SFAR Files Litigation on Ellis Act Fees

The San Francisco Association of REALTORS® (SFAR) filed a lawsuit in coordination with San Francisco Apartment Association, Coalition for Better Housing, and Pacific Legal Foundation challenging the recent change in the amount of tenant relocation fees as authorized by the San Francisco Board of Supervisors. SAMCAR, in coordination with SFAR, also opposed the amendments when the issue initially came before the Supervisors.

The litigation challenges Supervisor David Campos' Ellis Act ordinance which increases the relocation fee property owners have to pay a tenant when utilizing the Ellis Act. The change guarantees that tenants could no longer be evicted under the Ellis Act without getting paid large lump sums by property owners; that amount of money being the difference between a tenant's current rent and two years' rent in a similar, market-rate apartment in the same neighborhood. The Pacific Legal Foundation, in commenting on the new Ellis Act ordinance, noted it "requires rental property owners to pay their tenants oppressive and unconstitutional sums of money before the owners can regain personal use of their property."