Friday, May 25, 2018

Constitutionality of the requirement for a life-time lease as condition for condo conversion was upheld

In July of last year, TIC co-owners of a multi-unit building in San Francisco sued against the ordinance provisions requiring a lifetime lease to be offered to those tenants who reside in the units subjected to a condominium conversion. Case 3:17-cv-03638, Pakdel et al v. City and County of San Francisco (2017 WL 6403074), filed before the Northern District of California federal district court.

The court granted City's motion to dismiss (Docket # 25, 11/20/2017). Of interest to other practitioners, in its relevant portion (page 10), the court found the requirement of offering a lifetime lease constitutional, as one passing the rational basis review standard. The requirement itself is found in Sec. 1396.4(g) of the San Francisco Subdivision Code.

The case is currently pending appeal, opening brief filed on April 28, 2018. Appeals' Case Number 17-17504.

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