San Francisco Apartment Ass'n v. City & County of San Francisco

142 F. Supp. 3d 910, 2015 U.S. Dist. LEXIS 150630, 2015 WL 6747489
CourtDistrict Court, N.D. California
DecidedNovember 5, 2015
DocketCase No. 15-cv-01545-PJH
StatusPublished
Cited by3 cases

This text of 142 F. Supp. 3d 910 (San Francisco Apartment Ass'n v. City & County of San Francisco) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
San Francisco Apartment Ass'n v. City & County of San Francisco, 142 F. Supp. 3d 910, 2015 U.S. Dist. LEXIS 150630, 2015 WL 6747489 (N.D. Cal. 2015).

Opinion

ORDER GRANTING MOTION FOR JUDGMENT ON THE PLEADINGS

PHYLLIS J. HAMILTON, United States District Judge

Defendant’s motion for judgment on the pleadings came on for hearing before this court on September 30, 2015. Plaintiffs appeared by their counsel James R. Parri-nello and Christopher E. Skinnell, and defendant appeared by its counsel Assistant San Francisco City Attorney Jeremy M. Goldman. Having read the parties’ papers and carefully considered their arguments and the relevant legal authority, the court hereby GRANTS the motion as follows.

BACKGROUND

On October 21, 2014, the San Francisco Board of Supervisors enacted Ordinance No. 225-14 (“the Ordinance”), which became operative on March 7, 2015, and imposes requirements on the process of negotiating tenant buyouts.

The Ordinance amended the San Francisco Administrative Code to add § 37.9E,

1) to require landlords to provide tenants with a disclosure of the tenants’ rights before the. landlord commences buyout negotiations; 2) to require landlords to file a form with the [San Francisco] Rent Board indicating the address of the unit that may become the subject of buyout negotiations; 3) to require all buyout agreements to be in writing and to include certain statements about the tenant’s rights; 4) to allow tenants to rescind buyout agreements for up to 45 days after the agreements are fully executed; 5) to require landlords to file a copy of buyout agreements. with the Rent Board and to pay a fee to the Rent Board; 6) to require the Rent Board to create a publically available, searchable database of buyout agreements; 7) to require the Rent Board to provide an annual report to the Board of Supervisors regarding tenant buyouts; 8) to authorize tenants to bring civil actions for actual ■ damages and civil penalties against landlords who fail to provide the required disclosures about the tenants’ rights; and 9) to authorize certain nonprofits to bring civil actions for a landlord’s failure to file a buyout agreement with the Rent Board.

Ord. No. 225-14. The Ordinance also amended § 1396 of the San Francisco Subdivision Code to “prohibit buildings from entering the condominium conversion lottery if the owners of the building have entered certain tenant buyout agreements.” Id.

The stated purpose of the Ordinance is to “increase the fairness of buyout negotiations and agreements by requiring land[917]*917lords!1] to provide tenants with a statement of their rights and allowing tenants to rescind a buyout agreement for 45 days after signing the agreement, thus reducing the likelihood of landlords pressuring tenants into signing buyout agreements without allowing the tenants sufficient time to consult with a tenants’ rights specialist.” S.F. Admin. Code § 37.9E(a). Another stated goal of the Ordinance is to “help the City collect data about ... the number, location, and terms of the buyout agreements!,]” in order to understand the level of tenant displacement in San Francisco. See id.

Plaintiffs in this action are four organizations of residential landlords, property managers, and/or realtors — the San Francisco Apartment Association (“SFAA”), the Coalition for Better Housing (“CBH”), the Small Property Owners of San Francisco Institute (“SPOSFI”), and the San Francisco Association of Realtors (“SFAR”)— and one individual landlord, Norman T. Larson (“Larson”). Defendant is the City and County of San Francisco (“CCSF”).

Plaintiffs initiated this action by filing a “petition for writ of mandate” and a “complaint for injunctive and declaratory relief’ in the Superior Court of California, County of San Francisco, on March 5, 2015. Plaintiffs seek an order declaring the Ordinance to be illegal and unenforceable in whole or in part. CCSF removed the case on April 3, 2015, alleging federal, question jurisdiction based on allegations of federal constitutional violations. Plaintiffs assert three causes of action — (1) writ of mandate, based on alleged violation of rights under the U.S. and California Constitutions;2 (2) injunctive relief; and (3) declaratory relief.

In the first cause of action, plaintiffs allege that the Ordinance violates free speech rights under the U.S. and California Constitutions; violates “the right to enter into voluntary settlement of disputes” (no constitutional provision specified); violates equal protection and due process rights under the U.S. and California Constitutions; and violates the right to privacy under the California Constitution. Plaintiffs challenge the following provisions of the Ordinance:

The Disclosure Provision — Prior to commencing buyout negotiations,3 the landlord must give the tenant a form developed by the San Francisco Rent Board containing a disclosure of tenants’ rights and an explanation of how to obtain advice and information regarding buyout agreements. S.F. Admin. Code § 37.9E(d)(1)-(6). The form must also disclose the condomin[918]*918ium conversion restrictions that apply to certain buyouts and, if the landlord is an entity, the identity of persons within that entity who have negotiating and decision-making authority. Id. § 37.9E(d)(7)-(8). In addition, the form must contain a space for the tenant to sign and write the date he/ she was provided with the disclosure. Id. § 37.9E(d)(10). Plaintiffs allege that the Disclosure Provision violates landlords’ right to free speech, and to due process and/or equal protection. See.Cplt ¶¶ 14, 16.

The Notification Provision — Prior to commencing buyout negotiations, landlords must provide the Rent Board with a statement signed under penalty of perjury that the landlord provided.each tenant with the disclosures described in § 37.9E(d) and set forth above. S.F., Admin. Code § 37.9E(e)(4). The notification must also include the landlord’s name and business contact information, the tenant’s name, and the address of the unit that may be the subject of buyout negotiations'. Id. § 37.9E(e)(l)-(3). The Rent Board is required to make this information publicly available, except that information regarding the tenant’s identity shall be redacted. Id. § 37.9E(e). Plaintiffs ■ assert that the Notification Provision violates landlords’ rights to free speech, equal protection, and privacy. See Cplt ¶ 16.

The Rescission Provision — The Ordinance contains a procedural protection for tenants in the form of a right of rescission for a period of 45 days following execution of the agreement. S.F. Admin. Code §• 37.9E(g). Plaintiffs contend that because the Rescission Provision grants a tenant the power to unilaterally rescind a buyout agreement for 45 days after it is entered into, but grants an owner no similar power, it violates the landlords’ rights to equal protection and/or due process. See Cplt ¶ 16.

The Database Provision — If a buyout agreement is ultimately signed (and not rescinded by the tenant), landlords must file a copy with the Rent Board within two weeks following the expiration of the 45-day rescission period. S.F. Admin Code § 37.9E(h). The Rent Board maintains a searchable database, publicly accessible at its office, of the information in the agreements, and includes a copy of the agreement with the identity of the tenant redacted. Id, § 37.9E(i). Plaintiffs contend that the Database Provision violates landlords’ rights to equal, protection and/or due process, and privacy. See Cplt ¶ 17.

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142 F. Supp. 3d 910, 2015 U.S. Dist. LEXIS 150630, 2015 WL 6747489, Counsel Stack Legal Research, https://law.counselstack.com/opinion/san-francisco-apartment-assn-v-city-county-of-san-francisco-cand-2015.