Rent control in San Francisco is a system of laws aimed at keeping housing affordable and protecting tenants from unfair evictions. Established in 1979, the San Francisco Rent Ordinance governs these rules, administered by the San Francisco Rent Board.
What is Rent Control?
Rent control limits how much landlords can increase rent each year. It also ensures tenants can only be evicted for specific reasons, known as just causes. The San Francisco Rent Ordinance, passed in 1979, was created to address rising housing costs and prevent displacement. Its primary goals are:
- Affordable Housing: Keep rent increases manageable so tenants can stay in their homes.
- Tenant Protection: Prevent evictions without valid reasons, ensuring housing stability.
The ordinance applies to most residential tenants in San Francisco, but there are exceptions based on the type and age of the rental property.
How Rent Control Works
Rent control in San Francisco operates through two main mechanisms: limits on rent increases and protections against unjust evictions. The San Francisco Rent Board oversees these rules, ensuring compliance from landlords and providing resources for tenants.
Rent Increase Limits
Each year, the Rent Board calculates the maximum allowable rent increase based on 60% of the Consumer Price Index (CPI) for the Bay Area. For example:
- 2024-2025: The allowed rent increase is 1.7%, effective from March 1, 2024, to February 28, 2025.
- 2025-2026: The allowed increase is 1.4%, effective from March 1, 2025, to February 28, 2026.
Landlords can only raise rent by this percentage once every 12 months for tenants who have occupied the unit for at least a year. Additional increases, known as pass-throughs, may be allowed for specific costs like:
- Capital Improvements: Up to a 10% rent increase for building upgrades, subject to Rent Board approval.
- Operating and Maintenance Costs: Up to a 7% increase beyond the annual limit, also requiring approval.
- Utility Costs: Landlords can pass on certain utility cost increases, like PG&E, with proper documentation.
Landlords must provide written notice—30 days for increases up to 10%, or 90 days for increases over 10%. Tenants can challenge unlawful increases through the Rent Board.
Eviction Protections
The Rent Ordinance requires landlords to have a just cause for eviction. There are 16 just causes, including:
- Non-payment of rent.
- Violation of lease terms.
- Landlord or their family moving into the unit (with specific conditions).
- Removal of the unit from the rental market (e.g., under the Ellis Act).
Evictions must follow a legal process, including proper notice and, in some cases, Rent Board approval. This protects tenants from arbitrary displacement.
Eligibility for Rent Control
Not all rental units in San Francisco are covered by rent control. Eligibility depends on the building’s age and type.
Covered Units
Rent control generally applies to:
- Multi-unit buildings (apartments, condos, or homes with two or more units) built on or before June 13, 1979.
- Single-family homes or condos rented before January 1, 1996.
- In-law units built before 1979, treated as second units for full protection.
- Commercial units used as residences with the landlord’s knowledge, unless otherwise exempt.
Tenants can verify their building’s construction date using the San Francisco Property Information Map or contact the Rent Board at (415) 252-4600 for free counseling.
Exempt Units
The following units are typically exempt from rent control:
- Units built after June 13, 1979.
- Single-family homes or condos rented after January 1, 1996.
- Subsidized housing, residential hotels (occupied less than 32 days), dormitories, hospitals, and non-profit cooperatives.
- Owner-occupied buildings with fewer than two units.
Some units may still have eviction protections under state law, even if they lack rent control. The California Tenant Protection Act (AB 1482) caps rent increases at 5% plus the cost of living (up to 10%) for certain non-exempt units not covered by the Rent Ordinance.
Recent Changes and Current Status
San Francisco’s rent control laws have seen updates and proposed changes in recent years. Here are the key developments:
Statewide Rent Control
Effective January 1, 2020, the California Tenant Protection Act (AB 1482) introduced statewide rent control for units not covered by local ordinances. It caps annual rent increases at 5% plus the cost of living or 10%, whichever is lower, for tenants occupying a unit for 12 months or more. This applies to many units exempt from San Francisco’s Rent Ordinance, such as newer buildings.
Proposition 33 (November 2024)
In October 2024, San Francisco’s Board of Supervisors passed an ordinance to expand rent control to buildings constructed before 1994, potentially adding 16,000 units. However, this expansion depended on the passage of Proposition 33, a statewide ballot measure in November 2024. Proposition 33 aimed to repeal the Costa-Hawkins Rental Housing Act of 1995, which:
- Prohibits rent control on single-family homes and condos.
- Bans rent control on units built after February 1, 1995 (or earlier in some cities, like 1979 in San Francisco).
- Allows landlords to set market rates for new tenants (vacancy decontrol).
California voters rejected Proposition 33, with 62% opposing it, according to Ballotpedia. As a result, the Costa-Hawkins Act remains in effect, and San Francisco’s rent control rules continue to apply only to units built before June 13, 1979, with the exceptions noted.
Other Updates
- July 15, 2018: Amendments to the Rent Ordinance restricted rent increases related to debt service or property tax changes due to ownership transfers. Management expense increases must now be reasonable and necessary.
- January 19, 2020: Units with post-1979 certificates of occupancy are no longer automatically exempt, expanding coverage in some cases.
- December 6, 2019: General bond pass-throughs were included in hardship exemption applications, allowing tenants to seek relief if rent increases cause financial strain.
Effects of Rent Control on the Housing Market
Rent control is a polarizing issue in San Francisco. Supporters argue it protects low-income and senior households from displacement, ensuring housing stability. Critics contend it discourages landlords from maintaining properties or building new rental units, which can reduce housing supply and drive up rents for non-controlled units.
A 2019 Stanford study (American Economic Review) found that rent control reduced displacement for incumbent tenants but led to a 15% decrease in rental housing supply. Landlords converted units to condos or left them vacant, contributing to higher market rents. The study also suggested rent control may have inadvertently fueled gentrification by attracting higher-income residents while protecting existing tenants.
A 2023 study by Northwestern University researchers noted an 83% increase in eviction notices and a 125% increase in wrongful eviction claims after a 1995 rent control expansion, highlighting potential unintended consequences.
Summary Table: Rent Control in San Francisco
| Aspect | Details |
|---|---|
| Definition | Limits rent increases and requires just cause for evictions under the 1979 Rent Ordinance. |
| Eligibility | Applies to multi-unit buildings built on or before June 13, 1979; some single-family homes/condos pre-1996. |
| Rent Increase Limit | 1.7% (2024-2025); 1.4% (2025-2026), based on 60% of Bay Area CPI. Additional pass-throughs possible with Rent Board approval. |
| Eviction Protections | Requires one of 16 just causes, such as non-payment or landlord move-in. Legal process and notice required. |
| Exemptions | Units built after June 13, 1979, subsidized housing, residential hotels (<32 days), dormitories, owner-occupied buildings with <2 units. |
| Recent Changes | Proposition 33 (2024) rejected; Costa-Hawkins Act remains. Statewide rent control (AB 1482) effective 2020 for some exempt units. |
| Impact | Protects tenants but may reduce rental supply, increase market rents, and contribute to gentrification, per studies. |
Conclusion
Rent control in San Francisco is a critical tool for tenant protection but comes with trade-offs. It helps long-term residents stay in their homes by capping rent increases and limiting evictions. However, it may reduce the availability of rental units and increase costs for non-controlled properties. The rejection of Proposition 33 in November 2024 means the rules remain unchanged for now, but the housing debate continues. Tenants and landlords should stay informed by checking with the San Francisco Rent Board or resources like the San Francisco Tenants Union.