San Francisco Proposition H

Voters Approve Proposition H Requiring Landlords to Pay Inflated Relocation Expenses to Tenants for No-Fault Evictions Voters in San Francisco last week approved Proposition H, a measure that requires rental property owners to pay outrageously high relocation expenses to "eligible tenants" for no-fault evictions.

Proposition H is that the measure applies to all notices to quit served on or after August 10, 2006.

Covered under the measure are notices to quit based on Sections 37.9(a) (8), (10), (11) or (12) of the city's Rent Ordinance. Those sections apply to landlords who seek to recover possession of a rental unit:

(8) For the landlord's use or occupancy as his or her principal place of residence or for the use or occupancy of the landlord's relatives as their principal place of residence;

(10) To demolish or otherwise permanently remove the rental unit from housing use;

(11) To remove temporarily the unit from housing use in order to be able to carry out capital improvements or rehabilitation work; or

(12) To carry out substantial rehabilitation work.

"Eligible tenant" means any authorized occupant of a rental unit regardless of age who has resided in the unit for 12 or more months.

Each eligible tenant who receives a covered no-fault eviction notice is entitled to receive relocation expenses from the landlord in the amounts specified in Section 37.9C of the Rent Ordinance, which is set forth in the paragraphs below.

Each eligible tenant receiving a covered no-fault eviction notice shall receive $4,500, $2,250 of which shall be paid at the time of the service of the notice to quit, and $2,250 of which shall be paid when the unit is vacated. In no case, however, shall the landlord be obligated under this Section 37.9C (e) (1) to provide more than $13,500 in relocation expenses to all eligible tenants in the same unit.

In addition, each eligible tenant who is 60 years of age or older or who is disabled within the meaning of Section 12955.3 of the California Government Code, and each household with at least one eligible tenant and at least one child under the age of 18 years, shall be entitled to receive an additional payment of $3,000, $1,500 of which shall be paid within 15 calendar days of the landlord's receipt of notice from the eligible tenant of entitlement to the relocation payment, along with supporting evidence, and $1,500 of which shall be paid when the eligible tenant vacates the unit. Within 30 days after notification to the landlord of a claim of entitlement to additional relocation expenses because of disability, age, or having children in the household, the landlord shall give written notice to the Rent Board of the claim for additional relocation assistance and whether or not the landlord disputes the claim.

Commencing March 1, 2007, the relocation expenses, including the maximum relocation expenses per unit, shall increase annually, rounded to the nearest dollar, at the rate of increase in the "rent of primary residence" expenditure category of the Consumer Price Index for All Urban Consumers in the San Francisco-Oakland-San Jose Region for the preceding calendar year, as that data is made available by the United States Department of Labor and published by the Board.