Action/Alerts

On Monday (April 22) the Land Use Committee will meet to discuss and possibly approve the Condo Lottery Bypass Ordinance. The meeting begins at 1:30 p.m. in Room 263 at City Hall. Please attend and help defeat the proposed ordinance. The members of the committee are Supervisors Chiu, Wiener and Kim. Mark Farrell will be present at this meeting as he is the sponsor of the legislation.

Please make calls to Supervisors Chiu, Weiner, Farrell and Kim and explain that we feel the Condo Lottery Bypass Ordinance is bad for the City in the long run. Encourage the Supervisors to pull the legislation off the table.

Supervisor David Chiu, David.Chiu@Sfgov.org, Telephone (415) 554-7450

Supervisor Scott Weiner, Scott.Wiener@Sfgov.org, Telephone (415) 554-6968

Supervisor Jane Kim, Jane.Kim@Sfgov.org, Telephone (415) 554-7970

Supervisor Mark Farrell, Mark. Farrell@Sfgov.org, Telephone (415) 554-7752
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(Optional reading if you want more details.)

Summary of Amendment of the Ordinance
April 15, 2013

Creation of Expedited Conversion Process

• Participants in 2012 and/or 2013 lottery would be able to convert by paying the $20,000 condominium conversion fee (with discounts for years in lottery) over a 2-year period.
   
• Lottery participants who have been owners for 5 years or more would be eligible for conversion during the first year of the expedited program.
   
• All other lottery participants would be eligible for conversion in the second year of the expedited program.
   
• Beginning with the third year of the expedited program, and continuing through year six, any TIC as of April 15, 2013 that meets existing numerical owner occupancy requirements (1 owner occupant for 2-4 unit buildings; 3 owner occupants for 5-6 unit buildings) would be eligible for conversion once they meet a six-year owner occupancy requirement.

Suspension of the Lottery

• The lottery shall be suspended for a minimum of ten years.
   
• The maximum period of suspension will be the number of converted units divided by 200 (the current annual number under the lottery).
   
• If the City produces affordable housing units beyond both the 300 per year envisioned under 2012's Proposition C (Housing Trust Fund) and the number of converted units, the suspension could be closer to 10 years than the maximum described above.
   
• For example, if 2,400 units convert under the expedited process, the maximum length of the suspension of the lottery would be 12 years. But if 5,400 affordable units (3,000 Prop C plus 2,400 replacement units) were built in 10 years, the lottery would resume.

Adjustments to Future Lottery

• Once the lottery resumes, only buildings with 4 units or less would be eligible (5 and 6 unit buildings are currently eligible).
   
• The owner occupancy requirements would increase to 2 owner occupants for 3-unit buildings and 3 owner occupants for 4 unit buildings.

2 of 2

Lifetime Leases

• Requires written and recorded lifetime leases and extents the leases to disabled and catastrophically ill household members.

Deferral of Fee Payment

• Provides for an applicant to request deferment of fee payment if under 120 percent of Area Median Income.

Public Review of Conversion Applications

• Strengthens public review of conversion applications by providing for possibility of a Department of Public Works hearing.

Suspension with Lawsuit

• If a lawsuit is filed against the legislation, the expedited conversion process is suspended until a final legal determination is made.