Publisher's Note:This section has been ADDED by new legislation (Ord. , approved 5/3/2019, effective 6/3/2019). The text of the section will be included below when the enacting legislation is effective.
(a) Seller Certification. Every Seller of a Multi-Family Residential Building in the City shall, within 15 days of the Sale of that Building, submit to the Agency a signed declaration, under penalty of perjury, affirming that the Sale of that Building substantially complied with the requirements of this Chapter 41B
. Each such declaration shall include the address of the relevant Building; the Agency shall publish all such addresses on its website at least once per week. Failure to file the declaration required by this subsection (a) shall be an infraction punishable to the maximum extent provided by Section 36900(b) of the California Government Code.
(b) Civil Action. In the event that a Seller Sells a Multi-Family Residential Building without substantially complying with the requirements of this Chapter 41B
, a Qualified Nonprofit may institute a civil action, in a court of competent jurisdiction, to remedy that violation of this Chapter, in a manner consistent with subsections (c) and (d).
(c) Remedies. Remedies in a civil action brought under this Section 41B.10 shall include, but need not be limited to, the following, which may be imposed cumulatively:
(1) Damages in an amount sufficient to remedy the harm to the Qualified Nonprofit. There shall be a rebuttable presumption that this amount is equal to the difference between the price of the relevant Multi-Family Residential Building at the time of the Sale made in violation of this Chapter 41B, and the price for which the Qualified Nonprofit could purchase that Multi-Family Residential Building at the time when damages are awarded;
(2) If the Seller’s violation of this Chapter was knowing or willful, mandatory civil penalties in an amount proportional to the culpability of the Seller and the value of the relevant Multi-Family Residential Building. There shall be a rebuttable presumption that this amount is equal to 10% of the Sale price of the Multi-Family Residential Building for a first willful or knowing violation of this Chapter, 20% of the Sale price for a second willful or knowing violation, and 30% of the Sale price for each subsequent willful or knowing violation. Civil penalties assessed under this subsection (b)(2) shall be payable to the Citywide Affordable Housing Fund established by Section 10.100-49 of the Administrative Code;
(3) Reasonable attorneys’ fees; and
(4) Such other remedies as might be available under State law, except to the extent that any such remedies would be inconsistent with subsection (d).
(d) Limitation on Remedies. Any remedy imposed in a civil action under this Section 41B.10 shall be imposed only against the Seller or a party that has willfully colluded with the Seller to violate this Chapter 41B
. In no event shall any such remedy deprive the Purchaser of a Multi-Family Residential Building of any interest in that Multi-Family Residential Building, or otherwise affect any property interest held by the Purchaser, unless the Purchaser willfully colluded with the Seller to violate this Chapter.
