Paschal v. City and County of San Franisco

District Court, N.D. California·Decided February 10, 2023·No. 3:22-cv-03604·Unknown

Opinion

MARK A. PASCHAL, Case No. 22-cv-03604-WHO

Plaintiff, ORDER GRANTING MOTION TO v. DISMISS

CITY AND COUNTY OF SAN Re: Dkt. No. 36 FRANISCO, et al., Defendants.

Defendants City and County of San Francisco (“the City”), Diego Sanchez, and Adrian Putra (collectively “the defendants”) move to dismiss a Second Amended Complaint (“SAC”) brought by plaintiff Mark Paschal, who alleges that the defendants discriminated against him based on his race and otherwise violated his constitutional rights when San Francisco’s Office of Short-Term Rentals (“OSTR”) denied his application to run a short-term rental business out of his home. The SAC is largely unchanged from Paschal’s First Amended Complaint (“FAC”), and for the same reasons that I dismissed the FAC I will dismiss the SAC. It does not state facts that plausibly allege violations of the First or Fourteenth Amendments to further Monell or section 1983 claims. It does not state a claim under Title VI of the Civil Rights Act of 1964. Although the SAC clarifies that the final claim is asserted under California Government Code section 815.2, Paschal has not alleged any wrongdoing by Sanchez or Putra for which the City could be liable. Because Paschal did not make any substantive attempt to cure the deficiencies that I previously identified and because amending his claims would be futile, they are DISMISSED with prejudice. Paschal, who is African American, owns a home located on Hayes Street in San Francisco. of that location. Id. ¶ 21. As with Paschal’s prior complaint, “[t]o understand the context of his claims, one must understand the statutory and regulatory scheme under which they arise.” See Order Granting Mot. to Dismiss (“First MTD Order”) [Dkt. No. 29] 1:27-2:1. This scheme is set forth in San Francisco Ordinance No. 218-14 governing short-term residential rentals, for which the defendants request judicial notice. See Defs.’ RJN [Dkt. No. 36-1] Ex. A. I will take notice because the facts within can be accurately and readily determined from sources whose accuracy cannot reasonably be questioned and because “[m]unicipal ordinances are proper subjects for judicial notice.” See Fed. R. Evid. 201(b)(2); Tollis, Inc. v. Cnty. of San Diego, 505 F.3d 935, 938 n.1 (9th Cir. 2007) (citation omitted). The full framework is described in my prior Order dismissing Paschal’s claims, which I incorporate by reference here. See First MTD Order at 2:2-3:4. Briefly: Permanent residents of San Francisco may offer their homes as short-term rentals under certain conditions. Defs.’ RJN, Ex. A, S.F. Ord. No. 218-14 at 1:3-11 (Oct. 27, 2014). They may do so if, among other things, they (1) occupy the home for no less than 275 days out of the calendar year in which the home is rented as a short-term residential rental and (2) maintain records for two years demonstrating compliance with the relevant laws, “including but not limited to information demonstrating primary residency,” the number of days per calendar year that they occupied the home, and the number of days that it was rented. S.F. Admin. Code § 41A.5(g)(1). Residents must apply for a short-term rental certificate that “shall contain information sufficient to show” that their home is their primary residence and that they are the home’s permanent resident. See id. § 41A.5(g)(2)(C), (3)(A). Primary residency “shall be established by showing the residential unit is listed as the applicant’s residence on at least two of the following: motor vehicle registration; driver’s license; voter registration; tax documents . . . or utility bill.” Id. § 41A.5(g)(3)(A). The city’s Planning Department “may require any other additional information necessary to show” compliance with the short-term residential provisions. Id. If a resident’s application is approved, their certificate lasts for two years, at which point they may file a renewal application that contains “sufficient information to show that the applicant is the calendar years.” See id. After renting Paschal’s home since 2015, Paschal and his sister submitted a renewal application in June 2019. See SAC ¶¶ 55-56. They never received a response. Id. ¶ 56. Paschal and his sister reapplied in February 2021. Id. ¶ 62. Again, they received no response. Id. ¶ 63. By this point, the COVID-19 pandemic had begun. See id. ¶ 62. Concerned that the pandemic had “essentially shut the industry down” and by the lack of response from the OSTR, the Paschals placed an ad for a “lodger” tenant “[t]o keep some form of income coming in.” Id. ¶ 64. Two weeks later, they removed the ad “due to a change of heart.” See id. ¶ 65. On May 13, 2021, the OSTR denied Paschal’s application “because of the two week ad placed in February.” Id. ¶ 67. In its denial letter, the OSTR told Paschal that “[b]ased on a review of publicly available information . . . it appears that you are not the permanent resident of the residential unit . . . being offered for short-term rentals.” Id. ¶ 79 (citing Ex. 4).1 The letter said that it did not appear that Paschal lived in the unit for at least 275 nights in 2020, citing a Zillow listing offering the apartment as a “semi-furnished long-term rental” that was “available for immediate occupancy.” See id. ¶ 79; Ex. 4. It also noted that per public records, Paschal was registered to vote at another address, located on Peralta Avenue in San Francisco. See id., Ex. 4. Paschal, who denies ever moving from his home, requested a meeting with OSTR and the mayor. Id. ¶¶ 66, 75. In June 2021, he met with Putra, who denied his application, and Sanchez, Putra’s supervisor. See id. ¶¶ 77-78. Putra said that the “primary concern were rules that mandated the host live in an apartment the required number of days a year,” and that records showed that Paschal was registered to vote at another address. Id. ¶ 78. Paschal alleges that Sanchez and Putra ignored his driver’s license, which listed the Hayes Street address as his 1 I will consider the letter without converting the motion to dismiss into one for summary judgment, as the letter is both attached to the SAC and incorporated by reference. See United States v. Ritchie, 342 F.3d 903, 908 (9th Cir. 2003) (“A court may . . . consider certain materials— documents attached to the complaint, documents incorporated by reference in the complaint, or matters of judicial notice—without converting the motion to dismiss into a motion for summary judgment.”) (citations omitted). The letter’s contents are described and it is integral to Paschal’s complaint. See Tunac v. United States, 897 F.3d 1197, 1207 n.8 (9th Cir. 2018) (“Although mere mention of the existence of a document is insufficient to incorporate the contents of a document, residence. Id. ¶ 80. Paschal alleges that Putra and Sanchez discriminated against him because of his race in denying his short-term rental certificate. Id. ¶ 83. He filed a complaint of racial discrimination and unfair business practices against the OSTR. Id. ¶ 84. Despite doing so, he alleges, Sanchez still heard Paschal’s appeal of the denial of his short-term rental certificate, during which Sanchez asked “retaliatory arbitrary questions.” See id. ¶¶ 3, 85, 94. Paschal alleges that these questions, including whether a stove in his home was permitted, “were not asked [of] any other applicants or appellant but meant to harass” him. See id. ¶¶ 92-95. In June 2022, Paschal filed this suit against the City, OSTR, and five Doe defendants, alleging a Monell claim, a violation of 42 U.S.C. §

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