May 2020 SF Apartment Magazine by sfaa1917

SF APARTMENT magazine

Plus: Q&A WITH SUPERVISOR MANDELMAN (p.22)

COVID-19

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Executive Vice President/Multifamily Investments

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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.

TRIGG SPLENDA SENIOR SALES ASSOCIATE COMPASS COMMERCIAL

415.308.6560 TRIGG@TRIGGSPLENDA.COM LICENSE: 01484698

SF APA magazine

SF APARTMENT

contents

Features 22

Rooms for More by PAM MCELROY

30 ADU TO-DO’S by MARK HOGAN

20 4

MAY 2020 | SF APARTMENT MAGAZINE

PARTM Columns

Membership

The News

Legal Q&A

Crystal Clear on COVID-19

Coronavirus Crackdown by VARIOUS AUTHORS

12 Sheridan Report

The Devil’s in the Details

Court Talk

by MATTHEW C. SHERIDAN

Just Adjustments by CLIFFORD FRIED

Calendar

48 Professional Services Directory

52 Membership Application

SF APARTMENT MAGAZINE | MAY 2020

ANYONE CAN MANAGE YOUR PROPERTY. WE’D RATHER PROTECT YOUR INVESTMENT. Berendt Properties is a team of experts—in leasing, maintenance, and city property regulations. So when you choose us, you get people who understand the priority: your bottom line. BERENDT PROPERTIES

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MAY 2020 | SF APARTMENT MAGAZINE

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berendtproperties.com

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 5 MAY 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 | MAY 2020

COLUMN

THE NEWS

and work with residents who face COVID-19 related hardships. The guidelines called upon every California rental housing provider to do the following through May 31, 2020: • Freeze rents on all residents and pledge to not issue any rent increases. • Halt evictions on renters affected by COVID-19, absent extraordinary

Crystal Clear on COVID-19

The CAA and SFAA roadmap for operating rental properties during the COVID-19 pandemic.

circumstances. • Waive late fees for residents who pay rent after the rent due date because they have been affected by the COVID-19 pandemic and related government actions.

Editor’s Note: State and Federal guide-

they, in turn, would be unable to pay

lines and legislation are constantly

their own bills, from their mortgages

residents who cannot pay rent by

changing regarding the Coronavirus

and utilities to their maintenance and

the due date.

and the shelter-in-place order. For the

gardening staff.

• Offer flexible payment plans for

• Direct renters to available resources

most up-to-date information, guidelines and resources—including the

The California Apartment Associa-

to assist with food, health and finan-

eviction moratorium, rent forbear-

tion’s public affairs and compliance

cial assistance.

ance agreement, free webinars and

teams responded by working around

FAQs—visit sfaa.org or www.caanet.

the clock, from their living rooms and

org/coronavirus.

home offices, to answer the many

tively that you are available to assist

questions flooding the association’s

them and want to work with them to

phone lines and email boxes.

ensure they remain housed.

It was the middle of March 2020, and the

• Communicate with residents proac-

bad news just kept coming. The stock market had crashed, rallied, and crashed

Below, you’ll find some of the informa-

Talking About Rental Payments

again, deeper in the red. Businesses had

tion CAA provided to the industry as

As April 1 approached, many landlords

shut their doors and laid off employees.

the crisis ramped up. The COVID-19

and tenants worried about how they

Californians were stuck at home, many

pandemic led to many policy changes in

would handle the first major rental due

fearful for their health and finances, and

a short time, and the guidance that fol-

date since California’s shelter-in-place

some just plain angry at the situation.

lows may have changed since this writ-

order went into effect, leaving many

ing. Be sure to check CAA’s COVID-19

Californians either out of work or with

The rapidly spreading novel coronavi-

resource page, caanet.org/coronavirus,

reduced hours.

rus that had already torn through Asia

for the most up-to-date information.

and Europe was now spreading rapidly

To help, CAA created a sample let-

Safe at Home

ter, both in English and Spanish, that

In March, CAA unveiled its Safe at

owners could distribute to tenants

Tenants were afraid they’d be unable

Home Guidelines, urging rental hous-

before rent came due. The letter invited

to pay rent, and landlords worried that

ing providers to act with compassion

residents who face COVID-19-related

across the United States.

MAY 2020 | SF APARTMENT MAGAZINE

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

JUST LISTED

937 Haight Street, San Francisco 4 Units in the Upper Haight $1,995,000

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

1295 47th Avenue, San Francisco 12 Units in the Outer Sunset $4,999,999

LISTED & SOLD

80 Duncan Street, San Francisco 4 Units in Bernal Heights | $2,672,000 Represented Seller

1446-1448 14th Avenue, San Francisco 4 Units in the Inner Sunset | $2,100,000 Represented Buyer

3945 20th Street, San Francisco 6 Units in Eureka Valley | $2,800,000 Represented Buyer

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

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

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

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

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

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

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

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

2456 Steiner Street, San Francisco 3 Units in Pacific Heights | $5,995,000 Represented Seller

451-453 26th Avenue, San Francisco 3 Units in the Richmond | $3,100,000 Represented Seller

2040-2048 Taylor Street, San Francisco 5 Units in the Russian Hill | $3,700,000 Represented Seller

3638 19th Street, San Francisco 6 Units in Mission Dolores | $2,675,000 Represented Seller

688-98 Corbett Avenue, San Francisco 6 Units in Twin Peaks | $1,830,000 Represented Seller

ALLISON CHAPLEAU Vanguard Commercial | Senior Vice President 415.516.0648 | allison@allisonchapleau.com | License: 01369080 SF APARTMENT MAGAZINE | MAY 2020 ALLISONCHAPLEAU.COM

Operating During the Shelter-in-Place

distancing protocols by keeping a

cuss alternative payment arrangements. CAA’s Payment Plan Agreement (Form

While trying to keep their finances in order,

and provide appropriate protective

CA-263) can be used to set the terms of a re-

California property owners also had to

equipment to employees performing

payment plan for residents who can’t afford

adjust their business operations in light of

inspections, such as gloves and disin-

to pay some or all of their rent due to the

local and statewide shelter-in-place orders.

fectant wipes. If a resident requested

hardships to contact their landlord to dis-

an inspection prior to the outbreak,

COVID-19 pandemic. CAA also created a list of region-specific

To that end, CAA recommends that rental

follow up with the resident to con-

owners and operators do the following:

firm whether they would still like the inspection done. If the resident with-

resources to assist residents who suffered a loss of income due to the CO-

six-foot distance from individuals

• Limit having employees on-site to the

VID-19 pandemic. Printable PDFs of

level necessary to maintain minimum

these resources can be found on CAA’s

basic operations (e.g., processing rents

Community Resources for Renters and

and payroll, handling service requests

Housing Providers webpage: caanet.org/

for urgent habitability issues).

draws the request, get that withdrawal in writing. • Continue to send security deposit itemizations as necessary to comply with the law.

coronavirus-resources-for-workers/. • To the extent possible, limit the necesThe letter also urged residents who are not

sity for in-person rent payments and

Note: In some circumstances, Civil

experiencing a hardship to continue to

other resident requests by providing

Code Section 1950.5 allows a landlord

make rent payments on time.

contactless methods for making rent

to send an estimated itemization

payments and service requests (e.g.,

and refund.

Keeping Rental Property Owners Afloat

rent drop boxes, online portals for payment and requests).

It is a business decision whether to continue showing vacant units. If showings will

With many renters unable to pay the rent, at least in the short term, landlords also

Note: Under state law, landlords cannot

continue, to the extent possible, provide

were facing financial hardships. CAA urges

mandate that tenants pay rent online;

virtual and low-contact options (e.g., allow-

landlords struggling to pay their mortgage

one option other than electronic or cash

ing prospective residents to enter unit on

because of missed rent payments to contact

payments must be provided.

their own). Disinfect high-touch surfaces of vacant units between each showing.

their lender to discuss forbearance options. On March 25, 2020, after more than a thou-

• Cease non-essential maintenance and

sand rental housing providers contacted

repair work (e.g., continue to fix over-

Continue to process planned move-ins, but

lawmakers at CAA’s urging, Gov. Gavin

flowing toilets and broken heaters, but

observe social distancing guidelines and

Newsom announced that Wells Fargo, US

don’t move forward with plans to re-

implement no and low contact measures to

Bank, Citigroup, and JP Morgan Chase, as

paint walls for cosmetic purposes and

the extent possible (e.g., using electronic

well as 200 state chartered banks and credit

upgrade appliances).

signatures for lease signing when feasible).

unions, had agreed to a 90-day forbearance of mortgage payments for smaller property

• Inform residents of limited staffing and

The above content was written by Debra

contact information for urgent mat-

Carlton, executive vice president of state

ters. CAA recommends using multiple

public affairs and compliance for the Cali-

Landlords who’ve suffered a loss in rental

methods of communication to ensure

fornia Apartment Association.

income due to the COVID-19 can also

residents are informed of the changes

contact their insurance carrier to request

(e.g., sending both an email and plac-

COVID-19 Update from Recology

a modified payment schedule. Many in-

ing a sign in the office window/door or

Recology remains committed to continue

surance companies were offering finan-

distributing flyers on residents’ doors).

collection operations during the COVID-19

owners impacted by COVID-19.

cial assistance to customers affected by COVID-19, such as by waiving late fees

response. San Francisco residents are • Contact vendors (e.g., plumbers, exter-

spending more time in their apartments.

and granting grace periods for premium

minators) regarding their availability

As a result, they are generating more waste.

payments. The California insurance com-

to respond to emergencies to deter-

To ensure Recology can service apartment

missioner specifically requested that all

mine whether alternative arrange-

buildings efficiently, and protect workers

companies providing insurance in Cali-

ments are needed.

from potential exposure, all waste needs to

fornia give their insureds at least a 60-day grace period to pay their premiums. More

fit inside the bins without overflow or extra • Continue to perform walk-through

information about what specific insurance

inspections for planned move-outs if

carriers are doing to assist policy holders

requested by the resident, as these are

can be found at caanet.org/coronavirus.

legally mandated, but follow social

MAY 2020 | SF APARTMENT MAGAZINE

items placed next to the bins.

The News… continued on page 56

Adam Filly

Exceeding Expectations

Apartments | Mixed-Use | Commercial

Available Properties

1363 7th Ave | 5 Units | Inner Sunset

3062 22nd St | 3 Units | Inner Mission

1022 Shotwell St | 4 Units | Inner Mission

1345 California St | 8 Units | Nob HIll

6920 Commerce Blvd | 20 Units | Rohnert Park

5 Property Coliving Portfolio

Wondering what your investment property is worth? Call or email Adam for a complimentary and confidential market evaluation of your property, or to consult on any real estate matter.

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 | MAY 2020

COLUMN

SHERIDAN REPPORT

The Devil’s in the Details

business shut down, the local and na-

w r i t t e n b y M AT T H E W C . S H E R I DA N

tional economy rapidly shuddered and

An analysis of how the coronavirus is impacting our local economy.

the immediate effect was clear: massive

claims over a two-week period showed almost 10 million filings. Of those,

s you are aware, a novel

with Governor Gavin Newsom, who

nearly 879,000 of them were Califor-

coronavirus that began

issued the first statewide shelter-in-place

nians—twice as many as any other state.

this past December rap-

order—San Francisco and California

The official unemployment numbers

idly exploded across six

have aggressively moved to implement

released by the Labor Department for

continents into a pandemic. The

needed measures to stop the spread of

March showed over 700,000 lost jobs,

number of cases and deaths now are

COVID-19. In successive orders, citizens

and these figures were pulled in mid-

staggering. Virtually every country

were mandated to shelter-in-place,

March before many Americans were

across the globe has people dying.

practice social and physical distanc-

ordered to stay at home.

Iran, Italy, Spain and now the United

ing, and the city closed all but essential

States—the hardest hit.

businesses. Within days, schools and

While tech is a huge component of our

office buildings were closed, city streets

local economy, San Francisco’s vi-

We are now living in an unprecedented

were largely empty, bars shuttered, retail

brancy and culture is generated in part

time. The response nationally to the

shops boarded up.

by small businesses and the people who run and work for them. Add in

pandemic was tepid at first and today remains disjointed and chaotic. Even

The draconian measures, while nec-

the gig economy and the workers who

today (early April), quick and easy test-

essary, resulted instantly in unprec-

earn a living in that space, the impact

ing for the virus is hard to find. As the

edented economic upheaval, with

has been dramatic. Tens of thousands

highly contagious virus began to spread

large masses of people prevented from

of San Franciscans are or will soon be

across the globe—Americans began to

working. By late March, as the Dow

unemployed—just because the shops

die. As Wall Street recoiled and the com-

Jones Industrial Average was heading

and businesses they work in are shut-

modities markets tanked, the Federal

to its worst quarter since 1987, Presi-

tered. As Governor Newsom recently

Reserve instantly cut rates to zero, but

dent Trump signed a $2 trillion stimu-

said, “The economic consequences

it was too little, too late. The Fed—hav-

lus package addressing the economic

are profound. And I want to speak to

ing already had bowed to political

impacts of the COVID-19 outbreak.

these issues, not only from an individ-

pressure in 2019—had cut the federal

The CARES Act authorizes emergency

ual’s perspective … but also the impact

funds rate three times in the previous

loans to distressed small businesses,

on Main Street, the impact on small

year—despite a robust economy. There

as well as air carriers. It offers relief to

businesses. So often we take them for

was no further room to cut. The Fed

individuals, the health-care system, and

granted, even in the best of times. Right

also launched a program providing $1.5

entire corporate sectors ravaged by the

now, they have been devastated.”

trillion in short-term loans, as well as

outbreak. It also further lengthened

a return to quantitative easing. Initial

unemployment insurance programs for

On a warm, sunny Sunday afternoon

steps at the national level included an

traditional workers and extended the

recently, after hours holed up inside

extension of paid leave for employees at

program to self-employed, independent

the house partially going stir-crazy, I

large businesses and expanded unem-

contractors and gig economy workers.

escaped with my dog for a “walk.” As

ployment benefits for workers.

State and local government, as well as

I dodged joggers huffing by danger-

hospitals, are also set to receive funds

ously too close, I came upon several

for relief efforts.

groupings of kids’ chalk drawings on

Led by leaders like San Francisco Mayor

sidewalks scattered across the neighbor-

London Breed—who with other Bay Area

layoffs across the country. Initial jobless

policy makers, issued mandatory shel-

With local and state shelter-in-place

hood. Along with the usual assortment

ter-in-place orders by mid-March, along

orders in place and all but essential

of rainbow flags, flowers and bridges,

MAY 2020 | SF APARTMENT MAGAZINE

John Antonini

Daniel Foley

Multifamily + Mixed-Use + Add-Value

Just Listed

3049 California Street

4 Units | Lower Pacific Heights All Four Units Delivered Vacant

Just Sold

1251 20th Avenue

6 Units | Sunset District 12.81 GRM, 5.06% Cap Rate

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 | MAY 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.

New Weekly Unemployment Claims

were simple, powerful messages of hope:

1,000,000

“We will get through this” and “We’re in this together.” In this unprecedented time,

750,000

this needs to be the motto for everyone—especially when it comes to housing, and the

500,000

understanding, flexibility and clarity that will be required to ride this out and survive.

250,000

Many apartment owners are rightly con-

0 2010

2012

Source: Employment Development Department

2014

2016

2018

2020

California

cerned about the daisy chain affect. If their tenants stop paying rent or delay it for many months, how are they going to pay property taxes, building expenses, or the mortgage? So far both San Francisco and California have put into effect mora-

Employment Gain/Losses

toriums on evictions during this crisis

750,000

(see pages 8, 20 and 36). Even the federal

500,000

government has prohibited evictions if

250,000

multifamily owners participate in federal forbearance programs.

0 -250,000

To address the reality that many ten-

-500,000

ants will be unable to pay rent over the

-750,000 2010

2012

2014

2016

2018

2020

United States, Non-Farm, Seasonally Adjusted

Source: Bureau of Labor Statistics

next several months, SFAA created a rent forbearance form that owners can reach agreement with tenants on to delay rent payments (read about this on pages 36 and 40). The Rent Board also issued a guideline covering temporary rent reduction agreements in late March. “Rent board decisions

Federal Funds Rate

have consistently held that where a land-

3.0%

lord agrees to temporarily reduce a tenant’s

2.5%

rent due to genuine financial hardship spe-

2.0%

cific to the tenant, the landlord may restore

1.5%

the prior base rent at any time after giving

1.0%

written notice to the tenant,” the statement read. The Rent Board cautioned owners

0.5% 0.0% 2010

that “a rent reduction is permanent and 2012

2014

2016

2018

2020 Monthly Averages

Source: Federal Reserve System

cannot be restored if a new agreement is created between the parties at a lower rent due to market conditions.” They encouraged memorializing agreements in writing. “Our clients have expressed concern, not

Mortgage Rates

panic, over COVID-19 and its effect on the

7.0%

rental industry,” reports Paul Gaetani of

6.0%

30-Yr FRM

Gaetani Real Estate. “April’s rent payments

5.0%

5-YR ARM

will be impacted.” His firm is proactive with clients regarding the current process, com-

4.0%

municating exactly what each tenant’s sta-

3.0%

tus is. “They all seem to be on board—they

2.0% 1.0% 2010

know everyone is going to take a hit.” 2012

2014

Source: Freddie Mac

MAY 2020 | SF APARTMENT MAGAZINE

2016

2018

2020 Monthly Averages

One owner who wished to remain anonymous cautioned that the emergency order

TERRENCE JONES Ethical. Human. Local.

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

Unit Count (Multifamily Permits Issued)

needs to be refined, to minimize the potential for abuse. “There is nothing preventing

6,000

a tenant from getting a free loan for up to

5,000

six months or more—in theory, a tenant

4,000

needs to have objectionably verifiable

3,000

proof of COVID-19 impact, but how will it

2,000

be enforced?” he commented.

1,000 0

“Rent is due in full—we are not waving 2010

2012

Source: US Census

2014

2016

rent,” commented Gaetani. If a tenant is

2018

5+ Unit Buildings; San Francisco

unable to pay, Gaetani is using the SFAA’s Forbearance Agreement, which allows for payback over several months. Chris Collins, owner of Gateway Manage-

Net Domestic Migration

ment & Realty, a management firm based in

6,000

the Mission, reports the number of residen-

4,000

tial tenants who have asked for a break for

2,000

April was a small percentage.

Collins expressed concern about his

-2,000

commercial tenants—most of whom run

-4,000

small businesses and have been the most

-6,000

impacted by the shelter-in-place order. “We 2010

2012

2014

Source: Cal. Department of Finance

2016

2018

San Francisco County; Year Over Year

have a dance studio that offers classes; how can they pay rent, when they can’t open up?” he asked. “Whose fault is it? It’s reasonable that the landlord share in this situation.” He reports that for April, half of his commercial tenants requested a 50%

Home Appreciation 40%

reduction in rent or a full 100% waiver

20%

amounts were forgiven. He’s also educating

of the rent—his clients agreed, and the his commercial tenants about the aid they can receive from the CARES Act, sending

out notices about the federal government’s -20%

small business loan program to help companies ride out the crisis.

-40% 2010

2011

Source: S&P/Case-Shiller

2012

2013

2014

2015

2016

2017

2018

2019

2020

Year-Over-Year Change; Seasonally Adjusted; Bay Area

Paul Gaetani also reported widespread requests from commercial tenants. “They’re really struggling and in need of deferral or concession,” said Gaetani, who reported half of their commercial tenants need help.

Ellis Act (Affected Units) 400

Despite the government and rental housing industry coming together to help

Annual Count

300

persevere through this, the emergency

Historic Average

orders appear to impose a form of va-

200

cancy control on rentals with an antiprice gouging component that limits rent

100 0

increases to 10% above the previous rent. As one owner pointed out, if a formerly 2010

Source: SF Rent Board

2012

MAY 2020 | SF APARTMENT MAGAZINE

2014

2016

2018

Average Since 1998; Fiscal Year

The Sheridan Report… continued on page 55

Listings and Sales

For Sale | 3062-3066 22nd Street 3 Units | $2,000,000 | Filly

For Sale | 190 27th Avenue 6 Units | $4,250,000 | Forbes

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COLUMN

LEGAL Q&A

Coronavirus Crackdown w r i t t e n b y VA R IOU S AU T HOR S

Read on to learn how to legally operate your rental property during the shelter-in-place order. the San Francisco order acts as an Q. I keep hearing different

things about what’s happening with eviction law and the courts. I’m not even sure whether my tenant has to pay rent right now. What’s going on?

A. The word “unprecedented” would

eviction defense rather than just an

recently requested clarification from the Mayor on the meaning of this imprecise phrase. Stay tuned.) On March 27, President Trump signed the CARES Act into law, which prevents the filing of any non-payment of eviction lawsuit for residential properties with a federally backed mortgage.

extension of time to respond. (Gov. Newsom’s order also freezes lockouts

SFAA and its member attorneys are

even where the landlord already has

working (remotely) to hone this amor-

judgment for possession.)

phous practice area to advance your rights—to collect rent, to enforce your

A week after Mayor Breed’s rent sus-

lease, to access or occupy your property,

be appropriate here if its meaning

pension order, tenant attorneys from

and to protect your tenants. In some

weren’t so dulled lately. As a faithful

all tiers of the practice area noticed “ex

cases, there is a clear path through this

reader of SF Apartment Magazine,

parte applications” to seek stays of evic-

mess in the normal course. In other

you’ve observed that San Francisco

tion proceedings in dozens of lawsuits

cases, there are productive things to do

landlord-tenant law has been mate-

at various stages. These motions typi-

while we wait. Otherwise, these emer-

rially changing roughly once every

cally require a factual showing of “ir-

gency orders will expire. The California

few months. Since California’s state

reparable harm or immediate danger,”

orders run through May 31. The Superior

of emergency declaration on March

but each application was irrespectively

Court’s blanket stay on eviction law-

4, it’s been changing every few days,

granted. Shortly after, on March 18,

suits ends on June 19. The Mayor’s rent

and these changes are happening at all

Presiding Judge Garret L. Wong of the

suspension currently ends on April 22

levels of government and from different

San Francisco Superior Court issued a

(allowing six months for the tenant to

branches of government, not necessarily

blanket stay of all matters in eviction

catch up and subject to extensions), and

in a coherent or consistent way. It is un-

lawsuits (other than those involving

the Mayor’s broad eviction moratorium

fortunate, but likely, that this summary

violence or health and safety issues).

allows termination notices that expire on or after June 21. The CARES Act

will be outdated by publication. Your confusion is justified.

While this left open the possibility

moratorium ends on July 25.

that landlords would serve eviction

As of early April, this is where we are:

notices (other than those for quali-

This is the state of affairs from a legal

Gov. Newsom’s state of emergency

fied, COVID-19 non-payment of rent),

perspective. From a non-legal perspec-

declaration triggered the same anti-

Mayor Breed’s March 23 amended order

tive: please take this pandemic seri-

price gouging rules that we’ve seen

imposed a moratorium on all “attempts

ously, especially if you are elderly or

during the recent large-scale fires: land-

to recover possession.” This cannot

vulnerable. Stay safe and sane so you

lords cannot increase rents more than

include the Ellis Act without state ap-

can recover stronger. Treat even your

ten percent or terminate a tenancy to

proval, but it superficially includes every

defaulting tenants with compassion.

obtain such higher rents. The following

other kind of notice—even when your

SFAA and other groups are working to

week, Mayor Breed issued her first mor-

tenant is in breach of lease, even if you

advance solutions that achieve eq-

atorium on evictions for nonpayment

want to move into your own property

uity, even while we’re all ordered to

of rent, for tenants with a COVID-19 re-

but have been waiting until the end

shelter-in-place.

lated loss of income. Gov. Newsom also

of the school term to comply with the

extended the time to respond to a non-

“educator law,” and even if the Superior

payment of rent eviction for tenants

Court would otherwise advance the

suffering a loss of income, although

eviction for safety reasons. (SFAA has

MAY 2020 | SF APARTMENT MAGAZINE

—Justin A. Goodman Legal Q&A… continued on page 44

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ROOMS for MORE

w r i t t e n b y PA M M C E L ROY

Supervisor Rafael Mandelman talks about his plans to improve District 8, one shelter bed at a time. Our exclusive interview with District 8 Supervisor Rafael Mandelman, edited for space and clarity, begins below.

McElroy: What brought you to San Francisco and what keeps you here? Supervisor Rafael Mandelman: I moved to San Francisco from Laguna Beach in 1985 when I was 11 years old. I think it’s one of the most beautiful cities in the world. After law school, I got involved in local community and politics, and I’ve remained engaged ever since. That kind of involvement tends to anchor you where you are in the community, and here we have a great community. One of the best parts about being an elected official is that I get to see firsthand how many people are doing great things in their kids’ schools; in churches, associations, and nonprofits; the people who are taking care of our parks. It is pretty amazing.

McElroy: Would you say your community involvement led to your political career? Supervisor Mandelman: Actually, ever since I was a little kid, I’ve always found politics super interesting. I was paying attention to presidential elections as early as elementary school, and I became active in politics in high school. In fact, I had an internship one door over from where we sit now in what was then Supervisor Doris Ward’s office.

McElroy: What political achievement are you most proud of? Supervisor Mandelman: I would say that my greatest achievement actually predates my being on the Board of Supervisors. I was elected to the City College Board of Trustees when City College was going into a fight for its survival. It was threatened with losing its accreditation. I helped lead the fight to keep the college open. The board

MAY 2020 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | MAY 2020

was suspended, so when we came back, I

on Valencia Street, and we have our eyes on

How do they serve patrons while dealing

was elected president. We tried to restore

a few other locations in District 8. District

with these types of disruptions? And this,

democratic governance and responsible

8 is a particularly challenging place to find

among other things, also has a depressing

budgeting. The college still has some prob-

spots, because it is relatively developed.

effect on foot traffic. Foot traffic is also

lems, as we read about, but I am proud of

There’s not a lot of vacant space.

decreasing because of the amazonization

saving it and stabilizing it at that time. Since I’ve been on the Board of Supervisors, I’ve done a ton of work on homelessness, in particular on the mental health and

McElroy: Do you see opportunities for more affordable housing in District 8?

of the economy, people shopping online, people ordering in rather than eating out. It’s all adding to the perfect storm. The way I can help is through improving

substance abuse aspects of homelessness.

Supervisor Mandelman:

We did a local implementation of Sena-

I do. Although it’s challenging because

folks who are creating challenges for small

tor Weiner’s SB-1045; we did a lot of work

the land values are high. We actually

businesses, so they can stay competitive.

through the Budget Committee, which I

added $40,000 to the budget last year for

We’re in a new era. Businesses that would

serve on, to make sure that we have ad-

a District 8 focused assessment of how to

have survived 20 years ago are getting

equate treatment for people who are inter-

get more affordable housing into district

wiped out. I don’t think this means that

ested in going into recovery; and I fought

neighborhoods. The district has the second

people can’t operate a successful business

hard for the Affordable Housing Bond that

highest rate of no-fault evictions, so there’s

in San Francisco, but I think it’s harder

we just passed.

a lot of displacement, a lot of Ellis Act, a lot

than it used to be.

McElroy: And congratulations are in order! Your proposal to convert the Salvation Army on Valencia Street in your district to a homeless shelter was just approved. What are your plans for that space?

street conditions. To try to get help for the

of owner move-ins. There are a lot of renters losing homes they’ve had there, and at

There’s also the issue of regulatory bur-

the same time, there’s not a lot of affordable

dens. A lot of us are looking for ways to

housing getting built.

ease this burden for small businesses. I think we have an obligation to go through

So, one of my big asks for the Mayor was

regulations that were created by well-mean-

for funds from last year’s budget for an

ing supervisors and mayors over the years,

Upper Market or Castro Affordable Hous-

and eliminate the ones that are now irrel-

ing acquisition. The city has now acquired

evant and burdensome. What regulations

We will get this homeless shelter opened

a site at 1939 Market Street that we’re hop-

can we take away that would have little

and focused on people with mental health

ing will be LGBT senior housing. There are

consequence to the city? What can we do to

needs. I think that we really need a net-

two buildings like that already, and com-

make life easier for the people who are try-

work of them throughout the city. A lot of

bined they have 118 units—operated by

ing to keep their small businesses going?

people come out of the psych emergency

Mercy Housing in combination with Open

or the emergency room after having been

house—but they have 3,000 people on

involuntarily detained, and instead of being

their waiting list. We’re not going to have

taken to some kind of therapeutic environ-

3,000 units at 1939 Market, but we might

ment, they’re just dumped on the streets.

get 75, and that is still something.

Supervisor Mandelman:

That is not a prescription for success, for those individuals or for the city. We’ve all seen people wondering around the city, still with plastic hospital bracelets on their arms, clearly not ready to be out in

McElroy: What about the influx

of vacant storefronts in District 8 and throughout the city? What do you think can be done to fill them?

McElroy: You started a program to identify the most distressed and distressing San Franciscans as a means to get them help. How is this program working? Supervisor Mandelman: There are people—people who are known by neighbors, by small businesses—that seem particularly sick. They’re a real bur-

the world—but there is nowhere for them to

Supervisor Mandelman:

be. We need to have more places for those

This is a real challenge, and the causes

challenges of their own that are not being

folks to be. The Salvation Army space will

are complicated. The challenges for

addressed. So, we asked, in the context of

have 30 beds, but we need a lot more.

small business in the Castro are insepa-

getting more support for Upper Market and

rable from the challenges around street

the Castro, if the different departments that

conditions, mental health, and substance

engage with these known people—police,

abuse. If you talk to business owners and

the Department of Public Health, Home-

people who are working in the shops on

lessness and Supportive Housing—could

Market Street or in the Castro, the chief

coordinate their efforts to focus on the

Definitely. San Francisco is a dense city, but

problem they describe is the really chal-

neediest and most challenging people.

if we’re diligent, we can find places for un-

lenging, sick, and addicted folks coming

Because of privacy requirements, we don’t

housed folks. We found the Salvation Army

into the stores. How do they handle that?

know what other departments are doing

McElroy: Do you see opportunities for more shelters?

Supervisor Mandelman:

MAY 2020 | SF APARTMENT MAGAZINE

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for any individual. What I do know is that

So, in RH-1 (single family home neighbor-

what we’re doing right now isn’t working,

hoods), most demolitions at least require

and it’s frustrating.

Conditional Use review by the Planning Commission. However, there’s an exemp-

The list has been useful because I think

tion for properties that are characterized

the people on it are getting more offers of

as “demonstratively unaffordable.” So,

help. But I can’t say this program has been

properties that get sold for a high amount

a smashing success. I do think that, over

don’t have that additional level of Condi-

time, if we’re going to have more success

tional Use review, but that does not make

with the four thousand homeless people

a ton of sense to me since the property

who are suffering from substance abuse

value that establishes whether some-

disorder and mental illness, that we’re go-

thing is “demonstratively unaffordable” is

ing to need departments to collaborate to

based not on the value of the little cottage

move people into housing, into the medical

that’s there now, but the value of the giant

care they need.

single family home that would be allowed

McElroy: You were quoted in the San Francisco Chronicle, saying “I’m the face of a city that’s failing.” What were you referring to? Supervisor Mandelman: I think anyone who goes out, anyone who walks around San Francisco right now, can see that something is wrong. It’s not just San Francisco though, a lot of cities are failing. In some ways, we’re a failing country in

to be built there. So, it seems arbitrary to me to have that cap, and we are looking at eliminating it. But more importantly, I think we need to add density in the city.

McElroy: What are you plans

for increasing density? Where do you see opportunities for high density housing?

this regard. But I am 1/11th of the legislative

Supervisor Mandelman:

body here in San Francisco, and we are not

We’re looking to increase density around

where I want to be for this city. We’re not

transit, in Glen Park in particular. We’re

where I want to be as someone who grew

looking at the area around the BART station

up here. We’re not where I want to be as

as a potential area where we might be able

someone who lives here. We’re not where

to add some density, for example by elimi-

I want to be as someone who is an elective

nating RH1, RH2 and RH 3 zoning. In fact,

representative of this community.

I think it makes sense to allow three- and

McElroy: As someone who is

four-plexes in most of the city’s neighborhoods. And I think we can do that without

five

ways to connect SFAA will always be available by phone, email and in

person, but now you can also connect with SFAA online, too. Follow the happenings of your fellow SFAA members and find out the

interested in eliminating no-longerrelevant legislation, you have a proposal about closing a loophole in an old ordinance that allows more expensive housing to avoid demolition regulation. What is your goal?

McElroy: What is your favorite way to spend a day off in San Francisco?

book. Search San Francisco Apartment Association and

compromising the character and livability of those neighborhoods.

Supervisor Mandelman:

1,500-square-foot single family homes

A day off? What’s that? But seriously, I

being replaced with 6,000-square-foot

do love getting out in the city and the

monster homes are a problem in my

broader Bay Area. We are fortunate to

district. While nothing in San Francisco

live in a fantastically beautiful place, and

is truly affordable at this point in time,

we should all try to make at least a little

we’re replacing housing with residences

time to get out and enjoy it.

that are in an entirely different universe. That’s a concern and the city has already put some additional regulation in place for demolitions of existing housing stock.

MAY 2020 | SF APARTMENT MAGAZINE

Pam McElroy is the editor of SF Apartment Magazine.

latest in the industry by connecting with SFAA on Face-

for “Like” it to add it to your news feed. Follow SFAA on

Twitter at www.twitter. com/SFAptAssoc.

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While construction is costly, the value ADUs create make them a worthwhile investment.

ccessory Dwelling Units (ADUs) have been a hot topic of conversation over the past few years as California searches for more ways to build new housing in

areas that are in demand and close to transit and jobs. Also known as in-law units, this type of housing is often associated with detached backyard cottages or converted garages in single family neighborhoods. However, ADUs can also be found in apartment buildings. San Francisco passed local laws allowing this several years ago, and California state law recently changed to allow them statewide. Pages 30 - 33: This small corner apartment building in Glen Park was built with garages on both streets. The steep hill created additional unused space above the downhill garage. OpenScope designed two units—a one-bedroom unit in the upper garage and a two-level unit with views in the lower garage.

Why add an ADU in your multifamily building?

Photo Credit: Patrik Argast Photography

you already own, often while making improvements to the building

New units, with finishes comparable to new construction, can usually be added at a cost that is significantly lower than the additional property value they create, especially if this work can be done at the same time as other building improvements—like electrical or seismic upgrades. In buildings with underutilized garages or storage areas, ADUs are an excellent way to generate additional income off the space that will benefit your tenants in the existing units.

What do multifamily ADUs look like? In most cases, ADUs look just like regular apartments. Multifamily ADUs are typically located in spaces formerly used as parking or storage inside an apartment building or in an existing detached structure on the same lot. Multiple units can be installed in one building; in San Francisco, there is no cap on the number of additional units that can be added if they are code-compliant and the building already has five or more units (smaller buildings can add one unit, or an unlimited during a voluntary soft story upgrade). After an architect evaluates your building, during the earliest phase of the design process, she will know how many units can fit into the space available. In many buildings, the limiting factor will be how much exterior wall area is available—every unit and each sleeping room within a unit must have a window to the exterior, and the area

MAY 2020 | SF APARTMENT MAGAZINE

ADU TO-DO’S

w r i t t e n b y M A R K HO G A N

SF APARTMENT MAGAZINE | MAY 2020

outside the unit must meet minimum di-

buildings, where there is a lot of unused

parking requirements, and some fee waiv-

mensions. Your architect will advise you on

space, owners have been able to add six or

ers, among other things.

how to connect the units to the street and

more units. Units built under this program

existing common areas, and will be able

need to file a Costa Hawkins Waiver and

Process

to suggest other building improvements

Notice of Special Restrictions to agree to

The typical process for undertaking an

that could be tied into the project. Lobby,

subject the new units to rent control.

ADU project would start with hiring an

laundry and landscaping improvements are often part of an ADU construction project.

architect to review your building. They may For all ADUs, the Department of Build-

also need to hire additional consultants,

ing Inspection and the San Francisco Fire

depending on the scope (most projects

ADU interior finishes often set them apart

Department have written up building

require a structural engineer too, at mini-

from a lot of the existing apartment inven-

code equivalencies to address common

mum). At milestones during the design pro-

tory because they are all new. Upgrading

issues that come up when adding units to

cess, you will discuss options and review

interior finishes on ADU project does not

an old building. These allow for alter-

progress with the design team.

add a huge amount of cost to the project

nate ways of addressing Building Code

and can often help command higher rents

requirements in buildings where it would

Once the plans are completed, they will

and lead to less maintenance in the long

not be feasible to build new units under

be filed with the Department of Building

term. Spending more money on stone coun-

the letter of the current code because of

Inspection. They will be routed through

tertops, for example, makes them much less

existing non-conforming conditions.

a list of city agencies: Planning, Building,

likely to be damaged vs. installing a much cheaper laminate counter.

the Fire Department, Public Works and the San Francisco no longer requires car park-

Public Utilities Commission will all have

ing spaces, so parking can be removed to

the chance to review the drawings and

San Francisco Rules

add ADUs. It is important to note that you

provide comments. This usually takes a few

San Francisco has gone through a number

may be contractually obligated to provide

months. The design team will provide up-

of versions of its ADU regulations, and they

parking based on existing leases, even if

dated drawings to respond to comments.

will continue to evolve. In the first version

the Planning Code would let you remove it.

of the ADU law, new units were limited to

Talk to your attorney early in the process if

The property owner will be asked to sign

being installed in a small trial area in the

you are planning on removing tenant-occu-

a Costa Hawkins Waiver and a Notice of

Castro neighborhood. ADUs were eventu-

pied parking spaces.

Special Restrictions, this is for ADUs that receive Planing Code Waivers and ac-

ally allowed citywide, and the details of the the realities of working in our city. At the

New California State ADU Laws for 2020

time of this writing, there are two ADU pro-

ADU laws have been passed at the state

grams under the Planning Code:

level going back to the 1980s, but in re-

During the permit process, it is common

cent years the dire need for new housing

to solicit bids from several general con-

Non-Waiver ADUs

statewide has prompted legislation that

tractors unless you already have one lined

These ADUs comply with the Planning

requires local municipalities to allow more

up. The contractors will review a set of

Code without any requests to waive typi-

of these units. On January 1, 2020, SB 13,

drawings and specifications and provide

cal requirements. They are in single family

AB 68 and AB 881 all took effect, the local

you with a proposal including a price to

homes and are usually a conversion of a

laws in San Francisco have not yet been

do the work. Your architect usually will

basement, garage or storage space. On

updated to reflect the changes (as of the

be willing to assist with reviewing the

some lots, a detached unit can be built.

time this was written). Not all of the new

bids and making a selection.

regulations have been tweaked to reflect

knowledges that the units will be subject to rent control.

law will apply to ADUs requiring San

Waiver ADUs

Francisco Planning Code waivers, but it is

Once your contractor is hired and the per-

These ADUs require Planning Code waiv-

expected that it will allow for the creation

mit is issued, it’s time to begin work. Con-

ers for things required for a typical residen-

of freestanding ADUs (up to two units) on

struction timelines can vary depending on

tial project in San Francisco, like exposure

lots with a multifamily building. Additional

the particulars of your project; it is a good

(every new unit must face an open area of

info about updates to the local law should

idea to have a thorough understanding of

a prescribed size) or open space. These are

be available sometime in 2020.

the schedule with the general contractor prior to starting work.

reviewed by the zoning administrator but do not require a hearing. These ADUs can

Outside of San Francisco, the new law will

be built in single or multifamily buildings.

have a more sweeping effect as most other

The general contractor will coordinate

In buildings where you are doing a seismic

cities did not previously allow for ADUs in

all of the various trades to go into the

retrofit or where there are more than four

multifamily buildings. The new regulations

project and arrange for the required

existing units, an unlimited number of

should allow for additional units (up to 25%

inspections. They will also often have

additional units can be added. In some

of your existing unit count), a relaxation of

their subcontractors provide design-build

MAY 2020 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | MAY 2020

services for specific parts of the scope, like fire sprinklers. Typically, your architect will visit the site at intervals during construction, as will the structural engineer. They will provide notes on what has been observed and they will be able to answer questions from the contractor. After construction has been completed and all of the inspections have been signed off, you will be given a Certificate of Final Completion from the Department of Building Inspection and you’ll be able to start advertising your unit for rent.

Challenges High construction costs are the biggest

five

ways to connect

challenge facing people who want to build ADUs in 2020. The large volume of construction in our region means that contractors are busy. Talk to your architect early in the ADU process to set expectations on what typical construction costs are. Many people choose to bring in a contractor during the design phase for cost consultation,

SFAA will always be available by phone, email and in

person, but now you can connect with SFAA online, too.

prior to pulling a building permit.

Follow the happenings of your fellow SFAA members and

It’s also challenging to take on a construc-

find out the latest in the industry by connecting with SFAA

tion project in a building where people are already living, and clear communication with both your contractor and the tenants is key to a successful project.

Summary

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.

Adding ADUs to your apartment building is an excellent way to add value and make the highest and best use of your existing investment property. While construction is expensive, the value created based on increased rental income usually makes it a good investment. It’s also a great opportunity to make other improvements that will make your building more attractive to potential tenants. Check with the San Francisco Planning Department for more information about the current ADU regulations, or talk to a local architect who has experience with these projects. Mark Hogan AIA is an architect and a principal at OpenScope Studio in San Francisco. OpenScope Studio wrote the Accessory Dwelling Unit (ADU) Handbook for the San Francisco Planning Department and has worked on designing ADUs for over 50 apartment buildings in San Francisco.

MAY 2020 | SF APARTMENT MAGAZINE

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COLUMN

COURT TALK

Just Adjustments w r i t t e n b y C L I F F OR D F R I E D

During the coronavirus crisis, rental property owners should be willing to work with residents who are unable to pay full rent. Read on for instructions on how to navigate rent forbearance.

recommending the use of contracts of forbearance. SFAA, CAA and NAA have forms available for their members to use. These forms were created by attorneys and experts on rent control and leasing law and are designed to avoid claims of illegal rent increases or waiver. A contract of forbearance allows your

FAA and its associated lawyers

Don’t tell tenants that they can “slide on

tenant to remain in possession while

have been inundated with

the rent for now” or words to that effect.

temporarily suspending the obligation

questions about best practices

Every modification of the terms of the

to pay rent, while the landlord preserves

during the coronavirus out-

tenancy should be in writing. Oral agree-

default remedies. However, these con-

break. Many landlords are fearful that

ments will lead to misunderstandings

tracts can also make a rent compromise

accommodating tenants during this

and disputes. And tenants will always

if that is what the landlord desires. Un-

pandemic will lead to claims of perma-

win these disputes.

less the contract of forbearance violates some rent law, it should be enforceable.

nent rent reduction and waiver of lease terms. This article summarizes some

Don’t panic and sell your property. We

of the issues that have arisen and best

will get through this. Don’t be a real es-

In general, all contracts of forbearance

practices to follow.

tate investor that buys high and sells low.

should recite the rental obligation, de-

I don’t mean to downplay the suffering

fault by the tenant, and then acknowl-

What Not to Do

that is taking place in the world because

edge that the landlord is not at fault.

It is always easy for lawyers to tell their

of COVID-19, but the world will survive.

Then, there needs to be an agreement

clients what not to do. So here it goes.

Someday, property owners will all look

for the landlord to forbear from exercis-

back on this crisis as a big dip in the real

ing some remedy, such as charging a

This is not a time to be unreasonable

estate cycle. You should consult with an

late fee or interest on unpaid rent, or

and unwilling to accommodate tenants.

experienced real estate agent to deter-

declaring a default under, or a forfeiture

Landlords should not think that this is a

mine when it is best for you to sell.

of, the lease.

ment of rent eviction. There are no evic-

Contract of Forbearance

The contract of forbearance should

tions taking place during this crisis.

Normally, parties to a contract can eas-

include a date for when the agreement

ily modify the terms of their agreement

terminates and the tenancy reverts

Many cities are placing a moratorium

as they see fit. Not so much in places

back to the usual and normal terms.

on evictions or at least forcing land-

with rent control. For example, the San

The termination can be a date certain

lords to accept late rent payments

Francisco Rent Board has a policy of

or an event such as unpaid amounts

where tenants can show that the pan-

not allowing landlords to temporarily

being paid current, or a declared state

demic created the inability to pay rent.

reduce rent and later raise it back to the

of emergency being over.

There will be some tenants who will

amount agreed upon in the lease. The

take advantage of the current situation

Rent Board sees this as an illegal rent

Don’t Touch the Money

and claim inability to pay rent. You

increase unless you petition the Rent

Because of the shelter-in-place orders

should listen to what they have to say

Board and it is approved.

from the various government authori-

good time to trap a tenant into a nonpay-

and decide for yourself if the claims

ties, tenants don’t want to leave their

are valid or an excuse to avoid the

To avoid claims of illegal rent in-

homes to pay rent. These are tenants

rental obligation.

creases, some landlord attorneys are

who either are required by their leases,

MAY 2020 | SF APARTMENT MAGAZINE

sfaa’s

AB 1482 Overview The passage of Assembly Bill 1482 means that landlords throughout the State of California will join San Francisco landlords in having to navigate a maze of rent and eviction regulations. Landlords in our town have lived with these kinds of regulations since 1979, but which laws will be applicable to rental units in San Francisco? The San Francisco Rent Ordinance or the new state law? Join us for a comprehensive presentation to learn about the new law and have your questions answered by attorneys Clifford Fried and Steven Williams of Fried and Williams, LLP. DATE & TIME:

CONTACT:

Tuesday, June 23, 2020 6:00 pm to 8:30 pm

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

LOCATION:

You can also register online at sfaa.org.

Fort Mason Center Building C, Room 205 COSTS:

For Members Only: $100

sfaa’s

Habitability Issues HABITABILITY ISSUES CLASS

California Civil Code Sections 1941 and 1942 define a landlord’s responsibilities for repairs. Find out what your responsibilities are for providing a safe, sanitary and livable unit for your tenants. DATE & TIME:

COSTS:

Wednesday May 27, 2020 6:00 p.m. - 8:30 p.m.

Members: $65 Nonmembers: $85

For more information, contact Maria Shea at Fort Mason 415.255.2288 x10 or Building C, Room 205 maria@sfaa.org. LOCATION:

Class SF APARTMENT MAGAZINE | MAY 2020

or by choice, to pay rent by personal deliv-

TALENT. COLLABORATION. SUCCESS.

ery or mail. And there are some landlords who don’t want to catch the virus by taking cash or checks. And they shouldn’t be laundering the rent either (I couldn’t resist). Tenants who request direct deposit are essentially asking the landlord to modify the lease where direct deposit had not previously been permitted. There are landlords who insist on direct deposit and others who strictly prohibit it. It may be that this virus pandemic causes many landlords to change their policies on direct deposits. Many fears about creating tenancies with subsequent occupants who did not sign the lease are unwarranted or can be addressed with a good lease or addendum.

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Breaking the Lease

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of the lease, impracticable. Force majeure is defined as an event that cannot be anticipated or controlled. It is limited to circumstances beyond the control of the parties rendering the contract too difficult or even impossible to perform. The doctrine is based on our state codes, which say that no man is responsible for that which he cannot control and that performance is excused when it is prevented or delayed by an irresistible, superhuman cause unless the parties have agreed to the contrary.

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MAY 2020 | SF APARTMENT MAGAZINE

pandemic and as a result has no income to

If the tenant provides the notice, the tenant

pay rent, then there is nothing physically

may have up to six months to pay the rent.

preventing the payment of rent. Alternative means for paying rent can come from bor-

In Oakland, the City Council imposed

rowing, tapping into savings, seeking un-

a moratorium on all residential evictions

employment or other emergency benefits,

and late fees until May 31, 2020. The

and selling personal property.

moratorium also extends to small commercial tenants.

Or the tenant can request a contract of forbearance from their landlord. Most land-

All moratoriums are subject to being ex-

lords would be willing to take late rent dur-

tended as circumstances warrant. And all

ing this crisis rather than having an empty

contracts of forbearance are further sub-

unit that cannot be shown or rented be-

ject to the restrictions of any applicable

cause of the government’s shelter-in-place

moratorium in place. To the extent that

orders. These forbearance agreements can

there is overlap between moratoriums,

either suspend or defer payments, or even

assume that the tenant gets the benefit of

release payment obligations, without liabil-

any contradictions.

ity to the tenant.

Options It is unlikely that a court will allow a tenant

The most logical and common option for

to walk away from a lease based on the cri-

a tenant who cannot pay rent as a result of

sis created by COVID-19. Factors the courts

the pandemic is to enter into a contract of

will consider include when the contract

forbearance. This appears to be the best

was entered into (before or after the pan-

option for the tenant that wants to preserve

demic became known), whether the crisis

her tenancy and the landlord who doesn’t

was foreseeable by the tenant and if the risk

wish to permanently waive rent that be-

was assumed, whether the tenant explored

comes due. But it can also be used where

alternatives before breaking the lease, and

the landlord is willing to forgive rent.

whether the tenant gave timely notice if required by the lease.

For the tenant who wishes to simply cancel

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the lease and move out, the landlord has

Moratoriums on Evictions

a choice: accept the surrender and re-rent

On March 27, 2020, Governor Gavin

or, enforce the lease by suing the tenant

Newsom issued an Executive Order that

for lost rent. Not many tenants will be able

will extend the time a tenant has to file an

to establish the defense of force majeure.

answer to an unlawful detainer complaint

Regardless of the choice made, the landlord

by 60 days in nonpayment of rent case.

is required to mitigate his damages by mak-

The tenant would be required to notify the

ing an honest and reasonable attempt to

landlord at least seven days before rent is

re-rent the premises to new tenants.

due that rent will be delayed due to reasons related to COVID-19 and provide documen-

In any case, there should be no reason for

tation to that effect. The Governor’s mora-

rent to be excused entirely. Most payments

torium does not prevent landlords from

may be delayed or partially forgiven. Start

serving notices or recovering possession

by having an honest discussion with any

if they are otherwise entitled to evict. This

tenant who requests a break from the

statewide moratorium expires on May 31.

rent. Ask for proof of hardship and remain flexible. Show that landlords can be sym-

On March 13, 2020, Mayor London Breed

pathetic when circumstances require a

proclaimed a moratorium on landlords re-

bending of the rules.

covering possession based on nonpayment of rent due to COVID-19. The tenant must provide written notice and documentation within 30 days of when rent is due. If no notice is provided, the landlord may evict.

The information contained in this column is general in nature. Consult the advice of an attorney for any specific problem. Clifford Fried is with Fried & Williams, LLP and can be contacted at 415-421-0100.

starts on page

SF APARTMENT MAGAZINE | MAY 2020

TEMPORARY RENT REDUCTION AGREEMENTS Before the COVID-19 crisis changed our world, owners were usually not asked to temporarily reduce or forbear a tenant’s rent. That reality has now changed, as unemployment numbers are off the charts and incomes are drying up. Rent Board decisions in the past have held that where a landlord agrees to temporarily reduce a tenant’s rent due to genuine financial hardship specific to the tenant, the owner may restore the prior base rent after giving written notice to the tenant. Restoration of the prior rent does not affect the tenant’s anniversary date for the purpose of future rent increases. Examples of tenant hardship included a job loss, an increase in expenses, or even losing a roommate that was helping to pay rent. However, rent reductions based upon weakening market conditions are usually deemed to be permanent. For example, if a tenant threatens to vacate because a comparable unit somewhere else nearby is renting for less,

Legal

?’s

Get Answers.

and the owner reduces the rent for a period of time in order to incentivize the tenant to stay, then that reduction becomes permanent regardless

Confused about local and state-

of any lease addendum or contract between the landlord and tenant that states otherwise.

wide rental housing laws? Take

Today we have a unique situation where tenants are experiencing unprec-

advantage of SFAA’s legal informa-

edented economic insecurity and the overall rental market is declining because people are simply leaving town for lack of employment. Unfortunately, we cannot offer clear guidance as to what may happen with a temporary rent reduction or forbearance agreement that may arguably be predicated on both a tenant’s particular hardship and a softening rental market. That said, we encourage all rental property owners to freely use the new SFAA Rent Forbearance Agreement. Owners must do what they can to assist tenants during this unsettling time in our history. Please actively engage every resident who expresses the inability to pay all or a portion of rent for the April through July time period (and perhaps beyond). Most

tion 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 Francisco

agreements will state that the request emanates out of a tenant’s particular economic hardship, and certainly no one doubts that these hardships exist. In this vein, please consult with your legal counsel to make sure the Forbearance Agreement is properly drafted to accurately reflect the intentions and needs of both the owner and tenant. The agreement should at a minimum state the nature of the tenant’s financial hardship and whether rent is being reduced but the reduced amounts are being paid back at a later time, being forgiven outright, or being partially forgiven with arrearages to be paid back in subsequent months. In addition, the duration of the rent for-

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

bearance, rent reduction, and/or rent forgiveness periods should be clearly specified. Do not get stuck on demanding “proof” that the tenant is experiencing hardship. Yes, you are permitted to request verifiable documentation evidencing the loss of income, but please be very accommodating and humane throughout these difficult times.

MAY 2020 | SF APARTMENT MAGAZINE

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SF APARTMENT MAGAZINE | MAY 2020

Legal Q&A… continued from page 20

Continue to perform walk-through inspec-

rent for a period of time in order to incen-

Q. What is considered to be an

tions for planned move-out if requested by

tivize the tenant to stay, then that reduction

the resident, as these are legally mandated,

becomes permanent regardless of any lease

but follow social distancing protocols by

addendum or contract between the land-

keeping a six-foot distance from individuals

lord and tenant that states otherwise.

essential business? Can I continue to show my vacant apartments? What should I do about maintenance requests and premove out inspections during the shelter-In-place?

and provide appropriate protective equipment to employees performing inspections,

Today we have a unique situation where

such as gloves and disinfectant wipes. If a

tenants are experiencing unprecedented

resident requested an inspection prior to

economic insecurity and the overall rental

the outbreak, follow up with the resident to

market is declining because people are

confirm whether they would still like the in-

simply leaving town for lack of employ-

Order lists essential businesses that are

spection done. If a resident withdraws their

ment. Unfortunately, we cannot offer clear

allowed to continue to operate during

request, get that withdrawal in writing.

guidance as to what may happen with a

A. San Francisco’s Public Health

temporary rent reduction or forbearance

the shelter-in-place. It is a business decision whether to con-

agreement that may arguably be predicated

tinue showing vacant units. If showings

on both a tenant’s particular hardship and a

rental housing providers affected by

will continue, to the extent possible, pro-

softening rental market.

shelter-in-place orders implement

vide virtual and low-contact options (e.g.,

the following measures:

allowing prospective residents to enter

That said, we encourage all rental property

units on their own). Disinfect high-touch

owners to freely use the new SFAA Rent

Limit having employees on-site to the

surfaces of vacant units between each

Forbearance Agreement. Owners must do

level necessary to maintain Minimum

showing. Do not schedule open houses

what they can to assist tenants during this

Basic Operations (e.g., processing rents

or appointments with more than one pro-

unsettling time in our history. Please ac-

and payroll, handling service requests

spective resident at a time.

tively engage every resident who expresses

for urgent habitability issues).

Q. A tenant has asked about a

the inability to pay all or a portion of rent

CAA and SFAA recommend that

To the extent possible, limit the necessity for in-person rent payments and other resident requests by providing contactless methods for making rent payments and service requests (e.g., rent drop boxes, online

for the April through July time period (and

temporary rent reduction during the shelter-in-place order. How should I proceed?

perhaps beyond). Most agreements will

A. Before the COVID-19 crisis changed

tainly no one doubts that these hardships

state that the request emanates out of a tenant’s particular economic hardship, and cerexist. In this vein, please consult with your

portals for payment and requests). Note:

our world, owners were usually not asked

legal counsel to make sure the Forbearance

under state law, landlords cannot mandate

to temporarily reduce or forbear a tenant’s

Agreement is properly drafted to accurately

that tenants pay rent online, one option

rent. That reality has now changed, as

reflect the intentions and needs of both the

other than electronic or cash payments

unemployment numbers are off the charts

owner and tenant. The agreement should

must be provided.

and incomes are drying up. Rent Board

at a minimum state the nature of the ten-

decisions in the past have held that where

ant’s financial hardship and whether rent is

Cease non-essential maintenance and re-

a landlord agrees to temporarily reduce

being reduced but the reduced amounts are

pair work (e.g., continue to fix overflowing

a tenant’s rent due to genuine financial

being paid back at a later time, being for-

toilets and broken heaters, but don’t move

hardship specific to the tenant, the owner

given outright, or being partially forgiven

forward with plans to repaint walls for cos-

may restore the prior base rent after giving

with arrearages to be paid back in subse-

metic purposes and upgrade appliances).

written notice to the tenant. Restoration

quent months. In addition, the duration of

of the prior rent does not affect the ten-

the rent forbearance, rent reduction, and/or

Inform residents of limited staffing and

ant’s anniversary date for the purpose of

rent forgiveness periods should be clearly

contact information for urgent mat-

future rent increases. Examples of tenant

specified. Do not get stuck on demand-

ters. CAA recommends using multiple

hardship included a job loss, an increase in

ing “proof” that the tenant is experiencing

methods of communication to ensure

expenses, or even losing a roommate that

hardship. Yes, you are permitted to request

residents are informed of the changes (e.g.,

was helping to pay rent.

verifiable documentation evidencing the loss of income, but please be very accom-

sending both an email and placing a sign in the office window/door).

However, rent reductions based upon

modating and humane throughout these

weakening market conditions are usually

difficult times.

Contact your vendors (e.g., plumbers, ex-

deemed to be permanent. For example,

terminators) regarding their availability to

if a tenant threatens to vacate because a

respond to emergencies to determine if you

comparable unit somewhere else nearby is

need to make alternative arrangements.

renting for less, and the owner reduces the

MAY 2020 | SF APARTMENT MAGAZINE

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.

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SF APARTMENT MAGAZINE | MAY 2020

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May

June

MONDAY, MAY 4

THURSDAY, MAY 7

MONDAY, JUNE 1

THURSDAY, JUNE 4

Board of Directors Mtg.

Seismic Passthroughs

Board of Directors Mtg.

Nuisance Tenants Class

11:30 a.m.

Fort Mason Center

11:30 a.m.

Fort Mason Center

2A Marina Blvd, Bldg. C, RM#205

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

Members $65 Non Members $85

WEDNESDAY, MAY 13

TUESDAY, MAY 19

WEDNESSDAY, JUNE 10

TUESDAY, JUNE 16

Hoarding In Your Unit

Bed Bug Class

Passthrough 101 Class

Tenant Occupied

Fort Mason Center

Properties Class

2A Marina Blvd, Bldg. C, RM#205

Fort Mason Center

2:00 p.m. to. 4:30 p.m.

2:30 p.m. to. 5:00 p.m.

5:30 p.m. to. 8:00 p.m.

2A Marina Blvd, Bldg. C, RM#205

Members $65 Non Members $85

6:00 p.m. to. 8:30 p.m. Members $65 Non Members $85

TUESDAY, MAY 26

WEDNESDAY, MAY 27

THURSDAY, JUNE 18

TUESDAY, JUNE 23

Master Tenants, Subtenants

Habitability Issues Class

Landlord Communication &

AB1482 Statewide Rent &

& Roommates Class

Fort Mason Center

Documentation Class

Eviction Controls Overview

Fort Mason Center

2A Marina Blvd, Bldg. C, RM#205

Fort Mason Center

2A Marina Blvd, Bldg. C, RM#235

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

2A Marina Blvd, Bldg. C, RM#235

2A Marina Blvd, Bldg. C, RM#205

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

Members $65 Non Members $85

2:30 p.m. to. 5:00 p.m.

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

Members $65 Non Members $85

Members $100

SFAA MEMBER MEETINGS ON HOLD UNTIL FURTHER NOTICE DUE TO THE CORONAVIRUS.

WEDNESDAY, JUNE 24

TUESDAY, JUNE 30

Reasonable

Security Deposits Class

Accommodations Class

Fort Mason Center

2A Marina Blvd, Bldg. C, RM#205

2A Marina Blvd, Bldg. C, RM#235

2:00 p.m. to. 4:30 p.m.

Members $65 Non Members $85

IN THE MEANTIME, SFAA WILL HOST VIRTUAL LEGAL Q&A’S ON THE WEBSITE, WWW.SFAA.ORG.

MAY 2020 | SF APARTMENT MAGAZINE

Members $65 Non Members $85

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

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.”

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

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%

PERIOD

AMOUNT

03/01/14 - 02/28/15

1.0%

03/01/20 - 02/29/21

2.2%

03/01/13 - 02/28/14

1.9%

$22.50

Please note that the maximum you can charge a tenant for screening services is $49.12.

03/01/19 - 02/29/20

2.2%

03/01/12 - 02/28/13

1.9%

2016-2017

$20.00

CONTACT INTELLIRENT FOR MORE INFORMATION:

03/01/18 - 02/28/19

1.2%

03/01/11 - 02/29/12

0.5%

2015-2016

$18.50

03/01/10 - 02/28/11

0.1%

2014-2015

$18.00

2013-2014

$14.50

2012-2013

$14.50

2011-2012

$14.50

03/01/11 - 02/29/12

0.4%

2010-2011

$14.50

03/01/10 - 02/28/11

0.9%

2009-2010

$14.50

2018-2019

$22.50

2017-2018

2008-2009

$14.50

2007-2008

$13.00

2006-2007

$11.00

2005-2006

$10.00

2004-2005

$11.00

2003-2004

$21.50

2002-2003

$21.50

415-849-4400

03/01/17 - 02/28/18

0.6%

03/01/16 - 02/28/17

0.2%

03/01/15 - 02/29/16

0.1%

03/01/14 - 02/28/15

0.3%

03/01/13 - 02/28/14

0.4%

03/01/12 - 02/28/13

0.4%

03/01/09 - 02/28/10

3.1%

03/01/08 - 02/28/09

5.2%

03/01/07 - 02/29/08

5.2%

03/01/06 - 02/28/07

3.7%

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 | MAY 2020

sfaa professional

services directory 1031 TAX DEFERRED EXCHANGE SERVICES

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

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

GOLDSTEIN, GELLMAN, ET AL, LLP Brett Gladstone 415-673-5600 x 238 www.g3mh.com

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

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

HERZIG & BERLESE Barbara Herzig bherzig@hbcondolaw.com

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

ALARM COMPANY

JACOBSON LAW PC Isaac@jacobsonlawsf.com 415-421-0100

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

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

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

415-861-8800

MAY 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 www.scent-tek.com

415-933-0879

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

ENVIRONMENTAL CONSULTING

A-1 CERTIFIED ENVIORNMENTAL TESTING/DUCT CLEANING Carl Gibbons 888-217-2719 chelseap60@hotmail.com a-1certifiedenvironmentalservices.com OPTIMUM INSPECTION Elad Gal 510-590-1758 info@optimummoldinspection.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

CENTER FOR SUSTAINABLE ENERGY Sarah Bliss 858-633-8099 sarah.bliss@energycenter.org

BELL FIRE AND LIFE SAFETY Marc Belluomin 650-580-5306 bellfire365@gmail.com

EDRINGTON AND ASSOCIATES Steven Edrington 510-749-4880 steve@edringtonandassociates.com

COMMERCIAL FIRE PROTECTION, INC. Laine Sims 925-300-9534 www.fireprotected.com

CONTRACTORS

MAZZY’S FIRE PROTECTION Scott Mazzarella 415-665-5553 www.mazzysfire.com

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

CORPORATE RENTALS AMSI Robb Fleischer www.amsires.com

415-447-2020

GOROVERGO Laura Ericson 832-977-6830 laura.ericson@echemail.com www.gorovergo.com

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

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

BIDDLE-SHAW INSURANCE SERVICES, INC Greg Holl 415-586-7200 www.biddleshaw.com COMMERCIAL COVERAGE INSURANCE AGENCY Paul Tradelius 415-436-9800 www.comcov.com GORDON ASSOCIATES INSURANCE SERVICES Dave Gordon, CLU 650-654-5555x6972 David.gordon@gordoninsurance.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 MAVEN MAINTENANCE, INC. Craig Lipton 415-829-2207 www.mavenmaintenance.com

SF APARTMENT MAGAZINE | MAY 2020

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

MORTGAGE BROKER

WEST COAST PROPERTY MANAGEMENT Joseph Keng 415-885-6970 ext. 101 www.wcpm.com

ONLINE PAYMENT SERVICES

MEDIATION

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

THE RINCON GROUP Casey Wright

IMANAGERENT Hatef Moghimi www.imanagerent.com

415-622-7450

916-547-0049

ORGANIC WASTE SOLUTIONS

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

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

415-799-3728

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

415-386-3111

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 50

MAY 2020 | SF APARTMENT MAGAZINE

415-589-3945

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

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

PLUMBING SERVICES

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

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 AMORE REAL ESTATE, INC Jerry Hsieh 415-567-4800 www.amoresf.com BORN PROPERTY MANAGEMENT Jason Born 650-271-7048 x 111 Jason@bornpm.com BERENDT PROPERTIES Craig Berendt craig.berendt@gmail.com

415-608-3050

BROOKFIELD PROPERTY GROUPPRESIDIO LANDMARK Jon King 855-327-5376 jon.king@brookfieldproperties.com

PRIME METROPOLIS PROPERTIES, INC. Tom Chan 415-731-0303 tomchan@pmp1988.com

STESSA Victor Perez www.stessa.com

626-524-4931

PROGRESSIVE PROPERTY GROUP Dace Dislere 415-794-9727 www.progressivesf.com

YARDI Kelly Krier kelly.krier@yardi.com

805-699-2040

CITYWIDE PROPERTY MANAGEMENT Carol Cosgrove 415-552-7300 www.citywidesf.com

PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen, Broker, CCRM, MPM®, RMP® 415-661-3860 www.propertymanagementsystems.net

YMPG MANAGEMENT Yelena Glezer 415-260-6325 yglezer@ympg-management.com

DEWOLF REALTY CO. INC. William A. Talmage www.dewolfsf.com

RAMSEY PROPERTIES Brian E. Ramsey 415-474-5175 Brian@RamseyPropertiesSF.com

CHANDLER PROPERTIES Carolyn Chandler 415-921-5733 www.chandlerproperties.com

415-221-2032

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

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

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

EBALDC Felicia Scruggs FScruggs@ebaldc.org

510-287-5353

ROCKAWAY RESIDENTIAL MANAGEMENT KristineAbbey 650-290-3084 kristine@rockawayresidential.com

EQUITY ONE Brenda M. Obra www.equity1sf.com

415-441-1200

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

GAETANI REAL ESTATE Paul Gaetani www.gaetanireality.com

415-668-1202

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

ALAIN PINEL INVESTMENT GROUP Jay Greenberg 415-593-8615 www.aprinvestmentgroup.com

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

ALAIN PINEL INVESTMENT GROUP Mirella Webb 415-814-6699 mwebb@apr.com

SIERRA PROPERTY PROFESSIONALS Sonali Herrera sierrappinc@gmail.com

BAY AREA PREMIER PROPERTIES Peter Fisler 415-606-6621 www.bayareapremierproperties.com BIG TREE PROPERTIES Evan Matteo 415-305-4931 evan@bigtreeproperties.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

REAL ESTATE BROKERS & AGENTS

ALAIN PINEL INVESTMENT GROUP Mark Bonn 415-614-4354 mbonn@apr.com

HANFORD•FREUND & CO. J. Timothy Falvey www.hanfordfreund.com

415-981-5780

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

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

415-237-6240

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

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

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

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

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

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

INCOME PROPERTY SPECIALISTS Clayton Llewellyn 408-446-0848 www.ipsmanagement.cc JAMES D. MULLIN REAL ESTATE BROKER James D. Mullin 415-470-0450 jamesdmullinre@gmail.com 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

W. PROPERTY MANAGEMENT Gary Petrison 707-545-6187 gary@wpropertymanagement.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

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

SF APARTMENT MAGAZINE | MAY 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 +

$3.95 per unit =

TOTAL UNIT AMOUNT:

415-386-3111

WEST & PRASZKER REALTORS Michael Klestoff 415-312-2245 klestoffmre@aol.com ZEPHYR COMMERCIAL Terrence Jones 415-786-2216 terrence@terrencejonesSF.com www.terrencejones.com ZEPHYR REAL ESTATE Dawn Cusulos 415-678-8854 dawncusulos@zephyrre.com

TOTAL AMOUNT:

REAL ESTATE INVESTMENTS ALAIN PINEL INVESTMENT GROUP Trigg Splenda 415-593-8616

CONTACT INFORMATION Contact Person

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

Company/Title Address City

State

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

Zip

Mobile Phone Email Address

REFINISHING / RESURFACING SERVICE

Website PAYMENT METHOD Amex

Visa

3 Digit Security Code

Card #

Expiration Date

Cardholder Name

Billing Zip Code

Authorized Signature

Date

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

MAY 2020 | SF APARTMENT MAGAZINE

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

HOW DID YOU HEAR ABOUT US?

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

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

ASSOCIATE MEMBER DUES: $495

Check

PACIFIC UNION COMMERCIAL Stephen Pugh spugh@pacunion.com

TOUCHSTONE COMMERCIAL PARTNERS Matthew Gorman 415- 539-1118 mattgorman@tcpre.com

TOTAL AMOUNT:

Base Fee

NEWMARK KNIGHT FRANK Matthew C. Sheridan 415-273-2179 aptgroupsf.com

STEELE PROPERTIES Ryan Steele 415-881-7762 www.steeleproperties.com

MANAGEMENT COMPANY DUES Units

MARCUS & MILLICHAP Sanford Skeie 415-625-2153 www.marcusmillichap.com

SHAMROCK REAL ESTATE COMPANY Trent Moore 415-359-2400 www.shamrocksf.com

REGULAR MEMBER DUES Units

MARCUS & MILLICHAP David Nelson 415-312-2245 dnelson@MarcusMillichap.com

REAL MANAGEMENT COMPANY Melinda Greene 415-230-8895 www.RMCsf.com RENT BOARD PASSTHROUGHS Kim Boyd Bermingham 415-333-8005 www.rentboardpass.com

RENTAL LISTING SERVICES AIRBNB Lorie McBrien lorie.mcbrien@airbnb.com www.airbnb.com

949-422-7166

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

RESIDENTIAL LEASING

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

415-648-1516

CONTRACTOR OR VENDOR?

ARCHITECTURE & DESIGN SERVICES

Openscope Studio

REAL ESTATE BROKERS

ATTORNEYS

CONSTRUCTION & RENOVATION SERVICES

One Stop Maintenance W. Charles Perry West Coast Premier Construction

55 58 56

FIRE ESCAPE SERVICE

Great Escape Fire Escape

LOCKSMITHS

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

Crown Lock & Safe Warman Security

57 57

PAINTING CONTRACTORS

Kruit Painting Pac West Painting

38 57

SECURITY

562-712-7504

Rent Board Passthroughs

Amore Real Estate 56 Colliers / DeVincenti 2 Compass 25 Compass / Antonini 13 Compass / Bonn & Webb 29 Compass / Filly 11 Compass / Greenberg & Splenda 3 Compass / Hatvany 43 Compass / Pugh 17 Kay Properties & Investments, LLC 21 Kenney & Everest 54 Marcus & Millichap 26-27 Newmark Knight Frank / Sheridan & Boersma 59 Vanguard Commercial / Chapleau 9 Vanguard Properties / Stack 55 Vanguard Properties / Kilby Stenkamp 38 Zephyr / Terrence Jones 15 UTILITIES BILLING SERVICES

Livable 41

PETITION SERVICES

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

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

Fried & Williams LLP 415-509-3456

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

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PROPERTY MANAGEMENT & MAINTENANCE & RESIDENTIAL LEASING

Berendt Properties 6 Gaetani Real Estate, Inc. 60 Maven Maintenance 35 Real Management Company 58 Rentals in SF 35 West Coast Property Management 45 Yardi 18-19

Acceptance of an advertisement by this magazine does not necessarily constitute any endorsement or recommendation by SFAA, express or implied, of the advertiser or any goods or services offered. Advertisers in red are Associate Members of SFAA.

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

510-495-1575

SEISMIC RETROFIT & STRUCTURAL ENGINEERING

BAI CONSTRUCTION Behnam Afshar www.baiconstruction.com

510-595-1994

SGDM, LLC George Mak www.sgdmllc.com

415-462-0619

STEEL CORE BUILDERS, INC. Shahram Ghodsian 415-331-0500 www.steelcorebuilders.com W. CHARLES PERRY Charles Perry www.wcharlesperry.com

650-638-9546

SF APARTMENT MAGAZINE | MAY 2020

Acquisitions & Sales • Commercial & Residential Leasing

WEST COAST PREMIER CONSTRUCTION, INC. Homy Sikaroudi, PhD, PE 510-271-0950 www.wcpc-inc.com

SUBMETERS ●

●

LIVABLE Daniel Sharabi www.livable.com

Commercial Leasing

TENANT PLACEMENT & LISTING

Residential Leasing Property Acquisitions Property Sales

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

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

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3/3/19

415-937-7283

6:34 PM

REALPAGE Stacy Blackwell www.realpage.com

972-820-3015

RENTALS IN S.F. Jackie Tom www.rentalsinsf.com

415-409-3263

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com SUPER-TENANT Ashwin Chandra ash@super-tenant.com

415-309-9356

ZUMPER INC. Diana James diana@zumper.com

949-702-1508

WATER CONSERVATION SERVICE

SF PUBLIC UTILITIES COMMISSION Chandra Johnson 415-554-0704 www.conserve.sfwater.org

WATER DAMAGE SERVICE

FIRE AND WATER DAMAGE RECOVERY Maria Neumann 800-886-1801 www.waterdamagerecovery.net

WATERPROOFING

Keeping The San Francisco Bay Area Safe Since 1988

FIRE ESCAPE SERVICE & MAINTENANCE

CMY

Safety is our Top Priority

FREE ESTIMATES

(415) 566-1479 www.greatescapeinc.com

MAY 2020 | SF APARTMENT MAGAZINE

KELLEY PAINTING AND WATERPROOFING Mitchell Kelley 415-847-7883 www.kelleypaintingandwaterproofing.com

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.

A game. Be on your

The Sheridan Report… continued from page 16

it’s dwindled down substantially—only a

Passthroughs

few inquiries a day.”

PAY!

below-market unit becomes vacant, the 10% -increase cap under the emergency

“The market is relatively dead,” said Chris

order could apply. These units are being

Collis of Gateway. “Nobody is being hired

left off the market now—for good reason,

or moving here right now—in fact, some

as no one would lock in rent controlled

folks are getting out of town.” In this un-

rents at far-below market pricing. Unfortu-

precedented time in San Francisco, he says

nately, this is having the opposite effect of

people already think the rents are going to

the desire to add more housing supply to

drop. As one of the founders of the Profes-

the market. The owner would like to see

sional Property Management Association

• Soft Story/Voluntary Seismic

a change to the anti-gouging laws so they

of San Francisco, he’s seen the city change

don’t apply to vacant units.

over many decades. But now, he doesn’t

• General Capital Improvements • Operating and Maintenance

think San Francisco will be the same. “I

and also

“The policy is not helping the housing situ-

don’t expect it to go back to the status

ation,” opined Gaetani. He is telling owners

quo—but there’s no place like San Francisco

to hold off on putting newly vacant units,

in the world, and that will remain.”

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.

which previously had low rents, on market. “Since the anti-price gouging went into ef-

San Francisco Mayor Breed, who cou-

fect, we can’t ask for more than 10%—it’s a

rageously stepped up and ordered the

form of vacancy control.”

shelter-in-place, and quickly implemented

Operations and management of apart-

tives early in the crisis, can play a pivotal

ment houses are far from normal these

role in our lives during this dire time.

days. Leasing is done virtually through

“We need someone to raise out spirits”

videos or apps, maintenance is restricted

declared Collins. “I would like to see the

to emergency or habitability matters, and

mayor as a cheerleader for San Francisco,

final walk-throughs are done privately with

showing the way.”

Call us today at

415-333-8005

to find out how you can benefit.

numerous health and economic direc-

masks and gloves on. We’re in this together. For the time being, The biggest question for everyone in the

we must shelter in place, work on restarting

industry is what are residential rents going

the engines of the economy, help our neigh-

to do? The brief evidence to date is “drop.”

bors and community, show compassion

Asking rents had been essentially flat over

and flexibility, while remaining steadfast

the last few years, barely keeping up with

in our hope for a recovery. As Bob Dylan

inflation. While efforts are being made to

penned recently: “Stay safe, stay observant

stop the spread of COVID-19 and flatten

and may God be with you.”

the curve, there is little evidence it can be wiped out or won’t return in another season. No one can say at this point when and if the economy will return to normal. It is a

ONE STOP MAINTENANCE AND PROPERTY SERVICE

Matthew C. Sheridan is an apartment building specialist with Newmark Knight Frank and is the emeritus editor and publisher of this magazine. He can be reached at 415-273-2179.

One Stop Maintenance and Property Service provides quality service solutions for both commercial and residential clients—guaranteed! We provide a superior level of painting, cleaning, janitorial, and handyman services to many satisfied customers.

safe bet that the rental market will contract here. Jobs have always been the driver of the rental market. And as the California’s Employment Development Department

Mike Stack

Real Estate Advisor

releases the payroll gains or losses each month—evidence of the severity of the

Call or email me today for a free &

private analysis of

employment losses will become clear. The

your property’s value,

numbers are already staggering.

it’s never too early to get started.

“The market changed to a tenant’s market overnight,” reports Jackie Tom, of Rentals is SF. “There was an instant halt in the market, very few calls or emails. We used to get hundreds of calls and emails, but

415.580.9095 mikestack@vanguardsf.com MikeStackSF.com DRE# 01932 2 8 0

SF APARTMENT MAGAZINE | MAY 2020 MikeStack_Ad.indd 1

1/30/20 2:24 PM

The News… continued from page 10

Please regularly check your apartment building’s bins and containers to ensure the recycle, compost, and landfill are not overflowing and are properly sorted. To prevent overflow, maximize the volume offered by your current three bin system. If you still need additional service, consider adding an extra pickup date or additional bins.

FOR ALL YOUR REAL ESTATE NEEDS

While monitoring the bins for overflow,

SERVING SAN FRANCISCO PROPERTY OWNERS FOR OVER 50 YEARS

recycle, compost, and landfill signage in

this is also a great opportunity to check the the apartment building’s refuse area to promote proper sorting. If you need to update

SALES INVESTMENTS PROPERTY MANAGEMENT

the posters, please contact Recology and signage will be delivered by mail. Apartment residents may also be using this time to do some spring cleaning. Another method to prevent overflow of large bulky items in the bins is to encourage residents

3001 LAGUNA STREET, SAN FRANCISCO CA 94123 (415) 567-4800 www.amoresf.com

to utilize Recology’s free Bulky Item Recycling program, which allots each apartment unit one free pickup per year. We are proud to say Recology currently has sufficient staffing levels to continue to provide this popular service at this time.

License No. 797467

Seismic & General Contractors

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

Conform To New Soft Story Apartment Building Seismic Ordinance San Francisco, Alameda, Oakland & Berkeley • Successful track record of seismic retrofitting numerous soft-story apartment buildings in the Bay Area.

Thank you for doing your part to make sure Recology can continue to provide recycle, compost, and landfill services to our community.

Property Tax Payments Delayed After hearing from SFAA members, the Board of Supervisors passed a resolution to allow for property tax payments to be delayed until until May 4, 2020. Taxpayers who are unable to pay their property taxes due to COVID-19 by May 4 should fill out

• Years of experience in cost-effective seismic retrofit design and construction—all under one company.

a penalty waiver form (sftreasurer.org) to

• Guaranteed approval of engineering and construction in conformance to Soft Story Ordinance.

Rent Forbearance

• Screening, evaluation, engineering, construction, final city sign-off.

tions, turn to “Just Adjustments” on page

request that their late fees be waived.

For information on temporary rent reduc36 and “Temporary Rent Reduction Agreements” on page 40. You can download the Rent Forbearance Payment Agreement at www.sfaa.org.

For inquiries, please contact Homy Sikaroudi, PhD, PE

1 56sf.1013.west.coast.premier.indd MAY 2020 | SF APARTMENT MAGAZINE

9/18/13 12:32 PM

SFAA Updates Temporary Rent Reductions: To learn how to proceed with temporary rent reductions, turn to “Just Adjustments” on page 36 and “Temporary Rent Reduction Agreements” on page 40. You can download the Rent Forbearance Payment Agreement at www.sfaa.org.

Annual SFAA Trade Show: The event has been rescheduled to July 23, 2020 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 effectiveness at the free educational classes, and meet peers in the San Francisco rental property market. The event is free and open to the general public, so bring your friends and enjoy! For more information on the tradeshow or to become a sponsor, contact vanessa@sfaa.org.

SFAA 2020 Lease: SFAA members can pay to access, email and print the SFAA

SLP_SFApt_Ad_0813_Shwiff_SFaptAd_0813 8/19/13 3:

Residential Lease Agreement online. EXPERTISE

Virtual SFAA Classes and Member Meetings: SFAA is happy to announce

■

INTEGRITY ■ SERVICE

■

VALUE

that current CCRM students can continue their education during the shelter-in-place from home. We understand keeping up your education is crucial and want to assist our members to stay up to date. Thus we will be setting up more webinars in the future. See the calendar on page 46 for a full list of classes.

For All Your Security Needs Since 1916

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Intercom & Phone-Entry Systems

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SF APARTMENT MAGAZINE | MAY 2020

BETTER BY DESIGN info

Seismic Retrofits

New ADUs & Legalize UDUs

ADA Compliance

Gas, Electric & Heating Upgrades

1 Bedroom to 2 Bedroom Conversions

Balcony Repairs

Window & Facade Replacement

cha

rles

per

ry.c

415

.509

.295

W. CHARLES PERRY & ASSOCIATES ARCHITECTURAL ENGINEERING & CONSTRUCTION MANAGEMENT

MAY 2020 | SF APARTMENT MAGAZINE

DEVELOPMENT OPPORTUNITY

LOT C LOT B

More Good Ones — Just Listed! Remarkable opportunity to develop housing in San

• Lot B: $1,100,000 (4 Unit Potential)

Francisco’s revitalized Bayview neighborhood. Zoned

• Lot C: $900,000 (3 Unit Potential)

RM-1, the two adjacent parcels are unentitled and up

• 2 Adjacent, Ready to Build Parcels

to seven condominiums can be constructed (roughly

• Lots Sold Together or Separately

12,800 sq ft). Walking distance to Muni Metro’s T

• Zoned RM-1

Line and San Francisco’s South Basin Waterfront, the

• In SF’s Designated Opportunity Zone

parcels are just a few blocks from the Lennar Corp’s

• 5,581 Sq Ft Lot Comprised of 2 Parcels

housing project: The San Francisco Shipyard.

www.bayviewlots.com

MATTHEW C. SHERIDAN

415.273.2179 License 01390209 matthew.sheridan@ngkf.com

aptGroup

“GAETANI HAS BUILT A WHOLE NEW LEVEL OF TRUST BETWEEN US AND OUR TENANTS” – HANS HANSSON, PRINCIPAL, STARBOARD COMMERCIAL REAL ESTATE

At Gaetani, every property we manage is built on a foundation of trust between landlords and tenants. We know how important attracting and retaining good tenants is for a commercial building to be profitable, which is why we operate in a transparent, respectful, and professional manner. It’s something we’ve been doing for over 70 years and three generations of dedication to the profession — because capitalizing on trust is the smartest investment there is.

PROPERTY MANAGEMENT gaetanirealestate.com 415.668.1202