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PLANNING DEPARTMENT

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September 10,2015

1650 Mission St.

Suite 400
San Francisco,
CA 94103-2479

Provenzano-Maloney Trust
1015 South Van Ness Avenue
San Francisco, CA 94110

Reception:
415.558.6378
Fax:
415.558.6409

NOTICE OF DECISION

nlformation:
415.558.6377

SF Administrative Code Chapter 41A Short Term Residential Rental

Site Address:
Assessor's Block/Lot:
Zoning District:
Complaint Number:
Hearing Officer:

12 Hill Street
3617/046
RH-3(Residential- House, Three Family)Zoning District
2015-008003ENF
Adrian C.Putra,(415)575-9079 or adrian.putra@sfgov.or~

DECISION
The Directofs appointed hearing officer, Adrian C. Putra, has determined that Provenzano-Maloney
Trust, the owners of 12 Hill Street were in violation of the Administrative Code Chapter 41A for illegally
offering two dwelling units 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 is a two-story building containing seven-unit dwelling units. The Planning
Department received a complaint on June 24, 2015, alleging that dwelling units at 12 Hill Street are
operating as unauthorized short-term residential rentals (a.k.a. Tourist or Transient use).

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

12 Hill Street
Complaint No.2015-008003ENF

Chapter 41A Notice of Decision

September 10, 2015

Short-term Residential Rental Registry. Under Administrative Code Section 41A.6, if the Hearing Officer
determines that a violation has occurred, an administrative penalty shall be assessed as follows:
1. For the initial violation, not more than four tunes the standard hourly administrative rate of
$121.00 for each unlawfully converted unit, or for each identified failure of a Hosting Platform to
comply with the requirements of subsection (g)(4), per day from the notice of Complaint until
such time as the unlawful activity terminates;
2. For the second violation by the same Owner(s), Business Entity, or Hosting Platform, not more
than eight times the standard hourly administrative rate of $121.00 for each unlawfully converted
unit, or for each identified failure of a Hosting Platform to comply with the requirements of
subsection (g)(4), per day from the day the unlawful activity commenced until such time as the
unlawful activity terminates; and
3. For the third and any subsequent violation by the same Owner(s), Business Entity, or Hosting
Platform, not more than twelve times the standard hourly administrative rate of $121.00 for each
unlawfully converted unit or for each identified failure of a Hosting Platform to comply with the
requirements of subsection (g)(4) per day from the day the unlawful activity commenced until
such time as the unlawful activity terminates.

COMPLAINT AND SUPPORTING DOCUMENTS

On June 24, 2015, Planning Department staff received a complaint that dwelling units at the subject
property were operating as an unauthorized short=term residential rentals. Staff found that two units at
the property were offered as short term rentals on Airbnb (www.airbnb.com),

NOTICE OF COMPLAINT AND APPARENT VIOLATION

On June 30, 2015, staff issues a Notice of Complaint to the property owner by certified and non-certified
mail.
On July 1, 2015, staff posts a notice at the subject property notifying the owners of the hearing.

ADMINISTRATIVE HEARING
On August 12, 2015, the hearing officer convened the administrative hearing. All testifying witnesses
were sworn in and the hearing was audio recorded. The hearing was attended by the following people:
Mr. Adrian Putra, hearing officer
Ms. Laura Lynch, staff planner
Mr. Marc Provenzano, property owner
Ms. Lynch, staff planner gave the following testimony:
On June 25, 2015, staff located active short term rental listings for units at the property on Airbnb.
On July 2, 2015, staff found that the Airbnb listings have been modified to state a "31 day
minimum" stay; however the body of the listings still provided a daily and weekly rate with the
following statement: "If you are interested in staying less than 3 nights in a slot that shows
availability- Please send us a message by entering different dates and a message."
On July 3,2015, staff found that the listings have been removed from Airbnb.
Mr. Provenzano, identified himself as one of the property owners and gave the following testimony:

SAN FRANCISCO
PLANNING DEPARTMENT

12 Hill Street
Complaint No.2015-008003ENF

Chapter 41A Notice of Decision

September 10, 2015

The two units listed as short-term rentals on Airbnb were managed by his wife (who was not
present), who is also an owner of the property.
One of the units is vacant and was offered as a short-term rental after the tenants moved out,
while the other unit offered for short-term rental is tenant occupied, and was offered on Airbnb
with the tenant's permission to help cover his rent.
The address of the unit (identified as "Kevin')occupied by a tenant is 12 ~/2 Hill Street, Unit 1.
The address of the vacant unit is 12 Hill Street, Unit A, which according to the owner is currently
undergoing renovations and will be occupied by his mother.

POST-HEARING SUBMISSION
Ms. Carrie Maloney, property owner, submitted additional information on August 24, 2015. A summary
of the submittal is below:

Partial screenshots from Airbnb showing that their two listings have been deactivated from the
website.
A record of completed transactions for the period from July of 2015 to December of 2015,
showing that both units were reserved from June 30, 2017 to July 7, 2015.

Ms. Lynch went on a site visit of the subject property on August 27, 2015, to meet with the property
owner and inspect the two units previously listed on Airbnb. According to Ms. Lynch, during her site
visit she found the unit which the owner advised will be occupied by his mother to be completely under
construction. When inspecting the second unit, which the owner claimed is occupied by a tenant; Ms.
Lynch reported that she observed that:
The property owner stated that the unit is rented out full time by a resident and his girlfriend and
that they moved in to the unit in October 2014.
'The fridge was empty.
The closets did not have any clothes in them.
The bedroom did not appear to be occupied.
T'he room contained a number of items piled around the room for a baby and looked as if it could
be used for storage.
When asked about providing a lease, proving a 30 day tenant, the property owner responded that
he did not believe there was a lease agreement for the unit.
Mr. Provenzano submitted on September 2, 2015, a copy of the lease for his tenant who he identified as
"Kevin" in his testimony during the Administrative Hearing that,took place on August 12,2015.

FINDINGS
Based on the review of the record as a whole, the hearing officer finds as follows:
1. That two dwelling units at the subject property were violation of operating as an illegal Tourist or
Transient use until at least July 7, 2015.
2. As of July 3, 2015, the two dwelling units at the property were no longer offered for tourist or
transient use based on the Airbnb listings for the property being removed.

SAN FRANCISCO
PLANNING DEPARTMENT

12 Hill Street
Complaint No.2015-008003ENF

Chapter 41A Notice of Decision

September 10, 2015

3. However, short term rental activity continued at both units until July 7, 2015, based on a record
of completed transactions for the period from July of 2015 to December of 2015, submitted by Ms.
Maloney showing that both units were reserved from June 30, 2017 to July 7, 2015.

CONCLUSION AND ORDER

Based on the above findings and the evidence in the record as a whole, the hearing officer determines that
two dwelling units at the property were operating as a Tourist or Transient use through July 7, 2015 in
violation of Administrative Code Chapter 41A. Because this is an initial violation, the hearing officer may
assess administrative penalties from the date of the Notice of Complaint (here June 30, 2015) until the
date the violation is cured (here July 7, 2015) on both a per diem and per unit basis. Thus, by this
determination the hearing officer assesses administrative penalties against the property owners for a total
of 16 days (three days per each unit) at a rate of $484 per day. Accordingly, administrative penalties for
the total amount of $7,744.00, is now due to the Planning Department. Please submit a check for the
total amount of $7,744.00, payable to "Planning Department Code Enforcement Fund" immediately.

Sincerely,

Adrian C.Putra
Hearing Officer
Cc:

Laura Lynch, Planner, San Francisco Planning Department

SAN FRANCISCO
PLAlJNING DEPARTMENT