time in 5 years that the furnace was ever inspected and it was inspected only upon my request!

In 2007, the California assembly considered a bill to change Cal. Civ. Code section 1941.1 to outlaw floor furnaces using wording as follows:

2007 Proposed Change to Cal. Civ. Code sec. 1941.1.

(a) A dwelling shall be deemed untenantable for purposes of Section 1941 if it substantially lacks any of the following affirmative standard characteristics or is a residential unit described in Section 17920.3 or 17920.10 of the Health and Safety Code:

(d) Heating facilities that conformed with applicable law at the time of installation, maintained in good working order. On and after January 1, 2014, a floor furnace as defined in Section 1103.50 or any unvented furnace or heating facility located in the floor of the dwelling shall not be considered as conforming to applicable law.

The bill died later that year and the law currently reads as follows:

Cal. Civ. Code sec. 1941.1.

(a) A dwelling shall be deemed untenantable for purposes of Section 1941 if it substantially lacks any of the following affirmative standard characteristics or is a residential unit described in Section 17920.3 or 17920.10 of the Health and Safety Code:

(4) Heating facilities that conformed with applicable law at the time of installation, maintained in good working order.

While replacing all floor furnaces was briefly considered by the legislature, their consideration does point out the possible safety risks with these heating devices. If you have a floor furnace, ask the owner or property manager to conduct a yearly inspection, turn off the gas in summer and have it turned on in winter, or ask PG&E to do the inspection and turn/on off the gas. PG&E will provide you with an inspection report that you can provide to the owner or property manager.

Be sure to cover the grill when the gas is not turned on (summer) and to vacuum out the floor duct before the gas is turned back on (winter). Keep furniture away from the furnace and ensure that the detectors in your apartment will detect carbon monoxide as well as smoke and fire.

Interestingly, after my furnace was inspected, repaired and re-inspected, the owner had  separate smoke and carbon monoxide-detectors installed in every apartment in the building. As well he should since all apartments in my building all have gas furnaces and inspections have been one-offs.

For more about floor furnaces read: http://www.propertyevaluation.net/Tech%20-%20Floor%20Furnace%20-%20CREIA%20Aug%202008.pdf

Be warm but be safe!