Citations
- 192 Cal. App. 4th 1263
Full opinion text
Opinion
BANKE, J.
I. Introduction
Appellants Norman T. Larson, San Francisco Apartment Association, San Francisco Association of Realtors, Coalition for Better Housing, Round Hill Pacific, and John Zanghi (appellants) challenge provisions of Proposition M, a voter-approved initiative amending San Francisco’s Residential Rent Stabilization and Arbitration Ordinance (hereafter, the Rent Ordinance). Proposition M augmented the antiharassment provisions of the ordinance by expanding the definition of “decrease in [housing] services” to include a list of “bad faith” acts by landlords and their agents—ranging from violating any state or local antidiscrimination law, to failing to cash a rent check within 30 days, to interfering with a tenant’s right to privacy. Upon finding any such harassment and thereby a “decrease in [housing] services,” the San Francisco Rent Board (Board) can order a reduction in rent. By how much and for how long is not specified in the proposition, nor are any criteria provided for making such determinations. Proposition M also added an attorney fees provision to the Rent Ordinance, mandating an award of fees to a prevailing tenant in an unlawful detainer case brought under state law.
The trial court upheld the decrease in housing services provisions of Proposition M, except for one phrase which is no longer at issue, but invalidated the attorney fees provision. Appellants appeal as to the decrease in housing services provisions of the proposition. The City and County of San Francisco (City) cross-appeals as to the attorney fees provision. We reverse, in part, and affirm, in part.
II. Factual and Procedural Background
In November 2008, San Francisco voters approved Proposition M, an initiative measure that amended the City’s Rent Ordinance (S.F. Admin. Code, § 37.1 et seq.). The voter materials stated the amendments were necessary to ensure property owners do not abuse their statutory rights under the Costa-Hawkins Rental Housing Act (hereafter Costa-Hawkins Act; Civ. Code, § 1954.50 et seq.), which was enacted in 1995, to raise rent to market rates on vacated units. The voter materials described several reports of harassing conduct aimed at getting tenants to move.
Prior to the passage of Proposition M, the City’s Rent Ordinance defined “housing services” as follows: “services provided by the landlord connected with the use or occupancy of a rental unit including, but not limited to: repairs, replacement, maintenance; painting; light; heat; water; elevator service; laundry facilities and privileges; janitor service; refuse removal; furnishings; telephone; parking; rights permitted the tenant by agreement, including the right to have a specific number of occupants . . . and any other benefits, privileges or facilities.” (Former § 37, subd. (g).)
Proposition M added to this definition of “Housing Services,” the “quiet enjoyment of the premises, without harassment by the landlord as provided in Section 10B.” (Underscoring omitted; see § 37.2, subd. (g).)
New section 37.10B lists more than a dozen prohibited acts of “harassment.” It provides: “No landlord, and no agent, contractor, subcontractor or employee of the landlord, shall, do any of the following, bad faith or with ulterior motive or without honest intent. [