Councilmember Bowie moved approval.
Adopted
7 - Councilmember Noecker, Councilmember Jalali, Councilmember Yang,
Councilmember Kim, Councilmember Bowie, Councilmember Jost and
Councilmember Johnson
Yea:
0
Nay:
LEGISLATIVE HEARING DISCUSSION ITEMS
Appeal of Sumeya Mohamed to a Rent Stabilization Determination at 200
59
WINTHROP STREET SOUTH, APT. 313. (Amended to grant the appeal)
Appeal granted.
Also in attendance:
Sumeya Mohamed, appellant
James Poradek, Housing Justice Center, attorney representing the appellant
Abbie Hanson, Housing Justice Center, attorney representing the appellant
Nhia Vang, Legislative Hearing Officer: This is an appeal of Sumeya Mohamed to a
Rent Stabilization Determination at 200 Winthrop Street, Apartment 313. It is only for
her unit. This first came to the attention of the Department of Safety and Inspections
(DSI) on January 2, 2023 through an application from the owners, G&I X Phoenix
Apartments, LLC, to increase rent for vacated units in the amount of 8% plus inflation
according to the Consumer Price Index (CPI). Cheron Eich and Jason Wood were
acting on behalf of the property when they met with staff from January through May,
2023. The representatives ultimately sought a request for staff determination for an
exception to the City's 3% rent cap. The increases were listed as being related to
unavoidable increases in operating expenses and a capital improvement project to
upgrade the entire property. On May 25, 2023, DSI granted approval of the rent
increase at various percentages between 26.48% and 80.61%, depending on the
unit. Apartment 313 was approved for a 26.48% increase, allowing a maximum rent
of $1,823.84 per month. This was based entirely on net operating income, and not at
all on renovations. As part of this determination, the Fire Certificate of Occupancy
(FCO) was considered. It was approved in February 2023 as a Class A property.
Some complaints were related to a mouse infestation, a fire alarm issue, rodents,
flooring, broken glass, and garbage on the property. According to staff, all issues had
been remedied or were in the process of being remedied at the time of the appeal
hearing. The appeal was received in July 2023 and the hearing took place in August
10, 2023. Legislative Hearing Officer Marcia Moermond received confirmation during
the hearing that the appeal applies only to Apt. 313, and that the appellant did not
have the authority to act on behalf of other tenants in the building. Several concerns
were raised in the hearing, including lead, asbestos, and habitability. On July 1, 2024,
the appellant vacated the unit. Moermond was notified of the move by Jason Wood
from the management company. After conferred with the City Attorney's Office (CAO)
Moermond's recommendation was then to dismiss the appeal, as the appellant no
longer had legal standing. From August 2023 to August 2024, supplemental materials
continued to be sent to Moermond and were fully examined. I recognize that this
process has taken a long time and want to note the factors that affected the
development of Moermond's recommendation. One was that the appellant and her
representative sent numerous documents. 44 were received in total, amounting to
over 1,700 pages. Not all documents were submitted at the same time. Some were
received today. All documents were fully examined and reviewed. Another reason for
the delay was that Moermond was on medical leave during this period and only
recently returned to full-time work. There were also staffing changes during this
period. While the documents from the applicant and her attorney are concerning,