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SAN FRANCISCO-A would-be class-action lawsuit has been filed onbehalf of a tenant of Villas Parkmerced, the city's largestapartment development with 3,456 units. The suit alleges that theoperator of the 115-acre, 13-tower development "routinely imposesrent increases that violate San Francisco's Rent Control Ordinance"and asks for tenants' rents to be restored to their legal maximumsand for restitution of all monies unlawfully obtained. Attorneysfor the current owner of the property tell GlobeSt.com their clientis not engaging in any illegal activity and that Parkmerced'sincentive program is under review by the Rent Control Board, with adecision excpected later this month.

San Francisco's Rent Control Ordinance allows a landlord toraise the rent on a unit to market rate after the unit is vacated.Once this new rent is set, however, the rent is again controlledduring this tenant's occupancy, allowing the owner to raise rentsbased on 60% of the CPI, with a maximum annual increase of 7%.