San Francisco lawmaker's proposal is causing uproar among landlords
By Lily Leung
Monday, March 14, 2011 at 9:14 a.m.
More than 2,300 bills have been introduced this state legislative session.
Instead of having you go through all of them, the Union-Tribune is doing the work for you. We're sorting through the proposals and finding the ones that could highly impact those in the real estate market -- from renters to property owners to builders -- and breaking them down in this blog.
Bob Pinnegar, executive director of the San Diego County Apartment Association, estimates about 70 bills being reviewed this session are related to housing, up from the usual 30 to 50, he said.
Why the uptick?
"It's a new legislative session and we have a new governor," he said, referring to Gov. Jerry Brown. "Everyone is looking at past bills that didn't pass and testing the waters (again.)"
Today, we're featuring Assembly Bill 265, brought forward by Assemblyman Tom Ammiano, D-San Francisco.
THE PROPOSAL: Currently, landlords can give residential tenants three days' notice "to pay or quit" if they fail to pay rent on time. After three days, if tenants don't pay, then landlords can move forward with eviction. The bill calls for an extension of that period to 14 days.
PROPONENTS: Ammiano says the bill would help those who are having trouble paying their rent because of tough circumstances, mainly unemployment and costly medical bills. "Many of these people have nowhere to go and have no other resources," he told the Union-Tribune. "It's simply an extension."
The measure is backed by San Francisco-based group Tenants Together, which has had a longstanding relationship with Ammiano. Dean Preston, the organization's executive director, says the state is "out of step" with other areas in the U.S., where the pay-or-quit time frame is longer -- ranging from five to 30 days.
"We believe it's unreasonable to expect, particularly in this current economy, that tenants who can't come current within three days should have to vacate their homes," Preston said.
OPPONENTS: The apartment associations have come out firmly against Ammiano's proposal, particularly the California Apartment Association, whose members have sent more than 750 letters opposing the measure.
Association spokeswoman Debra Carlton said the bill would cause financial burdens on landlords, many of whom are trying to be on time with their mortgage payments. Carlton said rent is typically due on the first of the month, but often landlords grant grace periods, so rent can sometimes be due without penalty through the fifth of the month. When a three-day pay-or-quit notice is issued, she said it doesn't mean tenants are kicked out immediately, rather it signifies the start of the process, which can stretch for weeks or months, she said.
"Obviously it would make it difficult for landlords to pay their own bills if the tenant isn't paying until the middle of the month," Carlton said. "(By then) they will have more bills due. They have employees to pay. What we're talking about here is the changing of the income stream."
Karen Murphy Gross, senior vice president of Mission Valley-based R.A. Snyder Properties, calls the bill an "absolute bad thing for our industry."
"Many landlords allow for grace periods of three to five days," said Gross of the property management company. By the time the three-day notice is over, "you're already extended to the second week of the month."
She said extending that time frame to 14 days would imperil landlords, especially those with smaller operations.
STATUS: The bill was scheduled for its first hearing on Tuesday. However, it will be rescheduled.
Source: SignOnSanDiego
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