March 2020 SF Apartment Magazine by sfaa1917

SF APARTMENT magazine

PLAN AND

San Francisco Apartment Association March 2020 / $7.00

PROSPER TAX ADVICE TO COME OUT ON TOP

“The Top Selling Apartment Brokerage Team in San Francisco with over $4.135 Billion in Sales Totaling 712 Apartment and/or Commercial Buildings and over 14,350 Units”

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579-587 Burnett Ave ~ $8,000,000 17 Units - (Twin Peaks)

285 Turk St ~ List Price: $13,750,000 42 Units - (Tenderloin)

1509 Golden Gate Ave ~ List Price: $6,725,000 15 Units - (Alamo Square)

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510 Stockton St ~ List Price: $7,575,000 17 Units - (Downtown)

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99 Jersey St ~ List Price: $6,900,000 15 Units - (Noe Valley)

For More Information, Please Contact:

JAMES DEVINCENTI

BRAD LAGOMARSINO

Executive Vice President/Multifamily Investments

COLLIERS INTERNATIONAL 101 Second Street, 11th Floor San Francisco, CA 94105

Executive Vice President/Multifamily Investments

Visit Us at: www.THEDLTEAM.com

lic. 01058500

415 288 7848 j.d@colliers.com lic. 00951916

415 288 7847 brad.lago@colliers.com

JAY GREENBERG | TRIGG SPLENDA As established and recognized leaders in the San Francisco Apartment Sales Market,

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15 Units | Pacific Heights

12 Units | Lower Pac Heights

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6 Units | Hayes Valley List Price: $5,950,000

List Price: $5,449,000

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8 Units | Inner Richmond

List Price: $12,250,000

List Price: $6,750,000

6 Units | Inner Sunset Sale Price: $3,500,000

Things change very quickly in the marketplace and information is the key to success. Please contact us to make the most informed decisions related to your real estate needs. •

COMPASS

JAY@JAYHGREENBERG.COM LICENSE: 01049568

122°25'57 "

415.378.6755

RCIAL

SENIOR DIRECTOR COMPASS COMMERCIAL

MME

37°47'4 9 SF

JAY GREENBERG

TRIGG SPLENDA SENIOR SALES ASSOCIATE COMPASS COMMERCIAL

415.308.6560 TRIGG@TRIGGSPLENDA.COM LICENSE: 01484698

Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01527235. All materials presented herein is intended for informational Purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any descriptions. This is not intended to solicit property already listed.

SF APA magazine

SF APARTMENT

contents

Features

Hayes Valley Hits New Heights by EMILY LANDES

Down to Brass Tax by CARMEN CHU

The ABCs of Prop D by TERRENCE JONES

20 4

MARCH 2020 | SF APARTMENT MAGAZINE

PARTM Columns

Membership

Housing Crisis Act

Trading Spaces

The News

Market View

Legal Q&A

by VARIOUS AUTHORS

Steady Does It

Mighty Small

by JAY GREENBERG

In the Legal Loop by KILBY STENKAMP

Calendar

Professional Services Directory

Membership Application

SF APARTMENT MAGAZINE | MARCH 2020

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Project Management

2209 Lombard Street, San Francisco, CA 94123

MARCH 2020 | SF APARTMENT MAGAZINE

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magazine

SF APARTMENT

San Francisco Apartment Association Office 265 Ivy Street San Francisco, CA 94102 Tel 415-255-2288 Fax 415-255-1112 Email sfaa@sfaa.org

Web www.sfaa.org

SFAA Staff Executive Director Janan New

Deputy Director Vanessa Khaleel

Education Specialist Stephanie Alonzo Member Services Manager Maria Shea

Government and Community Affairs Charley Goss

Accountant Crystal Wang

SFAA Officers President Chris Bricker

Vice President Robert Link Treasurer Jim Hurley

Secretary Mark Henderson

SFAA Directors Eric Andresen, Honor Bulkley, Andre Ferrigno, David Gruber, Kent Mar, Neveo Mosser, J.J. Panzer, Bert Polacci,

VOLUME XXXIII, NUMBER 2 FEBRUARY 2020 Published by Hippo Productions Publisher Vanessa Khaleel Editor Pam McElroy

Art Director Jéna Safai

Production Manager Cameron Shaw Tel 415-392-3770

Web www.sfaa.org SF Apartment Magazine (ISSN 1539-8161) Periodicals Postage Paid at San Francisco, California. POSTMASTER: Send address changes to the SF APARTMENT MAGAZINE, 265 Ivy Street, San Francisco, CA 94102. The SF Apartment Magazine is published monthly for $65 per year by the San Francisco Apartment Association (SFAA), 265 Ivy Street, San Francisco, CA 94102. The SF Apartment Magazine is not responsible for the return or loss of submissions or artwork. The magazine does not consider unsolicited articles. The opinions expressed in any signed article in the SF Apartment Magazine are those of the author and do not necessarily reflect the viewpoint of the SFAA or SF Apartment Magazine. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal service or other expert assistance is required, the services of a competent person should be sought. Acceptance of an advertisement by this magazine does not necessarily constitute any endorsement or recommendation by the SFAA, express or implied, of the advertiser or any goods or services offered. Published monthly, the SF Apartment Magazine is distributed to the entire membership of the SFAA. The contents of this magazine may not be reproduced without permission. Publisher disclaims any liability for published articles. Printed by Jostens Printing Co. Copyright @2020 by SFAA.

Susan Sangiacomo, Dave Wasserman

SF APARTMENT MAGAZINE | MARCH 2020

COLUMN

THE NEWS elsewhere within the jurisdiction. This includes changes in height, density, FAR, minimum lot size, minimum frontage, and moratoriums or caps on housing approvals. Similarly, an urbanized jurisdiction no longer can adopt subjective design standards or apply those adopted after January 1, 2020 to proposed housing projects. In an urbanized jurisdiction, residential units cannot be removed from the market. Any project that proposes to demolish protected residential units, including below market rate, rent controlled, or Section 8 units, must replace those units at similar affordability levels. A housing applicant must also provide relocation assistance and an opportunity for those tenants to rent the new units.

Housing Crisis Act

To deny a housing project application, cities and counties will now have to make an objective determination and make it more quickly.

land use controls in an urbanized jurisdiction by filing a preliminary application. A full application must be made within 180 days of the preliminary application and the applicant has 30 months to begin construction. This does not limit existing fees with automatic annual adjustments.

he Housing Crisis Act will

The Housing Crisis Act of 2019, also

Local planning departments are going

strip cities and counties

known as SB 330, continues to move

to have to plan their hearing calendar

across California of their

state housing law toward objectivity

carefully for these housing projects.

ability to avoid housing pro-

and predictability. It applies to urban-

Once a housing development project

duction because it removes the main

ized jurisdictions and will be deter-

application is deemed complete (for an

tool used by housing opponents—un-

mined by the Department of Housing

entirely residential project or a mixed-

predictability, subjectivity and delay.

and Community Development by July

use project on land zoned to require

To deny a housing project application,

2020 based on US Census data. We ex-

at least 2/3 residential), a jurisdiction

cities and counties will now have to

pect urbanized jurisdictions to include

may only hold five hearings on the

make an objective determination and

San Francisco and much of the Bay

project. Workshops and continuances

make it more quickly.

Area, Los Angeles area, San Diego area,

count toward the five-hearing limit. An

and the Highway 99 corridor through

appeal hearing also appears to count

The Housing Accountability Act already

the Central Valley. The new law went

toward the five-hearing total. The num-

limits a jurisdiction’s ability to disap-

into effect on January 1, 2020 and will

ber of hearings may not be extended

prove or conditionally approve a resi-

sunset on January 1, 2025.

by the applicant. Permit Streamlining Act timelines limit a jurisdiction’s abil-

dential housing project for lower and

An applicant can lock the then-current

ity to delay the five hearings.

moderate-income residents (up to 120%

An urbanized jurisdiction may not

of the area’s median income level) if

rezone or “downzone” properties

the project is consistent with the local

where housing was allowed in 2018 in

A housing applicant, a qualified po-

zoning and general plan and it meets

a way that would discourage residen-

tential resident, or a housing organi-

objective standards.

tial development without “upzoning”

zation may bring an action to compel

MARCH 2020 | SF APARTMENT MAGAZINE

ALLISON CHAPLEAU MULTI-UNIT. MIXED-USE. COMMERCIAL.

JUST LISTED

643-645 Minna Street, San Francisco 3 Units in SOMA $3,250,000

2924 Sacramento Street, San Francisco 3 Units in Pacific Heights $3,850,000

80 Duncan Street, San Francisco 4 Units in Bernal Heights/Noe Valley $2,495,000

L ISTED & SOLD

2105 20th Street, San Francisco 3 Units in Potrero Hill $3,480,000 | January 2019 Represented Seller

198 States Street, San Francisco 2 Units in Corona Heights $2,620,000 | December 2019 Represented Buyer

696-698 5th Avenue, San Francisco 2 Units in the Inner Richmond $2,250,000 | December 2019 Represented Buyer

219-221 Ashbury Street, San Francisco 3 Units in NOPA $1,853,000 | December 2019 Represented Seller

422 Green Street, San Francisco 2 Units in Telegraph Hill $1,520,000 | December 2019 Represented Seller

1103-1105 Alabama Street, San Francisco 2 Units in the Mission $1,775,000 | November 2019 Represented Seller

1204 6th Avenue, San Francisco 4 Units in the Inner Sunset $2,650,000 | November 2019 Represented Seller

1960 Fulton Street, San Francisco 8 Units in Lone Mountain $3,500,000 | October 2019 Represented Buyer

574 5th Avenue, San Francisco 5 Units in the Richmond $2,700,000 | October 2019 Represented Seller

943-945 Haight Street, San Francisco 3 Units in the Upper Haight $2,075,000 | October 2019 Represented Seller

1821 Hyde Street, San Francisco 5 Units in Russian Hill $2,850,000 | October 2019 Represented Seller

1031-1039 Scott Street, San Francisco 9 Units in Alamo Square $4,675,000 | September 2019 Represented Seller

ALLISON CHAPLEAU Vanguard Commercial | Senior Vice President 415.516.0648 | allison@allisonchapleau.com | License: 01369080

ALLISONCHAPLEAU.COM

SF APARTMENT MAGAZINE | MARCH 2020

Eviction Control

Annual Allowable Rent Increase

At the end of last year, Mayor London Breed

Effective March 1, 2020 through February

signed an ordinance expanding just cause

28, 2021, the allowable annual rent increase

protections to most rental units in San Fran-

amount will be 1.8%. This amount was

cisco, with few exceptions. The ordinance

determined by taking 60% of the percent-

erty assessed value is higher than market value, you can request an Informal Assessment Review, by no later than March 31. This review request applies to single family dwellings, residential condominiums, townhouses, live-work lofts, and cooperative units. Submit requests online (preferable) or by mail.

covers single family homes and multifam-

age increase in the Consumer Price Index.

ily homes built within the last 15 years. The

To calculate the allowable rent increase,

Board of Supervisors voted unanimously in

multiply the tenant’s base rent by .018. For

favor of the ordinance, which went into ef-

more information, visit the San Francisco

fect in January. For more information, turn

Rent Board website at sfrb.org or call them

to “Mighty Small” on page 34.

at (415) 252-4600.

April 1: Due date to file Form 571-L:

Some no-fault evictions are still permit-

UPCOMING DEADLINES AT THE ASSESSOR’S OFFICE March 31: If you believe your prop-

In San Francisco, evictions are essentially limited to tenant-fault evictions, such as lease violation or nonpayment of rent.

Business Personal Property Statement. This form must be submitted by business property owners, detailing the acquisition cost of all supplies, equipment, fixtures, and improvements.

ted, such as an owner or a family member

April 10: The deadline to pay the

nors, disabled or older than 60).

moving in or leaving the rental property industry altogether. In these cases, the owner must pay relocation costs. In San Francisco, these costs start at $6,980 per tenant, but cannot exceed $20,939 per unit (this number is greater if tenants are mi-

2nd installment of property taxes to the Tax Collector’s Office.

SFAA Updates

May 7: The last day to file Form

March 26, 2020 for the annual SFAA trade

571-L without penalty. Failure to pay by May 7 will result in a 10% penalty of the Assessor Office’s estimated value of your business property.

Annual SFAA Trade Show: Save Thursday, show at the Fort Mason Center. Attendees will learn all about the latest trends, products and services in the multifamily housing industry. Consult with legal and management professionals, get to know service providers, improve your overall ef-

an urbanized jurisdiction to comply with

fectiveness at the free educational classes,

these requirements. A court must take

and meet peers in the San Francisco rental

action within 60 days and the burden of

property market. The event is free and

proof is on the local jurisdiction to show

open to the general public, so bring your

that they complied.

friends and enjoy! Please note that the trade show will replace the March mem-

Cities like San Francisco are already tak-

ber meeting. For more information on the

ing seriously these new changes. Other

trade show, turn to page 10, and to become

jurisdictions are likely waiting for HCD’s

a sponsor, contact vanessa@sfaa.org.

official determination later this year. The determination could be a pivotal moment

2020 SFAA Lease Update: The SFAA lease

for communities that are on the cusp of

committee is reviewing and making up-

urbanization and use discretionary tools

dates to the current lease. Visit www.sfaa.

to slowly kill housing projects. We will be

org in March for the 2020 lease.

watching closely. Updated CAA Forms: Each year the CaliforPlease keep in mind that there are many

nia Apartment Association updates their

subtleties to both new and existing law.

forms. This year brings many changes due

The above content was authored by

to new laws. A full list of the changed forms

Reuben, Junius & Rose, LLP Attorney

for California can be found by logging into

Jonathan Kathrein.

the CAA website: www.caanet.org.

MARCH 2020 | SF APARTMENT MAGAZINE

A game. Be on your

SFAA needs

you.

Support SFAA’s legal challenges to unjust legislation by donating to the SFAA Legal Fund. SFAA needs to stay relevant to remain effective. Help to further grow the legal fund. It will make a difference. Check out www. sfaa.org/legal-fund.shtml to find out more. *SFAA Legal Fund donations are tax deductible.

Adam Filly

Compass Commercial

Exceeding Expectations

Apartments | Mixed-Use | Commercial

Coming Soon

Inner Sunset

NOPA

5 Units | $2,550,000

9 Units | $3,100,000

Available Properties

2298 Lombard Street

688 Haight Street

245 Scott Street

Commercial Condo | $2,100,000

5 Units | $2,750,000

4 Units | $3,595,000

2799 Sacramento Street

924 Divisadero Street

577 Castro Street

6 Units | Call for Price

15 Units | Call for Price

7 Units | $7,750,000

Adam Filly Senior Vice President | m: 415.516.9843 | adam@adamfilly.com DRE 01354775 | www.AdamFilly.com Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01527235. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed.

SF APARTMENT MAGAZINE | MARCH 2020

COLUMN

MARKET VIEW

Steady Does It

10-plus Units

w r i t t e n b y JAY GR E E N B E RG

year for value indicators and transaction

Despite our uncertain political future, the local real estate market is holding strong.

2018 was an amazing record-breaking levels in this sector, especially considering the havoc that the infamous proposed proposition 10 had on our market. The average price per square foot was $556 in 2016 and $555 in 2017. In 2018, the average cost per square foot

am writing this article in late

and $561 in 2018. In 2019 we had a

jumped significantly to $621. At year-end

January a few days before our

marginal decrease with the average

2019, the cost per square foot retreated

beloved 49ers face off against the

cost per square foot coming in at $554.

to $598. The average GRM was 17.12

Kansas City Chiefs in Super Bowl

During this four-year period, price

in 2016 and 16.85 in 2017. There was a

LIV. There is a lot of excitement in the

per square foot has fluctuated within

significant uptick to 18.33 times gross in

air for the upcoming Super Bowl and

a five percent range. Similarly, gross

2018. In 2019, GRMs dropped back to a

the year ahead for our apartment mar-

rent multipliers had jumped signifi-

four-year low, with the average multi-

ket. This report contains all the usual

cantly from 2010 through 2015, and

plier coming in at 16.56.

value indicators and sales data that I

in 2016 we started to see a pullback.

report on each quarter for the 5-9-unit

The average GRM was 18.19 in 2016,

The average price per unit was

and 10-plus-unit sectors of the market.

17.79 in 2017 and 18.32 in 2018. In 2019,

$403,000 in 2016, $404,000 in 2017

GRMs dropped to their lowest level in

and $471,000 in 2018. In 2019, there

2019 statistics show declines in most

the past four years, with the year-end

was a modest dip with the year-end

pricing categories and mixed signals

average coming in at 16.97.

average coming in at $466,000.

into the statistics and provide some

Again, following a similar pattern, the

Dollar volume in the 10-plus-unit

perspective on the data. Fundamen-

average price per unit escalated from

sector was off the charts in 2018 with

tals in the marketplace were strong

2010 through 2015 (peak), and then

a record-breaking $1,153,000,000 in

throughout 2019, and I expect them to

pulled back in 2016. The cost per unit

sales volume. The previous high came

remain steady through the first half of

was approximately $482,000 in 2016,

in 2013 with $703 million in dollar

this year. The city and state continue

$457,000 in 2017 and $496,000 in 2018.

volume. Sales totaled $447 million in

their backward approach to control

There was a slight decrease in 2019

2016, $624 million in 2018, and again,

housing costs and have become the

with the year-end average coming in

more than $1.1 billion in 2018. In 2019

biggest threat to our marketplace and

at $489,000. Overall, pricing levels in

the dollar volume fell to $572 million,

the city and state economy. I am look-

2019 retreated modestly, while velocity

a more typical level. Transaction levels

ing forward to 2020 and sharing my

in the marketplace remained strong.

were very low in 2015 and 2016. Levels

related to activity levels. I have dug

picked up in 2017 and were very strong

success with everyone in our industry.

Dollar volume in the 5-9-unit sector

in 2018. There were 62 transactions in

The following are 2019 year-end sta-

has increased almost every year since

2016, 88 transactions in 2017 and 103

tistics for the 5-9-unit sector and the

the financial meltdown occurred in

transactions in 2018. In 2019 there was

10-plus-unit sector versus the same

2008. Dollar volume was $301 million

a significant drop to 65 closings.

time period for 2016, 2017 and 2018.

in 2016, $298 million in 2017 and $317 million in 2018. We hit a new high in

The source of the numbers reported

5-9 Units

2019 with $349 million in closed trans-

come from Jay Greenberg & Trigg

All value indicators climbed steadily

actions. Transaction levels also remain

Splenda, San Francisco Multiple Listing

from 2010 through 2015. The average

strong in the 5-9-unit sector. There

Service, and Costar Comps.

price per square foot has bounced up

were 102 transactions through 2016,

and down since 2016 without any big

105 transactions through 2017 and 104

My takeaway from the statistics above

peaks or valleys. The cost per square

transactions though 2018. We recorded

is that prices held steady in the 5-9-unit

foot was $544 in 2016, $535 in 2017

2017 transactions in 2019.

sector of the market. Two of the three

MARCH 2020 | SF APARTMENT MAGAZINE

John Antonini

Daniel Foley

Multifamily + Mixed-Use + Add-Value

Just Listed

1251 20th Avenue

62 Oakwood Street

6 Units | Inner Sunset 13.08 GRM, Soft Story Completed

Just Sold

1675 Clay Street 13 Units | Nob Hill

5 Units | Mission Dolores $458/ft, 1/2 Block from Dolores Park

Just Sold

1044 Judah Street 6 Units | Inner Sunset

Just Sold

2286 15th Street

3 Units | Duboce Triangle

Call for a FREE valuation of your property. John Antonini

415.794.9510 john@antoninisf.com DRE 01842830

Daniel Foley

415.866.7997 daniel@danielfoley.com DRE 01866714 SF APARTMENT MAGAZINE | MARCH 2020

Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01527235. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footage are approximate.

reported value indicators dipped less than

GRMs

5%, and the cost per unit rose 1.5% on a 5-9 Units 10+ Units

year-over-year comparison. Activity levels were strong through the year, and the number of transactions increased 2.88% along

with an increase in dollar volume of 10%.

The numbers in the 10-plus-unit category

show sharper declines and a little per-

2015

2016

2017

2018

spective is important when looking at the

2019

Source: CoStar Comps

data. As previously mentioned, 2018 was a record-setting year. With that in mind, GRMs decreased 8.5%, price per unit decreased 14.5%, and the cost per foot dropped less than 1% on a year-over-year

Price Per Sq. Ft.

comparison. The activity levels dropped

$700

significantly with a decrease in closings

$600

of 37% and a decrease in dollar volume of

$500

50%. By no means is the sky falling in the

$400 $300 $200 $100 $0

10-plus-unit sector of the market. The big drop in activity levels is a result of limited

5-9 Units

inventory—not lack of demand. This sector

10+ Units

of the market is still very competitive, and well-located, quality buildings are still sell-

2015

2016

2017

2018

2019

ing at premium prices. Q4

Source: CoStar Comps

Fundamentals in 2019 were excellent. Employment growth for SF Metro was approximately 3.5%; unemployment in the

Price Per Unit

Bay Area came in below 3%; and in San

$600,000

Francisco, the unemployment rate dropped

$500,000

to a historic low of 2.1%. The office leasing

$400,000

public offerings was excellent all year, set-

market fueled by tech giants and recent ting three new rent level records.

$300,000 5-9 Units 10+ Units

$200,000 $100,000

2015

There is currently a severe space crunch in the market as office space is being 2016

2017

2018

2019 Q4

Source: CoStar Comps

pre-leased before it is even built. A recent San Francisco Business Times article reported “The Bay Area’s core office market retained its spot as the nation’s strongest office market with the lowest vacancy and

120

Transactions

highest rents edging out its closest rival Manhattan.” Following suit, the apartment rental market was strong throughout the

100

year. The rental site “Zumper” recorded

in June a median price of $3,700 per

month for a one-bedroom apartment in YTD 5-9 Units YTD 10+ Units

40 20 0

on Zumper for any city, San Francisco included. Meanwhile, interest rates remain

2015

2016

Source: CoStar Comps

the city. That’s the highest ever recorded

MARCH 2020 | SF APARTMENT MAGAZINE

2017

2018

2019 YTD

extremely attractive, hovering in the mid Market View… continued on page 42

TERRENCE JONES Ethical. Human. Local.

Terrence Jones Offers Creative Solutions for a Fast Paced Market

JUST SOLD IN NORTH BEACH

42–46 Jasper Place

San Francisco, CA 94133

Sale of this property involved an Owner/Tenant Buyout. 3 Vacant Flats Sold at $692/SF Contact Terrence for a complementary valuation on your building — whether buying, selling, or executing a 1031 Exchange, Terrence can lead you in the right direction. Call, text or email to start the conversation.

Terrence Jones

Senior Broker Associate Lic. #01343939 Terrence@TerrenceJonesSF.com TerrenceJonesSF.com | 415.786.2216 SF APARTMENT MAGAZINE | MARCH 2020

COLUMN

LEGAL Q&A

Trading Spaces w r i t t e n b y VA R IOU S AU T HOR S

it would probably be enough to negoti-

Should owners exchange decreased rent for reduced services? The Rent Ordinance contemplates the Q. A tenant who originally

ate the amount privately, serve a formal

rented a unit with a parking space has decided they no longer want the parking space and is asking for a rent reduction. Is this recommended?

A. Well, first, you haven’t mentioned

your tenant accept the change in writing, along with notice that they need not accept it as part of their agreement. (See Rules and Regs., §12.20.)

“severing” of housing services, but

—Justin A. Goodman

the city has never articulated any “just causes” that would allow a landlord to actually do it. This can limit your use of the garage in a number of ways. For instance, the city encourages landlords to build accessory dwelling units in

The last original occupant has moved out. Do I just serve a rent increase notice to the subtenants? Or is there a new application process? If the subtenants don’t meet the credit score requirements, do I have to enter a new lease agreement with them?

the amount of the proposed rent re-

previously unused spaces (like garages),

duction, which is important, because

but building an ADU is not a just cause

you’ll want to consider the impact of

to sever. You’re also held to an unusu-

the lower income on your cap rate and

ally high standard of care to maintain

whether your deed of trust has an as-

this housing service, merely because it’s

signment of rents, which secures your

being rented by a rent-controlled ten-

lender’s security interest . . . just kid-

ant. (Unintentional obstruction could

ding. The answer is “yes.”

be actionable tenant harassment, and

Hawkins Rent Control Act. My analy-

A. My response analyzes your obligations under AB 1482 and under Costa

you limit your exposure by reducing the

sis assumes the following: (1) This is a

As you know, San Francisco residen-

number of things you need to maintain

tenancy in a multi-unit property, subject

tial rents are controlled by regulation,

for your sub-market-rate tenant.)

to the SF Rent Ordinance with a certifi-

and they only increase at legislative

cate of occupancy issued prior to June

minimums. (You get 1.8% this year.) San

However, you don’t need to worry

13,1979; (2) The “last original occupant”

Francisco also has eviction controls,

about any of this, because your tenant

is the person who was named in the

which exist to protect rent controls (so

is approaching you to sell back their

written lease document and/or from

landlords can’t avoid price regulations

parking space. This will temporarily

whom you received rent – i.e. your Ten-

by simply ending the tenancy and start-

reduce your rental income, but you can

ant. (3) The Tenant has confirmed in

ing over). Since 2006, San Francisco has

charge market rate to the next tenant

writing that she has permanently relin-

extended eviction controls to “housing

who needs it (or potentially lease to a

quished possession and has confirmed

services,” meaning that landlords can’t

non-residential tenant or commercial

she will not be moving back in or retain-

sever things like storage units or park-

ride-share service. These uses are not

ing the right to move back in. (4)Your

ing spaces that were always a part of the

subject to rent-control).

interaction with the subtenants was

tenancy. (Taking away services would

notice changing the terms, and have

only via the Tenant and that you did not

either work like an inverse rent increase

How you do this is a bit more compli-

accept rent from the subtenants and/or

or potentially coerce a tenant to vacate,

cated. You’ll want something more

establish any particular direct obliga-

if the service was essential to them.)

than a handshake deal to navigate the

tions, duty or what we call “privity” by

anti-waiver language in the Rent Ordi-

treating the subtenants as if they were

This also applies to later-in-time hous-

nance. Full compliance with the buyout

your Tenant. That is, if the subtenants

ing services. The landlord can initially

ordinance might be a bit over the top

had any concerns with their occupancy

charge market rate to an existing tenant

(although the tenant is technically “va-

at the property, you were clear in direct-

renting a new, on-site parking space. But

cating” the parking space, so it wouldn’t

ing them to the Tenant.

once they do, the parking becomes a

be the worst idea). The Rent Board does

part of the tenant's lease, subject to price

have a formal hearing procedure to

and eviction controls.

adjudicate an appropriate reduction. But

MARCH 2020 | SF APARTMENT MAGAZINE

Legal Q&A… continued on page 43

SF APARTMENT MAGAZINE | MARCH 2020

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A neighborhood once known for crime and neglect has been reborn in recent years, thanks to a growing sense of community and flourishing new apartment developments.

alk down the street in Hayes Valley and you’ll see a neighborhood in full bloom. Shoppers scan the curated collections in boutique windows while foodies from around the city and around the world come

to sample high-end restaurants like Petit Crenn and Monsieur Benjamin. Wellness enthusiasts sip their $11 green juices from Juice Shop on their way to get a CBD massage or organic facial at Earthbody Day Spa. While other San Francisco neighborhoods have had trouble keeping storefronts filled, Hayes Valley is so popular with retailers that even a 2004 ban on chain stores has failed to keep them out. National brands like Warby Parker, Allbirds and, soon, a Trader Joe’s have all found ways around the ban, though there are still plenty of local specialty shops like True Sake and kids boutique Fiddlesticks. The kids themselves can be found playing on the

Above: The curated shelves of The Epicurean Trader, a high-end grocer on Hayes. Adjacent: Tara Mechani, a 14-foot-tall futuristic female Buddha sculpture by artist Dana Albany on Patricia’s Green. Photo credit: Emily Landes Page 23: A collection of in-unit and common area photos of The Rise, Hayes Valley. Photo credit: Tri Nguyen Photography

huge climbing structure or looking up at the revolving selection of largescale artwork in Patricia’s Green, or farther west at Hayes Valley Playground, which was renovated just a few years ago and includes an eco-friendly clubhouse with a living roof and solar panels. But Hayes Valley’s future wasn’t always so sunny. Long-term residents in the neighborhood can remember when the most distinctive element was the overpass for the Central Freeway, which severed the neighborhood into two very separate sections when it was built in 1959. Madeline Behrens-Brigham moved to the neighborhood in the mid-1980s and can remember the divided Hayes Valley that used to be. “The freeway was the border, and you didn’t want to go under it,” she told Hoodline.

MARCH 2020 | SF APARTMENT MAGAZINE

Hayes Valley HITS NEW HEIGHTS w r i t t e n b y E M I LY L A N DE S

SF APARTMENT MAGAZINE | MARCH 2020

The side east of the freeway, where Octavia

activists, Patricia Walkup—opened. A

life to the neighborhood, both through

Boulevard is today, had the opera and the

neighborhood divided was now a neigh-

innovative modern design and new retail

symphony, as well as the fancy shops, art

borhood on the rise.

and restaurants.

tage of the well-heeled clientele who at-

From Demolition to Development

Even smaller condo buildings, like the 41-

tended events there. It felt tied to City Hall

The destruction of the freeway not only

unit property 450 Hayes, have transformed

and the hustle and bustle of downtown.

brought the neighborhood together, it

the streetscape. The irregularly shaped site,

also left many vacant lots prime for re-

actually two buildings connected by an in-

The west side was a whole different world,

development. This being San Francisco,

ternal courtyard below and bridges above,

with dilapidated housing, rampant drug

the empty spans took over a decade to

is “defined by a pattern of wood panels that

use and prostitution, and a few scattered

develop. The fact that the subprime crisis

create a kinetic rhythm along the street,”

storefronts. “People were so afraid to come

and subsequent financial collapse took

according to Handel Architects, which de-

here,” said Behrens-Brigham, who also

place during this period only added more

signed the property. And its ground-floor

had a shop on the west side in the early

time and uncertainty to the process. In

restaurant from Flour + Water chef Freedom

’90s. “We were called ‘the bad block’... You

fact, the run-up to developing what ended

Rains, a Mano, has very quickly become a

couldn’t get a pizza; you couldn’t get a taxi;

up becoming Avalon Hayes Valley took

hit with locals and tourists alike.

the police wouldn’t even come here.”

so long that the site at Octavia where the

galleries and restaurants that took advan-

freeway once stood was used as a non-

The quickly growing reputation of the

But when the Central Freeway was se-

profit farm for over three years before

neighborhood means that newer nearby

verely damaged during the 1989 Loma

construction on the apartment building

apartment developments are pleased to

Prieta earthquake, it provided the impetus

finally began in 2013.

promote their connection to the area. A new Greystar-backed apartment complex

for community groups to pressure Caltrans to take the overpass down. In 1992,

Two years later, the 182-unit five-story com-

is at “the epicenter of four amazing areas in

the compromised sections of the spur

plex was one of the first new developments

San Francisco: Hayes Valley, The Mission,

running to Franklin and Gough at Golden

to be completed in the neighborhood.

Castro and SoMa,” according to community

Gate were removed. Not coincidentally,

The entire building has luxury finishes,

manager Samantha Lynn. Yet the Market

that was about the same time the neigh-

with the highest-end units equipped with

Street building was dubbed “The Rise

borhood started referring to itself as Hayes

quartz countertops, hickory wood plank

Hayes Valley” when it opened last year.

Valley, and not Western Addition or Lower

or polished concrete floors, and in-unit

Haight. “When we started trying to pro-

front-loading washers and dryers. The

“Those that live in SF already have come

mote ourselves as a collective, we called

Signature units also include two hours of

to know and love Hayes Valley,” said Lynn,

it Hayes Valley, after seeing the name on

maintenance assistance upon move in to

who added that all new residents receive

a real estate map,” Behrens-Brigham re-

hang art and window treatments or arrange

local treats like macarons from Chantal

called. “I mean, that was the name, but it

furniture, as well as access to premium

Guillon upon move-in. “It has great eateries,

had never been called that openly.”

parking spots and two complimentary roof

boutique shopping and people-watching

top deck rentals every year.

opportunities. There’s a beautiful park where you can congregate, food trucks are

The newly rebranded neighborhood would need to band together to get the rest of the

The roof top is a true entertainer’s para-

offered daily and you’re able to simply en-

overpass removed. Tearing down the un-

dise, with City Hall views, big screen TVs

joy the outdoors in a big city.”

damaged portion of the freeway connect-

and outdoor kitchens. Down at street level,

ing to Oak and Fell streets proved to be a

there’s also additional common outdoor

The 160-unit building may be a new ad-

lengthy and heated political battle, culmi-

space via an inner courtyard. Other ameni-

dition, but it’s already helping to provide

nating in several trips to the ballot box and

ties in the pet-friendly building include a

more neighborhood amenities, like a

vociferous pro- and anti-freeway cam-

24-hour fitness center, bike share and bike

newly built plaza, complete with a “cour-

paigns. In the end, voters determined that

parking, and a dog spa.

tesy patrol” that ensures the outdoor space and building entrance are “kept clean and

not only should the freeway come down and be replaced with a leafy boulevard, but

Many of the other new large-scale high-

clear,” Lynn said. An “amazing” restaurant

also that money the city made from selling

rise projects that opened in the area

tenant may soon be adding to the neighbor-

or leasing right-of-way properties should

around the same time period, like the

hood’s reputation as a dining destination,

help fund the Octavia plan.

Stanley Saitowitz-designed 8 Octavia

though it was too soon for Lynn to release

and Arquitectonica-created Linea, are

more specifics.

In 2003, the Central Freeway finally

condo buildings. (Saitowitz also designed

came down and two years later Octavia

555 Fulton, another condo building and

Then there are the community ameni-

Boulevard and Patricia’s Green—named

the future home of the aforementioned

ties in the building itself, like a roof deck

after one of the most ardent anti-freeway

Trader Joe’s.) They have all brought new

with an outdoor kitchen and dog run, a

MARCH 2020 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | MARCH 2020

4,000-square-foot courtyard with a fire-

1031 EXCHANGE 101

place and ping-pong table, and a chef’s kitchen that residents can rent out for

You know the saying about death and taxes? Well, at least you can defer

celebrations and other gatherings. A game

one of those with a 1031 exchange. Typically, when you sell an investment

room, fitness center and work spaces round

property, you’re subject to several different taxes. But by trading one like-

out the amenities offerings.

kind property for another via a 1031 exchange, the IRS lets you defer a

Residents have also been drawn to the in-

considerable amount of taxes. There are many different options for you to

unit amenities, like soaker tubs, Samsung

execute a 1031 exchange.

appliances and hardwood-like floors. The views are another selling point, with resi-

The most obvious is trading one property you manage for another. An example:

dents interested in both the bustling Market

you sell a duplex and purchase a commercial building. In that instance, you’re

Street-facing apartments, as well as the inte-

maintaining your role as landlord, which comes with responsibilities such as

rior units that look out over the courtyard, according to Lynn.

repairing issues, dealing with individual tenants, property management, asset and property level accounting and processing rent.

But ultimately, Lynn feels that the building’s location is one of its biggest ameni-

A slightly more passive approach is to exchange into a triple-net property. In

ties, as well as its community-minded staff.

this case, you’re leasing your property to a tenant who often agrees to pay

“Our staff is compassionate and hold a

the majority of expenses associated with the property, which can include

true genuine ability to provide hospitality to our vendors, prospects and residents,”

taxes, insurance and maintenance. The landlord is still often responsible for

she said. “We are not just providing hous-

needs of a property—including coordinating and paying for repairs, paying property tax bills, processing invoices. The difference from a standard lease is that the landlord is billing the tenant for those expenses. If you are looking for a fully passive exchange option, Delaware Statutory

ing in a great area. We are providing a home, in one of the very best neighborhoods of San Francisco.” Emily Landes is a freelance writer and editor and the former editor of SF Apartment Magazine.

Trusts (DSTs) are potentially a good option. A DST is an entity that holds title to a piece of real estate and investors are able to buy in for typically $100,000 minimum investments. DSTs are used by investors to build a diversified portfolio for their 1031 exchanges whereby they can, for example, on an exchange with $1,000,000 of equity purchase five different DSTs in $200,000 increments. The investor may purchase $200,000 in a DST that owns a longterm net leased FedEx building, $200,000 in a DST that owns a long-term net leased Amazon building, $200,000 in a debt free multifamily DST apartment building in the Nashville metro area, $200,000 in a DST that owns 1,000 multifamily units among three properties in three different states and lastly $200,000 in a DST that owns a long-term net lease industrial building. Additionally, the trust’s sponsor is the asset manager of the property, which involves handling reimbursements from tenants and daily needs, repairing

Online!

Find more information on SFAA classes, apartment industry news & excerpts from SF Apartment Magazine at www.sfaa.org Mike Stack

Real Estate Advisor Call or email me

issues, processing rent and invoices, etc. This provides investors with a

today for a free &

truly passive approach to their 1031 exchange and a change in lifestyle from

private analysis of your property’s value,

the active duties of property management. DSTs are also a great backup

it’s never too early to

plan to keep in mind due to the 1031 exchange’s tight timeframe. Because

get started.

the trust already owns the properties, transactions can often be completed within just a few days.

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SF APARTMENT MAGAZINE | MARCH 2020

Down to BRASS TAX written by

CARMEN CHU

According to Assessor Carmen Chu, estate planning is an “act of love.” Read on for advice on how to best set up your family and your estate. There is no one quite like Carmen Chu in San Francisco. With a wide range of financial experience under her belt, it is no wonder why she is known as “Money Lady” at City Hall. She used to chair the Budget and Finance Committee at the Board of Supervisors, guiding the city through its complicated budget process and setting priorities. As the elected Assessor, she is responsible for the city’s growing property tax base , which generates over $3.3 billion in revenue per year. More recently, Chu joined the Board of the San Francisco Employees’ Retirement System, which oversees $26 billion in pension investments for over 70,000 active and retired employees. She also organizes an annual financial education event—the Family Wealth Forum—to help connect families to estate and financial planners. Today, we’re connecting with Assessor Chu to catch up and catch on to some key tips for managing personal finances.

SF Apartment Magazine: We’ve recently heard some great news from your office, can you tell us more about some of the latest developments?

Assessor Chu: Absolutely. Over the last few years, we have taken a critical look at how we do business with an eye toward reversing a decades-old backlog of assessments to improve customer service. This year, I am thrilled to announce that not only have we met this ambitious goal, but we have also been selected in recognition of this effort to receive the prestigious 2020 Good Government Award! Called “Goal to Roll,” the initiative provides the office with clear direction and tools to improve productivity and transparency. The results of our effort has been significant to San Francisco and to taxpayers. Over the last several years, our work has led to over a billion dollars in excess funding for city services, including the return of close to $545 million in ERAF funding from the state. And with growth in our property tax base, it has meant that the city has an additional $2.6 billion in bonding capacity to fund our deferred capital maintenance needs, such as repairs to our seawall and public safety facilities. Meanwhile, non-profit partners and affordable housing developers benefit from faster processing of exemption claims, and taxpayers are no longer burdened with multiple years of “catch-up” bills and instead have more certainty and ability to forecast expenses.

MARCH 2020 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | MARCH 2020

STILL HAVE QUESTIONS ABOUT ESTATE PLANNING? Set up one-on-one counseling sessions with estate planners, financial planners and tax experts at Carmen Chu’s 2020 Family Wealth Forum. Sessions are available on a firstcome first-served basis.

When: May 2, 2020 Where: Balboa High School, 1000 Cayuga Aveune How: Register only at sfassessor. org/familywealthforum. If you are not able to make this event, the Assessor-Recorder’s office partnered with the San Francisco Public Library to conduct a monthly series of workshops at different branches across the city. For more information and a schedule, visit sfassessor.org/events.

questions around asset building and estate

One final point I want to make is that plan-

planning. We understand that people come

ning, estate planning specifically, truly is

to us with vastly different challenges. Some

an act of love. Planning ahead spells out

people want to generally understand what

your wishes clearly and spares your family

they need to do to plan for themselves and

and your loved ones from having to sort

their families, and others have very specific

through a lengthy and sometimes conten-

questions about their financial situation.

tious probate process while they grieve.

Our FWF is tailored to address both needs by offering multilingual workshops and

SFAM: What if a family cannot afford to

free pro bono one-on-one counseling with

set up a trust? Do they have other options?

certified financial planners and legal and tax experts. Our next event is scheduled

Chu: Individuals can create trusts or

for May 2, 2020 at Balboa High School. Visit

wills, designate beneficiaries or use vari-

sfassessor.org to sign up and reserve a spot.

ous other instruments to help with estate

SFAM: Do you have advice on how to get started with estate planning?

Chu: For so many, not knowing how

planning. Another tool in that box is a revocable transfer on death (TOD) deed. As of January 1, 2016, California homeowners can keep their homes out of probate by recording a revocable transfer on death

to climb out of debt or where to start is

(TOD) deed. When AB 139 passed in 2015,

paralyzing. So, recognizing that you need

the state made the revocable transfer on

to take action is the first and hardest part.

death deeds legal in California, along with

Just know that there are free and low-cost

26 other states in the country. By recording

resources available to help you and that it is

a TOD deed, you can designate who your

never too early to start.

property passes on to upon death bypassing probate. The steps are straightforward:

Make some time to take stock of where you

complete a TOD form, notarize it and

are with your finances. Be honest about

record it with the County Recorder’s Office

tending your annual Family Wealth Forum.

your goals and problems and be prepared

where the property is located.

Why did you decide to develop this event?

to write it all down. It may be as simple as

What can attendees expect?

making a list of your financial questions or

Remember, you can revoke a TOD

putting down on paper what you hope to

deed at any time and when multiple

SFAM: We are looking forward to at-

Chu: I grew up with incredibly hard-

accomplish. Once you have a sense of the

TODs are recorded, the latest recording

working parents. As immigrants, they

questions you want answered, it begins to

takes precedence.

came to this country with few resources

narrow down the expertise and help you

and even fewer tools to navigate their new

need to move forward.

Note, it is very important to understand that a TOD is not a trust. It only applies to

environment. That is why doing more to provide access and information is so foun-

For example, I am often approached by

residential real property for transfer after

dational to my service as a public official.

seniors who want to pass on their proper-

death. Further, ownership interests are

Yet as I continued to meet families across

ties to their children to help secure their

distributed equally among all beneficiaries.

the city, many who were low-income and

future. Should they pass on the property

Please consider all your options, with the

monolingual, I saw a pattern emerge. The

now or pass it on upon death? Should

advice of professionals, before choosing

pattern was a gap in understanding our

they create a trust, file a Transfer on Death

the right tool for you and your loved ones.

complex taxation system, a lack of trusted

Deed or is a will enough? Unfortunately,

resources to take the first step in planning

the answer depends on each person’s

SFAM: Are there any programs

for their families and sometimes an ad-

goals, assets, relationships and circum-

that help families pass on their homes

ditional financial and language barrier to

stance. The best way to answer that ques-

to their children?

seeking help. Seeing these needs, I spear-

tion is to walk through the risks, benefits

headed the Bay Area’s first Family Wealth

and consequences of each action so that

Chu: There is a tax benefit program

Forum (FWF) in 2017. Since then, we have

the individual can make the best decision

called Parent-Child Transfer Exclu-

helped over 1,000 families gain access to

on how to move forward. That is why I feel

sion, also known as the Proposition 58

free counseling and information.

so strongly in the benefit of one-on-one

program. Proposition 58 was passed by

counseling services at our Family Wealth

California voters in 1986 to allow the

In a nutshell, the Family Wealth Forum

Forum. Each person’s story is unique and

serves as a one-stop shop for families with

so might be their answer.

MARCH 2020 | SF APARTMENT MAGAZINE

Down to Brass Tax… continued on page 56

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The ABCs OF PROP D written by

T E R R E NC E JO N E S

The pros and cons of the Retail Vacancy Tax. I found some compelling arguments on both sides of the Retail Vacancy Tax, the proposed measure that will tax retail landlords if their spaces are empty for more than 182 days. My initial feelings were strongly anti-tax, but as I researched the topic, the pros and cons got foggier and I was surprised by the polarization on this issue. For example, a November 22, 2019 SFist.com post seemed to be a slap in the face of our esteemed city leaders with allegations of onerous permitting requirements and red tape, but at the same time it also accused landlords of hoarding space. “Retail storefront vacancies are a new common blight across formerly thriving commercial corridors like the Castro and North Beach, with the empty-shop phenomenon spreading into Hayes Valley. City Hall red tape and onerous permitting requirements are not exactly helping matters, as a lengthy Eater SF report this week showed how the western neighborhood businesses face hurdles in opening new storefronts, too. But the allegation that landlords are hoarding space has been a suspicion of, say, anyone familiar with the astonishing 16-year vacancy of the Castro Hamburger Mary’s location (which did eventually open in spring 2018). We may never see such a long-term vacancy again, as the Examiner reports that Sup. Aaron Peskin’s proposed Storefront Vacancy Tax will be on the March 2020 ballot after unanimous Board of Supervisors approval Thursday. This was an 8-0 vote with three supervisors, including Peskin, already off for their Thanksgiving holiday. But the retail vacancy tax now goes before you, the voters.” And according to a November 14, 2019 article in the San Francisco Business Times, a well-known commercial agent Hans Hansson noted that vacancy indifference in the ownership community is not the problem. “. . . the actual number of vacancy-indifferent landlords is very small, and a majority of landowners with vacant spaces run into a multitude of other factors in trying to fill them up. Hansson said there were 340 vacant storefronts in the city at that time…Shifts in consumer shopping habits, the Bay Area's high cost of living and San Francisco's lengthy permitting

MARCH 2020 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | MARCH 2020

process have all served the pool of avail-

vacant storefronts, also called “dark spaces”

considered on a higher level than those of

able tenants has shrunk considerably in

in the commercial real estate business, cre-

the tax payers. She has a space that was a

recent years…The majority of building

ate places where tent encampments can

restaurant, and could be once again, but

owners, and certainly retail brokers like

build. Even worse, dark spaces are often

the cost would be about $300,000 with

myself, are all aggressively trying to fill

host to graffiti and fire danger from squat-

the code upgrades that are triggered by

these vacant spaces," Hansson wrote. "In

ters cooking with open fires.

re-building an eating establishment in her old historical building. She cannot afford to

almost all cases, the rent is not the stumbling block; it's the high cost of starting the

According to Maryo, the commercial retail

cover that cost and any potential restaurant

business, strict government regulations

environment is stacked against the small

tenants who have approached her cannot

and the risk of ultimate success."

merchant in San Francisco. Rents are high,

afford it either. She has a real fear that if

wages are high, there are too many small

she invests this amount, it could bankrupt

In talking with Maryo Mogannam, presi-

business taxes and fees, and (of course) the

her if the restaurant fails. It’s a big risk. If

dent of the San Francisco Council of Dis-

“Amazonization” of commerce has been

the city offered a program for owners to

trict Merchants Associations, he felt that

crushing. Another issue, and one of the

help finance these types of build-outs and

the tax could be good for existing small

biggest, is the city’s efforts to reduce cars

expedite the permits like they did in the

retailers who are punished by neighbor-

by getting more people to ride MUNI, but

earthquake retrofit programs, it might help.

ing vacant spaces, although he was not

MUNI is unreliable. If a passenger wants to

Plus, it would seem more like the partner-

initially in support of the tax. He has four

get off on the way home to shop at an NCD,

ship she has with the city with the housing

stores in San Francisco called The Postal

they don’t know if they will be able to get

she offers, but unfortunately, this is not part

Chase, which do packing, shipping, and al-

back on without a long wait. Maryo should

of the Retail Vacancy Tax proposal.

low people to receive packages, and he did

know, he worked for MUNI before his retail

not see how the initial proposed vacancy

career. It amazes him how we live in a first

I spoke to a representative of one owner

tax would benefit him. He gives Supervi-

world city and first world country, but the

who has had a 40,000 square foot build-

sor Aaron Peskin credit for re-crafting

public transit is more like third world.

ing in the downtown market that has been in redevelopment construction for at least

the proposed law to make it better before submitting it to the board to move it for-

I spoke to an owner who has a building

10 years. To the outside world it simply ap-

ward to the ballot. The new law will only

close to City Hall with retail space on the

pears vacant, but the city has made it hard

impact thirty Neighborhood Commercial

street level and rent controlled apartments

for the owner to fill the space. In fact, the

Districts (NCD) versus the entire city. He

above. Her first reaction to the Retail Va-

agent called the proposed tax “anti-land-

said, “Boarded-up, vacant retail spaces in a

cancy Tax was “why should there be a tax?

lord” and a “Trojan horse.” The owner will

district creates urban blight and decreases

Owners like to rent out their retail spaces

be imposed a punishing tax without any as-

the foot traffic for our members. If your

if they can.” Further, she said she views her

sistance in filling the space. And the Trojan

store is next to a vacant space, potential

apartments as “partnering” with the city.

horse has two heads. The first allows the

customers could just stop at the boarded

Her modestly priced rent controlled apart-

city to accumulate more data on an owner’s

up-store because their perception is that

ments are providing low-income housing

personal finances, which will allow politi-

the offerings end there. And consumers

to the city. She typically rents to people

cians to tax them even further. The second

are fickle. If it is not easy for them and they

who are not making $100,000 per year in

makes this a “gateway” tax, one that will

are not getting a vibrant shopping experi-

income, which she feels is a social good

ease the way for efforts to create a residen-

ence, they will hop into a car and drive to

that allows diversification in the city. Since

tial vacancy tax for owners who do not rent

Serramonte to spend their money.”

the city highly regulates residential housing

their vacant apartments fast enough.

through rent control, she considers the city In fact, Maryo’s association is supporting

to be her partner in providing low income

He did say there was some logic to the

the tax. Although it was a close vote of 9-5,

housing in San Francisco. “However, for

tax in that merchants are having a tough

the small business merchants felt it was

commercial spaces, you would think that

time operating with the homeless cri-

a good thing. Maryo was able to give me

the city would want to partner with me as

sis. That Safeway pooper was quite eye

some real color to the vacancy issue. For

well, but a vacancy tax is not a partnership.

opening for the real estate market and if

example, the West Portal district has had

What the city should be doing to get retail

more storefronts were filled, it’s likely the

significant trouble with the departure of

rented is make the streets nice and safe.”

homeless issue will be smaller in those areas. But instead of the tax, here are his

Walgreens, Radio Shack, and Waldenbooks. Those spaces have seen long vacancies that

The streets around her building are littered

have hurt the neighboring merchants. An-

with filth, homelessness, and drug use. She

other good example is in Noe Valley where

has been managing her building for 15

Real Food closed 10 or 15 years ago and

years and has never seen so many people

remained vacant for at least 10 years before

shooting up on the sidewalk. To her, it feels

Sephora finally occupied the space. These

like the rights of the homeless are being

MARCH 2020 | SF APARTMENT MAGAZINE

top three alternatives: • Temporarily lift the formula retail ban to allow chain stores. The ABCs of Prop D… continued on page 55

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sf.0219.rentals-in-sf.pdf

2/6/19

7:16 AM

Landlord & Leasing Agent, A Winning Combo. C

CMY

Having over 25 rental units of her own, Jackie brings first-hand experience as a landlord to all of our Rentals In S.F. clients. Every day, our team endeavors to find qualified tenants for our clients. With an expert understanding of the ever changing San Francisco rental market, we have made it our priority to fill your vacant unit quickly, effortlessly, at market rent and with your ideal tenant! With just one phone call, Jackie will come over to access your needs, appraise your unit, and do all the marketing, prospecting and screening. We then present you with a qualified tenant ready to move in. Call Jackie at Rentals In S.F. to fill your vacancy. It will be one of the best calls you’ll ever make. Just ask all our clients!

Former SFAA winner * Leasing Agent of the Year * Landlord of the Year SF APARTMENT MAGAZINE | MARCH 2020

COLUMN

MIGHTY SMALL

In the Legal Loop w r i t t e n b y K I L BY S T E N K A M P

With new laws potentially shifting our rental market, your property value depends on staying informed.

or another qualified local landlord attorney and find out what your options are. In the long run, the time and cost of an hour consultation are nothing compared to the potential in upside in income and/or property value.

n December 20, 2019

landlord-tenant attorney. Understand-

a new ordinance was

ing the nuances of the new laws and

signed off on by Mayor

what you can and can’t do is crucial.

During my travels, I’ve met a number

London Breed “thereby

Your property value depends on it.

of small property owners who don’t like to raise rent. They don’t want to

amending the Administrative Code to apply eviction controls to units that are

Many economists agree that rent con-

deal with vacancy, remodels, repairs,

exempt from rent increase limitations

trol actually doesn’t protect renters, but

confrontation, etc. With the new state

because they first received a certificate

instead has the opposite effect, driving

and local laws in place, this style of

of occupancy after June 13, 1979, or have

rents and values upward. These new

management is a thing of the past. AB

undergone a substantial rehabilitation;

laws are a Band-Aid approach to the

1482 caps annual rent increases at 5%

clarifying the law’s application to units

bigger issue. We need a comprehensive

plus the rate of inflation and requires

with pending notices to vacate; extend-

solution that will create new housing

landlords to show “just cause” to evict

ing the City’s current residential rental

units and a plan for the growing home-

a tenant who’s been in place over a

unit fee to these units; making non-sub-

less population.

year. It is imperative that you take your yearly rent increases and not hold out

stantive, technical changes; and making

situation like this, reach out to Ashley

findings as required by the Tenant Pro-

Ashley Klein at KDV Law is always a

for banked rent increases. Even if the

tection Act of 2019.”

wealth of information; she works with

Rent Board banked increases exceed

landlords and their array of issues on

5% plus inflation, you’re capped with

In other words, units that were formerly

a daily basis. She predicts that San

the new statewide law, which super-

exempt from the San Francisco Rent Or-

Francisco’s pre-1979 housing stock will

sedes local law.

dinance due to construction after 1979

likely go up in value, while post-1979

are now subject to eviction control. The

housing may soften in value. She was

Landlords who don’t raise rents of-

new ordinance was effective January

quick to point out that there are land-

ten do so to avoid tenant complaints

19, 2020. This new ordinance slipped in

lords out there with long-term tenants,

or they fear increased maintenance

during the holidays and does not appear

particularly with 2-4-unit properties,

requests. If you take the Rent Board’s

to have been on anyone’s radar, however

who cannot afford to maintain their

annual increase raise every year, it

many predicted this was coming.

property. Several years ago, I visited a

becomes habit and the tenants expect

4-unit property in Potrero Hill where

it. The annual allowable increase is

Being in the landlord business has

all the tenants had been there forty-

based on 60% of the increase in the

become more challenging than ever

plus years, and they weren’t going

Consumer Price Index for all urban

with the statewide AB 1482 ordinance

anywhere, at least for the next twenty

consumers in the Bay area. Theoreti-

(or the Tenant Protection Act of 2019),

years. The income was comparatively

cally, your costs to operate a property

which caps annual rent and requires

minimal, and the landlord couldn’t

go up and so does a tenant’s income.

just cause eviction. If there ever was

afford improvements, let alone a new

It’s great when tenants report mainte-

a time to become informed, it’s now.

roof. Rent control has limited the

nance issues—if something is broken, it

This is a game changer. Join local and

landlord’s ability to increase revenue,

needs to be fixed. Often, maintenance

statewide apartment associations, at-

and as a result the property has suf-

that goes unreported costs more to

tend classes, or consult with a qualified

fered all the way around. If you’re in a

fix in the long run. Be a pro-active

MARCH 2020 | SF APARTMENT MAGAZINE

Emotional Support Animal

sfaa’s

How to determine whether or not your tenant meets the qualification for emotional support animals (ESA) or service animals and the ADA requirements for having an emotional support animal or service animal. Ashley E. Klein of Kaufman Dolowich Voluck Attorneys at Law will teach this class. DATE & TIME:

Tuesday, April 30th 6:00 p.m. - 8:30 p.m. LOCATION:

Fort Mason Center Building C, Room 205 COSTS:

For questions, contact Maria Shea at 415-255-2288 ext 10, or maria@sfaa.org All cancellations must be made 72 hours prior to class to receive a full refund.

class

Members: $65 Non-Members: $85

Credit card payment required for Non-Members

sfaa’s

Nuisance Tenants Do you have tenants complaining about other tenants making too much noise? Is there a tenant that just doesn’t stop smoking in the building? Is there a unit that the tenant refuses to up keep? The class will be taught by attorney Scott Freedman of Zacks, Freedman & Patterson located in San Francisco. Scott focuses his practice on a variety of real estate matters, from those involving landlord/tenant, to non-disclosure and boundary line disputes, to those involving construction defects and homeowners’ associations. He also has significant litigation experience outside of real estate, regularly representing clients involved in business and partnership disputes. Although Scott is a firm believer in resolving appropriate cases through early mediation, he is experienced in all aspects of litigation and is comfortable taking the right case all the way through trial. DATE & TIME:

CONTACT:

Thursday, March 19, 2020 6:00 pm to 8:30 pm

Maria Shea at 415-255-2288 x10 or maria@sfaa.org.

LOCATION:

Fort Mason Center Building C, Room 205 COSTS:

Members: $65 Non-Members: $85

class SF APARTMENT MAGAZINE | MARCH 2020

landlord and get into your units yearly to

possible, and consult with a local landlord-

check smoke and CO2 detectors, which

attorney for advice.

also gives you the opportunity to look for

Passthroughs

PAY!

unreported maintenance issues. With the

I’m pleased to report that sales in the 2-4-

new laws and current rental market, it’s

unit sector show an increase in price per

unlikely that your tenants will move out

square foot over the same period year-

over a rent increase. If they do move out,

over-year. For the purpose of this article,

get in and make some simple cost-effec-

I ran a Multiple Listing report for the last

tive upgrades that will pay for themselves

six months in districts 1-10 for all 2-4-unit

with the new market rent. The value of a

sales, including mixed use. Then I com-

2-4-unit property is often determined by

pared those sales to the previous year with

• Soft Story/Voluntary Seismic

a gross rent multiplier (GRM), staying on

the same criteria. The average price per

top of rent increases and income should

square foot of 2-4-unit properties over the

• General Capital Improvements • Operating and Maintenance

be a priority.

last six months was approximately $715

and also

and the median sale was $900,000. In comMost of San Francisco’s 2-4-unit hous-

parison, last year, price per square foot

ing stock was built in the Victorian and

was approximately $700 and the median

Edwardian era. For the most part, these

sale was $560,000. The number of proper-

properties have the perfect qualities that

ties sold and days on market has remained

represent quintessential San Francisco.

about the same.

Take advantage of the Rent Board rules that benefit you.

We prepare petitions for

• Annual Increase letters • General and Water Bond Passthroughs We have 18 years of experience and have filed hundreds of successful passthroughs. Call us today at

415-333-8005

The Planning Department has been putting out a very detailed annual survey

It is difficult to predict the future for 2-4-

(since 1967) of local housing production

unit properties with the new state and lo-

trends. Lately, the trend has been toward

cal laws in place. Now that outlying areas

increasingly larger buildings, which makes

are rent controlled, will investors recon-

sense from a developer’s perspective. The

sider San Francisco? My colleague has

more units you build, the lower the cost

been investing in the East Bay for years be-

per door and the better the return.

cause of San Francisco rent control. He begrudgingly admits that with the new state

Per the Planning Department’s most

law, he now has a rent-controlled portfolio.

recent report, 2-4-unit construction com-

He is rethinking his investment strategy

prises a very small percentage of new

and wonders if others won’t do the same.

construction in the city. In addition, over

Our housing market relies heavily on sup-

the past 25 years, TIC conversions to con-

ply and demand. If there are fewer 2-4-unit

dos has further reduced the inventory of

properties available, will that drive values

2-4-unit properties. For the savvy buyer,

up? With high housing costs and low

2-4-unit properties are a bang for the

interest rates, our 2-4-unit market should

buck. On a quick Multiple Listing search

remain strong.

on sales from January 1 to January 31, I found single family homes and condos are selling around $1,000/square foot,

to find out how you can benefit.

SLP_SFApt_Ad_0813_Shwiff_SFaptAd_0813 8/19/13 3:

EXPERTISE

Even with the new local and statewide laws in place, if managed correctly, the potential for upside in a 2-4-unit property can be significant. As an owner-user a 2-4unit property can be an ideal investment. There are also opportunities for seasoned and entry level investors. As always, not all 2-4-unit properties are created equally; buyers need to make an informed decision before making a purchase. Thoroughly review disclosures, have inspections when

MARCH 2020 | SF APARTMENT MAGAZINE

Save the

date! Check out the SFAA’s calendar of classes & events on page 46.

INTEGRITY ■ SERVICE

■

VALUE

Shwiff, Levy & Polo, LLP Certified Public Accountants and Management Consultants

Kilby Stenkamp is a realtor at Vanguard Properties. She can be reached at kilby@vanguardsf. com or 415-370-7582.

EXPERIENCED, RESPONSIVE REAL ESTATE ADVISORS

while 2-4-unit properties are sold on average at $745/square foot.

■

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Hear Ye! Hear Ye! Don't miss the best Rental Housing Trade Show Thursday, March 26th! Join us at our Annual SFAA Trade Show! Meet new Vendors and Support your Industry! Free Classes: 1-5pm Trade Show Hours: 4-7pm Understanding AB 1482 This class covers the AB 1482 and the various provision that will impact residential landlords' rent setting and eviction practices.

1:00-2:00 PM Building C - Room 205

Updates by the Rent Board Updates on recent 2019 and 2020 changes affecting rent & eviction control in SF. Learn more about amendments made to Passthroughs and O&M Petitions.

3:00-4:00 PM Building C - Room 205

Landlord Etiquette

FREE

Owning rental property in SF can be challenging. Find out all the Do's and Don'ts of being a landlord in San Francisco.

2:00-3:00 PM Building C - Room 235

Conflict Intervention Services for Rental Housing

Introduction to SF Bar Association's innovative (and Free) CIS program. Skilled mediators work to resolve disputes in rental housing.

4:00-5:00 PM Building C - Room 235

41 Thursday, March 26th, 2020 ~ Fort Mason Center SF APARTMENT MAGAZINE | MARCH 2020

sfaa sfaa 2020 Member Meetings

SFAA general member meetings are held every third Monday of the month. If the third Monday is a holiday the meeting will be held the following week on the fourth Monday. Unless otherwise noted below, the member meetings are held at the:

Jewish Community Center, Kanbar Hall, 3200 California Street

Market View… continued from page 14

to upper three percent range. Forecasts for 2020 are predicting the first half of the year to continue where 2019 left off with a possible shift occurring in the second half of the year, especially as we get closer to the presidential election in November. The city and state government continue their backward approach to trying to control housing costs. The city government is more focused on extorting money from developers than allowing housing to be built. For some reason, the city just can’t get a handle on the supply and demand concept.

FREE LEGAL PANEL 6:00 P.M. - 6:30 P.M. MEMBER MEETINGS 6:30 P.M. - 8:00 P.M.

2020 SFAA MEMBER MEETING DATES & TOPICS March 26th, 2020

Annual Trade Show, Ft. Mason Gallery 308

*Submit legal questions for the legal panel via email to maria@sfaa.org.

The following are a few lowlights from a recent SFAA meeting I attended. As of January 20, all rental units (not common areas) must have heat 24 hours per day maintained at 70 degrees at three feet above floor level. The board of supervisors is trying to eliminate buyouts entirely (more on this later in the year). Coming later this year, all rental units will need to be registered with the city. Ruling/interpretations of the Ellis act have been fine-tuned so that a settlement no

Did you know you can sponsor our meeting and reach thousands of local rental property owners? Sponsorship includes: • • • • •

an opportunity to present your product or service at the member meeting; table display for networking before and after the meeting; advertisement printed on the meeting agenda; e-blast of marketing materials to thousands of SFAA members; and sponsorship announcement in e-newsletter prior to the meeting.

longer relieves the owner of the obligation to “go back” and offer the unit to a previous tenant. New York experienced a 35% to 40% decline in value as a result of vacancy control being imposed. All three attorneys at the SFAA meeting stated that the board of supervisors will continue to pursue vacancy control and made a strong argument that everyone in the room should support legislative efforts that favor no vacancy control. Dean Preston (supervisor, district 5) was quoted as stating that his goal is to have the city of San Francisco dictate the amount of rent that can be charged for any and every single rental unit in San Francisco. I am looking forward to another great year as an apartment owner and as a real estate agent specializing in the sale of apartment buildings.

San Francisco Apartment Association 265 IVY STREET | SAN FRANCISCO, CA | 94102 | PHONE 415-255-2288 | FAX 415-255-1112

MARCH 2020 | SF APARTMENT MAGAZINE

For additional information related to any data points and/or market news, please contact Jay Greenberg at jaygreenberg@ apr.com.

Legal Q&A… continued from page 16

So with these assumptions established, since the Tenant vacated and did not have her roommates vacate simultaneously, under SF County law, you may not ask the subtenants to vacate along with

TALENT. COLLABORATION. SUCCESS.

the Tenant: You may only increase the rent and establish a new tenancy. The Rent Increase is pursuant to the Costa Hawkins Rental Housing Act. You may increase the rent pursuant to a 60- day written notice if in an amount less than 10% of the vacating Tenant’s rent amount or with a 90-day notice if at an amount at or more than 10% of the vacating Tenant’s rent amount. It is advisable to obtain an Application from all subtenants. And while you “don’t have to” execute a new lease, I strongly advise that you do enter into a written rental agreement with the subtenants—as they are now your direct tenants—utilizing the SFAA form of lease. Note, however, that while you may not

KILBY STENKAMP

415.370.7582

kilby@vanguardsf.com DRE# 01208585

be able to terminate their occupancy based on legitimate concerns regard-

vanguardproperties.com

ing the application process, you may be able to terminate their occupancy due to their failure to execute a new lease and/ or (once the tenants sign the new SFAA lease form which you may impose with a Notice) due to a violation of the lease provisions in the SFAA form lease and as allowed by just cause requirements of the law. (Various facts/circumstances must exist to terminate a tenancy and hiring a lawyer is advised.) The laws are very complicated, especially with the new state law AB 1482 provisions in the mix of analysis. I highly advise you to work with any attorney familiar with the intricacies of the local and state law provisions to best protect your valuable asset. —Denise Leadbetter The information contained in this article is general in nature. Consult the advice of an attorney for any specific problem. Justin A. Goodman is with Zacks, Freedman & Patterson, P.C. and can be reached at 415-956-8100. Denise A. Leadbetter is with The Offices of Denise A. Leadbetter and can be reached at 415-572-5015.

SF APARTMENT MAGAZINE | MARCH 2020

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MARCH 2020 | SF APARTMENT MAGAZINE

WHB20.0625

Calling all Knights & Squires Hear Ye! Hear Ye! Sign up for our Annual Trade Show

THURSDAY MARCH 26TH, 2020 FORT MASON CENTER 4-7 PM

Knight Sponsor $1300 Squire Sponsor $850 Company listed on our promo flyer and SF Apartment Magazine Premium table Signage at the event Included in email blast to our full membership Link on our website

Company listed on our promo flyer Signage at the event

SF APARTMENT MAGAZINE | MARCH 2020

sfaa 2 2020calendar

sfaa

March

April

MONDAY, MARCH 2

WEDNESDAY, MARCH 11

MONDAY, APRIL 6

THURSDAY, APRIL 9

11:30 a.m.

Fort Mason Center

11:30 a.m.

Fort Mason Center

Board of Directors Mtg.

Section 8 Rent Increase Class 2A Marina Blvd, Bldg. C, RM#205

Board of Directors Mtg.

Tenant Lawsuits Class 2A Marina Blvd, Bldg. C, RM#205 6:00 p.m. to. 8:30 p.m.

6:00 p.m. to. 8:30 p.m.

Members $65 Non Members $85

THURSDAY, MARCH 12

MONDAY, APRIL 20

TUESDAY, APRIL 21

Fort Mason Center 2A Marina

Fort Mason Center

Jewish Community Center

Fort Mason Center

Mold and Fungi Awareness Blvd, Bldg. C, RM#205 9:00 am - 12:00pm

Members $100 Non Members $150

Airbnb Seminar

2A Marina Blvd, Bldg. C, RM#205 2:30 p.m. to. 5:00 p.m.

Members $65 Non Members $85

SFAA MEMBER MEETING

3200 California Street, Kanbar Hall 6:00 p.m. to 8:00 p.m.

Landlord 101 Part I

2A Marina Blvd, Bldg. C, RM#235 5:30 p.m. to. 8:00 p.m.

Members $75 Non Members $95

THURSDAY, MARCH 19

THURSDAY, MARCH 26

TUESDAY, APRIL 28

WEDNESDAY, APRIL 29

Fort Mason Center

Fort Mason Center, Building A

Fort Mason Center

Nuisance Tenants Class 2A Marina Blvd, Bldg. C, RM#205 6:00 p.m. to. 8:30 p.m.

Members $65 Non Members $85

SFAA Annual Trade Show 2A Marina Blvd

4:00 p.m. to 7:00 p.m.

Landlord 101 Part II

2A Marina Blvd, Bldg. C, RM#235 5:30 p.m. to. 8:00 p.m.

Members $75 Non Members $95

TUESDAY, MARCH 31

THURSDAY, APRIL 30

and Roommates

Fort Mason Center

Master Tenants, Subtenants Fort Mason Center

2A Marina Blvd, Bldg. C, RM#205 6:00 p.m. to. 8:30 p.m.

Members $65 Non Members $85

All About Ellis

2A Marina Blvd, Bldg. C, RM#205 2:00 p.m. to. 4:30 p.m.

Members $65 Non Members $85

Emotional Support Animals 2A Marina Blvd, Bldg. C, RM#205 6:00 p.m. to. 8:30 p.m.

Members $65 Non Members $85

SFAA ANNUAL TRADE SHOW THURSDAY, MARCH 26, 2020 FORT MASON CENTER BUILDING A 2A MARINA BOULEVARD FREE CLASSES: 1:00 PM TO 5:00 PM TRADE SHOW HOURS: 4:00 PM TO 7:00 PM

MARCH 2020 | SF APARTMENT MAGAZINE

join online at sfaa.org or call 415.255.2288

2020 join online at sfaa.org or call 415.255.2288

SAN FRANCISCO’S

RENT BOARD FEE

$25.00

Chapter 37A of San Francisco’s Administrative Code allows the city to collect a per-unit fee for each residential dwelling unit that is subject to the San Francisco Rent Ordinance. This fee defrays the entire cost of operation of the Rent Board. This fee is billed to the landlord each year on the property tax statement sent in November, but the law permits landlords to collect a portion of the Rent Board fee from those tenants in occupancy as of November 1 of each year. A landlord is allowed to collect 50% of the cost of the fee from the tenant. If you have not collected Rent Board fees in the past, you can collect back to 1999. ALLOWABLE RENT BOARD FEE COLLECTABLE FROM TENANTS 2019-2020

$25.00

2018-2019

$22.50

2017-2018

$22.50

2016-2017

$20.00

2015-2016

$18.50

SFAA’S

TENANT SCREENING SERVICE THROUGH INTELLIRENT STEP 1:

Create a free account at sfaa. myintellirent.com/agent-signup. STEP 2:

Invite an applicant to apply via an online application customized to SFAA’s criteria. You can also publish your available rental on Intellirent across mulitple ILSs. RATES

Intellirent is your free, online rental application and property marketing tool, partnered with Transunion to instantly return complete credit reports and nationwide eviction notices. Renters pay the $40 application fee, which covers your costs. For more information, simply create your free account or go to sfaa.org and choose the “Resources” tab. Then select “Tenant Screening.” Please note that the maximum you can charge a tenant for screening services is $49.12. CONTACT INTELLIRENT FOR MORE INFORMATION:

415-849-4400

CAPITAL IMPROVEMENTS

The capital improvement interest rates for 3/1/19 through 2/29/20 are listed below: AMORTIZATION

INT. RATE

MULTIPLIER

7 YEARS

2.8%

.01312

10 YEARS

2.9%

.00961

15 YEARS

3.0%

.00691

20 YEARS

3.0%

.00555

INTEREST ON DEPOSITS Deposits include all tenant monies that the owner holds, regardless of what they are called. At the landlord’s option, the payment may be made directly to the tenant or by allowing the tenant to deduct the amount of interest due from the rental payment. INTEREST ON DEPOSITS PERIOD

AMOUNT

03/01/19 - 02/29/20

2.2%

03/01/18 - 02/28/19

1.2%

03/01/17 - 02/28/18

0.6%

03/01/16 - 02/28/17

0.2%

2014-2015

$18.00

03/01/15 - 02/29/16

0.1%

2013-2014

$14.50

03/01/14 - 02/28/15

0.3%

2012-2013

$14.50

03/01/13 - 02/28/14

0.4%

2011-2012

$14.50

03/01/12 - 02/28/13

0.4%

2010-2011

$14.50

03/01/11 - 02/29/12

0.4%

2009-2010

$14.50

03/01/10 - 02/28/11

0.9%

2008-2009

$14.50

03/01/09 - 02/28/10

3.1%

2007-2008

$13.00

03/01/08 - 02/28/09

5.2%

03/01/07 - 02/29/08

5.2%

2006-2007

$11.00

03/01/06 - 02/28/07

3.7%

2005-2006

$10.00

2004-2005

$11.00

2003-2004

$21.50

2002-2003

$21.50

ALLOWABLE RENT INCREASES

2020 – 2021: 1.8%

Effective March 1, 2020, through February 28, 2021, the allowable annual rent increase is 1.6%. This amount is based on 60% of the increase in the Consumer Price Index for all urban consumers in the Bay Area. A history of all allowable increases and their effective periods is provided. ALLOWABLE RENT INCREASES PERIOD

AMOUNT

03/01/20 - 02/29/21

1.8%

03/01/19 - 02/29/20

2.6%

03/01/18 - 02/28/19

1.6%

03/01/17 - 02/28/18

2.2%

03/01/16 - 02/29/17

1.6%

03/01/15 - 02/29/16

1.9%

03/01/14 - 02/28/15

1.0%

03/01/13 - 02/28/14

1.9%

03/01/12 - 02/28/13

1.9%

03/01/11 - 02/29/12

0.5%

03/01/10 - 02/28/11

0.1%

03/01/09 - 02/28/10

2.2%

03/01/08 - 02/28/09

2.0%

03/01/07 - 02/29/08

1.5%

03/01/06 - 02/28/07

1.7%

SAN FRANCISCO RENT BOARD 25 Van Ness Avenue #320 San Francisco, CA 94102 415-252-4600 www.sfgov.org/rentboard

CONTACT THE SAN FRANCISCO RENT BOARD FOR MORE INFORMATION

415-252-4600 sfgov.org/rentboard

CONTACT THE SAN FRANCISCO RENT BOARD FOR MORE INFORMATION

415-252-4600

& information

sfgov.org/rentboard

SF APARTMENT MAGAZINE | MARCH 2020

sfaa professional

services directory 1031 TAX DEFERRED EXCHANGE SERVICES

FIRST AMERICAN EXCHANGE COMPANY 415-244-1339 www./firstexchange.com/ HERITAGE CAPITAL ADVISORS Eric Scaff 415-834-1031 www.heritagecap.com LAWYERS EQUITY EXCHANGE Brian Fogarty 415-701-1234 www.lex1031.com

ACCOUNTANTS

SHWIFF, LEVY & POLO LLP Elizabeth Shwiff 415-291-8600 x232 www.slpconsults.com

ALARM COMPANY

AEC ALARMS Michelle Rogers 408-298-8888 x123 www.aec-alarms.com/

ARCHITECTURE

OPENSCOPE STUDIO ARCHITECTS Mark Hogan 415-891-0954 www.openscopestudio.com Q ARCHITECTURE Dawn Ma www.que-arch.com

415-695-2700

ASSOCIATIONS

PROFESSIONAL PROPERTY MANAGEMENT ASSOCIATION J.J. Panzer www.ppmaofsf.org

ATTORNEYS

BORNSTEIN LAW Daniel Bornstein, Esq. www.bornstein.law CHONG LAW Dolores Chong DENNIS C. HYDE Dennis C. Hyde hydelaw@pacbell.net

415-490-9020

LAW OFFICE OF KEVIN P. GREENQUIST Kevin Greenquist 415-977-0444x234 www.ztalaw.com

FRIED & WILLIAMS LLP Clifford E. Fried www.friedwilliams.com

415-421-0100

LAW OFFICES OF KAREN Y. UCHIYAMA Karen Y. Uchiyama 415-563-9300 karen@uchlegal.com

GOLDFARB & LIPMAN LLP Erica Williams 510-836-6336 eorcharton@goldfarblipman.com goldfarblipman.com

MASTROMONACO REAL PROPERTY LAW GROUP Leonard Mastromonaco 415-354-2702 len@mastrolawgroup.com

HANSON BRIDGETT LLP Brett Gladstone www.hansonbridgett.com

415-995-5065

MATLIN & ASSOCIATES Shauna L. Matlin, Esq. 415-305-5637 www.sfevictionattorney.com

HERZIG & BERLESE Barbara Herzig bherzig@hbcondolaw.com

415-861-8800

MCLAUGHLIN SANCHEZ, LLP Michael McLaughlin 415-655-9753 www.msllp.law

JACOBSON LAW PC Isaac@jacobsonlawsf.com 415-421-0100 KAUFMAN, DOLOWICH, VOLUCK Ashley Klein 415-926-7612 aklein@kdvlaw.com LAW OFFICES OF FRANCISCO GUTIERREZ Francisco Gutierrez 415-805-6508 francisco@gtzlegal.com LAW OFFICE OF MICHAEL HEATH Michael Heath 415-931-4207 Mheath_law@sbcglobal.net THE LAW OFFICES OF KIMBALL, TIREY & ST. JOHN LLP Daniel Kimball 800-525-1690 www.kts-law.com LAW OFFICES OF DENISE A. LEADBETTER Denise Leadbetter 415-713-8680 www.leadbetterlaw.com

415-409-7611

LAW OFFICES OF SCOTT T. OKAMOTO Scott T. Okamoto 415-766-5871 www.scottokamotolaw.com

415-438-7807

LAW OFFICES OF DANIEL PICCININI Daniel Piccinini 415-345-8610 danielpiccinini@att.net

415-753-3811

DOWLING & MARQUEZ, LLP Jak S. Marquez 415-977-0444 x232 www.dowlingmarquez.com FRANK KIM ESQ., EVICTION ASSISTANCE Jo Biel 415-752-6070

FISHER & PHILLIPS, LLP Jason Gellar www.fisherphillips.com

MARCH 2020 | SF APARTMENT MAGAZINE

LAW OFFICES OF LAWRENCE M. SCANCARELLI Lawrence M. Scancarelli 415-398-1644 www.sfrealestatelaw.com THE LAW OFFICE OF ED SINGER Edward Singer 650-393-5862 www.edsinger.net

MILLAR AND ASSOCIATES, APLC James Millar 415-981-8100 x101 Millar-law.com NICHOLAS GOLDMAN LAW Nicholas Goldman 415-350-8740 nicholas@nicholasgoldmanlaw.com O’GRADY LAW GROUP John O’Grady john@ogradylaw.com www.ogradylaw.com

415-986-8500

REUBEN, JUNIUS & ROSE, LLP Kevin Rose 415-567-9000 www.reubenlaw.com TOUR-SARKISSIAN LAW OFFICES Christine Tour-Sarkissian 415-626-7744 www.tslo.com TRN LAW ASSOCIATES Tiffany Norman tiffany@trnlaw.com

415-823-4566

WASSERMAN-STERN David Wasserman 415-567-9600 www.wassermanstern.com WIEGEL LAW GROUP Andrew J. Wiegel www.wiegellawgroup.com

415-552-8230

ZACKS, FREEDMAN & PATTERSON, P.C. Andrew M. Zacks 415-956-8100 www.zfplaw.com ZANGHI TORRES ARSHAWSKY, LLP John P. Zanghi 415-977-0444 www.zatlaw.com

BEDBUG DETECTION

CROWN & SHIELD PEST SOLUTIONSPREMIER Aurora Vidaca 888-970-1927 aurora@crownandshieldpestsolutions.com www.crownandshieldpestsolutions.com SCENT TEK Brent & Kevin Youngblood 415-933-0879 www.scent-tek.com

CLEANING SERVICES MARVEL MAIDS Sherri Jessen www.marvelmaids.com

415-546-8000

OPTIMUS BUILDING SERVICES Claudia Giraldo 650-290-4607 optimusbuildingservices.com PUMA POWER WASH Tiger Guy 415-825-2559 info@pumapowerwash.com www.pumapowerwash.com

CONSTRUCTION

CURRENT CONSTRUCTION David Breslin 415-969-6915 office@currentcon.com www.currentconstruction.com

CONSULTANTS: PERMITS & PLANNING

CENTER FOR SUSTAINABLE ENERGY Sarah Bliss 858-633-8099 sarah.bliss@energycenter.org EDRINGTON AND ASSOCIATES Steven Edrington 510-749-4880 steve@edringtonandassociates.com

CONTRACTORS

AGUILEAR CONSTRUCTION COMPANY Javier Aguilear 707-495-3932 javier@aguileraco.com

CORPORATE RENTALS AMSI Robb Fleischer www.amsires.com

415-447-2020

CREDIT REPORTING

INTELLIRENT Cassandra Joachim www.myintellirent.com

415-849-4400

ENERGY SERVICES / GAS & ELECTRIC

PACIFIC GAS & ELECTRIC COMPANY Sebastian Conn 415-972-5201 www.pge.com

ENVIRONMENTAL CONSULTING

A-1 CERTIFIED ENVIORNMENTAL TESTING/DUCT CLEANING Carl Gibbons 888-217-2719 chelseap60@hotmail.com a-1certifiedenvironmentalservices.com

P.W. STEPHENS ENVIRONMENTAL Sheri Buenz 510-651-9506 sherib@pwsei.com

FIRE ESCAPE INSPECTION & MAINTENANCE ESCAPE ARTISTS Jabal Engelhard www.sfescapeartists.com

415-279-6113

GREAT ESCAPE FIRE ESCAPE SERVICE, INC. Rich Henderson 415-566-1479 www.greatescapeinc.com

FIRE PROTECTION CONTRACTORS

BATTALION ONE FIRE PROTECTION Tim Morse 510-653-8075 www.battaliononefire.com COMMERCIAL FIRE PROTECTION, INC. Laine Sims 925-300-9534 www.fireprotected.com MAZZY’S FIRE PROTECTION Scott Mazzarella 415-665-5553 www.mazzysfire.com

FURNITURE RENTALS

BROOKFIELD FURNITURE-NORCAL Mary Baird 408-720-1252 www.bfr.com

GARBAGE COLLECTION SERVICES

RECOLOGY GOLDEN GATE RECYCLING Minna Tao 415-575-2423 recologysf.com RECOLOGY SUNSET SCAVENGER Dan Negron 415-330-2911 recologysf.com

HARDWARE GRAINGER Mark D. Sheddon

800-472-4643

INSURANCE COMPANIES

ARM MULTI INSURANCE SERVICES Lisa Isom 866-913-6293 www.arm-i.com BARBARY INSURANCE BROKERAGE Gerald Becerra 415-788-4700 www.barbaryinsurance.com

INTERNET SERVICES PROVIDERS

COMCAST/XFINITY Michael Juliano www.xfinity.com

925-495-9922

LAUNDRY EQUIPMENT

EXCALIBUR LAUNDRIES Richard Lisowski 415-884-2238 www.excaliburlaundries.com WASH MULTIFAMILY LAUNDRY SYSTEMS Cathy Barsotti 650-340-8054 www.weblaundry.com

LENDING / FINANCIAL SERVICES

COUNTERPOINTE SRE David Snow 855-431-4000 www.counterpointeSRE.com FIRST FOUNDATION BANK Michelle Li www.ff-inc.com

415-794-2176

LENDING / FULL SERVICE BANKS

LUTHER BURBANK SAVINGS Gabriel Basso 510-601-2400 www.lutherburbanksavings.com

LENDING / INSTITUTIONS

CHASE APARTMENT LENDING Andre C. Ferrigno 415-644-2171 CHASE COMMERCIAL TERM LENDING Sharon Groenendyk 415-315-8464 www.chase.com/commercialbanking CHASE COMMERCIAL LENDING Ingrid Marlow 650-737-6212

LOCKSMITHS

CROWN LOCK & HARDWARE Joe Schoepp 415-221-9086 WARMAN SECURITY Peter Badertscher www.warmansecurity.com

415-775-8513

MAINTENANCE REPAIR SERVICE

CITY REPAIR SERVICES Fernando Fonesca 415-602-6524 contact@citycarerepair.com

BIDDLE-SHAW INSURANCE SERVICES, INC Greg Holl 415-586-7200 www.biddleshaw.com

MAVEN MAINTENANCE, INC. Craig Lipton 415-829-2207 www.mavenmaintenance.com

COMMERCIAL COVERAGE INSURANCE AGENCY Paul Tradelius 415-436-9800 www.comcov.com

ONE STOP MAINTENANCE & PROPERTY SERVICES Lupe Villaloblos 408-829-0727 www.sf1stop.com

GORDON ASSOCIATES INSURANCE SERVICES Dave Gordon, CLU 650-654-5555x6972 David.gordon@gordoninsurance.com

WEST COAST PROPERTY MANAGEMENT Joseph Keng 415-885-6970 www.wcpm.com

OPTIMUM INSPECTION Elad Gal 510-590-1758 info@optimummoldinspection.com

SF APARTMENT MAGAZINE | MARCH 2020

MEDIATION

THE BAR ASSOCIATION OF SAN FRANCISCO CONFLICT INTERVENTION SERVICE Matthew Tom 415-782-8940 mtom@sfbar.org

MORTGAGE BROKER THE RINCON GROUP Casey Wright

415-622-7450

ONLINE PAYMENT SERVICES IMANAGERENT Hatef Moghimi www.imanagerent.com

916-547-0049

ORGANIC WASTE SOLUTIONS

ECOSAFE ZERO WASTE, INC. Daniel Redick 310-569-0624 ecosafezerowaste.com Daniel@EcoSafeZeroWaste.com

PAINTING CONTRACTORS KRUITPAINTING, INC. Pieter Kruit www.kruitpainting.com

415-254-7818

MODAMAS INC. Gabriela Laz www.modamas.com

415-552-6567

PAC WEST PAINTING INC. Brian Beaulieu 415-457-0724 www.pacwestpaintinginc.com

PETERS PAINTING SERVICES Peter Pantazelos 415-647-4722 www.peterspainting.com TARA PRO PAINTING INC. Brian Layden www.tarapropainting.com

415-334-3277

PAINTING SUPPLIES SHERWIN-WILLIAMS Khuat Hoang Sw7276362@Sherwin.com

415-576-1043

PEST CONTROL

ATCO PEST & TERMITE CONTROL & HOME RESTORATION Richard Estrada 415-898-2282 www.atcopestcontrol.com

property management

CROWN & SHIELD PEST SOLUTIONS-PREMIER Aurora Vidaca 888-970-1927 aurora@crownandshieldpestsolutions.com

The following members are SFAA Property Management Members. They fully support the organization and are dedicated to SFAA’s goals. For more information about the benefits of becoming a Property Management Member, contact Maria Shea at maria@sfaa.org or 415-255-2288 x 10.

URGENT ROOTER AND PLUMBING INC. Albert Lee 415-387-8163 urgentrtr@sbcglobal.net

ADVENT PROPERTIES, INC. Benjamin Scott, CCRM 510-289-1184 www.adventpropertiesinc.com

PONTAR REAL ESTATE Merri Pontar 415-421-2877 www.pontarrealestate.com

AMERICAN MARKETING SYSTEMS INC. Robb Fleischer 415-447-2020 www.amsires.com

PROGRESSIVE PROPERTY GROUP Dace Dislere & Joe Gillach 415-515-4329

BERENDT PROPERTIES Craig Berendt 415-608-3050 www.berendtproperties.com CITYWIDE PROPERTY MANAGEMENT Carol Cosgrove 415-552-7300 www.citywidesf.com DEWOLF William Talmage www.dewolfsf.com

415-221-2032

GAETANI REAL ESTATE Paul Gaetani 415-668-1202 www.gaetanirealestate.com GREENTREE PROPERTY MANAGEMENT Mike McCamish 415-828-8757 www.greentreepmco.com J. WAVRO PROPERTY MANAGEMENT James Wavro 415-509-3456 LINGSCH REALTY Natalie M. Drees www.lingschrealty.com

415-648-1516

PROPERTY FORCE, INC. John M. Way

REAL MANAGEMENT COMPANY J.J. Panzer 415-821-3167 www.RMCsf.com

C.R. REICHEL ENGINEERING CO. INC. Tim Lordier 415-431-7100 www.crreichel.com R & L PLUMBING Larry Bustillos 415- 651-4977 larry@rl.plumbing www.rlplumbingsanfrancisco.com

PRIVATE INVESTIGATOR

WEN ANDASSOCIATES, INC. Hai Hua Wen 650-863-7925 www.sfpiwa.com

PROPERTY MANAGEMENT

ADVENT PROPERTIES, INC. Benjamin Scott, CCRM 510-289-1184 www.adventpropertiesinc.com ALEXANDERSON PROPERTIES Eric Alexanderson 415-285-3737 www.alexandersonproperties.com

RE/MAX UP REAL ESTATE Thomas Nguyen www.uprealproperty.com

415-799-3728

AMORE REAL ESTATE, INC Jerry Hsieh 415-567-4800 www.amoresf.com

S&L REALTY Robert Link www.slrealty-sf.com

415-386-3111

BORN PROPERTY MANAGEMENT Jason Born 650-271-7048 x 111 Jason@bornpm.com

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com WEST & PRASZKER REALTORS Michael Klestoff 415-661-5300 www.wprealtors.com WEST COAST PROPERTY MANAGEMENT Eric Andresen 415-885-6970 www.wcpm.com

members MARCH 2020 | SF APARTMENT MAGAZINE

415-589-3945

PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen 415-661-3860 www.propertymanagementsystems.net

PLUMBING SERVICES

BROOKFIELD PROPERTY GROUPPRESIDIO LANDMARK Jon King 855-327-5376 jon.king@brookfieldproperties.com CHANDLER PROPERTIES Carolyn Chandler 415-921-5733 www.chandlerproperties.com CITYWIDE PROPERTY MANAGEMENT Carol Cosgrove 415-552-7300 www.citywidesf.com DEWOLF REALTY CO. INC. William A. Talmage www.dewolfsf.com

415-221-2032

DJA PROPERTIES Brian James brian@djaproperties.com www.djaproperties.com

ROCKWELL PROPERTIES Mark Kaplan 415-398-2400 propertymanagement@rockwellproperties.com

ALAIN PINEL INVESTMENT GROUP Mirella Webb 415-814-6699 mwebb@apr.com BAY AREA PREMIER PROPERTIES Peter Fisler 415-606-6621 www.bayareapremierproperties.com

EBALDC Felicia Scruggs FScruggs@ebaldc.org

510-287-5353

SC PROPERTY MANAGEMENT Robert Guglielmi 650-342-3030 bob.guglielmi@scpropsm.com

EQUITY ONE Brenda M. Obra www.equity1sf.com

415-441-1200

SHARVEST PROPERTY MANAGEMENT, LLC Timothy D. Gilmartin 650-347-2020 tim@thegilmartins.com

BIG TREE PROPERTIES Evan Matteo 415-305-4931 evan@bigtreeproperties.com

GAETANI REAL ESTATE Paul Gaetani www.gaetanireality.com

415-668-1202

SIERRA PROPERTY PROFESSIONALS Sonali Herrera sierrappinc@gmail.com

COLDWELL BANKER COMMERCIAL NRT Steven Caravelli 415-229-1367 steven.caravelli@cbnorcal.com

SKYLINE PMG, INC. Nicholas Bowers 415-968-9903 Nicholas@skylinepmg.com

COLLIERS INTERNATIONAL-JAMIE KENDALL Jamie Kendall 415-788-3100 jamie.kendall@colliers.com

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com

COLLIERS INTERNATIONAL- JAMES DEVINCENTI James Devincenti 415-288-7848 www.THEDLTEAM.com

GEORGE GOODWIN REALTY, INC. Chris Galassi 415-681-1265 www.goodwin-realty.com GREENTREE PROPERTY MANAGEMENT Mike McCamish 415-828-8757 www.greentreepmco.com HANFORD•FREUND & CO. J. Timothy Falvey www.hanfordfreund.com

415-981-5780

SUTRO PROPERTY MANAGEMENT, INC. Salman Shariat 415-341-8774 www.SutroProperties.com

HOGAN & VEST INC. Simon Wong simon@wongsf.com

415-237-6240

THRIVE PROPERTY MANAGEMENT, INC. Giovani Franco 650-296-3880 www.thrivecommunities.com/

INCOME PROPERTY SPECIALISTS Clayton Llewellyn 408-446-0848 www.ipsmanagement.cc JD MANAGEMENT GROUP, INC. Jonathan Davis 510-387-7792 jonathan.davis@jdmginc.com LINGSCH REALTY Natalie M. Dress www.lingschrealty.com

415-648-1516

MERIDIAN MANAGEMENT GROUP Randall Chapman 415-434-9700 www.mmgprop.com MYND MANAGEMENT, INC. Stacy Winship 510-306-4440 www.mynd.co NEW GENERATION INVESTMENTS Jonathan Ng 415-735-8233 jtng.ngi@gmail.com PACIFIC UNION INTERNATIONAL PROPERTY MANAGEMENT Susan Lucas 415-722-4724 www.pacunionpm.com PONTAR REAL ESTATE Merri Pontar 415-421-2877 www.pontarrealestate.com PROGRESSIVE PROPERTY GROUP Dace Dislere 415-794-9727 www.progressivesf.com PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen, Broker, CCRM, MPM®, RMP® 415-661-3860 www.propertymanagementsystems.net RAMSEY PROPERTIES Brian E. Ramsey 415-474-5175 Brian@RamseyPropertiesSF.com REAL MANAGEMENT COMPANY J.J. Panzer 415-821-3167 www.RMCsf.com ROCKAWAY RESIDENTIAL MANAGEMENT KristineAbbey 650-290-3084 kristine@rockawayresidential.com

WEST COAST PROPERTY MANAGEMENT Eric Andresen 415-885-6970 www.wcpm.com WEST & PRASZKER REALTORS Michael Klestoff 415-699-3266 www.wprealtors.com

PROPERTY MANAGEMENT SOFTWARE DROPLIT, INC. Stephen Westerfield stephen@droplit.io

212- 235-7877

MANAGE CASA INC. Debe Koch 415-886-3535 accounting@managecasa.com PROPER David Berens david@proper.chat

415-528-7211

STESSA Victor Perez www.stessa.com

626-524-4931

YARDI Kelly Krier kelly.krier@yardi.com

805-699-2040

REAL ESTATE APPRAISALS HARPER & ASSOCIATES Jay Harper JHARPSF@att.net

415-674-9243

MARK WATTS COMMERCIAL APPRAISAL Mark Watts 415-990-0025 www.markwattscommercialappraisal.com

REAL ESTATE BROKERS & AGENTS

ALAIN PINEL INVESTMENT GROUP Mark Bonn 415-614-4354 mbonn@apr.com ALAIN PINEL INVESTMENT GROUP Jay Greenberg 415-593-8615 www.aprinvestmentgroup.com

COLLIERS INTERNATIONAL Brian Leung 415-288-7881 www.brian-leung.com COLLIERS INTERNATIONAL Payam Nejad 415-288-7872 www.colliers.com/payam.nejad COMPASS COMMERCIAL BROKERAGE Adam Filly 415-516-9843 adam@adamfilly.com COMPASS COMMERCIAL BROKERAGE Chris J. Connor chris.oconnor@compass.com FERRIGNO REAL ESTATE Chris Ferrigno 415-641-0661 www.ferrignorealestate.com KILBY STENKAMP-VANGUARD PROPERTIES Kilby Stenkamp 415-370-7582 LESLIE BURNLEY Leslie Burnley leslie.j.burnley@gmail.com leslieburnley.com

415-717-8709

MARCUS & MILLICHAP David Nelson 415-312-2245 dnelson@MarcusMillichap.com MARCUS & MILLICHAP Sanford Skeie 415-625-2153 www.marcusmillichap.com NEWMARK KNIGHT FRANK Matthew C. Sheridan 415-273-2179 aptgroupsf.com PACIFIC UNION COMMERCIAL Stephen Pugh spugh@pacunion.com S&L REALTY Robert Link www.slrealty-sf.com

415-386-3111

SHAMROCK REAL ESTATE COMPANY Trent Moore 415-359-2400 www.shamrocksf.com STEELE PROPERTIES Ryan Steele 415-881-7762 www.steeleproperties.com TOUCHSTONE COMMERCIAL PARTNERS Matthew Gorman 415- 539-1118 mattgorman@tcpre.com

SF APARTMENT MAGAZINE | MARCH 2020

sfaa sfaa 2020 membership application

Thank you for joining the San Francisco Apartment Association. SFAA is dedicated to educating, advocating for and supporting the Rental Housing Community so that its members operate ethically, fairly and profitably. Please consult a tax preparer in advance to determine deductibility for your tax situation. Membership fees are subject to change. MEMBERSHIP LEVEL & COST

Base Fee

Units Fee

1-50

$385 +

$6.45 per unit =

51-250

$475 +

$6.45 per unit =

251-500

$675 +

$6.45 per unit =

501-1,000

$875 +

$6.45 per unit =

1,001

$1,375 +

$6.45 per unit =

TOTAL UNIT AMOUNT:

Unit Fee

1-50

$485 +

$3.95 per unit =

51-250

$575 +

$3.95 per unit =

251-500

$775 +

$3.95 per unit =

501-1,000

$975 +

$3.95 per unit =

1,001

$1,475 +

MIRACLE METHOD OF SAN FRANCISCO Claire Gray 415-673-4211 www.miraclemethod.com

RENT BOARD PETITIONS

PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen 415-661-3860 www.propertymanagementsystems.net REAL MANAGEMENT COMPANY Melinda Greene 415-230-8895 www.RMCsf.com

TOTAL AMOUNT:

RENT BOARD PASSTHROUGHS Kim Boyd Bermingham 415-333-8005 www.rentboardpass.com

ASSOCIATE MEMBER DUES: $495 CONTACT INFORMATION

RENTAL LISTING SERVICES

Contact Person

AIRBNB Lorie McBrien lorie.mcbrien@airbnb.com www.airbnb.com

Company/Title Address City

State

Zip

Website

RESIDENTIAL LEASING

PAYMENT METHOD Check

Amex

Visa

3 Digit Security Code

Card #

Expiration Date

Cardholder Name

Billing Zip Code

Authorized Signature

Date HOW DID YOU HEAR ABOUT US?

Referral From

Postcard/Mailer

Magazine

Website

Rent Board

Other

San Francisco Apartment Association 265 IVY STREET | SAN FRANCISCO, CA | 94102 | PHONE 415-255-2288 | FAX 415-255-1112

MARCH 2020 | SF APARTMENT MAGAZINE

949-422-7166

APARTMENT LIST Alex Mashburn 678-467-0411 amashburn@apartmentlist.com

Mobile Phone Email Address

REAL ESTATE INVESTMENTS

REFINISHING / RESURFACING SERVICE

$3.95 per unit =

TOTAL UNIT AMOUNT:

ZEPHYR REAL ESTATE Dawn Cusulos 415-678-8854 dawncusulos@zephyrre.com

URBAN GROUP REAL ESTATE Louis Cornejo 415-863-1775 louis@urbangroupsf.com

TOTAL AMOUNT:

Base Fee

ZEPHYR COMMERCIAL Terrence Jones 415-786-2216 terrence@terrencejonesSF.com www.terrencejones.com

MARCUS MILLICHAP Clinton C. Textor III 415-425-9123 www.marcusmillichap.com

MANAGEMENT COMPANY DUES Units

WEST & PRASZKER REALTORS Michael Klestoff 415-312-2245 klestoffmre@aol.com

ALAIN PINEL INVESTMENT GROUP Trigg Splenda 415-593-8616

REGULAR MEMBER DUES Units

VANGUARD COMMERCIAL BROKERAGE Allison Chapleau 415-516-0648 www.allisonchapleau.com

BERENDT PROPERTIES Craig Berendt 415-608-3050 www.berendtproperties.com GAVIN COOMBS COMPANIES INC. Gavin Coombs 415-509-4782 www.rentalradar.com J. WAVRO ASSOCIATES James Wavro www.jwavro.com

415-509-3456

HAMILTON FAMILY CENTER Mayo Lunt 510-763-8540 x230 www.hamiltonfamiles.org LINGSCH REALTY Natalie M. Drees www.lingschrealty.com

415-648-1516

RELISTO Eric Baird www.relisto.com

415-236-6116

RENTINGSF David Chesnosky dcrentsf@gmail.com

415-218-3700

RENTSFNOW Kathy Claussen kclaussen@veritasinv.com

415-762-0213

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com

CONTRACTOR OR VENDOR?

Shwiff, Levy & Polo, LLP 562-712-7504

MARINA SECURITY SERVICES, INC. Sam Tadesse 415-722-1168 stadesse@marinasecurities.com www.marinasecurities.com

SEISMIC MANUFACTURER QUAKE BRACING, LLC Thor Matteson info@quakebracing.com

ACCOUNTANTS & TAX PREPARATION

SECURITY

ADT-MULTI FAMILY Jeanette Mendez jjmendez@adt.com www.adt.com/smart-

ad index NEED A PROFESSIONAL

510-495-1575

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PROPERTY MANAGEMENT & MAINTENANCE & RESIDENTIAL LEASING

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SF APARTMENT MAGAZINE | MARCH 2020

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Please note that acceptance of associate membership does not necessarily constitute any endorsement or recommendation, express or implied, of the associate member or any goods or services offered.

Legal Questions

Get Answers. Confused about local and statewide rental housing laws? Take advantage of SFAA’s legal information network. Before every SFAA General Membership Meeting, a diverse panel of San Francisco landlord attorneys answers your questions about your property, your tenants and the San Francisco Rent Ordinance. SFAA monthly meetings and legal panels are a benefit just for members, so make sure you are getting the most out of your membership and be sure to attend the next meeting.

The ABCs of Prop D… continued from page 34

• Ease the ADA and code requirements on older historical buildings that are trying to lease their retail space. • Start a city task force to help merchants manage the homeless people. I spoke to the agent who represents the space at 222 Sutter between Union Square and the Financial District, once home to Loehmann’s. This store occupied a very large ground floor space with a large mezzanine on an upper floor. The space has been on the market for quite a while and they are looking for an upscale retailer to lease the space, which would help hold the value of the building. The owner has con-

five

ways to connect

sidered converting the mezzanine to office use, which could help, but the city wants it to remain retail. If the owner goes down market to bring in a deep discounter like Ross or TJ Maxx, who sign low-cost 20-year leases, when the retail market rebounds, the owner would be stuck with a long-term lease at the lower rent that discounters usually pay. If the owner wanted to sell the building, the value would be based on the rents at the time of the sale. So, in this case, the economics of holding the property back and keeping it empty to maintain the higher market value makes sense, up to a certain point. But, if there is a vacancy tax on top of that, the length of time an owner can afford to hold off meeting the market

SFAA will always be available by phone, email and in

person, but now you can connect with SFAA online, too. Follow the happenings of your fellow SFAA members and find out the latest in the industry by connecting with SFAA

on Facebook. Search San Francisco Apartment Association and “Like” it to add it to your news feed. Follow SFAA on

Twitter at www.twitter.com/SFAptAssoc.

will be reduced. After weighing all these examples, I think I am leaning toward voting against the tax, but the thing to remember is that this vote needs a two-thirds supermajority to pass. What will matter is what both sides will do to sway the voters leading up to the March vote and who votes. Please get out and vote. Even if the result is not what you want, you will have legitimacy to complain. Terrence Jones is a Senior Broker Associate at Zephyr Commercial and specializes in the marketing and sale of investment properties. His business specialty is San Francisco rent-controlled apartments. He has extensive experience with sale of properties and 1031 exchanges purchases. He can be contacted at 415-786-2216 or by email at terence@TerrenceJonesSF.com.

sfaa."connect"filler.indd 1

2/18/11 2020 10:59 55 AM SF APARTMENT MAGAZINE | MARCH

Down to Brass Tax… continued from page 30

property transferred between parents and children to avoid reassessment if certain conditions are met. Remember, property tax in California is governed by State law Proposition 13 (1978). Under Proposition 13, the taxable value of a property may only increase by a maximum of 2% per year regardless of

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its market value growth. The exception is when there is a change in ownership or new construction activities, in which case all or a portion of the property would be reassessed to current market value. The way Proposition 58 works is that the change in ownership to your child may be excluded from reassessment allowing you to pass on your lower taxable value to your child. A similar program called Proposition 193 exists, which provides tax

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exclusion for property transferring from grandparents to grandchildren when a child has predeceased the parent. Remember, Proposition 58 and 193 deal specifically with property tax only. Other federal, state or local taxes may apply. You can

Acquisitions & Sales • Commercial & Residential Leasing

learn more by visiting https://sfassessor. org/news-information/fact-sheets

SFAM: What other property tax savings ●

tips should we be aware of?

Commercial Leasing

Chu: For New Homeowners—The ●

Homeowner’s Exemption reduces your

Residential Leasing

property taxes by deducting up to $7,000 from your assessed value. In other words,

●

you may save $70-80 dollars in property tax

Property Acquisitions

annually. Remember, the tax benefit rolls over automatically every year until you are no longer eligible.

●

Property Sales

Everest Mwamba, Realtor® BRE #01717299 (415) 377-2177 cell everest@everestmwamba.com

For Seniors—Proposition 60 (1986) may allow owners who are 55 years old or older to transfer the assessed value of their existing home to their new home if both properties are located in the same county and the new property’s value meets certain criteria.

BRE #01984640

MARCH 2020 | SF APARTMENT MAGAZINE

1569 Leavenworth Street San Francisco, CA 94109 Corporate BRE #01984640 (415) 929-0717 office everestmwamba.com

For Owners with Completed Construction—If you just completed a construction project and it includes seismic retrofit, you may want to review the seismic

construction exclusion program. The program ensures that your seismic retrofit work is not assessed and added to your

License No. 797467

tax bill. Just remember to work with your

www.wcpc-inc.com Tel: (510) 271-0950

contractor or engineers to keep clear records of the work and costs of the retrofit

Seismic & General Contractors

work and to submit a completed exclusion form to our office within 30 days of completing the construction. Carmen Chu is the Assessor for the City and County of San Francisco.

Know Your

numbers Turn to page 47 for updated information on allowable rent increases, security deposit interest and more.

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BETTER BY DESIGN info

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JUST SOLD: 415 BUCHANAN ST - $11,650,000

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