4~P~9 COUlylfO~

U Z.1='~ ~

~ a''o .~.. 2

~bdSv. p~a'~`

SAN FRANCISCOPLANNING DEPARTMENT

September 10, 2015

Ana Schrank761 14~ AvenueSan Francisco, CA

1650 Mission St.Suite 400San Francisco,CA 94103-2479

Reception:415.558.6378

Fax:415.558.6409

NOTICE OF DECISION

SF Administrative Code Chapter 41A Short Term Residential Rental

Site Address: 759-761 14th Avenue

Assessors Block/Lot: 1657/009Zoning District: RH-2 (Residential- House, Two Family) Zoning District

Complaint Number: 12610_ENF

Hearing Officer: Adrian C. Putra, (415) 575-9079 or adrian.}~utra@sfgov.org

DECISION

PlanningInformation:415.558.6377

The Director's appointed hearing officer, Adrian C. Putra, has determined that Ana Schrank, owner of

759-61 14~ Street has violated Administrative Code Chapter 41A for illegally offering dwelling unit at 761

14th Avenue for rent as a Tourist or Transient use (a.k.a. short term rental). The details of the violation

and decision are discussed below.

This decision is based on the entirety of the record before the hearing officer, including but not limited to

testimony of witnesses and the responsible party and information submitted by Planning Department

staff, the responsible party/ies, and other witnesses. The record. may be found at 1650 Mission Street,

Suite 400, San Francisco. Although factual information from the record is summarized below, this

decision is based on the record as a whole.

DESCRIPTION OF VIOLATION

The subject property appears to be a three unit building (759 14~ Avenue, 759A 14~ Avenue, and 761 14~

Avenue). The Planning Department received a complaint on August 13, 2013, alleging that unauthorized

short term rental activity was occurring at the property.

UNLAWFUL CONVERSION

Chapter 41A of the San Francisco Administrative Code prohibits the offering of residential units for

Tourist or Transient use (which is a rental for less than 30 days), unless the units are registered on the

www.sfplanning,org

759-761 14~ Avenue Chapter 41A Notice of DecisionComplaint No. 12610_ENF September 10, 2015

Short-term Residential Rental Registry. Under Administrative Code Section. 41A.6, if the Hearing Officerdetermines that a violation has occurred, an administrative penalty shall be assessed as follows:

1. For the initial violation, not more than four times the standard hourly administrative rate of$121.00 for each unlawfully converted unit, or for each identified failure of a Hosting Platform tocomply with the requirements of subsection (g)(4), per day from the notice of Complaint untilsuch time as the unlawful activity terminates;

2. For the second violation by the same Owner(s), Business Entity, or Hosting Platform, not morethan eight times the standard hourly administrative rate of $121.00 for each unlawfully convertedunit, or for each identified failure of a Hosting Platform to comply with the requirements ofsubsection (g)(4), per day from the day the unlawful activity commenced until such time as theunlawful activity terminates; and

3. For the third and any subsequent violation by the same Owner(s), Business Entity, or HostingPlatform, not more than twelve times the standard hourly administrative rate of $121.00 for eachunlawfully converted unit or for each identified failure of a Hosting Platform to comply with therequirements of subsection (g)(4) per day. from the day the unlawful activity commenced untilsuch time as the unlawful activity terminates.

COMPLAINT AND SUPPORTING DOCUMENTS

On August 14, 2013, Planning Department staff received a complaint that unauthorized short-termresidential rental activity was occurring at the subject property. Planning Department staff investigatedthe complaint under Planning Code Section 176 and found that two out of the three units at the subjectproperty, were being offered as short-term rentals on a nightly or weekly basis through hosting platformwebsite VRBO (www.vrbo.com). Planning Department staff has worked to bring this property intocompliance utilizing the enforcement mechanisms under Planning Code Section 176 with no success.

On June 29, 2015, staff investigated the complaint under Administrative Code Section 41A and found oneonline listing on VRBO advertising two units in the building as one "entire unit" for short term rental.

NOTICE OF COMPLAINT AND APPARENT VIOLATIONOn June 30, 2015, s#aff issues a Notice of Complaint to the property owner by certified and non-certifiedmail

On July 1, 2015, staff posted the Notice of Complaint at the subject property notifying the owner of thehearing.

ADMINISTRATIVE HEARING

On August 12, 2015, the hearing officer convened the administrative hearing. All testifying witnesseswere sworn in and the hearing was audio recorded. The hearing was attended by the following people: Mr. Adrian Putra, hearing Officer Ms. Audrey Butkus, staff Planner Ms. Ana Schrank, property owner Mr. Fidel Gakuba, property owner

SAN FRANCISCO 2PLANNING DEPARTMENT

759-761 14~ Avenue Chapter 41A Notice of Decision

Complaint No. 12610_ENF September 10, 2015

Ms. Butkus, staff planner gave the following testimony: Between August 13, 2013 and until June 28, 2015, staff attempted to bring the property into

compliance utilizing the mechanism of Planning Code Section 176, which included issuing a

courtesy notice, issuing an Enforcement Notification, meeting with the property owner at the site

to explain the violation and necessary remedies for compliance, issuing a Notice of Violation and

Penalties letter, issuing multiple Notice of Penalties letters when the host become unresponsive to

staff's prior notices and attempts to contact. Throughout this time the listing for the property

offering two of the units for short-term stays remained active. The property owner had not

responded to staff's notices or attempts to contact for over one year.

On June 29, 2015, staff investigated the complaint under Administrative Code Section 41A and

found one online listing on VRBO advertising two units in the building as one "entire unit" for

short term rental. On July 11, 2015, staff found that the propert~s online listing on VRBO has been removed.

Ms. Schrank, property owner gave the following testimony: The dwelling unit at 761 14~ Avenue is owner-occupied and that they originally moved into the

unit in 2007. The dwelling unit at 759 14~ Avenue has either been vacant or tenant-occupied.

The bottom dwelling unit at 759A 14~ Avenue has had long-term tenants almost continuously.

Ms. Schrank was given a temporary assignment by her company a couple of years ago which

required her to spend an increasing amount of time in Atlanta. For the first eight months of her

assignment she traveled back and forth between San Francisco and Atlanta, and when this

became unsustainable .her family moved to Atlanta on a short term basis. Up until then her

children were enrolled in San Francisco schools and her husband worked in San Francisco.

As of January 1, 2015, her family moved back to 761 14~ Avenue, because Ms. Schrank's

temporary assignment had ended. The short term rentals only occurred in the unit at 761 14~ Avenue.

The unit at 759 14th Avenue is currently vacant. The VRBO listing discovered by staff on June 29, 2015 was only for the unit at 761 14th Avenue.

The listing for 761 14~ Avenue was automatically removed by VRBO, because the owners did not

plan on conducting future short term rentals and decided to let their current 12 month

subscription to list on VRBO to expire.

Additionally, Ms. Schrank presented the hearing officer with an online receipt of rental payment from her

tenant at 759A 14th Avenue.

POST-HEARING SUBMISSION

Ms. Schrank submitted additional information on August 14, 2015. A summary of the submittal is below:

A receipt dated July 9, 2014, for their 12-month subscription to list on VRBO, which has since

expired.A screen shot dated July 13, 2015, of their VRBO account showing that the order status to renew

their 12-month subscription is "Unpaid."

SAN FRANCISCO 3PLANNING DEPMTMENT

759-761 14th Avenue Chapter 41A Notice of DecisionComplaint No. 12610_ENF September 10, 2015

FINDINGS

Based on the review of the record as a whole, the hearing officer finds as follows:

1. That the property owners are currently occupying the dwelling at 761 14th Avenue.2. That the dwelling at 761 14~ Avenue was offered for Tourist or Transient use until July 10, 2015.3. 'That the online listing on VRBO for the dwelling at 761 14t" Avenue was removed as of July 11,

2015.4. That the dwelling at 759 14~ Avenue is currently vacant.5. That the dwelling at 759A 14~ Avenue is occupied by a tenant.

CONCLUSION AND ORDER

Based on the above findings and the evidence in the record as a whole, the hearing officer determines thatthe dwelling unit at 761 14~ Avenue was offered for Tourist or Transient through July 10, 2015 inviolation of Administrative Code Chapter 41A. Because this is an initial violation, the hearing officer mayassess administrative penalties from the date of the Notice of Complaint (here June 30, 2015) until thedate the violation is cured (here July 10, 2015) on both a per diem and per unit basis. Thus, by thisdetermination the hearing officer assesses administrative penalties against the property owners for a totalof 11 days at a rate of $484 per day. Accordingly, administrative penalties for the total amount of$5,324.00, is now due to the Planning Department. Please submit'a check for the total amount of$5,324.00, payable to "Planning Deparhnent Code Enforcement Fund" immediately. Please be awarethat curing the violation of Administrative Code Chapter 41A does not absolve the owner of accruedpenalties for the violation assessed when enforced under Planning Code Section 176.

Sincerely,

Adrian C. PutraHearing Officer

Cc: Audrey Butkus, Planner, Office of Short Term Rentals

SAN FRANCISCO ~ 4PLANNING DEPARTMENT