Affordable Housing

Forum begins to bridge the housing-transportation divide

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Advocates for sustainable transportation and affordable housing in San Francisco — who have been pitted against each other in this election — discussed their differences and found some common ground for a post-election agenda during a community forum last night [Thu/9] hosted by the Bay Guardian and San Francisco Transit Riders Union.

We intended for the forum, “Bridging the Gaps in Funding Transit and Housing,” to begin to heal the rift that has developed over the last couple years and played out strongly this year in the creation of and campaigns for Propositions A, B, G, K, and L, with each camp not supporting the other’s priorities.

But there was broad agreement that both sides should work together on an affordabilty agenda that combats rising housing and transportation costs, the need to incorporate equity and social justice studies into the solutions this coalition should pursue, and even some specific funding mechanisms to meet both needs, including charging transportation impact fees to residential developers and uniting in a campaign to increase the local vehicle license fee in 2016.

“If you looking at what kind of city this is going to be, it really is about housing and transportation. They are two sides of the same coin,” Sup. Scott Wiener said after he arrived late in the forum, explaining how he has filled a critical void in transportation advocacy at City Hall. “The problem has been that over time, everytime there’s a budget fight, Muni loses.”

But Wiener has been a political lightning rod, particularly with renters and affordable housing activists who blame him for the division and for moving forward with Prop. B, which increases funding for Muni, without building a broader coalition first.

“I think the VLF could have had a chance [this year], but what it was lacking was a solid coalition to pull it off,” Peter Cohen, co-director of the Council of Community Housing Organizations, said at the forum.

Cohen and his allies were left out of the Mayor’s 2013 Transportation Task Force, and they were critical of it for setting priorities and identifying funding options before undertaking a broad study of equity and social justice considerations, a study that the SFMTA is now working on with support from transportation activists.

Cohen didn’t accept the framing that helping Muni necessarily helps low-income households — 53 percent of Muni riders don’t have access to a car and 51 percent live in low-income households, according to an SFMTA ridership survey presented at the forum by the agency’s Jonathan Rewers — saying many system improvements are aimed at wealthier parts of town.

“The question is what parts of the system are actually being improved,” Cohen said, adding, “When you get down to the fine grain scale, it’s a lot more complicated.”

But Wiener and transit activists didn’t agree, noting that most Muni lines connect rich and poor neighborhoods, and that when you consider that low-income people disproportionately ride public transit, giving money to Muni necessarily helps the poor.

“There are very few [Muni] lines that only serve low-income people or high-income people,” Wiener said, arguing the public transit funding helps the entire city, and disproportionately the low-income people who rely on Muni.

“Helping Muni intrinsically helps low-income folks,” Amandeep Jawa, president of the League of Conservation Voters, said. “Fixing Muni is intrinsically a equity issue.”

That was also how SFTRU’s Thea Selby framed the issue: “We have a customer base that is low income and we have to take that into account.”

But because affordable housing and the transportation system each have funding needs running into the billions of dollars, there is tension.

“It’s a limited pile of funds, so we all feel like we’re fighting in a zero sum game,” Jawa said, blaming elected officials for unnecessarily creating that divisive paradigm and failing to identify new funding sources. “There is a lack of political leadership in this town, and not on the activist side.”

But when Jawa made an exception of Wiener (who hadn’t yet arrived at the forum), praising Wiener’s leadership on transportation issues, Cohen reacted angrily and blamed Wiener for sowing the divisions between transportation and housing activists.

“We see very intentional wedging,” Cohen said, criticizing Wiener for placing Prop. B on the ballot (which Cohen and his group opposes) and for opposing Prop. G, the anti-speculation tax that is a top priority for affordable housing advocates this election. “We have had a very difficult time working together because we have been pitted against each other.”

Yet Jawa criticized how Cohen and affordable housing activists have tried to frame the discussion around Prop. B, which increases General Fund contributions to Muni as the city’s population increases: “I don’t believe the notion that we’re stealing from affordable housing. We’re not.”

Eventually, those tense moments in which the divisions were sharply on display yielded to more civility and pledges to work together after this election.

“From my perspective, we need to not be at each other’s throats, but we have to work at all those priorities,” said Peter Strauss of the SFTRU.

“Talking, we can begin to understand each other’s priorities,” said Chema Hernández Gil of the San Francisco Bicycle Coalition, pledging to work with Cohen and other affordable housing and social justice activists to strength that coalition.

Hernández Gil cited studies showing that housing is the biggest expenditure for San Franciscans, followed by transportation costs. A worker making minimum wage pay about half of his or her income on housing and a quarter on transportation, leaving very little left for other expenses.

“If you need a car, how much it costs to live here gets so much more expensive,” Jawa said, citing the importance of transit-first policies to an affordability agenda. So he said the pro-car Prop. L would make San Francisco more expensive. “Prop. L is all about transportation affordability in the end,” Jawa said, urging voters to reject the measure.

Cohen noted that he’s supporting the Prop. A general obligation transportation bond and will continue to supporting the creation of a sustainable transportation system as well.

“Right now, residential development doesn’t pay a nickel for transportation infrastructure,” Cohen said, with his call for a residential transportation impact fee winning support from most of the activists in the room.

Cohen asked the transportation activists for their support on housing issues.

“What we have in San Francisco is a dramatic shortage of affordable housing,” Cohen said, calling for a broad coalition to support more public funding to build affordable housing. “It’s going to take a lot of work and a lot you coming back to support funding measures on the ballot.”

SF supervisors vote to legalize and regulate Airbnb’s short-term rentals

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The San Francisco Board of Supervisors today approved controversial legislation to legalize and regulate short-term housing rentals to tourists, voting 7-4 on the package after supervisors narrowly rejected a series of amendments to rein in an activity that has taken thousands of units off the market for local residents.

Amendments to limit hosted rentals to 90 nights per year, to require that Airbnb pay about $25 million in back transient occupancy taxes it owes the city before the legislation would go into effect, to exclude in-law units from eligibility for short-term rentals, and to limit rentals in single-family home neighborhoods failed on a series of 5-6 votes.

Sups. John Avalos, David Campos, Eric Mar, Norman Yee, and Jane Kim voted as a block on the amendments to limit the scope of short-term rentals facilitated by Airbnb and other companies, as a broad coalition that includes tenant, landlord, labor, neighborhood, and affordable housing groups had sought. Kim parted from that block to vote yes on the final legislation, which the others opposed.

Amendments proposed by Kim to give housing nonprofits the right to file injunctive lawsuits to help enforce the legislation and by Campos to ban short-term rentals in units that have been cleared of tenants by Ellis Act evictions were approved 8-3. But because those changes were substantial, they were turned into trailing legislation that must go back to the Planning Commission.

Despite a series of amendments since Board President David Chiu proposed the legislation over the summer, its basic tenets have changed little. It requires short-term rental hosts to register with the city and rent out only their primary residence, which they must live in for at least 275 days out of the year, with the Planning Department enforcing the regulation on a complaint basis.

That effectively limits the rental of entire homes to 90 days per year, but Chiu, Airbnb, and its hosts strenuously rejected calls to extend that cap to hosted rentals, such as spare bedrooms that might otherwise be available to permanent city residents. Chiu said his legislation was “framed through the lens of our housing affordability crisis,” arguing that many San Franciscans rely on Airbnb income to make their rent.

Avalos said he understands that position, but he said tourists shouldn’t be displacing San Franciscans, proposing the 90-day limit on all short-term rentals. “I think it’s important to maximize our residential housing stock to the utmost,” he said. Mar also voiced strong support for extended the cap, criticizing the “cult-like” beliefs by some home-sharing advocates.

As I’ve been reporting in the Guardian over the last two and a half years, Airbnb and its hosts have been openly defying city laws against short-term rentals, as well as ruling by the Tax Collector’s Office that the city’s transient occupancy tax (aka hotel tax) of about 15 percent applies to short-term rentals.

Airbnb just began to collect that tax for its guests last week, but Campos argued that it should pay those back taxes going back to the city ruling in the spring of 2012 before the city legalizes and validates its activities. Company representatives have said its TOT collection would total about $11 million per year.

“I believe it’s only right that Airbnb make good on its back taxes before this legislation becomes law,” Campos said, arguing this $10 billion company is being rewarded for defying city regulators. “Do we give special treatment to a multi-billion-dollar company?”

But supporters of the legislation were anxious to move it forward, despite the dizzying series of complicated amendments, something Avalos said was unusual. “I’m surprised it was given the green light to leave today,” Avalos told reporters after the vote. “There was a lot of pressure to move it forward.”

Now the question will be whether the Planning Department can effectively enforce the regulations, particularly given that Airbnb has been unwilling to share data that might help in that effort. City officials have seemed powerless to enforce laws against short-term rentals that have been on the books for decades, even with rising public concern about the issue over the last year.

“I’m concerned that the legislation simply isn’t enforceable,” Kim said, arguing for the private right of action component that will be returning for board consideration in the coming months.

The other question is whether we’ve heard the end of an issue that has polarized city residents, or whether the coalition of opponents will succeed in a threatened initiative campaign to put more stringent new short-term rental regulations before voters next year.

Sup. Mark Farrell thanked Chiu for taking on the issue despite the intractable positions on both sides, saying, “I think everyone recognizes this to be a no-win situation.” Wiener are referenced the wide emotional divide on the issue: “The views around it are so intensely divergent.”

“The status quo is not working. This system of home sharing is happening in the shadows with little or no oversight,” Wiener said. “It’s time to bring it out of the shadows.”  

Even supporters of the legislation, such as Breed, said they would continue closely monitoring the situation to ensure the legislation helps curbs widespread abuses of lucrative short-term rentals, including landlords evicting rent-controlled tenants to use Airbnb and entrepreneurial tenants renting out multiple apartments through Airbnb, practices Chiu sought to curb.

“The one thing that I think everyone can agree upon is the status quo is not working,” Chiu said early in the hearing.

After the legislation — which comes back to the board for a perfunctory final vote next week and goes into effect in February barring legal challenges — Airbnb’s Public Policy Director David Owen told the Guardian, “It’s a tremendous step forward and we have a lot of work to do.”

Alerts: Oct 8-14, 2014

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WEDNESDAY 8

Supervisor/Assembly candidates offer views on city parks


Hall of Flowers, Golden Gate Park, SF. social@sfparkalliance.org. 6-8pm. Join candidates in supervisor Districts 2,4,6,8 and 10, who raised $5,000 for the Parks Alliance by the June 30th deadline, as well as candidates David Chiu and David Campos for Assembly District 17, in a public forum to hear all positions on issues such as parks funding. The San Francisco Parks Alliance and Friends of the Urban Forest are hosting this event.


THURSDAY 9

November 2014 Election: The Equity Debate


University of San Francisco, Maier Room, Fromm Hall (behind St. Ignatius church), 2497 Golden Gate, SF. www.usfca.edu/artsci/pols/events. 6-8pm, free. Candidates from three local races — Assembly District 17, Board of Supervisors District 10, and San Francisco Unified School Board — will discuss their platforms surrounding issues of inequality in San Francisco. The forum will be moderated by Professor James Taylor of the Department of Politics, and is sponsored by the Leo T. McCarthy Center for Public Service and the Common Good along with a host of community organizations.


Bridging the Gap — A Bay Guardian Transit Riders Union community forum


San Francisco LGBT Center, 1800 Market Street, SF. tinyurl.com/transithousing. 6-8pm. In collaboration with the San Francisco Transit Riders Union, the Bay Guardian hosts this community forum to explore a central issue facing our city. San Francisco needs more affordable housing, a robust public transit system, and fully funded social services if it is to remain an efficient, diverse, compassionate city. Unfortunately, some political leaders have pitted transportation and housing activists against one another in recent years, particularly so in the upcoming election on Propositions A, B, K, and L. We’ll examine why that happened, the political tactics that are being employed, and what can be done to bridge the gap along with a panel of activists and experts.

SATURDAY 11

Cleve Jones 60th birthday and San Francisco AIDS Foundation benefit


The Cafe, 2368 Market, SF. sfaf.org/morecleve. 9pm-2am, $30 general, $80 VIP. Celebrate Cleve Jones—activist, advocate, and SFAF co-founder—at a party hosted by celebrated drag performer Juanita MORE! Featuring the best dance tunes of the past four decades, special guest appearances by Dustin Lance Black and more, and a very special performance by actor and singer Jonathan Groff, all proceeds from this event will benefit the Cleve Jones Fund to end HIV transmission.

Opponents seek changes in Airbnb legislation before big hearing

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The broad and diverse coalition opposing Sup. David Chiu’s legislation to legalize and regulate Airbnb and other short-term housing rental companies — which the Board of Supervisors will consider tomorrow [Tues/7] — have boiled its many concerns down to three particular demands.

The coalition of tenant and landlord groups, affordable housing and neighborhood advocates, hotel workers and homeowners, and asundry other community leaders held another in a series of rallies on the steps of City Hall on Friday, again raising a variety of concerns.

But now, they’re penned a letter that has “three core recommedations.” The first is a call to limit rentals to 90 nights per year. That has been a feature of Chiu’s legislation from the beginning for unhosted rentals, given that it requires hosts to be permanent residents who live in their units at least 275 days per year, but the legislation still allows hosts to rent out a spare bedroom through Airbnb with few limits.

“If this is not done, the current proposal will allow year-round tourist rentals in every residential unit in the City which will drive up housing prices, create further economic incentive to increase evictions, further deplete housing stock for residents, and deteriorate the quality of life in our residential neighborhoods,” the coalition wrote in a letter to Chiu.

The supervisor had been a little cagey about the 90-day limit in the past, but when we pressed him on the issue during his endorsement interview with the Guardian last week, he confirmed that his legislation would allow spare bedrooms to be rented for more than 90 nights per year.

Chiu said his primary concern with the legislation was ensuring entire homes can’t be rented more than 90 nights per year, which he said was the main threat to the city’s rental housing stock, but he was open to amendments that would limit the rental of spare rooms, although that’s a practice he still wants to allow.

“We are grappling with the idea of what that balance is,” he told us.

The coalition is also asking for the legislation to explicitly ban short-term rentals of below-market-rate units and other affordable housing built with public subsidies. The third recommendation seeks to include “expedited private right of action” in the legislation, allowing neighbors and other third parties to file enforcement actions with the courts without waiting for city enforcement processes to slowly play out first.

That’s been a big problem recently as the San Francisco Tenants Union and other groups try to file lawsuits against landlords that have evicted rent-controlled tenants in favor of tourist rentals through Airbnb and other sites, but they’ve been prevented from doing so by foot-dragging in the Planning Department and Department of Building Inspection.

Members of this coalition will also present individual demands tomorrow, but the coalition also conveyed its opposition to supervisors approving this legislation tomorrow:

“We are unanimous in our position that the process being pursued by Supervisor Chiu is rushed. The City will live with the intended (and unintended) consequences of this legislation for many, many years. We implore you to amend the legislation with the recommendations articulated above, and as necessary postpone the Board hearing on this measure. This is one of the most important housing policy issues the City has faced in a decade, and the ‘solution’ by the Board of Supervisors must be done right and not hurried.”

The legislation will dominate the otherwise sparse agenda for tomorrow’s meeting, which starts at 2pm in City Hall. We’ll be live-tweeting the action, so follow along @sfbg or check back here for the full report. 

Prop. L puts cars over people

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By Fran Taylor

OPINION Just as climate change most affects people who contributed little or nothing to causing it, pollution and injury from traffic most affect communities least likely to create traffic. Nationally, people of color are four times more likely than whites to rely on public transportation. At the same time, African Americans have a pedestrian fatality rate 60 percent higher than that of whites. For Latinos, that rate is 43 percent higher.

Locally, Chinatown and the Tenderloin have some of the lowest rates of car ownership in San Francisco. Yet these poor neighborhoods suffer some of the highest rates of pedestrian injury and death, including a woman killed in a crosswalk at Stockton just last month.

Instead of acknowledging these inequities, the proponents of Proposition L on the November ballot have cast themselves as victims, claiming that pedestrian and bicycle safety improvements create impediments to their ability to drive fast and park easily.

But streetscape improvements don’t make it impossible to drive. They help make it possible to not drive. And the ability to get around without a car benefits everyone, as a matter of health and fairness.

Fewer speeding cars on the road means fewer injuries and deaths, which in San Francisco disproportionately affect people walking. Of the 19 traffic deaths so far in 2014, 13 have been pedestrians. In the wider Bay Area, these pedestrian deaths are almost twice as likely to occur in poor communities.

The Prop. L campaign claims that streetscape improvements worsen pollution by forcing drivers to idle engines and circle for parking. Free-flowing car movement is the measure’s goal. If fast traffic is so much healthier, freeways must be the healthiest of neighbors. Yet studies show that not only is asthma much more widespread near freeways, but uncontrolled asthma is twice as prevalent within two miles of that ideal zooming traffic. Meanwhile, lack of walkable access to schools and parks contributes to epidemic levels of obesity and diabetes, particularly in low-income populations and communities of color.

Medical costs throughout the city for pedestrian injuries alone amount to about $15 million a year, while the total annual health-related costs of traffic, including asthma and other conditions, come to $564 million, according to the San Francisco Department of Public Health.

The national average annual cost of owning a car is close to $10,000, likely more in San Francisco. Were families more easily able to reduce that cost by having one car instead of two or living car-free entirely, they would free up needed money for food, housing, and education. And that housing would be cheaper without parking requirements. The construction of off-street parking can add costs of up to 20 percent per unit. Prop. L demands more garages, so cars can have homes in a city where so many humans lack them.

The recent transformation of Cesar Chavez Street, led by the community group CC Puede, personifies the type of project Prop. L proponents object to. Changing a six-lane freeway on the ground did indeed slow traffic and remove some parking at intersections to accommodate pedestrian bulbouts and improve visibility, both proven safety fixes. It also made it easier for parents to cross the street with their children to Flynn and St. Anthony’s elementary schools. It made it safer for seniors and pregnant women to reach St. Luke’s Hospital. Bicycle ridership on the street has increased 400 percent. Lately, no cars have crashed into homes, a regular occurrence on the old six-lane speedway.

Prop. L proponents decry the loss of parking, but where are those spaces going? A parking lot at 17th Street between Folsom and Shotwell in the Mission is about to be ripped up to make a park designed in part by children living nearby. In a dense neighborhood with little greenery, half of the parking lot will give families crammed into crowded housing a place to walk to. The other half will eventually be used for affordable housing.

We could hardly have a clearer choice of priorities. Parking lots or parks? Parking lots or affordable housing? Prop. L is a vote for parking over people. Vote No on L.

Fran Taylor is cochair of CC Puede.

 

Investigation shows outsider ownership of SF’s luxury condos

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Former Bay Guardian editor and publisher Tim Redmond has a great new investigation on his 48Hills site showing how many new luxury condos in San Francisco are owned as investments by out-of-towners, puncturing the myth that unfettered market-rate housing development will help with the city’s affordability crisis. Check it out. 

Moderate politicians push “affordable housing” definition up to higher income brackets

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San Francisco, its General Plan Housing Element, and various city codes have always had a very specific definition of what they mean by “affordable housing”: homes that are affordable to those making 120 percent of area median income (AMI) and below, the kind that generally require public subsidies to build from scratch in San Francisco. That group is defined annually by the US Department of Housing and Urban Development using the latest data, and this year in San Francisco, it is defined as individuals making $81,550 or less year, or households of four people making $116,500 or less, according the Mayor’s Office of Housing and Community Development.

But Mayor Ed Lee and other neoliberal and pro-developer politicians and political groups in town have in recent years been trying to redefine what the city means by “affordable housing” to reach up to 150 percent of AMI, definitions that made their way into the Proposition K housing policy statement on the November ballot and into a City Hall hearing yesterday [Thu/25].

The Board of Supervisors Government Audit and Oversight Committee held a public hearing to respond to the San Francisco Civil Grand Jury report, “The Mayor’s Office of Housing: Under Pressure and Challenged to Preserve Diversity,” which called on that office to be more transparent and aggressive in addressing the city’s affordable housing crisis, writing “the need for public transparency and fair access to housing opportunities has never been greater.”

MOHCD Director Olson Lee agreed with almost all of the report’s recommendations, pledging to provide more information to the public and complete an overhaul of the department’s website by the end of the year, making it easier for the public to apply for subsidized housing and more easily track where public resources are being spent.

“We agree with the grand jury report globally,” Lee said at the hearing.

But two of the three supervisors on that committee used the occasion to push this redefinition of “affordable housing” in San Francisco, with Chair London Breed pressing Lee and MOHCD on what it’s doing to serve those higher income brackets who want the city’s help with housing.

“Even people at 150 percent AMI can’t afford to buy a median-priced home today,” Lee acknowledged, pledged his office’s resources to help address the problem.

Sup. Katy Tang also pressed the point, telling Lee that “to stretch it to 150 AMI is really important,” clearly defining what she meant when she said, “San Francisco needs to continue building and really accommodate family housing.”

While it may be true that with median home prices in San Francisco now reaching $1 million, an individual making $101,950 per year or family of four making $145,650 — that is, 150 percent of AMI — would be hard pressed to buy real estate in this booming housing market.

But it’s not like this relatively small group of people (refresher: “median” is the middle point, meaning half the citizens make 100 percent of AMI or below) is being forced out of the city, like those truly low-to-middle income people traditionally served by affordable housing.

Peter Cohen and Fernando Marti, co-directors of the Council of Community Housing Organization, tell us they’re concerned about this upward creeping definition of affordable housing, even though they strongly support Prop. K, which calls for 33 percent of housing to be affordable to 120 percent of AMI, but also for half of all housing to be affordable to those at 150 percent AMI and below.

They’re fine with the city doing what it can to encourage more housing affordable to those in the 120-150 AMI range, but they’re adamant that money from the Affordable Housing Trust Fund and other public resources don’t subsidize housing for that group.

“It’s going to be a continuing discussion,” Marti told us. “But legally, we can’t talk about city subsidies going into that sector.”

Hopefully, the transparency reforms that MOHCD is pledging will allow the public to make sure that upper-middle-class San Franciscans — the very people whose influx (encouraged by the city’s economic development policies) is driving up the cost of housing for everyone — aren’t also cannibalizing the city’s already inadequate affordable housing resources. 

Money for Muni

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news@sfbg.com

STREET FIGHT San Francisco’s November ballot is crowded. With 12 local measures and seven state measures, sifting through them can be daunting. Three local measures, Propositions A, B, and L, involve transportation and have great bearing on the city’s future.

Not to belittle the other ballot measures, some of which address critical health and housing problems, these three transit-related measures say a lot of how the city is addressing — and failing to address — the need for a sustainable transportation system.

 

TRANSPORTATION BOND

Prop. A is the most important of the three transportation measures on the ballot, but also the most difficult to pass because it requires approval from two-thirds of voters.

It would provide $500 million for Muni, street repaving, and pedestrian and bicycle safety projects. That’s a modest sum compared to the $10 billion the city should really be spending, but it would help make 15 of the city’s busiest transit routes 20 percent faster and more reliable.

Portions of the funds would go to modernizing Muni’s maintenance shops, which need upgraded ventilation, fueling, and washing facilities and to new elevators and passenger platforms to make Muni more accessible to the elderly and disabled. Prop. A’s campaign also touts $142 million going towards pedestrian, bicycle, and motorist safety in corridors where the most death and injury have occurred.

Prop. A should really be thought of as two parts, one good, one not so good. The first part involves up to $55 million in annual revenue coming from property assessments. Since Prop. A simply replaces retiring city debt, it does not raise property taxes, but rather it sustains existing rates.

This links property values to what makes property valuable in the first place — public investment in infrastructure. As long as Prop. A is used for those 15 Muni corridors and safer streets, it is sound public policy.

The second part of Prop. A involves bonds, or borrowing money and paying interest to financiers. This is a long-used method of infrastructure finance, and was in fact how Muni got started in 1909 when voters approved creating public transit. The taxation will pay off the capital debt.

But bonds are a funding scheme that involves interest and fees that go to Wall Street — not the most progressive approach to infrastructure finance. While no one can say for sure, some critics suggest up to $350 million in debt would be incurred over the life of the bond scheme, which means Prop. A is really an $850 million package.

Ultimately, this is a regressive approach to transport finance and needs to be replaced by a more pay-as-you-go approach.

We are stuck between a rock and a hard place on Prop. A. Floating this bond now would bring in money very quickly, improving everyone’s commute, especially lower- and middle-income transit passengers. If approved it will also leverage state and federal matching funds, such as new cap-and-trade funding, hastening shovel-ready projects that many San Franciscans are clamoring to get done.

Getting transportation projects going now is less expensive than waiting while construction costs climb. Prop. A funds vitally important transportation infrastructure projects and it deserves support.

 

GROWTH AND MUNI

While Prop. A deals with streets and capital projects for Muni, it can’t be used to fund acquisition of new vehicles or Muni operations. This is where Prop. B comes in because it specifically involves an annual set-aside of about $22 million from the city’s General Fund to provide new vehicles and operating funds.

Prop. B is a well-intentioned linkage of population growth to transit capacity. The money goes towards Muni capacity expansion, based on population growth over the past decade, would increase with population growth in future years, about $1.5 million per year based on past trends.

There’s no doubt that transportation is failing to keep up with San Francisco’s boom. New housing and offices are coming into neighborhoods where buses are already jam-packed and streets saturated with traffic. But there are a couple of problems with Prop. B.

First, Prop. B is promised as a short-term measure because the mayor can end this general fund set-aside if a local increase in the vehicle license fee is approved by voters in 2016. The VLF, which was gutted by Gov. Arnold Schwarzenegger in 2003, would bring in about $75 million to the city annually.

That the mayor would voluntarily (and it is the mayor’s discretion) sunset B in two years is a big “if” and voters are notoriously forgetful.

In the meantime, Prop. B does not come with a revenue source to account for this increasing set-aside for Muni, so something else in the General Fund must give. What that would be, nobody can say, but advocates for social service and affordable housing fear more vulnerable San Franciscans will be hurt in the 2015 city budget.

Given the incredibly slow city response to the gentrification and displacement crisis, their fears may be warranted.

 

GLOOMY REALITY

My hesitation about Prop. B and tepid support for Prop. A stem from a gloomy reality in San Francisco’s politics of mobility. Today, it is easier for politicians to raise transit fares on the working poor, divert funds from social services and housing, or incur massive debt through bonds than it is to raise taxes on downtown commercial real estate and charge wealthier motorists for their detrimental impact to the city and society — both of which would be fairer ways to finance transportation.

Twenty years ago, it was estimated that a modest tax assessment on downtown offices and their impact to the transportation system would bring in $54 million a year. Today, that would likely be well over $100 million annually. But with land-owning elites and tech barons calling the shots in City Hall, there is a de facto gag order on what would be the most progressive approach to Muni finance.

Meanwhile, had Mayor Ed Lee not pandered to wealthier motorists, Sunday metering would be providing millions annually in Muni operating fees. Sup. Scott Wiener, the author of Prop. B, and his colleagues on the board, were shamefully silent about blowing that $10 million hole in Muni’s budget. They were also silent or complicit in stopping expansion of SF Park, which is smart management of our streets and would provide millions more in operations funding for Muni without needing to dip into the city General Fund to plug gaps.

Meanwhile, congestion pricing — or charging drivers to access the most traffic-snarled portions of the city during peak hours — could bring in up to $80 million annually. Together with a reestablished VLF, that would simultaneously erase the need to do Prop. B and reduce our need to incur more wasteful debt.

Instead of bonds, Prop. A’s $55 million could be coupled with an annual downtown property assessment, an annual VLF, a congestion charging zone, and revenue from an expanded SF Park, the city could borrow less, manage traffic wisely, and keep transit capacity at pace with population growth. We could avoid raiding the General Fund to subsidize Muni operations and could reduce debt simultaneously.

Transit advocates are right to cry foul when other revenue sources have been removed from consideration, mostly because of gutless reluctance to challenge wealthy landowners and motorists. This is the crux of why transit advocates, backed into a corner by Mayor Lee’s repeal of Sunday meters and the VLF, are supporting Prop. B. The “B” in Prop. B basically stands for backfilling broken promises.

But ultimately, all of the supervisors, including Wiener, are complicit in the mayor’s mess. Why didn’t the supervisors speak up when Sunday metering was repealed? Why didn’t the supervisors insist on placing the VLF on this year’s ballot? With a two-thirds vote of the board, it would be on the ballot now. And unlike Prop. A, the VLF only needs a simple majority to pass.

And now, because the mayor and supervisors have pandered to motorists to the umpteenth degree, a small group of them feel even more emboldened and entitled to grab more. That takes us to Prop. L.

 

TRANSIT-LAST

Prop. L, which seeks to reorder transportation priorities in San Francisco, is awful. It comes from an angry, spiteful, ill-informed, knee-jerk lack of understanding of the benefits of parking management (which makes parking easier and more sensible for drivers). It is a purely emotional backlash that seeks to tap into anyone angry about getting a parking ticket.

Although a nonbinding policy statement, the basic demand of Prop. L is that the city change transportation priorities to a regressive cars-first orientation. It calls for freezing parking meter rates for five years while also using parking revenue to build more parking garages. The costs of these garages would dwarf parking revenue, and these pro-car zealots don’t say where these garages would be built, or that it would ultimately siphon more money from Muni.

Prop. L demands “smoother flowing streets,” which is a deceitful way of saying that buses, bikes, and pedestrians need to get out of the way of speeding car drivers who believe they are entitled to cross the city fast as they want and park for free. It conjures up a fantasy orgy of cars and freeways long ago rejected as foolish and destructive to cities.

Proponents on this so-called Restore Transportation Balance initiative don’t really care about “transportation balance.” When you consider the origins and backers of Prop L, it’s mainly well-to-do motorists with a conservative ideology about the car. These are the very same people who have opposed bicycle lanes on Polk, Masonic, Oak, and Fell streets, and throughout the city.

These are the very same people who decried expansion of SF Park, thus making it harder, to find parking, not easier. These are the same people who complain about Muni but offer zero ideas about how to make it better. These disparate reactionaries have banded together around their animosity toward cyclists and Muni.

In the 1950s, when the love affair with cars was on the rise, San Francisco had about 5,000 motor vehicles per square mile. To accommodate more cars, planners required all new housing to have parking, made it easy to deface Victorians to insert garages, and proposed a massive freeway system that would have eviscerated much of the city.

Thankfully, neighborhood and environmental activists fended off most of the freeways, but San Franciscans failed to really take on the car. So by 1970, despite the freeway revolts and commitment to BART, automobile density rose to over 6,000 cars per square mile.

By 1990, San Francisco had almost 7,000 motor vehicles per square mile, even as population leveled off.

The current density of cars and trucks — now approaching 10,000 per square mile — is one of the highest in the nation and in the world. To put that into context, Los Angeles has less than 4,000 cars per square mile, and Houston less than 2,000 per square mile, but these are largely unwalkable cities with notorious environmental problems.

Do San Franciscans want to tear apart their beautiful city to be able to drive and park like Houstonians?

If proponents of Prop. L were truthful about “restoring balance” they would instead advocate a return to the car density of the 1950s, when San Francisco had just under 5,000 motor vehicles per square mile, Muni was more stable due to fairer taxes, and many of the streets in the city had yet to be widened, their sidewalks yet to be cut back.

Prop. L is tantamount to hammering square pegs into round holes. Jamming more cars into San Francisco would be a disaster for everyone. Don’t be misled, Prop. L would make the city too dumb to move. It would deepen and confuse already vitriolic political fissures on our streets and it would do nothing to make it easier to drive or park, despite its intention.

Prop. L must not only lose at the ballot, it must lose big, so that maybe our politicians will get the message that we want a sustainable, equitable, and transit-first city.

Bridge the housing-Muni divide

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EDITORIAL One the most frustrating political conflicts in San Francisco this election season is the schism between sustainable transportation activists and affordable housing advocates, a split that unnecessarily divides the progressive movement and one that has been cynically manipulated by the Mayor’s Office and its political allies.

We at the Bay Guardian haven’t yet decided what position we’ll take on Props. A and B — both of which would give more money to the San Francisco Municipal Transportation Agency for Muni and other transportation needs — or Prop. K, the affordable housing measure that was heavily watered down by the Mayor’s Office. Our endorsements come out Oct. 8.

But we can say that we’ve been concerned with how housing and transportations needs have been pitted against one another — and by the political tactics that are being used to create that false choice in the minds of voters, often by those who have a financial self-interest in making misleading arguments.

San Francisco needs more affordable housing, a robust public transit system, and fully funded social services if it is to remain an efficient, diverse, compassionate city. We need all of those things, now, before we experience even more impacts from the rapid growth now underway.

Mayor Ed Lee chose to break his promise to place a local vehicle license fee increase on the fall ballot, so Sup. Scott Wiener and others placed Prop. B on the ballot instead. It would tie the city’s General Fund contributions to Muni to city population growth, but it would also allow the mayor to end that subsidy if voters approve the VLF increase in a future election.

Several local journalists have reported on the carrots and sticks that members of the Mayor’s Office have used to try to sink Prop. B and maintain affordable housing advocates’ support for Prop. K (see “Mayoral meltdown,” Aug. 5), pitting transportation and housing activists against one another, either by accident or design.

But San Francisco can’t afford this false dichotomy, and it’s high time to finally have this discussion openly and honestly. So the next Bay Guardian Community Forum — on Oct. 9 from 6-8pm in the LGBT Center, 1800 Market Street — will focus on bridging this gap. We’ll be inviting key players on both sides and we hope that you, dear readers, will join us as well.

The same players in this city who are urging San Francisco to rapidly grow as an economic and population center are sabotaging the political alliances and funding mechanisms that we need to handle that growth. It’s time for a forthright, public discussion about the city’s many long-term needs and how to finance them.

 

Still not sharing

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news@sfbg.com

As controversial legislation to legalize and regulate Airbnb and other short-term housing rental services operating in San Francisco headed for another contentious City Hall hearing on Sept. 15, the San Francisco Treasurer & Tax Collector’s Office quietly unveiled new policies and mechanisms for hosts to finally start paying long-overdue local taxes on their rentals.

Board of Supervisors President David Chiu’s legislation attempts to strike a balance between protecting housing for permanent city residents — including tenants in rent-controlled units who are being displaced in favor of visiting tourists — and allowing San Franciscans to sometimes rent out rooms through companies such as Airbnb. That practice has mushroomed during the Great Recession even though such short-term rentals of residential units have long been illegal in San Francisco (see “Into thin air,” 8/20/13).

Among other provisions, Chiu’s legislation would require hosts to register with the city and live in their units for at least 275 days per year (thus limiting rental nights to 90), create enforcement procedures for city agencies, and protect below-market-rate and single-room occupancy units from being used as short-term rentals.

But Airbnb has also been snubbing the city for more than two years since the Tax Collector’s Office held public hearings and concluded that short-term rental companies and their hosts are required to collect and pay the city’s Transient Occupancy Tax (aka, the hotel tax), a surcharge of about 15 percent on room rentals usually paid by visiting guests (see “Airbnb isn’t sharing,” 3/19/13).

After other media outlets finally joined the Bay Guardian in raising questions about the impact that Airbnb and other companies was having on San Francisco — and with cities New York City, Berlin, and other cities taking steps to ban short-term rentals — Airbnb announced in March that it would begin collecting and paying the TOT in San Francisco sometime this summer.

But that still hasn’t happened, even though Tax Collector Jose Cisneros recently unveiled a new website clarifying that Airbnb hosts must register as businesses and pay taxes and created a streamlined system for doing so. The office is even allowing Airbnb and other companies to register as “qualified website companies” that collect and pay these taxes on behalf of hosts.

“The law does apply to these transactions,” Cisneros told us. “And the set of requirements are the same for the hosts and the website companies.”

Airbnb didn’t respond to Guardian inquiries for this story.

Meanwhile, an unusually diverse coalition of critics continues to raise concerns about Airbnb and the regulatory legislation, including renter and landlord groups, neighborhood and affordable housing activists, labor leaders, and former members of the Board of Supervisors (including Chiu predecessor, Aaron Peskin) and Planning Commission. They penned a Sept. 15 to Chiu calling for him to delay the legislation.

“Individually and collectively, we have advanced nearly two dozen additional amendments that address the issues raised by short-term residential rentals. While we are not of one mind on every issue or every suggested amendment, we are unanimous in our belief that the process you are pursuing is rushed,” they wrote. “The City will live with the intended (and unintended) consequences of your legislation for many, many years.”

Sources in Chiu’s office had already told the Guardian that he planned to keep the legislation in committee for at least one more hearing so the myriad details can be worked out, as Chiu said at the hearing as well.

“We want to have the time to continue to vet and hear all of the perspectives, and at the end of the day what I hope to do is to be able to move forward and build incentives around something that is far better than our current status quo,” Chiu said at the hearing. “This is a very complicated issue, and we all know that we need to get this policy as right as we can.”

Planning Director John Rahaim conveyed concerns from the Planning Commission that the legislation beef up the city’s ability to regulate short-term rentals.

“The commission does believe that the law should be updated to create a legal avenue for those who do want to host,” Rahaim said. “However, currently there are about 5,000 units in the city engaging in short-term rentals. It’s very difficult to know if there are units not being lived in by a full-time resident.”

A long line of speakers wound completely around the packed chamber in City Hall, awaiting their turn to speak publicly to supervisors and city residents, from 20-somethings making a lives renting out their homes to longtime tenants fearing that home-sharing will hurt city’s character.

Airbnb was represented at the hearing by David Owen, a former City Hall staffer who is now director of public policy for the company, and he was publicly confronted by Chiu on the tax issue. Chiu criticized Airbnb for failing to start collecting those taxes as promised.

“As of now, we are extremely close and you will be hearing from us about that in the near future,” Owen said, provoking audible disbelief from many in the crowd. “We have been working diligently alongside the city. This is a complicated set of issues and those involved have all worked in earnest to facilitate this request.”

When Owen was asked about enforcement of the maximum number of nights a tenant has rented out his unit, he said Airbnb’s cooperation is “akin to the city asking Home Depot.com for a list of home care purchases to see if anyone had illegally renovated their bathroom.” But city officials say they need the company’s cooperation to address its impacts. “We don’t want data, just the number of nights per permanent resident so that we can ensure that the bad outcomes of this setup aren’t occurring,” Sup. Jane Kim said. “Airbnb profits from this industry, and therefore [is] accountable to the city.”

Tenants face absurd lawsuits as “low-fault” evictions increase

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An annual report issued by the Eviction Defense Collaborative (EDC) highlights some of the outrageous reasons landlords use to evict tenants. Since 2009, EDC reported, there’s been a 62 percent increase in the number of breach-of-lease cases citywide.

Violations cited in the report included offenses such as “parking outside the parking lines,” or even cooking during nighttime hours.

One tenant, Clifton Reed, was evicted along with his young family after a sudden $1,000-per-month rent increase, which the landlord claimed was for storing construction equipment in the garage of their Bernal Heights home, something they’d previously done without a problem. “We were tenants living in the neighborhood for 20 years,” Reed told the Guardian.

The family sought assistance from EDC, who fought the eviction charges and negotiated a settlement with the landlord.

The drawn-out eviction case eventually ended with an $8,500 settlement and a 90-day timeframe for him and his family to move out, Reed said. After evicting the other tenants in the building following Reed’s eviction, the landlord eventually sold the property for approximately $1.8 million. 

Reed, who now lives in Vallejo but still commutes to the city, said the recent wave of evictions in San Francisco has particularly impacted artists and musicians from his old neighborhood. “They’re targeting income levels, and musicians don’t make a lot of money,” he said. “It’s really a shame.”

According to the EDC report, 20 percent of evicted households assisted by the nonprofit legal aid group – which represented 94 percent of San Francisco tenants facing just-cause eviction lawsuits in 2013 – had at least one child under 18 years old.

Families weren’t the only disproportionately impacted group, as 88 percent of total tenant households targeted with eviction lawsuits were also low-income, defined as making at or less than $36,950 per year for an individual. And 29 percent of the eviction cases concerned tenants housed in units owned by landlords who receive city funding, such as supportive housing in single-room occupancy hotels.

The EDC report also signaled that San Francisco’s communities of color remain at the forefront of the eviction crisis. According to the report, although San Francisco’s black population is only 6 percent, people who identify as African American represented 29 percent of those impacted by eviction in 2013. Additionally, 40 percent of tenants evicted from the Bayview neighborhood identified as black or African American.

Non-English speakers were also targeted, as 22 percent of evictions from the Mission District impacted households who spoke a language other than English.

The rise in “low-fault” evictions in 2013 occurred on a parallel track with no-fault evictions, which have received a great deal of media attention. Evictions that are based on an alleged action or violation by a tenant, as opposed to no-fault evictions initiated under the Ellis Act, for instance, grant less time for a tenant to vacate their unit. They’re easier on landlord’s wallets and don’t restrict subsequent use of a unit.

Low-fault evictions, or minor breach-of-lease cases, are providing the ideal platform for landlords to oust their tenants while still claiming some type of violation, the report indicates. The lengthy, complicated suits are often difficult for tenants to defend themselves against.

The EDC report showed an absence of court appearances in 38 percent of the 3,423 Residential Unlawful Detainers cases in 2013, demonstrating that tenants did not respond to the eviction notice in within the five-day deadline. 

“Tenants just miss this narrow window,” said Tyler McMillan, executive director of the EDC. “It’s one of the shortest timelines in the court system.”

Eviction notices have demanded tenants leave in as little as 10 days, as was the case of EDC client Joann Agnew-Porter. Agnew-Porter’s daughter, who lived in the unit, was laid off her job and scraping by on a fixed income. Their rental building, Friendship Village, an affordable housing community in the Western Addition, had been paying back-rent, when suddenly the mother and daughter pair received an eviction notice, giving them 10 days to come up with $2,100 of back-rent or leave the premises.

“I couldn’t come up with that,” Agnew-Porter said. “We’ve always been good tenants; we’re working people, we haven’t had loud music or people hanging out outside, none of that,” she added. After receiving assistance from EDC, a court determined that the apartment manager had mistakenly charged them that amount of back-rent.

“The story of increasing “low-fault” evictions is one that impacts some of San Francisco’s most vulnerable communities and ultimately threatens the diversity that makes San Francisco so unique,” the EDC report said.

The full report is available online at the EDC website here.

Realtors give $600,000 to defeat anti-speculation tax

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Two Realtor groups have dumped nearly $600,000 into the campaign against Prop. G, the tax on flipping properties to discourage real estate speculation and evictions in San Francisco, a massive early donation that could signal the beginning of a campaign onslaught by the Realtors.

A campaign group calling itself Stop the Housing Tax, No on G, and Coalition of Homeowner, Renter, and Real Estate Organizations received a $425,000 donation from the California Association of Realtors Issues Mobilization PAC on Sept. 4 and $170,000 from the San Francisco Association of Realtors on Aug. 26, according to filings with the Ethics Commission.

Apparently, the Realtors recognize they have a strong financial stake in encouraging the flipping of houses within one to five years of being sold, on which the measure would levy a graduated tax of 24-14 percent in order to discourage. Such quick turnarounds often involve evicting tenants in order to increase a home’s market value.

Representatives for the Realtors didn’t immediately return our calls, but Sara Shortt, executive director of the Housing Rights Committee of San Francisco and a supporter of Prop. G, told us the huge donations indicate what’s really driving opposition to the measure.

“Make no mistake: the polished No on G mailer you receive spouting lies such as ‘G will hurt homeowners’ is coming directly from the mouths of the Realtors, the very people who have the most to gain by continuing to allow for evictions and flipping of apartments,” Shortt told the Guardian. “These are the same players who dumped piles of money to kill Ellis Act reform in Sacramento. And these are the same people who are making windfall profits by evicting low income tenants in San Francisco and wreaking havoc on our neighborhoods.”

UPDATE: Jay Cheng with the SF Association of Realtors just sent us an email that said, “We are working to raise funds to defeat the tax on housing, which will make San Francisco even less affordable to middle class families. We’re proud the people who know the most about housing are stepping up to defeat this tax, which will only backfire and make housing more expensive.”

Know the most, or profit the most? We asked a follow-up question about whether financial self-interest prompted the donations, and we’ll update this post if and when we hear back.  

Racing for solutions

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rebecca@sfbg.com

Although there are five seats on the San Francisco Board of Supervisors up for reelection this fall, incumbents face few contenders with the requisite cash and political juice needed to mount a serious challenge. The one race that has stirred interest among local politicos is the bid to represent District 10, the rapidly changing southeastern corner of San Francisco that spans the Bayview, Hunters Point, Visitacion Valley, Dogpatch, and Potrero Hill neighborhoods.

Sup. Malia Cohen, who narrowly beat an array of more than a dozen candidates in 2010, has raised way more money than her best-funded opponent, progressive neighborhood activist Tony Kelly, who garnered 2,095 first-place votes in the last D10 race, slightly more than Cohen’s, before the final outcome was determined by ranked-choice voting tallies.

For the upcoming Nov. 4 election, Cohen has received $242,225 in contributions, compared with Kelly’s $42,135, campaign finance records show. But Kelly, who collected the 1,000 signatures needed to qualify for the November ballot and qualified for public financing, has secured key progressive endorsements, including former Mayor Art Agnos, Assemblymember Tom Ammiano, Sups. David Campos and John Avalos, and the Potrero Hill Democratic Club.

Others who’ve filed to run for this office include Marlene Tran, a retired educator who has strong ties to families in the district, especially in Visitacion Valley, through her teaching and language-access programs (she’s known by kids as “Teacher Tran”); Shawn Richard, the founder of a nonprofit organization that offers workshops for youth to prevent gun violence; and Ed Donaldson, who was born and raised in Bayview Hunters Point and works on economic development issues. DeBray Carptenter, an activist who has weighed in on police violence, is running as a write-in candidate.

But the outcome in this dynamic district could be determined by more than campaign cash or political endorsements. That’s because the D10 supervisor faces the unique, unenviable challenge of taking on some of the city’s most intractable problems, which have disproportionately plagued this rapidly changing district.

Longstanding challenges, such as a high unemployment and crime rates, public health concerns, social displacement, and poor air quality, have plagued D10 for years. But now, fast-growing D10 is becoming a microcosm for how San Francisco resolves its growing pains and balances the interests of capital and community.

 

MIX OF CHALLENGES

While candidate forums and questionnaires tend to gauge political hopefuls on where they draw the line on citywide policy debates, such as Google bus stops or fees for Sunday parking meters, neighborhood issues facing D10 have particularly high stakes for area residents.

While other supervisors represent neighborhoods where multiple transit lines crisscross through in a rainbow of route markers on Muni maps, D10 is notoriously underserved by public transit. The high concentration of industrial land uses created major public health concerns. A Department of Public Health study from 2006 determined that Bayview Hunters Point residents were making more hospital visits on average than people residing in other San Francisco neighborhoods, especially for asthma and congestive heart failure.

Unemployment in D-10 hovers near 12 percent, triple the citywide average of 4 percent. Cohen told us efforts are being made on this front, noting that $3 million had been invested in the Third Street corridor to assist merchants with loans and façade improvements, and that programs were underway to connect residents with health care and hospitality jobs, as well as service industry jobs.

“The mantra is that the needle hasn’t moved at all,” Cohen noted, but she said things are getting better. “We are moving in the same downward trend with regard to unemployment.”

Nevertheless, the high unemployment is also linked with health problems, food insecurity — and violence. In recent months, D10 has come into the spotlight due to tragic incidents of gun violence. From the start of this year to Sept. 8, there were 13 homicides in D10.

Fourth of July weekend was particularly deadly in the Bayview and D10 public housing complexes, with four fatal shootings. Cohen responded with a press conference to announce her plan to convene a task force addressing the problem, telling us it will be “focused on preventing gun violence rather than reacting to it.”

The idea, she said, is to bring in expert stakeholders who hadn’t met about this topic before, including mental-health experts and those working with at-risk youth.

“I think we need to go deeper” than in previous efforts, Cohen said, dismissing past attempts as superficial fixes.

But Cohen’s task force plan quickly drew criticism from political opponents and other critics, including Sheriff Ross Mirkarimi, who dismissed it as empty rhetoric.

“How many people are cool with yet another task force?” Kelly said in a press statement challenging the move. “We can’t wait any longer to stem the deadly tide of violence in District 10. Supervisor Cohen’s task force won’t even propose solutions till 2017. We can’t wait that long.”

Kelly told us he’s formulated a five-point plan to tackle gun violence, explaining that it involved calling for a $10 million budget supplemental to bolster family services, reentry programs, job placement, and summer activities aimed at addressing poverty and service gaps. Kelly also said he’d push for a greater emphasis on community policing, with officers walking a beat instead of remaining inside a vehicle.

“How do you know $10 million is enough?” Cohen responded. “When you hear critics say $10 million, there is no way to indicate whether we’d need more or less.” She also took issue with the contention that her task force wouldn’t reach a solution soon enough, saying, “I never put a timeline on the task force.”

Cohen also said she wanted to get a better sense of where all of the past funding had gone that was supposed to have alleviated gun violence. “We’ve spent a lot of money — millions — and one of the things I am interested in doing is to do an audit about the finances,” she said.

She also wants to explore a partnership with the Guardian Angels, community volunteers who conduct safety patrols, to supplement policing. Cohen was dismissive of her critics. “Tony was not talking about black issues before this,” she said. “He hasn’t done one [gun] buyback. There’s no depth to what any of these critics are saying.”

Tran, who spoke with the Guardian at length, said she’d started trying to address rampant crime in Visitacion Valley 25 years ago and said more needs to be done to respond to recent shootings.

“There was no real method for the sizable non-English speaking victims to make reports then,” Tran wrote in a blog post, going on to say that she’d ensured materials were translated to Chinese languages to facilitate communication with the Police Department. “When more and more residents became ‘eyes and ears’ of law enforcement, community safety improved,” she said.

Richard, whose Brothers Against Guns has been working with youth for 20 years and organizing events such as midnight basketball games, said he opposed Cohen’s task force because it won’t arrive at a solution quickly enough. He said he thought a plan should be crafted along with youth advocates, law enforcement, juvenile and adult probation officers, and clergy members to come up with a solution that would bolster youth employment opportunities.

“I’ve talked with all 13 families” that lost young people to shootings this year, Richard said, and that he attended each of the funerals.

 

CHANGING NEIGHBORHOOD

Standing outside the Potrero Terrace public housing complex at 25th and Connecticut streets on a recent sunny afternoon, Kelly was flanked by affordable housing advocates clutching red-and-yellow “Tony Kelly for District Supervisor” campaign signs. The press conference had been called to unveil his campaign plan to bolster affordable housing in D10.

Pointing out that Cohen had voted “no endorsement” at the Democratic County Central Committee on Proposition G — the measure that would tax property-flipping to discourage real estate speculation and evictions — Kelly said, “This is not a time to be silent.”

While Cohen had accepted checks from landlords who appeared on the Anti-Eviction Mapping Project’s list of worst offenders for carrying out Ellis Act evictions, Kelly said he’s pledged not to accept any funding from developers or Ellis Act evictors. Asked if any had offered, Kelly responded, “Some. They’re not knocking down my door.”

Cohen told us that she hadn’t supported Prop. G, a top priority for affordable housing advocates, because she objected to certain technical provisions that could harm small property owners in her district. As for the contributions from Ellis Act evictors, she said the checks had been returned once the error was discovered. Her formal policy, she said, is not to intentionally take money from anyone involved in an Ellis Act eviction.

Speaking outside Potrero Terrace, Kelly said he thought all housing projects built on public land should make at least one-third of their units affordable to most San Franciscans. He also said renovation of public housing projects could be accelerated if the city loaned out money from its $19 billion employee retirement fund. Under the current system, funding for those improvements is leveraged by private capital.

Mold, pests, and even leaking sewage are well-documented problems in public housing. Dorothy Minkins, a public housing resident who joined Kelly and the others, told us that she’s been waiting for years for rotting sheetrock to be replaced by the Housing Authority, adding that water damage from her second-floor bathroom has left a hole in the ceiling of her living room. She related a joke she’d heard from a neighbor awaiting similar repairs: “He said, Christ will come before they come to fix my place.”

Lack of affordable housing is a sweeping trend throughout San Francisco, but it presents a unique challenge in D10, where incomes are lower on average (the notable exceptions are in Potrero Hill, dotted with fine residential properties overlooking the city that would easily fetch millions, and Dogpatch, where sleek new condominium dwellings often house commuters working at tech and biotech firms in the South Bay).

Home sale prices in the Bayview shot up 59 percent in two years, prompting the San Francisco Business Times to deem it “a hot real estate market adorned with bidding wars and offers way above asking prices.”

One single-family home even sold for $1.3 million. Historically, the Bayview has been an economically depressed, working-class area with a high rate of home ownership due to the affordability of housing — but that’s been impacted by foreclosures in recent years, fueling displacement.

Although statistics from the Eviction Defense Collaborative show that evictions did occur in the Bayview in 2013, particularly impacting African Americans and single-parent households, Cohen noted that evictions aren’t happening in D10 with the same frequency as in the Tenderloin or the Mission.

“When it comes to communities of color in the southeast, it’s about foreclosure or mismanagement of funds,” explained Cohen.

She said that a financial counseling services center had opened on Evans Street to assist people who are facing foreclosure, and added that she thought more should be done to market newly constructed affordable units to communities in need.

“There’s an error in how they’re marketing,” she said, because the opportunities are too often missed.

But critics say more is needed to prevent the neighborhood from undergoing a major transformation without input from residents.

“This district is being transformed,” Richard said. “A lot of folks are moving out — they’re moving to Vallejo, Antioch, Pittsburg. They don’t want to deal with the issues, and the violence, and the cost.”

At the same time, he noted, developers are flocking to the area, which has a great deal more undeveloped land than in other parts of the city.

“The community has no one they can turn to who will hold these developers accountable,” he said. “If the community doesn’t have a stake in it, then who’s winning?”

 

Ranks of opposition to 16th and Mission development grow as Plaza 16 pushes forward

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In the sea of nonprofit leaders, career organizers, and rabblerousers, one old man put the Mission’s struggle into context, last night [Thu/28]. It was a majority Latino district even as recently as the ’90s, he told the crowd gathered in St. John’s Episcopal Church last night. But now: “Here in the Mission, I can count the Latinos on my hands.”

The stakes are high as the Plaza 16 coalition raised its concerns about a proposed housing project that would tower over the BART plaza at 16th and Mission last night, with representatives from nonprofits and other organizations around the city gathering to seek more community support for the struggle. 

The 10-story residential behemoth proposed by Maximus Real Estate Partners is hotly contested. Organizers of Plaza 16  (so named for the plaza across from the development at 16th and Mission), say the development has only 42 proposed affordable housing units which would be built on site, and those aren’t even a sure thing. The rent for the rest of the building’s units range between $3,500 to $5,000 a month. Gabriel Medina, policy manager of the Mission Economic Development Agency, stated the obvious: That’s a price most current Mission residents can’t afford. 

“Does that sound like units for the Mission community?” Medina asked the crowd. “No!” they shouted in reply. 

Of course, the development isn’t meant for Mission residents, but for the incoming wave of upper middle class workers who can afford $42,000 a year in rent. But that sticker shock is only part of the problem.

Many supply-side housing development advocates argue San Francisco needs to build, build, build in order to offer enough housing supply to bring rental prices down (a theory many progressives disagree with). But last night, the focus was on exactly what type of construction the city is encouraging, and how that will hurt the Mission in the short term. 

I was born and raised here on 16th and Mission,” Elsa Ramos, 23, told the crowd, microphone in hand. “There’s no way for us to have another space. We’re a family of nine now, I just saw the birth of my first niece.”

Ramos is worried the Maximus development would drive up the price of her family’s unit, or lead to their eviction. When speaking with the Guardian, Ramos said her father has diabetes, and depends on city services for his healthcare. Her siblings all depend on city aid as well. Ramos’ fears were echoed by representatives of the nonprofits present, but scaled to the entire neighborhood. 

If everyone is evicted, we’re going to lose our client base,” Maria Zamudio, an organizer from Causa Justa/Just Cause, told the crowd. “We will not have clients to provide safety nets for. There will be no communities of color.”

Some of the nonprofit representatives present expressed concern with Plaza 16’s plan. “You can’t just show them you’re opposed,” one man said. “You have to show them your vision.”

Plaza 16 representatives said they want to see the Maximus project abandoned entirely. Some executives from Maximus were involved with predatory lending schemes, they allege. They also allege Maximus executives were partly responsible for the Parkmerced debacle, where many rent-controlled units were seemingly lost, the subject of a controversial court case. Maximus representatives didn’t return a Guardian call for comment. 

Though there was some dissent, ultimately the nonprofits gathered expressed unified support. The spectre of forcing longtime local residents into suburban ghettos lingered over the discussion.

Ferguson is [an example of] suburbanized poverty and segregation,” Medina told the Guardian. It’s one thing living in a low-income community in a city, he said, where nonprofits can lend aid like tutoring, shelters, free food or legal services. But like Ferguson, the suburban ghettos of the Bay Area often lack those safety nets, he said.

It seems the nonprofits present got the point, as over 15 new organizations joined the Plaza 16 coalition last night.

Midway through the meeting, Zamudio handed out cards to each of the nonprofit representatives present. A red card meant the organization would now support the fight against Maximus, an orange card would signify a need to stay neutral, a green card meant Maximus support, and a yellow card would signal an undecided vote.

When asked who was in support of the coalition, a sea of hands with red cards raised up high.

They say it’s a gold rush. This isn’t a gold rush,” Carlos Gutierrez from HOMEY told the crowd. “This is where people live, these are people’s homes.”

Lee and Pelosi talk middle class jobs in unequal SF

House minority leader Nancy Pelosi (D-SF) joined Mayor Ed Lee at a press conference yesterday [Tue 12] at Yerba Buena across from the construction site of a Central Subway station. It was billed as an event highlighting how “San Francisco has been in the lead” on creating middle-class jobs, investing in transportation, and ensuring fair wages for workers.

But as these words in the press advisory leapt out at us, we at the Bay Guardian responded with raised eyebrows. Really? It has?

The point of this media appearance, we learned upon arrival, was to promote House Democrats’ newly unveiled Middle Class Jumpstart agenda – a legislative package floated to bolster the middle class, in advance of the upcoming midterm election. Pelosi and Lee also sought to highlight the Central Subway as a transportation infrastructure project that’s spurring middle-class job creation (The $1.6 billion Central Subway project has also spurred mystifying questions as to how the money is actually being spent, but that’s a different story).

Creating middle class jobs

The message was clear: San Francisco Democrats are here to support the middle class. But that’s a tough sell. Everyone knows that the middle class is vanishing from San Francisco as skyrocketing property values make it increasingly untenable for middle-income earners to reside here.

Instead, recent studies have shown that what’s really on the rise is income inequality: Even the San Francisco Chronicle pointed out that the city’s own customized Gini Coefficient, a formula used to measure wealth distribution, puts San Francisco on par with Rwanda in terms of its economic inequality.

Earlier this year, a Brookings Institute report found that the income gap between the city’s rich and poor is growing faster than in any other US city.

We asked Lee about that growing income inequality trend at the press conference.

Here’s what he said in response: “These union jobs – and [Building Trades Council Secretary-Treasurer] Mike Theriault knows this better than anybody else here – are middle class jobs for all workers that just want to earn their way forward. And I think the more projects that we have that are infrastructure related, that are transportation related, that are water infrastructure related … are all part of reestablishing and making sure that we don’t lose that middle class. … I think in San Francisco, we simply need to do more, and part of my responsibility is to build enough housing aimed at that sector, along with helping our low-income families.”

So if you want to be on a public-works construction crew, there may be hope. Except if you live in the Bayview, where unemployment stands at a stark 17 percent as compared with the citywide level of 4.5 percent, where it appears these opportunities still aren’t resulting in job creation.

That Lee mentioned building new housing is interesting, too, given that he recently came under fire by for intervening to weaken an affordable housing measure proposed by Sup. Jane Kim for the November ballot. His agenda has sought to advance a goal of building 30,000 new housing units, but Kim’s proposal would have further strengthened the city’s commitment to building affordable housing.

Investing in transportation 

Central Subway construction may well have created union jobs – but the decision to emphasize transportation funding as a solution for saving San Francisco’s middle class seems to ignore Lee’s backlash against San Francisco Sup. Scott Wiener for advancing a ballot measure to automatically increase funding for Muni in correlation with population growth, a significant public transit investment.

As the Guardian previously reported, Lee went so far as to issue memos calling for possible budget cuts as payback for Wiener’s bid to increase transit funding. But when we asked the mayor what his position was on the measure, which will appear on the ballot as Proposition B, he said he didn’t have a position on it.

“My big focus on transportation is trying to get the $500 million Proposition A because that requires two-thirds, which his does not, and I need to focus my full attention on passing that transportation bond,” Lee told us. “I’m not going to spend a whole lot of time on Proposition B, to be quite candid with you. … At this point, I’m not prepared to [take a position] because I don’t want it to be confusing for the public … and in a few months, I think you’re going to see some departments have to come back with revised budgets, to the non-delight of nonprofits, and programs that we had all agreed to fund.”

Ensuring fair wages for workers

Throughout the press conference, Lee and Pelosi repeatedly trumpeted a November ballot measure that seeks to raise the city’s minimum raise to $15 an hour by 2018. But it should be noted that this measure is a watered-down version of an earlier proposal put forward by a progressive coalition that hoped to get workers $15 an hour a year earlier.

It was scaled back after Lee convened a stakeholder dialogue to hash out a “compromise” measure, ostensibly to avoid a ballot battle between the bolder progressive measure and a competing proposal that business interests had contemplated rolling out to thwart the passage of a wage hike they deemed unacceptable. Technically, the measure headed to the ballot still holds the promise of designating San Francisco as having the highest nationwide minimum wage. But as a point of comparison with other cities where minimum-wage hikes are moving forward, median rent in Seattle is $1,190 – while median rent in San Francisco is $3,200. 

Pelosi: “Income inequality is a reality”

Finally, in response to our question on income inequality, Pelosi also decided to weigh in, delivering a very depressing history lesson.

“The income inequality is a reality, it’s a growing gap, it’s something that must be addressed,” she said, mentioning a proposed change to the federal tax code that would prevent CEOs from taking tax write-offs if they increased CEO pay by $1 million annually without also increasing workers’ wages.  “What’s happening now, it’s important to note, this is structural,” Pelosi said. “It’s not anecdotal. It’s real. Go back 40 years ago, the disparity between the CEO and the workers was about 40 times. … And as productivity rose, CEO pay rose, and workers’ pay rose. … That was called stakeholder capitalism.

“Somewhere around a dozen or so years ago, or maybe nearly 20, it became shareholder capitalism, which only had one thing: The bottom line. And that means that now, as productivity rises, workers’ wages stagnate and the CEO’s goes up like this.” Here Pelosi made a gesture indicating a sharp upward increase. “Now it’s about, I say 350, others say 400 times, the CEO pay versus the worker. It’s a right angle going in the wrong direction. It must be addressed.”

So there you have it, straight from Pelosi: CEOs who used to make 40 times their workers’ pay now earn 10 times more than that, while wages stagnate and the cost of living continues to rise. And leading San Francisco politicians are standing in front of the Central Subway construction site to say that projects like this, coupled with a provision to encourage CEOs to remember the little people when they get million-dollar raises, will restore the middle class.

Thank goodness the Democrats are looking out for the vanishing middle class in San Francisco and other cities. Don’t you feel better?

San Francisco rent explosion: Median rent for two-bedroom apartment tops $4K

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Hold onto your butts, a new study on San Francisco’s rental market (yes another one) reveals the city’s newest most expensive neighborhoods. 

Priceonomics went pretty darn viral last year upon release of its first study of San Francisco’s rental explosion, and round two is certain to blast through SF social media as well. And deservedly so, as the new high rental numbers are staggering.

Median rent for a one-bedroom apartment in San Francisco is now $3,120. The median rent for a two-bedroom is now $4,000, and the median rent for a three-bedroom is $4,795, Priceonomics found.

It’s not a wonder widespread evictions are sending protesters onto the streets (and into the offices of real estate agents). The numbers are a good indicator of why any eviction from a rent-controlled unit today is also an eviction from San Francisco entirely: prices are just too damn high to find a new apartment at a comparable rate. 

The study breaks the data down by neighborhood. Hayes Valley topped the list, with a median rent of $3,750 for a one-bedroom apartment. The Financial District and the Castro were second and third most expensive, with the Bayview coming in last at $1,425 a month. 

neighborhoods

The study also noted that historically poor areas (derisively termed “backwaters”) have jumped in price, largely in part due to an influx of tech workers and their shiny UFO-like private shuttles. 

As the rents rise and turmoil bubbles over evictions, city legislation like Supervisor Jane Kim’s Housing Balance Measure was defanged by Mayor Ed Lee during negotiations over the past month. Still, there is some hope on the November ballot for relieving San Francisco’s housing crisis. Proposition G, the Anti-Speculation Tax, would discourage speculators from “flipping” properties for a profit by taxing them harshly. 

Of course that’s no silver bullet, and San Francisco will need to take a hard look at its affordable housing policies to stop these prices from rising, rising, rising. 

It seems like they couldn’t possibly go up higher, but then again, we always think that, don’t we? 

For more on Priconomics’ findings, check out the article here

rental map

Click the map for a higher-res version.

Real estate speculators physically push out Ellis Act eviciton protesters

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Native San Franciscan Benito Santiago, 64, joined a protest Aug. 12 in an attempt to remind his evictors that he’s a human being – not a roadblock to profit.

Santiago is facing an Ellis Act eviction from his 47-year Duboce Triangle home, where his monthly rent is just below $600.

Clad in a stylish blue fedora, Santiago and a dozen or so protesters filed into Vanguard Properties to deliver a letter asking Vanguard co-founder Michael Harrison to rescind his eviction. Harrison initiated an eviction proceeding against Santiago last December through his corporation, Pineapple Boy LLC. But by the end of the protest, Santiago and other tenant activists were physically pushed out of the building by Vanguard representatives in a show of aggression.

Before it got to that point, protesters called out Harrison for exploiting the Ellis Act for profit.

From the letter:

“We do not believe that you, Michael Harrison, are ‘going out of business’ which is the purpose of using the Ellis Act. We know that instead you are exploiting a loophole in state law for your greed.”

Suffice to say, Vanguard representatives didn’t accept the letter. But the message still got across: The protesters brought a bullhorn.

“My name is Benito Santiago,” Santiago blared, standing at the front desk, but was soon interrupted. A young-looking man in a grey suit approached protesters and asked them to leave.

“I’m calling the San Francisco police,” he said. Santiago may have approached the business with a bullhorn, but he has much to lose. 

While Vanguard may perceive Santiago merely as someone who doesn’t offer monetary value, he’s of much value to the developmentally disabled children he teaches at San Francisco Unified School District. 

The protesters intended to make these points to the folks at Vanguard. But before words could be exchanged, a crowd of Vanguard workers (real estate agents or employees, perhaps?) swooped in and physically carried out the protesters.

Fred Sherbun-Zimmer held her protest sign and chanted as one Vanguard agent placed hands on her back and swiftly pushed her out. Peter Menchini, a videographer, held his camera high and away from the snatching hands of real-estate experts turned vigilantes. Poet and activist Tony Robles had a paper slapped out of his hand by a Vanguard employee, before protesters were pushed out in a wave behind him.

Vanguard Properties Employees Assault Photographers & Activists 12 Aug 2014 from Peter Menchini on Vimeo.

 

 

As you can see from the video, things turned downright nasty as the real-estate representatives shoved and pushed the anti-eviction protesters as well as journalists there to document the event. (They even tried to yank my phone out of my hand.)

By the time the SFPD arrived, things had settled down. No arrests were made, and after a few sidewalk declarations by bullhorn, the protesters cleared the scene.

Afterwards, Santiago told us his housing prospects aren’t looking good. The Bill Sorro Housing Program helped him file many affordable housing applications, but he hasn’t gotten any word back yet. The rent he pays now eats up a hefty chunk of his paycheck, leaving little for basic expenses by the end of the month.

“I’m getting lots of positivity from family,” he said. And he does have an extension, until December, to find a new apartment. But, he noted, with median rents almost reaching $4,000 in San Francisco (they’re actually at $3,200, but that’s still bad), his chances of staying in the city are slim.

“I might be bad at math,” he told us, “but that seems like shooting for the moon.”

Vanguard Properties co-founder Michael Harrison was dubbed a “property flipper” by the Anti-Eviction Mapping Project. 

From its brief on Harrison:

Michael Harrison is the co-founder of Vanguard Properties, where he specializes in “residential investment properties.” He is a property flipper: his shell company Pineapple Boy LLC bought the building in November 2013 and tried to evict Benito and the two other tenants immediately. Vanguard Properties is currently involved in a number of luxury property developments in the Mission District and Duboce Triangle area including the development at 19th and Valencia that in February 2014 set record sale prices for the neighborhood. 

Santiago did have some flickering hope when an in-law unit behind a garage next door went on the market for rent. His hope was deflated, though, when his friend told him the rent for the single room.

“Eduardo said, ‘guess how much it is?'” Santiago told us. “It’s going for $4,000 a month.” 

Chinese youth rally for a brighter future

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High school students with Youth Movement of Justice Organizing (Youth MOJO), a teen leadership program affiliated with the Chinese Progressive Association, rallied at San Francisco City Hall Aug. 7 in a show of support for two citywide measures slated to appear on the November ballot.

The first would raise the city’s minimum wage to $15 an hour by 2018. The second, known as the anti-speculation tax, would impose a steep financial penalty on real estate investors who sell apartment buildings within five years of purchase, an effort to reverse the rising trend of Ellis Act evictions and limit skyrocketing rental prices.

High school student Alice Kuang, who has been active with Youth MOJO since last year, said she felt the effort to preserve affordability was critical for Chinese families who typically earn low wages. “I lived in an SRO in Chinatown for 13 years,” she explained, referring to a single-room occupancy hotel, a dormitory-style housing complex. Throughout the city, thousands of low-income tenants rely on SROs for affordable housing, but these units have been subjected to price increases and have started to become lost as affordable housing stock when they’re listed as short-term rentals on Airbnb.

“In the SRO, it was like one big community,” Kuang said. “Everyone supported each other. Like my mom knew exactly who was boiling water and then, to make sure the water didn’t spill over, she would run up to knock on people’s doors and be like, hey, your food’s done. It was a really strong community. I remember living there since I was born. It was a very small room. The four of us lived in it — we had a bunk bed, and another bunk bed, basically.”

Jessica Ng, a recent high school graduate and Youth MOJO member, said she was focused on advocating for the minimum wage proposal. “One of my parents became unemployed last year so it really took a toll on me, and made me realize that I have to also help,” she said, “like paying my part of the bill, or paying for groceries even.”

She said an internship with Young Asian Women Against Violence helped her earn some supplementary household income. “When I started getting a paycheck every three weeks or so, I started to pay my part of the bill,” she said. “With an increase in the minimum wage, it would really help with people who are my age who are going to college and want to help their families.”

 

Chiu’s proposed Airbnb regulations clear Planning Commission

Board President David Chiu’s proposed legislation regulating short-term rentals facilitated by tech companies Airbnb and VRBO won approval from the San Francisco Planning Commission on Aug. 7.

At the start of a public hearing, Chiu gave an overview, explaining that it would allow permanent residents – defined as San Franciscans dwelling in the city for at least nine months out of the year – to legally post their residences for short-term rent up to 90 days out of the year, legitimizing a practice that is technically prohibited under a city law prohibiting rentals of less than 30 days.

Under the proposed regulations, hosts would be required to register with the city, pay all associated taxes and sign up for liability insurance.

Anyone in violation, for example by posting a unit on Airbnb.com without registering, could be subjected to fines. While Chiu noted that he thought short-term rentals ought to be regulated to limit the threat Airbnb rentals pose to affordable housing in pricey San Francisco, he sought to strike a balance, saying, “Home sharing has allowed struggling residents to live in our expensive city.”

Public comment on the measure lasted for several hours. A host of speakers came out to share stories about how short-term rentals had helped them earn supplementary income and remain in San Francisco (as the Guardian previously reported, Airbnb sought to line up supporters via an online campaign effort called Fair to Share).

Yet opponents of the measure raised concerns that the new rule legitimizing short-term rentals via Airbnb could exacerbate San Francisco’s tremendous affordability crisis, by allowing residential spaces to be further commodified.

“There’s no hope we’re going to be able to control the adverse impacts of this legislation,” said Doug Engmann, a former planning commissioner. “This ill-conceived way of rezoning the city … causes all sorts of problems about how you’re going to be able to regulate this going forward.”

Ian Lewis, of hotel workers’ union Unite Here Local 2, warned of the impact on those employed by the city’s hotel industry.

“This legislation in one fell swoop is a green-light to legalizing short-term rentals,” said Lewis. “No one is more affected by this than hotel workers.”

Land use attorney Sue Hestor warned that Mayor Ed Lee’s proposal to construct 30,000 housing units “will be a farce … without a requirement that they really be rented or occupied as housing,” and suggested prohibiting the new units envisioned under this plan from being listed as short-term rentals on Airbnb.

Others raised concerns about the regulation’s lack of enforceability, and were critical of the provision allowing for 90 days of short-term rentals (many believed it was too permissive, but advocates who came out expressing support for Airbnb said it should be increased to 180 days).

The Board of Supervisors will take up the legislation in September after returning from August recess.

Housing balance and neighborhood stabilization

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By Peter Cohen and Fernando Martí

OPINION

The Guardian last week published an editorial on the outcome of the process around the Housing Balance measure. We offer here an alternative perspective from the field.

Since 1990, San Francisco has developed an incredible track record of building close to 30 percent affordable housing — but that ratio is quickly slipping away as new market-rate approvals far outstrip funding for affordable housing.

In many parts of our city, this imbalance in housing affordability is opening the door to displacement and gentrification at an unprecedented level, as long-term residents find they can no longer afford to live in their own neighborhoods.

The Housing Balance measure, developed as legislation for central city neighborhoods and introduced in April, and promoted by CCHO members TODCO and SOMCAN coming out of the West SoMa planning process, was intended to link market-rate development to affordable housing production by setting a goal of at least 30 percent affordable housing and establishing stricter conditions on approvals of market-rate housing whenever the city fell below this minimum balance. The Housing Balance measure was meant to compel all sides to work together to achieve a minimum of 30 percent affordability over time.

In June, Supervisor Jane Kim revised the Housing Balance to introduce it as a measure for the November 2014 ballot, extending the reach of the measure to not only establish a 30 percent affordable housing requirement for District 6, but across the neighborhoods of the city. Perceived as a threat by developers, this new proposal compelled the Mayor’s Office to put its own measure on the ballot — a so-called “poison pill” that would override the conditions placed on market-rate development by the Housing Balance. Since that time, the Mayor’s Office and Sup. Kim’s office engaged in extensive negotiations, which CCHO supported as a pathway to more substantive outcomes than simply a ballot “war.”

On July 29, negotiations produced a compromise measure — a policy statement that was introduced for the November ballot and agreed-upon terms for a work plan to take the policy statement into action. Though “compromise” is often considered a dirty word in politics, this measure represents a real potential win for affordable housing.

By putting the possibility of a housing linkage on the table, the negotiated outcome allowed Sup. Kim and housing advocates to up the ante to 33 percent affordable housing instead of the original 30 percent, and to get more immediate solutions for the housing crisis started immediately. The original Housing Balance was a tool to create leverage, but didn’t create ways to produce more affordable housing. This new measure establishes a package of policies and funding to set the conditions to reach the 33 percent minimum housing balance goal.

If approved by the voters, it will formalize the city’s commitment to maintain a one third affordable housing goal and set expectations on how to get there. While lacking the conditional use requirement “teeth” of the original Balance legislation, the policy and work plan sets up the conditions for a future Balance, compelling the city to do the following:

1) Establish a housing balance report and require public hearings to hold the city accountable to its goal of minimum 33 percent affordable housing;

2) Develop funding and site-acquisition strategies;

3) Develop a strategy to maintain one-third affordability citywide;

4) Make high-rise luxury developments pay their fair share of inclusionary obligations;

5) Establish a funded Neighborhood Stabilization Trust to acquire small-to-large buildings and take them out of the speculative market, preserving them in perpetuity as affordable housing;

6) Create immediate interim controls to protect PDR (production, distribution, repair/service) businesses and artists in SOMA from displacement.

The pieces of this agreement constitute a step towards addressing San Francisco’s ongoing affordability crisis and stabilizing neighborhoods facing rapid gentrification. It may seem less dramatic than the prospect of a ballot battle with developers. But it is a package to work with that was leveraged from the process. That said, we must keep an eye on the larger goal of real citywide affordability. Though 33 percent affordable housing production is higher than what we’ve achieved in the past, we must not forget this is only a floor — realistic given the funding goals of this measure, but an incremental step toward achieving the affordable housing we need to house all San Franciscans fairly.

Peter Cohen and Fernando Martí are co-directors of the Council of Community Housing Organizations.