Da Vinci Group v. San Francisco Residential Rent Stabilization & Arbitration Board

In this case we hold a commercial warehouse built in 1905, used residentially since 1980, subsequently renovated and granted a certificate of occupancy in 1986, does not come within the San Francisco Residential Rent Stabilization and Arbitration Ordinance’s “new construction” or “substantial rehabilitation” exemptions. In addition we hold the Ordinance does not authorize the rent board to award rebates of past overpayments based on null and void rent increases.

Landlord Da Vinci Group appeals from an order denying its petition for writ of mandate and thereby affirming the decision of the San Francisco Residential Rent Stabilization and Arbitration Board that real property located at 731 Florida Street is not exempt from the Residential Rent Stabilization and Arbitration Ordinance (Ordinance) (S.F. Admin. Code, ch. 37), and that tenant William McDonald is entitled to a refund of rent overpayments.

Based on a finding that the City and County of San Francisco was suffering from a shortage of decent, safe, sanitary, affordable housing (§ 37.1, subds. (b)(1) & (2)), the Ordinance imposed rent increase limitations (§ 37.3, subd. (a)) on tenants occupying all residential…