S.F. Admin. Code ch. 37 § 37.12
Transitional Provisions (San Francisco Rent Ordinance)
Operative Text
This Section is enacted in order to assure the smooth transition to coverage under this Chapter of owner-occupied buildings containing four units or less, as a result of the repeal of the exemption for owner-occupied units. The provisions of this Section apply only to such units. The units are referred to as "newly covered units" in this Section. The term "effective date of coverage" as used herein means the effective date of the repeal of the owner occupancy exemption. (a) The initial base rent for all newly covered units shall be the rent that was in effect for the rental unit on May 1, 1994. If no rent was in effect for the newly covered unit on May 1, 1994, the initial base rent shall be the first rent in effect after that date. (b) All rents paid after May 1, 1994, in excess of the initial base rent under Section 37.12 (a), shall be refunded to the tenant no later than December 15, 1994. If the landlord fails to refund the excess rent by December 15, 1994, the tenant may deduct the amount of the refund from future rent payments, or bring a civil action under Section 37.11A , or exercise any other existing remedies. All tenants residing in newly covered units are entitled to this refund, even if the tenant vacated before the effective date of coverage of the newly covered units. (c) As soon as practical after the effective date of coverage, the Board shall mail to the landlords of record of newly covered units a notice advising of the repeal of the exemption for owner-occupied buildings containing four units or less. The notice shall include information deemed appropriate by the Board to explain the requirements and effects of the change in the law. It shall be the responsibility of landlords to distribute a copy of said notice to all newly covered units within 15 days of the date the Board mails such notice to landlords. Distribution shall be by mail properly addressed to a tenant of the newly covered unit, or by personal delivery to a tenant of the newly covered unit, or by placing said notice under the door of the primary entrance to the newly covered unit.
Section 37.12 of the San Francisco Administrative Code Chapter 37 establishes transitional rules for small owner-occupied buildings of four units or fewer that were newly brought under rent stabilization coverage after the repeal of the owner-occupancy exemption. The provision sets May 1, 1994 as the anchor date for determining the initial base rent for these newly covered units, and requires that any rent collected above that baseline after that date be refunded to tenants by December 15, 1994. The San Francisco Rent Stabilization and Arbitration Board is directed to notify landlords of the change, and landlords are in turn required to distribute that notice to tenants within 15 days of receiving it.
Plain English — not legal advice.
Under S.F. Admin. Code § 37.12, operators of small owner-occupied buildings that became newly covered units are generally expected to have identified the applicable base rent as of May 1, 1994, calculated any excess amounts collected after that date, and issued refunds to tenants by the December 15, 1994 deadline. Compliant landlords also distributed the Board's official notice to each newly covered unit within 15 days of receiving it, using mail, personal delivery, or placement under the primary entrance door. Although the refund deadline has long passed, records of compliance with § 37.12 may remain relevant in disputes concerning the lawful base rent for these units.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 37.12 of S.F. Admin. Code Chapter 37 established that tenants in newly covered units—those in small owner-occupied buildings brought under rent stabilization after the exemption repeal—were entitled to a refund of any rent paid above the May 1, 1994 base rent level, and this right applied even to tenants who had already vacated before coverage took effect. If a landlord failed to issue the required refund by December 15, 1994, the provision allowed tenants to deduct the owed amount from future rent, pursue a civil action under Section 37.11A, or use other available remedies. Tenants with questions about how § 37.12 affects their current base rent or rental history may wish to contact the San Francisco Rent Stabilization and Arbitration Board or a tenant-rights organization for general information.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
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