A Brief Description of the Ellis Act

Tuesday, September 27, 2016

A Brief Description of the Ellis Act

As the owner of Residential Foreclosure Wholesale, LLC and East Bay Holding Co., LP, Danny Olmstead oversees all aspects of these property investment firms. In this capacity, Danny Olmstead has had experience restoring and subdividing duplexes in the city of San Francisco, careful to select non-Ellis Act properties.

The Ellis Act is a California law that was passed in 1986. The legislation allows landlords to legally get out of the rental business. If a landlord decides he no longer wants to rent out a property, the Ellis Act allows him to evict all tenants and remove the units from the rental market without city or government interference.

Ellis Act legislation comes into play when a landlord wants to change the use of the building. For example, the owner may wish to convert the units from rentals into condominiums. Alternatively, he may plan to build a mansion, using all the square footage for a single luxury residence. If landlords wish to execute their Ellis Act rights, there are a series of rules they must follow to do so. These regulations aim to protect tenants’ rights and to give them adequate time to relocate.

About Danny Olmstead

Former race car driver Danny Olmstead owns the Tracy, California-based companies Residential Foreclosure Wholesale, LLC, and East Bay Holding Company Co., LP. Through these enterprises, he oversees the renovation of non-Ellis Act duplexes in San Francisco and the development of new residential subdivisions in Tracy. He directs all project phases, from property acquisition and contractor oversight through to final sale. Since establishing the two businesses in 2008, Danny Olmstead has managed the construction of more than 40 semi-custom homes.

Besides operating his own development companies, Danny Olmstead serves as a passive investor for Open Path Investments, LLC, a firm that concentrates on financing projects that enhance multi-family housing communities in locations across the country. He previously managed the design and building of custom homes as vice president of general operations for WDO, Inc.

During his extensive career as a driver for D & D Racing, Inc., Mr. Olmstead competed in sprint car races and previously held the record as the youngest winner of a major NASCAR event. He later advanced to driving formula cars and raced in multiple events for Pacific Motorsports.

Danny Olmstead earned a BS in finance from the University of the Pacific. He maintains membership in the Commonwealth Club of San Francisco and the University Club of San Francisco. Also a volunteer assistant chef at St. Martin de Porres, he hopes to pursue studies at the International Culinary Center in Campbell, California.