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Merger and Demolition of Rental Units
Update on Notice Period & Relocation Benefits: State law providing for a 60 day notice for no-fault evictions was adopted in 2006 to be effective for all eviction notices issued on or after January 1, 2007 (until then they remain 30 day notices). In addition, Prop H, passed by the voters, provides relocation benefits to tenants evicted for demolition/merger. The amounts are $4,500 per tenant, plus an additional; $3,000 for senior or disabled tenants or households with children (under 18).
Many tenants are being evicted these days due to demolitions and mergers. Landlords can demolish apartment buildings and then rebuild a new one—not covered by rent control. Or, wealthy landowners are buying multi-unit buildings and turning them into single family homes—rather, mansions. Tenants can fight both the evictions which make the demolitions or mergers possible and can fight the actual merger itself.
Mergers and demolition evictions are (or should be) done under eviction just cause 37.9(a)(10), sometimes landlords will try to use other just causes, though. But a landlord must first get the permits to merge the units first or their ability to do the eviction legally is significantly impaired.
The Planning Commission holds mandatory "Discretionary Review" of all building permits regarding the demolition and/or merger of rental units. Tenants who face eviction due to such mergers will now be better able to contest the issuance of such permits. See Planning Department's Dwelling Unit Merger Policy.
Demolitions occur when a landlord seeks to demolish an entire apartment building or, sometimes, just an individual unit (usually when that unit is illegal). Mergers occur when a landlord combines two or more units into one larger unit (the lost unit is technically a demolition). They often occur when a landlord-owner combines the units for personal use. Besides creating a larger, more desirable apartment, the landlord can sometimes evict a longtime tenant. A growing trend in San Francisco mergers is the conversion of entire apartment buildings into large single family homes.
Demolitions and Mergers can be done legally by obtaining approval from the City Planning Commission and Department of Building Inspection or can be done illegally without permits and official sanction. Either way, a tenant should, and can, fight a merger.
To merge units, a landlord must first have a just cause to evict, assuming the unit is under rent control and then, in most cases, must obtain permits from the Planning Department for the necessary construction.
To effect a merger, landlords may try to evict tenants in two units for the purposes of an “owner move in”. If the landlord is already living in the building, he or she may try to evict tenants in another unit. Generally, an OMI eviction will not be allowed for such a merger unless the landlord obtains permits to physically merge the two units, as opposed to claiming they simply want to use two separate units. On other occasions, landlords may seek to evict tenants under SF Rent Ordinance section 37.(a)(10) for removal of a single unit from “all housing use.” Most mergers, however, seek to maintain the tenant’s unit as a housing use, (e.g., as part of a larger apartment) and the eviction can be fought this way.
Tenants should request a Block Book Notation from the Planning Department if they think the landlord might be requesting any permits that could affect them. It costs $26 per year. This will give advance warning to tenants. If the landlord applies for a permit, the Planning Commission holds a mandatory discretionary review.
The Planning Commission will review the merger application based on
•Consistency with Planning Code Section 101.1 (General Plan Priorities)
•Objective and Policies of the Residence Element Plan
•Discretionary Review Criteria:
–Whether removal of unit will be detrimental to the supply of housing and whether or not any hardships imposed by displacement of tenants will be mitigated (e.g., relocation benefits)
–Whether removal of the unit will bring the building closer to the prevailing dwelling unit density in the neighborhood.
–Whether removal of unit will correct design or functional deficiencies.
–Whether removal is necessary to preserve landmark status
–Whether the units are intended for owner-occupancyThe main argument tenants have is that the merger will remove affordable housing from the rental housing stock. To win at the Planning Commission, it helps to organize, organize and politicize the case. If you lose there you can appeal to the Board of Permit Appeals. In both cases, organizing is very important, especially if you can organize neighbors (who may not care about the evictions but are concerned that the replacement building will adversely impact their views, the neighborhood character, etc.)
Planning Department Web Site
(Includes Planning Code and other applicable laws/regulations)
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