12 Hill Street - Notice of Decision

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  • 7/24/2019 12 Hill Street - Notice of Decision

    1/4

    ~~

    Pa

    ~

    COUlylfO~

    U

    Z

    x

    o

    ~bed,

    o~t iO

    SAN

    .FRANCISCO

    L NNING

    DEP RTMENT

    1 6 5 0

    M i s s i

    September

    10,

    015

    S u i t e

    4 0 0

    Sa n

    F r a n c i s

    C

    A

    9 4 1 0 3 -

    P

    rovenzano-Maloney

    Trust

    R e c e p t i o n :

    1

    015 South Van

    ess Avenue

    4 1 5 . 5 5 8 . 6

    S

    an

    Francisco,

    CA

    4110

    F a x :

    4

    1 5 . 5 5 8 . 6

    N

    OTICE

    OF DECISION

    n

    f o r m a t i o n

    4

    1 5 . 5 5 8 . 6

    S

    F

    dministrative Code hapter41A

    Short

    Term esidential Rental

    S

    i t e

    Address:

    1 2

    i l l

    S t r e e t

    A

    s s e s s o r s Block/Lot: 3617/046

    Z

    oning

    i s t r i c t :

    RH 3 R e s i d e n t i a l - House, hree Family) oning i s t r i c t

    omplaint

    Number:

    2015-008003ENF

    H

    earing

    O f f i c e r : Adrian C .

    utra,

    415) 75-9079 or

    [email protected]~

    DE C I S I O N

    T

    he Directof

    appointed

    hearing o f f i c e r , Adrian C. Putra, has determined t h a t Provenzano

    -Maloney

    T

    r u s t , the

    owners

    of 1 2 i l l

    S t r e e t

    were

    n v i o l a t i o n of

    the Administrative

    Code

    hapter

    41A

    o r i l l e g a l l y

    o

    f f e r i n g

    two

    welling

    u n i t s

    f o r rent

    as a o u r i s t

    or

    Transient use

    a . k . a .

    short-term

    r e n t a l ) . The e t a i l s

    of

    t

    he

    i o l a t i o n

    and

    d e c i s i o n are discussed

    below.

    T

    h i s decision

    s based o n

    the n t i r e t y of h e record before

    the hearing o f f i c e r ,

    including

    but not i m i t e d to

    t

    estimony of

    witnesses

    and

    the responsible

    party

    and

    information

    submitted by

    Planning Department

    s

    t a f f , the

    responsible

    p a r t y / i e s , an

    d

    t h e r

    w i t n e s s e s . The

    record

    may be found a t 1650

    Mission

    S t r e e t ,

    S

    u i t e

    400, San F r a n c i s c o . Although f a c t u a l information from

    the

    record

    i s

    summarized

    below,

    t h i s

    d

    e c i s i o n

    i s

    based on the record a s a whole.

    DESCRIPTION O F I O L A T I O N ;

    T

    he

    s u b j e c t

    property i s a two-story

    building c ontaining seven- u n i t

    dwelling

    u n i t s .

    The Planning

    Department received a complaint

    on June

    24, 2015, a l l e g i n g t h a t

    dwelling

    u n i t s a t 1 2 H i l l S t r e e t a r e

    o

    p e r a t i n g as unauthorized

    short-term

    r e s i d e n t i a l r e n t a l s ( a . k . a .

    Tourist

    or

    Transient

    s e ) .

    U

    NLAWFUL CONVERSION

    hapter

    41A

    of

    the San Francisco Administrative Code p r o h i b i t s the o f f e r i n g

    of

    r e s i d e n t i a l u n i t s

    f o r

    T

    o u r i s t

    or

    Transient

    use

    which

    i s

    a

    r e n t a l fo r

    l e s s than 30

    days), unless

    the u n i t s

    are

    r e g i s t e r e d

    on

    he

    w

    w w . s f p l a n n i n g . o r g

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    12

    i l l

    S t r e e t

    Complaint No. 015-008003ENF

    Chapter41A otice of ecision

    S

    eptember

    10,

    015

    S

    hort-term R e s i d e n t i a l Rental e g i s t r y . Under Administrative Code e c t i o n

    41A.6,

    f the

    Hearing

    O f f i c e r

    d

    etermines h a t a v i o l a t i o n

    has

    occurred, n

    administrative

    penalty h a l l

    be

    assessed

    as o l l o w s :

    1. For the

    i n i t i a l

    v i o l a t i o n , not more than four tunes the standard hourly

    a d m i n i s t r a t i v e

    r a t e

    of

    $

    121.00

    o r each unlawfully

    converted

    u n i t , or o r each d e n t i f i e d f a i l u r e

    of

    a

    Hosting Platform to

    c

    omply

    with

    the requirements of subsection

    g ) ( 4 ) ,

    per

    day

    r

    om

    the

    n o t i c e

    of

    Complaint

    u n t i l

    s

    u c h time as

    the

    unlawful c t i v i t y

    t e r m i n a t e s ;

    2

    . For

    the second

    v i o l a t i o n

    by

    the same

    Owner(s),

    usiness

    E n t i t y ,

    or

    Hosting

    Platform,

    not

    more

    th an

    eight

    times the standard

    hourly administrative a t e

    of

    121.00

    o r

    each unlawfully converted

    un i t ,

    or f o r

    each

    i d e n t i f i e d f a i l u r e

    of

    a Hosting Platform

    to

    comply with

    the

    requirements

    of

    s

    ubsection g ) ( 4 ) ,

    per day

    from the

    day

    the

    unlawful a c t i v i t y

    co m m en ced u n t i l such time

    as the

    unlawful c t i v i t y t e r m i n a t e s ; and

    3

    .

    For the t h i r d and

    any

    subsequent v i o l a t i o n

    by

    the

    s a m e

    Owner(s), Business E n t i t y ,

    or Hosting

    P

    latform,

    not

    mor e than twelve times

    the

    standard hourly administrative a t e

    of

    121.00 o r each

    unlawfully converted

    unit

    or

    o r

    each d e n t i f i e d f a i l u r e of a Hosting Platform t o c ompl y

    with

    th e

    requirements of subsection g ) ( 4 ) per day rom the day the unlawful

    a c t i v i t y

    co m m en ced

    u n t i l

    s

    u c h

    time

    as the

    unlawful

    c t i v i t y

    t e r m i n a t e s .

    COMPLAINT

    A N D

    SUPPORTING DOCUMENTS

    O

    n

    June

    24, 2015, Planning

    Department

    s t a f f

    received

    a complaint t h a t dwelling u n i t s a t the s u b j e c t

    property

    w e r e

    operating

    as

    an unauthorized short=term r e s i d e n t i a l r e n t a l s . S t a f f found t h a t t w o n i t s a t

    t

    he

    property were

    f f e r e d

    as

    hort

    term e n t a l s

    on Airbnb www.airbnb.com),

    N

    OTICE O F COMPLAINT

    A N D

    A P P A R ENT VIOLATION

    O

    n

    une

    30, 2015,

    t a f f

    i s s u e s a Notice

    of

    Complaint o the property

    owne r

    by e r t i f i e d and

    non

    - c e r t i f i e d

    m

    a i l .

    On uly 1, 015,

    t a f f

    posts a o t i c e a t the u b j e c t

    property

    o t i f y i n g

    the owners

    of

    the hearing.

    ADMINISTRATIVE HEARING

    O

    n

    A u g u s t

    12, 2015, the hearing o f f i c e r

    convened

    the

    a d m i n i s t r a t i v e hearing.

    All t e s t i f y i n g

    witnesses

    w

    ere s w o r n in and

    he hearing

    was

    udio recorded.

    The

    hearing

    was

    ttended by the

    ollowing

    people:

    r

    drian

    utra,

    hearing f f i c e r

    s. aura Lynch, t a f f planner

    r

    a r c

    rovenzano,

    roperty

    o w n er

    M

    .

    Lynch,

    t a f f

    planner

    gave

    the following testimony:

    n

    une

    25,

    015,

    t a f f

    l o c a t e d

    a c t i v e short

    term

    e n t a l

    l i s t i n g s

    f o r

    u n i t s

    a t the property on Airbnb.

    n July 2, 2015,

    s t a f f

    found t h a t the Airbnb l i s t i n g s have been modified to

    s t a t e

    a

    31 day

    m

    inimum

    t a y ;

    however

    the

    body of

    the i s t i n g s s t l l provided a

    d a i l y

    and

    weekly a t e with th e

    f

    ollowing

    statement:

    I f

    y o u

    are i n t e r e s t e d

    in

    staying

    l e s s

    than 3

    ights in

    a s l o t t h a t s h o w s

    a v a i l a b i l i t y - Please send u s a message by

    entering

    d i f f e r e n t dates and a message.

    n uly

    3,

    015,

    t a f f

    found

    h a t the i s t i n g s

    have

    been removed from Airbnb.

    M

    . Provenzano,

    d e n t i f i e d

    himself

    as one of the property owners and gave the

    following

    testimony:

    S A N

    FRANCISCO

    L NNINGDEP RTMENT

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    12

    i l l

    Street

    Complaint No.

    015-008003ENF

    Chapter

    41A Notice of Decision

    S

    e p t e m b e r

    10,

    2015

    he

    two

    n i t s l i s t e d as short-te rm r e n t a l s

    on

    Airbnb w e r e managed

    by

    his

    wife who

    was not

    p

    r e s e n t ) , who s

    a l s o

    an

    owner f the

    property.

    ne of the

    units

    i s

    vacant

    and

    was

    f f e r e d

    as

    a

    short-term

    r e n t a l a f t e r

    the tenants

    moved out,

    w

    h i l e the

    other

    unit o f f e r e d for

    short-term

    r e n t a l i s tenant

    occupied, and was

    ffered on Airbnb

    w

    i t h

    the

    e n a n t s

    permission

    to

    help cover

    his

    e n t .

    he

    ddre ss of the unit

    i d e n t i f i e d

    as Kevin') ccupied

    by tenant

    s 12 2

    H i l l S t r e e t , Unit

    1.

    he ddress

    of

    the

    vacant unit

    s

    12 i l l S t r e e t ,

    Unit A, hich according

    to

    the own e r

    s

    currently

    u

    ndergoing

    renovations and w i l l be occupied by

    his

    mother.

    POS T

    -HEARING SUBMIS SION

    M. Carrie Maloney,

    property owne r,

    ubmitted

    additional information

    on A u g u s t 24,

    2015.

    ummary

    of

    he

    submittal

    s below:

    a r t i a l

    screenshots f r o m Airbnb showing

    that h e i r two i s t i n g s

    have

    b een

    deactivated f rom he

    w

    e b s i t e .

    ecord

    of

    completed transactions

    f o r the

    period

    f r o m

    July of

    2015

    to

    D e c e m b e r of

    2015,

    s

    howing

    that

    both

    units

    w e r e reserved f r o m

    J u n e 30,

    017

    o

    July 7,

    015.

    M.

    Lynch went

    on

    a s i t e v i s i t

    of

    th e s u b j e c t

    property

    on A u g u s t

    27,

    2015,

    to m e e t

    with

    th e

    property

    owner and inspect the tw o u n i t s previously l i s t e d

    on

    Airbnb.

    According

    to Ms.

    ynch,

    during

    her

    s i t e

    vi s i t

    she

    fo und the

    unit which

    the

    owner

    dvised w i l l be occupied

    by

    is

    m o t h e r

    to be completely

    u nder

    c

    onstruction. When nspecting the second u n i t , which

    the

    own e r claimed i s occupied by a tenant; Ms.

    Lynch reported

    that

    she

    observed

    t h a t :

    he

    roperty

    own e r t a t e d that

    the unit s rented o u t u l l time

    by a

    resident

    and h i s

    g i r l f r i e n d

    an

    d

    t

    hat they

    moved

    n to the unit

    in October 2014.

    The

    fridge was mpty.

    he l o s e t s did

    not

    have any clothes

    in t h e m .

    he ed room did not

    appear

    to

    be occupied.

    h e room

    ontained

    a

    number

    f items p i l e d

    around

    the room o r a baby and

    ooked as f i t

    could

    be

    sed

    for s t o r a g e .

    hen sked about

    providing

    a e a s e ,

    proving

    a 30 day

    tenant, he propert y owner

    esponded that

    h

    e

    did

    not believe there

    was

    lease ag reement or

    the

    u n i t .

    M.

    Provenzano

    submitted on

    e p t e m b e r

    2,

    2015, a

    copy

    of

    the

    lease

    for

    his

    tenant who

    he i d e n t i f i e d as

    evin

    in

    his

    testimony

    during the Administrative Hearing

    h a t , t o o k

    place on u g u s t

    12,

    015.

    F

    INDINGS

    Based

    on

    he

    review of the record as a

    whole,

    he

    hearing

    o f f i c e r

    finds

    as

    follows:

    1.

    That

    two

    dwelling

    units at

    th e u b j e c t

    property

    w e r e

    i o l a t i o n

    of

    operating

    as an l l e g a l Tourist or

    T

    ransient

    u s e n t i l at

    e a s t

    Ju ly 7, 015.

    2

    . As of July 3, 2015, the

    two

    dwelling

    units

    at the

    property

    w e r e

    no

    longer offered for

    t o u r i s t

    or

    t

    ransient

    use based

    on

    he Airbnb i s t i n g s for the

    property

    being

    r emov ed.

    SAN FRANCISCO

    P

    NNING

    DEP RTMENT

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    12 i l l S t r e e t

    omplaint No. 015-008003ENF

    Chapter

    41A Notice of Decision

    S

    eptember

    10,

    015

    3

    .

    However, hort

    term

    r e n t a l

    a c t i v i t y

    continued

    at

    both

    units u n t i l

    July 7, 2015,

    based

    on

    a record

    o

    f

    completed t r a n s a c t i o n s f o r

    the

    period from July of 2015 to

    December

    of

    2015, ubmitted by Ms.

    loney showing that both

    units

    were reserved from June

    30,

    017 o July 7,

    015.

    C

    ONCLUSION

    AND

    ORDER

    B

    ased

    on

    he above findings

    and

    the

    evidence in

    the record

    as a whole,

    he hearing

    o f f i c e r

    determines

    that

    t

    wo

    welling units at

    the

    property were

    operating

    as a Tourist or Transient use through July 7,

    2015

    in

    v

    i o l a t i o n

    of

    Administrative Code

    hapter

    41A.

    Because h i s

    i s

    an n i t i a l v i o l a t i o n ,

    the hearing

    o f f i c e r

    may

    assess

    administrative

    p e n a l t i e s

    f r

    om

    the

    date of

    the

    Notice

    of

    Complaint (here June 30,

    2015)

    n t i l th e

    d

    a t e the

    v i o l a t i o n

    i s cured (here July 7,

    2015)

    on

    both

    a per diem and per unit

    b a s i s .

    T hus ,

    by

    h i s

    d

    etermination

    the hearing

    o f f i c e r

    assesses administrative p e n a l t i e s

    against

    the

    property

    owners for a

    o t a l

    o

    f

    16

    d a y s

    three

    days

    per

    each

    unit)

    at a a t e of $484 per day. Accordingly,

    administrative p e n a l t i e s

    for

    the

    t o t a l

    amount of

    7 , 7 4 4 . 0 0 ,

    i s now

    due

    o

    the

    Planning

    Department.

    Please submit

    a

    check for

    th e

    t

    o t a l

    amount f

    7 , 7 4 4 . 0 0 ,

    payable to

    Planning

    Department Code

    nforcement Fund immediately.

    Si n c e r e l y ,

    drian

    C .

    utra

    Haring Officer

    :

    Laura

    Lynch, lanner,

    San Francisco

    Planning

    Department

    S

    AN FRANCISCO

    P

    AlJNING

    DEP RTMENT