A state appeals court has struck down a San Francisco ordinance that requires landlords who evict their tenants and go out of the rental business under the state's Ellis Act to wait 10 years before rebuilding or renovating any of the formerly rented units.

The local law, enacted in December 2013, penalizes property owners for exercising their rights under the Ellis Act and thus conflicts with California law, the First District Court of Appeal in San Francisco said Wednesday.

Read More: http://www.governing.com/topics/urban/tns-ellis-act-san-francisco.html