4 18-0818 Subject: Options For Substantial Rehabilitation Exemption
From: Housing Community Development
Recommendation: Approve A Report And Reccommendation Directing The City Administrator To Prepare The Necessary Legislation To Amend Chapter 8.22, Article I (Residential Rent Adjustment Program) Of The Oakland Municipal Code To Address The Future Of The Substantial Rehabilitation Exemption
I was a tenant at Hotel Traveler's in downtown Oakland on 11th Street and had a newly remodeled room with bathroom for under $900/mo in a prime location. When Danny Haber bought the building in 2016, he used the threat of getting a substantial rehabilitation rent control exemption to force tenants from the building and sign away their tenancy rights by telling them after construction they wouldn't have rent control any longer and he could charge anything he wanted. Many of the tenants who were forced out are now homeless, and several have died. This loophole is being used primarily by wealthy developers to force low-income tenants from their homes at a time where it is almost impossible for even the middle-class to find housing in Oakland. The moratorium on this loophole needs to be made permanent ASAP to protect Oaklanders from predatory developers and landlords.
I am a resident of Oakland and tenant facing a 125% rent increase (from $2,000 to $4,500) after the owner performed countless unnecessary upgrades and "gold-plated" my unit. My unit had no code violations and was habitable as it was.
If owners wish to upgrade properties that are currently inhabited by tenants, they can still do so and recover costs through capital improvement rent increases.
As it currently stands, this loophole is merely used as a tool to displace tenants. The substantial rehab clause is not being used how it was intended to. This loophole needs to be closed, immediately.
The truth of the matter is that landlords have a huge advantage over tenants both financially and legally.
Closing this loophole means that our teachers, volunteers, community workers, elderly assistants, and countless others will be able to stay in the communities that they serve. Let’s make the playing field a little more fair for those that need it most.
I was a tenant at Hotel Traveler's in downtown Oakland on 11th Street and had a newly remodeled room with bathroom for under $900/mo in a prime location. When Danny Haber bought the building in 2016, he used the threat of getting a substantial rehabilitation rent control exemption to force tenants from the building and sign away their tenancy rights by telling them after construction they wouldn't have rent control any longer and he could charge anything he wanted. Many of the tenants who were forced out are now homeless, and several have died. This loophole is being used primarily by wealthy developers to force low-income tenants from their homes at a time where it is almost impossible for even the middle-class to find housing in Oakland. The moratorium on this loophole needs to be made permanent ASAP to protect Oaklanders from predatory developers and landlords.
I am a resident of Oakland and tenant facing a 125% rent increase (from $2,000 to $4,500) after the owner performed countless unnecessary upgrades and "gold-plated" my unit. My unit had no code violations and was habitable as it was.
If owners wish to upgrade properties that are currently inhabited by tenants, they can still do so and recover costs through capital improvement rent increases.
As it currently stands, this loophole is merely used as a tool to displace tenants. The substantial rehab clause is not being used how it was intended to. This loophole needs to be closed, immediately.
The truth of the matter is that landlords have a huge advantage over tenants both financially and legally.
Closing this loophole means that our teachers, volunteers, community workers, elderly assistants, and countless others will be able to stay in the communities that they serve. Let’s make the playing field a little more fair for those that need it most.