California Supreme Court denies review of universal relocation assistance for tenants evicted under the Ellis Act

From the Office of City Attorney

June 21, 2006

SAN FRANCISCO -- The California Supreme Court late this afternoon denied a petition for review in a Court of Appeal decision from February that reinstated a City ordinance requiring landlords to offer relocation assistance to tenants evicted under the state Ellis Act, regardless of the tenant's income. A previous trial court decision in April 2005 found that the City's "universal relocation" ordinance was preempted by state law. In denying review, the high court lets stand an appellate court ruling holding that the California Legislature's 2003 amendments to the Ellis Act were intended to allow local policymakers more flexibility in mitigating adverse impacts of Ellis Act evictions, including universal relocation programs. That court further found that plaintiffs in this case had failed to demonstrate that the ordinance imposed a prohibitive barrier to a landlord's decision to go out of business.

Responding to changes in California law, San Francisco enacted an ordinance sponsored by Board of Supervisors President Aaron Peskin in January 2005 (Ordinance No. 21-05 (2005)), which replaced the City's means-tested program with a requirement that all tenants evicted pursuant to the Ellis Act-not merely those with low-incomes-must receive $4,500 in relocation assistance, with a cap of $13,500 per household.

"We're gratified that the high court let stand the ruling that reinstated San Francisco's universal relocation assistance program," said City Attorney Dennis Herrera. "This is an important outcome for San Francisco tenants, and vindication for our office's interpretation of state law. It is up to San Francisco's policymakers-not the courts-to decide how best to alleviate the plight of tenants evicted under the Ellis Act, and I applaud Board President Aaron Peskin for his leadership on this important issue."

"Our law is a reasonable step that provides a basic level of protection for tenants who are subject to the increasing epidemic of Ellis Act evictions," said Board of Supervisors President Aaron Peskin. "The City Attorney's office should be commended for their work on behalf of San Francisco tenants."

The case is Pieri et al. v. City and County of San Francisco et al., California Supreme Court, Case No. S142897.

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