Apartment Rebate Coupon Violates Rent Control Laws

 

Rebate Coupon Scheme at Large San Francisco Apartment Complex Violates Rent Control Laws, Tenant Class Action Suit Charges

The Villas Parkmerced, San Francisco's largest apartment complex, allegedly uses rebate coupons to conceal the true base rent on apartments in an illegal effort to circumvent rent control, according to a lawsuit filed by plaintiff's firm Brayton Purcell on behalf of tenants in 3,456 units.

San Francisco, CA (PRWEB) October 16, 2006 -- Alleging a rebate coupon scheme used by one of the Bay Area’s largest apartment building owners is an effort to avoid San Francisco’s rent control laws, tenants of The Villas Parkmerced apartment complex filed a class action suit in San Francisco Superior Court to restore their rents to their legal maximums and for restitution of unlawful rent increases.

Plaintiff’s firm Brayton Purcell is representing the tenants in the case, titled Franklin v. The Villas Parkmerced, et.al (#CGC-06-456720).

According to the complaint, The Villas Parkmerced routinely uses a rebate coupon gimmick to obscure the true base rent charged tenants upon initial occupancy. Tenants sign leases that state a significantly higher rent price than what they actually pay, the complaint alleges, allowing Parkmerced to raise the rent 20%–30% after one year, when the laws of rent control only allow a 1%–2% increase.

The complaint alleges that this process violates San Francisco’s Rent Control Ordinance, which allows a landlord to raise the rent on a unit to market rate when it becomes vacant and a new tenant moves in. Then, once this new rent is determined, the rent is again controlled during this tenant’s occupancy.

“The case exposes Parkmerced’s illegal efforts to make an end–run around San Francisco’s rent control laws, which allow a landlord to set the rent on a vacant unit at any level, but strictly controls rent increases during an existing tenant’s occupancy” said Brayton Purcell attorney Peter Fredman. “The Villas Parkmerced’s rebate gimmick is a blatant attempt to subvert the basic legal rights of San Francisco rentors by ‘contracting around’ rent control, a clear violation of the law. The goal of this lawsuit is to bring these rents back down to their lawful maximums and get restitution for former and current tenants who paid illegal rents.”

Mr. Fredman cited the named plaintiffs in the lawsuit, David Franklin and Derek Tanguay, as an example of this scheme. The two tenants agreed to rent a unit for $1325 per month in September of 2005, according to Mr. Fredman. The Villas Parkmerced arrived at that rent by creating both a lease document that stated a monthly rent of $1675 per month and a second document, an addendum to the lease, which issued 12 coupons called “Bonus Bucks” that deducted $350 per month from the purported $1675 rent. Under the rent control ordinance, this year a landlord charging $1325 a month rent would have been able to legally raise an existing tenant’s base rent by only $22.52 (1.7%), according to Mr. Fredman. Instead, effective October 1, 2006, The Villas Parkmerced raised these plaintiffs’ rent from $1325 to $1703 (28.5%).

“Preventing such drastic rent increases for existing tenants is precisely why the people of San Francisco instituted rent control in the first place. This conduct hurts the tenants of course, but it is also very unfair to the thousands of mom–and–pop landlords in San Francisco who do the right thing and obey the rent control laws,” Mr. Fredman said.

Current or former tenants of The Villas Parkmerced who wish to participate in the class action may contact Peter Fredman, Esq. at pfredman @ braytonlaw.com or by telephone at 415–898–1555.

About Brayton Purcell
For over 20 years, Brayton Purcell has helped clients protect their legal rights in the face of devastating problems such as illness, injuries, financial losses and harm to family members. For more information about our services, call 415-898-1555 or visit the firm web site at http://www.braytonlaw.com

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Press Contact: Peter Fredman
Company Name: Brayton Purcell
Email: email protected from spam bots
Phone: 415 898-1555
Website: http://www.braytonlaw.com

Nonprofit Educates Homeowners On Sustainable Housing Solutions

 

National Nonprofit Educates Homeowners On Sustainable Housing Solutions For Rebuilding of U.S. Gulf Coast

A national grassroots volunteer organization, Katrina's Angels, has established a reputation for providing integrity and structured client management services to provide assistance with housing placement, employment, and resource acquisition for people affected by Hurricane Katrina.

(PRWEB) October 2, 2006 -- A national grassroots volunteer organization, Katrina's Angels, has established a reputation for providing integrity and structured client management services to provide assistance with housing placement, employment, and resource acquisition for people affected by Hurricane Katrina. Until January 2006, the 501 (c)(3) non-profit organization, managed KatrinaHousing.org, which maintained a database of 30,000+ evacuees and housing offers. As national efforts have shifted towards rebuilding and resettlement of the Gulf Coast, the focus of Katrina's Angels has also shifted.

Executive Director, Lynne Onufer, states, "Our mission has been to make a difference for displaced residents of the Gulf Coast by providing needed resources. Many people are returning to rebuild, and Katrina's Angels has chosen to focus on bringing together resources that will make the most difference for these people. People need to know that there is a choice, and innovative resources and solutions are available for sustainable housing, which means housing that can withstand hurricane-force winds and be free from the damaging effects of flooding. Homeowners and taxpayers should know that we don't have to go through the rebuilding process again. This is especially relevant today, as the Road Home program gears up to distribute billions of taxpayer dollars to help people rebuild."

Katrina's Angels is working with a coalition of builders, building materials manufacturers, architects and consultants to understand what building solutions are available, so they can educate their clients and the communities in the Gulf Coast. Go Business Network, Inc. is the consulting company that is organizing resources and service providers to offer a package of homes that will resist hurricane-strength winds, flood waters and mold, as well as provide energy-savings. They have presented the innovative housing solutions on the Hurricane Zone Housing web site located at http://www.hurricanezonehousing.com.

Katrina's Angels is a 501(c)(3) non-profit volunteer organization that consists of volunteers residing around the United States. The mission of Katrina's Angels is to provide resource coordination and needs fulfillment with sensitivity, professionalism and impeccable customer service to the evacuees of major natural disasters in the United States. The Katrina's Angels web site is located at http://www.katrinasangels.org.

Go Business Network is a Florida corporation committed to supporting innovation and bringing it to the marketplace. The company connects investors with opportunities to invest in businesses that make a difference for the advancement of technology and sustainability of our global resources. Go Business Network also supports innovative companies by developing networks and partnerships to bolster acceptance in the marketplace.

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Press Contact: Lynne Onufer
Company Name: Katrina's Angels
Email: email protected from spam bots
Phone: 724-625-2345
Website: http://www.hurricanezonehousing.com