Fines or Jail Time for Wrongful Evictions?

Two competing bills aim to strengthen penalties for landlords who break the law.

In April, Supervisor Mark Farrell, as well as Aaron Peskin and Jane Kim, introduced two separate pieces of legislation requiring landlords to sign a declaration under oath to adhere to the law before conducting “owner move-in” evictions (OMIs).

Both bills would make it more difficult for landlords to wrongly evict tenants with claims that they plan to live in the property.

The need for the legislation became apparent with reports of landlords returning properties to the market with higher rents growing and enforcement slacking.

According to research from Farrell’s office, OMIs have increased more than 200 percent in the last five years, at almost 1,500 accounts since 2013.

Although state law allows property owners to evict tenants if they or a family member plans to occupy the residence, owners are required to keep the property off the market for at least three years. If the owner puts the property up for rent before three years is up, the original tenant is allowed to move back into the property at the same rent with allowable increases.

The state Supreme Court decision Action Apartment Association Inc. vs. City of Santa Monica makes it difficult to prosecute illegal OMIs, according to the District Attorney’s office spokesman, Max Szabo. The DA’s office is working with legislators on matters that concern their office directly.

Farrell’s original legislation to combat the issue includes the following required landlords provide annual “proof of tenancy” documents to prove that they or a family member occupies the residence for three years.

According to a statement by Farrell to the Beacon, the proposed legislation has been updated to include proactive notification by the owner to the tenant to “put people above profits, deter bad actors, and to give tenants a fighting chance to stay in San Francisco.”

Supervisor Farrell’s spokesman Jess Montejano explained that Farrell has been working with co-sponsors Malia Cohen, Sandra Lee Fewer and Jeff Sheehy to provide additional safeguards against fraudulent OMIs.
Montejano said that Farrell’s proposition is similar to Peskin and Kim’s, with the minor difference of not including OMIs on the grounds of a misdemeanor.

Peskin and Kim’s legislation goes further:

The notice to vacate must include the existing maximum rent.
Rent board must notify residents of maximum rent allowed for property periodically.
Any landlord found charging more than the rent on the most recent notice to vacate. during the three years after the eviction could be prosecuted by the district attorney’s office as a misdemeanor with a penalty of $100,000 and up to six months in jail.

Both ordinances are still in discussion.