San Francisco County Municipal Code Ch. 48 Rental Subsidy Program for Low-Income Families

Sec. 48.1. Findings.

Sec. 48.2. Definitions. Sec. 48.3. Administration of Program. Sec. 48.4. Local Homeless Coordinating Board Oversight. Sec. 48.5. Amount of Subsidy; Time Limits. Sec. 48.6. Limitation of Liability. Sec. 48.7. Severability.

The Board of Supervisors finds and declares the following: (a) The City and County of San Francisco is committed to providing permanent and stable housing for homeless families; and (b) According to the San Francisco Homeless Prenatal Program, there are at least 2000 homeless families living in San Francisco; and (c) There are currently approximately 1560 family members living in SRO hotels, including 760 children; and (d) Living in homeless shelters, SRO hotels and overcrowded conditions has severe negative impacts on the health and well-being of children, including serious and chronic health problems, developmental delays, mental health problems, academic failures, behavioral problems, and hunger and poor nutrition; and (e) The Homeless Family Service Redesign Workgroup published a report in July 2006, recommending the development of a rental subsidy program for homeless families with an initial goal of 300 subsidies in the first year. The report outlined the need for two types of subsidies: 1) a 1-2 year subsidy, (2) a need-based subsidy that would provide support and allow families to transition out as their income increased. The Board of Supervisors, through the budget process 2006, allocated funding to ensure that the need-based subsidy could be provided by the City, as the 1-2 year subsidy was already available to homeless families. A need-based subsidy program would strengthen San Francisco's continuum of homeless services; and (f) In 2006, the San Francisco Board of Supervisors appropriated money to the Human Services Agency (Ordinance Number 71-06) to fund a local housing subsidy that provided 300 families with a rental subsidy of $500 per month and assisted homeless families with permanent and stable housing; the Board of Supervisors then approved the subsidy in subsequent years; and (g) Under HSA's regulations, the current subsidies expire one year from the time the family began receiving the subsidy, with the possibility that the subsidy be extended up to two years; and (h) The current economic downturn has dramatically affected working families' ability to steadily increase their income by $6,000 annually; and (i) The Board of Supervisors recognizes that the current subsidy program does not meet the needs of the majority of extremely low- income families and that the City and County of San Francisco should make other efforts to provide services and support to this population. (Added by Ord. 229-09, File No. 090931, App. 11/10/2009)

For purposes of this Ordinance only, the following definitions apply: (a) "Household" means any person or persons who reside or intend to reside in the same housing unit. (b) "Rental Subsidy Program" means all of the City's general fund programs that provide ongoing subsidies to San Francisco families who need financial assistance to make their monthly payments for rental housing; provided, however, that the term "Rental Subsidy Program" shall not include the City's "First Avenues Program," which provides rental housing subsidies through the auspices of the Hamilton Family Center. (Added by Ord. 229-09, File No. 090931, App. 11/10/2009)

The San Francisco Human Services Agency (HSA) shall administer the Rental Subsidy Program for Low-Income Families ("Rental Subsidy Program"), which shall not include the City's "First Avenues Program," a program that provides rental housing subsidies through the auspices of the Hamilton Family Center. The Rental Subsidy Program shall be funded through the general fund, subject to the Annual Appropriations Ordinance. HSA shall adopt rules and regulations to implement the Rental Subsidy Program consistent with this ordinance. HSA shall ensure that contractors administering this program communicate with families eligible for the Rental Subsidy Program in the families' primary languages. In addition. HSA shall administer the program so that families who meet program eligibility requirements are served on a first-come, first-served basis until the total amount of money designated for this program in the Annual Appropriations Ordinance is gone. Families receiving a rental subsidy through the original program as administered by HSA prior to the effective date of this Ordinance shall be deemed to have applied for the Rental Subsidy Program and to have received a subsidy under the Rental Subsidy Program as of the date that they received their first rental subsidy from the City. (Added by Ord. 229-09, File No. 090931, App. 11/10/2009)

The Local Homeless Coordinating Board shall issue a report on the progress of the subsidy to the Board of Supervisors, Mayor and Human Services Agency two times a year, including the number of families served, length of time on subsidy, outcomes, number of unused slots, number of families seeking subsidies that were turned away, and recommendations in changes in policy, eligibility criteria for applicants, and other pertinent information. The Service Providers shall make best effort to take necessary corrective action in response to all client complaints internally within 30 days. After removing all personal information that could identify the client, the Service Provider or the client may forward the complaint to the Local Homeless Coordinating Board. Further resolved, the Controller shall report to the Board, within twelve months of the adoption of this ordinance, on the efficacy of the program, by surveying families and analyzing outcomes. (Added by Ord. 229-09, File No. 090931, App. 11/10/2009)

Subject to the fiscal and budgetary provisions of the Charter, the amount of the subsidy shall be based on the needs of the family. The length of the subsidy shall be based on a social economic service plan agreed upon mutually by the provider and the client, and may be extended for 12 months at a time up to 5 years, provided that the client continues to meet program requirements. (Added by Ord. 229-09, File No. 090931, App. 11/10/2009)

By adopting this Article, the City and County of San Francisco is assuming an undertaking only to promote the general welfare. It is not assuming, nor is it imposing on its officers and employees, an obligation or duty for breach of which it is liable in money damages or any other relief to any person who claims that such a breach proximately caused injury or damages, including but not limited to any and all claims by landlords or tenants affected by subsidies offered under this program. (Added by Ord. 229-09, File No. 090931, App. 11/10/2009)

If any section, subsection, clause, phrase or portion of this Article is for any reason held invalid or unconstitutional by any court or federal or state agency of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions thereof. (Added by Ord. 229-09, File No. 090931, App. 11/10/2009) CHAPTER 49:

SECURITY DEPOSITS FOR RESIDENTIAL RENTAL PROPERTY

Sec. 49.1. Security Deposit for Residential Rental Property Defined. Sec. 49.2. Payment of Interest on Security Deposits. Sec. 49.3. Remedies. Sec. 49.4. Waiver. Sec. 49.5. Severability.

As provided in Section 1950.5 of the California Civil Code, a security deposit is any payment, fee, deposit or charge including, but not limited to, any of the following: (1) The compensation of a landlord for a tenant's default in the payment of rent; (2) the repair of damages to the premises caused by the tenant; (3) the cleaning of the premises upon termination of the tenancy. (Added by Ord. No. 299-83, App. 6/3/83)

(a) A landlord who is subject to the provisions of Section 1950.5 of the California Civil Code shall pay simple interest on all security deposits held for at least one year for his/her tenants; provided, however, that this requirement shall not apply where the rent is assisted or subsidized by any government unit, agency or authority. (b) Interest shall begin accruing on September 1, 1983, or on whatever date the security deposit is received by the landlord after September 1, 1983, and shall accrue until the tenancy terminates. Beginning on September 1, 1984, or on any date thereafter upon which the security deposit has been held by the landlord for one year, and annually thereafter on the same month and day, a tenant shall be given the unpaid accrued interest in the form of ether a direct payment or a credit against the tenant's rent. The landlord shall choose between these two methods of payment. (c) Upon termination of tenancy, a tenant whose security deposit has been held for one year or more shall be entitled to a direct pro- rata payment of any unpaid accrued interest no later than two weeks after the tenant has vacated the premises; provided, however, that a landlord may retain any portion of the unpaid accrued interest, subject to the limitations and requirements set forth in Section 1950.5(e) of the California Civil Code, where the security deposit alone is insufficient to remedy tenant default in the payment of rent, to repair damages to the premises caused by the tenant, exclusive of ordinary wear and tear, or to clean such premises, if necessary, upon termination of the tenancy. (d) Nothing in this Chapter shall preclude a landlord from exercising his or her discretion in investing security deposits. (e) Notwithstanding the provisions of (a) through (c) above, where a landlord seeks reimbursement for the annual Residential Rent Stabilization and Arbitration fee as provided in Section 37A.6 of this Code, the landlord may deduct said fee from the next interest payment owed to the tenant pursuant to this Chapter. (f) The interest rate for interest payments required by this Chapter 49 shall be determined by the Residential Rent Stabilization and Arbitration Board (Rent Board), to be effective on March 1 of each year. (1) For March 1, 2003 and prior years, the Rent Board shall calculate the rate as of the immediately preceding December 31st according to the historical Federal Reserve Discount Window Borrowing Rate, using an average of the twelve most recent monthly rates (rounded to the nearest tenth) as posted by the Federal Reserve on the Federal Reserve Statistical Release internet site. (2) For March 1, 2004 through March 1, 2014, the Rent Board shall calculate the rate as of the immediately preceding December 31st according to the Federal Reserve 6-Month Certificate of Deposit rate, using an average of the twelve most recent monthly rates (rounded to the nearest tenth) as posted by the Federal Reserve on the Federal Reserve Statistical Release internet site. (3) For March 1, 2015 and each year thereafter, the Rent Board shall calculate the rate according to the annual average of the 90- Day AA Financial Commercial Paper Interest Rate (rounded to the nearest tenth) for the immediately preceding calendar year as published by the Federal Reserve. (g) The amount of interest due and payable by the landlord shall be the amount of the security deposit held by the landlord on the date the interest payment is due multiplied by either: (1) The interest rate in effect on the date the annual payment is due, if the payment is due under Section 49.2(b); or

(2) The interest rate in effect on the date the tenant vacates the unit, if the tenant is entitled to a pro-rata interest payment under Section 49.2(c). (Added by Ord. No. 299-83, App. 6/3/83; amended by Ord. 278-89, App. 8/2/89; Ord. 291-90, App. 8/1/90; Ord. 107-02, File No. 020296, App. 7/5/2002; Ord. 90-03, File No. 030221, App. 6/16/2003; Ord. 82-04, File No. 040101, App. 5/20/2004; Ord. 233-14 , File No. 140970, App. 11/26/2014, Eff. 12/26/2014)

The rights, obligations and remedies of tenants and landlords under this Chapter shall be as provided in Subsections (f), (g), (h) and (j) of Section 1950.5 of the California Civil Code. (Added by Ord. No. 299-83, App. 6/3/83)

Any waiver by a tenant of rights under this Chapter shall be void as contrary to public policy. (Added by Ord. No. 299-83, App. 6/3/83)

If any provision or clause of this Chapter or the application thereof to any person or circumstance is held to be unconstitutional or to be otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other Chapter provisions, and clauses of this Chapter are declared to be severable. (Added by Ord. No. 299-83, App. 6/3/83)