S.F. Admin. Code ch. 37 § 37.12
Transitional Provision (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 fifteen (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 established a transitional framework for small owner-occupied buildings of four units or fewer that lost their exemption from the Rent Ordinance. Under this provision, the lawful base rent for these newly covered units was anchored to whatever rent was in effect on May 1, 1994, and any amounts collected above that figure after that date were required to be returned to tenants by December 15, 1994. The Rent Board was also directed to notify landlords of the change, and landlords were required to pass that notice along to their tenants within fifteen days of receiving it.
Plain English — not legal advice.
Operators of small owner-occupied buildings that became subject to Chapter 37 coverage under § 37.12 were expected to identify the May 1, 1994 rent as the controlling base rent for each newly covered unit and to calculate whether any amounts collected after that date exceeded that figure. Compliant landlords issued refunds of any excess rent to tenants—including those who had already vacated—no later than December 15, 1994. Upon receiving the Rent Board's notice about the repeal of the owner-occupancy exemption, landlords were responsible for distributing a copy to each newly covered unit within fifteen days, using mail, personal delivery, or placement under the primary entrance door.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 37.12, tenants living in newly covered units—those in owner-occupied buildings of four units or fewer that came under the Rent Ordinance after the repeal of the owner-occupancy exemption—had a right to a refund of any rent paid above the May 1, 1994 base rent level, and this right extended even to tenants who had moved out before the effective date of coverage. If a landlord failed to issue that refund by December 15, 1994, the provision recognized several general enforcement paths, including deducting the owed amount from future rent, bringing a civil action under Section 37.11A, or pursuing other available remedies. Tenants with questions about whether this transitional provision affected their situation may find it useful to contact the San Francisco Rent Board or a local 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.
Generated September 9, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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