You Snooze, You Lose

Housing Inventory Deadline— March 2023

A law passed by the City requires all property owners to provide certain information to the Rent Board about their residential properties each year. The reporting requirements apply to all residential units in San Francisco, including single-family homes, vacant units, and owner-occupied units. The law also created a new licensing requirement for San Francisco landlords. Property owners who report that a unit is tenant-occupied will receive a rent increase “license” that allows them to impose annual allowable and banked rent increases. Landlords who have not fulfilled their reporting requirements will not receive a license and will not be permitted to impose annual allowable and banked rent increases on a tenant until reporting is completed.

Owners of properties with more than ten residential units were required to begin reporting on July 1, 2022 with updates required each March 1 thereafter. For all other residential properties, the reporting requirements begin on March 1, 2023 with updates required each March 1 thereafter. Property owners may report information about their units into the Rent Board’s website (sfrb.gov) to comply with the March 1, 2023 deadline.

Fire Alarm Upgrade Deadline— July 2023

By now, you’ve probably heard about the San Francisco fire alarm code section 1103.7.6.1, which was adopted in 2016. The entire process can take anywhere from two to four months, so if you haven’t started the process yet, don’t wait any longer.

Building owners of (R-2) residential buildings with three or more units with an existing building fire alarm system need to comply with sound level requirements for sleeping areas by July 2023. Alarm systems have to pass the

“pillow test,” meaning the central fire alarm system must be loud enough for all residents to hear it from their bedroom (meeting a sound level of at least 75 dBA).

If this applies to you and you haven’t upgraded your fire alarm system, contact your existing fire alarm provider and see what they can do for you. They may already know what needs to be done and can help with your unique building. The alarm system professional you work with should consider whether or not you have electronic floor plans available, if there’s an elevator or sprinkler system in your building, or if you have construction or remodeling work planned.

For a list of SFAA-affiliated alarm system professionals, turn to the member directory on page 48. For more information on the legislation and FAQs, visit sf-fire.org/308-sleeping-areafire-alarm-requirements

Informal Review Request— March 2023

If you believe your property assessed value is higher than the market value, you may request an Informal Assessment Review between January 2, 2023 – March 31, 2023. This applies to single-family dwellings, residential condominiums, townhouses, live-work lofts, and cooperative units.

We’ve heard from quite a few members who’ve filled out the form and ended up saving thousands on their tax bill. Why not give it a shot?

Online submissions are preferable (sfassessor.org > Forms & Notices), but alternately you may send your request to: San Francisco Assessor-Recorder’s Office, Attn: Informal Review, 1 Dr. Carlton B. Goodlett Place, City Hall, Room 190, San Francisco, CA 94102. Fax: (415) 554-7915 or email: InformalReviewRP@ sfgov.org. Be sure to keep a copy for your records.

Justice for Renters Act

Initiative proponents filed a “Request for Preparation of Title and Summary” with the California Attorney General’s Office for the “Justice for Renters Act.” The filing is an initial step in the process of qualifying a measure for the ballot.

The measure threatens to repeal 1995’s Costa-Hawkins Act in its entirety, allowing local governments to impose rent control on single-family homes and newer apartments. The measure also would eliminate the state’s ban on vacancy control, allowing cities and counties to regulate rents between tenancies.

In addition to repealing Costa-Hawkins, the “Justice for Renters Act” would prohibit the state from limiting the right of local governments to maintain, enact, or expand residential rent control.

Should the measure secure the necessary signatures, it would likely appear on the November 2024 state ballot.

SFAA Landlord Expo

Come join SFAA and local rental property owners for a free educational event covering all things multifamily housing. Hear from the Department of Building Inspection, the San Francisco Fire Department, and the San Francisco Rent Board. The event will end with a beer and pretzel happy hour where you can chat with vendors, including landlord attorneys, plumbers, property management companies, and more. The event will take place on May 18, 2023, at the Fort Mason Center. Look for more details at sfaa.org and in the next issue of this magazine.

SFAA 2023 Lease Update

The new 2023 SFAA Residential Tenancy Agreement is now available for use. Because of the length of the full Agreement (27 pages), SFAA encourages all members to switch to a digital format of the lease. SFAA will still provide a print version of the whole document, but the costs of producing the hard copy version have skyrocketed this year. If you are able, please plan to purchase and use a digital version.

SFAA members can pay to access, email, and print the SFAA Residential Tenancy Agreement online. Members are allotted the number of leases that is associated with their unit count. As a courtesy, SFAA has allowed an additional five copies in addition to the actual unit count on record.

The digital version of the lease (a benefit to SFAA members only) can be accessed as follows:

One time use ($25): This will allow you 48 hours to complete the lease agreement online. If you need to access the lease after the 48 hours has expired, you will be able to renew the 48-hour subscription.

Regular members can access the new lease for one year at varying pricing tiers: $200.00 for 1- 30 units; $250.00 for 31-100 units; and $325.00 for 100 units or more.

Management companies can access the digital lease for $450 for one year.

If you have questions, contact Gershay Castaneda Gershay@sfaa.org or at 415255-2288 x 117.

SFAA Updates

SFAA office reopening status: As the SFAA pivots to a hybrid in-office work model, members are welcome to make an appointment to visit the office with questions. However, please refrain from coming in person if you have tested positive for, were exposed to, or have symptoms of COVID-19.

ANNUAL 2023-2024 RENT INCREASE

For rent-controlled units, annual allowable increase amount effective March 1, 2023, through February 29, 2024, is 3.6%. This amount is based on 60% of the increase in the Consumer Price Index for All Urban Consumers in the Bay Area, which was 6% as posted in November 2022 by the Bureau of Labor Statistics.

To calculate the dollar amount of the 3.6% annual rent increase, multiply the tenant’s base rent by .036. For example, if the tenant’s base rent is $2,000.00, the annual increase would be calculated as follows: $2,000.00 x .036 = $72.00. The tenant’s new base rent would be $2,072.00 ($2,000.00 + $72.00).

To learn more about the San Francisco Rent Board, call 415-2524602 or go to sfrb.org.

The best way to have your questions answered is through email: MemberQuestions @sfaa.org. And just a friendly reminder, timely payment of membership dues is the best way to help the association help you.

SFAA member meetings: The first inperson member meeting since the 2020 shelter-in-place is scheduled! Mark your calendars for March 15, 2023.

Mike Stack Real Estate Advisor