(Martin Mercado standing with CJJC Housing Counselor Paige Kúmm)

Martin Mercado had a huge victory at the Rent Board against a property management company represented by landlord lawyer Daniel Bornstein. 

Martin and his brother moved in a studio apartment in the Mission District in 1993, but his brother was the only one who signed the contract and all the rent checks. Martin’s brother moved back to El Salvador, so Martin’s children moved into the apartment with him to help pay the rent.  

While Martin was traveling in El Salvador early this winter, his kids lost the key to the front gate of the building. When they went to ask for the key, it was discovered that they were not on the contract, and a few days later, they received a notice that the rent was going up from $615 to $2,995!  Under the state law Costa-Hawkins, if an original tenant moves out, the landlord can raise the rent to market price for the remaining subtenants, and usually this means eviction.

However, there is an exception to Costa-Hawkins for subtenants that moved in before 1996.  Martin, even though he wasn’t on the contract, moved in to the apartment in 1993, and he had the proof to back it up.

So CJJC submitted a petition for a hearing against an unlawful increase at the Rent Board.  

Bornstein and the landlords showed up, but the first thing Bornstein did was offer Martin $10,000 to move out in less than 3 months.  When Martin refused, it appeared that Bornstein tried to intimidate him, but Martin wanted to continue with the hearing. 

The landlords never even entered the hearing room, and a few minutes later Bornstein came in to tell us that they were rescinding the notice and we could withdraw the petition.

Says Martin, “The situation with rent in San Francisco is drastic, especially since our incomes have not risen in a corresponding manner.  I feel happy to be able to stay in my home and I thank Causa Justa for all the help they have given me.”

Victory!  Another family’s housing saved.