Ellis Act

Airbnb’s tax and tenant law violations headed for hearings

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As Airbnb continues to avoid making any public comment on the $1.8 million annual Transient Occupancy Tax obligation to the city that it appears to be dodging, with the complicity of the Mayor’s Office, Board of Supervisors President David Chiu is getting closer to introducing legislation to regulate so-called “shared housing” and holding public hearings on the issues it raises.

In addition to the tax issue, there are concerns that Airbnb, VRBO.com, and other Internet-based sites that facilitate short-term rentals of San Francisco apartments are increasingly being used to circumvent local tenant protections, often after evicting tenants from the apartments using the Ellis Act. That state law allows owners to leave the rental business and convert to other uses, and landlords can argue that Airbnb is a commercial use and not a residential use.

“I’ve been deep into a lot of these issues in my conversations with a lot of community stakeholders around Airbnb and the area of shareable housing and I’m hoping very soon to have a package of proposals in this area. And at that point, we’ll have public hearings on the topics that you describe,” Chiu told us when we asked about the tax and tenants issues.

Among those involved in Chiu’s negotiations with Airbnb is Ted Gullicksen, executive director of the San Francisco Tenants Union, who says the negotiations have been slow-going but he’s generally happy with how they’re proceeding and hopeful that the resulting legislation will rein in rampant current abuses of zoning, tax, and other regulations that city officials have been ignoring.

“All you have to do is sit in front of the computer for a few hours and you can identify a lot of the lawbreakers. But there’s no enforcement by the city,” he said, noting that the Tax Collector’s Office is the notable exception among city departments, such as the Planning and Building departments. “The taxes shouldn’t even be an issue because they’re illegal uses.”

For example, while landlords may be able to get around rental restrictions triggered by an Ellis Act eviction by calling the use for shared housing websites “commercial,” that’s usually a violation of local planning codes prohibiting commercial use of residential property. Chiu’s legislation approved late last year banning “hotelization,” in which entire apartment buildings are cleared of tenants and rented out on a short-term basis, allows nonprofit groups like the Tenants Union to help enforce the ban.

“We’ve been researching the buildings we want to go after with complaints and lawsuits,” Gullicksen said. “It’s a pretty widespread problem.”

He said the VRBO.com appears to be a bigger culprit in terms of being used by landlords to avoid tenant protections than Airbnb, whose hosts are evenly split between tenants and landlords. But as the biggest shared housing service in San Francisco, the tax issues are bigger for Airbnb and the city.

“We don’t mind the limited use of someone’s principal residence for short-term rental, where we’re concerned is about the whole buildings,” Gullicksen said.

Whether the issue is avoiding taxes or circumventing tenant protections, the complicated issues surrounding shared housing are long overdue for some public discussions and scrutiny, and it sounds like that’s what we’re see later this spring or summer.

The happiest city — for some

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Not to go all gloomy on a day when it’s finally not cold and the sun is out and San Francisco was just named the happiest city in America, (based on things like the number of shopping centers and cultural events), but really: Let’s not all jump up and down and celebrate. This is a very happy city for people who have money; it’s becoming a very anxiety-filled city for everyone else.

I’ve gotten quite a few comments and emails from friends on our cover story this week, and most of them go something like this:

“Great story. Really scary. I hope they don’t Ellis Act my building or I won’t be able to stay here, either.”

If you’re a renter in San Francisco, and you’ve been here a while, and you’re under rent control, chances are you’re nervous about your future. Because if you get evicted, you’re almost certainly leaving town. Maybe you can find a place in Oakland that’s smaller than what you currently have at twice the price, or maybe you can’t. 

This is a city under immense pressure, and while the economically secure can happily go to shopping centers and see the Opera, I would say a majority of the current residents of San Francisco are more stressed about their future than they have been in years. And that doesn’t seem to be addressed in the happiness calculus.

An Ellis Act boycott list

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Jeremy Mykaels, who is featured in our story this week on Ellis Act evictions, is fighting back with his reseach and web-developer skills: He’s put together a site, ellishurtsseniors.org, that details not only his story and the overall plight of tenants but lists every Ellis Act eviction involving seniors or disabled people, the address, the name and contact info. for the landlord — and a call for potential TIC buyers to avoid those properties.

I hope this gets circulately widely — and that people buying property consider the human costs of eviction.

Out of place

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news@sfbg.com 

In his State of the City address last week, Mayor Ed Lee cheerfully characterized San Francisco as “the new gravitational center of Silicon Valley.” He touted tech-sector job creation. “We have truly become the innovation capital of the world,” Lee said, “home to 1,800 tech companies with more than 42,000 employees — and growing every day.”

From a purely economic standpoint, San Francisco is on a steady climb. But not all residents share the mayor’s rosy outlook. Shortly after Lee’s speech, renowned local author Rebecca Solnit published her own view of San Francisco’s condition in the London Review of Books. Zeroing in on the Google Bus as a symbol of the city’s housing affordability crisis, she linked the influx of high-salaried tech workers to soaring housing costs. With rents trending skyward, she pointed out, the dearth of affordable housing is escalating a shift in the city’s cultural fabric.

“All this is changing the character of what was once a great city of refuge for dissidents, queers, pacifists and experimentalists,” Solnit wrote. “It has become increasingly unaffordable over the past quarter-century, but still has a host of writers, artists, activists, environmentalists, eccentrics and others who don’t work sixty-hour weeks for corporations — though we may be a relic population.”

LIMITED OPTIONS

The issue of housing in San Francisco is highly emotional, and there is perhaps no greater flashpoint in the charged debate than Ellis Act evictions.

When the housing market bounces upward, Ellis Act evictions tend to hit long-term tenants whose monthly payments, protected by rent control, are a comparative bargain. Even if they’ve submitted every payment on time and upheld every lease obligation for 20 years, these renters can find themselves in the bind of being forced out.

And they don’t just lose their homes; often they lose their community. San Francisco has become so expensive that many Ellis Act victims are tossed out of this city for good.

Enacted in 1986, the state law allows a landlord to stop renting units, evict all tenants, and sell the building for another purpose. Originally construed as a way for landlords to “go out of business” and move into their properties, the Ellis Act instead gained notoriety as a driving force behind a wave of evictions that slammed San Francisco during the tech boom of the late 90s. Between 1986 and 1995, just 29 Ellis evictions were filed with the San Francisco Rent Board; in the 1999-2000 fiscal year alone, that number ballooned to a staggering 440.

Under the current tech heyday, there are indications that Ellis Act evictions are gaining fresh momentum. The San Francisco Rent Board recorded 81 this past fiscal year, more than double that of the previous year, and there appears to be an upward trend.

TIC CONTROVERSY

Buildings cleared via the Ellis Act are typically repackaged as tenancies-in-common (TIC), where several buyers jointly purchase a multi-unit residence and each occupy one unit. Realtors often market TICs as a path to homeownership for moderate-income individuals, creating an incentive for buyers to enter into risky, high-interest shared mortgages in hopes of later converting to condos with more attractive financing.

The divide between TIC owners and renters came into sharp focus at a contentious Jan. 28 hearing, when a Board of Supervisors committee met to consider legislation that would allow some 2,000 TIC units to immediately convert to condos without having to wait their turn in a requisite lottery system.

One TIC owner said he was financially burdened, but had only entered into the arrangement because “I wanted to stay here and raise my family, but we couldn’t afford a single family home.” Yet tenants brought their own set of concerns to the table, saying the temptation to create TICs was putting a major dent in the city’s finite stock of rent-controlled units — the single greatest source of affordable housing in San Francisco.

“My feeling is, let’s stop doing TICs,” Tommi Avicolli Mecca, a tenants right activist with the Housing Rights Committee, told the Guardian following the hearing. “The city has to just start making sure that the condos that are built are the kind of thing [TIC buyers] can afford. Instead, we cannibalize our rental stock? That’s a reasonable way? You evict one group of people to house another: How does that make sense?”

The grueling five-hour hearing illustrated the sad fact that San Franciscans in a slightly better economic position were being pitted against economically disadvantaged renters. The two groups were bitterly divided, and all seemed weary, furious, and frustrated by their housing situations.

The condo-conversion legislation, co-sponsored by Sups. Scott Wiener and Mark Farrell, did not move forward that day. Instead, Board President David Chiu made a motion to table the discussion until Feb. 25, to provide time for “an intensive negotiation process.” Chiu, who rents his home, added: “While I myself would like to become a homeowner someday … I do not support the legislation in its current form.”

Sup. Jane Kim sought to appeal to the tenants as well as the TIC owners. “It’s very tragic that we have set up a situation where [TICs and renters] are pitted against one another,” she said. She hinted at what a possible alternative to might look like. “We should be looking at a ban of scale,” she said. “If we allow 1,800 potential units to go thru this year, are we willing to do a freeze for the next 8 to 10 years?”

It’s unclear what will happen in the next few weeks, but if this legislation makes it back to the full board in some form, the swing votes are expected to be Sups. London Breed, Malia Cohen and Norman Yee.

CASH OR EVICTION?

New protections were enacted following the late-90s frenzy to discourage real-estate speculators from using the Ellis Act to turn a profit on the backs of vulnerable seniors or disabled tenants. Yet a new wave of investors has discovered they can persuade tenants to leave voluntarily, simply by offering buyouts while simultaneously wielding the threat of an Ellis Act eviction. “The process got more sophisticated,” explains San Francisco Rent Board Deputy Director Robert Collins.

Once a tenant has accepted a check in lieu of eviction, rent-controlled units can be converted to market rate, or refurbished and sold as pricey condos, without the legal hindrances of an eviction blemish. Buyouts aren’t recorded with the Rent Board, and the agency has no real guidance for residents faced with this particular dilemma. “We don’t have the true number on buyouts,” says Mecca. “We don’t know how many people have left due to intimidation.”

Identity-wise, renters impacted by the Ellis Act defy categorization. A contingent of monolingual Chinese residents rallied outside City Hall recently to oppose legislation they believed would give rise to evictions; in the Mission, many targeted tenants are Latinos who primarily speak Spanish. From working immigrants, to aging queer activists, to disabled seniors, to idealists banding together in collective houses, the affected tenants do have one thing in common. When landlords or real-estate speculators perceive that their homes are more valuable unoccupied, their lives are susceptible to being upended by forces beyond their control.

The upshot of San Francisco’s affordability crisis is a cultural blow for a city traditionally regarded as tolerant, forward thinking, and progressive. In the words of Rose Eger, a musician who faces an Ellis Act eviction from her apartment of 19 years, “it changes the face of who San Francisco is.

Out of the Castro

By Tim Redmond

You can’t get much more Castro than Jeremy Mykaels. The 62-year old moved to the neighborhood in the early 1970s, fleeing raids at gay bars in Denver. He played in a rock band, worked at the old Jaguar Books, watched the rise of Harvey Milk, saw the neighborhood transform and made it his home.

He’s lived in a modest apartment on Noe Street for 17 years, and for the past 11 has been living with AIDS. Rent control has made it possible for Mykaels, who survives on disability payments, to remain in this city, in his community, close to the doctors at Davis Hospital who, he believes, have saved his life.

And now he’s going to have to leave.

In the spring of 2011, his longtime landlords sold the building to a real-estate investment group based in Union City — and the new owners immediately sought to get rid of all the tenants. Two renters fled, knowing what was coming; Mykaels stuck around. In September of 2012, he was served with an eviction notice, filed under the state’s Ellis Act.

He’s a senior, he’s disabled, his friends are mostly dead and his life is in his community — but none of that matters. The Ellis Act has no exceptions.

Mykaels spent a fair amount of his life savings fixing up his place. The walls are beige, decorated with nice art. Dickens the cat, who is chocolate brown but looks black, wanders in and out of the small bedroom. Mykaels has been happy there and never wanted to leave; “this,” he told me, “is where I thought I would live the rest of my life.”

There’s no place in the Castro, or even the rest of the city, where he can afford to move. Small studios start at $2,500 a month, which would eat up all of his income. There is, quite literally, nowhere left for him to go.

“A lot of my friends have died, or moved to Palm Springs,” he said. “But this is where my doctors are and where I’m comfortable. I’m not going to find a support system like this anywhere else in the world.”

Mykaels is the face of San Francisco, 2013, a resident who is not part of the mayor’s grand vision for bringing development and high-paying jobs into the city. As far as City Hall is concerned, he’s collateral damage, someone whose life will have to be upended in the name of progress.

But Mykaels isn’t going easily. The former web designer has created a site — ellishurtsseniors.org — that lists not only his address (460 Noe) and the names of the new owners (Cuong Mai, William H. Young and John H. Du) but the addresses of dozens of other properties that are facing Ellis Act evictions. His message to potential buyers: Boycott.

“Do not buy properties where seniors or the disabled have been evicted for profit by real estate speculators using the Ellis Act,” the website states.

Mykaels is a demon researcher — his site is a guide to 31 properties with 94 units where seniors or disabled people are being evicted under the Ellis Act. In some cases, individuals or couples are filing the eviction papers, but at least 14 properties are owned by corporations or trusts.

Mai told me that he knew a disabled senior was living in the building when he and his two partners bought it, but he said his plan all along was to evict all the tenants and turn the three-unit place into a single-family house. He said he hasn’t decided yet whether to sell building; “I might decide to live there myself.” (Of course, if he wanted to live there himself, he wouldn’t need the Ellis Act.)

Mai said he “felt bad about the whole situation,” and he had offered to buy Mykaels out. The offer, however, wouldn’t have covered more than a few months of market rent anyplace else in the Castro.

By law, Mykaels can stay in his apartment until September. If he can’t stave off the eviction by then, San Francisco will lose another longtime member of the city community.

 

Dark days in the Inner Sunset

By Rebecca Bowe

The living room in Rose and Willie Eger’s Inner Sunset apartment is where Rose composes her songs and Willie unwinds after playing baseball in Golden Gate Park. Faded Beatles memorabilia and 45 records adorn the walls, and a prominently displayed poster of Jimi Hendrix looms above a row of guitar cases and an expansive record collection.

It’s a little worn and drafty, but the couple has called this 10th Ave. apartment home for 19 years. Now their lives are about to change. On Jan. 5, all the tenants in their eight-unit building received notice that an Ellis Act eviction proceeding had been filed against them.

“The music that I do is about social and political things,” explains Rose, dressed from head-to-toe in hot pink with a gray braid swinging down her back. Determined to derive inspiration from this whole eviction nightmare, she’s composing a song that plays with the phrase “tenants-in-common.”

Cindy Huff, the Egers’ upstairs neighbor, says she began worrying about the prospect of eviction when the property changed hands last summer. Realtor Elba Borgen, described as a “serial evictor” in online news stories because she’s used the Ellis Act to clear several other properties, purchased the apartment building last August, through a limited liability corporation. The notice of eviction landed in the mailbox less than six months later. (Borgen did not return Guardian calls seeking comment.)

“With the [average] rent being three times what most of us pay, there’s no way we can stay in the city,” Huff says. “The only option we would have is to move out of San Francisco.” She retired last year following a 33-year stint with UCSF’s human resources department. Now, facing the prospect of moving when she and her partner are on fixed incomes, she’s scouring job listings for part-time work.

The initial notice stated that every tenant had to vacate within 120 days, but several residents are working with advocates from the Housing Rights Committee in hopes of qualifying for extensions. Huff and the Egers are all in their fifties, but some tenants are seniors—including a 90-year-old Cuban woman who lives with her daughter, and has Alzheimer’s disease.

Willie works two days a week, and Rose is doing her best to get by with earnings from musical gigs. Both originally from New York City, they’ve lived in the city 35 years. When they first moved to the Sunset, it resembled something more like a working-class neighborhood, where families could raise kids. The recent tech boom has ushered in a transformation, one that Rose believes “changes the face of who San Francisco is.” Willie doesn’t mince words about the mess this eviction has landed them in. “I call it ‘Scam-Francisco,'” he says.

The trio recently joined tenant advocates in visiting Sup. Norman Yee, their district supervisor, to tell their stories. Yee, who is expected to be one of the swing votes on an upcoming debate about condo-conversion legislation vehemently opposed by tenant activists, reportedly listened politely but didn’t say much.

As for what the next few months have in store for the Egers? “I can’t really visualize the outcome,” Rose says. “I can only visualize the day-to-day fight. And that’s scary.”

 

Fighting for a home in the Mission

By Tim Redmond

Eleven years ago, Olga Pizarro fell in love with Ocean Beach. A native of Peru who was living in Canada, she visited the Bay Area, saw the water and decided she would never leave.

Fast forward to today and she’s built a home in the Mission, renting a small room in a basement flat on Folsom Street. The 55-year-old has lived in the building for eight years; polio has left her wearing a leg brace and she can’t climb stairs very well, but she still rides her bike to work at the Golden Gate Regional Center. She’s a sociologist by training; the walls in her room are lined with bookshelves, with hundreds of books in Spanish and English.

The place isn’t fancy, and it needs work, but it’s hard to find a ground-floor apartment in the Mission that’s affordable on a nonprofit worker’s salary. Since 2011, when she moved in, she and her three housemates have been protected by rent control. And Pizarro’s been happy; “I love the neighborhood,” she told me.

The letter warning of a pending eviction arrived Jan. 16. A new owner of the building wants to turn the place into tenancies in common and is prepared to throw everyone out under the Ellis Act. There’s no place else in town for Pizarro to go.

“I’ve looked and looked,” she said. “The cheapest places are $2,500 a month or more. Maybe I’ll have to move out of the city.”

Pizarro’s building is owned by Wai Ahead, LLC, a San Francisco partnership registered to Carol Wai and Sean Lundy. I couldn’t reach Wai or Lundy, but their attorney, Robert Sheppard, had plenty to say. “San Francisco is going the way of New York,” he told me. “Manhattan is full of co-ops that used to be rentals, and lower-income people are moving to Brooklyn and Queens. That’s happening here with Oakland and further out.” He argued that TICs, like co-ops, provide home-ownership opportunities for former renters.

Sheppard, who for years represented tenants in eviction cases, said the Ellis Act is law, and America is a capitalist country, and “as long as there is a private housing market, there will be shifts of people as the housing market shifts.” He agreed that it’s not good for lower-income people to lose their homes, but “the poor will always be hurt by a changing economy. It’s called evolution.”

Pizarro told me she’s shocked at how expensive housing has become in the Mission. “It’s gotten so gentrified,” she said. “People show up in their BMWs. It’s starting to feel very isolated.”

She’s fighting the eviction. “I didn’t intend it to be this way,” she explained. “I just want to live here.” Lacking any family in the area, the Mission has become her community — “and I’m frustrated by the violence of how expensive it is.”

 

Affordability goes out of style

By Rebecca Bowe

Hester Michael is a fashion designer, and her home doubles as a project space for creating patterns, sewing custom clothing, weaving cloth, and painting. She’s lived in her Outer Sunset two-bedroom unit for almost two decades, but now she faces an Ellis Act eviction. Michael says she initially received notice last June. The timing was awful -– that same month, her husband passed away after a long battle with terminal illness.

“I’ve been here 25 years. My friends are here, and my business. I don’t know where else to go, or what else to do,” she says. “I just couldn’t picture myself anywhere else.”

Michael rents the upstairs unit of a split single-family home, a kind of residence that normally isn’t protected by rent control. Yet she leased the property in 1994, getting in under the wire before that exemption took effect. Since she pays below-market-rate rent in a home that could be sold vacant for top dollar, a target was essentially inscribed on her back when the property changed hands in 2004. That’s about when her long battle with the landlords began, she says.

From the get-go, her landlords indicated that she should look for a new place, Michael says, yet she chose to remain. The years that followed brought things falling into disrepair, she says, and a string of events that caused her feel intimidated and to fear eviction. Finally, she consulted with tenant advocates and hired an attorney. A complaint filed in superior court alleges that the property owners “harassed and retaliated [Michael] when she complained about the defective and dangerous conditions …telling [her] to move out of the property if she did not like the dangerous conditions thereat … repeatedly making improper entries into [the] property, and wrongfully accusing [her] of causing problems.”

Records show that Angela Ng serves as attorney in fact for the property owner, Ringo Chung Wai Lee. Steven Adair MacDonald, an attorney who represents both landlords and tenants in San Francisco housing disputes, represents the owners. “An owner of a single family home where the rent is controlled and a fraction of market has virtually no other choice but to terminate the tenancy,” MacDonald said when the Guardian reached him by phone. “They’ve got to empty it, and the only way to empty it is the Ellis Act.”

While Michael received an extension that allows her to remain until June 5, she fears her custom sewing business, Hester’s Designs, will suffer if she has to move. There’s the issue of space. “I have so much stuff in this house,” she says. And most of her clients are currently located close by, so she doesn’t know where her business would come from if she had to relocate. “A lot of my clients don’t have cars,” she says, “so if I live in some suburb in the East Bay, forget it. I’ll lose my business.”

The prospect of eviction has created a major dilemma for Michael, who first moved to San Francisco in 1987. While moving to the East Bay seems untenable, she says renting in San Francisco feels out of reach. “People are renting out small, tiny bedrooms for the same price as I pay here,” she says. With a wry laugh, she adds: “I don’t think there’s any vacant apartments in San Francisco -– unless you’re a tech dude and make seven grand a month.”

Editor’s notes

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tredmond@sfbg.com

EDITORS NOTES People who rent apartments aren’t second-class citizens. In fact, under San Francisco laws, they have (and ought to have) many of the same rights as the landed gentry.

If you rent a place in this city, and you pay the rent on time, and abide by the terms of the lease, you should be able to stay in your home (and yes, it IS your home) as long as you want. The rent can only go up by a modest amount every year.

Landlords know that when they enter into rental agreements. Accepting a tenant means acknowledging that the person may want to say in his or her apartment for years, maybe for life; the rent the landlord sets for that unit has to be adequate to cover a share of the mortgage, expected maintenance costs, and a reasonable return on the owner’s investment.

When you buy a piece of rental property in the city, you are told that tenants live there; you’re told what rent they pay, you’re informed that you can’t raise it much, and unless your utterly ignorant of local law, you realize that the tenants have, in effect, lifetime leases since you can only evict them for “just cause” — which does not include your desire to make more money.

If the numbers don’t pencil out under those conditions, they you shouldn’t buy the place.

That’s how a sane rental housing system ought to operate. Unfortunately, the state Legislature has undermined local rent-control laws with the Ellis Act, which allows landlords to evict all their tenants, cease renting altogether, and turn the place into condominiums. Or, since there are limits on condo conversions in this city, into tenancies in common, which are not limited at all.

Sup. Scott Wiener wants to make it easier to turn TICs into condos; he says the poor TIC owners are having a tough time and can get better mortgage rates if they rules are changed. I don’t feel bad for them; they knew the rules when they bought their TICs. They have no right to convert to condos; that’s a privilege granted to a limited number each year, by waiting list and lottery. Buy a TIC? You should assume it will remain your ownership model for a long, long time.

The city can’t stop the TIC conversions, but it can set ground rules — for example, local law mandates a payment to tenants who are evicted, which can reach $5,000. Sounds big — but it won’t even pay two months’ rent on a new place in this market.

SO let’s be fair here: If you want to evict a tenant, who has and ought to have the right to a stable place to live, you should pay enough to make that person whole. Calculate market rent on a similar place; subtract the current rent the tenant is paying, and cover the difference — for, let’s say, five years.

If that makes TICs too expensive, and thus lowers property values by making evictions difficult and keeping rents low, fine: Property values are too high in this town anyway. And if it means more stability for lower-income people at the expense of property owners … well, I can live with that.

Housing stability for all

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OPINION San Francisco is in the midst of a housing affordability crisis. It’s way too expensive to live here, and for those fortunate enough to have housing they can afford, we need to provide stability. This need for housing stability applies to renters as well as homeowners. If we’ve learned anything from the foreclosure crisis, homeowners are not all rich, and they are not all stable in their housing.

Last week’s Guardian argued against legislation I’m co-sponsoring, which provides one-time relief to owners of tenancies-in-common (TICs) — mostly middle- and working-class first-time homeowners who reside in their units — while providing strong protection to renters. While the editorial correctly stressed the need to support rent control, it failed to acknowledge the need to support housing stability for homeowners as well.

Rent control is one of the pillars of our city. It stabilizes housing prices, recognizes that housing isn’t just another commodity, keeps communities intact, and helps maintain San Francisco’s diverse fabric. I’ve long supported rent control, as reflected by my voting record. I supported a series of rent control measures designed to reduce evictions, including requiring sales disclosure of a unit’s eviction history, requiring increased relocation benefits to evicted tenants, outlawing harassment of tenants, and restricting use of the Ellis Act by real-estate speculators. As a member of the Board of Supervisors, I authored successful legislation to ban conversion of rent-controlled units to student dorms and to provide temporary affordable units to renters displaced by disasters.

The current legislation I’m co-sponsoring will provide needed relief to struggling TIC owners, many of whom are experiencing serious financial distress, while protecting the small number of tenants who live in these units. TIC owners have group mortgages, meaning that if one owner defaults, all owners default. They pay double the interest rate other homeowners pay and usually cannot refinance. The legislation will allow them to convert their units to condos and obtain their own mortgages, at lower rates and less foreclosure risk.

While some caricature TIC owners as speculators and wealthy people, that’s untrue. Many TIC owners are quite middle class, former renters who scraped together a down payment to purchase a home. Many are teachers, social workers, public employees, and other workers who are anything but speculators. These are people who, if they didn’t own TICs, would be renting. They aren’t Martians who dropped out of the sky. They’re our neighbors, co-workers, and fellow San Franciscans. They are part of the city’s fabric.

Under the legislation, owner-occupied TICs that are in the condo lottery will be able to convert to condos by paying a fee of $20,000 per unit, with the proceeds dedicated to affordable housing. Buildings with Ellis Act and other problem evictions are typically prohibited from condo converting in San Francisco, under a 2006 law, and that restriction applies to this legislation. In other words, this legislation won’t encourage Ellis Act evictions. Moreover, buildings that aren’t owner-occupied can’t condo convert. Nor can buildings with more than six units. The legislation is one-time in nature and not an ongoing invitation to condo convert.

The legislation covers very few units with tenants — 85% are owner-occupied — and protects this small number of tenants by mandating they receive lifetime leases, with full rent and eviction controls identical to our rent control laws. This protection is stronger than what most tenants receive in buildings that win the condo lottery currently.

Renters and homeowners both deserve housing stability. This legislation moves us in that direction.

Supervisor Scott Wiener represents District 8.

 

Condo conversion legislation on hold for now

Following a contentious five-hour hearing, a committee of the Board of Supervisors postponed voting on a controversial housing proposal, and agreed to revisit the issue on Feb. 25. Over the next few weeks, opposing sides are expected to negotiate a possible alternative.

Authored by Sups. Scott Wiener and Mark Farrell, the proposed condo conversion impact fee would have allowed as many as 2,000 tenancy-in-common (TIC) units to be immediately converted to condos for a fee, allowing owners to bypass a housing lottery system that places an annual cap on conversions.

While TIC owners voiced frustration about the backlogged lottery system, tenants expressed fears that the legislation could give rise to a wave of Ellis Act evictions if landlords or speculators interpreted it as a signal that lucrative condo conversion would be easier to achieve.

Prior to the hearing, a group of tenants gathered in front of City Hall in a show of opposition to the condo-conversion legislation, waving signs that read, “Stop the Attack on Rent Control.”

“The reality is, if this legislation passes, there will be more evictions in San Francisco,” said Tommi Avicolli Mecca of the Housing Rights Committee, who spoke at the rally.

Tenant advocates worry that the legislation would result in a permanent loss of affordable, rent-controlled units from the city’s housing stock, at a time when rents are soaring. When landlords rent out their condos or TICs in San Francisco, there’s a key difference: TICs are covered by rent control, but condos are exempt.

“I’ve been evicted three times,” one woman said while addressing members of the Land Use & Economic Development Committee. “I know so many people who have gotten evicted. I don’t know anyone who’s won their case against eviction.”

During the hearing, Farrell adopted a defensive tone against critics who’d described the proposal as an attack on rent control. “The tactics that these opponents have deployed is out of line,” he said. To assuage concerns, he noted that he and Wiener had included a provision guaranteeing lifetime leases for existing tenants in units that qualified for condo conversion under the program.

But Sup. Jane Kim drilled down on this detail, questioning whether such an agreement would be legally enforceable in the long run. In response, a representative from the City Attorney’s office said he thought the provision was on solid legal ground, but noted that the specific matter “has not been litigated before,” meaning there is still a question as to whether it could withstand a court challenge. When Kim asked if any funding was set aside to enforce these lifetime leases, the response was “no.”

Board President David Chiu proposed holding off on a vote for several weeks. “I do not support the legislation in its current form,” he said. If the current generation of TIC owners were allowed to convert this time, he explained, the next generation’s frustrations with the housing lottery would only “lead us back to an identical debate in a short period of time.”

Kim echoed this point. “My concern was that … folks were looking at this legislation as an ice-break for more condo conversion,” she said just after a public comment session that lasted several hours. And she acknowledged that there is a larger problem to consider. “It’s very tragic that we have set up a situation where [TICs and renters] are pitted against one another,” she said.

Ed Lee’s State of the City: What evictions? What displacement?

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Mayor Ed Lee punctuated his State of the City speech with a nice little quip: “Every San Franciscan deserves a clean, safe place to call home.” I agree.

So why, in a speech lasting more than an hour, did the mayor not once mention that thousands of San Franciscans are facing the loss of their homes — and will be forced out of the city — because of the same policies that he’s proudly promoting?

These things are always self-congratualtory and full of the requisite bullshit. But Lee’s description of the State of the City was nothing more than a fantasy to the two-thirds of San Franciscans who live in rental housing, many of whom are living with an unacceptable level of insecurity. Much of the city’s rental stock — and the effectiveness of rent control — is at risk at speculators are buying up properties, tossing the tenants out with the Ellis Act, and converting them to tenancies in common. This is a massive civic crisis, brought on in part by the boom in tech jobs and the consequent boom in high-paid young people who want to live in a city that has virtually no vacant housing.

We saw this before, under Mayor Willie Brown; we called it the Economic Cleansing of San Francisco. It was awful, and it’s happening again.

But you wouldn’t know that to hear the mayor completely ignore the issue.

Oh, Lee gave it a toss-off line; gee, the rent is too high, but we can’t ignore the laws of supply and demand. Gee, we’re going to build 45,000 new housing units, and that will fix everything.

But Lee, of all people, ought to know that housing in San Francisco has never followed the laws of supply and demand. This is a highly irregular market, because demand is essentially unlimited. Housing fills us as fast as you build it. And none of the new housing that’s currently under construction or in the pipeline will be affordable to current SF residents who live in rent-controlled units and are at risk for eviction.

When you’re evicted under the Ellis Act in San Francisco today, to make room for someone with more money, you wind up having to leave the city. That’s the bottom line. And everywhere you turn, tenants are facing that ugly prospect.

The mayor spent much of his time talking about jobs. That’s fine; he’s proud that the unemployment rate in the city has fallen to 6.5 percent, but he insists he won’t rest until everyone has a job. Actually, most economists would say that’s impossible; capitalism, by its nature, exists with a structural unemployment rate that rarely falls below 4 percent. In fact, 4 percent is generally considered “full employment.”

More important, the overall rate is 6.5 percent, but it’s way higher for people without college degrees, for youth, and for African Americans. (It’s above 50 percent for transgender people.) The tech boom isn’t providing jobs for all of the unemployed current San Francisco residents; a lot of the jobs are going to people who don’t live here and are moving here for employment. They are putting pressure on the existing housing stock. That always leads to displacement.

None of this is to say that tech jobs are bad or that we shouldn’t have companies that pay high wages locate in San Francisco. What it means is that the city first has to protect its existing vulnerable populations — and that’s not happening.

I would encourage Mayor Lee to talk to the Housing Rights Committee, or the Tenderloin Housing Clinic, or any of the other tenant lawyers who are fighting desperately every day to state off evictions. He’d get a very different picture of the state of the city.

TIC legislation is a rent control issue

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OPINION If legislation introduced by Supervisors Scott Wiener and Mark Farrell passes the Board of Supervisors next month, up to 2,000 tenancies in common will be allowed to bypass the lottery process and convert to condominiums.

Add those to the nearly 6,000 conversions that have occurred from 2001-2011 (according to stats from the Department of Public Works), and you have a sizable chunk of rent-controlled units that will have been yanked from our housing stock in the past decade or so in a city that can’t afford to lose rental units, especially those that preserve affordability while tenants live in them. TICs are still under rent control; condos lose it when they’re sold.

Which makes the Wiener and Farrell legislation a rent-control issue. Not to mention a really bad idea at a really bad moment in time.

San Francisco’s perennial housing crisis can’t possibly get worse. Rents are the highest in the country — and still rising. The average rent in the city these days is $3,000. The vacancy rate is low.

Ellis Act evictions, a tool for creating TICs by allowing a landlord or speculator to circumvent just-cause eviction protections, are on the upswing. They’re not as high as they were at the height of the dot-com boom of the late 90s, but, considering that these days many landlords and speculators threaten tenants with Ellis or buy them out rather than do the dirty deed, the number of folks displaced for TICs is higher than what is recorded at the Rent Board. Some tenants have actually received letters from new landlords with two checkboxes — one for Ellis and the other for a buyout. Take your pick, which way do you want to be tossed out and possibly left homeless?

The folks being displaced are from every district and represent the diversity about which we always brag: longterm, generally low-income seniors, disabled people, people with AIDS, families, and people of color. And they’re less likely to find other apartments they can afford.

Wiener claims that buildings where there are evictions will not be eligible for conversion, but many of the TICs currently in the lottery, which will be eligible for conversion under the Wiener/Farrell legislation, were created by evictions. Almost 20 percent of the units in the pipeline were formed before legislation was put into place to restrict conversions if tenants are ousted. How many of the other 80 percent are the result of threats and buyouts, de facto evictions? Or were entered into the lottery even when they shouldn’t have been?

Brian Basinger, founder of the AIDS Housing Alliance, was evicted from his apartment for a TIC, yet his place was converted to a condo, despite the fact that he’s a protected tenant.

Allowing as many as 2,000 conversions not only diminishes the rent-controlled housing stock, but it also jacks up rents. Not to mention it gives speculators incentive to do more Ellis evictions or buyouts — after all, though Wiener and Farrell say this is a one-time only deal, once Pandora’s box is opened, it’s going to be hard to keep it shut. I think landlords and speculators know that.

The Housing Element of the City’s General Plan, adopted in 2009, instructs officials to “preserve rental units, especially rent controlled units, to meet the City’s affordable housing needs.”

This legislation won’t preserve rent-controlled units. It’s a bad fit for our city.

Tommi Avicolli Mecca, who’s worked for the Housing Rights Committee for 13 years, is a longtime queer tenants right/affordable housing advocate.

Was it a great year?

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At noon Dec. 19, a group of about 50 housing activists led by the Housing Rights Committee gathered at 18th and Castro, next to the giant Shopping Season Tree, to discuss the wave of evictions tenants are facing at the end of 2012. Tommi Avicolli Mecca held up a list of 26 buildings that are currently being clear of tenants under the Ellis Act, a state law that allows landlords to evict all their tenants and sell the property as a single-family home or tenancies in common. With him was a long line of tenants who are facing holiday homelessness thanks to landlord greed.

“There are too many tenants being evicted to fit in front of the tree,” he said.

We heard story after story: A man living with AIDS facing the loss of his home after 17 years. A family being forced out after 18 years. Seniors, kids, disabled people … all of them almost certainly displaced from San Francisco.

“San Francisco is becoming a city of the rich, and we are being pushed aside,” said Lisa Thornton, who works at Rainbow Grocery and is losing her home.

“This,” Mecca said, “is an epidemic of evictions.”

And we all know why: As the second tech boom roars in to San Francisco, high-paid young workers are able to afford to buy TICs or single-family homes, and long-term rent-control-protected tenants simply can’t compete. It’s not a pretty pciture.

So I almost barfed when I say Randy Shaw’s glowing paen to Mayor Ed Lee. “San Francisco had one of its greatest years in 2012, as the city’s job growth and vibrancy outpaced nearly everywhere else,” he wrote.

Oh, gee, he says, there are some problems:

Few want San Francisco to become a city where only the rich and subsidized poor can live. But these same fears were felt in the 1980’s. When I was moving to San Francisco in 1979, the lines for vacant apartments were just as long and the competition for vacant units as fierce as what we read about in 2012. We couldn’t believe we had to pay $375 for a Mission one bedroom apartment, a rate that is less than half the cost of an SRO room without private bathroom today. San Francisco has long been an expensive city that keeps getting pricier.

So what — because we were worried about displacement in the 1980s means we shouldn’t be worried today? Those worries were real — gentrification of San Francisco neighborhoods has been rampant for decades. It’s changed the city, for the worse.

In the 1980s, Shaw was part of a broad coalition that fought to get rent control laws and eviction protections and limits on condo conversions. Now he’s acting as if none of that was worth the fight, as if protecting affordable housing wasn’t, and isn’t, the most critical issue in the city today.

A great year? Fantastic vibrancy and job growth? Not if you’re one of the growing numbers of people who are losing their homes to Ed Lee’s vision of economic development.

 

WTF, Chuck: Those poor exploited landlords

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In my continuing attempt to make sense of the politics of the Chron’s C.W. Nevius, I present: What The Fuck, Chuck — the saga of the poor landlord.

I’ll try to be fair: There’s nothing inherently wrong with this story. I don’t like rich people taking advantage of anything, particularly rent control. It’s true that there are a few people who are cheating, good for Chuck to expose them (tho he didn’t exactly name names). You can’t make better copy than a family that moves to Hawaii (!) and keeps a rent-controlled house in the Richmond. (Of course, maybe the parents needed to be there for a couple of years for work, and were hoping to return to their family home and the landlord wouldn’t allow sublets, but whatever. Sounds horrible.)

And I’m not excusing it for a minute.

But I’ve never seen Nevius write a story about a family that can remain in this city only because of rent control, or a longterm tenant being forced out by the Ellis Act to create “homeownership” opportunities for a wealthier person who can buy a tenance in common, or a landlord who lies, cheats and abuses tenants to get rid of them so he or she can raise the rent — and those are far, far more common occurences. Those are problems that happen every day in this city.

It’s always about the poor landlords.

Yeah, there are bad tenants. But anyone on the front lines of the renatl-housing struggles in San Francisco can tell you that the abuses by the property-owning class radically exceed the harm caused by the tenant class.

I feel about this the same way I feel about the ongoing stories on bloated city employee pay and pensions. Yes, it’s true: Some city employees game the overtime and pension systems and in effect pluck money from the pockets of the taxpayers. I see no reason why a police chief who retires at 55 should get $250,000 a year for life.

But it’s also true that a lot of city employees earn a basic middle-class salary and get a pension of maybe $30,000 a year, which is hardly excessive — and the fact that the private sector quit giving pensions decades ago doesn’t mean that the public sector is wrong to do it. But all of these stories create a powerful Big Lie mythology of bloated public payrolls, which undermines any effort to raise taxes for desperately needed public services.

You tell people enough tales about the poor landlord and the rich tenants and you start to make rent control look like a bad idea. Which is about the worst thing you can do in San Francisco today, where the existence of any middle class at all is primarily the result of rent control — and if anything, rent control ought to be stronger.

In other words: A little perspective here, please.

 

 

Guardian voices: The zombie condo converters

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What is the shelf life of  a really bad public policy concerning housing in  San Francisco?

When it comes to condo conversions of existing rent controlled apartments, the answer is that there is no limit on how many times this bad idea is taken off the shelf. Like a bad summer zombie movie, this undead keeps  walking, no matter what San Franciscans say.

A little history.  In 1982 Supervisor Willie Kennedy, not a bomb-throwing tenant advocate by any stretch, sponsored legislation that limited the  conversion of existing apartments to condos to no more than 200 a year. The measure did not touch new constriction, allowing unlimited condominium construction. Indeed, from 1983 to 2000, some 12,200 new condos were built, an average of some 680 units a year. Since 2000, nearly 100 percent of all new residential constriction is built as condos; there is no limit on renting a condo, but an annual limit in converting an existing apartment. Clearly, condos are a tenure type of housing that is dramatically expanding.

The reason Kennedy and the at-large elected Board of Supervisors voted for the annual limit was to protect rent-controlled apartments, a type of housingthat can’t be expanded. San Francisco’s 1978  rent control ordinance exempted all new construction from being under rent control. So rent-controlled apartments were a fixed number — all apartments built before 1978 — banned by law from ever being expanded. 

Yet those apartments are the largest number of affordable housing units available to moderate and middle income households. Thus, there’s a rational desire to preserve them by a public policy that limits their conversion to condos because they are declining in numbers.

And San Francisco voters understand and support this very rational policy.

In 1989, realtors and speculators tried to overturn the annual limit, proposing a measure that said if 51 percent of a building’s existing tenants voted for a conversion, then the building could be converted with no annual limit. This proposal laid out a future of a Hobbesian society here in San Francisco with one set of well-to-do tenants fighting another set of less-well-off tenants, building by building. San Francisco voters defeated the measure 63-37.

But in the land of the living dead condo converters, no is never the answer.
 
In 2002, Gavin Newsom, Tony Hall and Leland Yee, Plan C, and the Chamber of Commerce placed another measure on the ballot to repeal the annual limit. It too, was  rejected: 60 percent voted no, and 40 percent yes. The measure was defeated in all of the supervisorial districts except  Newsom’s D2, Tony Hall’s D7, and Leland Yee’s D4.

Tenant and affordable housing advocates were not unmoved by the desire of tenants, especially in privately owner rental housing facing Ellis Act and TIC evictions, to seek the protection of home ownership. In 2008 they supported an amendment to the Subdivision Code carving out from the annual limit conversions of apartments by nonprofit, limited equity housing
co-ops.

Now were are confronted again by a desire to allow more conversions of rent controlled units by private buyers who bought into the TIC dodge around the annual condo conversion limit.

Since TIC’s do not require a sub-division map, creating legally recognized separate units, they became “grey market” condos. With hot mortgage money flowing during the bubble, TIC owners could get financing. Now, banks are actually following some laws and will not lend to buy a legally grey TIC.  Thus the move to get them converted to legal condos.
 
This is, in its most basic form, yet another bailout caused by speculative capitalism. We seem to no longer believe in the market as an economic system, in which bad economic decisions result in economic loss for the folks involved. We now seem to believe in the “market society” — in which those with money get to keep it no matter what bad decisions they make.

What this is all about is not really homeownership but about home sales. After all, if you have a TIC you already have a home. You want to convert it to a condo not to live in, but to sell. To make it easier to sell TICs would make it harder to sell the thousands of already approved but stalled new condos.

Mayor Lee administration want to stimulate these stalled condo developments, claiming they will create constriction jobs. The Farrell and Wiener condo conversion plan undercuts these efforts and, of course, will create no jobs for anyone but realtors and moving companies.

This is called a “contradiction of capitalism,” when one set of capitalists seek, to the disadvantage of another group of capitalists, to get the government to intervene on their behalf.  But it does prove once again that Lenin was right when he said that one could count on one set of capitalists to compete with each other to sell rope to hang another set.

It’s really bad economic policy, and even worse housing policy.

SF needs healthy housing

My greatest frustration as a tenants’ rights and affordable-housing advocate in San Francisco is that, despite all the good efforts by a lot of good people, we never address the root cause of our housing crisis. We routinely enact laws and ballot initiatives, organize endless demonstrations and elect progressive politicians, but in the final analysis, these efforts are just a Band Aid on a bad system that leaves a lot of people without a roof over their heads.

A few years ago, Brian Basinger of the AIDS Housing Alliance and I pushed “no fast pass to eviction” legislation to stop the eviction of seniors and people with AIDS and other disabilities through the state Ellis Act.

Ellis allows a landlord to override just-cause eviction protections and evict all of the tenants in a building. It’s often used by speculators to flip properties — that is, buy them, evict the tenants, and create a tenancy-in-common (where there’s the same number of owners as there are apartments). The new owners apply for condo conversion so that, instead of sharing a percentage in the building, they actually own their own units.

No Fast Pass says that if someone uses Ellis to evict tenants, then the building can’t convert to condos for ten years. If any of those tenants are seniors or disabled, it can never be converted. The legislation helped. There was a drop in Ellis evictions. Unfortunately, landlords and speculators now employ intimidation, harassment and buy-outs to get rid of tenants, so that they don’t have to Ellis.

It’s time to get beyond Band-Aids. Housing should be a human right, guaranteed for all, as healthcare is in other nations.

When former Supervisor Tom Ammiano realized that 65,000 San Franciscans (15% of the population) were without health coverage, he (not former Mayor Gavin Newsom, who takes credit for it) introduced legislation to create what is now “Healthy San Francisco,” our city’s version of universal healthcare. It’s not perfect, but it tackles the problem the way it should be tackled: by making healthcare a human right and not a luxury.

The same needs to be done for housing.

As long as housing is a commodity, affordable only to those who have the dough, there will always be people left out in the cold — literally. Our city has more than 10,000 homeless people, not to mention scores of others living (through no choice of their own) in deplorable conditions. The city builds more market-rate housing than it needs, while units for those below 50 percent of the city’s median income fall far short of the demand.

A mandate to house everyone in the city has never been tried. I don’t have an exact plan, but a “Housing SF” (like Healthy SF) might be created by pooling together all of our housing resources and aggressively working to pull in more. If the proposed Housing Trust Fund happens, it should be initially used only for those who need it most — the homeless and the poor, remembering that shelters are not housing, even if they’re considered such under Care Not Cash.

Put a moratorium on market-rate housing. Turn all abandoned properties (both city and privately owned) into affordable units. Raise money by letting the big businesses (including the tech companies) cough up some dough. Use land trusts as much as possible to keep the new places affordable into perpetuity.

It’s time to dream big.

Tommi Avicolli Mecca, editor of Smash the Church, Smash the State: The Early Years of Gay Liberation, is a longtime affordable housing advocate.

Why three families, who never missed a rent payment, may face eviction

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Alma Sierra has been living in her home at 490 Athens for three years. Sierra, her nine year old son, and two other mothers with their children share a rental unit. They have diligently paid their rent, and her son goes to school across the street. But last year, US Bank foreclosed on the small-time landlords that owned the property- now, the tenants face eviction.

“We’re three single mothers with children. We don’t have the means to just up and leave,” Sierra, a part-time domestic worker, told me through a translator from Causa Justa, an organization that works for tenants’ rights.

Their work helped pass the Just Cause eviction policy for which the organization is named last year.

Under city law, a landlord needs one of 14 reasons to justly evict a tenant. The reasons include failure to pay rent and trashing the property, as well as owner move-in and Ellis Act evictions.

But the foreclosure crisis has brought on a wave of bank-owned properties. These are tricky situations legally; banks generally want to sell the property, a task made more difficult if there are pesky tenants living there.

“The banks want to get rid of the tenants. The realtors for the banks always tell them they can get more money if there aren’t any tenants in it. Because that way they would have to do an owner move-in eviction,” said Tommi Mecca, a long-time tenants’ rights advocate in the city.

According to Mecca, US Bank has been pressuring the three families to leave the building, although no eviction papers have been filed yet. The Guardian is awaiting calls back from US Bank representatives.

In fact, it was only recently that the tenants even learned about the change of ownership, and contacted Causa Justa to ask for assistance.

The San Francisco Housing Rights Committee (SFHRC) got involved, as well- and discovered that the foreclosure had likely taken place in March of 2011.

“We got no notice about it,” said Sierra.

She added that she and the other tenants had continued to pay their rent to the former landlords for almost a year– even after the landlords no longer owned the property.

“It can take many months, in some cases longer, to actually sell property,” said Sarah Shortt, an organizer with the SFHRC.

“So in the meantime the bank is the landlord and they haven’t been responsible in lending or as landlords. They tend to disregard tenants’ rights and trample over the needs and concerns of renters.”

Even when tenants are made aware that the property they live in has been sold back to bank, it can often be difficult to determine who to turn to for repairs, complaints, or even the right address for rent checks.

“One of the things we see a lot of is, the bank acquires the property and then they’re just MIA. Tenants come to us and say, we don’t know who owns our building, where to pay rent, who to ask to fix leaky ceiling. We help them research to find who owner is,” said Shortt.

These situations often end with buy-outs, in which the bank pays the tenants to leave the property. The amount ranges, but according to Mecca, it can often be insubstantial.

“They start at $1,000, $3,000, something really insulting. And it’s only if tenants walk in somewhere like [the SFHRC] that we tell them, wait a minute, your tenancy is worth so much more than that.

As for Sierra and her roommates, they are determined not to leave.

“We don’t want to leave,” said Sierra. “We didn’t do anything wrong.”

At a press conference in front of a branch of US Bank on 16th and Mission today, more than 40 supporters came out to support the tenants in their attempts to stay in their home. In compliance with police, they left an aisle for pedestrians and blocked neither the sidewalk nor the street, and made efforts to allow customers room to enter and exit the bank. The manager opted to lock the doors anyway.

Once the door had been locked, some of the children who live in the unit taped letters they had hoped to deliver inside to the doors. One letter reads in part, “We have nowhere to go. None of our families can afford to move. And we shouldn’t have to. As tenants, we have rights in San Francisco.”

The letters cites a recent report which states that 2.3 million children in the United States have lost their homes to foreclosure  that one in eight children in the United States has been affected by foreclosure (based on data for loans that were made between 2004 and 2008.)

And supporters plan to keep up the pressure on banks in these and other cases of foreclosure and eviction- there’s hardly a lull before an “occupy the auctions dance party” planned for tomorrow.

For Shortt, the housing issue fits squarely into heightened protest activity launched by occupy protesters last fall.

“I think that’s one of the most important pieces of the occupy movement, starting to educate ourselves and each other about how ubiquitous the toll that’s been taken on cities, neighborhoods, communities by banking industry and one percent,” said Shortt.

“Any of these cases we talk about homeowners, renters, it’s the 99 percent we’re talking about, and tends to be the lower tier of the 99 percent, low income people are being disproportionately hit by this.”

The struggle for housing money at City Hall

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It’s barely March, and the next election isn’t until June and that’s just primaries and the Democratic County Central Committee, but we just started getting political mail anyway. It’s a piece from the Board of Realtors, denouncing plans for an increase in the real-estate transfer tax “to provide subsidized housing to people who want to live in San Francisco but don’t have the means to do so.” Mayor Ed Lee, the flier says, is backing this “outrageous” plan.

What, exactly, is going on here?

Well, for starters, the mayor is distinctly NOT pushing for an increase in the transfer tax, not right now, anyway. What he is doing is meeting with housing advocates and legislators and trying to come up with a stable source of funding for affordable housing — yes, for families and low-income people, many of them longtime residents who are being forced out by Ellis Act evictions, others of them people who work in the city and would rather live here than commute from Pinole, which everyone with any sense agrees is a good idea.

The problem: For years, San Francisco used Redevelopment Agency tax-increment money for affordable housing. Now that money’s gone, since the governor abolished redevelopment agencies. Actually, the money’s not gone, technically — the increased tax revenue from redevelopment project areas still exists. It’s just that the state is now taking a bunch of it, and other taxing entities like BART and the school district get some of it, and now it’s impossible to send bonds and borrow money against it. So what was once tens of millions for affordable housing is now a few million.

“We might have $20 million a year in the general fund,” said housing activist Peter Cohen. “But that’s compared to the $40 million or $50 million we had in the past, and it still leaves housing short.”

Lee has promised repeatedly to fix that problem, to find a way to make sure that there’s enough money that the nonprofits who build housing can plan and develop for the long term. Right now, it’s being called a Housing Trust Fund, but nobody knows exactly how it will actually work.

Remember: The city’s own General Plan states that 60 percent of all new housing should be available at below market rate. All of the regional growth projections say that San Francisco needs to build more housing — for its own workforce, not just for the rich. (And the local workforce, for all the tech jobs the mayor keeps hyping, is still mostly public-sector workers and service employees, most of whom can’t possibly afford the soaring rents and housing prices in this city.)

A lot of the existing affordable housing money comes from the city’s inclusionary housing law, which mandates that market-rate developers set aside a percentage of their new units (usually 20 percent) for lower-income people. Most developers eschew allowing poor people into their condo enclaves, so they pay a fee into a city fund instead.
But if we’re aiming for 60 percent, and we’re getting (at most) 20 percent, we’re a long ways off. Oh, and the developers are starting to argue that the 20 percent rule is too onerous and they can’t build enough condos for the rich if they have to throw scraps to the poor and middle-class, too.

And some supervisors are squawking about building more housing for the middle class, and right now in a zero-sum game, that means less for low-income people.
This all adds up to a mess for the mayor, and it’s no wonder some advocates are talking about raising the transfer tax — which, after all, is paid by the seller of a residential or commercial building, and while there are absolutely some houses underwater in San Francisco (and there should probably be an exemption in the tax for that situation), overall home prices are rising again, and many, probably most home sales these days involve substantial profit. It’s not a perfect tax, but it’s a tax on a class that is (generally) better off to support a class that is typically not so well off.

Here’s the problem: If the mayor supports a transfer tax, and that’s part of the final package, the realtors and the commericial building owners will no doubt put huge amounts of money into defeating it. That would mean Lee would have to raise a bucket of money and campaign really hard to pass it. But Lee’s demonstrated that he’s not the fighting type; he wants something that nobody serious will oppose. Which is why my sources at City Hall say that he wants the transfer tax off the table.

That could mean that the Housing Trust Fund will be a basic set-aside, a budgetary mandate that a certain amount of money go into a reliable fund for housing. That’s one of the city’s most pressing needs (really, if this becomes a city of just the rich, even those of us who own houses or have rent-controlled apartments won’t want to live here any more. Mayor Larry Ellison? Eeew.) So I’m okay with that. I’m not a big fan of set-asides, but this is the whole future of San Francisco we’re talking about.

So the realtors can take a chill pill — the mayor doesn’t want to get in a fight with you. Sigh.

Protesters climb on Wells Fargo roof to protest evictions

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Activists held a massive banner and pitched a tent on the roof of the Wells Fargo branch at 16th and Mission Jan 14, while 150 supporters watched from the parking lot. Seven were arrested.

Organizers say the demonstration was meant to draw attention to the bank’s complicity in unfair foreclosures and evictions.

The protest was planned by a coalition of Bay Area housing rights and homelessness advocacy groups, along with organizers from Occupy San Francisco.

Sarah Shortt, Executive Director of the San Francisco Housing Rights Committee, says that abuses by corporate banks are inextricably linked to issues that her group has been working on for years; “evictions, displacement, affordable housing, and tenants rights.”

After rallying at 16th and Mission, protesters looked up to see that six had climbed to the roof. They unfurled a banner reading “Banks: No Foreclosures/Evictions for Profit!”

A fire truck arrived ten minutes later, and put up a ladder to give the police and firefighters access to the roof.

The Police Department cooperated with protesters, assisting a negotiation with the bank branch’s manager. A letter detailing their demands, including a moratorium on foreclosures and an end to predatory and speculative loans, was apparently faxed to Wells Fargo spokeswoman Holly Rockwood.

Protesters said that they would not leave the roof until they had a meeting scheduled with Wells Fargo CEO John Stumpf. Six were arrested.
According to an SFPD statement, “A bank employee signed a private person’s arrest (citizens arrest) for trespassing.”

After those arrested were painstakingly shuttled down the ladder and into a police van, protesters blocked the van from leaving Hoff street between 16th and 17th for about ten minutes until it sped out through the parking lot. Protesters then marched to the nearby Mission Police Station, where a drummer from the Brass Liberation Orchestra, which often accompanies protest events in the city, was arrested for allegedly assaulting a police officer with her drum.

Those arrested on the roof were cited for trespassing and released within hours. Supporters have put up money to release the drummer, known as Montana; bail was set at $8,100.

While the drama on the roof unfolded, Shortt, along with organizers from Causa Justa: Just Cause and the San Francisco Tenants Union, spoke about abuses committed against tenants and homeowners. They also spoke about Wells Fargo’s investment in private prisons. 

In a press release, organizers said that the protest was meant to call attention to “predatory equity scams, Ellis Act evictions, and immoral home loans.”

The Ellis Act allows landlords to evict tenants for any reason, if they don’t re-rent the units at a higher price in the next five years. The act hasno restrictions on selling the units as tenancies in common — a backdoor way to create condos — and that’s a lucrative and common practice in the Mission.

Ellis Act evictions increased by 8% in 2011, According to the San Francisco Rent Board Annual Report.

Jose Morales, a tenant who was evicted based on the Ellis Act and activist with the San Francisco Tenants Union, spoke to the crowd Saturday. Said Morales, “I have osteoporosis, I’m 82 and a half years old, but you still see me walking around with my sign.”

He displayed protest signs declaring that housing is a human right and urging single-payer health care.

Mesha Irizarry also told her story to the protesters. Her Bayview home was sold to Bank of New York, then transferred to Bank of America on September 1, but says that she refuses to leave and is fighting the foreclosure.

“We do not play the blame-the-victim game. We are not alone. We are not ashamed to sat ay what has happened to us. We are fighting back, and we are going to win” said Irizarry, who named several other women who are resisting foreclosures in Bayview. 

Irizarry began a San Francisco chapter of Occupy the Hood, a group dedicated to confronting problems that disproportionately affect the poor and people of color within the Occupy Movement. In San Francisco, the branch has focused mainly on defending homes from foreclosure and eviction. Saturday’s protest was part of that effort.

This demonstration was also a part of a series targeting banks, that protesters plan to top off with a day-long “occupation of the financial district” January 20th.

Said Occupy SF Housing Coalition media spokesman Gene Doherty, “The banks and the development companies that have gotten us all into (the foreclosure crisis) are a major part of the problem…it is their ethical duty, moral duty right now to be fixing this. And if that means it’s going to eat into their profit, that means it eats into their profit.”

 

Homes for the 99 percent

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news@sfbg.com

Pressed by foreclosures, evictions, and an economic crisis with the gnawing tenacity of an early winter flu, San Franciscans protested in neighborhoods throughout the city on Saturday, Dec. 3. Marches from four of the city’s most impacted neighborhoods merged in the Financial District to pressure landlords, banks, and what the Occupy movement has dubbed the 1 percent to ease the spreading hardship surrounding housing in San Francisco.

“The 99 percent tenants and homeowners can no longer let the 1 percent banks and real estate speculators destroy our city and our lives so we’re marching in the neighborhoods and on the streets today,” asserted the statement read by the Occupy SF Housing coalition to the crowd gathered in the Financial District. The message echoed through the glass and granite corridors in front of Wells Fargo, passed along in a thousand voices by the now ubiquitous “mic check” style of Occupy crowd communication.

Housing advocates warned that a steady stream of foreclosures, climbing rents, and lagging job opportunities are driving even native San Franciscans out of the city for the relatively affordable housing in the East Bay or forcing them out of the region altogether, transforming the face of San Francisco into an older, whiter, wealthier demographic.

Throughout the economic crisis, San Francisco as a whole has posted lower foreclosure rates than surrounding counties. At first glance, San Francisco, with one in 880 homes facing foreclosure, looks like a safe harbor in the state’s troubled residential real estate market compared with the statewide foreclosure rate of one home in 243, according RealtyTrac. That represents 55,312 residential units across the state. Nationally, one in 563 homes was in some stage of foreclosure as of October 2011, the most recently released numbers.

However, a near absence of foreclosures in affluent, stable, San Francisco neighborhoods like Pacific Heights and Noe Valley hide troubling foreclose rates in the city’s blue collar ZIP codes that far exceed national and statewide levels. In the 94124 zip code that includes the Bayview and Hunters Point, one in 180 homes received foreclosure filings, higher then Oakland’s overall average rate of one in 245 homes — levels that reflect the experience of some of the nation’s most hard hit areas.

Of the 1,513 homes currently listed on the San Francisco housing market, 1,255 were in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process, representing roughly 82 percent of the available housing stock.

At the downtown headquarters of Wells Fargo, Occupy protesters were placing some of the blame for the deepening hardship at the feet of the big banks. According to the Occupy SF Housing coalition, Wells Fargo is the mortgage lender for 226 homes in San Francisco that are in some stage of foreclosure. That represents about 18 percent of the total homes in San Francisco under foreclosure.

In neighborhoods like Hunters Point, these evictions have turned into an economic cascade of household wealth in decline, even for those who have managed to hold onto their homes.

With foreclosures flooding the market, the median sales price for homes in Hunters Point from Aug. 11 to Oct. 11 was $167,500. This represents a decline of 13.2 percent, or $25,500 per home on average, compared to the prior quarter. Sales prices have depreciated 62.6 percent over the last five years in Hunters Point, wiping out equity families have built over years, and leaving those who hang on stuck in underwater mortgages, where their debt far exceeds the value of their home.

“Predatory equity loans make a quick profit (for the lender) at the expense of home owners in the Bayview,” said Grace Martinez of the Alliance of Californians for Community Empowerment (ACCE). “There are 11 homeowners on a two-block stretch of Quesada in default or have already lost their homes.”

While the Obama administration has tried to ease the foreclosure crisis through the federally subsidized Home Affordable Modification Program (HAMP), only a small percentage of people who apply through their mortgage holder for relief under the program receive a loan adjustment. At Wells Fargo, only one in five borrowers applying for HAMP relief have received a loan modification.

Protesters sitting in the streets in front of Wells Fargo demanded that the company establish a moratorium on all foreclosures until it reforms its loan modification practices, halts the eviction of homeowners who have faced foreclosure, and instead offers them a rental option to keep them in their homes — a solution they say will ease the suffering of those caught in the middle of the banking crisis.

The banking and real estate driven economic crash has lead to the largest drop in home ownership nationally since the Great Depression. At the same time that home ownership has become increasingly out of reach for many San Franciscans, increases in rental rates and high competition for rental units are driving out many blue collar San Franciscans from the transit-friendly Mission District, in favor of a generally younger, wealthier, more educated, tech-savvy population.

As rallies took place across the city Saturday in the lead up to the afternoon’s Wells Fargo protest, a group of concerned residents and community groups gathered at 24th and Mission to highlight San Francisco’s other housing crisis — the rental market. The other marches started in the Castro, the Bayview, and the Tenderloin.

Much of the turnover of long-occupied rent controlled housing units in San Francisco comes as a result of the Ellis Act, a state law that allows evictions when an owner’s family wants to move in or when the unit is taken off the rental market. Brenda Nedina’s family is facing an Ellis Act eviction at 874 Shotwell Street.

“I’ve lived in that unit my whole life. My family has lived in the unit for 28 years,” said the tearful, 25-year-old San Franciscan native. “We would love to stay here, but with rents so high, it is not likely that we would find a place in San Francisco.”

Nedina, who works a service industry job at Pier 39, says the economic crisis has made it more difficult for her survive in San Francisco. She has had to cut down her college course load to get by in the tough economy. The troubles will get more complicated if her family is priced out of the city, as critical health services that they rely on are available through their San Francisco residency.

“A lot of people suffer through this as a private problem, but we are making it a public problem, and if the problem belongs to all of us then so does the solution,” said Maria Poblet of Just Cause, hugging a tearful Nedina as she addressed a crowd gathered at 24th and Mission streets.

Latino families like Brenda’s continue to be forced out of the Mission District by rising rent, and less economic opportunity for them in the recession. According to the 2010 U.S. Census, the past decade has seen a 22 percent decrease in the Mission’s Latino population.

“Landlords often abuse the Ellis Act as a way to remove tenants from rent controlled units,” Just Cause organizer Maria Zamudio told the Guardian. “I’m occupying Kaleidoscope free speech zone art space on 24th and Folsom. My slumlord landlord is not down with that mission,” said artist and gallery proprietor Sara Powell, also facing a Ellis Act eviction after pressuring her landlord to address substandard building maintenance issues. Powell’s landlord withdrew a standard eviction process that housing advocates said was unlikely to succeed before launching the Ellis Act eviction.

“With the help off the 99 percent and with right on our side we are going to fight this and we are going to win,” said Powell, whose gallery next door to Philz Coffee is a cornerstone of the neighborhood’s multi-ethnic arts scene. The San Francisco Rent Board has received more than 4,000 petitions to remove rental units from the real estate market since 1999 through the Ellis Act. While Ellis Act evictions have seen some decline during the economic crisis, more Ellis Act evictions are now concentrated in the Mission District, where 40 percent of all Ellis Act petitions are now filed. At the same time, evictions based on breach of lease throughout the city are on track to double pre-recession numbers this year as more and more San Franciscans are have trouble earning enough to keep up with the city’s exorbitant rental rates. According to Just Cause, the average rent for a two-bedroom apartment in the Mission District is now $2,497. “The only way to keep our Chinese, Latino, Arabic, English speaking neighborhood is to fight like hell for our homes,” said Poblet. “Even before Wall Street was occupied, we have been defending this neighborhood. This is the neighborhood of the 99 percent.”

A new progressive agenda

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Over the past three months, the Guardian has been hosting a series of forums on progressive issues for the mayor’s race. We’ve brought together a broad base of people from different communities and issue-based organizations all over town in an effort to draft a platform that would include a comprehensive progressive agenda for the next mayor. All told, more than 100 people participated.

It was, as far as we know, the first time anyone tried to do this — to come up with a mayoral platform not with a few people in a room but with a series of open forums designed for community participation.

The platform we’ve drafted isn’t perfect, and there are no doubt things that are left out. But our goal was to create a document that the voters could use to determine which candidates really deserve the progressive vote.

That’s a critical question, since nearly all of the top contenders are using the word “progressive” on a regular basis. They’re fighting for votes from the neighborhoods, the activists, the independent-minded people who share a vision for San Francisco that isn’t driven by big-business interests.

But those of us on what is broadly defined as the city’s left are looking for more than lip service and catchy phrases. We want to hear specifics; we want to know that the next mayor is serious about changing the direction of city policy.

The groups who endorsed this effort and helped plan the forums that led to this platform were the Harvey Milk LGBT Club, SEIU Local 1021, the San Francisco Tenants Union, the Human Services Network, the Community Congress 2010, the Council of Community Housing Organizations, San Francisco Rising, Jobs with Justice, and the Center for Political Education.

The panelists who led the discussions were: Shaw-san Liu, Calvin Welch, Fernando Marti, Gabriel Haaland, Brenda Barros, Debbi Lerman, Jenny Friedenbach, Sarah Shortt, Ted Gullicksen, Nick Pagoulatos, Sue Hestor, Sherilyn Adams, Angela Chan, David Campos, Mario Yedidia, Pecolio Mangio, Antonio Diaz, Alicia Garza, Aaron Peskin, Saul Bloom, and Tim Redmond.

We held five events looking at five broad policy areas — economy and jobs; land use, housing and tenants; budget and social services; immigration, education and youth; and environment, energy and climate change. Panelists and audience participants offered great ideas and the debates were lively.

The results are below — an outline of what the progressives in San Francisco want to see from their next mayor.

 

 

ECONOMY AND JOBS

Background: In the first decade of this century, San Francisco lost some 51,000 jobs, overwhelmingly in the private sector. When Gavin Newsom was sworn in as mayor in January 2004, unemployment was at 6.4 percent; when he left, in January 2011, it was at 9.5 percent — a 63 percent increase.

Clearly, part of the problem was the collapse of the national economy. But the failed Newsom Model only made things worse. His approach was based on the mistaken notion that if the city provided direct subsidies to private developers, new workers would flock to San Francisco. In fact, the fastest-growing sector of the local economy is the public sector, especially education and health care. Five of the 10 largest employers in San Francisco are public agencies.

Local economic development policy, which has been characterized by the destruction of the blue-collar sector in light industry and maritime uses (ironically, overwhelmingly privately owned) to free up land for new industries in business services and high tech sectors that have never actually appeared — or have been devastated by quickly repeating boom and bust cycle.

Instead of concentrating on our existing workforce and its incredible human capital, recent San Francisco mayors have sought to attract a new workforce.

The Mayor’s Office has, as a matter of policy, been destroying blue-collar jobs to promote residential development for people who work outside of the city.

There’s a huge disconnect between what many people earn and what they need. The minimum wage in San Francisco is $9.92, when the actual cost of living is closer to $20. Wage theft is far too common.

There is a lack of leadership, oversight and accountability in a number of city departments. For example, there is no officiating body or commission overseeing the work of the Office of Economic and Workforce Development. Similarly the Arts Commission, the chartered entity for overseeing cultural affairs, is responsible for less than 25 percent of the budget reserved for this purpose

There’s no accountability in the city to protect the most vulnerable people.

The city’s main business tax is highly regressive — it’s a flat tax on payroll but has so many exceptions and loopholes that only 8,500 businesses actually pay it, and many of the largest and richest outfits pay no city tax at all.

 

Agenda items:

1. Reform the Mayor’s Office of Economic and Workforce Development to create a department with workforce development as a primary objective. Work with the San Francisco Unified School District, City College and San Francisco State to create sustainable paths to training and employment.

2. Create a municipal bank that offers credit for locally developed small businesses instead of relying on tax breaks. As a first step, mandate that all city short-term funds and payroll accounts go only to banks or credit unions that will agree to devote a reasonable percentage of their local loan portfolios for small business loans.

3. Reform procurement to prioritize local ownership.

4. Link economic development of healthcare facilities to the economic development of surrounding communities.

5. Link overall approval of projects to a larger economic development policy that takes as its centerpiece the employment of current San Francisco residents.

6. Enforce city labor laws and fund the agency that enforces the laws.

7. Establish the Board of Supervisors as the policy board of a re-organized Redevelopment Agency and create community-based project area oversight committees.

8. Dramatically expand Muni in the southeast portion of the city and reconfigure routes to link neighborhoods without having to go through downtown. Put special emphasis on direct Muni routes to City College and San Francisco State.

9. Reform the payroll tax so all businesses share the burden and the largest pay their fair share.

10. Consolidate the city’s various arts entities into a single Department of Arts & Culture that includes as part of its mandate a clear directive to achieve maximum economic development through leveraging the city’s existing cultural assets and creative strengths and re-imagining San Francisco’s competitive position as a regional, national and international hub of creative thinking. Sponsor and promote signature arts programs and opportunities to attract and retain visitors who will generate maximum economic activity in the local economy; restore San Francisco’s community-based cultural economy by re-enacting the successful Neighborhood Arts Program; and leverage the current 1-2 percent for art fees on various on-site building projects to be directed towards non-construction-site arts activity.

 

 

LAND USE, HOUSING AND TENANTS

Background: Since the office market tanked, the big land-use issue has become market-rate housing. San Francisco is building housing for people who don’t live here — in significant part, for either very wealthy people who want a short-term pied a terre in the city or for commuters who work in Silicon Valley. The city’s own General Plan calls for 60 percent of all new housing to be below-market-rate — but the vast majority of the new housing that’s been constructed or is in the planning pipeline is high-end condos.

There’s no connection between the housing needs of city residents and the local workforce and the type of housing that’s being constructed. Family housing is in short supply and rental housing is being destroyed faster than it’s being built — a total of 21,000 rental units have been lost to condos and tenancies in common.

Public housing is getting demolished and rebuilt with 2500 fewer units. “Hotelization” is growing as housing units become transitory housing.

Planning has become an appendage of the Mayor’s Office of Economic Development, which has no commission, no public hearings and no community oversight.

Projects are getting approved with no connection to schools, transit or affordable housing.

There’s no monitoring of Ellis Act evictions.

Transit-oriented development is a big scam that doesn’t include equity or the needs of people who live in the areas slated for more development. Cities have incentives to create dense housing with no affordability. Communities of concern are right in the path of this “smart growth” — and there are no protections for the people who live there now.

Agenda items:

1. Re emphasize that the Planning Department is the lead land-use approval agency and that the Mayor’s Office of Economic and Workforce Development should not be used to short-circuit public participation in the process.

2. Enact a freeze on condo conversions and a freeze on the demolition of existing affordable rental housing.

3. Ban evictions if the use or occupation of the property will be for less than 30 days.

4. Index market-rate to affordable housing; slow down one when the other is too far ahead.

5. Disclose what level of permanent affordability is offered at each project.

6. Stabilize existing communities with community benefits agreements before new development is approved.

 

 

BUDGET AND SOCIAL SERVICES

Background: There have been profound cuts in the social safety net in San Francisco over the past decade. One third of the city’s shelter beds have been lost; six homeless centers have closed. Homeless mental health and substance abuse services have lost $32 million, and the health system has lost $33 million.

None of the budget proposals coming from the Mayor’s Office have even begun to address restoring the past cuts.

There’s not enough access to primary care for people in Healthy San Francisco.

Nonprofit contracts with the city are flat-funded, so there’s no room for increases in the cost of doing business.

The mayor has all the staff and the supervisors don’t have enough. The supervisors have the ability to add back budget items — but the mayor can then make unilateral cuts.

The wealthy in San Francisco have done very well under the Bush tax cuts and more than 14 billionaires live in this city. The gap between the rich and the poor, which is destroying the national economy, exists in San Francisco, too. But while city officials are taking a national lead on issues like the environment and civil rights, there is virtually no discussion at the policy level of using city policy to bring in revenue from those who can afford it and to equalize the wealth disparities right here in town.

Agenda items:

1. Establish as policy that San Francisco will step in where the state and federal government have left people behind — and that local taxation policy should reflect progressive values.

2. Make budget set-asides a budget floor rather than a percentage of the budget.

3. Examine what top city executives are paid.

4. Promote public power, public broadband and public cable as a way to bring the city millions of dollars.

5. Support progressive taxes that will bring in at least $250 million a year in permanent new revenue.

6. Change the City Charter to eliminate unilateral mid-year cuts by the mayor.

8. Pass a Charter amendment that: (a) Requires the development of a comprehensive long-term plan that sets the policies and strategies to guide the implementation of health and human services for San Francisco’s vulnerable residents over the next 10 years, and (b) creates a planning body with the responsibility and authority to develop the plan, monitor and evaluate its implementation, coordinate between policy makers and departments, and ensure that annual budgets are consistent with the plan.

9. Collect existing money better.

10. Enact a foreclosure transfer tax.

 

 

YOUTH, IMMIGRATION, AND EDUCATION

Background: In the past 10 years, San Francisco has lost 24,000 people ages 12-24. Among current youth, 5,800 live in poverty; 6,000 have no high school degree; 7,000 are not working or attending school; 1,200 are on adult probation.

A full 50 percent of public school students are not qualified for college studies. Too often, the outcome is dictated by race; school-to-prison is far too common.

Trust between immigrants and the police is a low point, particularly since former Mayor Gavin Newsom gutted the sanctuary ordinance in 2008 after anti-immigrant stories in the San Francisco Chronicle.

Some 70 percent of students depend on Muni, but the price of a youth pass just went from $10 to $21.

Agenda items:

1. Recognize that there’s a separate role for probation and immigration, and keep local law enforcement from joining or working with immigration enforcement.

2. Improve public transportation for education and prioritize free Muni for youth.

3. Create family-friendly affordable housing.

4. Restore the recreation direction for the Recreation and Parks Department.

5. Implement police training to treat youth with respect.

6. Don’t cut off benefits for youth who commit crimes.

7. Shift state re-alignment money from jails to education.

 

ENERGY, ENVIRONMENT AND CLIMATE CHANGE

Background: When it comes to land use, the laws on the books are pretty good. The General Plan is a good document. But those laws aren’t enforced. Big projects get changed by the project sponsor after they’re approved.

Land use is really about who will live here and who will vote. But on a policy level, it’s clear that the city doesn’t value the people who currently live here.

Climate change is going to affect San Francisco — people who live near toxic materials are at risk in floods and earthquakes.

San Francisco has a separate but unequal transportation system. Muni is designed to get people downtown, not around town — despite the fact that job growth isn’t happening downtown.

San Francisco has a deepwater port and could be the Silicon Valley of green shipping.

San Francisco has a remarkable opportunity to promote renewable energy, but that will never happen unless the city owns the distribution system.

 

Agenda items:

1. Promote the rebirth of heavy industry by turning the port into a center for green-shipping retrofits.

2. Public land should be for public benefit, and agencies that own or control that land should work with community-based planning efforts.

3. Planning should be for the community, not developers.

4. Energy efficiency programs should be targeted to disadvantaged communities.

5. Pay attention to the urban food revolution, encourage resident owned farmers markets. Use unused public land for local food and community gardens.

6. Provide complete information on what parts of the city are fill, and stop allowing development in areas that are going to be inundated with sea level rise.

7. Prioritize local distributed generation of electricity and public ownership of the power grid.

8. Change Clean Energy San Francisco from a purchasing pool system to a generating system.

The real Leland Yee

53

tredmond@sfbg.com

It’s early January 2011, and the Four Seas restaurant at Grant and Clay is packed. Everyone who is anyone in Chinatown is there — and for good reason. In a few days, the Board of Supervisors is expected to appoint the city’s first Asian mayor.

The rally is billed as a statement of support for Ed Lee, the mild-mannered bureaucrat and reluctant mayoral hopeful. But that’s not the entire — or even, perhaps, the central — agenda.

Rose Pak, who describes herself as a consultant to the Chinese Chamber of Commerce but who is more widely known as a Chinatown powerbroker, is the host of the event. She stands in front of the room, takes the microphone, and, in Cantonese, delivers a remarkable political speech.

According to people in the audience, she says, in essence, that the community has come out to celebrate and support Ed Lee — but that’s just the start. She also urges them not just to promote their candidate — but to do everything possible to prevent Leland Yee from becoming mayor.

She continues on for several minutes, lambasting Yee, the state Senator who lived in Chinatown as a child, accusing him of about every possible political sin — and turning the Lee rally into an anti-Yee crusade. And nobody in the crowd seems terribly surprised.

Across Chinatown, from the liberal nonprofits to the conservative Chamber of Commerce, there’s a palpable fear and distrust of the man who for years has been among San Francisco’s most prominent Asian politicians — and who, had Lee not changed his mind and decided to run for a full term this fall, was the odds-on favorite to become the city’s first elected Chinese mayor.

The reasons for that fear are complex and say a lot about the changing politics of Asian San Francisco, the power structure of a city where an old political machine is making a bold bid to recover its lucrative clout — and about the career of Yee himself.

Senator Leland Yee is a political puzzle. He’s a Chinese immigrant who has built a political base almost entirely outside of the traditional Chinatown community. He’s a politician who once represented a deeply conservative district, opposed tenant protections, voted against transgender health benefits and sided with Pacific Gas and Electric Co. on key environmental issues — and now has the support of some of the most progressive organizations in the city. He’s taken large sums of campaign money from some of the worst polluters in California, but gets high marks from the Sierra Club.

His roots are as a fiscal conservative — yet he’s been the only Democrat in Sacramento to reject budget compromises on the grounds that they required too many spending cuts.

He’s grown, changed, and developed his positions over time. Or he’s become an expert at political pandering, telling every group exactly what it wants to hear. He’s the best chance progressives have of keeping the corrupt old political machine out of City Hall — or he’s a chameleon who will be a nightmare for progressive San Francisco.

Or maybe he’s a little bit of all of that.

 

Leland Yin Yee was born in Taishan, a city in China’s Guangdong province on the South China Sea. The year was 1948; Mao Zedong’s Communist Party of China had taken control of much of the countryside and was moving rapidly to take the major cities. The nationalist army of General Chiang Kai-Shek was falling apart, and Yee’s father, who owned a store, decided it was time for the family to leave.

The Yees made it to Hong Kong, and since Mee G. Yee had previously lived in the United States and served in the U.S. Army during World War II, he was ultimately able to move the family to San Francisco. In 1951, the three-year-old Leland Yee arrived in Chinatown.

For four years, Yee lived with his sister and mother in a one-room apartment with a shared bathroom while his father worked as a sailor in the merchant marine. It was, Yee recalled in a recent interview, a tight, closed, and largely self-sufficient community.

“The movie theater, the shoe store, the barber shop, food — everything you needed you could get in Chinatown,” Yee said. “You never had to leave.”

Of course, after a while, Yee and his mom started to venture out, down Stockton Street to Market, where they’d shop at the Emporium, the venerable department store. “It was like walking into a different country,” he said. “If you didn’t know English, they didn’t have time for you.”

Yee, like a lot of young Chinese immigrants of his era, put much of his time into his studies — in the San Francisco public schools and in a local Chinese school. “My mom spoke a village dialect, and we had to learn Cantonese,” he said. “Every little kid had to go to Chinese school. We hated it.”

When Yee was eight, his parents managed to buy a four-unit building on Dolores Street, and the family moved to the Mission, where he would spend not only the rest of his childhood but much of his early adult life. He graduated from Mission High School, enrolled in City College, studied psychology and after two years won admission to UC Berkeley.

Berkeley in 1968 was a very different world from Chinatown and even the relatively controlled environment he’d experienced at home in the Mission. “You didn’t protest in school. You’d have been sent home, and your mother would kill you,” he said.

At Berekely, all hell was breaking loose, with the antiwar protests, the People’s Park demonstrations, the campaign to create a Third World College (which led to the first Ethnic Studies Department), and a general attitude of mistrust for authority. “I developed a sense of activism,” Yee said. “I realized I could speak out.”

That spirit quickly vanished when Yee lost faith in some of his fellow activists. “People would work with us, then get into positions of power and use that against you,” he recalled. “A lot of my friends said ‘forget it.’ I left the scene.”

Yee once again devoted his energy to school, earning a masters at San Francisco State University and a Ph.D in child psychology from the University of Hawaii. Along the way, he met his wife, Maxine.

With his new degree, the Yees moved back to San Francisco — and back in with his parents at the Dolores property, where he, Maxine and a family that would grow to four kids would live for more than a decade.

 

Yee worked as a child psychologist for the San Francisco Department of Public Health, starting the city’s first high school mental-health clinic. He went on to become a child psychologist at the Oakland Unified School District, then joined a nonprofit mental health program in San Jose.

In 1986, Yee decided to get active in politics for the first time since college, and ran for the San Francisco School Board. He lost — and that would be the only election he would ever lose. In 1988, he won a seat, and established himself as an advocate for students of color, fighting school closures in minority neighborhoods. He also tried to get the district to modify its harsh disciplinary rules, arguing against mandatory expulsions.

On fiscal issues, though, Yee was a conservative. For his first term, despite the brutal cutbacks of the recession of the late 1980s and early 1990s, he insisted that the district make do with the money it had. His solution to the red ink: Cut waste. Only in 1992, when he was up for re-election, did he acknowledge that the district needed more cash; at that point, he supported a statewide initiative to tax the rich to bring money to the schools.

The sense of fiscal conservatism — of holding the line on taxes, but mandating open and fair contracting procedures and tight financial controls — was a hallmark of much of his political career. When the Guardian endorsed him for re-election to the board in 1992, we wrote that “there’s real value in his continuing vigilance against administrative fat and favoritism in contracts.”

Over the next four years, Yee worked with then-Superintendent Waldemar “Bill” Rojas, a deeply polarizing figure who pushed his own personal theory of “reconstitution” — firing all the staff at low-performing schools — and later was enmeshed in a scandal that led to prison time for a contractor he’d hired. Yee told me he was the only board member to vote against hiring Rojas, but people who were watching the board closely back then say he didn’t always stand up to the superintendent.

He also became what some say was a bit too close with Tim Tronson, a consultant hired by the district as a $1,000-a-day facilities consultant. Tronson wound up getting indicted on 22 counts of grand theft, embezzlement, and conspiracy in a scheme to steal $850,000 from the schools, and was sentenced to four years in state prison.

In 1998, when some school board members wanted to build housing for teachers on property that the district owned in the Sunset, Yee led the opposition — with Tronson’s help. At one meeting at Sunset Elementary School, Yee went so far as to say, according to people present, that “Tim Tronson is my man, and I rely on him for advice.”

Yee acknowledged that he worked closely with Tronson to defeat that housing project. “He was the facilities manager,” Yee explained, “and I said that I trusted his judgment.”

 

Yee has either a great sense of political timing or exceptional luck. He ran for the Board of Supervisors in 1996, facing one of the weakest fields in modern San Francisco history. He was the only Chinese candidate and one of just two Asians (the other, appointed incumbent Michael Yaki, barely squeaked to re-election). In an at at-large election with the top five winning seats, Yee came in third, with 103,000 votes.

He was never a progressive supervisor. In 2000, the Guardian ranked the good votes of what we referred to as Willie Brown’s Board, and Yee scored only 43 percent. He was against campaign finance reform. He supported the brutal gentrification and community displacement represented by the Bryant Square development. He voted to kill a public-power feasibility study and opposed the Municipal Utility District initiative. He opposed a moratorium on uncontrolled live-work development.

In 2002, Yee was one of only three supervisors to oppose Proposition D, a crucial public-power measure that would have broken up PG&E’s monopoly in the city. He stood with PG&E (and then-Sups. Tony Hall and Gavin Newsom) in opposition to the measure, then signed a pro-PG&E ballot argument packed with PG&E lies.

When I asked him about that stand, Yee at first didn’t recall opposing Prop. D, but then said he “stood with labor” on the issue. In fact, the progressive unions didn’t oppose Prop. D at all; the opposition was led by PG&E’s house union, IBEW Local 1245.

Yee was particularly bad on tenant issues. He not only voted to deny city funding for the Eviction Defense Collaborative, which helped low-income tenants fight evictions; he actually tried to get the city to put up money for a free legal fund to help landlords evict their tenants. He opposed a ballot measure limiting condo conversions. He opposed a measure to limit the ability of landlords to pass improvement costs on to their tenants.

In 2001, Yee voted to uphold a Willie Brown veto of legislation to limit tenancies in common, a backdoor way to get around the city’s condo conversion ordinance. Only Hall and Newsom, then the most conservative supervisors on the board, joined Yee. At one point, he started asking whether the city should consider repealing rent control.

He opposed an affordable housing bond in 2002, joining the big landlord groups in arguing that it would raise property taxes. Every tenant group in town supported the measure, Proposition B; every landlord group opposed it.

I asked Yee about his tenant record, and he told me that he now supports rent control. But he said that he was always on the side of homeowners and small landlords, and that property ownership was central to Chinese culture. “I was responding to the Chinese community and the West Side,” he said.

He wasn’t much of an environmentalist, either — at least not in today’s terms. He was one of the only city officials to support a “Critical Car” rally in 1999, aimed at promoting the rights of vehicle drivers (and by implication, criticizing Critical Mass and the bicycle movement).

His record on LGBT issues was mixed. While he supported a counseling program for queer youth when he was on the school board, he also supported JROTC, angering queer leaders who didn’t want a program in the public schools run by, and used as a recruiting tool for, the military, which at that point open discriminated against gay and lesbian people.

 

 

Yee was also one of only two supervisors who voted in 2001 against extending city health benefits to transgender employees.

That was a dramatic moment in local politics. Nine votes were needed to pass the measure, and while eight of the supervisors were in favor, Yee and Hall balked. At one point, Board President Tom Ammiano had to direct the Sheriff’s Office to go roust Sup. Gerardo Sandoval, who was ducking the issue in his office, to provide the crucial ninth vote.

Yee didn’t just vote against the bill. According to one reliable source who was there at the time, Yee spoke to a community meeting out on Ulloa Street in the Sunset and berated his colleagues, quipping that the city should have better things to do than “spend taxpayer money on sex-change operations.”

It was a bit shocking to trans people — Yee had, over the years, befriended some of the most marginalized members of what was already a marginalized community. “There was one person at the rail crying, saying ‘Leland, how could you do this to us,'” Ammiano recalled.

The LGBT community was furious with Yee. “I didn’t speak to him for at least a year,” Gabriel Haaland, one of the city’s most prominent transgender activists, told me.

Yee now says the vote was a mistake — but at the time, he told me, he was under immense pressure. When he voted for the queer youth program, he said, “the elders of the Chinese community ripped me apart. They called my mother’s friends back in the village [where he was born] and said her son was embarrassing the Chinese community.”

That must have been difficult — and he said that “if I had known the pain I had caused, I wouldn’t have voted that way.” But it was hard to miss that pain his vote caused.

On the other hand, people learn from their experiences, attitudes evolve, we all grow up and get smarter, and the way Yee describes it, that’s what happened to him.

In 2006, when he was running for state Senate, Yee met with a group of trans leaders and formally — many now say sincerely — apologized. It was an important gesture that made a lot of his critics feel better about him.

“He didn’t have to do that,” Haaland said. “People change, and he paid for his crime, and that’s genuine enough for me.”

As a former school board member, Yee kept an interest in the schools — but not always a healthy one. At one point, he actually proposed splitting SFUSD into two districts, one on the (poorer) east side of town and one on the (richer) west. “We strongly opposed that,” recalled Margaret Brodkin, who at the time ran Coleman Advocates for Children and Youth. “Eventually he dropped the idea.”

For all the problems, in his time on the Board of Supervisors, Yee developed a reputation for independence from the Brown Machine, which utterly dominated much of city politics in the late 1990s. His weak 43 percent rating on the Guardian scorecard was actually third-best among the supervisors, after Ammiano and the late Sue Bierman.

In 1998, he was one of the leaders in a battle to prevent the owners of Sutro Tower from defying the city’s zoning administrator and placing hundreds of new antennas on Sutro Tower. He, Bierman, and Ammiano were the only supervisors opposing Brown’s crackdown on homeless people in Union Square.

When he ran in the first district elections, in 2000, against two opponents who had Brown’s support and big downtown money, the Guardian endorsed him, noting that while he “can’t be counted on to support worthy legislation … He’s one of only two board members who regularly buck the mayor on the big issues.”

(He never liked district elections, and used to take any opportunity to denounce the system, at times forcing Ammiano to use his position as president to tell Yee to quit dissing the electoral process and get to the point of his speech.)

 

In 2002, the westside state Assembly district seat opened up, and both Yee and his former school board colleague Dan Kelly ran in the Democratic primary. Yee won, and went on to win the general election with only token opposition.

His legislative record in the Assembly wasn’t terribly distinguished. Yee never chaired a policy committee — although he did win a leadership post as speaker pro tem. And he cast some surprisingly bad votes.

In 2003, for example, then-Assemblymember Mark Leno introduced a bill that would have exempted single-room occupancy hotels from the Ellis Act, which allows landlords to evict tenants for no reason. Yee refused to vote for the bill. Leno was furious — he was one vote short of a majority and Yee’s position would have doomed the bill. At the last minute, a conservative Republican who had grown up in an SRO hotel voted in favor.

When he ran for re-election in 2004, we noted: “What’s Leland Yee doing up in Sacramento? We can’t figure it out — and neither, as far as we can tell, can his colleagues or constituents. He’s introduced almost no significant bills — compared, for example, to Assemblymember Mark Leno’s record, Yee’s is an embarrassment. The only high-profile thing he’s done in the past several years is introduce a bill to urge state and local governments to allow feng shui principles in building codes.”

In 2006, Yee decided to move up to the state Senate, and he won handily, beating a weak opponent (San Mateo County Supervisor and former San Francisco cop Mike Nevin) by almost 2-1. His productivity increased significantly in the upper chamber — and in some ways, he moved to the left. He’s begun to support taxes — particularly, an oil severance tax — and when I’ve questioned him, he somewhat grudgingly admits that Prop. 13 deserves review.

He’s done some awful stuff, like trying to sell off the Cow Palace land to private developers. But he has consistently been one of the best voices in the Legislature on open government, and that’s brought him some national attention.

Yee has been a harsh critic of spending practices and secrecy at the University of California, and when UC Stanislaus refused in 2010 to release the documents that would show how much the school was paying Sarah Palin to speak at a fundraiser, Leland flew into action. He not only blasted the university and introduced legislation to force university foundations to abide by sunshine laws; he worked with two Stanislaus students who had found the contract in a dumpster and made headlines all over the country.

He’s fought for student free speech rights and this year pushed a bill mandating that corporations that get tax breaks for job creation prove that they’ve actually created jobs — or pay the tax money back. He’s also won immense plaudits from youth advocates and criminal justice reformers for his bill that would end life-without-parole sentences for offenders under 18.

Along the way, he compiled a 100 percent voting record from the major labor unions, including the California Nurses Association and SEIU, and with the Sierra Club. All three organizations have endorsed him for mayor.

Yee told me that he thinks he’s become more progressive over the years. “My philosophy has shifted,” he said.

Yet when you talk to his colleagues in Sacramento, including Democrats, they aren’t always happy with him. Yee has a tendency to be a bit of a loner — he’s never chaired a policy committee and in some of the most bitter budget fights, he’s refused to go along with the Democratic majority. Yee insists that he’s taken principled stands, declining to vote for budget bills that include deep service cuts. But the reality in Sacramento is that budget bills have until this year required a two-thirds vote, meaning two or three Republicans have had to accept the deal — and losing a Democratic vote has its cost.

“You have to give up all sorts of things, make terrible compromises, to get even two Republicans,” one legislative insider told me. “When a Democrat goes south, you have to find another Republican, and give up even more.”

In other words: It’s easy to take a principled stand, and make a lot of liberal constituencies happy, when you aren’t really trying to make the state budget work.

 

I met Rose Pak on a July afternoon at the Chinatown Hilton. She brought along her own loose tea, in a paper package; the waitress, who clearly knew the drill, took it back to the kitchen to brew. Pak and I have not been on the greatest of terms; she’s called the Guardian all kinds of names, and I’ve had my share of critical things to say about her. But on this day, she was polite and even at times charming.

After we got the niceties out of the way (she told me I was unfair to her, and I told her I didn’t like the way she and Willie Brown played politics), we started talking about Yee. And Pak (unlike some people I interviewed for this story) was happy to speak on the record.

She told me Yee had “no moral character.” She told me she couldn’t trust him. She told me a lot of stories and made a lot of allegations that we both knew neither she nor I could ever prove.

Then we got to talking about the politics of Chinatown and Asians in San Francisco, and a lot of the animosity toward Yee became more clear.

For decades, Chinatown and the institutions and people who live and work there have been the political center of the Chinese community. Nonprofits like the Chinatown Community Development Center have trained several generations of community organizers and leaders. The Chinese Chamber of Commerce, the Six Companies, and other business groups have represented the interests of Chinese merchants. And while the various players don’t always get along, there’s a sense of shared political culture.

“In Chinatown,” Gordon Chin, CCDC’s director, likes to say, “it’s all about personal connections.”

There’s a lively infrastructure of community-service programs, some of which get city money. There’s also a sense that any mayor or supervisor who wants to work with the Chinese community needs to at least touch base with the Chinatown establishment.

Yee doesn’t do that. “He doesn’t give a shit about them,” David Looman, a political consultant who has worked with many Chinese candidates over the years, told me.

Yee’s Asian political base is outside of Chinatown; he told me he sees himself representing more of the Chinese population of the Sunset and Richmond and the growing Asian community in Visitacion Valley and Bayview.

Pak is connected closely to Brown, who Yee often clashed with. For Pak, Brown, and their allies, strong connections to City Hall mean lucrative lobbying deals and public attention to the needs of Chinatown businesses. Then there’s the nonprofit sector.

CCDC and other nonprofits do important, sometimes crucial work, building and maintaining affordable housing, taking care of seniors, fighting for workers rights, and protecting the community safety net. Yee, Pak said, “has never shown any interest in our local nonprofits. We all work together here, and he doesn’t seem to care what we do.” Yee told me he has no desire to see funding cut for any critical social services in any part of town. But he has also made no secret of the fact that he questions the current model of delivering city services through a large network of nonprofits, some of which get millions of taxpayer dollars. And the way Pak sees it, all of that — the nonprofits, the business benefits, the contracts — are all at risk. “If Leland Yee is elected mayor,” she told me, “we are all dead.”

I ran into an old San Francisco political figure the other day, a man who has been around since the 1970s, inside and outside of City Hall, who remains an astute observer of the players and the power relationships in the local scene. At the time we talked, he wasn’t supporting any of the mayoral candidates, but he had a thought for me. “This town,” he said, “is being taken over by a syndicate. Willie Brown is the CEO, and Rose Pak is the COO, and it’s all about money and influence.”

That’s not a pleasant thought — I’ve lived through the era of political machine dominance in this town, and it was awful. In the days when Brown ran San Francisco, politics was a tightly controlled operation; only a small number of people managed to get elected to office without the support of the machine. Developers made land-use policy; gentrification and displacement were rampant; corruption at City Hall turned a lot of San Franciscans off, not only to the political process but to the whole notion that government could be a positive force in society.

A few years ago, I thought those days were over — and to a certain extent, district elections will always make machine politics more difficult. But when I see signs of the syndicate popping up — and I see a candidate like Ed Lee, who’s close friends with Brown, leading the Mayor’s Race — it makes me nervous. And for all his obvious flaws, at least Leland Yee isn’t part of that particular operation. If there’s a better reason to vote for him, I don’t know what it is.

YEE HOME PURCHASE RAISES SUSPICIONS

Rose Pak has a question about Leland Yee. “How,” she asked me, “did the guy manage to buy a million-dollar house on a $30,000 City Hall salary?”

Pak isn’t the only one asking — numerous media reports over the years have examined how Yee raised a family of four and bought a house in the Sunset on very little visible income. And while I’m not usually that interested in the personal finances of political candidates, I decided that it was worth a look.

Here’s what I found: Public records show that in July 1999, Yee and his wife, Maxine, purchased a house on 24th Avenue for $875,000 (it’s now assessed at slightly more than $1 million). At the time, Yee was a San Francisco supervisor, earning a little more than $30,000 a year. (The salary of the supervisors was raised dramatically shortly after Yee left the board and went to the state Assembly.) His wife wasn’t working. And his economic interest statements for that period show no other outside earnings. So the disposable, after-tax income of the entire Yee family couldn’t have been much more than $25,000.

That, by any normal standard, shouldn’t have been enough to float a mortgage that, records show, totaled $516,000. In fact, the interest payments alone on that mortgage alone would total $3,600 a month — more than Yee’s gross income.

Documents in the Assessor’s Office show another paper trail, too. In 1989, Jung H. Lee, Yee’s mother, transferred the deed on a four-unit Dolores St. building where the family had been living to Maxine and Leland Yee — for no money. And a few months before the Yees bought the Sunset house, they took out a $320,000 home-equity loan on that property. That was the down payment on the Sunset property.

Still: At that point, the Yees would have been paying off two mortgages, with a total nut of about $5,000 a month — and supporting four kids, in San Francisco. In 2002, Yee’s economic interest statement’s show some modest income from teaching at Lincoln University — but nowhere near enough to pay that level of expenses.

What happened? Yee explains it this way: “For more than 10 years, we were living rent-free in my parents’ property,” he told me I an interview. “We were a close Chinese family, and my parents provided the food and helped pay for the children’s clothing. So we had almost no expenses and we lived very frugally.”

During that period, Yee was working for the San Francisco Department of Public Health, the Oakland Unified School District, and a San Jose nonprofit, earning, he said, between $50,000 and $90,000 a year. If he saved almost all of that money, he would have had more than a half-million dollars in the bank when he bought the Sunset house.

There’s nothing on any of his economic disclosure forms showing any ownership of stocks or other reportable financial interests during that period, so he wasn’t investing the money. In fact, he says, it was, and is, all in simple savings accounts. A bit unusual for that large a sum of money.

How did he get a mortgage? “Back then,” he said, “banks were willing to lend a lot more freely than they do today.”

Starting in 2003, Yee was in the state Assembly, making a higher salary — but still not much in excess of $100,000 a year. After taxes, he was probably taking home about $75,000 — and $60,000 was going to the two mortgages.

How did he do it? “We have been supplementing our income with our savings,” he said. “We don’t take vacations, we are very careful with our money.” And they clearly aren’t desperate for cash — Yee’s daughter occupies two of the four units in the Dolores St. building they own, but the other two units are vacant.

It’s possible. It’s plausible. But I don’t blame people for wondering how he managed to pull it off. (Tim Redmond, with research assistance by Oona Robertson) 

 

 

 

BIG CORPORATIONS HAVE BACKED YEE

Yee became a prodigious fundraiser in Sacramento — and a lot of the money came from big corporations that had business in the Legislature. And while he has perfect scores from the Sierra Club and the big labor unions, he’s taken tens of thousands of dollars from some of the biggest corporations, agribusiness interests, and polluters in the state. And at times, he’s voted their way.

Since 1993, for example, campaign finance records show Yee has taken more than $20,000 from Chevron, ExxonMobil, Valero, Conoco Phillips, and BP. He’s received another $22,450 from the chemical industry (and industry employees). Most of it came from Clorox, Dow Chemical, and Dupont.

And while the Sierra Club may not have considered it a priority, Sen. Mark Leno has worked hard to pass a bill limiting chemical fire retardants in furniture. In 2008, Yee voted against Leno’s AB 706.

That year he also refused to support a bill that would prohibit the use of the chemical diacetyl in workplaces. The industries that opposed AB 514 (including Bayer, Abbott Laboratories, Pfizer, and Johnson & Johnson) have given Yee a total of more than $60,000.

In 2003, Yee voted against a crucial tenant bill, one that would have prevented the owners of single room occupancy hotels from using the Ellis Act to evict tenants. He received a campaign check for $2,500 from the San Francisco Apartment Association the next day. Landlords in general have given Yee close to $40,000.

Then there’s agribusiness. Yee gets a lot of money from the farming industry, despite the fact that there obviously aren’t many farms in his district. Why, for example, would the California Poultry Association, the California Cattlemen’s Association, and the California Farm Bureau give him money? The Poultry Association’s Bill Mattos told us that Yee “has taken a keen interest in California’s poultry industry.”

Yee also took immense flak from the San Francisco Chronicle and other papers over a 2003 vote against a bill to limit emissions from farm vehicles. In an editorial, the paper wrote that he was “doing dirty work for the lobbyists.” In the end, under immense public pressure, he switched positions and voted for the bill. I asked Yee about all that money from all those bad operators, and he told me — as most politicians will — that campaign cash has never influenced any of his votes.

So why do all these groups give him money? “It’s about whether you will sit down and listen,” Yee said. “I will talk to all sides and at least consider the arguments as a thoughtful human being. Then I vote my conscience.” (Tim Redmond, with research by Oona Robertson) 

Extra! Nevius finds a bad landlord!

6

Our old buddy C.W. Nevius actually found a landlord he doesn’t like — a guy named Peter Iskander who is trying to toss some seniors and disabled people out on the streets. In a classic bleeding-heart column April 17, he lamented the pending evictions, which would pave the way for the landlord to turn some rental units into tenancies in common:


Imagine the sight of Carlo Tarrone, who is in his 70s and uses a walker, and Sandy Bishop, who is 70 and has lung cancer, forced out of their homes.


Imagine it, Chuck. It happens all the time. It’s been happening for years in this city (and elsewhere), in large part because of the Ellis Act, a truly abominable law that paves the way for landlords to evict tenants and then sell the units for fast cash. Nevius seems to understand that the Ellis Act is behind this particular horror story — but instead of suggesting that the law ought to be changed, he ends his column by suggesting that San Francisco ought to make these sorts of evictions more profitable:


Maybe it is time to start looking at ways to get middle-class buyers into San Francisco real estate. Mayor Ed Lee is looking at a one-time “condo bypass,” an idea floated by Mayor Gavin Newsom in 2010, where tenancies in common residents could pay a large fee to be allowed to convert to a condo. No one would be evicted, and the cash-strapped city could gain millions in fees.


Another plan is “fractional” mortgages for tenants in common. Rather than the old model where everyone in the building is part of a large single mortgage, each unit would have its own mortgage, making it sort of a pseudo-condo.


Actually, Chuck,  both of those plans will make condos and TICs more attractive. That means more evictions of old people — and poor people, and middle-class people who want to live in the city and are getting forced out by somewhat richer middle class people. It’s an awful situation, and what Nevius calls for would just make it worse.


When there’s enough publicity, sometimes bad landlords back off, and I’m sure Nevius will celebrate if that happens as the result of his column. I’ll be happy, too; every inappropriate eviction averted is another small victory. But most tenants don’t get daily newspaper columns written about tham, and you can’t fight this battle one case at a time. You need structural reforms, and repealing the Ellis Act is step one.