Percentage of Ownership

There are a number of specific conditions that must be met for a property owner to use owner occupancy as Just Cause for evicting a tenant.  Under Proposition G, one condition that must be met is that a property owner must own a certain percentage of the property for an owner–occupancy eviction to be valid. The percentage of ownership depends on the date the owner took title. Owners who recorded ownership after February 1991 are required to hold 25% interest in the building for a owner-occupancy eviction to be valid. For titles held prior to February 1991 the percentage of ownership threshold is 10%. Only domestic partners can combine their interests to achieve a 25% interest in order to occupy a unit.

Note: There has been debate about the legality of the 25% ownership ruling as some contended the true amount was 50% under the Bierman amendmant. However on June 13, 2006 the appellate department issued a decision in Garber v. Jones, finding that Proposition G superseded the Bierman amendment as to the required percentage ownership for an owner move-in eviction under Ordinance Section 37.9(a)(8). The court found that since the two provisions conflict, and Proposition G was passed later in time, Proposition G’s 25% ownership requirement prevails over the 50% ownership required by the previously enacted Bierman amendment. The appellate department has certified the case for transfer to the Court of Appeal in order to settle the question of law involved.