October 21, 2014

Court Kills SF’s New Tenant Payment Law

By Court Kills SF’s New Tenant Payment Law

A federal judge has struck down a San Francisco law requiring property owners to pay massive sums to tenants before leaving the rental business as an unconstitutional “taking.”

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Levin v. City and County of San Francisco

Dan and Maria Levin live in the upstairs unit of their two-story home in San Francisco, California. They would like to use the lower unit for friends and family, but a city ordinance required them to pay their tenant $118,000 to withdraw the unit from the rental market. This amount represents the difference between the tenant’s existing, rent-controlled rate and the cost of acquiring a comparable unit at open market rates, for two years. Representing the Levins and others, PLF successfully sued to strike down this ordinance as an unconstitutional taking in violation of the Fifth Amendment and violation of California’s Ellis Act, which guarantees to property owners the right to take property off the rental market.

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