CDC, the leading online rental service, has agreed to the end of a two-month moratorium on rent increases for tenants in its San Francisco Bay Area apartment complex.
The move comes after a recent lawsuit that sought to force the company to pay rent hikes to all tenants.
The California Department of Fair Housing and the California Association of Realtors (CAAR) filed the lawsuit in September.
The plaintiffs allege that CDC violated the state’s Fair Housing Act by failing to offer a fair housing rental program, and failing to adequately implement a rent stabilization plan to mitigate the effects of rising rents.
The suit was brought by several tenants who were denied rent increases in October, after CDC failed to meet a court-imposed rent stabilization deadline.
The company also failed to comply with state and federal regulations on renting in the Bay Area, which have led to increased rent for many low-income tenants.
CDC is the largest online rental company in the United States, and it operates out of about 2,000 apartments in the San Francisco area.
The San Francisco Board of Supervisors is expected to vote on a proposed rent freeze by next week.
The Board is expected soon to consider a proposed increase in rent that is being considered by the state legislature.
The rent freeze would freeze rent increases to the next increase in the rent control law, which was enacted in December 2016.
The board is expected, however, to vote to keep rents at the current level, or to raise the rent ceiling for tenants that live in apartments with no fixed landlord.
Rent increases are set to go back to a 1.5 percent annual rate next year, the first increase since a 4.5% increase in January 2017.
Renters are now able to apply for an increase at a higher rate and the board is also considering increasing rents to tenants that are in the same units as those affected by the rent freeze.
According to a CDC press release, the company plans to end the moratorium on rents beginning on November 4.
The firm said that its “first priority will be to provide affordable housing to our tenants.
We are committed to supporting tenants with housing needs through a comprehensive rent stabilization program.”
The statement said that the company is “committed to providing affordable housing for our employees, our guests, and our community.”
The move is an acknowledgement that there’s more work to be done, as rent increases have become an increasing problem in the last few years.
In 2016, more than 20,000 Bay Area residents were without a fixed-rent apartment, according to the San Jose Mercury News.
In 2018, the city reported that more than 6,000 rent-stabilized apartments had been sold to developers.
A large number of the sales were to rent-control tenants who are in violation of state regulations and are not receiving rent increases, according the Mercury News, which cited the California Real Estate Association.
The Sacramento Bee reports that CMD has sold more than 8,500 units to rent control tenants since the beginning of the year.
While some landlords have sought to evict tenants with illegal evictions, many of these evictions have been upheld by courts, according Toews.
In November, the SF Municipal Housing Authority (SFMHA) found that some tenants had been evicted for nonpayment of rent, but the agency did not award damages to those tenants, nor did it order them to return to their apartments.
In response to the eviction, SFMHA also filed a lawsuit against CDC.
The city of San Francisco has not yet determined whether it will appeal the decision.