Duncan

I.

FACTUAL AND PROCEDURAL

BACKGROUND

Duncan moved into a two-bedroom unit in a five-unit building on Hill Street in San Francisco in early 1994. Under his lease, he was responsible for gas and electric, and the landlord was responsible for water and garbage services. He had access to a parking space behind the building, and soon

1 after he moved in he was also given access to a storage space where he could keep his bicycle and other items. Duncan’s wife Mendoza moved into the unit in 2010, and they lived together with their daughter. Duncan never missed a rent payment and was never late with his rent. Duncan’s unit was subject to San Francisco’s rent-control ordinance, meaning his rent could be raised a maximum of around 1.9 percent per year and in fact was raised around 1.5 percent per year. During his tenancy, the maximum that stabilized rent could be increased was a total of 31 percent, whereas the market rent for a two-bedroom, one-bath unit in San Francisco increased by 254 percent. In late May 2014, Duncan was informed that the building was going to be sold. At that time, he was paying $1,261.85 in monthly rent. Appellant Zoriall LLC purchased the building for $2.5…