July 2022 SF Apartment Magazine by sfaa1917

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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.

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SF APA SF APARTMENT

contents

Features

Living in 3D

by MOLLY VAN CAMPEN & SANKARSHAN MURTHY

Water Warriors by DEBORAH CHILVERS

Water Wise by LIVABLE CONTENT TEAM

20 4

JULY 2022 | SF APARTMENT MAGAZINE

PARTM Columns

Membership

Fill the Bill

Roommate Stalemate

The News

Surreal Estate

Legal Q&A

Calendar

by VARIOUS AUTHORS

Professional Services Directory

Try Your Patience

Sacramento Report

by JUSTIN E. GOODMAN

Out With the Bad

by DEBRA CARLTON

Membership Application

Debits & Credits Sunny Side Up by JOHNSON LE, CPA

SF APARTMENT MAGAZINE | JULY 2022

ANYONE CAN MANAGE YOUR PROPERTY. WE’D RATHER PROTECT YOUR INVESTMENT. Vertex Property Group 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. Leasing • Management • Project Management Vertex Property Group • 545 Francisco Street • San Francisco, CA • 94133 • 415.608.3050 • Vertexsf.com

JULY 2022 | SF APARTMENT MAGAZINE

magazine

SF APARTMENT

San Francisco Apartment Association Office 265 Ivy Street San Francisco, CA 94102 Tel 415-255-2288 Fax 415-255-1112

Email memberquestions@sfaa.org Web www.sfaa.org

SFAA Staff Executive Director Janan New

Deputy Director Vanessa Khaleel

Education Specialist Stephanie Alonzo

Government and Community Affairs Charley Goss

Marketing Lara Kisich

Member Services Gershay Castaneda

Accountant Crystal Wang

SFAA Officers President Chris Bricker

Vice President Robert Link Treasurer Jim Hurley

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

VOLUME XXXV, NUMBER 7 JULY 2022 Published by San Francisco Apartment Association Publisher Vanessa Khaleel Editor Pam McElroy

Art Director Jéna Safai

Production Manager Cameron Shaw Tel 415-392-3770 or 415-255-2288 Web www.sfaa.org

SF Apartment Magazine (ISSN 1539-8161) Periodicals Postage Paid at San Francisco, California and at additional mailing offices. POSTMASTER: Send address changes to the SF APARTMENT MAGAZINE, 265 Ivy Street, San Francisco, CA 94102. The SF Apartment Magazine is published monthly for $84 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 Printing Partners Copyright @2022 by SFAA.

Dave Wasserman

SF APARTMENT MAGAZINE | JULY 2022

COLUMN

THE NEWS

The proposal would clarify elements of this law, which makes it illegal to increase the price of many consumer goods and services, including that of rental housing, by more than 10% above pre-emergency levels when the

Fill the Bill

president, governor, or local officials

The State Senate approved a pair of CAA-sponsored bills that aim to help more rental property owners recover from the COVID-19 pandemic.

Although states of emergency are designed to expire after 30 days, both California and local governments often extend declarations multiple times, sometimes for years, without making it publicly known. This causes confu-

he state Senate approved a

and whose tenants either won’t cooper-

sion for landlords attempting to deter-

pair of California Apartment

ate in the ERAP application process or

mine whether a local, state, or federal

Association-sponsored

don’t qualify for the assistance.

emergency declaration applies to their property.

bills that together—once

passed by the state Assembly—would

Under California’s COVID-19 eviction

help more landlords recover from the

moratorium, tenants who failed to pay

To remedy this issue, SB 1133 would

COVID-19 pandemic and clarify how

their rent were protected from evic-

require California’s Office of Emer-

California’s anti-price-gouging law

tion if they claimed a pandemic-related

gency Services (CalOES) to post on its

applies to rental housing after emer-

financial hardship. Many landlords have

website all emergency proclamations

gency declarations.

since learned that their nonpaying ten-

by the President, Governor, and Cali-

ants continued to work or otherwise

fornia local governments, and would

The Senate approved Senator Melissa

earn an income during the pandemic

prohibit penalties for noncompliance

Hurtado’s COVID-19 rent-relief bill on

and don’t qualify for rental assistance.

with Section 396 until the applicable restrictions are included on the Ca-

a vote of 36-0, and Senator Bob Archu-

lOES website.

leta’s emergency-related bill on a vote

Should SB 847 become law, landlords

of 37-1. Both proposals now head to

will need to provide evidence that they

the State Assembly.

applied for help through ERAP and did

SB 1133 would also address the overly

not receive funding or have a civil judg-

broad application of Penal Code Section

SB 847, by Hurtado (D-Sanger), would

ment against the tenant who has not

396. At present, all states of emergency,

offer financial relief to landlords who

paid, or both.

regardless of their type, trigger the 10% price cap on nearly all consumer goods

have been deprived of funds from

declare a state of emergency.

COVID-19 emergency rental assistance

SB 1133, written by Archuleta (D-Pico

program (ERAP).

Rivera), would help landlords comply

and services.

with California’s anti-price-gouging

For example, an emergency declaration

The bill would provide State dollars to

law, Penal Code Section 396, which is

prompted by a heat wave or citrus tree

rental owners who’ve gone without rent

triggered during states of emergency.

disease—which have no impact on the

JULY 2022 | SF APARTMENT MAGAZINE

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M U LT I -U NI T. MI XE D-U S E . CO M M ER CI A L.

JU ST L I STE D

SF APARTMENT MAGAZINE | JULY 2022

DON’T MISS THE RENT BOARD REGISTRY DEADLINE You should have received a mailer from the San Francisco Rent Board with your Block/Parcel Number and a PIN unique to your property. If you haven’t yet, use this information to log into the Rent Board portal and register for the Housing Inventory. Property owners are encouraged to wait until they have received their PIN prior to attempting to register. Rules and Regulations to help implement the Housing Inventory have been submitted to the Rent Board Commission. SFAA will need members to call into the Rent Board Commission hearing tentatively scheduled for Tuesday, July 12, 2022 to support the suggested Rules and Regulations.

At present, Costa-Hawkins protects

submitted. In future years, owners will only

both new housing—built after 1995—

have to edit the information when changes

and single-family homes from local

occur with the property during the year,

rent control ordinances.

and then again for the required annual reporting. Eventually, the Portal will also be

The bill also overlooked existing safe-

used for other Rent Board filings, including

guards for single-family renters under the

petitions and documents.

California Tenant Protection Act of 2019, passed as AB 1482.

What’s Next: You should have received a mailer from the San Francisco Rent Board

In a letter opposing the bill, CAA said,

with your Block/Parcel Number and a PIN

“The state legislature has already ad-

unique to your property.

dressed this type of ownership by imposing rent caps on owners who hold

Use this information to log into the Rent

property as a real estate investment trust, a

Board Portal and register for the Housing

corporation, or a limited liability company

Inventory. Property owners are encour-

in which at least one member is a corpora-

aged to wait until they have received their

tion. The law also imposes just cause evic-

PIN prior to attempting to register.

tion requirements on these holdings. AB 1791 is not necessary.”

Rules and Regulations to help implement the Housing Inventory have been submit-

An earlier version of AB 1791 also attacked

ted to the Rent Board Commission. SFAA

California housing providers. Originally,

will need members to call into the Rent

AB 1791 proposed a $500 excise tax on all

Board Commission hearing tentatively

residential property, including rentals. Naz-

scheduled for Tuesday, July 12, 2022 to sup-

arian gutted that legislation and amended it

port the suggested Rules and Regulations.

to focus on Costa-Hawkins. For more information, visit the Rent Board’s housing market—still prompts a cap on rent

The above content was written by the

increases for the life of the declaration.

California Apartment Association and reprinted with permission.

Under SB 1133, if an emergency declara-

website at sfrb.org.

SFAA Annual Trade Show The San Francisco held its annual trade

responding rent cap may only continue

Rent Board Registry Deadline July 1, 2022

if it can be justified as relevant. To carry

Legislation to create a housing inventory

on the cap, the declaration must explain

was passed by the Board of Supervisors

why the underlying emergency has—or is

and became effective on January 18, 2021.

Attendees learned all about the latest

likely to cause—abnormal disruptions in

The legislation requires owners of residen-

trends, products, and services in the mul-

the rental housing market.

tial housing units in San Francisco to begin

tifamily housing industry from a long list

reporting certain information about their

of free educational classes and from the

units to the Rent Board by July 1, 2022. The

event’s sponsors and booth hosts.

tion lasts for more than a year, the cor-

Anti-Costa-Hawkins Bill Shut Down for 2022

show in May. The free and informative event was held in-person for the first time since 2019.

Rent Board will use this information to cre-

A bill that would have weakened the Costa-

ate and maintain a “housing inventory” of

The invaluable classes were led by

Hawkins Rental Housing Act has died for

all units in San Francisco that are subject to

the San Francisco Fire Department,

the year after failing to receive a single

the Rent Ordinance.

the Department of Building Inspection, the San Francisco Rent Board, the San

committee hearing in the State Assembly. Owners will be required to report the infor-

Francisco Bar Association, and Intellirent

CAA opposed the bill, AB 1791, written by

mation each year, using a form prepared by

Tenant Screening Services.

Assemblymember Adrin Nazarian (D-North

the Rent Board. The Rent Board is develop-

Hollywood), which would have authorized

ing a website, the Rent Board Portal (“the

“I love the SFAA trade show! It’s always

cities and counties to cap rent increases

Portal”), which owners will use to submit

well-intended. I get to see the decision-mak-

on single-family rentals, regardless of their

the required information online. Once a

ers I do business with along with future

age, if owned by corporations with ten

property owner initially reports informa-

clients. The biggest job I’ve done was from

rental units or more and with a specified

tion about their units, the system will main-

gross income.

tain the information that has already been

JULY 2022 | SF APARTMENT MAGAZINE

The News… continued on page 60

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SF APARTMENT MAGAZINE | JULY 2022

COLUMN

SURREAL ESTATE

Try Your Patience w r i t t e n b y J U S T I N E . G O O DM A N

When speedy procedures meet unavoidable delays.

nor could the landlord join other claims against the tenant. Simple enough? You’re forgetting about “res judicata.” It gives conclusive ef-

FAA’s housing providers oper-

However, even a former tenant had a

fect to a former judgment in subsequent

ate in a tightly regulated field,

right to possession (“at sufferance”)

litigation involving the same contro-

which scrutinizes how you ad-

until the landlord obtained a judgment

versy. A litigant doesn’t get two chances

vertise, who you select for ten-

for eviction. California recognized the

to prove a point. (In fact, some cases

ancy and why, the condition of the unit

strain on property owners, who had to

require a defendant to cross complain,

when you offer it, your obligations when

continue to pay their lender, country

or their claims are also barred in sub-

something goes wrong, your options

assessor, insurer, and utility provider,

sequent litigation.) This can be a harsh

when some but not all tenants leave, etc.

whether or not rent was coming in. In

rule, but it’s generally a simple one in

the mid-19th century, our legislature

regular litigation. But the five-day sum-

Many of these obligations are intui-

adopted “the unlawful detainer statutes”

mons resists other claims, and this leads

tive for the dutiful member these days,

to provide an adequate, expeditious,

to procedural nuance.

but they’re fairly contemporary in the

and summary procedure for regaining

broader scheme of real estate law. (Fair

possession of real property wrongfully

In the past, a common delay tactic was

housing law and the implied warranty of

withheld by a tenant.

for unlawful detainer defendants to challenge on the basis that the cause

habitability are roughly five decades old; modern rent control schemes are four

The benefit to landlords was the cre-

of action was for something other

decades old.) Of course, we can mea-

ation of the fastest civil lawsuit. (For

than unlawful detainer. By challeng-

sure the latest twists in months.

instance, a five-day summons instead of

ing strict procedural compliance, they

thirty, and a trial setting in twenty days,

tried to undermine the five-day sum-

Like ownership, a tenancy is an estate

instead of whenever the parties and the

mons, essentially defeating the claim.

in land, but it’s “reversionary”: once the

court happen to be ready.) But the land-

Tenants even welcomed a loss because

consensual nature of the tenancy ends,

lord had to pay for this privilege with

a jurisdictional challenge is indepen-

the right of possession should return to

“strict procedural compliance.”

dently appealable, sometimes costing the landlord months just to get them

the landlord. But both law and public

to cross-complain against the landlord,

policy increasingly treat a residential

The unlawful detainer statutes create a

to appear in court. (A 2021 Supreme

tenancy as a qualified life estate, where

“menu” of options for particular circum-

Court decision fortunately reined in

the rent-controlled tenant is owed high-

stances. (Defaults require a “three-day

this practice.)

level obligations, provided they honor

notice to cure or quit,” termination of

the basic bargain of their tenancy—pay

a month-to-month tenancy requires a

The classic exception to this rule is

rent and don’t commit nuisance.

30-60 day “notice of termination,” etc.)

where the person in possession is a

A rent demand notice cannot overstate

potential owner. Unlawful detainers

When this system functions normally,

the amount actually due. A termination

(UDs) strictly limit available defenses

the tenant receives safe, decent, and

notice should unconditionally demand

to those that would retain possession

sanitary housing—for their lifetime,

possession of an ascertainable property.

for the tenant. If the tenant is actually

if they choose—as long as they aren’t

Notices must be served according to

the rightful owner, they suddenly own

in default. But historically, possession

specified rules. These requirements can

the current and reversionary interest.

was only nine-tenths of the law, and a

be daunting (and are the bases for some

But litigating title in the UD would

landlord could control when the ten-

of the challenges described below). The

hamstring their preparation, and their

ancy ended, and when the reversion

reward is a brisk lawsuit about a single-

general civil lawsuit is too slow to save

was received.

issue: possession. The tenant wasn’t able

them. In this situation, courts can stay

JULY 2022 | SF APARTMENT MAGAZINE

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the UD or consolidate it with the slower

tenant inflicts on the landlord. The landlord

owner, so he wouldn’t have to terminate

action to avoid prejudice to the tenant’s

is therefore incentivized to settle while the

her tenancy, too. The jury never got to see

claim. Either way, the property owner

tenant is incentivized to delay.

the transfer, because interpretation of a contract (i.e., lease versus grant) is usually

loses their summary procedure. Costs of litigation generally inform par-

a question of law (for the court, not jury);

Contemporary legislative changes to the

ties’ choice of procedures and gambits.

that is, unless there was enough contex-

UD statutes enhance tenant protections

“Motions” (asking the court to do a thing)

tual evidence that the grant deed might

rather than hasten the landlord’s rem-

cost thousands of dollars. Prudent litigants

have been a sham transfer to avoid the

edy. A 2016 change masked cases from

bring them when they have a relatively high

obligations of the Ellis Act to withdrawal

public view (reducing incentive to timely

chance of success… except for San Fran-

all rental accommodations.

vacate). A 2019 change extended the

cisco tenants, who will bring a “demurrer”

“three-day cure” period by discounting

(a dispositive challenge to the complaint)

A rare counterpoint: A landlord served

weekends and holidays. And, of course,

in almost every case, regardless of merit.

a “relative move-in” notice to move his

the COVID-19 Tenant Relief Act (CTRA)

(It costs them nothing. It costs the landlord

mother into his duplex. He lost, because

effectively eliminated non-payment evic-

about a month of delay.)

an RMI owner must be a “natural person,” and he owned the property in his revoca-

tions through the second anniversary of Tenants who lose at trial have a strong

ble living trust. Easy enough fix: Transfer

incentive to appeal (even if meritless) and

title, and serve another 60-day notice. But

Legislation is more hostile at the local

request a “stay of eviction pending appeal”

this happened to be during the pandemic,

level. A mid-1970 Supreme Court decision

(which, while discretionary, allows the

when landlords couldn’t serve new evic-

upheld modern eviction control, suggest-

court to preserve the status quo before the

tion notices. It presented a rare oppor-

ing that the state strictly controls proce-

judgement is final). Conversely, a losing

tunity where incentives encouraged this

dure/timing of unlawful detainers, while

landlord may simply give up after a defense

landlord to take on the righteous fight and

cities can enact a short list of “just causes”

verdict, given the costs of appeal. (It often

establish case law to provide necessary

to terminate a tenancy, creating substan-

makes more sense for a landlord to start

support for others’ evictions. (The Court of

tive defenses to an eviction if a landlord

over on better facts.)

Appeal determined a living trust is merely

the pandemic.

a probate avoidance device and allowed

doesn’t have one. But even this neat distinction has recently eroded.

Meanwhile, prevailing landlords have an

the action to proceed.)

incentive to settle any time before the judgA 2018 case upheld San Francisco’s preven-

ment is final. The cases that don’t settle

How do property owners overcome these

tion of certain evictions where the tenant

are a self-selection bias of tough facts for

obstacles? Your SFAA lawyers build rela-

was an “educator,” and the notice expired

tenant forfeiture. Strict compliance ought

tionships with opposing counsel to avoid

during the school term. The court ac-

to strictly limit defenses, but courts have

game-playing. They establish impeccable

knowledged the procedural aspect but let

shown reluctance to foreclose the presen-

relationships with the court, so your posi-

substance control timing. In 2020, the San

tation of evidence to a jury, where it might

tions prevail in close calls. Your SFAA prop-

Francisco Superior Court upheld San Fran-

lead to a viable defense. So case law keeps

erty managers are prompt and responsive

cisco’s elimination of the procedure for

creating new ones: retaliation, discrimina-

to address habitability issues that might

a rent default eviction altogether (during

tion, the tenant’s claim of title, the inability

create defenses.

the pandemic). As of this submission, the

to demand rent in excess of rent control

San Francisco Superior Court is consider-

limits or for an unpermitted structure.

Patience in curating your claim will reduce time in the courtroom. Prudence in declin-

ing whether the City can place an arbitrary “ten-day cure” period in front of the UD

In a 2016 case, a tenant clearly breached—

ing weak cases will avoid ill-fated attempts.

statutes’ three-day notice to quit. (If up-

and did not timely cure—an obligation to

SFAA’s members stay at the forefront of

held, this would ironically prioritize local

obtain renters insurance. The landlord won

management best practices to maintain

procedure over state law substance.)

at trial, the tenant appealed, and the Court

long-term relationships with their tenants.

of Appeal reversed, deciding that the rent-

When these relationships break down,

Facing these headwinds, a landlord is

ers insurance obligation could not be mate-

their professionalism shows their resolve

wise to promptly commence and dili-

rial as a matter of law (i.e., is no longer up to

in advancing their meritorious claim to its

gently litigate. But the landlord is paying

debate in other cases).

conclusion. (And if this posture provokes a reasonable settlement posture along the

their attorney from commencement of the case—to draft and serve an eviction notice,

In a 2017 case, a landlord did everything

to file a complaint, to litigate against the

right in withdrawing his fourplex from the

tenant—while San Francisco tenants get

rental market and terminating a tenancy.

free, full-scope representation. Therefore,

He even granted a recorded interest to his

the longer the case, the more attrition the

friend (a former tenant) to make her an

JULY 2022 | SF APARTMENT MAGAZINE

way, all the better.) Justin E. Goodman is with Zacks, Freedman & Patterson and can be reached at 415-956-8100.

Dramatic Corner at Union & Steiner For Sale! 2277-2299 Union Street, San Francisco, CA 94123 Cow Hollow District

First Time on the Market in Over 40 Years Exclusively Offered By: Jeremy Blatteis 415.321.7493 jfb@brsf.co DRE #01460566

Celebrating Years 101 Montgomery Street, Suite 888, San Francisco, CA 94104 | t: 415.981.2844 | f: 415.981.4986 | info@brsf.co | DRE #01421282 This Statement with the information it contains is given with the understanding that all negotiations relating to the purchase, renting or leasing of the property described above shall be conducted through Blatteis Realty Company. The above information, while not guaranteed, has been secured from sources believed to be reliable. Blatteis Realty has not verified its accuracy and make no guarantees, warranty or representation regarding this information and it is published subject to the possibility of errors, omissions, changes of listing information including price, term, financing, or withdrawal without notice. We include projections, estimates, opinions and/or assumptions, for example only, and they may not represent current or future performance of the property. You should consult your tax and legal advisors before to verify the validity of estimates. All commercial or mixed-use property presented by Blatteis Realty is subject to local zoning codes and regulations. It is the sole responsibility and liability of tenants and property owners to obtain all applicable required building permits and/or certificates from the local city/town Planning Department before commercial property use can commence or a building can be built.

SF APARTMENT MAGAZINE | JULY 2022

COLUMN

DEBITS & CREDITS

Sunny Side Up placed-in-service date, a credit recapture

w r i t t e n b y JOH N S O N L E , C PA

is required. 100% of the credit is recap-

Get solar while the getting is hot.

tured after one full year, with a 20% sliding scale down to a 20% recapture in

s we roll through summer

so if you are planning on purchasing a

the fifth full year. This means you will be

months when property

home battery to store power generated

paying back the credit.

owners invest in renovat-

through your solar system in case of

ing and maintaining their

power outages, you may be eligible for

Business solar energy credits are sub-

additional savings.

jected to limitations under the invest-

rental or residential properties, tax planning is an equally important proj-

ment credits, which are then subjected

ect that often slips out of sight and

Investment Rental Properties

out of mind. If you have plans to make

The energy credit for solar property gen-

improvements to an existing roof,

erating solar energy is 26% of the basis

why not add solar shingles and take

of the solar property if construction be-

If a government subsidy is accepted,

advantage of the federal tax credit that

gins by December 31, 2022, per IRC §48.

there are no double benefits allowed.

will pay for a portion of the cost? There

to limitations under the general business credits.

A reduction of the cost by the subsidy

are plenty of opportunities for tax sav-

If planned properly, over a quarter of

amount is required before calculating

ings on solar; however, these opportu-

solar costs could be reclaimed through

the federal tax credit.

nities will not last beyond 2023, so let’s

tax savings. The percentage of credit

get to saving on some taxes

claimed will be dependent on the date

Unused solar credits may be carried

this summer!

construction begins, while the credit

back one year or carried forward for

will be claimed in the year the construc-

twenty years.

The Benefits of Green Improvements What can be said about green improvements that hasn’t already been said? The benefits include reduction of pollution and carbon footprints, savings from utility bills, government assistance provided in the form of tax credits and rebates, and many more. Well, have you thought about how green improvements could play a vital role in mitigating the environmental challenges faced by California today?

tion is completed.

Residential Properties as a Primary Residence or Vacation Home

Date Construction Begins

Credit

01/01/2021 - 12/31/2022

26%

Time is running out to claim the resi-

01/01/2023 - 12/31/2023

22%

credit. The REEP credit under IRC §25D

01/01/2024 and Beyond

10%*

* 10% solar energy credit is allowed for businesses after 2023 if the construction of the solar property begins during the above dates (pre-2024), though not yet placed in service before January 1, 2026.

For example, solar energy does not

Did you know that solar property is

require the use of water for energy cre-

categorized under the five-year property

ation; thus, green improvements could

classification and is eligible for bonus

play a significant role in combating the

depreciation? Bonus depreciation cur-

droughts that California faces.

rently allows for 100% depreciation in

dential energy efficient property (REEP) provides a federal tax credit for qualified property if placed in service by the following dates: Date Qualified Property Placed in Service

Credit

01/01/2021 - 12/31/2022

26%

01/01/2023 - 12/31/2023

22%

01/01/2024 and Beyond

2022, but decreases by 20% each year to What about the recent PG&E power outages that affected so many Californians

If the installation for the solar project is not completed and placed in service

electricity? The good news is there are

A word of caution on some limitations:

significant cost savings through federal

If your property is disposed of within

a reduced credit amount. A signed con-

tax credits and state incentive programs,

five years of the solar equiptment

tract is not enough; the solar property

who were dependent on power and

0% in 2027.

JULY 2022 | SF APARTMENT MAGAZINE

by December 31, then you will have to claim the tax credit in the next year at

tract is not enough; the solar property

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SF APARTMENT MAGAZINE | JULY 2022

COMMERCIAL

Call us for a FREE and confidential valuation of your property or to consult about your real estate needs.

CALIFORNIA NON-CONFORMITY TO FEDERAL TAX CREDITS Although California does not offer tax credits in the way that the Federal government does, there are many state incentive programs offering rebates and more. As state-sponsored programs are not handled through income tax returns, the seller of the solar properties generally will have more guidance than tax professionals. Listed below are some programs offered by California and San Francisco. CALIFORNIA: • Self-Generation Incentive Program (SGIP)

A. If your solar property is used to gener-

pool parties hosted after installing

ate electricity directly for your residence,

your new solar property will provide

primary or vacation, then install the solar

no tax benefit.

properties in a location away from your home! As long as your solar property is

Buy Versus Lease

connected to the grid through your local

Taxpayers who lease solar equipment

utility provider and generates electricity

are not eligible for the credit, because the

for your home, you are eligible for the

taxpayer must purchase the qualifying

tax credit.

property. The leasing company will claim

Q. I own a condo in a Homeown-

ers’ Associate that will allow solar property. Next steps?

A. Great news! You are entitled to claim a

ernment subsidies, including state and local rebates and other incentives offered. The benefit of a lease is that the lessee is not responsible for the maintenance or repairs of the solar property.

proportional share of the qualified installation expenditures, such as solar panels or

The term lengths of solar leases generally

solar shingles, paid by the condo manage-

run between 15 to 25 years. For planning

ment association.

purposes, should you decide to sell your property before the lease term ends, this

Nervous about recent power outages?

can add an obstacle in a sale. Depending on

• PACE (Property-Assessed Clean Energy)

Home batteries qualify for the solar energy

the solar provider, the options for selling a

credit, too, as long as the power stored in

property with a solar lease before a lease-

the home battery is integrated to and was

term ends would require one of the follow-

• Multifamily Affordable Solar Housing (MASH)

generated from your solar energy system.

ing: the purchaser takes over the lease, the

The recent power outages in California

lessee prepays the remaining payments,

due to wildfires have placed people in dire

or the lessee moves the solar system to the

situations and the federal tax credit can

new home (if allowed by the utility district

provide significant savings for what could

and utility company).

SAN FRANCISCO: • GoSolarSF • Graywater Rebate Program • California Solar Initiative (CSI) • NEM (Net Energy Metering) • Single-Family Affordable Solar Housing (SASH)

be an essential item.

Q. I’m planning to use 20% of my

primary or vacation residence for business. What do I need to know?

A. You should be aware that your solar credit may be limited, as only non-business

must be installed, placed in service, and

expenditures are eligible for the residential

connected to the utility grid by year-end.

energy efficient property (REEP) credit.

Are you planning on repairing or over-

Please note that although qualified solar

hauling a new roof? The costs of solar

water heating property, qualified solar elec-

panels and solar equipment installed as

tric property, qualified fuel cell property,

roofing materials, including solar roof

small wind energy property, and geother-

shingles, are eligible for the solar tax cred-

mal heat pump property are eligible for

its. If partially replacing a roof with solar

the solar-based credits, knowing what is

shingles, an allocation of the credit will

included in the calculation of the credit,

have to be performed. Only the solar roof

such as installation and labor, is just as im-

shingles portion will qualify for the credit.

portant as knowing what is excluded, such

Frequently Asked Questions

Q. I own a condo in a Home-

owners’ Association that doesn’t allow solar property. What are my options?

the federal tax credit and will keep the gov-

JULY 2022 | SF APARTMENT MAGAZINE

as repairs and maintenance. Lastly—and we hate giving you bad news— no credits are allowed for water heaters using solar energy for heating swimming pools, hot tubs, or jacuzzis. Those heated

These tax planning opportunities won’t be around for long, as Congress has already extended the federal solar tax credits once. Take advantage of the tax savings available to eco-conscious homeowners of residential and/or rental properties before they set to expire after 2023. This information is general in nature. As with anything tax-related, if you have questions or if any portion of the information presented seems unclear, please seek guidance from a tax professional. Luckily for you, our contact information is right on this page. Johnson Le is a CPA with Shwiff, Levy & Polo. For more information, visit slpconsults.cpa, email slp@slpconsults.cpa, or call (415) 291-8600.

Adding or legalizing a unit? Don't get started without the right team on your side.

AFTER

We remove doubt from the ADU process: • • • • • •

Feasibility Studies Financial Analysis Licensed Architect Inspection Services Multi-Family Specialists Rent and Eviction Control Experts

BEFORE

Visit adaptdwellings.com today for a sample Feasibility Study and ADU Guide (510) 319-9045 info@adaptdwellings.com An Edrington & Associates Company Member, SFAA and CAA

SF APARTMENT MAGAZINE | JULY 2022

Living in 3D With spatial and ecological concerns on the rise, new development is turning to threedimensional living.

Wr i t t e n b y MOL LY VA N C A M PE N & SA NK A RSH A N MURT H Y

Photos courtesy o f BU M B L E B E E & NOI S E

Photo this page courtesy of NOISE.

JULY 2022 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | JULY 2022

educing your carbon footprint isn’t

just about recycling or biking to work. Sure, every little bit helps, but our homes are one of the biggest offenders. How you live contributes immensely to your carbon footprint. Your choices at home matter more than driving an electric or internal combustion engine vehicle, more than using paper or plastic, and more than your political leanings. Think about all of the carbon that goes into creating your home. Construction materials (concrete is one of the biggest offenders), the transportation of materials, energy costs from construction labor, heating, cooling—then add to this the opportunity cost of land (every square foot we build on the planet is a square foot less for wilderness). From just the carbon footprint of construction, each 100 square feet of builtup construction embodies 3.6 metric tons of CO2 added to the atmosphere. But every household needs space to live well and thrive. A lot of our homes’ square footage goes unused. This precious space that comes at such a high cost to the planet is significantly wasted. Over 60% of one’s housing costs is typically spent on unused space when you look at the functional usage. Just look at the basic offenders: • Bedrooms unused ~16 hours/day • Closets unused ~23 hours/day • Offices unused ~18 hours/day • Living rooms unused ~18 hours/day We need these spaces to live comfortably, and it seems we need more and more space every day. We decided we don’t need one home office or walk-in closet in 2022—we need four or five! The demand for functions to be added to the home

JULY 2022 | SF APARTMENT MAGAZINE

How you live contributes immensely to your carbon footprint. Your choices at home matter more than driving an electric or internal combustion engine vehicle, more than using paper or plastic, and more than your politics.

SF APARTMENT MAGAZINE | JULY 2022

We create modular furniture affixed to the ceiling that comes to you only when you need it. This unlocks a volumetric use of space—cubic feet instead of square feet. 24

JULY 2022 | SF APARTMENT MAGAZINE

and lives there 24 hours a day, even if we need it only for minutes (if not a few hours). Unlocking the power of the ceiling has allowed Bumblebee to create spacious and incredibly efficient homes without the costs of land or construction. Bumblebee Spaces was cofounded in 2017 by Tesla and Apple veteran Sankarshan Murthy. Taking inspiration from Disney’s Mickey Mouse Clubhouse series, where Mickey and friends lived in different rooms of shape-shifting space, Murthy was influenced by set design and how theaters use lift systems to change entire scenes during a performance. Bumblebee was his personal side project that he spent time developing on nights and weekends while at Tesla. Bumblebee is now growing at an incredible pace in San Francisco, New York City, and other top cities where space is incredibly valuable. We have partnered with top developers to bring Bumblebee to iconic multifamily buildings and single-family homes, which allows a new way to live efficiently and a product mindset while providing an out-of-this-world user experience. The scale of the carbon and space problems is massive, one for our generation and the generations to come.Every day and across the planet, 200,000 people move to urban areas looking for housing. This move to urban centers, believe it or not, is an excellent thing for the planet. Humans are more efficient and consume fewer resources in cities. Density is good: the avkeeps increasing while there’s a signifi-

minimize the human footprint while radi-

erage NYC resident emits 17 % less (14,127

cant burden on the planet to reduce the

cally improving our living experience.

fewer pounds) of CO2 per year than the average suburbanite.

use of land and construction. We create modular furniture affixed to This is where Bumblebee Spaces is add-

the ceiling that comes to you only when

The burden for more space has only ac-

ing space without the cost of adding land

you need it. This unlocks a volumetric

celerated as quality of life improves. The

and construction to the planet. We are

use of space—cubic feet instead of

pandemic accelerated the need for better

productizing what is believed to be a fi-

square feet.

utility and more functions within the same footprint.

nite resource on the planet—space. Ceiling functionality is truly underutilized Based in San Francisco, Bumblebee

in our homes. Architecturally speaking,

Bumblebee can capture all of the space

Spaces focuses on changing how the

the ceiling (referred to as the sixth wall

necessities in a day without relying on

world lives, one human footprint at

by architects) is traditionally not even

square footage, offering an optimal liv-

a time. With the mission of making

considered when optimizing floor plans.

ing experience with more space to move

space for what matters, we are driven to

Typically, function is added to the floor

about freely. SF APARTMENT MAGAZINE | JULY 2022

WANT TO SEE MORE? Bumblebee is currently available in the San Francisco and New York condo and rental markets, and we are expanding nationwide. We are partnering with developers and homebuilders, and we recently extended our partnership with Bay Area Polaris, offering space upgrades at the new Serif project in San Francisco, as well as 188 West St. James and 2177 3rd Street developments. In New York City, Bumblebee has an active presence with Bjarke Ingel’s popular building The Smile and new installations at Rise and Nova. Local showrooms are available by appointment to see Bumblebee live.

DIRECT TO CONSUMER We’ve opened up direct to consumer pre-orders. After placing a pre-order, customers scan their own home using a smartphone, and Bumblebee’s design team creates the best fit for their needs. Our expert team will complete installation in 1-2 days, without construction.

The traditional home is not optimized

be designed. Why wouldn’t you live effi-

around the users. The more “features” we

ciently? Especially if it is also a better expe-

pack in, the less space we have for living

rience than the alternative?

because everything sits in two dimensions. We run into things in every room,

Bed

get stressed living with clutter, and have

The world’s most advanced bed, capable of

no space to live. And yet, we have a lot of

stowing a 10” mattress with bedding and

volumetric space that’s unused, packing a

pillows. Accented with champagne gold

whole lot of nothing.

bed feet for ergonomic access and built-in ambient lighting.

It affects the quality of life for many people who are forced to live in compromised

Desk

spaces, endure brutal commutes, or pay a

Bumblebee’s sit or stand desk can be sum-

considerable percentage of their income to

moned from the ceiling for work or stowed

find a housing solution that works for them.

away with all your work left intact. The desk is stabilized magnetically against the

Home efficiency profoundly impacts our

wall and comes with all the search and vi-

lives by the monthly cost we bear to live

sion functions.

in it. We spend, on average, over half our money just for shelter in productive cities.

Smart Storage

A majority of this will pay for the $/square

Store away all your belongings and never

foot (a two-dimensional metric in a three-

lose them again. Bumblebee’s storage

dimensional world).

photo-catalogs your objects so you can

Products

search for them anytime. Inspired by order and pride in one’s things, the boxes come

When you see Bumblebee for the first time,

with customizable storage dividers and

it’s an awakening experience in multi-

display trays.

functional (and three-dimensional) living as your room effortlessly transforms from

Workstation

spacious living to a dedicated home office,

A large work surface only when you need it.

Traditionally, the design approach for

bedroom, and walk-in closet. We’ve inte-

The exquisitely designed workstation offers

houses has been simple: Spread out the

grated technology and smart storage in a

generous space with multiple monitors and

footprint to add functions. Functions =

thoughtful way that inspires a self-organiz-

a sliding ergonomic keyboard rest. It dou-

rooms (living, bed, closet, kitchen, etc.). But

ing home. Everything is modular to fit the

bles as a nightstand complete with storage.

in places of high density, especially in desir-

needs of one’s space and lifestyle.

able locations in productive cities, that two-

Console

dimensional spread is a costly option. So,

Technology

we seem strapped for space. Of course, we

High-quality and sustainable design and

setup or a beautiful bench with storage.

are all familiar with this in San Francisco.

materials are at the forefront of Bumble-

The console doubles as a nightstand and

bee’s products. However, what truly sets

headboard with accessories built in.

The credenza for your home entertainment

However, when we start to think three-

us apart is the intelligence inside. With

dimensionally, we realize there’s tons of

Bumblebee’s technology, users can see

Safety

unused space in a house. Product designers

inside their storage on the go, search for

Bumblebee’s products are aware of their

call this volumetric efficiency.

physical objects, and make every storage

surroundings. Their privacy-first integrated

box FaceID safe. With over-the-air updates,

sensing system monitors the area below

Being confined to building in two dimen-

your space will continue to become more

moving units to ensure the area is clear

sions can be thought of as wasteful. If you

intelligent over time. The home becomes an

before lowering.

want a guest room to host family, an exer-

on-demand butler, organizing and trans-

cise room, a dedicated home office or play

forming the space for the needs of the user,

In Closing

area for your kids, we traditionally think

instantly and beautifully.

Bumblebee was born out of a deep sense

about adding on to our homes. And this

of responsibility toward our planet and an

space is only used occasionally. Adding a

Our current products consist of a queen

unwavering passion to solve the problem

Bumblebee bed, desk, or closet is consid-

bed, storage modules, ceiling desk, and

of housing. Our hope is that customers will

erably less cost- and time-consuming than

workstation. The roadmap is exciting. We

traditional construction.

believe this is how all homes will eventually

JULY 2022 | SF APARTMENT MAGAZINE

Living in 3D… continued on page 68

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SF APARTMENT MAGAZINE | JULY 2022

WATER WARRIORS Wr i t t e n b y

DE B OR A H C H I LV E R S

Everything you need to know about how SFPUC can help you get by—including rebates and free evaluations—with less water. The first four months of 2022 were the driest on record in California. Statewide precipitation was only about 25% of the average. As we head into summer, it’s important that all Californians stay focused on water conservation. The San Francisco Public Utilities Commission (SFPUC) declared a water shortage emergency in November 2021 and asked San Franciscans to reduce water usage by 5% and cut water waste. The Water Shortage Emergency Declaration also prompted a temporary 5% drought surcharge that became effective on April 1, 2022. The SFPUC is committed to working with property owners, managers, and tenants to help identify ways to conserve water and save money. We offer a robust suite of services and programs to improve your property’s water efficiency and lower your utility bills. This, in turn, helps us stretch our water supplies through dry times and continue to deliver vital city services today and for future generations.

Free Water Wise Evaluations The SFPUC offers free indoor and outdoor Water Wise evaluations. Over the past ten years, our free Water Wise Evaluation program has served more than 30,000 San Francisco apartment units and provided properties with comprehensive, site-specific recommendations to improve water efficiency. We offer in-person or virtual (phone or video call) evaluations that help identify inefficient plumbing fixtures that would benefit from replacement and locate leaking fixtures and irrigation parts such as sprinklers, valves, and tubing. Our technician reviews the flow rates and condition of toilets, clothes washing machines, showerheads, faucets, and irrigation systems. We provide property managers free water-efficient showerheads, faucet aerators, and toilet repair parts. Repairs for common household plumbing fixtures are usually simple, and, in some cases, the SFPUC’s inspector can fix them on the spot. Our technician reviews the property’s water use and, after the evaluation, provides a report of findings and recommended ways to reduce water use. After an initial Water Wise Evaluation, maintenance staff should conduct annual inspections, which are key

JULY 2022 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | JULY 2022

at myaccount.sfwater.org, an online plat-

at a minimum of every three to five years,

form for viewing water use, billing history,

depending on the wear. Building mainte-

and making account transactions. Our in-

nance staff should be trained to identify

To access any SFPUC tools, programs, and our new Drought Resource Guide:

vestment in automated meters enables us

problems in the tank, including the proper

to provide customers with timely and ac-

water levels and conducting dye tests to

curate information about water use down

identify failing parts.

Visit:

to the hourly level. Regularly checking

sfpuc.org/savewater

daily and hourly water use can help prop-

Email:

erty managers understand what is typical

waterconservation@sfwater.org

Free Plumbing Fixture Replacement Program (PREP)

or unusual for their building and what may

Water-efficient fixtures are among a prop-

Call:

reflect potential leaks or areas to improve

erty manager’s best tools for controlling

(415) 551-4730

water efficiency.

indoor water use. For a limited time, the

Stay in touch by following us on social media @myspfuc.

Building managers can monitor water

toilets, including installation by a

consumption patterns by looking for

licensed plumber.

DROUGHT RESOURCE GUIDE

SFPUC is offering free high-efficiency

trends. If consumption is increasing, it to reducing costly water loss. More details

may be time for a maintenance water audit

PREP targets the entire building by replac-

about our Water-Wise Evaluations can be

to take inventory of wasteful or leaking

ing old toilets with water-efficient models.

found at sfpuc.org/savewater.

plumbing fixtures for replacement. In ad-

To qualify, existing toilets must use at least

dition, managers can work with tenants by

3.5 gallons per flush and have no unusual

Free Water-Saving Devices: Water-efficient

encouraging them to identify leaks within

plumbing or site conditions. Properties pur-

showerheads, toilets, and faucets are man-

residential units and notify building man-

chased after July 1, 2009, are not eligible.

dated by the state and through the City’s

agement promptly.

Residential account holders with qualifying fixtures can get more details and a link to

Plumbing Code and Residential Conservation Ordinance. We offer water account

MyAccount also provides an easy way for

holders, property owners, managers, and

properties to update their occupancy data

tenants free high-performing water-effi-

and contact information, which are essen-

We have successfully installed thousands

cient plumbing devices that can lead to

tial for the SFPUC to provide an accurate

of toilets through our PREP program.

significant water savings, including:

estimate of average per-occupant water use

Case studies of PREP participants have

and timely alerts.

shown that once inefficient toilets, show-

• High-efficiency showerheads • Kitchen faucet and bathroom basin aerators

our online application at sfpuc.org/prep.

erheads, and aerators are updated with ef-

An Alert When You Have a Leak

ficient ones, water use has been reduced

The SFPUC provides courtesy leak alerts to

30 to 70 percent.

• Garden spray nozzles

customers with nonstop water use, which

• Toilet leak-detection dye tablets

could mean they have a plumbing leak. Pro-

Washer Rebate Program: We offer a

• Standard toilet leak repair parts,

viding a current email and phone number

high-efficiency washer rebate program.

including flappers and fill valves

in My Account allows us to quickly notify

Multi-family properties can participate in

• Practical plumbing repair and leak

you of potential leaks and unusual usage.

the coin-operated (commercial) washer or residential clothes washer rebate programs,

detection guides A single leaking showerhead can waste up

depending upon the type of new washer

Multifamily residential properties with

to 12 gallons of water per hour, raising a

installed. The commercial program offers

more than ten dwelling units can get free

water bill by over 300 percent. An indi-

up to $500 per machine when commer-

devices delivered after participating in a

vidual leaking toilet could waste 17 gallons

cial grade common area clothes wash-

free Water Wise Evaluation or phone con-

of water an hour, increasing the bill by over

ers are replaced with a high-efficiency

sultation. Small multifamily buildings with

500 percent. The most common source of

model. The residential program offers

under ten units may also pick up devices

leaks in multifamily properties are toilets,

up to $100 for Energy Star Most Efficient

at our Customer Service Center, Monday

dripping faucets and showerheads, and ir-

through Friday at 525 Golden Gate Avenue.

rigation valves. Large properties can often

washer models. Apply online at sfpuc.org/ accounts-services/sign-up-for-savings.

Water-Saving Tools You Can Use Track Your Water Usage in Real-Time with MyAccount

have multiple leaking fixtures. Landscape Evaluations: We provide irToilet leaks are particularly common. Even

rigation and landscape evaluations to help

if your property has upgraded to water-effi-

identify improvements to your building’s

We highly encourage all apartment manag-

cient models, toilet parts degrade over time

landscape irrigation system and increase

ers and SFPUC water account holders to

and should be replaced. The SFPUC recom-

mends replacing flappers and fill valves

JULY 2022 | SF APARTMENT MAGAZINE

Water Warriors… continued on page 40

M SO U O LT LD F F IP ER LE S

REPRESENTED CLIENTS IN OVER $1.4 BILLION IN CLOSED TRANSCTIONS

JONATHAN BROWNING STUDIOS CORP. OFFICE

Four stories cover Full Basement Two Street Frontage With over 23,000 SF of Office Space steps to City Hall & Hastings Law

Commercial or Residential Use First Class Live/Work Sale 6,000 Square Feet

MID-MARKET OFFICE BUILDING

MARINA 12 UNITS – BUYER REPRESENTATION Outstanding Condition and Upgrades Winning offer over Multiple Bids

CORNER POWELL STREET APARTMENTS 7 – 2 bedroom apartments plus ADU penthouse potential 1 Street level office and 2 Car Parking 4 Competitive Offers and sold AS IS

STEVEN CARAVELLI Senior Commercial Associate 415.229.1367 Steven.Caravelli@cbcnrt.com CalRE #00879834

SSF 7 UNIT APARTMENT BUILDING – BUYER REPRESENTATION

Outstanding Corner Location with Parking Winning offer over Multiple Bids. No SF Rent Control.

KEVIN CARAVELLI Sales Associate 415.229.1288 Kevin.Caravelli@cbcnrt.com CalRE #01988049

100% Committed to Long-Term Client Relationships

We recognize the long-term value of mutually beneficial relationships far outweighs the short-term value of any particular transaction.

The property information herein is derived from various sources that may include, but not be limited to, county records and may include approximations. Although the information is believed to be accurate, it is not warranted and you should not rely upon it without personal verification. © 2022 Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates. All Rights Reserved. Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates fully supports the principles of the Equal Opportunity Act. Each Office is Independently Owned and Operated. Coldwell Banker Commercial and the Coldwell Banker Commercial Logo are registered service marks owned by SF APARTMENT MAGAZINE | JULY 2022 Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates. Each sales representative and broker is responsible for complying with any consumer disclosure laws or regulations.

SOLD

5.1% CAP

NOPA | Mixed-Use | $2,300,000

FOR SALE

Mill Valley | 19 Units | $8,800,000

Valencia Street | 10 Units | $4,850,000

FOR SALE

Mission Dolores | 3 Units | $2,120,000

In association with Dan McGivern

In association with Matt Healy

Fantastic Buildings. Unique Transactions. There is a unique story for each of these properties. For detailed information on these buildings, market conditions, soft story issues, or an estimate of value for your property, please call. We look forward to speaking with you.

Offices Throughout the U.S. and Canada

JULY 2022 | SF APARTMENT MAGAZINE

www.MarcusMillichap.com

Specialization • Expertise • Results

SOLD

FOR SALE

Twin Peaks | 6 Units | $2,635,000 In association with Matt Healy

Marina District | 18 Units | $13,000,000 In association with Gino Franco & Vince Schwab

SOLD OFF-MARKET

Dolores Heights | 21 Units | $9,500,000 In association with Dan McGivern

Marina District | 18 Units | $9,600,000

FOR SALE

In association with Gino Franco & Vince Schwab

To access the investment market, contact the market leader.

Sanford Skeie

Senior Vice President Investments National Multi Housing Group (415) 625-2153 sandy.skeie@marcusmillichap.com License: CA: 00982336

Clinton Textor

Senior Vice President Investments National Multi Housing Group (415) 625-2157 clinton.textor@marcusmillichap.com License: CA: 01318639

www.MarcusMillichap.com

SF APARTMENT MAGAZINE | JULY 2022

Water Wise Wr i t t e n b y

L I VA B L E C O N T E N T T E A M

Conservation matters now more than ever. Here’s how ratio utility billing systems help property owners and residents waste less and save more.

Americans are becoming increasingly worried about global

ensure fair and accurate billing to each tenant. This system

warming, according to a study carried out by the Yale Pro-

is highly customizable, and a lot of thought goes into what to

gram on Climate Change Communication. This increase in

include when calculating the ideal RUBS formula for each in-

concern is accompanied by an increase in engagement with

dividual property. There are strict guidelines that utility billing

the issue of climate change, and an increase in support of

experts such as Livable help you follow when instituting RUBS.

climate solutions.

For example, RUBS can be implemented in rent-controlled jurisdictions, but only on turnover. The many benefits of RUBS

The good news is that both tenants and property owners can take steps to reduce utility consumption and help the

make this system worth it.

efficient in our blogs and newsletters (blog.livable.com).

Reduce Your Energy and Water Consumption With RUBS

This ongoing list of helpful tips includes making efforts to

Implementing RUBS makes tenants aware of monthly utility

use more energy-efficient appliances and ensuring appli-

costs and trends, which empowers them to make informed

ances are up to date with any servicing requirements.

decisions on their utility usage. As a result, tenants are more

planet. Livable covers some of the ways that we can be more

motivated to conserve utilities and report utility-related mainWe are on a mission to promote conservation through

tenance issues, like leaks. Timely responses to leaks can have

billing and education. Our custom utility management and

a significant impact because, as the Environmental Protection

cost recovery solutions help commercial and residential

Agency (EPA) notes, household leaks can waste up to 180 gal-

properties reduce their environmental footprint. A major

lons of water per week.

way property owners can work toward utility conservation, where guidelines allow, is by implementing a ratio utility

The eco-friendly benefits of RUBS have been demonstrated

billing system (RUBS).

in a large study compiled by the National Apartment Asso-

What Is a Ratio Utility Billing System?

ciation and the National Multi-Housing Council. They found a 6 to 18 percent reduction in water use in properties that

A ratio utility billing system (RUBS) is a system that divides

implemented RUBS, which they credited to more careful wa-

utility costs—including waste, sewage, energy, water, and

ter management when residents had to pay for their share

more—among the residents of a property based on a num-

of water.

ber of criteria. Of course, not all utilities are consumed in equal quantities, so this system takes into account the type

The team at Livable has observed significant reductions in

of utility being used when determining each property’s

utility consumption in properties where RUBS have been

ideal RUBS formula.

implemented. A fully occupied four-unit building experienced a 31% decrease in water and electricity use in the year follow-

In-unit and common-area amenities, unit occupancy, and

ing the implementation of a customizable RUBS system. These

square footage are considerations that can be factored in to

environmentally friendly effects are not restricted to buildings

JULY 2022 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | JULY 2022

with fewer units. We witnessed a 24%

Governor. Awareness of water and energy

designs of older buildings present a bar-

reduction in usage in a building with over

expenditure by tenants can increase moti-

rier to implementing cost-splitting efforts.

300 units!

vation to conserve.

Many older buildings have only one water meter and one water bill. Some utility-re-

Why Utility Conservation Is Important

Conserving water goes a long way toward

lated conservation efforts would require

rebuilding underground aquifers, mini-

hardware installation that makes said

As explained by the EPA, greenhouse

mizing the harmful effects of drought, and

efforts incompatible with the designs of

gases trap some of the Earth’s outgoing

supporting the fight against climate change.

older buildings.

energy and therefore retain heat in the

When we save water, we also lower energy

atmosphere. Many greenhouse gases are

demand because the amount of energy

RUBS presents a simple way for utility costs

naturally occurring but are now found at

used to purify and distribute water to our

to be fairly distributed between tenants,

elevated levels because of human activities.

buildings, as well as to heat the water, can

even in older buildings, so that the tenants

be reduced. Employing water-saving tech-

of older buildings can also be inspired to

The excess release of greenhouse gases

niques, therefore, helps reduce pollution.

be part of conservation efforts.

throws off the balance between energy

Less water used also means less wastewater

received from the sun and energy emit-

generated, which decreases energy usage at

ted from the Earth. This alters climate and

wastewater treatment plants.

weather patterns regionally and globally.

Enjoy a Hassle-free Set-up Process with RUBS Using a submetering system to keep

ance—like the Earth’s orbit and the carbon

Three More Reasons to Conserve With RUBS

cycle—but there’s overwhelming evidence

As if the environmental benefits weren’t

cial Property Executive, submeters cost

that human activities have been the pri-

motivation enough, there are even more

$1,500 to $2,000 per piece, including in-

mary cause of global warming over the last

reasons to conserve utilities with RUBS.

stallation costs. The process of installing

There are natural factors that affect this bal-

50 years.

Energy Consumption Matters

Save on Utility Expenses

track of tenant utility usage is an option, but a costly one. According to Commer-

sub-meters presents additional challenges that setting up RUBS avoids. With RUBS,

While the efforts of residents and property

there’s no need to purchase or install

How is utility conservation relevant to

owners both matter in utility conservation,

any equipment, property owners can

environmental issues? The burning of fos-

only one of these groups pays the utility bill

save time and money. Compared to other

sil fuels accounts for around 74% of U.S.

at the end of the day. Many property own-

methods, the savings with RUBS start al-

greenhouse gas emissions and—according

ers are still responsible for paying for their

most immediately.

to the EPA—accounted for about 79% of to-

tenants’ utility usage. With the cost of utili-

tal U.S. primary energy production in 2020.

ties continuously rising, property owners

The residential and commercial sectors are

have further incentive to consider RUBS.

responsible for the most energy consumption in U.S. buildings.

RUBS Doesn’t Work for You? We Have Another Eco-Friendly Solution Livable has a Net Zero billing program to

We’ve observed that housing providers

help you conserve utilities where RUBS

can regain close to 90%7 of their water and

isn’t possible.

Reducing energy consumption in our build-

energy costs through RUBS. Implementing

ings can decrease fossil fuel demand and

RUBS on your properties is good for the

With this billing program, we send a

reduce greenhouse gas emissions, which is

planet and it’s good for your wallet, but the

monthly statement to residents, but

good for the planet! Conservation efforts

benefits don’t stop there.

property owners continue to pay all the

can extend beyond energy to other utilities

utility bills. The statement sent to resi-

environment. This is something that mat-

Older Buildings Aren’t Left Behind with RUBS

ters now more than ever before.

Older buildings present many challenges

steps that tenants can take to lower their

when trying to achieve more efficient

utility usage.

to reduce pollution and waste, helping the

Why We Save Water

dents highlights what their costs would have been, and includes some simple

use of resources. From outdated heating,

California, like much of the West, is expe-

ventilation, and air conditioning systems

With Net Zero, existing tenants and

riencing widespread drought. The incen-

(which waste a tremendous amount of

residents in all markets can see the

tive to scale back water usage can be low

electricity) to uninsulated plumbing

costs associated with their consumption,

even in a drought. In 2015 a survey of Los

(which wastes unnecessary amounts of

which can substantially decrease utility

Angeles apartment owners who paid for

water and energy).

use and increase the timeliness of leak reporting.

their tenants’ water revealed that water usage in apartments remained unchanged—

Although it is established that splitting

and in some cases even increased—despite

the cost of utilities among tenants has

a 25 percent conservation order from the

clear benefits for saving resources, the

JULY 2022 | SF APARTMENT MAGAZINE

Another Good One —Just Listed!

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MATTHEW C. SHERIDAN matt@mavenproperties.com Lic. #01390209 415-727-1271

466 Green Street Suite #203 | San Francisco, CA 94133 SF APARTMENT MAGAZINE | JULY 2022

Prevent Fires.

How Livable’s Billing Programs Take Conservation a Step Further Livable uses a cloud-based platform that accesses clients’ utility bills as soon as the utility company publishes them. Following a carefully curated formula, utility costs are then allocated to individual units in the building. With RUBS, when tenants receive the invoice for their portion of the bill, they can pay it on Livable’s Resident Connect Portal. Our paperless billing system allows residents to generate less paper waste, which is great for our trees! Our system can detect usage spikes and immediately notify clients. Through this feature, numerous water leaks have been identified in a timely fashion, allowing property owners to address such problems on their properties sooner. Especially environmentally conscious tenants, who can monitor the efficiency of their unit and even the entire building.

Tape and Bag Lithium Batteries What should you do with old lithium batteries? A big part of the answer is clear tape. Old lithium batteries may no longer have the power to run devices, but they can still release energy though their contact points. Lithium batteries that are not taped can cause fires in collection trucks and recycling facilities, and harm workers.

They can use our system to track consumption trends and improve their own conservation efforts further.

Conserve With Livable With increasing concern over the state of the environment and an increase in interest in climate solutions, more and more people are looking for ways that they can help fight the climate crisis. We know that when residents are made aware of utility costs on a regular basis, they are empowered to man-

•

Place clear tape over the contact points of used lithium batteries.

age their utility usage more responsibly.

•

Put taped lithium batteries in a clear plastic bag, and seal it shut.

With our billing systems, property owners

Place the bag on top of your landfill bin. Recology will collect the bag, sort the batteries, and safely ship them to companies that specialize in battery recycling.

sources. If RUBS is right for your property,

•

The results are great for the environment!

and tenants can foster a sense of community by joining forces to conserve retalk to your tenants about its benefits! It’s important to communicate with residents and clearly explain the system and its implications. But don’t worry, this process is something that we can help you with. Livable is a leading residential and commercial real estate utility billing company with the mission to promote conservation through billing and education. With our suite of cloud services, we can help you reduce your consumption while adding to your bottom line. To learn more, visit our website at livable.com

JULY 2022 | SF APARTMENT MAGAZINE

Is Your Building

COMPLIANT? SAN FRANCISCO FIRE CODE 1103.7.6.1 GREAT NEWS! NEW Deadline JULY 2023!

BUT... DON’T WAIT TAKE ACTION NOW!

BEFORE

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628-208-0188

AFTER

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Water Warriors… continued from pg. 30

its water efficiency. We offer technical assistance and free plan review to ensure new landscape and irrigation plans comply with the San Francisco Water Efficient Irrigation Ordinance. We also offer grants for water-

Founded 35 years ago, Kaufman, Dolowich & Voluck is an internationally recognized litigation firm, meeting the diverse demands of our clients. The Bay Area’s complicated and fast-moving real estate industry presents property owners with exceptional opportunities and challenges. KDV’s real estate practice provides a full spectrum of services, allowing clients to rely on one firm for all of their real estate needs.

Ashley E. Klein

saving retrofits to irrigated landscapes over 10,000 square feet, and we provide incentives for the installation of rain barrels and cisterns. Capturing rainwater at your building can reduce the use of drinking water for irrigation and outdoor washing and help reduce runoff from entering our combined sewer system during storm events.

Permanent Water Waste Restrictions Conservation is a way of life in California, and rain or shine, there is never enough

Managing Partner of San Francisco Office Co-Chair of Real Estate Practice Group

water to waste.

Ashley E. Klein represents clients ranging from real estate investment trusts, homeowners in wrongful eviction defense, unlawful detainer, and property management matters. She counsels Bay Area homeowners about their rights and options under the SF Rent Ordinance, statewide rent control regulations and the Costa-Hawkins Rental Housing Act.

water use are specified in the SFPUC’s Rules

Landlord-Tenant Disputes

A. Jeanne Grove

Managing Partner of Sonoma Office Co-Chair of Real Estate Practice Group HOA Disputes

A. Jeanne Grove focuses her practice on real estate and business litigation, including HOA and co-ownership issues, purchase/sale disputes and nondisclosure claims, and boundary, title, development, and construction matters. She has 15 years of experience in mediation and arbitration, as well as all phases of civil litigation, from the pleading stage to trial and post-trial proceedings.

Laura L. Campbell Attorney

Land Use Disputes Laura L. Campbell has extensive experience in landlordtenant litigation. She represents clients in breach of contract matters, quiet title actions, unlawful detainer lawsuits, tenant buy-out negotiations, and property management resolutions. She specializes in SF Rent Board matters, and routinely handles lot splits, mergers public hearings, zoning issues and ADU permitting.

The following prohibitions against wasteful and Regulations Governing Water Service and are permanent: • Application of potable water to landscapes that causes runoff, such that water flows onto adjacent property, non-irrigated areas, private and public walkways, roadways, or parking lots • Use of hoses for any purpose without an automatic shut-off valve • Use of potable water to wash sidewalks, driveways, plazas, and other hardscapes for reasons other than health, safety, or to meet City of San Francisco standards for sidewalk cleanliness in a manner that causes runoff to storm drains and sewer catch basins • San Francisco sewer requirements prohibit water discharge containing pollutants or grease or water from sources other than rain to storm drains and catch basins

San Francisco, CA Office 425 California Street, Suite 2100 • San Francisco, CA 94104 (415) 926-7600 • aklein@kdvlaw.com Sonoma, CA Office 19327 Sonoma Highway, Suite 100 • Sonoma, CA 95476 (707) 509-5260 • jgrove@kdvlaw.com • lcampbell@kdvlaw.com

• Use of single-pass cooling systems, fountains and decorative water features, and commercial car washes • Watering landscapes during and within 48 hours after measurable rainfall

JULY 2022 | SF APARTMENT MAGAZINE

A one-stop-shop for all your apartment maintenance needs. Put the most experienced apartment remodeling crews in the city to work for you. el

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Craig has over 30 years’ experience owning, managing and renovating apartment buildings in the city. • Kitchen and bathroom renovations

• Interior and exterior painting

• Back stairwell repairs and replacement

• Exterior restoration, repair failed concrete

• Electrical service upgrades

• Fencing, decks and rear landscaping

• Section 604 certification

• Upgrade common areas

• Sidewalk repairs and replacement

• Vacancy turnover

• Fire alarm system upgrades

• Replace windows and doors

*** Pay from your cash flow. Offering 6 month interest-free financing on remodels! *** Craig Lipton 415.305.7506 lipton@mavenmaintenance.com www.mavenmaintenance.com licensed and insured gc license 881403 The original apartment Maven.

SF APARTMENT MAGAZINE | JULY 2022

• Irrigation with potable water of ornamental turf on public street medians • Use of potable water for consolidation of backfill, dust control, or other nonessential construction purposes if foundation drainage or recycled water is available • Serving drinking water other than upon request at eating or drinking establishments, including restaurants, hotels, cafes, cafeterias, bars, or other public places • Hotels and motels shall provide guests with the option of choosing not to have towels and linens laundered daily and display notice of this option in guestrooms

Ways to Connect. Email SFAA at MemberQuestions@sfaa.org to have your questions and concerns promptly addressed,

service organizations are prohibited from taking or threatening action against any owner for reducing or eliminating irrigation during drought or requiring any owner to remove installed water-efficient landscaping measures once a drought ends.

or call the office at 415-255-2288. You can also follow the

Properties found in violation are contacted

happenings of your fellow SFAA members and find out

potential fees and public disclosure if water

the latest in the industry by connecting with SFAA on Facebook. Search “San Francisco Apartment Association” and “Like” it to add it to your news feed. Follow SFAA on Twitter at twitter.com/SFAptAssoc

Homeowners’ associations and community

•

New sfaa.org website launched!

•

Email SFAA at MemberQuestions@sfaa.org

•

Connect with SFAA on Facebook

•

Follow SFAA on Twitter at twitter.com/SFAptAssoc

JULY 2022 | SF APARTMENT MAGAZINE

by the SFPUC and subject to warnings and waste continues. People can report water waste by calling 311 or visiting sf311.org. The San Francisco Public Utilities Commission (SFPUC) is San Francisco’s water, power, and sewer utility. The regional water system we operate serves 2.7 million people throughout the Bay Area. The drinking water we provide our customers comes from a variety of protected and carefully managed sources. Although the largest percentage of our water comes from snowmelt in the Sierra Nevada in Hetch Hetchy Reservoir, an important part of our water supply comes from rainfall collecting in East Bay and Peninsula reservoirs and filtering into the groundwater aquifer. Deborah Chilvers, SFPUC Program Manager, has worked with the SFPUC for 10 years, with a focus on creating and implementing innovative communications designed to encourage water conservation. She also manages a wide array of conservation programs.

San Francisco Apartment Building Sales

By Broker, 5+ Unit Residential Sales, 2019-2022 YTD* 250 200 150 100 50 0

239

105

— Other San Francisco Brokerages — * Transaction-side sales, 5+ unit “residential income” buildings, 1/1/19 –2/28/22, per Broker Metrics. Sales reported to SFARMLS: Not all sales are reported.

San Francisco 5+ Unit Apartment Building Sales 12 Months Sales, by Price Segment

5-9 Unit Buildings 10-15 Unit Buildings 16+ Unit Buildings

Median Sales Price

Median Size

Median $/Sq.Ft. Value

5-9 Unit Bldgs

$2,754,000

5620 sq.ft.

$527/sq.ft.

10-15 Unit Bldgs

$4,500,000

9225 sq.ft.

$510/sq.ft.

16+ Unit Bldgs

$7,025,000

16,100 sq.ft.

$461/sq.ft.

These numbers are generalities based upon a wide range of sales at very different prices, in very different locations.

12 months sales reported to NorCal MLS Alliance through late March 2022. Data from sources deemed reliable, but subject to error and revision. All numbers approximate, and may change with late-reported sales. Not all sales are reported to MLS.

SF APARTMENT MAGAZINE | JULY 2022

COLUMN

LEGAL Q&A

Roommate Stalemate w r i t t e n b y VA R IOU S AU T HOR S

Be careful when taking on roommates and consult an attorney before initiating actions to remove a cohabitant. prior to commencement of the tenancy, Q. I have been sharing my

duplex with the same tenant for over 20 years. At this point, I would like to sever the relationship and have her move out. Am I legally entitled to do so?

A. The answer is not an easy “yes” or “no,” but instead is dependent upon

the tenant has a separate entrance/exit; (ii) there are two separate kitchens and/ or bathrooms; (iii) the owner rents multiple rooms out to different tenants; (iv) everyone has their own bedroom lock; and (v) the owner and tenant executed a lease agreement that specifically identifies the tenant’s exclusive space within the premises.

the Master Tenant informs the tenant in writing that the tenancy is not subject

Thus, while there may be no clear cut

to the just cause provisions of Section

rules on this topic, a true roommate

37.9. A landlord who is an owner of

situation, as envisioned by the rent

record of the property and who resides

regulations, suggests that an owner may

in the same rental unit with his or her

co-habitate with someone by sharing the

tenant is not subject to this additional

entirety of the housing with them akin

disclosure requirement.”

to a romantic or friendship situation, but perhaps the line is crossed when one or

whether the tenant in question is a subtenant or a roommate. The distinc-

So, if you are an owner of record and

more of the factors listed in the previous

tion is critical, because a subtenant

live with your tenant as a roommate, you

paragraph are met. As such, be careful

cannot be asked to leave without a just

should be able to terminate the tenancy

when taking on roommates, and consult

cause reason to evict under the rent law

at any time without having to rely upon

an attorney before initiating actions to

whereas a roommate may be displaced

one or more just cause reasons, and you

remove a cohabitant.

by the owner of the property if the

do not need a lease agreement to specifi-

owner and tenant reside together as

cally disclose this exception unlike a

true roommates.

non-owner master tenant who decides to sublease.

The Rent Ordinance’s roommate just cause exception is codified as follows: “A

But do not let the simplicity of this

landlord who resides in the same rental

explanation fool you. The term “room-

unit with his or her tenant may evict said

mate” has never been formally defined

tenant without just cause as required

by either the courts or the Rent Board.

under [the Rent Ordinance].”

Moreover, there is recent case law sug-

—Dave Wasserman

A credit report for a potential resident showed that she filed for bankruptcy a few years ago. Is this a legitimate reason to deny the tenancy?

A. The credit application is the most

gesting that owners who rent rooms in

important tool a housing provider can

In addition, Section 6.15C of the San

single-family homes may in fact have

use to filter through prospective tenants.

Francisco Rent Board’s Rules and Regu-

created separate tenancies and subten-

(It’s also the safest, given that it is usually

lations reads as follows: “For any ten-

ancies that are not roommate situations.

category-neutral in discrimination law.)

ancy commencing on or after May 25,

reinforced by the following scenarios: (i)

Financial stability is one of the most

1998, a landlord who is not an owner

Indeed, this author has been involved

important factors in evaluating a tenant,

of record of the property and who

in contested matters where the owner’s

and their past stability can be a strong

resides in the same rental unit with his

roommate argument is defeated by the

indicator of their future.

or her tenant (a ‘Master Tenant’) may

tenant’s presentation of facts evidencing

evict said tenant without just cause as

that no roommate situation really ex-

California law allows the consider-

required under Section 37.9(a) only if,

ists. Most commonly, such positions are

ation of an applicant’s credit report in

JULY 2022 | SF APARTMENT MAGAZINE

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exercising preference for candidates. A

for bankruptcy, it is important to keep in

pending, then that generally means that

past bankruptcy will stay on a credit report

mind that bankruptcy is only one factor

the rental assistance program is still in

for as long as ten years, it can significantly

of a credit report. Employment history,

the process of reviewing the application,

lower the applicant’s credit score, and it

income, and rental history are also fac-

has not yet issued a determination of the

may justify the denial of an offer to rent.

tors reflected in a credit report. It may be

tenant’s eligibility for rental assistance,

prudent to consider the housing applicant’s

or the funds have not yet been disbursed.

However, housing discrimination laws and

credit since filing for bankruptcy. If the

Before proceeding with any course of

the Consumer Credit Reporting Agencies

applicant’s credit report shows consistent

action, you should ascertain the status of

Act add nuance in your approach to select-

payment history (including rental pay-

the application.

ing a financially stable tenant. California’s

ments) after filing for bankruptcy, it may

anti-discrimination laws prevent housing

be an indicator that the applicant may be

If you or your tenant did not apply to the

applicant choices that would exclude pro-

a reliable tenant depending how long ago

rental assistance program for rent due prior

tected classes. (These include race, color,

the applicant filed for bankruptcy. The pay-

to March 31, 2022, then you may consider

religion, sex, gender identity, disability, vet-

ment obligation might also be secured by a

filing a small claims court action. However,

eran or military status, or genetic informa-

qualified co-signer.

the court may reduce the rent damages if the tenant was eligible for rental assistance

tion.) While credit histories are not among —Robert Little

these protected classes, housing providers must assess and apply the same standards in all circumstances to avoid a discriminatory impact premised on non-discriminatory selection criteria. Whenever an applicant is rejected based on the information contained in a credit report, there are some requirements the

Q. I know the state’s COVID-19

rent-relief program expired in March 2022, but my tenant still isn’t paying rent for COVID-19-related reasons. What are my options?

A. Please note that by the time this article

and the landlord did not cooperate with or apply for the rental assistance program. In small claims court, you would request a court order for the back rent that is owed. Small claims court cannot award possession or order a tenant to vacate. If a rental assistance application for rent due between October 1, 2021, and March

housing provider must perform in compli-

is released there could be changes to the

31, 2022, has not been approved, then you

ance with the Consumer Credit Report-

law. Over the past couple of years, the law

may consider serving a three-day notice to

ing Agencies Act. First, the applicant must

has been volatile as it relates to landlord-

pay rent or quit. The three-day notice will

receive written notice of the adverse action,

tenant and housing rights. Before moving

need to contain specific language required

explaining that the decision to reject the

forward with any legal action, you should

by the state law.

application was based on the information

consult with a real estate attorney. For rent due after March 31, 2022, you

provided in the credit report. The housing provider must provide the rejected ap-

California lawmakers agreed to extend

may proceed with a three-day notice to

plicant with the name and contact infor-

some eviction protections just hours before

pay rent or quit. However, San Francisco

mation of the consumer credit reporting

these protections were sunset to expire on

recently passed a law requiring a landlord

agency who created the report. In addition,

March 31, 2022. California’s eviction mora-

to first give the tenant a written ten-day

the housing provider must provide written

torium, under Assembly Bill 2179, has been

notice and opportunity to cure for rent

notice that the applicant is entitled to a free

extended until June 30, 2022, for those who

due after March 31. The San Francisco

copy of the credit report from the agency

have applied for rental assistance but have

Rent Board has created a form for this,

within 60 days of the notice. Finally, the ap-

not yet received it.

which can be found on its website (sfrb.

California has been offering rent relief and

lenged in court and it is currently unen-

gov). Note that this new law is being chal-

plicant has the right to dispute the accuracy of the information contained in the report.

assistance throughout the pandemic. Ac-

forceable pending further court hearing.

Disputing a negative entry on a credit

cording to the rental assistance program,

Nevertheless, out of an abundance of cau-

report may take up to a month. After suc-

they have been overwhelmed by appli-

tion, it may be prudent to give the ten-day

cessfully disputing a negative entry, the

cants. Although California’s rental assis-

notice until such time as we have a full

applicant may decide to follow up with

tance program is no longer accepting new

and final court decision.

the housing provider to reconsider their

applications, renters are still awarded some

application. However, because the housing

protections if they have an application that

With the many requirements and penal-

provider rejected the application in compli-

is pending. The extension applies to pay-

ties that may be imposed on landlords, it is

ance with the law, there is no duty to recon-

ments due on or before March 31, 2022.

strongly encouraged that you seek the advice of a knowledgeable landlord attorney

sider the original application. The first thing to ask yourself is, Do I have When considering whether to deny a ten-

a pending application with the rental

ancy to a housing applicant who has filed

assistance program? If an application is

JULY 2022 | SF APARTMENT MAGAZINE

before starting any eviction process. —Angelica Sandoval

Check Out What’s New at SFAA!

The San Francisco Apartment Association is your rental housing resource. SFAA has been working round-the-clock educating, advocating for, and supporting the rental housing community so that its members operate ethically and fairly.

SFAA’s New and Improved Website Is Live! Our new website makes it easier than ever to access the information, market surveys, education, and forms you need to manage your rental properties. The streamlined website allows SFAA members to quickly sign up for classes, access preferred vendors, and get legislative updates. Go to sfaa.org today!

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Interested in advertising? Your ad will appear in the feature-length magazine, alongside articles written by San Francisco’s top landlord attorneys, industry professionals, and small rental property owners. With a readership of rental property owners and industry professionals, your ad will reach the right targeted audience to grow your business.

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Q. A tenant approached me

about a buyout. What restrictions will my property have if I move forward with the transaction?

A. In San Francisco, buyout negotia-

their rights or released any claims. A buyout agreement that does not satisfy the Ordinance’s rules can be rescinded at any time by the tenant. Under Section 1396(e)(4) of San Francisco’s

tions and agreements are heavily governed

Subdivision Code, a property owner may

by the San Francisco Buyout Ordinance,

not convert a building into a condominium

codified as San Francisco Municipal Code

where a senior, disabled, or catastrophi-

Section 37.9E.

cally ill tenant has vacated a unit under a buyout agreement after October 31, 2014,

Regardless of whether a tenant has ap-

or if two or more tenants who are not se-

proached a landlord regarding a buyout or

nior, disabled, or catastrophically ill have

vice versa, the San Francisco Rent Ordi-

vacated units under buyout agreements, if

nance Section 37.9E requires that landlords

the agreements were entered after October

file certain disclosures with the San Fran-

31, 2014 and within the ten years prior to

cisco Rent Board before engaging in any

the condominium conversion application.

buyout negotiations or discussions with the

Where only a single tenancy with no senior,

tenant. Specifically, landlords must provide

disabled, or catastrophically ill tenants have

each tenant in the subject rental unit with a

entered into a buyout agreement, a landlord

written disclosure, which informs the ten-

may preserve the ability to convert the

ants of their rights under the San Francisco

property to condominiums.

Municipal Code. Once the tenant agrees to the buyout and The disclosure informs the tenant that

vacates the unit, the landlord may immedi-

they have a right not to enter into a buyout

ately re-rent the unit at market rate as the

agreement or negotiations, and that they

buyout is considered a “voluntary termi-

may choose to consult with an attorney

nation” of the tenancy. Landlords should

prior to commencing any negotiations

include a release of all claims in any buyout

or agreements. Additionally, the tenant is

agreement in an effort to prevent litigation

informed that they have up to 45 days to re-

after the voluntary termination of tenancy

scind the buyout agreement after the agree-

has been executed.

ment is fully executed. After providing the disclosure to the tenant, the landlord must also notify the San Francisco Rent Board by filing a declaration with the landlord and tenant names, address of the property, and the date that the landlord provided each tenant with the disclosure forms. The San Francisco Rent Board then makes this information publicly available. If an agreement is executed in accordance with the above-mentioned procedure, and the tenant does not rescind the agreement within 45 days, the landlord will be re-

—Mandana Arjmand The information contained in this article is general in nature. Consult the advice of an attorney for any specific problem. Dave Wasserman is with Wasserman Offices and can be reached at 415567-9600. Robert Little is with Zacks, Freedman & Patterson, P.C. and can be reached at 415-9568100. Angelica Sandoval and Mandana Arjmand are with Fried, Williams & Grice Connor, LLP and can be reached at 415-421-0100.

Know Your Numbers!

quired to file a copy of the Agreement with the San Francisco Rent Board no later than the 59th day after all parties have signed the agreement. If the landlord fails to file the agreement by the 59th day, the tenant then may file a copy of the agreement and has the option to void any language in the agreement in which the tenant has waived

JULY 2022 | SF APARTMENT MAGAZINE

Turn to page 51 for updated information on allowable rent increases, security deposit interest and more.

On the List. Is finding a great service provider on your To-Do List? Check out the Professional Services Directory for experienced apartment industry professionals.

54 Starts on page

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• Multi-family specialists • Value add remodels • Accessory Dwelling Units • Physical needs assessments • Pre-purchase consultations • Feasibility and capacity studies • Interior / Exterior renovations • Urban infill • Mixed-use • Review Services sf.0219.rentals-in-sf.pdf

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sfaa 2 2022calendar

sfaa

July

WEDNESDAY, JULY 6 Lunch & Learn Nuisance/Noise Webinar Zoom Webinar System 12:00 p.m. to 1:00 p.m. Members $45 Non Members $65

FRIDAY, JULY 8 Housing Unit Inventory Webinar Zoom Webinar System 10:00 a.m. to 11:00 a.m. Members $45 Non Members $65

MONDAY, JULY 11 Board of Directors Mtg. 11:30 a.m.

WEDNESDAY, JULY 20 Virtual Member Meeting TBD

WEDNESDAY, JULY 20 Lunch & Learn Nuisance/Smoking Webinar Zoom Webinar System 12:00 p.m. to 1:00 p.m. Members $45 Non Members $65

WEDNESDAY, JULY 27 Lunch & Learn Decrease in Housing Service Webinar Zoom Webinar System 12:00 p.m. to 1:00 p.m. Members $45 Non Members $65

SFAA offices will be closed on July 4th in observance of Independence Day.

WEDNESDAY, JULY 13 Lunch & Learn Nuisance/Smells Webinar Zoom Webinar System 12:00 p.m. to 1:00 p.m. Members $45 Non Members $65

SFAA MEMBER MEETINGS ARE HELD VIRTUALLY DUE TO COVID-19. FOR TOPICS AND SCHEDULES, VISIT SFAA.ORG.

August MONDAY, AUGUST 1 Board of Directors Mtg. 11:30 a.m.

WEDNESDAY, AUGUST 3 Lunch & Learn ESA v.s. Pets Webinar Zoom Webinar System 12:00 p.m. to 1:00 p.m. Members $45 Non Members $65

WEDNESDAY, AUGUST 10 Lunch & Learn Approved Vendors Webinar Zoom Webinar System 12:00 p.m. to 1:00 p.m. Members $45 Non Members $65

WEDNESDAY, AUGUST 17 Lunch & Learn Resident Requests Webinar Zoom Webinar System 12:00 p.m. to 1:00 p.m. Members $45 Non Members $65

WEDNESDAY, AUGUST 24 Lunch & Learn Rent Collections & Late Fees Webinar Zoom Webinar System 12:00 p.m. to 1:00 p.m. Members $45 Non Members $65

WEDNESDAY, AUGUST 31 Lunch & Learn Roommates Webinar Zoom Webinar System 12:00 p.m. to 1:00 p.m. Members $45 Non Members $65

JULY 2022 | SF APARTMENT MAGAZINE

WEDNESDAY, AUGUST 17 Virtual Member Meeting TBD

join online at sfaa.org or call 415.255.2288

2022 join online at sfaa.org or call 415.255.2288

SAN FRANCISCO’S

RENT BOARD FEE

$29.50

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 2021-2022

$29.50

CAPITAL IMPROVEMENTS

SFAA’S

TENANT SCREENING SERVICE

The capital improvement interest rates for 3/1/21 through 2/28/22 are listed below:

THROUGH INTELLIRENT STEP 1:

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

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

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

AMORTIZATION

INT. RATE

MULTIPLIER

7 YEARS

0.8%

.01225

10 YEARS

1.0%

.00876

15 YEARS

1.2%

.00607

20 YEARS

1.4%

.00478

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

AMOUNT

03/01/22 - 02/28/23

0.1%

03/01/21 - 02/28/22

0.6%

03/01/20 - 02/28/21

2.2%

03/01/19 - 02/29/20

2.2%

03/01/18 - 02/28/19

1.2%

2020-2021

$25.00

2019-2020

$25.00

2018-2019

$22.50

2017-2018

$22.50

2016-2017

$20.00

2015-2016

$18.50

03/01/17 - 02/28/18

0.6%

$18.00

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%

03/01/11 - 02/29/12

0.4%

2014-2015 2013-2014

$14.50

2012-2013

$14.50

CONTACT INTELLIRENT FOR MORE INFORMATION:

415-849-4400

2011-2012

$14.50

2010-2011

$14.50

2009-2010

$14.50

03/01/10 - 02/28/11

0.9%

2008-2009

$14.50

03/01/09 - 02/28/10

3.1%

2007-2008

$13.00

03/01/08 - 02/28/09

5.2%

2006-2007

$11.00

03/01/07 - 02/29/08

5.2%

2005-2006

$10.00

2004-2005

$11.00

2003-2004

$21.50

CONTACT THE SAN FRANCISCO RENT BOARD FOR MORE INFORMATION

415-252-4600 sfgov.org/rentboard

ALLOWABLE RENT INCREASES

2022 – 2023: 2.3%

Effective March 1, 2022, through February 28, 2023, the allowable annual rent increase is 2.3 %. 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

03/01/22 - 02/28/23

2.3%

03/01/21 - 02/28/22

.7%

03/01/20 - 02/28/21

1.8%

03/01/19 - 02/29/20

2.6%

03/01/18 - 02/28/19

1.6%

03/01/17 - 02/28/18

2.2%

03/01/16 - 02/29/17

1.6%

03/01/15 - 02/29/16

1.9%

03/01/14 - 02/28/15

1.0%

03/01/13 - 02/28/14

1.9%

03/01/12 - 02/28/13

1.9%

03/01/11 - 02/29/12

0.5%

03/01/10 - 02/28/11

0.1%

03/01/09 - 02/28/10

2.2%

03/01/08 - 02/28/09

2.0%

03/01/07 - 02/29/08

1.5%

03/01/06 - 02/28/07

1.7%

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

CONTACT THE SAN FRANCISCO RENT BOARD FOR MORE INFORMATION

415-252-4600 sfgov.org/rentboard

& information SF APARTMENT MAGAZINE | JULY 2022

REUSEO

KEEP TRASH CLEAN 2022 has brought on a plethora of logistical challenges for multifamily property managers regarding waste. It is now necessary to have tailored trash management plans that will align with the law and the needs of residents. With SB 1383 in place along with existing recycling mandates and local enforcement being in effect since January 1, there is a call for management teams to make trash a top priority. These changes will increase the time and resources dedicated to managing refuse properly to avoid contamination in recycling and composting bins. Although trash sorting may seem like a simple task, more things come into play when it’s a daily practice. We have been told to recycle plastics and aluminum cans for as long as we can remember. However, organic waste is often defined as any biodegradable material and comes from either plant or animal, but the specifics of the local and state mandates affect what we are allowed to place in each bin. It is now required to have proper training and knowledge of those specific sorting instructions. When put into perspective, the correct sorting of trash adds to the responsibilities of tenants, maintenance, and porter teams. It can carry monetary consequences for the property if not done correctly. It’s necessary to hand waste management to a team that is professionally trained, insured, equipped, and ready to dig into the bins to rip bags open and place every refused item where it belongs. This practice is called secondhand sorting, and it ensures that recyclable and compostable refuse is recovered from the landfill containers. Contrary to common belief, landfill bags are not sorted after they’re picked up from curbside. Combined with a completely tailored trash management plan, having a professional take over the sorting is only positive. The results are green and sustainable communities, through a higher percentage of waste diverted from landfills, cleaner areas resulting in happier tenants, and less stress for the on-site team.

BEYOND SECONDHAND SORTING For a trash management plan to run smoothly and comply with the law, it must include secondhand sorting, the dumpster push/pull on pick-up days, and a 360° look at every step of the way. Managing bulk removal, chute maintenance, trash room cleanliness, dumpster area maintenance, compactor operation, and resident education paired with auditing Recology’s invoices to keep budget and space as optimized as possible. A Zero Waste Facilitator, like Reuseo, takes over the entire trash management plan, performing all the activities included in it. The involvement of a professionally trained team minimizes the risk of contamination, also eliminating the risk of being issued fines after an audit conducted by either the city or the hauler. The financial and time-saving benefits of a trash management company taking over all aspects of multifamily waste flow are many. The additional services provided will save time to the maintenance team and will keep the property clean, making tenants happier, helping to preserve assets, and making the community sustainable. Having a Zero Waste Facilitator on site will cover all the steps between your residents throwing away trash and your hauler picking it up, all while keeping within budget and compliant with San Francisco and California mandates. For more information about Reuseo, contact Maria Gil at maria.gil@reuseowaste.com.

JULY 2022 | SF APARTMENT MAGAZINE

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PRESIDENT Professional Property Managers Association of San Francisco

SF APARTMENT MAGAZINE | JULY 2022

SFAA Professional Services Directory

1031 TAX DEFERRED EXCHANGE SERVICES

LAWYERS EQUITY EXCHANGE Brian Fogarty 415-701-1234 www.lex1031.com SEQUENT Eric Scaff (415) 834-1031 sequent-rewm.com escaff@sequent-rewm.com

ACCOUNTANTS

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

ALARM COMPANY

AEC ALARMS Stephanie Chen 408-298-8888 Ext: 121 sc36@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 Renee A. Engelen www.ppmaofsf.org renee@hrhrealestate.com

ATTORNEYS

415-861-8800

ILENE M. HOCHSTEIN, ATTORNEY AT LAW Ilene Hochstein (650) 877-8288 ilene@hochsteinlaw.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 LAW OFFICES OF DENISE A. LEADBETTER Denise Leadbetter 415-713-8680 www.leadbetterlaw.com LAW OFFICES OF SCOTT T. OKAMOTO Scott T. Okamoto 415-766-5871 www.scottokamotolaw.com LAW OFFICES OF DANIEL PICCININI Daniel Piccinini 415-345-8610 danielpiccinini@att.net LAW OFFICE OF JULIANA E. PISANI Juliana Pisani 415-800-7562 Juliana@jpisanilaw.com 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

BARTH CALDERON, LLP Paul Hitchcock Paul@barthattorneys.com

415-577-4685

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

BORNSTEIN LAW Daniel Bornstein, Esq. www.bornstein.law

415-409-7611

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

DOWLING & MARQUEZ, LLP Jak S. Marquez 415-977-0444 x232 www.dowlingmarquez.com FRANK KIM ESQ., EVICTION ASSISTANCE Jo Biel 415-752-6070 KIMBALL, TIREY & ST. JOHN LLP Kelli Dodson 800-525-1690 kelli.dodson@kts-law.com www.kts-law.com FRIED, WILLIAMS & GRICE CONNOR Clifford E. Fried 415-421-0100 www.friedwilliams.com HAAS NAJARIAN LLP Eric Murphy (415) 788-6330 emurphy@hnattorneys.com

HERZIG & BERLESE Barbara Herzig bherzig@hbcondolaw.com

JULY 2022 | SF APARTMENT MAGAZINE

MCLAUGHLIN SANCHEZ, LLP Michael McLaughlin 415-655-9753 www.msllp.law MILLAR AND ASSOCIATES, APLC James Millar 415-981-8100 x101 Millar-law.com NIVEN & SMITH Leo M. LaRocca leo@nivensmith.com

415-981-5451

REUBEN, JUNIUS & ROSE, LLP Kevin Rose 415-567-9000 www.reubenlaw.com

STEVEN ADAIR MACDONALD & ASSOCIATES, PC Steven Adair MacDonald (415) 956-6488 www.samlaw.net sam@samlaw.net WASSERMAN Dave Wasserman 415-567-9600 Dave@wassermanoffices.com www.davewassermansf.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 SOLUTIONS-PREMIER Aurora Garcia-Vidaca 415-893-9551 www.crownandshieldpestsolutions.com PREMIER CANINE DETECTION Jordan Garcia 415-612-6645 www.premiercaninedectection.com

COMMERCIAL/RETAIL LEASING SERVICES BLATTEIS REALTY CO. David Blastteis www.sfretail.net

415-981-2844

CONSULTANTS: PERMITS & PLANNING

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

CONTRACTORS

DECK & BALCONY INSPECTIONS, INC. Dan Cronk 916-548-6943 dan@deckandbalconyinspections.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

DRAIN SERVICES

PRIBUSS ENGINEERING, INC. Selina Pribuss 650-588-0447 selina.p@pribuss.com www.pribuss.com

ENVIRONMENTAL CONSULTING

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

FIRE ESCAPE INSPECTION & MAINTENANCE

BAY AREA CHIMNEY & FIRE ESCAPE INSPECTIONS Jerry Charton 415-333-5509 jerrycharton11@gmail.com ESCAPE ARTISTS Jabal Engelhard www.sfescapeartists.com

415-279-6113

GREAT ESCAPE SERVICES Rich Henderson 415-566-1479 www.greatescapeservice.com

FIRE PROTECTION CONTRACTORS AEC ALARMS

408-298-8888 Ext: 121 SFfire@aec-alarms.com BATTALION ONE FIRE PROTECTION Tim Morse 510-653-8075 www.battaliononefire.com COMMERCIAL FIRE PROTECTION, INC. Laine Sims 925-300-9534 www.fireprotected.com EMERGENCY SYSTEMS, INC. Eric Hagerman (415) 564-0400 esmfire@earthlink.net MAZZY’S FIRE PROTECTION Scott Mazzarella 415-665-5553 www.mazzysfire.com PRIBUSS ENGINEERING, INC. Selina Pribuss 650-588-0447 selina.p@pribuss.com www.pribuss.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 VALET LIVING Briana Sellers 813-613-5073 briana.sellers@valetliving.com www.valetliving.com

INSURANCE COMPANIES

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

LENDING / FINANCIAL SERVICES 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

PACKAGE SERVICE

FETCH Dan Beary 978-503-9540 dbeary@fetchpackage.com

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

415-254-7818

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

415-822-2011

PAINTING SUPPLIES

DUNN-EDWARDS PAINTS Daniela Franco 415-656-9951 daniela.franco@dunnedwards.com

PEST CONTROL

LENDING / INSTITUTIONS

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

CHASE COMMERCIAL TERM LENDING Sharon Groenendyk 415-315-8464 www.chase.com/commercialbanking

CROWN & SHIELD PEST SOLUTIONS-PREMIER Aurora Garcia-Vidaca 415-893-9551 www.crownandshieldpestsolutions.com

CHASE APARTMENT LENDING Andre C. Ferrigno 415-644-2171

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

MAVEN MAINTENANCE, INC. Craig Lipton 415-829-2207 www.mavenmaintenance.com WEST COAST PROPERTY MANAGEMENT Joseph Keng 415-885-6970 ext. 101 www.wcpm.com

MEDIATION

THE BAR ASSOCIATION OF SAN FRANCISCO CONFLICT INTERVENTION SERVICE Scott Goering 415-782-8940 sgoering@sfbar.org

ONLINE PAYMENT SERVICES

ARM MULTI INSURANCE SERVICES Lisa Isom 866-913-6293 www.arm-i.com

IMANAGE RENTS Hatef Maoghimi hatef@imanagerent.com wwwimanagerent.com

BARBARY INSURANCE BROKERAGE Gerald Becerra 415-788-4700 www.barbaryinsurance.com

ROOST Chanin Balance chanin@joinroost.com

415-547-0049

(503) 888-2528

THERMAL SOLUTIONS Jeremy Bedford (925) 381-6426 office@thermalsolutionspc.com

PLUMBING & HEATING

C.R. REICHEL ENGINEERING CO. INC. Tim Lordier 415-431-7100 www.crreichel.com PRIBUSS ENGINEERING, INC. Selina Pribuss 650-588-0447 selina.p@pribuss.com www.pribuss.com R & L Plumbing 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

PROJECT MANAGEMENT CREATIVE WEALTH CAPITAL MichaelGallin mike@creativewealthcapital.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

SF APARTMENT MAGAZINE | JULY 2022

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

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

EQUITY ONE Brenda M. Obra www.equity1sf.com

AYS MANAGEMENT Kevin Newsome 510-708-0165 ayspropertymanager@gmail.com

CREATIVE WEALTH CAPTIAL Michael Gallin 415-779-6241 mike@creativewealthcapital.com

GAETANI REAL ESTATE Paul Gaetani 415-668-1202 www.gaetanirealestate.com

BEAM PROPERTIES, INC. Darius Chan darius@sfbeam.com

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

415-221-2032

GEORGE GOODWIN REALTY, INC. Chris Galassi 415-681-1265 www.goodwin-realty.com

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

EBALDC Felicia Scruggs FScruggs@ebaldc.org

510-287-5353

GREENTREE PROPERTY MANAGEMENT Scott Moore 415-828-8757 www.greentreepmco.com

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

EMBC Nancy Wong www.ebmc.com nancywong@ebmc.com

415-254-8679

(707) 584-5123

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

CECCHINI REALTY CO. Dante Cecchini, CCRM www.cecchinirealty.com

415-550-8855

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 415-828-8757 www.greentreepmco.com HRH REAL ESTATE SERVICES CORPORATION Renee A. Engelen (415) 810-6020 www.hrhrealestate.com J. WAVRO PROPERTY MANAGEMENT James Wavro 415-509-3456 LINGSCH REALTY Natalie M. Drees www.lingschrealty.com

415-648-1516

PAUL LANGLEY COMPANY Misha Langley 415-431-9104 x 301 misha@plco.net

PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen 415-661-3860 www.propertymanagementsystems.net REAL MANAGEMENT COMPANY J.J. Panzer 415-821-3167 www.RMCsf.com S&L REALTY Robert Link www.slrealty-sf.com

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com SUTRO PROPERTY MANAGEMENT, INC. Salman Shariat 415-341-8774 www.sutroproperties.com

JULY 2022 | SF APARTMENT MAGAZINE

GM GREEN REAL ESTATE INC. George Green 415-608-6485 ggreen@gmgreen.com www.gmgreen.com GORDON CLIFFORD PROPERTIES, INC. Patrick Clifford 415-613-7694 patrick@gcpropertiessf.com HOGAN & VEST INC. Simon Wong hoganvest.com

415-421-7116

HRH REAL ESTATE SERVICES CORPORATION Renee A. Engelen (415) 810-6020 www.hrhrealestate.com INCOME PROPERTY SPECIALISTS Clayton Llewellyn 408-446-0848 www.ipsmanagement.cc JACKSON GROUP PROPERTY MANGEMENT, INC. Raymond Scarabosio 415-608-8300 ray@jacksongroup.net 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 MICSPACES, INC. Naeem Farhokhnia naeem@mlcspaces.com

818-404-8996

MYND MANAGEMENT, INC. Stacy Winship 510-306-4440 www.mynd.co

VERTEX PROPERTY GROUP Craig Berendt 415-608-3050 vertexsf.com

NEW GENERATION INVESTMENTS Jonathan Ng 415-735-8233 jtng.ngi@gmail.com

WEST & PRASZKER REALTORS Michael Klestoff 415-661-5300 www.wprealtors.com

OPEN WORLD PROPERTIES Jonathan Daryl Fleming 510-250-0946 jonathan@openworldproperties.com www.Openworldproperties.Com

WEST COAST PROPERTY MANAGEMENT Eric Andresen 415-885-6970 www.wcpm.com VESTA ASSET MANAGEMENT Paul Griffiths 415-360-9292 x 1 paul@vesta-assetmanagement.com

members

415-386-3111

415-441-1200

PAUL LANGLEY COMPANY Misha Langley 415-431-9104 x 301 misha@plco.net PILLAR CAPITAL REAL ESTATE Jonathan Ng (415) 885-9584 jonathan@thepillarcapital.com PONTAR REAL ESTATE Merri Pontar 415-421-2877 www.pontarrealestate.com

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

VERTEX PROPERTIESS Craig Berendt craig.berendt@gmail.com

PROEQUITYAM Frank Bumbalo frank@proequityam.com

415-531-2669

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

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

PROPERTY MANAGEMENT SOFTWARE

PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen, Broker, CCRM, MPM®, RMP® 415-661-3860 www.propertymanagementsystems.net RAMSEY PROPERTIES Brian E. Ramsey 415-474-5175 Brian@RamseyPropertiesSF.com REAL MANAGEMENT COMPANY J.J. Panzer 415-821-3167 www.RMCsf.com ROCKAWAY RESIDENTIAL MANAGEMENT Kristine Abbey 650-290-3084 www.rockawayresidential.com ROCKWELL PROPERTIES Mark Kaplan 415-398-2400 propertymanagement@rockwellproperties.com RNB PROPERTY MANAGEMENT GOLDEN GATE Kaveh Gorgani 415-413-3827 kaveh@rnbemail.com www.rnbgoldengate.com SAN FRANCISCO RENTAL CONCIERGE Danielle Mahoney 415-532-0041 danielle@sfrentalconcierge.com www.sfrentalconcierge.com SHARVEST PROPERTY MANAGEMENT, LLC Timothy D. Gilmartin 650-347-2020 tim@thegilmartins.com SIGNATURE REALTY PROPERTY MANAGEMENT Paul Montalvo 650-364-3167 paul@paulmontalvo.com SIERRA PROPERTY PROFESSIONALS Sonali Herrera sierrappinc@gmail.com SKYLINE PMG, INC. Nicholas Bowers 415-968-9903 Nicholas@skylinepmg.com STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com SUTRO PROPERTY MANAGEMENT, INC. Salman Shariat 415-341-8774 www.SutroProperties.com THRIVE PROPERTY MANAGEMENT, INC. Giovani Franco 650-296-3880 www.thrivecommunities.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 WOOD PARTNERS Melissa Rankin 628-251-1101 melissa.rankin@woodpartners.com

415-608-3050

APPFOLIO Mindy Sorenson 805-364-6098 mindy.sorenson@appfolio.com HEMLANE, INC. Dana Dunford dana@hemlane.com

385-355-4361

PROPERTY ATLAS Serina Calhoun 415-922-0200 serina@mypropertyatlas.com YARDI Kelly Krier kelly.krier@yardi.com

805-699-2040

REAL ESTATE APPRAISALS

www.terrencejones.com DINO MONTEVERDE dino@starboardnet.com EXP COMMERICAL Jeremy Williams 415-932-9846 jeremy@jeremywilliams.com www.sfcommercialrealty.com FERRIGNO REAL ESTATE Chris Ferrigno 415-641-0661 www.ferrignorealestate.com HRH REAL ESTATE SERVICES CORPORATION Renee A. Engelen (415) 810-6020 www.hrhrealestate.com ICON REAL ESTATE INC. Jason Quashnofsky jason@iconsf.com

(415) 370-7077

JHG415, INC. Jay Greenberg jay@jayhgreenberg.com

415-378-6755

KILBY STENKAMP-VANGUARD PROPERTIES Kilby Stenkamp 415-370-7582

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

LESLIE BURNLEY Leslie Burnley leslie.j.burnley@gmail.com leslieburnley.com

REAL ESTATE BROKERS & AGENTS

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

BERKSHIRE HATHAWAY FRANCISCAN PROPERTIES Edward Milestone 415-994-5969 MilestoneRealEstateSF@gmail.com

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

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

BIG TREE PROPERTIES Evan Matteo 415-305-4931 evan@bigtreeproperties.com COLDWELL BANKER COMMERCIAL NRT Steven Caravelli 415-229-1367 steven.caravelli@cbnorcal.com COLLIERS INTERNATIONAL- JAMES DEVINCENTI James Devincenti 415-288-7848 www.THEDLTEAM.com COLLIERS INTERNATIONAL Payam Nejad 415-288-7872 www.colliers.com/payam.nejad COMPASS COMMERCIAL BROKERAGE John Antonini 415-794-9510 john@antoninisf.com COMPASS COMMERCIAL BROKERAGE Chris J. Connor chris.oconnor@compass.com COMPASS COMMERCIAL BROKERAGE Adam Filly 415-516-9843 adam@adamfilly.com COMPASS COMMERCIAL BROKERAGE John Kirkpatrick (425) 412-0559 john.kirkpatrick@compass.com www.johnkirkpatrick.com COMPASS COMMERCIAL BROKERAGE Jay Greenberg (415) 378-6755 jay@jayhgreenberg.com CORCORAN GLOBAL LIVING COMMERCIAL Terrence Jones 415-786-2216 terrence@terrencejonesSF.com

415-717-8709

MORGAN REAL ESTATE ADVISORS, INC. Laurence Morgan 415-300-6503 laurence@morganrealestateadvisor.com www.morganrealestateadvisor.com

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

415-386-3111

STEELE PROPERTIES Ryan Steele 415-881-7762 www.steeleproperties.com W. REAL ESTATE Tim Mueller 415-961-6531 timothymueller@hotmail.com WEST & PRASZKER REALTORS Michael Klestoff 415-312-2245 klestoffmre@aol.com VANGUARD COMMERCIAL Allison Chapleau 415-516-0648 allison@allisonchapleau.com www.allisonchapleau.com ZEPHYR REAL ESTATE Dawn Cusulos 415-678-8854 dawncusulos@zephyrre.com

REAL ESTATE INVESTMENTS COMPASS COMMERCIAL BROKERAGE Trigg Splenda 415-593-8616

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

REFINISHING / RESURFACING SERVICE

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

SF APARTMENT MAGAZINE | JULY 2022

sfaa sfaa 2022 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

Units

Base Fee

Units Fee

$425 +

$7 per unit =

23 +

$380 +

$9 per unit =

TOTAL UNIT AMOUNT:

TOTAL AMOUNT:

Base Fee

1-22

$525 +

$4.50 per unit =

$480 +

$6.50 per unit =

CONTACT INFORMATION

Company/Title

Zip

J. WAVRO ASSOCIATES James Wavro www.jwavro.com

Mobile Phone Email Address

Website PAYMENT METHOD MC

949-702-1508

HRH REAL ESTATE SERVICES CORPORATION Renee A. Engelen (415) 810-6020 www.hrhrealestate.com

Address

Amex

(844) 459-1495

HAMILTON FAMILY CENTER Mayo Lunt 510-763-8540 x230 www.hamiltonfamiles.org

Contact Person

Check

COSTAR Aj Herlitz www.costargroup.com aherlitz@costar.com

GORDON CLIFFORD PROPERTIES, INC. PatrickClifford 415-613-7694 patrick@gcpropertiessf.com

ASSOCIATE MEMBER DUES: $499

State

RENTAL LISTING SERVICES

RESIDENTIAL LEASING

TOTAL AMOUNT:

City

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

ZUMPER, INC. Connor Hodges connor@zumper.com www.zumper.com

Unit Fee

23 + TOTAL UNIT AMOUNT:

REAL MANAGEMENT COMPANY Melinda Greene 415-230-8895 www.RMCsf.com

REALPAGE Stacey Blackwell 972-820-3015 stacey.blackwell@realpage.com www.realpage.com

MANAGEMENT COMPANY DUES Units

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

HRH REAL ESTATE SERVICES CORPORATION Renee A. Engelen (415) 810-6020 www.hrhrealestate.com

REGULAR MEMBER DUES

1-22

RENT BOARD PETITIONS

Visa

3 Digit Security Code

Card #

Expiration Date

Cardholder Name

Billing Zip Code

Authorized Signature

Date HOW DID YOU HEAR ABOUT US?

Referral From

Postcard/Mailer

Magazine

Website

Rent Board

Other

415-509-3456

KENNEY AND EVEREST REAL ESTATE, INC. Maureen Kenney 415-929-0717 maureen@kenneyrealestate.com LINGSCH REALTY Natalie M. Drees www.lingschrealty.com RELISTO Eric Baird www.relisto.com eric@relisto.com

415-648-1516

415-236-6116, x101

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

415-409-3263

RENTSFNOW Claussen kclaussen@veritasinv.com

415-762-0213

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com VERTEX PROPERTIES Craig Berendt 415-608-3050 www.berendtproperties.com 265 IVY STREET | SAN FRANCISCO, CA | 94102 | PHONE 415-255-2288 | FAX 415-255-1112

JULY 2022 | SF APARTMENT MAGAZINE

ROOFING

AGUILEAR CONSTRUCTION & ROOFING Javier Aguilera (707) 495-3932 javier@aguileraco.com

SECURITY

ADT SECURITY MULTIFAMILY Jeanette Mendez (817) 776-0301 jjmendez@adt.com TRKA AMERICAS Isabella Restrepo irestrepo@trakausa.com

407-735-1728

SECURITY DEPOSIT ALTERNATIVES THE GUARANTORS Jules Thetford jules@theguarantors.com

214-403-2792

SEISMIC RETROFIT & STRUCTURAL ENGINEERING THE GUARANTORS Jules Thetford jules@theguarantors.com

214-403-2792

BAI CONSTRUCTION Behnam Afshar 510-595-1994, x101 www.baiconstruction.com W. CHARLES PERRY Charles Perry www.wcharlesperry.com

650-638-9546

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

SUBMETERS

LIVABLE Daniel Sharabi www.livable.com

CONTRACTOR OR VENDOR?

ACCOUNTANTS

Shiff, Levy & Polo ALARM COMPANIES

AEC Alarms

ARCHITECTURE & DESIGN SERVICES

Adapt Dwellings Openscope Studio ATTORNEYS

Fried, Williams & Grice Conner LLP Kaufman, Dolowich & Voluck Zacks, Freedman & Patterson, PC FIRE ESCAPE CONTRACTORS

Great Escape Fire Escape LOCKSMITHS

Crown Lock & Safe Warman Security 415-937-7283

TENANT PLACEMENT & LISTING

CAZERIA, INC Julia D’Antonio julia@cazeira.com

ad index NEED A PROFESSIONAL

415-754-5373

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

WATER CONSERVATION SERVICE

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

PAINTING CONTRACTORS

Colores Painting Kruit Painting Pac West Painting Tara Pro Painting

PETITION SERVICES

Rent Board Passthroughs PROCESS SERVERS / PRIVATE INVESTIGATORS

Rhino Process Serving, LLC

Rentals in SF Vertex Properties West Coast Property Management

PROPERTY MANAGEMENT SOFTWARE

19 49

REAL ESTATE BROKERS

63 40 65 68 66 64 61 64 64 68 66

Yardi Breeze

49 6 53 27

Amore Real Estate 64 Blatteis 47 Coldwell Banker Commercial / Caravelli 31 Coldwell Banker Commercial / McGue 13 Colliers / Devincenti 2 Compass / Antonini 71 Compass / Bonn & Webb 17 Compass / Filly 11 Compass / Greenberg & Splenda 3 Compass 43 HRH Real Estate 53 Intero /Ojeda 61 Kay Properties 45 Marcus & Millichap 32-33 Maven Multifamily 37 Vanguard Commercial / Chapleau 9 Vanguard Properties / Stack 60 UTILITIES BILLING SERVICES

Livable

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.

PROPERTY MANAGEMENT & MAINTENANCE & RESIDENTIAL LEASING

Gaetani Real Estate, Inc. Maven Maintenance Real Management Company

72 41 65

WATER DAMAGE SERVICE

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

WATERPROOFING

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

SF APARTMENT MAGAZINE | JULY 2022

sfaa sfaa 2022 What You Need to Know

The News… continued from page 10

a two-minute visit at my booth,” said Maria Neumann, owner of Fire & Water Damage Recovery and an annual sponsor of the event. “I’ll be there next year, too!”

SFAA Updates

Website Revamp: SFAA has revamped its website! The improved, easy-to-navigate site is up and running. Check it out at

2022 SFAA UPDATES

VIRTUAL MEMBER MEETING WEDNESDAY, JULY 20 9:00 A.M.

WEDNESDAY, AUGUST 16 9:00 A.M.

sfaa.org. 2022 SFAA Residential Tenancy Agreement: The SFAA 2022 lease is available

in-print and online for $25. To access the lease, visit sfaa.org. SFAA Office Reopening Status: As SFAA pivots to provide you services during the pandemic, there is a new way to connect with SFAA. Email MemberQuestions@sfaa. org to have your questions and concerns

UPCOMING CLASSES During the pandemic, the monthly SFAA member meetings and classes will be held virtually. For member meeting topics and schedules, go to www.sfaa.org. For a list of virtual SFAA classes, turn to the calendar on page 50.

SFAA OFFICE CLOSURE While the SFAA office remains closed to the public, staff is working round-the-clock to keep the nonprofit running. Timely payment of membership dues is necessary to help the association help you. Email MemberQuestions@sfaa.org to have your questions and concerns promptly addressed.

promptly addressed. While the SFAA office remains closed to the public, SFAA staff is working round-the-clock to keep the nonprofit running. Timely payment of membership dues is necessary to help the association help you. SFAA Classes: Classes are available online. SFAA is happy to announce that current CCRM students can continue their education right from home. We understand keeping up with education is crucial and want to assist our members to stay up to date. See the calendar on page 50 for a full list of classes.

Mike Stack

Real Estate Advisor

Call or email me today for a free & private analysis of your property’s value. 415.580.9095

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

mikestack@vanguardsf.com MikeStackSF.com

D R E# 0193228 0

JULY 2022 | SF APARTMENT MAGAZINE

A Berkshire Hathaway Affiliate

350 GREEN STREET SAN FRANCISCO, CA 94133

RHINO

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REALTOR®

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Call For More Information. SF APARTMENT MAGAZINE | JULY 2022

SACRAMENTO REPORT

COLUMN

Out With the Bad w r i t t e n b y DE B R A C A R LT O N

Read on to find out how the California Apartment Association has been helping you.

affordable housing, infrastructure, and transportation.

Year-Long Process to Sell Rental Housing AB 2710, by Assemblymember Ash Kalra (D-San Jose), died in the Assembly

tate lawmakers in Sacramento

imposing rent caps on owners who

Housing and Community Development

are never short on ideas to

hold property as a real estate invest-

Committee. The author, lacking the nec-

regulate the rental housing

ment trust, a corporation, or a limited

essary votes to advance the legislation,

industry. Even as the industry

liability company in which at least one

pulled the item from consideration.

has faced limited rental income during

member is a corporation,” the Califor-

the pandemic, lawmakers kept pushing

nia Apartment Association (CAA) said

Under Kalra’s bill, rental owners

for taxes, fees, and other requirements

in a letter opposing Nazarian’s bill. “The

would have been prohibited from

on rental housing providers. Here’s a

law also imposes just cause eviction re-

putting their properties up for sale—

look at some of those bills opposed by

quirements on these holdings. AB 1791

whether they be apartments or a sin-

CAA that will not advance this legisla-

is not necessary.”

gle-family rental—until they had given

tive session.

Rent Control and Taxes: One Bill, Two Bad Ideas

advance notice to “qualified entities,” The bill failed to be heard in an Assem-

such as certain tenant organizations,

bly Committee and died as a result.

community land trusts, and affordable housing nonprofits.

An early version of AB 1791, by Assem-

25% Tax on Rental Housing Sales

blymember Adrin Nazarian (D-North

The California Apartment Association,

The notified groups would then have

Hollywood), attacked California hous-

working with the California Associa-

been given a first right to purchase the

ing providers by proposing a $500

tion of Realtors, derailed legislation that

property and receive excessive time—

excise tax on all residential property, in-

would have levied a heavy tax on indi-

nearly one year—to secure financing.

cluding rental property. Nazarian gutted

viduals who purchase rental housing

A group expressing interest in buying

that legislation and amended it to focus

and sell it within seven years.

the rental property would have had to contact each tenant to share the news, a

on Costa-Hawkins. The anti-house-flipping legislation from

potential invasion of privacy.

As amended, AB 1791 would have

Assemblymember Chris Ward (D-San Di-

authorized cities and counties to cap

ego), failed to advance from the Assem-

“Your AB 2710 is an extraordinary and

rent increases on single-family rentals,

bly Revenue and Taxation Committee.

unrealistic proposal to transfer private rental property as well as tenants’ per-

regardless of their age, if owned by corporations with ten rental units or more

AB 1771 would have created a 25 per-

sonal information to nonprofit organi-

and with a specified gross income.

cent tax on the capital gain produced by

zations,” CAA’s opposition letter said.

the sale of residential property within

“With its extensive timelines and man-

At present, Costa-Hawkins protects

three years of buying it. The tax rate

datory transfer of tenant information,

both new housing—built after 1995—and

would then have declined by 5 percent-

AB 2710 does not appear to be a serious

single-family homes from local rent con-

age points each year until reaching zero

proposal to create affordable housing

trol ordinances. The bill also overlooked

after seven years.

in California.”

renters under the California Tenant Pro-

Tax revenue collected through AB 1771

tection Act of 2019, passed as AB 1482.

would have gone to a newly created

Rental Registry Proposal Dies Again

“Speculation Recapture Community

The author, Assemblymember Buffy

“The state legislature has already ad-

Reinvestment Fund” to be disbursed

Wicks (D-Oakland), pulled her bill—

dressed this type of ownership by

to local governments for schools,

AB 2469—from consideration in the

existing safeguards for single-family

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Assembly Housing and Community

rents to meet the many expenses of

Development Committee.

operating a rental property—mortgage, taxes, insurance, and ongoing mainte-

The California Apartment Association

nance and repairs. A bad tenant is a sure

opposed AB 2469 and three prior rental

route to bankruptcy.”

registry bills introduced by Wicks. Her latest proposal would have required owners

For more information about these bills and

to submit a rental registry form each year

other bills that CAA is working to stop, go

to the state Department of Housing and

to caanet.org.

Community Development. The form would have required a variety of data, such as the

Debra Carlton is the Executive Vice President of State Government Affairs and Compliance at the California Apartment Association.

Passthroughs

PAY! Take advantage of the Rent Board rules that benefit you.

We prepare petitions for • Soft Story/Voluntary Seismic

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• General Capital Improvements • Operating and Maintenance

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the past year, as well as the number of days a unit went vacant. The bill also would have required the state

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

to publish this information on a public

Call us today at

online rental registry portal. Moreover, it

415-333-8005

would have prohibited an owner from in-

to find out how you can benefit.

creasing the rent or terminating a tenancy unless the owner had registered their units on the rental registry. A previous iteration of Wicks’s proposal would have cost taxpayers more than

Get information on SFAA classes, apartment industry news & excerpts from SF Apartment Magazine at www.sfaa.org SLP_SFApt_Ad_0813_Shwiff_SFaptAd_0813 8/19/13 3:58 PM Page 1

$20 million initially and then $10 million per year to administer, while creating privacy concerns for both property

EXPERTISE

■

INTEGRITY ■ SERVICE

■

VALUE

owners and residents.

Bill to Prohibit the Use of Credit Reports At the request of CAA, Assemblymember Sharon Quirk-Silva (D-Fullerton), agreed to shelve her proposal to prohibit the use of credit reports during tenant screening.

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

AB 2527 would have prohibited property owners from asking potential tenants any-

EXPERIENCED, RESPONSIVE REAL ESTATE ADVISORS

thing that would be included in a report, such as payment history or evictions. ■

“A credit report is the primary tool a rental

■

property owner has to make the most objective determination about the ability of a

■

potential tenant to pay the rent,” said a CAA opposition letter.

■ ■

A CAA member said it well: “The financial solvency of rental property owners is directly linked to the financial responsibility of the renters. We depend on the proper cash flow provided by monthly

JULY 2022 | SF APARTMENT MAGAZINE

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sfaa’s

New Housing Inventory Webinar

Come find out about San Francisco’s newly passed mandatory unit registration and licensing law. Soon all San Francisco landlords will have to annually register every rental unit with the Rent Board. The information that must be disclosed each year will include dates of occupancy, the square footage, amenities offered, the amount of rent, owner contact information, and more. In addition, you will have to obtain a unit license in order to adjust rent as well as satisfy other requirements under this very challenging regulation. INSTRUCTORS:

Dave Wasserman, Wasserman LLP, and Curtis Dowling, Dowling & Marquez DATE & TIME:

WEBINAR:

COSTS:

For more information, contact Stephanie Alonzo at 415-2552288 x113 or stephanie@sfaa.org.

Friday July 8, 2022 10:00 a.m. to 11:00 a.m. Members: $45 Non-Members:$65

Once you complete registration you will be sent a separate link to register for the Zoom system.

sfaa’s Lunch & Learn

Noise Webinar

Does your tenant make a lot of noise? Are other tenants complaining about another tenant’s noise? What are the rules for quiet time in a building? Learn on your lunch how to deal with nuisance and compaints. The instructor is Michelle Horneff-Cohen of Property Management Systems. DATE & TIME:

Wednesday July 6, 2022 12:00 pm - 1:00 pm COST

Members: $45 Nonmembers: $65

REGISTRATION:

Contact Stephanie Alonzo at 415.255.2288 x113 or stephanie@sfaa.org Once you complete registration you will be sent a separate link to register for the Zoom system.

SF APARTMENT MAGAZINE | JULY 2022

Living in 3D… continued from page 26

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Be On Your A Game.

Legal Questions

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

JULY 2022 | SF APARTMENT MAGAZINE

SFAA’s2022 sfaa’s 2021

TROPHY AWARDS SHOW Joinaus as a Sponsor! Be Sponsor! St. Regis Hotel Rooftop Terrace Thursday October 13th, 2022 5 p.m. - 8 p.m.

October 13, 2022 PLATINUM $10,000

• Full page advertisement in event program.

and premium seating. • Complimentary cocktails during pre-show. • Present one award to a trophy winner. • Feature in SF Apartment Magazine. • Video for use on your website or in advertising your business. • Recognition of sponsorship in SF Apartment Magazine and on the SFAA website. • Hyperlink from SFAA homepage for one month to your company website. • Mention of your business in event program. • Mention of your business in awards presentation.

GOLD $5,000 • Half page advertisement in event program. • Six tickets to the event and premium seating. • Complimentary cocktails during pre-show. • Recognition of sponsorship in SF Apartment Magazine and on the SFAA website. • Hyperlink from SFAA homepage for one month to your company website. • Mention of your business in event program. • Mention of your business during awards presentation.

SILVER $2,500 • Quarter page advertisement in event program. • Four tickets to the event. • Hyperlink from SFAA homepage for one month to your company website. • Recognition in SF Apartment Magazine and on the SFAA website. • Mention of your business in event program. • Mention of your business during awards presentation.

For more information visit www.sfaa.org or contact Vanessa Khaleel at 415.255.2288 or vanessa@sfaa.org St. Regis Hotel, 125 3rd Street, San Francisco, CA 94103 I Cocktails & Presentation SFAward APARTMENT MAGAZINE | JULY

2022

2022 Summer CCRM Webinar Night Series Schedule & Registration Course Course Name #

Date

PRICE

Time

Member

# of NonTotal Member Attendees

Series

Full CCRM Series (Value Savings)

PMR100

Introduction to Ethical Property Management

7/12/2022

6PM-9PM

$85.00

$100.00

PMR101

Renting the Property

7/19/2022

6PM-9PM

$85.00

$100.00

PMR102

Beginning and Maintaining the Tenancy

7/26/2022

6PM-9PM

$85.00

$100.00

PMR103

Renewal of Tenancy and Ending the Tenancy

8/2/2022

6PM-9PM

$85.00

$100.00

PMR104

Maintenance Management: Maintaining the Property

8/9/2022

6PM-9PM

$85.00

$100.00

PMR105

Liability & Risk Management

8/16/2022

6PM-9PM

$85.00

$100.00

PMR106

Budget Development and Implementation

8/23/2022

6PM-9PM

$85.00

$100.00

PMR107

Fair Housing: It’s the Law

8/30/2022

6PM-9PM

$85.00

$100.00

PMR108

Professional Skills for Supervisors

9/6/2022

6PM-9PM

$85.00

$100.00

EXAM

CCRM Final Exam

9/13/2022

6PM-9PM

FREE

See schedule below

Class Location Zoom Webinar System Upon registration the Zoom link will be emailed to the student Class is every Tuesday Instructor: Ryan Patrick, Wiegel Law Group

FREE

Total Due:

To Register

Online: www.sfaa.org Call: 415-255-2288 x110 Email: maria@sfaa.org

(includes 9th Edition Managing Rental Housing textbook, CCRM binder and Welcome Packet; does not include the $75 CCRM application fee)

Attendee Information: o Member

Attendee Name:

Title:

Company Name:

Address

City:

Phone:

Fax:

E-Mail:

Local Association ID Number:

Payment Information: o Credit Card

Zip:

o Mailing Check o Series Invoicing (members only benefit)

Credit card number: Signature:

o Non Member

Exp. Date Name printed:

Cancellation Policy: Cancellations must be made 72 hours in advance for a refund. SFAA does not provide refunds for No-Shows. Non-members must pay by credit card only!!!

*Students requesting CalBRE Continuing Education Credits must show picture ID, immediately before admittance to the live offering.

caanet.org events@caanet.org

JULY 2022 | SF •APARTMENT 800.967.4222 980 NinthMAGAZINE Street, Suite 1430 • Sacramento, CA 95814

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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 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.

SF APARTMENT MAGAZINE | JULY 2022

TO MOST PEOPLE, THIS BUILDING’S KEY FEATURE IS ITS IMPRESSIVE FACADE

TO YOU, IT’S THE FOUNDATION FOR A SECURE RETIREMENT. We know the properties we manage mean more to owners like you than meets the eye. That’s why, for over 70 years and across three generations of our own family, we’ve taken the long view -- building great working relationships as we build value. Because when it comes to taking care of your investment, we definitely see eye-to-eye.

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