San Francisco Rent Ordinance

The San Francisco Rent Ordinance offers comprehensive protections against excessive rent increases, arbitrary evictions, and landlord harassment. These protections are administered by the San Francisco Rent Board.

Who is Covered by the Rent Ordinance?

San Francisco's law creates layered protection: most residential units have Eviction Protection (Just Cause), but only older buildings have full Rent Control (Rent Caps).

1. Rent Control (Rent Caps)

  • Applies to: Most multi-unit properties (two or more units) built on or before June 13, 1979.

  • Key Exemptions:

    • New Construction: Units built after June 13, 1979.

    • Single-Family Homes & Condos: Generally exempt from rent caps if the tenant moved in on or after January 1, 1996 (due to state law, Costa-Hawkins).

    • Owner-Occupied Buildings: Fully owner-occupied buildings with fewer than three units.

    • Substantial Rehabilitation: Units that have undergone substantial rehabilitation.

2. Eviction Protection (Just Cause)

  • Applies to: Most residential units, including single-family homes and condos (even if they are exempt from rent caps).

  • Protection: A landlord must have one of 16 specific legal reasons (Just Causes) to terminate a tenancy.

  • Key Exemption: Units where a tenant shares a bathroom or kitchen with the landlord, who lives in the unit as their principal residence.

RENT INCREASES AND BANKING

For Rent-Controlled Units, annual rent increases are strictly capped by a percentage set by the Rent Board.

Annual Allowable Rent Increase (ARI)

  • Limit: A landlord can increase rent only once every 12 months by the percentage set annually by the Rent Board.

  • Rate: The Rent Board calculates the ARI based on 60% of the increase in the Consumer Price Index (CPI) for the Bay Area.

  • Notice Required: 30-day written notice is required for increases of 10% or less. 90-day notice is required if the increase (alone or cumulative in a 12-month period) is more than 10%.

Banking of Unused Increases

  • Allowed: Landlords can "bank" (save) the Annual Rent Increase percentage if they choose not to impose it when it is due. They can impose the saved percentages in future years.

  • Transfer: A new landlord can impose banked increases that the previous landlord didn't take.

Other Allowable Increases and Fees

  • Passthroughs: Landlords may automatically pass on certain costs without Rent Board approval, including a portion of the Annual Rent Board Fee and certain bond measures.

  • Petitions: A landlord can petition the Rent Board to impose:

    • Capital Improvement increases (for major, approved upgrades that benefit tenants).

    • Operating and Maintenance increases (if they can show the property is not generating a fair return).

Challenging an Illegal Increase (Petitions)

If you believe you have received an illegal rent increase (or a service reduction without a corresponding rent decrease), you should contact the Rent Board immediately to file an Unlawful Rent Increase Petition to get overpayments refunded and your rent set correctly.

JUST CAUSE EVICTION PROTECTIONS

With 16 reasons, San Francisco's Just Cause list is extensive. Any eviction that is not one of these reasons is considered illegal.

Eviction for Owner Move-In (OMI)

An Owner Move-In eviction allows the owner or a qualified close relative (parent, child, grandparent, grandchild, or sibling) to occupy the unit. This process has strict rules:

  • Good Faith: The owner/relative must move in within three months and reside in the unit as their principal residence for at least 36 continuous months (3 years).

  • Relocation Payments: This is a No-Fault eviction and requires mandatory relocation payments.

  • Single Unit Rule: The Ordinance generally permits eviction for OMI from only one unit per building.

  • You cannot be evicted for OMI if you are 60 years or older or disabled (per federal SSI standards) and have lived in the unit for 10 years or more.

  • You cannot be evicted for OMI if  you are catastrophically ill and have lived in the unit for 5 years or more. Exception: These protections do not apply if the person moving in is also a senior or disabled person, and the landlord owns no other rental units in the building.

  • Action Required: A tenant claiming protected status must notify the owner in writing within 30 days of receiving the notice to vacate or a request to declare protected status.

Ellis Act Eviction (Withdrawal from Market)

The Ellis Act allows a property owner to permanently withdraw all units in the building from the residential rental market.

  • Notice Required: The standard notice is 120 days.

  • Extended Notice: Tenants who are 62 or older or disabled are entitled to an extended one-year notice to vacate.

Relocation Payments

Relocation payments are required for all No-Fault evictions (OMI, Ellis Act, Demolition, Substantial Rehabilitation, etc.).

  • Base Payment: All tenants evicted for No-Fault reasons are entitled to a mandatory base payment (the amount is set annually by the Rent Board and increases every July 1st).

  • Enhanced Payment: An additional payment is required for each tenant who is 60 or older, disabled, or a household with minor children.

  • Payment Schedule: Half of the total payment is due when the notice is issued, and the remaining half is due when the tenant vacates.

Tenant Buyout Regulations

A buyout agreement is a contract where a landlord pays a tenant money to voluntarily move out of their rent-controlled unit. San Francisco heavily regulates this process to prevent tenant coercion:

  1. Pre-Buyout Disclosure: Before any discussion begins, the landlord must provide the tenant with a Pre-Buyout Negotiations Disclosure Form, which clearly outlines the tenant's rights (including the right not to agree).

  2. Filing with Rent Board: The landlord must file a declaration with the Rent Board before commencing negotiations.

  3. Right to Rescind: The tenant has the right to cancel (rescind) the signed buyout agreement at any time up to 45 days after all parties have signed it.

  4. Buyout Filed: The final agreement must be filed with the Rent Board. Failure to comply with these rules can result in the tenant voiding waivers in the agreement and suing the landlord.

Peregrine Legal Group, PC, represents tenants across San Francisco. Contact us to schedule a consultation.

San Francisco Rent Ordinance Website: https://www.sf.gov/learn-about-san-francisco-rental-laws

Disclaimer: This information is for general knowledge only and is not legal advice. For specific legal issues, you should consult with a qualified attorney or contact the Pasadena Rent Stabilization Department.