Alan Wofsy & Associates, dba Hearst Commons v. Berkeley Rent Stabilization Board,
Case No. 23CV043503 (Superior Court for the State of California in the County of Alameda)
NOTICE OF PENDING CLASS ACTION
If you are an owner or have owned rental units in the City of Berkeley, a class action lawsuit may affect your rights. This Notice is being provided by order of the Superior Court for the State of California, in the County of Alameda. It is not a solicitation from a lawyer. You are not being sued.
A class action lawsuit is pending in the Superior Court for the State of California in the County of Alameda. This lawsuit challenges registration fee imposed by the City of Berkeley’s Rent Stabilization Board onto owners of rentals units in the City of Berkeley under a law called Measure MM. The name of the case is Alan Wofsy & Associates, dba Hearst Commons v. Berkeley Rent Stabilization Board, Case No. 23CV043503. Under Measure MM, owners of units have been charged a fee of up to $150 per unit. Plaintiffs allege that these fees are unconstitutional under Article XIII C of the California Constitution. Plaintiffs challenge Measure MM because it was not passed with a super majority of voters, and it does not meet any of the constitutional exceptions that would permit the Board to impose these fees without a super majority of votes.
Plaintiffs seek, among other things, (1) compensation for class members for any unlawful Measure MM fees that they were required to pay and (2) a Court order prohibiting the Board from furthering imposing Measure MM fees onto class members.
The Berkeley Rent Stabilization Board disputes these allegations and maintains that the Measure MM fees it charges are constitutional and otherwise appropriate under the law.
The Court has not, however, rendered any opinion as to whether Plaintiffs or the Berkeley Rent Stabilization Board are correct about the legal claims in the case. By establishing the Class and issuing this Notice, the Court is not suggesting that the Plaintiff or the Berkeley Rent Stabilization Board will win or lose this case. Plaintiff must prove the Class’s claims at a trial, which has not yet occurred. The trial date has been scheduled for April 7, 2025.
The Court has appointed the law offices of Coblentz, Patch, Duffy & Bass LLP as class counsel. No money or benefits are available now because the lawsuit is not resolved. There is no guarantee that money or benefits ever will be available. If they are, you will be notified about how to ask for a share of any recovery. Unless you exclude yourself or your business from the lawsuit, you or your business will be bound by the outcome of the case and you will not be able to file a lawsuit or be part of any lawsuit against the Board concerning or relating to the claims and allegations that were or could have been raised in this lawsuit.
On October 21, 2024, the Court determined that Plaintiffs’ claims against the Board could proceed as a class action. There is no money available now and no guarantee there ever will be. However, if you are a member of the certified classes as described in this Notice, your legal rights and options are affected, and you have a choice to make now.
LITIGATION CLASS DEFINITION: The Court has certified a class of all persons who currently own or have owned residential units in the City of Berkeley at any time from January 1, 2021, and are covered by Measure MM, subject to certain exceptions. Individuals who only owned units that were not covered by Measure MM, or only owned certain affordable-housing units that were subject to a lowered, Measure MM fee are not part of the Court’s class definition. Specifically, the following categories of individuals are excluded from the class:
- Individuals who only owned units in affordable-housing projects, including those managed through regulatory agreements under the City of Berkeley’s Affordable Housing Trust Fund Program;
- Individuals who only owned single-family homes or condominiums that are rented for up to two years and: (1) owned no more than one residential unit in Berkeley; (2) lived in the unit as your primary residence for at least 365 consecutive days immediately prior to rental; (3) will reoccupy the unit as your primary residence when the rental ends; and (4) specified the rental term, not to exceed 24 months, in the lease;
- Individuals who only owned Section 8 or Shelter Plus tenancies; or
- Individuals who only owned units that they occupied, maintained for their own use, or occupied rent free.
YOUR LEGAL RIGHTS AND OPTIONS: If you are a member of the class, you may take one of two options in connection with this action
- Exclude Yourself: You may write to the Administrator, Berkeley Registration Fees Notice Administrator, c/o SSI, an Epiq Company, P.O. Box 2715, Portland, OR 97208-2715, by March 15, 2025 to exclude yourself. If you ask to be excluded from this lawsuit and money is later rewarded, you will not be allowed to request a payment. But you or your business will keep your right to file your own lawsuit against the Board for damages concerning or relating to the claims and factual allegations that were or could have been raised in this action.
- Do Nothing: If you do nothing, you (or your business) will be bound by the outcome of the case, whether a judgment is rendered for or against the Board. Unless you exclude yourself (or your business), you will not be able to file a lawsuit or be part of any other lawsuit asserting claims against the Board concerning or relating to the claims and factual allegations that were or could have been raised in this lawsuit.
FURTHER INFORMATION REGARDING YOUR RIGHTS AND OPTIONS AND THE DEADLINES TO EXERCISE THEM ARE EXPLAINED IN THIS NOTICE.