February 2022 SF Apartment Magazine

SF APARTMENT magazine

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San Francisco Apartment Association February 2022 / $7.00

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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.

SENIOR SALES ASSOCIATE COMPASS COMMERCIAL

415.308.6560 TRIGG@TRIGGSPLENDA.COM DRE 01484698

SF APA magazine

SF APARTMENT

contents

Features

20

Island of Dreams

by DEVIN SMITH

32

Pass Through the Buck

by J.J. PANZER

38

Rest Insured

by CAROLINE ROSENBERG

20 4

FEBRUARY 2022 | SF APARTMENT MAGAZINE

P h o t o c o u r t e s y o f JAC K N AG S

PARTM Columns

Membership

8

42

All in One Lease

Call Off the Dogs

The News

14

Court Talk

Legal Q&A

by VARIOUS AUTHORS

48

Serves You Right

Bridge Brief

by CLIFFORD E. FRIED

Opulent Optimism

18

by JEREMY WILLIAMS

54

Calendar

56

Professional Services Directory

60

Membership Application

Planning Ahead Abode à la Mode

by M. BRETT GLADSTONE

20

SF APARTMENT MAGAZINE | FEBRUARY 2022

5

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

6

FEBRUARY 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 Manager Maria Shea Member Services Gershay Castaneda

Accountant Crystal Wang

SFAA Officers President Chris Bricker

Vice President Robert Link Treasurer Jim Hurley

Secretary Mark Henderson

SFAA Directors Eric Andresen, Honor Bulkley, Andre Ferrigno, David Gruber,

VOLUME XXXV, NUMBER 2 FEBRUARY 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. 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 Jostens Printing Co. Copyright @2022 by SFAA.

Kent Mar, Neveo Mosser, J.J. Panzer, Bert Polacci, James Sangiacomo, Dave Wasserman

SF APARTMENT MAGAZINE | FEBRUARY 2022

7

COLUMN

THE NEWS

rights and access, as well as makes it clear that tenants cannot install their own video equipment outside of their unit, including a prohibition of Ringtype doorbells. And with the help of the SF Fire Department, we have created a new paragraph about electrical safety related to charging battery-powered equipment, the use of extension cords,

All in One Lease

After significant review and updates, the 2022 SFAA residential tenancy agreement is now available.

ing circuits.

We have also incorporated the Unit Registration language within the RTA so that we no longer need to use the addendum that was available last year. This also means that we have updated the list

Editor’s Note: State and federal guide-

cannot prove that delivery of the Lead

of Addenda in the RTA, reflecting the

lines and legislation are constantly

Pamphlet occurred prior to the tenant

changes in both the required and the

changing regarding COVID-19. For the

signing or otherwise becoming con-

optional documents.

latest information, resources, financial

tractually bound to the RTA, which is

aid, and forms, visit www.sfaa.org or

a requirement under federal law. The

You will also find that we have moved

www.caanet.org/coronavirus.

questions are about when and how

the final signature page to the very end

delivery occurs, and lawsuits have been

of the RTA. This was an incredibly im-

2022 SFAA Residential Tenancy Agreement Is Now Available!

mounted based upon this concern.

portant change because we are required

There are some significant changes to

In addition, the CDC has issued a new

the Mold Pamphlet before a lease appli-

this year’s Residential Tenancy Agree-

mold pamphlet (“Mold Pamphlet”)

cant becomes contractually bound to a

ment (RTA). The most obvious is that the

regarding the health dangers of mold,

lease. Since these documents are now in-

length of the RTA has grown signifi-

and we are now required to provide the

corporated within the pages of the RTA

cantly as a result of recent legal battles

Mold Pamphlet in the same manner that

prior to the final signatures, members

pertaining to lead disclosures as well

we provide the Lead Pamphlet. Updates

should be compliant with federal law.

as a new requirement to include more

to various signature blocks have been

mold information from the Centers for

made to confirm the delivery, and we

The committee did review quite a few

Disease Control (CDC). Because of the

believe these changes will better protect

edits and suggestions that had been sub-

document’s long length and many parts,

our members in the future.

mitted by members, and many of those

to deliver both the Lead Pamphlet and

were also incorporated this year. We

we strongly recommend that members always use the digital version of the RTA

There is a new “Use” paragraph related

always appreciate your comments and

rather than purchasing the printed ver-

to areas outside the rental unit such as

concerns, and we look forward to hear-

sion. Information about this service is

storage and parking, which clarifies that

ing more of them in the future.

available from the SFAA staff.

the owner has the right to make changes to the locations, or if necessary, to termi-

For instructions on how to access the

The new RTA now includes the re-

nate the use of certain housing services

lease, turn to the sidebar on page 10.

quired “Protect Your Family from

with an appropriate and strictly defined

Lead in Your Home” lead paint disclo-

reduction in rent.

Annual Allowable Rent Increase 2.3%

within the document itself. There is

The RTA now has stronger language

Effective March 1, 2022 through Febru-

significant concern that many owners

regarding video surveillance and related

ary 28, 2023, the allowable annual rent

sure pamphlet (the “Lead Pamphlet”)

8

and cautions about potentially overload-

FEBRUARY 2022 | SF APARTMENT MAGAZINE

ALLISON CHAPLEAU M U LT I - U N I T. M I X E D - U S E . C O M M E R C I A L .

LIST ED & SOLD 2021

3 Units in Ashbury Heights

4 Units in the Outer Sunset

3 Units in Cole Valley

4 Units in NOPA

3 Units in NOPA

$2,428,000

$1,800,000

$2,500,000

$1,219,000

$2,200,000

$2,025,000

December 2021

December 2021

December 2021

December 2021

November 2021

November 2021

6 Units in Haight-Ashbury

2 Units in Corona Heights

2 Units in the Sunset

16 Units in Eureka Valley

6 Units in Lower Haight

3 Units in Dolores Heights

$2,350,000

$1,928,000

$1,650,000

$5,850,000

$4,700,000

$2,200,000

November 2021

October 2021

October 2021

September 2021

September 2021

August 2021

10 Units in the Inner Richmond

2 Units in Mission Dolores

3 Units in the Lower Haight

2 Units in Eureka Valley

4 Units in Mission Dolores

6 Units in the Inner Richmond

$2,550,000

$1,530,000

$2,255,000

$3,080,000

$3,670,000

$1,850,000

June 2021

June 2021

June 2021

4 Units in Bernal Heights

July 2021

August 2021

July 2021

2 Units in Glen Park

2 Units in Lower Pac Heights

2 Units in Anza Vista

2 Units in Cole Valley

3 Units in Eureka Valley

6 Units in NOPA

$1,020,000

$1,559,501

$1,875,000

$2,500,000

$2,230,000

$2,009,250

June 2021

June 2021

April 2021

April 2021

April 2021

March 2021

6 Units in Cow Hollow

2 Units in Clarendon Heights

3 Units in the Castro

12 Units in the Tenderloin

3 Units in Eureka Valley

2 Units in the Upper Haight

$3,175,000

$1,645,000

$1,600,000

$1,650,000

$1,875,000

$1,905,000

March 2021

February 2021

February 2021

February 2021

January 2021

January 2021

Considering Selling a Multi-Unit Property?

Allison specializes in the sale of multi-unit, mixed-use and commercial properties in San Francisco. With over 20 years of experience in selling investment properties, she can help maximize the value of your property.

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

MAGAZINE | FEBRUARY 2022

9

increase is 2.3%. This amount is based

increases to $500 per linear foot, and it

on 60% of the increase in the Consumer

increases again the third year to $1,000 per

Price Index for all urban consumers in

linear square foot.

the Bay Area. To calculate the allowable rent increase, multiply the tenant’s base

The owner is responsible for paying the

rent by .023.

tax if the space is unleased. If the space is leased, the lessee is responsible for paying

Annual increases must be calculated only

the tax. Filing and payment of this vacancy

on the tenant’s base rent, which does not

tax will begin in 2023.

include capital improvement passthroughs or bond measure passthroughs. Rent

For more information and additional ex-

increases cannot be “rounded up” to the

emptions, visit sftreasurer.org.

nearest dollar.

For more information, visit the San Fran-

Property Tax Informal Review Deadline

cisco Rent Board website at sfrb.org or call

If you believe your property’s assessed

415-252-4600. For a history of all allowable

value is higher than the market value,

increases and their effective periods, turn

you may request an Informal Assessment

to page 55.

Review between the dates of January 2,

Potential Sprinker Legislation

2022 — March 31, 2022. This only applies to single family dwellings, residential condo-

Supervisor Aaron Peskin has introduced

miniums, townhouses, live-work lofts, and

legislation amending the existing fire code

cooperative units.

that would require sprinkler systems in existing high-rise buildings.

Online submissions are preferable at sfassessor.org. Alternatively, you may send

SFAA will keep members updated of this

your request to the following address:

new potential ordinance as it progresses.

San Francisco Assessor-Recorder’s Office,

Retail Vacancy Tax

Attn: Informal Review, 1 Dr. Carlton B. Goodlett Place, City Hall, Room 190, San

As of January 1, 2022, certain vacant com-

Francisco, CA 94102. Fax: 415-544-7915 or

mercial spaces will face San Francisco’s

email InformalReviewRP@sfgov.org. Be

new retail vacancy tax. The tax was ap-

sure to keep a copy for your records.

proved by San Francisco voters (68%) on March 3, 2020—about two weeks before the

SFAA Updates

citywide COVID-19 shutdown—and was

SFAA office reopening status: As SFAA

delayed one year as the City’s businesses

pivots to provide you services during the

grappled through the pandemic.

pandemic, there is a new way to connect with SFAA. Email MemberQuestions@sfaa.

A commercial space is considered “va-

org to have your questions and concerns

cant” if it’s unoccupied, uninhabited, or

promptly addressed. While the SFAA of-

unused for more than 182 days in a calen-

fice remains closed to the public, SFAA

dar year. Exceptions include days that are

staff is working round-the-clock to keep

during periods of building permit appli-

the nonprofit running. Timely payment of

cations, construction, and disaster. Some

membership dues is necessary to help the

neighborhoods are exempt from the tax

association help you.

as well, like the Financial District and Union Square, which have been strug-

SFAA Classes: Classes are available

gling without traffic from pre-COVID-19

online. SFAA is happy to announce that

tourism and office workers.

current CCRM students can continue their education right from home. We under-

The tax rates are as follows: For the first

stand keeping up with education is crucial

calendar year, the tax rate is $250 per

and want to assist our members to stay up

linear foot of the commercial space that is

to date. See the calendar on page 54 for a

streetfront; for the second year, this rate

full list of classes.

10

FEBRUARY 2022 | SF APARTMENT MAGAZINE

SPECIAL THANKS TO THE SFAA VOLUNTEER ATTORNEY PANEL SFFA would like to extend sincere gratitude to our volunteer attorney panel. It is because of their time and expertise that the San Francisco Apartment Association’s Residential Tenancy Agreement is the most reliable and effective tool for San Francisco rental property owners.

Special thanks go to Curtis F. Dowling, Dowling & Marquez, LLP; Clifford Fried, Fried & Williams, LLP; Justin A. Goodman, Zacks, Freedman & Patterson, PC; Ashley Klein, Kaufman Dolowich & Voluck, LLP; Denise A. Leadbetter, The Offices of Denise A. Leadbetter; Bart Murphy, Rent Board Commissioner; Andrew Wiegel, Wiegel Law Group; Dave Wasserman, Wasserman San Francisco; and to the Committee Chair, Eric Andresen.

LEASE ACCESS

For a fee, SFAA members can access, email, and print the SFAA Residential Tenancy Agreement online. Visit sfaa. org and click “Resources.”

For assistance, contact Vanessa Khaleel at vanessa@sfaa.org.

LEASE REVIEW WEBINAR This webinar will go over changes in this year’s lease in more detail.

Instructors: Dave Wasserman of Wasserman San Francisco, and Eric Andresen of West Coast Property Maintenance & Management Date: Friday, February 4 Time: 10:00am – 11:00am Cost: $65 members $95 non-members

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

For more information, please contact Stephanie Alonzo at 415-255-2288 x.113 or stephanie@sfaa.org

Adam Filly Exceeding Expectations New Listing

Apartments | Mixed-Use | Commercial

Available

5 Piedmont Street | 4 Units $1,700,000 | Ashbury Heights

Available

Available

211-219 Sanchez Street | 6 Units $3,250,000 | Dolores Heights

1692 Haight Street | 9 Units $4,950,000 | Haight Ashbury

Available

60-62 Sycamore Street | 8 Units $3,995,000 | Mission

Available

1855 10th Avenue | 18 Units $9,495,000 | Inner Sunset

565 Ellis Street | 17 Units $3,250,000 | Tenderloin

Now more than ever you need an expert on your side. If you are considering buying or selling an investment property, then call Adam to discuss your goals.

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

SF APARTMENT MAGAZINE | FEBRUARY 2022

11

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FEBRUARY 2022 | SF APARTMENT MAGAZINE

DAN McGUE

S A N F R A N C I S C O ’ S L E A D I N G A PA R T M E N T B R O K E R OVER $2.8 BILLION IN TOTAL SALES!

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Lic# 00656579 415.310.5787 | dan@danmcgue.com | www.danmcgue.com © 2019 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 FEBRUARY Equal Opportunity Act. Each Office is Independently Owned and Operated. Coldwell Banker Commercial and the Coldwell Banker Commercial LogoSF areAPARTMENT registered serviceMAGAZINE marks owned by| Coldwell Banker Real 2022 Estate LLC, dba Coldwell Banker Commercial Affiliates. Each sales representative and broker is responsible for complying with any consumer disclosure laws or regulations.

13

COLUMN

COURT TALK

Serves You Right w r i t t e n b y C L I F F OR D E . F R I E D

When rent goes unpaid, should subtenants and others in possession be served with a notice to pay rent or quit?

would have created an instant tenancy

Adair Lara v. Peter Menchini, San Francisco Appellate Division, September 3, 2021

when he or she continues in possession,

that there was no privity of contract be-

in person or by subtenant, after the de-

tween the subtenants and the landlord.

fault in payment of rent and three days’

Because the master tenant’s lease was

In California, a landlord must serve a no-

notice requiring its payment has been

forfeited, the subtenants had no right to

tice to pay rent or quit on a tenant before

served upon the tenant, and if there is

possession. Judgment was entered for

going to court to evict. The purpose of

a subtenant in actual possession of the

the landlord.

this requirement is to give the tenant a

premises, also upon the subtenant. No

chance to pay the rent and avoid a forfei-

wonder there was a debate over whom

On appeal, the subtenants argued that

ture of the lease and an eviction.

to serve. This code section was written

the unlawful detainer judgment must

by lawyers for lawyers to argue about!

be reversed because the three-day

with the subtenants at the master tenant’s old, low rent.

The eviction case went to trial and the trial judge ruled in the landlord’s favor, finding that the master tenant failed to pay the rent or vacate the property, and

notice to pay rent or quit was defec-

Many tenancies involve subtenants who are in possession of the premises. Some-

To further complicate the debate, San

tive insofar as it did not allow them, as

times the subtenants are known to the

Francisco’s Rent Ordinance (as well as

subtenants, to pay the tenant’s rent and

landlord. Other times, the landlord has

the laws of other cities) define “ten-

cure his default.

no idea of who uses and occupies the

ant” to include subtenants. Ostensibly,

premises. It could be the original tenants

this would mean that all San Francisco

The Court of Appeal reasoned that a

named in the original lease, or it could

subtenants must be served with nonpay-

subtenant’s rights are dependent upon

be other people, including subtenants.

ment of rent notices.

and subject to the master tenant’s rights.

Rights under the sublease stand or fall

There has always been a debate as to

In the San Francisco case of Adair Lara v.

with those of the master tenant. The

whether landlords must serve subten-

Peter Menchini, the Appellate Division

rights of a subtenant are terminated, and

ants and others in possession with a no-

of the San Francisco Superior Court may

the landlord is entitled to possession,

tice to pay rent or quit. Tenant advocates

have resolved the debate so that regular

when the master lease is terminated be-

argue that subtenants should have the

landlords and their eviction attorneys

cause of the tenant’s default in the per-

right to cure any default in the payment

will know whether to serve subtenants

formance of his or her obligations. If the

of rent that is not being paid by the mas-

with notices.

original tenant has incurred a forfeiture of his lease, the landlord is entitled to

ter tenant. Landlords argue that subten-

14

the possession as against the subtenant.

ants don’t have an agreement with the

Landlord Lara did serve a three-day no-

landlord, so why should they be given

tice to pay rent or quit on all subtenants

an opportunity to cure the breach?

as well as the master tenant. However,

The subtenant presented old case law

she refused to accept any rent payments

where the court said that a subtenant

Code of Civ. Proc. Sec. 1164(2) says that

from the subtenants, either before or

must be given an opportunity to cure

a tenant is guilty of unlawful detainer

after service of the notice, because that

by paying the tenant’s rent. However,

FEBRUARY 2022 | SF APARTMENT MAGAZINE

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This is the Story of our Recent Sale at 1545 Filbert.

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Contact me for a complimentary valuation on your building — whether buying, selling, or executing a 1031 Exchange, I can advise you on strategy.

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15

©2022 Corcoran Global Living. All rights reserved. Each franchise is independently owned and operated. Corcoran Global Living fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. SF APARTMENT MAGAZINE | FEBRUARY 2022 This is not intended as a solicitation if you’re working with another broker. Information is deemed reliable, but is not guaranteed.

the Court of Appeal pointed out that these

trustee is not a natural person as required

the case was dismissed. The ruling was

were cases where the subtenants had previ-

by the San Francisco Rent Ordinance.

reversed on appeal.

Court also acknowledged that accepting

Whether a trustee can do an owner move-

The Court of Appeal ruled that, as a matter

rent from the subtenant would have created

in eviction under a just cause ordinance

of law, only trustees—not trusts—can hold

a new tenancy at the old rent.

is another area of intense debate between

legal title to property. It went on to hold

ously paid rent directly to the landlord. The

landlord and tenant attorneys. Most just

that natural persons who are acting as trust-

The subtenant argued on appeal that she

cause for eviction ordinances permit a

ees of a revocable living trust and are also

was a legal occupant protected by the Rent

landlord to evict a tenant for a landlord or

the trust’s settlors and beneficiaries qualify

Ordinance. To this the Court responded

landlord’s close relative to use and occupy

as a “landlord” under the family move-in

that even if she was a lawful occupant,

the premises as their principal residence.

provision of the eviction law.

there is nothing in the Rent Ordinance that

However, these ordinances require that the

requires the landlord to accept rent.

landlord be a natural person.

On appeal, the tenants admitted that the trustees were natural persons, but con-

The Court concluded by citing Mosser

tended that natural persons acting as

v. San Francisco Rent Board. It said that

trustee are not natural persons. The Court

a rent-controlled apartment cannot be passed on freely from friend to friend or generation to generation. Only those occupants who reside in the apartment at the start of the tenancy and do so with the landlord’s express or implicit consent are protected from unregulated rent increases.

Those who subsequently move into the apartment are not protected unless the landlord consents to the occupancy and accepts rent from the new occupant, thus creating a new tenancy.

This decision is only binding in San Francisco eviction cases. It is merely persuasive authority in other cities, and it remains to be seen if the holding will be followed by other courts in counties outside of San Francisco.

The three takeaways for landlords and

Tenant attorneys argue that a trust is not a natural person and so the eviction is faulty. Landlord attorneys argue that the landlord is the trustee and not the trust, and that the trustee is a natural person.

eviction attorneys from this decision are (1) serve all tenants and subtenants with the notice to pay rent or quit; (2) don’t take rent

Tenant attorneys argue that a trust is not a

from subtenants unless you intend to waive

natural person and so the eviction is faulty.

your rights to raise rent and evict; and (3) if

Landlord attorneys argue that the landlord

you can get a judge to decide your case, and

is the trustee and not the trust, and that

not a jury, you stand a chance of winning

the trustee is a natural person. To avoid

your eviction case!

the argument, many landlords simply remove the property from the trust until

Rimma Boshernitsan v. Belvin Bach, Court of Appeal, March 12, 2021

the owner or relative move-in eviction is

There are times when judges make wrong

back into the trust.

rejected the argument by using basic statutory interpretation.

The tenants argued that the trustee can only take representative actions on behalf of a trust. In making this point, the tenants likened trusts to corporations, which also can only act through human representatives. But unlike trusts, corporations can hold title to property.

The Court of Appeal cited case law that recognizes the distinctive status of a trustee, such as the landlord in this case, who is both settlor and beneficiary of a revocable living trust. Such a trustee represents his or her own interests, not someone else’s. The holding in this case is expressly limited to the situation in which a landlord is settlor, trustee, and beneficiary of a revocable living trust.

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

Be On Your A Game.

completed. Afterward, the property is put

decisions in cases. Hopefully those bad decisions are reversed on appeal. Such was

In the Boshernitsan case, the trial court

the case in Rimma Boshernitsan v. Belvin

correctly ruled that a trust is not a natural

Bach, where the trial judge ruled that a

person, but made the mistake of believing

trustee of a revocable living trust cannot

that the trust was the landlord. Judgment

do a relative move-in eviction because the

was entered in favor of the tenant and

16

FEBRUARY 2022 | SF APARTMENT MAGAZINE

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17

COLUMN

PLANNING AHEAD

Abode à la Mode w r i t t e n b y M . B R E T T GL A D S T O N E

A close look at California’s new SB 9 ordinance compared to the State’s ADU laws.

I

rented in the last three years. The parcel must not be adjacent to another parcel previously subdivided pursuant to SB 9 by the same owner or a person acting in concert with the owner.

n response to California’s hous-

two lots and be developed with two

Currently, many lot splits in San Fran-

ing crisis, the State has introduced

non-ADU units per lot. Development

cisco are impeded by the requirement

numerous bills to incentivize and

under either or both parts of SB 9 will

that (with some corner building excep-

legalize new housing. First, the

be exempt from the California Environ-

tions) all new lots be 2,500 square feet

State enacted statewide rules allow-

mental Quality Act (CEQA), a law which

or more. Only difficult-to-obtain vari-

ing Accessory Dwelling Units (ADUs)

is often used by opponents for appeals.

ances will allow smaller lots. Under

in much greater numbers than before.

When splitting lots that already have

SB 9, a lot only need be 1,200 square

Then on September 16, 2021, the Gover-

existing single-family homes and ADUs,

feet (although lot splits must create

nor signed into law legislation referred

as explained below, there may be op-

two parcels of approximately the same

to as “Senate Bill 9,” which allows sec-

portunities to create as many as six to

area, at most a 60/40 split). For lot

ond units (and lot splits combined with

eight units under SB 9 (some of which

splits under SB 9, a property owner

second units) for most parcels in single-

will be ADUs).

must sign an affidavit stating that he or she “intends” to occupy one of the

family zoning neighborhoods throughA major feature of SB 9 is that the new

housing units as a principal residence

units (and lot splits) become “ministe-

for a minimum of three years. No

In San Francisco, single-family zon-

rial” approvals—meaning that no public

parcel can be split if the owner of the

ing lots are found mostly in the City’s

hearings are required—and that the

parcel has previously subdivided an

western and southern areas. The City

public will not be given a chance to re-

adjacent parcel using SB 9, and a lot

estimates that as a result of SB 9, there

quest a hearing through the process of

cannot be split again and again. The

may be more than 25,000 lots newly eli-

“discretionary review.” Moreover, with a

rental of any SB 9 unit cannot be for

gible for lot splits combined with new

ministerial approval, the reasons for an

less than 30 days.

units. However, most observers believe

agency to disapprove applications are

that SB 9 will mostly be used to create

greatly limited; cities can only do so if

Under SB 9, a city can only impose

two units without a lot split, due to the

they demonstrate specific adverse im-

objective standards on development,

greater simplicity of creating a second

pacts on health or safety or the physical

which prevents “neighborhood charac-

dwelling unit (without ADU status)

environment. These are often difficult

ter” as being a reason to change the de-

where not currently allowed. The legis-

to show.

sign of units. A city cannot impose even

out the State.

objective standards if they would physi-

lation goes into effect January 1, 2022.

18

affordable, rent-controlled units, or units

Not all proposed projects within a

cally preclude the construction of up to

This article compares ADU units and

single-family home zoning will qualify

two units, or would physically preclude

units created under SB 9 and analyses

under SB 9. The parcel must not be in

either of the two units from being at

what implementation may look like in

an historic district, and lots must not

least 800 square feet in floor area. There

San Francisco. As mentioned above,

contain an existing building which is a

is one exception: the city may require a

one part of SB 9 allows two dwelling

local landmark or a “historic resource.”

four-foot setback from the side and rear

units as of right, whether or not there is

The existing building(s) on the lot must

lots lines, even if that would cause a new

a lot split as well. The other part of SB 9

not have been subject to the Ellis Act in

unit to be less than 800 square feet.

allows a majority of existing single-fam-

the last 15 years; and the project must

ily zoned parcels to be subdivided into

not require demolition or alterations of

FEBRUARY 2022 | SF APARTMENT MAGAZINE

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19

After years of geotechnical work and planning for climate-related threats, Yerba Buena and Treasure Islands are undergoing a major transformation.

Island of Dreams

20

FEBRUARY 2022 | SF APARTMENT MAGAZINE

Wr i t t e n b y DE V I N S M I T H Photos these pages c o u r t e s y o f JAC K N AG S

SF APARTMENT MAGAZINE | FEBRUARY 2022

21

S

UNLIGHT SLICED THROUGH THE EXOSKELETON OF THE TRANSIT CENTER as we loaded our bikes

onto the 25 bus one bright

morning in late November. We rumbled over the bridge, and in about ten minutes, we were on Treasure Island.

The view! A parade of superlatives doesn’t do it justice: Both bridges are in full view, as the downtown skyline splays before you like Burt Reynolds on a bearskin rug.

We’d come to explore Yerba Buena Island [YBI] and Treasure Island [TI], which are physically connected, but distinct in environmental character and future development trajectories. Over the next two decades, no other part of San Francisco will undergo such a radical transformation. The plan calls for as many as 8,000 units across the two islands: Picture Mission Bay, but with another 1,600 units stacked on top.

After years of geotechnical work—more on that later—the first two new buildings, YBI’s Bristol condos and TI’s Maceo May apartments, topped out just a few months ago.

By the time this article goes to print, ferries will be cruising hourly to-and-from TI’s new terminal. Ever since the Navy began its transfer of the islands back to the City in ’97, planners and residents have dreamed of what might be possible here. But as the

22

FEBRUARY 2022 | SF APARTMENT MAGAZINE

Yerba Buena Island is part of the Franciscan Formation: A rock shelf extending all the way out to the Farallon Islands, which was carved by glaciers into the shape of the Bay Area we know and love today.

Top Left to Right : 1) Enjoying a Mersea Restaurant cocktail. 2 ) Taking in beautiful SF & Bay Views from Mersea Restaurant (Top), and Yerba Buena Island (Bottom) 4) Writer Devin Smith posing with a cluster of dog heads, a symbol of a defunct diner chain, which are mounted on a trailer on I Street on Treasure Island. 5) Mersea Restaurant’s fish & chips.

Bottom Left to Right: 1) Graffiti on Yerba Buena Island.

2) Lori Lambertson, an educator at the Exploratorium, talking about King Tides and the rising sea levels at Pier 3 (as discussed on page 27).

Photography by Devin Smith

SF APARTMENT MAGAZINE | FEBRUARY 2022

23

quickening effects of climate change descend upon the world, our

In the following decades, the Navy retained the station as a training

dreams must now share space with hard realities.

grounds, and in the 80s, began renting its unused hangars as film soundstages. The film version of “Rent” was shot here, as was “The

Yerba Buena Island is part of the Franciscan Formation: A rock

Matrix’s” iconic “bullet time” sequence.

shelf extending all the way out to the Farallon Islands, which was carved by glaciers into the shape of the Bay Area we know and

In 1997, the Navy decommissioned its station—the Coast Guard

love today. Archeologists place the Ohlone Huchiun people on the

station on YBI remains active—and TI’s transfer back to the City

island by around 1400 BCE. During the Gold Rush, YBI served as

began. The Navy was still on the hook for environmental cleanup,

a pastureland for goats. It remains a stopover point for migrating

which lasted into the 2010s. And in the meantime, new dreams for

birds and butterflies—including the elusive, “civilization-averse” Ru-

Treasure Island began spinning once more.

ral Skipper, recorded on the island for the first time only in 2009.

So here’s the setup: The governmental body in charge of the isA group of sandy shoals once projected out from YBI’s western

lands is the Treasure Island Development Authority [TIDA], which

edge, and in 1868, the ambitious minds of the Terminal Central Pa-

is overseen by a board of seven mayor-appointed directors, some

cific Railway Co. began to whir. They petitioned Congress to fill the

of whom require approval from the Supervisors. The Supervisor of

shoals for the construction of a new headquarters and a massive

District 6, where the islands are located, sits on the board as a non-

railyard—a proposal that was rejected, but not forgotten.

In the meantime, the U.S. Lighthouse Service, a precursor to the Coast Guard, built a lighthouse and set up a supply and service depot on the East side of YBI. The Navy, having first garrisoned troops on the island during the Civil War, began using the island as a training ground during WWI, and built dozens of new struc-

Over the next two decades, no other part of San Francisco will undergo such a radical transformation. The plan calls for as many as 8,000 units across the two islands: Picture Mission Bay with another 1,600 units stacked on top.

voting member. TIDA oversees a sprawling network of developers, contractors, community organizations, and regional groups.

Initial designs for TI were unambitious: Some 2,800 units of low-density housing and a few luxury hotels.

But feedback from environmental and urbanist groups changed the conversation.

Citing the dovetailed virtues of higher density and lower

tures. Navy engineers once again considered filling the shoals to

car reliance, the plans which eventually hit the Supervisors’ desks

build a shipyard—but decided to use Hunter’s Point instead.

took cues from a set of six radical ecotopian designs presented by UC Berkeley’s College of Environmental Design. Following San

But 1931 is when we really hit the ground running. The City was

Francisco’s trademark bureaucratic delays and political pageantry

putting the final touches on the plans for its two iconic bridges,

over tower heights, the final master plan was approved in 2011.

with the Bay Bridge calling for the then-largest-ever tunnel to be drilled straight through YBI. In anticipation of hosting an exposi-

The 2011 plan is covered in great detail on the website (sftreasu-

tion to celebrate the bridges’ openings, the construction of Trea-

reisland.org). Brieftly, of the 8,000 new units, 200 will be on YBI—

sure Island was finally approved.

hardcore luxury housing. The developments on TI will cover the south of the island, bordering the Job Corps, which will remain

Between 1936 and 1938, the Army Corps of Engineers built the

in place. The road system is designed for multimodality, and it’s

island by sinking a rocky seawall around the shoals, infilling the

angled to buffer the island’s blustery afternoon winds. The north-

area with mud dredged from the Bay, and topping it with six feet of

ern side of the island, where the neighborhood currently sits, will

rich topsoil from the San Joaquin valley. Grand halls, towers, and

be cleared and converted into parks, a wetlands, and agricultural

promenades were raised just in time to host the 1939 Golden Gate

space. The tallest tower on the island will be a little shorter than the

Exposition, the “Pageant of the Pacific.”

Bay Bridge; the other five high-rises a few hundred feet lower. A mid-rise building will anchor each of the dozen-or-so blocks.

Simultaneously, the Expo’s guests were treated to the novelty of the United States’ first intercontinental airliner, the China Clipper, a

On the development side, the project’s Master Developer is Trea-

massive “flying boat” which departed from Clipper Cove, the notch

sure Island Community Development LLC (TICD), a partnership

between TI and YBI. But as the dreams of a connected Pacific col-

between Stockbridge Capital Group, Wilson Meany, and Len-

lapsed into the reality of the embattled Pacific, the island morphed

nar Corporation, who will be building most of the market-rate

into a massive Navy installation. Thousands of soldiers moved

housing. The affordable housing—more than is legally required,

through the island daily during WWII.

about 27% or 2,173 units—will be developed by a slate of local

24

FEBRUARY 2022 | SF APARTMENT MAGAZINE

Nimitz House (1899), a Classic Revival on Yerba Buena Island, where Admiral Chester Nimitz—Commander of the U.S. Pacific Fleet during WWII—lived out his final days from 1946-1966.

Photography by Devin Smith

SF APARTMENT MAGAZINE | FEBRUARY 2022

25

Top: An aerial view of Treasure island.

Bottom: Various shots taken by writer Devin Smith as he toured the island doing research for this article.

26

FEBRUARY 2022 | SF APARTMENT MAGAZINE

groups, including Swords to Plowshares, the Chinatown Community Development Corporation, and One Treasure Island—the nonprofit which runs TI’s current supportive housing.

Right now, TI’s housing is exclusively rental housing, and consists of market rate units (The Villages) and supportive housing units (One Treasure Island). Of the 3,000 people currently living on the island, 49% are below the poverty line, and 22% are Black—quadruple San Francisco’s average.

Provisions have been put in place to rehouse current residents, as there is sensitivity to the racial and economic displacement that occurred in San Francisco in the midtwentieth century.

Residents renting market-rate units and who were on the island prior to 2011 are being offered either relocation to the new developments at their current rental price, or a buyout. (“$6,286 per adult tenant, and an additional $4,191 for each elderly, disabled or minor tenant,” according to the Examiner.) In 2019, TIDA amended the rules to allow market rate residents who’ve subsequently moved to the island and meet certain low-income thresholds to be placed in lotteries for the new affordable housing.

All current affordable housing residents (regardless of when they moved to the island) are eligible for relocation to the new affordable developments at their current rental price, but are not offered buyouts.

But after TI’s new developments are fin-

The Army Corps of Engineers is presently undertaking a massive study to determine how much federal funding and infrastructure work should be allocated to San Francisco’s waterfront. While this study is still a few years from completion, it will determine how much federal help—if any—Treasure Island will receive.

ished, if the current residents elect to join the newcomers, they may find themselves facing an entirely new set of problems.

King Tides “Things are getting exciting!” exclaimed Lori Lambertson as the waves slopped over the sidewalk on Pier 3, causing the small crowd to scamper backward. Lambertson, an educator with the Exploratorium, was here with Matt Wilkins from San Francisco’s Waterfront Resilience program to talk about King Tides and the rising sea levels.

King Tides—Lambertson suggests “Royal Tides” as a gender-neutral SF APARTMENT MAGAZINE | FEBRUARY 2022

27

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29

alternative—occur every December and January, as a result of the

flooding (shifting ground leading to cracked or crooked slabs,

Earth’s close proximity to the sun and moon, coupled with the

for example) began to devalue the properties.

standard bimonthly high tide. King Tides can rise three feet above a normal high tide, so they’re useful for studying the vulnerabili-

As the property values came down, upwardly-mobile Black families

ties of coastal infrastructure as we look toward a future where

could afford to buy houses in the area — triggering a classic mid-

sea levels could rise three-and-half to seven feet by the year 2100.

century white flight. But instead of a stable investment, the houses

(The current adaptation strategies being implemented, Wilkins

became a liability, as the long-tail effects of building in the flood-

says, often use a five-foot rise as a workable average.)

prone area continued to devalue the properties. In the end, these financially trapped Black residents were the ones hit the hardest

The Waterfront Resilience program was birthed from the pas-

when Katrina over-topped the new levees and leveled the area.

sage of 2018’s Prop A, a $425 million bond measure aimed primarily at repairing the aging seawall. According to Wilkins, the

Henderson is concerned that a similar dynamic could play out

studies they’ve undertaken suggest $5 billion may be required

on Treasure Island if the investment required to address sea level

to implement adequate adaptation strategies and earthquake

rise and subsidence render the area unprofitable for developers.

retrofitting for the Embarcadero. When I asked if the Waterfront

He sees the project as a classic sunk cost fallacy: “The government

Resilience program covers IT, Wilkins replied that it does not.

The Army Corps of Engineers is presently undertaking a massive study to determine how much federal funding and infrastructure work should be allocated to San Francisco’s waterfront. While this study is still a few years from completion, it will determine how much federal help—if

A suite of improvements—storm drains, levees, floodwalls, etc.—are all on the table for consideration once tides reach certain heights. This way, the developers can respond, armed with the latest climate forecasts, which tend to get outdated quickly.

should be saying, ‘let’s not do this,’ but it’s not. It’s like, ‘we need the housing, we need the income... we’ve already invested so much into it so we’re locked in.’ There’s going to be places like this in the next decade that are going to be devalued by nature... If we were mitigating climate change, or if we had been for the last 20 years, I might be a little less skeptical about Treasure Island.”

any—Treasure Island will receive, should the rate or severity of cli-

So what’s being done to prepare for the future?

mate change effects prove greater than predicted—as has generally

On the land side, the overall strategy is to compress the soil, then

been the case.

raise the elevation of the island. First, vertical wicks (essentially tall pipes) are installed in the ground, which facilitates water ex-

Gee, I found myself wondering, Is it really such a hot idea to build

traction and evaporation. Then, huge vibrating mechanisms are

thousands of housing units on an island only ten feet above sea

slammed into the ground, which consolidates the deep material

level, built from slowly compacting, liquefaction-susceptible infill?

from the underlying sandbar, and helps prevent liquefaction during earthquakes. The final step is to “surcharge” the site, piling 20 to 25

Obviously, TIDA’s planners have been working on this problem

feet of dirt on the surface. This simulates the dead weight of future

for decades. But to understand the risks involved with develop-

construction and compacts the infill, which minimizes long-term

ing in precarious areas, I got in touch with Jason Henderson, a

settlement issues (à la the Millennium Tower). This work has been

professor of Geography and Environment at San Francisco State

ongoing for several years; you can see the dirt piles and yellow

University. “Back in 2004, 2005, I was really excited about [Trea-

vibrating machines poking up from behind construction fences on

sure Island] as a car-free development…” said Henderson, “but

the east side of the island.

at that point, 2009 was the furthest out the towers were going to be built.” His enthusiasm cooled once he saw the compromises

Once this process is finished, three feet of the surcharging dirt

in the finished plan. But his concerns extend beyond the physi-

is left on-site, which becomes the new ground level for the de-

cal threat of rising sea levels: “Have you heard of New Orleans

velopments. TI’s towers will be anchored with drilled case piles,

East?” he asked.

the same technique used for the Bay Bridge’s eastern span.

Before the 1950s, New Orleans East was a massive wetland

But the shoreline adaptations are where the plans get really inter-

adjacent to the city proper; its marshy ground is similar to TI’s

esting. Since its inception, TIDA has worked hand-in-hand with the

infill. Expecting an oil boom in the Gulf, real estate developers

SF Bay Conservation and Development Commission (BCDC) and

built an upscale city for some 250,000 residents in the area. But

the California Tidelines Trust, two ecology-focused entities that

when Hurricane Betsy in hit ’67, the structural damage caused by

have regulatory authority over the Bay’s shoreline areas.

30

FEBRUARY 2022 | SF APARTMENT MAGAZINE

Island of Dreams… continued on page 62

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Passthrough the Buck Recoup the costs of making capital improvements to your building through a Rent Board petition.

Wr i t t e n b y J . J . PA NZ E R

32

FEBRUARY 2022 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | FEBRUARY 2022

33

Have you made an improvement to your property in the past five

You can choose when to impose rent increases for eligible ten-

years? Maybe you painted the outside of your building, replaced

ants. If you have eligible tenants in your building whose rents are

your roof, or completed a seismic retrofit. If so, Rent Board capital

at market rate, you can delay imposing the rent increases until a

improvement petitions allow you to legally increase your tenants’

later time, even years in the future. Start by including these in the

rents to recoup some or all of the cost of these projects over time.

petition and getting it approved by the Rent Board. You can wait several years to begin collecting your petition income by simply

You can recoup between 50 and 100 percent of your investment going up to five years back through your records. For seismic projects

waiting to serve rent increases later.

mandated by the Soft Story Retrofit Ordinance, you can recoup

The DIY Approach

100% of the costs necessary to complete the project. In this article,

To submit your petition to the Rent Board, first gather all of your pa-

I’ll talk about how to prepare and submit your petition yourself, as

perwork. This includes your proposals; copies of canceled checks,

well as the advantages of using a service to prepare your docu-

including the front and the back; and a full detailed rent roll. Next,

mentation for you. It typically takes between 6 and 18 months to

download all of the Rent Board’s forms and complete them care-

prepare and submit your petition and sit for a hearing to have your

fully. You may prepare and serve all the rent increase notices after

petition certified.

you submit your petition.

First Things First

Let’s walk through the process using an example. Mrs. Smith, a

Before you even begin your project, follow these steps to ensure a

hypothetical owner of a 10-unit building, is replacing her roof.

smooth passthrough approval.

Because her building has more than five units, she gets a 50 percent passthrough for this

Keep your future petition in mind before hiring a contractor. Be clear on the scope of work, and obtain competitive bids to minimize the number of change orders.

Get at least two competitive bids for the work and make sure you keep copies of your canceled checks, including

Working with a very diverse group of individuals is our goal—we want to attract a broad representation of our community in terms of how we define leadership in San Francisco.

project. To ensure that her passthrough is approved more easily, she gets two bids, one for $55,000 and another for $50,000; she picks the lower bid. She signs the contract and delivers a check for the deposit to the contractor. She gets a copy of the cancelled check to prove that the job was

the image of the back of the check as documentation that you made the payments. Keep copies

started and that the money was paid. When the project is com-

of invoices for progress payments.

plete, she inspects the job, pays the balance, and gets a copy of that second canceled check.

Know that petitions for less than $25,000 don’t require multiple bids. However, don’t be tempted to try to break your petition into

Mrs. Smith downloads and fills out the Rent Board’s forms. In

multiple chunks of $25,000. The fees are fairly reasonable and the

this circumstance, her allowable petition amount is $25,000, half

time saved is better than having to keep track of multiple petitions.

of the overall project cost of $50,000. Remember, buildings with

You can also provide detailed time-and-materials proposals or in-

five or more units can only receive rent increases for half of the

voicing instead of multiple bids.

cost of the work completed. Buildings with four or fewer units are eligible to receive rent increases for 100 percent of the cost of

You don’t have to pick the lowest bidder, as long as you don’t pick

the work. Mrs. Smith uses cash, so she applies an imputed interest

a drastically higher bid. For example, if your general contractor

rate, specified in the Rent Board’s forms. In this example, the al-

is your brother-in-law and he’s properly licensed and insured, it’s

lowable passthrough amount is $25,000 and the imputed interest

understandable that you’d prefer to work with him. If you get a

rate is .00947. She multiplies that by 120 months to figure out the

competitive bid that’s reasonably close to the lowest bid, say within

total passthrough allowed is $28,410.

10%, you can pick the higher bid with the explanation that you preferred to work with your brother-in-law.

Mrs. Smith divides the total allowable petition amount, $28,410, by the number of units in the building to determine each unit’s

Work completed with insurance proceeds is not eligible for a peti-

share. $28,410 divided by 10 units is $2,841 per unit, applied over

tion. If you put additional money into the project, those costs can

the course of the ten-year life of the roof. Next she must determine

be passed through to the tenants, but you have to be very careful to

how many of the tenants are eligible for the petition based on their

separate your documentation so your proposals for the insurance

move-in date. Tenants are eligible for a capital improvement peti-

replacement work and the improvements, as well as the payments

tion if they have resided in the building for at least six months prior

for these items, are clearly delineated from one another.

to the commencement of construction as evidenced by the first

34

FEBRUARY 2022 | SF APARTMENT MAGAZINE

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HYPOTHETICAL PASSTHROUGH Jane Smith replaces the roof in her 10-unit building for a total cost of $50,000. Throughout the process, she keeps clear and organized documentation, including canceled checks, for a smooth petition.

Buildings with five or more units can pass through 50% of costs, so the initial passthrough amount is $25,000. After she adds the imputed interest rate number (.00947) specified by the Rent Board, the total passthrough amount is $28,410.

For a roof, the amortization period is 10 years (120 months): $2,841 divided by 120 months is $23.68 per unit per month.

through F, that will explain how well your documentation meets the Rent Board’s requirements. If you get anything but an A+ grade, we’ll give you a list of suggestions to improve your documentation.

The petition service you choose should also tell you exactly how much your rent increases should be for an accepted petition, so that you can make an informed decision about whether it makes sense to proceed with the petition or not. Then, if you decide you’d like them to prepare your petition, you can make sure the investment is worth it to you. We find that most petitions for projects less than $25,000 are too costly to prepare and don’t offer large enough rent increases for our clients to consider submitting them.

For instance, at RMC, we charge $1,500 for any capital improvement petition of under $150,000 in value, $2,500 for any capital improvement petition of over $150,000 in value, and a flat $3,000 fee for any operating and maintenance petition that covers the increase and cost for operating the building from year to year. We typically recommend that clients group smaller projects together into a single

check written to begin work. In this simplified example, let’s say all

petition of over $25,000 to get more return for the cost of preparing

of the tenants are eligible. The next step is to figure out the annual

and submitting a petition.

increase amount by dividing the unit share, $2,841, by the number of months over which the petition is to be amortized. For a roof

Consider a Turn-Key Solution

the amortization period is 10 years (120 months): $2,841 divided

To make things easier for you, consider a Turn-Key Rent Board

by 120 months is $23.68 per unit per month. Some exceptions and

Passthrough Service. This kind of service will take you from the

limitations apply. Read your Rent Board forms carefully and don’t

very beginning to the very end of the process, with a guarantee of a

hesitate to call the Rent Board for help.

successful conclusion. The process begins a detailed report providing an initial evaluation and projection of rent increases. Then the

Before proceeding down the DIY route, keep in mind that this pro-

firm you choose would also prepare the petition for you as well as

cess will probably take at least 6 to 12 months, depending on the

prepare all rent increases, serve them to your tenants, discuss the

Rent Board’s backlog of petitions. You must be highly organized to

process with the tenants as needed to ensure a smooth conclusion,

complete this process successfully. There’s no guarantee that your

and represent you at the Rent Board’s hearing with the administra-

petition will be accepted, even if you think you have properly filled

tive law judge to answer any questions about how the process went

out your forms and provided all of the necessary documentation.

from the beginning through the end. If you’d like us to go through

This process can be very confusing and stressful.

the entire process, including rent increases and representing you at

How to Outsource Petition Preparation

the Rent Board, we charge 30 percent of the first year’s revenue that you get from your successfully completed petition.

You can also have your property management firm handle your Rent Board passthrough for you. There are several benefits to

The firm you choose should offer you a 100% money-back guaran-

having your property manager handle your petitions. Primarily,

tee if they can’t deliver an approved passthrough for you after two

they will deal with all the headaches and tedium on your behalf.

attempts. Without the guarantee, you could be risking many thou-

SFAA member firms have extensive knowledge managing rent-

sands of dollars and years of time that can’t be recovered.

controlled properties in San Francisco, so they know how to work with the Rent Board to get your petition certified. Nevertheless,

If you have additional questions, you are welcome to contact us at

the firm you choose to handle your petition doesn’t have to be

info@RMCsf.com or 415-230-8888.

your property manager.

Begin the process by gathering your paperwork and sending it to your property management company. If your property management company oversaw the project for you, make sure they gathered the documentation properly and have it readily available to include in your petition. A quality firm will be happy to review the paperwork and give you their initial evaluation and a projection of how much your rent increases would be for a successfully completed petition. For example, the evaluations we produce at the Real Management Company (RMC) include a letter grade, A

36

FEBRUARY 2022 | SF APARTMENT MAGAZINE

J.J. Panzer is the president of the Real Management Company. He can be reached at 415-821-3167 or at jj@rmcsf.com.

Adding or legalizing a unit?

We help remove the doubt from the ADU process.

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Visit adaptdwellings.com/sfaa today for a sample Feasibility Study and ADU Guide (510) 319-9045 info@adaptdwellings.com adaptdwellings.com/sfaa An Edrington & Associates Company Member, SFAA and CAA SF APARTMENT MAGAZINE | FEBRUARY 2022

37

Rest Insured written by

C A ROL I N E RO S E N B E RG

Make sure you have adequate coverage to protect your businesses, residents, and yourself.

Your livelihood is dependent on the survival of your business, so it is imperative that you protect it against any potential threat—big or small. For instance, a fire could destroy your business’s property and the contents inside, or a burst frozen pipe could damage important documents and valuable papers. Worse, you could have trouble paying your employees during a loss because your funds are devoted to repairing damage.

If self-insuring is not an option to combat these risks of loss, it is wise to obtain insurance. This coverage comes in many forms to suit your specific needs. Before purchasing coverage, take a complete inventory of all your business property to determine how much you need to insure. This important step ensures you will have adequate coverage to continue your business in the event of a covered loss.

Types of Insurance You May Need to Protect Yourself and Your Business Here are some examples of property that’s commonly insured: • Buildings and other structures (leased or owned) • Furniture, equipment, and supplies • Records of accounts receivable • Machinery/boiler • Electronic data processing equipment (computers, etc.)

• Mobile property (construction equipment, etc.)

• Property in transit • Cargo • Satellite dishes

38

FEBRUARY 2022 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | FEBRUARY 2022

39

• Signs, fences, and other outdoor property not directly attached to

Renters Insurance – Property and Liability

All types of companies would benefit

coverage for your tenants.

greatly from ELI. Because it extends coverage so dramatically at a relatively small ad-

the building • Intangible property (goodwill, trademarks, etc.)

Fire Dwelling – Property and Liability cov-

ditional cost, many choose to pay the extra

erage on four-units-or-less structures.

price. The amount of coverage needed will always depend on the total value of your

• Business contingency for suppliers • Ordinary payroll

Flood – Coverage for damage caused by

• Extra expenses as a result of loss

flood, which is not covered on a standard

assets.

package, home, or fire dwelling or commer-

Workers’ compensation coverage pays

Types of Insurance Policies

cial property policy.

benefits to workers injured on the job,

entire schedule of buildings. Covers your

Builders Risk – Coverage for property in

and permanent disability. Employers are

property and general liability.

the course of construction.

required to do the following to comply

Commercial Property Political Violence –

Earthquake – Coverage for damage

laws: (1) Provide coverage for their em-

Property Damage and time element dam-

caused by earthquake, which is not cov-

ployees ; (2) be liable for all injuries suf-

age stemming from covered cause of loss

ered on a standard package, home, or

fered by employees while they are on the

such as fire.

fire dwelling policy.

job; (3) pay premiums and provide the

Umbrella/Excess Liability – Protection

Why should you consider these coverages for your business?

(4) provide a safe environment; (5) notify

The only way to effectively protect the as-

injury; and (6) investigate injuries.

General Liability – From one building to an

including medical care, part of lost wages,

with workers’ compensation insurance

carrier with audit payroll numbers; against catastrophic losses

the carrier as soon as possible after an

Commercial Auto – Business Auto, physical

sets of your business is to carry adequate

damage, garage, motor carrier, trailers.

Commercial General Liability (CGL) insur-

Property management professional li-

ance coverage. As a safeguard against li-

ability insurance, also known as Errors

Workers’ Compensation – Employer’s

ability, CGL enables you to continue your

& Omissions (E&O) insurance, is supple-

statutory liabilities under workers com-

normal operations while dealing with

mentary liability insurance designed to

pensation laws and employees’ work-

real or fraudulent claims of negligence or

safeguard a business against a catastrophic

related injuries.

wrongdoing. CGL policies also provide

loss. Without the right type of insurance,

coverage for the cost to defend and

the cost of defending a lawsuit can be

settle claims.

financially devastating for a property man-

Professional Liability/E&O – Protection

agement company. Property managers

against liability incurred as a result of errors and omissions in performing your

Despite the name, a dwelling fire policy

often mistakenly believe their Commercial

professional service.

can protect your properties from much

General Liability (CGL) policies will pro-

more than just fire damage. The coverage is

tect them from lawsuits stemming from a

Employment Practices Liability – Liabil-

very similar to a homeowner’s policy, with

negligent act, error or omission, but a typi-

ity covering wrongful acts arising from

one significant difference—a dwelling fire

cal CGL policy only covers bodily injury,

employment process. Wrongful termina-

policy is created for a landlord that does

property damage, personal injury and

tion, discrimination, sexual harassment,

not make the property his or her primary

advertising injury claims. Property manag-

and retaliation. Third party coverage for

residence. If you need to insure a rental or

ers must instead turn to property manage-

non-employees.

investment property but not the personal

ment professional liability insurance.

property inside, a dwelling fire policy is a Cyber Liability/Privacy Liability – Liability

smart decision.

As technology becomes increasingly important for successful business opera-

coverage when communicating or conducting business online. Common liabilities

Excess Liability Insurance (ELI), more com-

tions, the value of a strong cyber liability

include internet and email. Covering your

monly known as umbrella insurance, is one

insurance policy will only continue to

responsibility to protect personally identifi-

of the most important types of insurance

grow. A traditional business liability policy

able information belonging to employees

your company can buy. Businesses choose

is extremely unlikely to protect against

or tenants (digital or hard copy records).

ELI essentially to back up the limits con-

most cyber exposures. Standard commer-

tained in their underlying liability policies

cial policies are written to insure against

Pollution Liability – Contamination of

(commercial general liability, business auto,

injury or physical loss and will do little,

an environment by substances regarded

employer liability, workers’ compensation,

if anything, to shield you from electronic

as pollutants.

and professional liability.)

damages and the associated costs they Rest Insured… continued on page 68

40

FEBRUARY 2022 | SF APARTMENT MAGAZINE

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41

COLUMN

LEGAL Q&A

Call Off the Dogs

providers were unethically pretending

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

that tenants required an ESA or, more

Be diligent but not onerous when verifying the need for emotional support animals.

Q. In a studio apartment, one cat that ruins the hardwood floors, and

commonly, never properly interview-

tenant has an emotional support cat, but now she is asking for an emotional support dog. Am I obligated to permit two emotional support animals (ESAs)? Is there a limit to the number of animals permitted in a unit?

A. The short answer is “no,” there are

whether or not an ESA was legitimately needed, a new law now imposes some additional requirements for licensed healthcare professionals. The highlights of this legislation are as follows: (i) Businesses that sell or supply a dog as an

the answer is yes, the property owner

ESA must provide written notice stating

has similar if not the same remedies as if

that the ESA is not qualified as a service

the ESA was a pet. For instance, a bark-

dog. Service dogs, unlike ESAs, provide

ing ESA dog creates the same actionable

actual functions such as guiding some-

nuisance as if it were a pet that was yap-

one who is seeing-impaired or detecting

ping, and it makes no difference with a

oncoming seizures. (ii) Healthcare pro-

security deposit or damage claim if the

fessionals prescribing ESAs must hold a

carpet is ruined by an ESA or a pet.

valid, active license stating the license’s effective date, license number, and the

no specific rules stating the maximum

And please remember that an ESA is not

type of license. Retired SFAA associate

number of ESAs a tenant may have. As

a pet. This means that clauses prohibit-

attorney Saul Ferster used to bemoan

long as the animal(s) does not violate

ing pets, restricting breeds, or limiting

a case he had where a chiropractor in

any state or local laws and the health-

weights in a rental agreement do not

New Jersey was handing out ESA diag-

care professional agrees that the ESAs

apply to an ESA, and property own-

noses for SF tenants! (iii) There must be

are there for the resident’s well-being,

ers should never charge a pet deposit,

evidence that the healthcare provider

more than one can be recommended

increase the security deposit amount,

established a client-provider relation-

and the owner will likely have to respect

or deny an applicant because of the

ship with the tenant at least thirty days

and accommodate such a decision. That

presence of an ESA. However, you are

prior to submitting the ESA recommen-

said, there are some considerations

allowed to verify that the healthcare

dation. Ideally, this requisite eliminates

and obligations on the table. For start-

professional in fact made this recom-

the sham websites where tenants may

ers, each ESA must be covered by an

mendation, and you may — and should

receive an instant ESA letter. (iv) Lastly,

ESA letter from a licensed healthcare

— disseminate concise building guide-

the professional must actually complete

professional. Secondly, ESAs and their

lines and expectations for the ESA.

a clinical evaluation of the resident

caretakers are compelled to comply with

To that end, SFAA maintains a forms

regarding the need for an ESA. This, of

the rules and regulations of the building.

package, known as the SFAA Assistive

course, is something which should have

This usually means that the animal must

Animal Packet, that contains a verifica-

always been a requirement.

properly behave in building common

tion acknowledgment for the healthcare

areas; waste shall be properly collected

professional as well building and rental

In sum, be diligent but not unreason-

and discarded; aggressive acts toward

unit guidelines. This author advises that

ably onerous when verifying the need

other animals and residents are prohib-

the packet should always be used both

for one or multiple ESAs. Always use

ited; and the resident is liable for any

when a new tenant is moving in with

the SFAA Assistive Animal Packet, and

damage or harm that the ESA inflicts

an ESA and when an existing tenant

do not automatically assume that a

onto people as well as the rental unit

brings on an ESA or, as this question

resident’s claim for multiple ESAs is

and the building itself. Indeed, if the ESA

posits, each time a new ESA is added to

nefarious. While the law permits you

seriously and continuously misbehaves,

the apartment.

as the property owner, when faced with a tenant requesting accommoda-

the tenancy itself may be in jeopardy.

42

ing or treating the tenant to ascertain

Members often ask if there is anything

Also, effective January 1, 2022, California

tion for more than one ESA, to consider

that can be done for an excessively loud

has adopted new requirements for ESAs.

“whether the cumulative impact of

ESA dog who barks constantly or an ESA

In response to complaints that service

multiple animals in the same dwelling

FEBRUARY 2022 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | FEBRUARY 2022

43

constitutes an undue burden or funda-

It is best practice to hire a professional to

mental alteration,” any decision to deny

inspect for mold or mildew. This person

the request should be substantiated with

can help determine the source of moisture,

ample evidence that either the request is

take air samples, and remedy the issue. Ad-

not supported by a legitimate and verifi-

ditionally, you may want to ask this person

able diagnosis or that having multiple ani-

to create a report to keep for your records.

mals will somehow unreasonably damage or harm the building. In other words, be

If your tenant’s actions or inactions are

prepared to embrace the request if the di-

to blame, for instance not using available

agnosis supports it and the animals do not

bathroom ventilation during showers, then

endanger the operations of the property.

you may hold your tenant responsible for costs of remediating this issue.

—Dave Wasserman

Q. A tenant emailed to say she’s

been voicing mold concerns to the property manager that have gone ignored. Other than send a technician over immediately, how can I protect myself?

A. Significant or lengthy mold exposure can have deleterious health effects and should be addressed promptly.

California Health & Safety Code § 17920.3 says when there is dampness or visible mold in a home this is a hazard to the health of occupants, and that the property

Once the source is identified, follow the advice of the professional to remedy this issue immediately. Consider providing your tenant with a stipend or rent credit to compensate your tenant for the time/ days your tenant suffered a loss from a housing service.

—Angelica Sandoval 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-Stern Law Offices and can be reached at 415-567-9600. Angelica Sandoval is a real-estate attorney with Fried, Williams, & Grice Conner LLP and can be reached at 510-625-0100.

On the List.

owner must fix the condition. This Section

Is finding a great service

excludes mold that is minor and found on

provider on your To-do List?

surfaces that accumulate moisture as part of their properly functioning and intended use. This Section also states that condition needs to be to the extent that it endangers the life, limb, health, property, safety, welfare of the public or other occupants before it is declared a substandard condition.

Once a tenant has voiced their concerns, the first step is to inspect the tenant’s rental unit to look for signs of water damage or moisture. Water can enter a home through roofing problems, plumbing leaks, or air gaps around the windows and doors.

Since your tenant feels their concerns have been dismissed by the property manager, you may want to reach out to your tenant, ask them about their mold concerns, and provide some dates and times that this inspection could occur. Before entering the rental unit, you will need to provide 24hour written notice to your tenant.

44

FEBRUARY 2022 | SF APARTMENT MAGAZINE

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45

Planning Ahead… continued from page 18

the ADU and JADU existed prior to the lot split). Again, San Francisco is to issue

A new unit classified as an ADU cannot be

local implementation rules in January of

sold as a stand-alone unit (i.e., as a condo-

2022, and these could limit ADU units

minium). However, duplex units approved

built in conjunction with new duplexes,

under SB 9 could be sold as condominiums.

combined with lot splits.

Possible Scenarios

Since SB 9 projects will be processed min-

A lot can be developed in a way that cre-

isterially (as defined above), conditional

• New units can connect to existing utility and sewer lines.

Advantages to creating SB 9 units compared to new ADUs • Units can be sold as condominiums and not just as tenancy-in-common

ates between four and eight units, under

use authorization by the Planning Commis-

two scenarios.

sion under Planning Code Section 317 will

units.

• Units are not subject to rent control (sometimes true of ADUs).

not be required, and there may not even be

Scenario 1—Parcel development that does not undertake a lot split:

neighborhood notice of demolition under Section 311.

• Unit sizes cannot be limited to 800 square feet or 1,200 square feet as ADUs can.

Unless San Francisco enacts regulations to the contrary, an owner might be able to

Unlike with ADUs, SB 9 does not require

add one dwelling to a single-family home

minimum or maximum unit sizes, nor

and then add an ADU for a total of three

does it require unit-size parity (which is

units. Or an owner may be able to demolish

sometimes required by our Planning Code

an existing home, build a duplex and then

today). In the case of an SB 9 lot split that

The State has allowed localities discretion

add an ADU. This type of project does not

results in a landlocked rear lot, physical

in implementation of a few of the SB 9

require owner occupancy (unlike projects

access to a rear lot can be granted with

provisions stated above. As a result, some

also pursuing lot splits). Neither unit would

an easement through the front lot. Utility

of the potential development scenarios

be subject to rent control, and the units

connections (sewer and water) to a rear lot

analyzed above may be more challenging

could be sold as condominiums.

must connect to the street and cannot con-

once such regulations are issued. On Janu-

nect to the utilities on the front lot, and as

Scenario 2—Parcel development that uses the portion of SB 9 that allows a lot split together with the portion that allows a second dwelling unit:

ary 1 of this year, the City of San Francisco

result a utility easement may be necessary

issued guidelines for the use of SB 9 and

through the front lot.

has provided applications for submittal.

Because SB 9 projects must be processed

guidelines is the statement that the City will

In this scenario, it may be possible to cre-

ministerially, they will not be required to

apply its Residential Design Guidelines to

ate six to eight units (mixing ADUs and

meet subjective design standards such as

units built under SB 9, where such guide-

non-ADUs) on a lot with a single-family

those found in the City’s Residential Design

lines are “objective.” Since those guidelines

home of 2,400 square feet or larger. For

Guidelines. Zoning standards, such as set-

tend to be subjective in nature, it will be

example, after a lot split, a dwelling could

backs and rear yard requirements, cannot

interesting to observe how much design in-

be added to a single-family home, and

be imposed if they would have the effect of

put the City will have on new units created

then an ADU could be added as well. If

physically precluding the construction of

under SB-9.

this occurs on each of the two new lots,

up to two units, or would prevent either of

there would be a total of six units. SB 9

the two units from being at least 800 square

seems to give localities the right to deny

feet (unless a four-foot side and rear lot line

an ADU added after a lot-split (it remains

setback must be implemented).

to be seen what San Francisco will do).

However, it does not appear that localities can prevent a lot with a home and an ADU (and/or JADU) from adding a dwelling unit after a lot split. If that occurs on each

Advantages of creating ADUs compared to new SB 9 units • ADU applications must be processed within 60 days.

are both ADUs and JADUs on each lot, a

• ADUs are not limited to single-family

total of up to eight units may be reached.

home zoning, and are not limited to

None of the non-ADU units created on a

lots without historic buildings (or areas

parcel that was split would be subject to

outside a historic district).

rent control, and the non-ADU units could • No intent-to-occupy affidavit must be

of the two lots would have two dwelling

signed for one of the units built pursu-

units and an ADU and JADU (assuming

ant to a lot split.

46

FEBRUARY 2022 | SF APARTMENT MAGAZINE

for the demolition of existing units.

One challenge found in the City’s local SB 9

lot of 1,200 square feet or more, and there

be sold as condominiums. In sum, each

• No mandatory hearings are triggered

The information contained in this article is general in nature. Consult the advice of an attorney for any specific problem. M. Brett Gladstone, Esq. is an attorney at Goldstein, Gellman, Melbostab, Harris & McSparran, LLP.

Mike Stack

Real Estate Advisor

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

415.580.9095

mikestack@vanguardsf.com MikeStackSF.com

D R E# 0193228 0

Multi-family residential property sales among top 7 brokers in San Francisco in units sold over 5 quarters* 300 250 200 150 100 50 0 — Other San Francisco Brokerages — * Unit sales volume, transaction-side sales reported to SFARMLS, 1/1/20 –3/31/21, per Broker Metrics as of 4/4/21. Sales reported to MLS: Not all sales are reported.

5+ Unit multi-family property sales in units sold over 5 quarters* among top 7 brokers in San Francisco 60 50 40 30 20 10 0 — Other San Francisco Brokerages — * Unit sales volume, transaction-side sales reported to SFARMLS, 1/1/20 – 3/31/21, per Broker Metrics as of 4/4/21. Sales reported to MLS: Not all sales are reported.

SF APARTMENT MAGAZINE | FEBRUARY 2022

47

COLUMN

THE BRIDGE BRIEF

Opulent Optimism written by JEREMY W ILLIA MS

even higher than they were before the

Despite the City’s slow recovery, the steady upward trend continues, making it a viable market for investors who can weather the storm.

pandemic. Notwithstanding, there has

D

been a positive increase in rents in San Francisco of about 5% year-over-year between the end of 2020 and the end of 2021.

Noteworthy Trends in the National Rental Market

uring the past two years

surely. As I write this at the tail-end of

In their 2021 Annual Rent Report, the

of the pandemic, San

2021, San Francisco’s rental and sales

online rental platform Zumper con-

Francisco has been expe-

market has been on an upward trend

ducted a survey of nearly 10,000 renters

riencing an urban flight

and continues to be a viable market for

nationwide to uncover emerging trends

counteracted only by relatively small

landlords and savvy investors who can

in renters’ behaviors during the past

waves of residents returning each

weather the storm.

two years of the pandemic. These same

month. For what seems to be the first

trends can help explain some of the lo-

time since the tech boom made its way

This column will explore some of the

cal market conditions that we are experi-

to San Francisco, the City’s reliance on

noteworthy market trends that have

encing here in San Francisco.

the tech industry has now become an

emerged during the past two years in

impediment to a speedy recovery for

the San Francisco apartment rental and

From the onset of the pandemic, moving

our local economy. With over 30% of

sales market as a result of the COVID-19

home to live with parents quickly be-

Bay Area residents working in tech and

pandemic. Trends that are sure to re-

came a viable solution for many young

being greenlighted to work from home

surface and continue throughout 2022.

affluent renters—especially those who

for an extended period, if not indefi-

I’ve given special attention to what has

had recently moved to San Francisco for

nitely, San Francisco’s rental market re-

influenced these trends, as well as some

work or to attend university.

covery has been slower than most other

of the opportunities for landlords and

metropolitan areas.

investors in the current market.

Following the urban flight of tech workers leaving the Bay Area, we also

How Rents Are Trending in the Local Market

saw university students and hospitality

As we ended 2021, the rental rates in

to weather out the pandemic. Whereas

workers pack up and leave as univer-

San Francisco remained roughly 20%

in 2021, that number dropped by almost

sity classes went virtual and many of

lower than when residents started to

5% as renters regained confidence in

the City’s bars, restaurants, and hotels

leave town in early 2020. The median

city living and began moving into their

shuttered for months at a time. As a

rent for a one-bedroom apartment in

own places again.

result, vacancy rates in apartment rent-

San Francisco at the end of 2021 came

als skyrocketed and rents dropped to

in right around $2,800 per month,

a fraction of what they were prior to

down from its pre-pandemic high of

Local 5-Plus-Unit Market During COVID

the pandemic.

over $3,400 per month.

Fortunately, though, the apartment sales

Despite the many variables affecting

San Francisco’s economic recovery has

hard as the local rental market. Even

the speed of San Francisco’s recovery,

seemed glacial when compared with

though sales slowed to a mere trickle

the constant remains that people want

other large cities, like New York, where

during the spring and summer months

to live and work in San Francisco and

rental rates have increased by over

of 2020, we began seeing positive mo-

are making their way back slowly but

one third during 2021, and are now

mentum again in the fall of that same

But how long will this trend last? Results from their 2020 survey showed that close to one in five respondents had moved back home to live with parents

market in San Francisco was not hit as

48

FEBRUARY 2022 | SF APARTMENT MAGAZINE

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51

year. And, by Spring 2021—after almost a

unavailable to many investors. This is espe-

year of investors holding on to their cash—

cially true for first-time investors who might

we began seeing multiple offers and even

not have the bandwidth to handle the no-

bidding wars again on well-positioned mul-

toriously timely and costly owner move-in

tifamily listings.

process that previously would have been necessary when apartment occupancy rates

This heightened activity continued into

were much higher prior to the pandemic.

the summer months of 2021 as the median sales price for 5-plus-unit apartment

Now, first-time homebuyers in the San Fran-

buildings jumped to $3.7 million, a nearly

cisco market can instead opt to purchase

40% increase from the first quarter of last

a smaller apartment building, oftentimes

year and surprisingly right in line with the

with a vacant unit for them to live in, and

median sales price for the same quarter in

at a similar price point as a single-family

2019, prior to the pandemic.

home—but with much less competition.

The seasonal spike tapered off in the fall

The median sales prices in this subsector

when the median sales price in this subsec-

of the market floated right around $2 mil-

tor of the market lowered to right around

lion year-over-year during this time period.

$3.1 million—still almost 15% higher than

However, as investor activity increased, so

the first few months of 2021, when the me-

did the median price per square foot. From

dian sales price for 5-plus-unit properties

$660 per square foot in 2019, to $670 per

was closer to $2.7 million.

foot in 2020, and all the way up to $690 per foot by the end of 2021.

How the Single-Family-Home Market Impacts the Multifamily Sales Market

Similarly, the number of transactions in

Another interesting finding in the survey

also increased from roughly 450 sales in

conducted by Zumper’s analysts between

2019 to an astonishing over 560 sales re-

2020 and 2021 is surrounding the percent-

ported in 2021, after a dip to less than 350

age of renters who were actively looking

sales in 2020.

to purchase a home but were priced out of the market.

the 2-to-4-unit market during this period

Optimistic Outlook These market statistics tell a story of

Over 20% of the respondents fell into this

redemption for the San Francisco apart-

category as they reported that they were

ment sales market. And even though San

ready to take the jump into homeowner-

Francisco’s rental market is still depressed

ship yet were dismayed by the increas-

relative to other large metropolitans, resi-

ing home prices and bidding wars that

dents continue to make their way back to

reached a fever pitch in 2020 and continued

the Bay Area.

RHINO

throughout 2021.

If the sales activity and metrics of 2021 are These would-be homeowners are now

any indicator of what’s in store for 2022,

returning to metropolitans once again

then the local market has all but weathered

as renters or, in the case of the San Fran-

the storm and we are looking at brighter

cisco market, are opting for alternative

days ahead.

means of homeownership, i.e., via multifamily investing.

Opportunities in the San Francisco 2-to-4-Unit Market Although painful for many landlords and investors, especially in the 5-plus-unit market, the record high vacancy rates in smaller 2-to-4 unit apartment buildings has created new opportunities in the market previously

52

FEBRUARY 2022 | SF APARTMENT MAGAZINE

Jeremy Williams is a multi-unit and commercial sales specialist, focusing on the San Francisco Bay Area market. To discuss the findings in this article or to consult on any other real estate matters, contact Jeremy at 415-932-9846 or jeremy@ jeremywilliams.com

(833) 711-3400 info@lllegalassistance.com www.lllegalassistance.com

w

extra extra

READ ALL ABOUT IT In San Francisco, managing and owning rental property can be a tough business. Keep your manager up to date with the latest news, legislation, trends and analysis of the industry. SFAA members can now send their managers or friends SF Apartment Magazine for only $84 a year.

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sfaa 2 2020calendar

sfaa

February

WEDNESDAY, FEBRUARY 3 Intellirent Demonstration Webinar Zoom Webinar System 10:00 a.m. to. 11:00 a.m.

Free for Members

WEDNESDAY, FEBRUARY 3 Marijuana & Your Rental Property Webinar Zoom Webinar System 10:00 a.m. to. 12:00 p.m.

Members $45 Non Members $65

THURSDAY, FEBRUARY 4 SFAA 2022 Lease Review Webinar Zoom Webinar System 10:00 a.m. to. 11:00 a.m.

Members $65 Non Members $95

MONDAY, FEBRUARY 7 Board of Directors Mtg. 11:30 a.m.

WEDNESDAY, FEBRUARY 10 Buying Property in Your IRA Webinar Zoom Webinar System 1:00 p.m. to. 2:00 p.m.

Members $45 Non Members $65

FRIDAY, FEBRUARY 11 AB1482 & Rent Increase Moratoria Webinar Zoom Webinar System 10:00 a.m. to. 11:00 a.m.

Members $45 Non Members $65

WEDNESDAY, FEBRUARY 16 Virtual Member Meeting Market Conditions Update 9:00 a.m.

Free for members

THURSDAY, FEBRUARY 17 Landlord Etiquette Webinar Zoom Webinar System 10:00 a.m. to. 12:00 p.m.

Members $45 Non Members $65

WEDNSDAY, FEBRUARY 23 SFAA Online Lease Demonstration Webinar Zoom Webinar System 10:00 a.m. to. 11:00 a.m.

Free for Members

FRIDAY, FEBRUARY 25 New Unit Registration and Licensing Law Webinar Zoom Webinar System 10:00 a.m. to. 11:00 a.m.

Members $45 Non Members $65

SFAA MEMBER MEETINGS WILL BE HELD VIRTUALLY UNTIL FURTHER NOTICE DUE TO COVID-19. FOR TOPICS AND SCHEDULES, VISIT SFAA.ORG.

March THURSDAY, MARCH 3 Asset Protection for Properties Webinar Zoom Webinar System 1:00 p.m. to. 2:00 p.m.

Members $45 Non Members $65

MONDAY, MARCH 7 Board of Directors Mtg. 11:30 a.m.

THURSDAY, MARCH 10 Rent Increases During the Pandemic Webinar Zoom Webinar System 1:00 p.m. to. 2:00 p.m.

Members $45 Non Members $65

WEDNESDAY, MARCH 16 Virtual Member Meeting Update 9:00 a.m.

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Free for Members

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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

03/01/21 - 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%

03/01/17 - 02/28/18

0.6%

2020-2021

$25.00

2019-2020

$25.00

2018-2019

$22.50

2017-2018

$22.50

2016-2017

$20.00

2015-2016

$18.50

03/01/16 - 02/28/17

0.2%

$18.00

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%

03/01/10 - 02/28/11

0.9%

03/01/09 - 02/28/10

3.1%

03/01/08 - 02/28/09

5.2%

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

2008-2009

$14.50

2007-2008

$13.00

03/01/07 - 02/29/08

5.2%

2006-2007

$11.00

03/01/06 - 02/28/07

3.7%

2005-2006

$10.00

2004-2005

$11.00

2003-2004

$21.50

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 | FEBRUARY 2022

55

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 LLP Clifford E. Fried www.friedwilliams.com

415-421-0100

HAAS NAJARIAN LLP Eric Murphy (415) 788-6330 emurphy@hnattorneys.com

56

HERZIG & BERLESE Barbara Herzig bherzig@hbcondolaw.com

FEBRUARY 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

CLEANING SERVICES

OPTIMUS BUILDING SERVICES Claudia Giraldo 650-290-4607 optimusbuildingservices.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

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 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

INSURANCE COMPANIES

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

LENDING / INSTITUTIONS

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

LOCKSMITHS

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

415-775-8513

MAINTENANCE REPAIR SERVICE

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 IMANAGE RENTS Hatef Maoghimi hatef@imanagerent.com wwwimanagerent.com ROOST Chanin Balance chanin@joinroost.com

415-547-0049

(503) 888-2528

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

415-334-3277

PEST CONTROL

ATCO PEST & TERMITE CONTROL & HOME RESTORATION Richard Estrada 415-898-2282 www.atcopestcontrol.com CROWN & SHIELD PEST SOLUTIONS-PREMIER Aurora Garcia-Vidaca 415-893-9551 www.crownandshieldpestsolutions.com 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 AMORE REAL ESTATE, INC Jerry Hsieh 415-567-4800 www.amoresf.com AYS MANAGEMENT Kevin Newsome 510-708-0165 ayspropertymanager@gmail.com BEAM PROPERTIES, INC. Darius Chan darius@sfbeam.com

415-254-8679

PAINTING CONTRACTORS

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

415-254-7818

415-608-3050

KRUITPAINTING, INC. Pieter Kruit www.kruitpainting.com

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

BERENDT PROPERTIES Craig Berendt craig.berendt@gmail.com

SF APARTMENT MAGAZINE | FEBRUARY 2022

57

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

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

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

EQUITY ONE Brenda M. Obra www.equity1sf.com

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

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

HOGAN & VEST INC. Simon Wong hoganvest.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

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

EBALDC Felicia Scruggs FScruggs@ebaldc.org

510-287-5353

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

INCOME PROPERTY SPECIALISTS Clayton Llewellyn 408-446-0848 www.ipsmanagement.cc

(707) 584-5123

415-441-1200

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

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

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

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

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

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

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

58

415-648-1516

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

GORDON CLIFFORD PROPERTIES, INC. Patrick Clifford 415-613-7694 patrick@gcpropertiessf.com 415-421-7116

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 MYND MANAGEMENT, INC. Stacy Winship 510-306-4440 www.mynd.co NEW GENERATION INVESTMENTS Jonathan Ng 415-735-8233 jtng.ngi@gmail.com OPEN WORLD PROPERTIES Jonathan Daryl Fleming 510-250-0946 jonathan@openworldproperties.com www.Openworldproperties.Com

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

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

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

PILLAR CAPITAL REAL ESTATE Jonathan Ng (415) 885-9584

415-386-3111

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com SUTRO PROPERTY MANAGEMENT, INC. Salman Shariat 415-341-8774 www.sutroproperties.com VERTEX PROPERTY GROUP Craig Berendt 415-608-3050 vertexsf.com WEST & PRASZKER REALTORS Michael Klestoff 415-661-5300 www.wprealtors.com WEST COAST PROPERTY MANAGEMENT Eric Andresen 415-885-6970 www.wcpm.com

members FEBRUARY 2022 | SF APARTMENT MAGAZINE

GM GREEN REAL ESTATE INC. George Green 415-608-6485 ggreen@gmgreen.com www.gmgreen.com

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 PROGRESSIVE PROPERTY GROUP Dace Dislere 415-794-9727 www.progressivesf.com PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen, Broker, CCRM, MPM®, RMP® 415-661-3860 www.propertymanagementsystems.net RAMSEY PROPERTIES Brian E. Ramsey 415-474-5175 Brian@RamseyPropertiesSF.com REAL MANAGEMENT COMPANY J.J. Panzer 415-821-3167 www.RMCsf.com

ROCKAWAY RESIDENTIAL MANAGEMENT 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 SHARVEST PROPERTY MANAGEMENT, LLC Timothy D. Gilmartin 650-347-2020 tim@thegilmartins.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 YMPG Yelena Gelzer 415-260-6325 yglezer@ympg-management.com

PROPERTY MANAGEMENT SOFTWARE APPFOLIO Mindy Sorenson 805-364-6098 mindy.sorenson@appfolio.com

REAL ESTATE BROKERS & AGENTS

ALAIN PINEL INVESTMENT GROUP Mirella Webb 415-814-6699 mwebb@apr.com BERKSHIRE HATHAWAY FRANCISCAN PROPERTIES Edward Milestone 415-994-5969 MilestoneRealEstateSF@gmail.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 www.terrencejones.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

HEMLANE, INC. Dana Dunford dana@hemlane.com

385-355-4361

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

YARDI Kelly Krier kelly.krier@yardi.com

805-699-2040

ICON REAL ESTATE INC. Jason Quashnofsky jason@iconsf.com

REAL ESTATE APPRAISALS MARK WATTS COMMERCIAL APPRAISAL Mark Watts 415-990-0025 www.markwattscommercialappraisal.com HARPER & ASSOCIATES Jay Harper jharpsf@att.net

415-647-9243

(415) 370-7077

KILBY STENKAMP-VANGUARD PROPERTIES Kilby Stenkamp 415-370-7582 LESLIE BURNLEY Leslie Burnley leslie.j.burnley@gmail.com leslieburnley.com

415-717-8709

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

MORGAN REAL ESTATE ADVISORS, INC. Laurence Morgan 415-300-6503 laurence@morganrealestateadvisor.com www.morganrealestateadvisor.com NEWMARK KNIGHT FRANK Matthew C. Sheridan 415-273-2179 aptgroupsf.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

RENT BOARD PETITIONS

PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen 415-661-3860 www.propertymanagementsystems.net REAL MANAGEMENT COMPANY Melinda Greene 415-230-8895 www.RMCsf.com RENT BOARD PASSTHROUGHS Kim Boyd Bermingham 415-333-8005 www.rentboardpass.com

RENTAL LISTING SERVICES APARTMENT LIST Alex Mashburn 678-467-0411 amashburn@apartmentlist.com COSTAR Aj Herlitz www.costargroup.com aherlitz@costar.com

(844) 459-1495

HRH REAL ESTATE SERVICES CORPORATION Renee A. Engelen (415) 810-6020 www.hrhrealestate.com REALPAGE Stacey Blackwell 972-820-3015 stacey.blackwell@realpage.com www.realpage.com

SF APARTMENT MAGAZINE | FEBRUARY 2022

59

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 +

$350 +

$9 per unit =

TOTAL UNIT AMOUNT:

Units

Base Fee

Unit Fee

1-22

$525 +

$4.50 per unit =

23 +

$480 +

$6.50 per unit =

CONTACT INFORMATION Contact Person Company/Title Address

Email Address

Website

Visa

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

SECURITY

PAYMENT METHOD MC

415-509-3456

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

Zip

Mobile Phone

Amex

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

RELISTO Eric Baird www.relisto.com eric@relisto.com

ASSOCIATE MEMBER DUES: $499

Check

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

LINGSCH REALTY Natalie M. Drees www.lingschrealty.com

TOTAL AMOUNT:

State

BERENDT PROPERTIES Craig Berendt 415-608-3050 www.berendtproperties.com

KENNEY AND EVEREST REAL ESTATE, INC. Maureen Kenney 415-929-0717 maureen@kenneyrealestate.com

MANAGEMENT COMPANY DUES

City

RESIDENTIAL LEASING

J. WAVRO ASSOCIATES James Wavro www.jwavro.com

TOTAL AMOUNT:

TOTAL UNIT AMOUNT:

949-702-1508

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

REGULAR MEMBER DUES

1-22

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

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

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

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

60

FEBRUARY 2022 | SF APARTMENT MAGAZINE

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

415-937-7283

TENANT PLACEMENT & LISTING

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

WATER CONSERVATION SERVICE

ad index NEED A PROFESSIONAL

CONTRACTOR OR VENDOR?

ALARM COMPANIES

AEC Alarms

ARCHITECTURE & DESIGN SERVICES

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

Adapt Dwellings Openscope Studio

WATER DAMAGE SERVICE

Fried & Williams, LLP Kaufman, Dolowich & Voluck Rhino Process Serving, LLC Zacks, Freedman & Patterson, PC

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

ATTORNEYS

FIRE ESCAPE CONTRACTORS

Great Escape Fire Escape LOCKSMITHS

Crown Lock & Safe Warman Security PAINTING CONTRACTORS

Pac West Painting

PETITION SERVICES

Rent Board Passthroughs

37 39 50 71 48 30 51 72 73 67 46 73

PROPERTY MANAGEMENT & MAINTENANCE & RESIDENTIAL LEASING

Gaetani Real Estate, Inc. Maven Maintenance Real Management Company Rentals in SF Structure Properties Vertex Properties West Coast Property Management

76 35 51 50 12 6 71

PROPERTY MANAGEMENT SOFTWARE

Yardi Breeze

19

REAL ESTATE BROKERS

Amore Real Estate 72 Coldwell Banker Commercial / McGue 13 Colliers / Devincenti 2 Compass / Antonini 75 Compass / Bonn & Webb 17 Compass / Filly 11 Compass / Greenberg & Splenda 3 Compass / Pugh 31 Corcoran / The Jones Team 15 EXP Realty / Williams 45 HRH Real Estate 70 Marcus & Millichap 28-29 Newmark / Sheridan 43 Vanguard Commercial / Chapleau 9 Vanguard Properties / Stack 73 UTILITIES BILLING SERVICES

Livable

70

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

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415.775.8513 SF APARTMENT MAGAZINE | FEBRUARY 2022

61

Island of Dreams… continued from page 30

Where the Embarcadero’s engineers have to work around a massively built-up area on an aging seawall, TIDA can reimagine TI’s shoreline from the ground up. “An advantage we have relative to the Embarcadero,”

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.

says TIDA director Robert Beck, “is that [our developments] are set back from the shore, and we’re planning with the understanding that we live in a world with sea level rise.”

Aside from the initial perimeter raises and parks ringing the island, TIDA’s future plans are built around monitoring the sea level. A suite of improvements—including

Ashley E. Klein

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

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.

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.

storm drains, levees, and floodwalls­­—will be considered once tides reach certain heights. This way, the developers can respond with the latest climate forecasts, which tend to get outdated quickly.

Beck says, for example, that the wetlands planned for the northern edge of the island will be “similar to what you see at Chrissy Field. There’s several thousand feet between the shore and any development.

Wetlands are a natural way of absorbing any storm surge.” Small hills and dips can be built into parks to direct water in intentional ways. “So it’s not always a matter of building a dike or a levee—there’s alternative means we can use.” Portions of the shoreline parks could be converted to wetlands, “and in that case, we might actually lower the edge of the island to facilitate the storm surge... changes could be made to accept some limited overtopping, and integrate that into the landscape features.”

Another novel component is the way these adaptations are being funded. Ordinarily, SF’s Redevelopment Association would have secured state-level funding for the project, but as the plan was finalizing in 2011, California dissolved its 400-plus RDAs. Instead, TIDA utilized a new tax vehi-

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

cle called an Infrastructure and Revitalization Financing District, which operates at the city-and-county level, and goes through the Board of Supervisors for approval.

The second funding mechanism is designed specifically for the island’s long-term

62

FEBRUARY 2022 | SF APARTMENT MAGAZINE

sfaa’s

Landlord Etiquette Webinar Can I just walk into a unit? Can I rent to only one person? Can’t I wait to return the security deposit until I think everything is to my satisfaction? I don’t like my tenant anymore—can I make them leave? I don’t want to rent to a couple— is that okay? Come learn all the do’s and don’ts of being a landlord.

This class will be taught by Steven C. Williams of Fried & Williams, LLP. Steve has been practicing law since passing the bar exam in 1999 at Golden Gate University.

INSTRUCTOR:

WEBINAR:

Steven C. Williams of Fried & Williams, LP

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

DATE & TIME:

Thursday, February 17 10:00 a.m. – 12:00 p.m.

COSTS:

Members: $45 Nonmembers: $65

For more information, contact Stephanie Alonzo at 415.255.2288 x113 or stephanie@sfaa.org.

sfaa’s 2022

Lease Review Webinar The SFAA Residential Tenancy Agreement is one of the commonly used leases in San Francisco. Many landlords use this lease and this course will enable you to complete the lease details correctly, outline your obligations as an owner, and explain your responsibilities of the tenants.

Instructors: Dave Wasserman of Wasserman San Francisco, and Eric Andresen of West Coast Property Maintenance & Management DATE & TIME:

Friday, February 4 10:00 a.m. – 11:00 a.m.

COST

Members: $65 Nonmembers: $95

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

For more information, contact Stephanie Alonzo at 415.255.2288 x113 or stephanie@sfaa.org.

SF APARTMENT MAGAZINE | FEBRUARY 2022

63

sfaa sfaa 2022 What You Need to Know 2022 SFAA UPDATES

adaptations. The new developments have been placed in a Community Facility District [CFD], and are subject to an additional property tax, which will be assessed on each property based on its square footage.

This district will begin life as a “Capital CFD,” and will only escalate at 2% of the initial assessment. (As GDP rises 3–5% per year, the real dollar value of this tax will be declining over time.)

Once the CFD has established a reservoir of $250 million (in 2016 dollars), it will convert to a “Maintenance CFD,” which can be

VIRTUAL MEMBER MEETINGS WEDNESDAY, FEBRUARY 16 9:00 A.M. WEDNESDAY, MARCH 16 9:00 A.M.

indexed to inflation and will be in place in perpetuity. The effect is that more funding will be available for adaptations as the effects of climate change accelerate. Although he didn’t give specific values, Beck says that “$250 million is a significant amount relative to the individual [adaptations].”

“Just overall, when it comes to sea level rise and Treasure Island, this project was

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 54.

forward-thinking. BCDC has held up TI as a model for the region in how to plan for development in proximity to the shoreline. To have have both an adaptation strategy playbook and a funding playbook,” Beck says.

Often, climate-related threats to coastal de-

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.

velopment are framed as a choice between funding Sisyphean containment infrastructure or implementing managed retreat.

TI’s design represents a fascinating middle ground: Give nature plenty of space to be chaotic, as we shove it further into chaos.

Devin Smith is a musician, writer, and process oriented visual artist. He lives in Vista SF.

Go Online!

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

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FEBRUARY 2022 | SF APARTMENT MAGAZINE

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

Passthroughs

Prevent Fires.

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

We prepare petitions for • Soft Story/Voluntary Seismic • General Capital Improvements • Operating and Maintenance and also • Annual Increase letters • General and Water Bond Passthroughs We have 18 years of experience and have filed hundreds of successful passthroughs.

Call us today at

415-333-8005

to find out how you can benefit.

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.

•

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

•

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

•

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.

SF APARTMENT MAGAZINE | FEBRUARY 2022

65

40 YEARS OF EFFECTIVE, HANDS ON EXPERIENCE!

Give 10 Get 10!

Give us 10 minutes of your time, learn how we can increase your bottom line and get a Starbucks gift card on Us!

Renee A. Engelen, DRE 01879547

(415) 810-6020 INFO@HRHREALESTATE.COM

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FEBRUARY 2022 | SF APARTMENT MAGAZINE

PROVEN EXPERTISE IN: PROPERTY MANAGEMENT PROPERTY LEASING SALES & ACQUISITIONS CONSULTING PROJECT MANAGEMENT CONTRACT NEGOTIATIONS

PRESIDENT Professional Property Managers Association of San Francisco

SF APARTMENT MAGAZINE | FEBRUARY 2022

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Rest Insured… continued from page 40

may incur. Cyber liability insurance is specifically designed to address the risks that come with using modern technology; risks that other types of business liability coverage simply won’t. The level of coverage your business needs is based on your individual operations and can vary depending on your range of exposure.

From the moment that you start the prehiring process until the exit interview, you are vulnerable to an employment-related lawsuit. As a result, your business should take a hard look at whether it can afford to defend itself against alleged wrongful employment practices accusations.

What’s the implication for your business?

Building damage can result in long- or short-term business interruption. Just as detrimental can be the loss of utilities, which can occur even if your building is relatively intact.

More so than other natural disasters, earthquakes occur suddenly and without warning, leaving you little time to prepare.

Insurance strategies can be effective for any business and can truly make a big difference in your company’s chance for survival.

Depending on your risk factor, earthquake insurance may also be a wise purchase to fully protect your business. Earthquakes are not covered under standard business insurance policies, so you will need to buy either an endorsement to supplement your policy or a separate earthquake policy.

These policies will generally cover building and property damages caused by the shaking of an earthquake.

Flooding is a risk to any business, whether you are inland or near the coastline. Because new land development can increase flood risk by changing natural runoff patterns, it is a good idea to purchase flood insurance even if you are not near a large body of water.

Are You Buying Enough?

One of the most important aspects of purchasing insurance is making sure that you have purchased enough coverage to be

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FEBRUARY 2022 | SF APARTMENT MAGAZINE

adequately protected. A typical policy will provide the replacement cost value for your building and the actual cash value for your business property. Replacement cost value is the amount that is necessary to replace or rebuild your building or repair damages with similar materials, without considering depreciation. Actual cash value, on the other hand, is the value of your property when it is damaged or destroyed. This amount is typically determined by subtracting the depreciation from the replacement

FOR ALL YOUR REAL ESTATE NEEDS

cost value.

SERVING SAN FRANCISCO PROPERTY OWNERS FOR OVER 60 YEARS

Most insurance policies include a coinsurance clause, which requires you, the policyholder, to share the cost of covered services

SALES INVESTMENTS PROPERTY MANAGEMENT

up to a moderate percentage of the actual cash value of the property. This will allow you to receive full coverage for your losses.

Should you decide to purchase inadequate coverage for your property, you may be obligated to pay a percentage of all losses, even if they are listed in the policy.

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

The information provided here is not intended to be exhaustive, nor should any discussion or opinions be constructed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.

CAA Value Insurance Program understands that determining your business’s value is critical, so we’re here to help. We can assist you in developing risk mitigation strategies, implement preparation measures and discuss your insurance coverage needs.

Contact us today at 1-866-913-6293 to learn more about our insurance and loss control solutions to protect your business.

4

SF APARTMENT MAGAZINE | FEBRUARY 2022

69

2022 Winter Day CCRM Webinar 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

2/2/2022

2PM-5PM

$85.00

$100.00

PMR101

Renting the Property

2/9/2022

2PM-5PM

$85.00

$100.00

PMR102

Beginning and Maintaining the Tenancy

2/16/2022

2PM-5PM

$85.00

$100.00

PMR103

Renewal of Tenancy and Ending the Tenancy

2/23/2022

2PM-5PM

$85.00

$100.00

PMR104

Maintenance Management: Maintaining the Property

3/2/2022

2PM-5PM

$85.00

$100.00

PMR105

Liability & Risk Management

3/9/2022

2PM-5PM

$85.00

$100.00

PMR106

Budget Development and Implementation

3/16/2022

2PM-5PM

$85.00

$100.00

PMR107

Fair Housing: It’s the Law

3/23/2022

2PM-5PM

$85.00

$100.00

PMR108

Professional Skills for Supervisors

3/30/2022

2PM-5PM

$85.00

$100.00

EXAM

CCRM Final Exam

4/6/2022

2PM-5PM

FREE

Class Location Zoom Webinar System Upon registration the Zoom link will be emailed to the student Class is every Wednesday

See schedule below

FREE

Total Due:

To Register

Online: www.sfaa.org Call: 415-255-2288 x.113 Email: stephanie@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.

CCRM Certification Renewal Policy: In order to keep the certification active, CCRMs must complete twelve hours of continuing education credits & submit a renewal application along with a renewal fee every other year (2 hours of these credits must be in Fair Housing)

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caanet.org events@caanet.org

FEBRUARY 2022• 980 | SF Ninth APARTMENT 800.967.4222 Street,MAGAZINE Suite 1430 • Sacramento, CA 95814

JOHN ANTONINI + DANIEL FOLEY MULTIFAMILY + MIXED-USE + ADD-VALUE

"Buy land, they're not making any more of it" - Mark Twain

JU ST L ISTE D 2074-2078 Bush Street Classic Victorian located in Lower Pacific Heights Three units, Two Vacant One block from Fillmore St + Japantown Well Maintained Original Charm

116 19th Avenue Four Units | Four Car Parking 19th Ave between Lake & California Streets Two Units Delivered Vacant Excellent for Owner-Users or Partners John Antonini

Daniel Foley

415.794.9510

415.866.7997

john@antoninisf.com

daniel@danielfoley.com

www.antoninisf.com

www.danielfoley.com

DRE 01842830

DRE 01866714

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

SF APARTMENT MAGAZINE | FEBRUARY 2022

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.

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TO MOST PEOPLE, THIS IS JUST A SMART LOOKING DUPLEX

TO YOU, IT’S BEEN A SMART WAY TO DOUBLE YOUR MONEY. We know the properties we manage mean more to owners like you than meets the eye. That’s why, for 75 years and across three generations of our 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. celebrating

gaetanirealestate.com 415.668.1202

75 YEARS