Evictions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Big soda explodes on SF, gives $7.7 million to fight beverage tax

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If the soda tax proponents brought a supersoaker to the November ballot showdown, the soda industry brought a tsunami. New campaign finance reports filed today [Mon/6] show the soda industry gave $7.7 million dollars to shoot down the sugary beverage tax in San Francisco, and no, this does not count money spent in Berkeley against our sister city’s beverage tax. 

That number is completely off the charts. In San Francisco local politics, journalists have written screeds against local tech angel investor Ron Conway for throwing $50,000 at an Assembly race, for a point of reference. It may not be record setting though. In 2008, PG&E spent nearly $10 million to take down a clean energy initiative, Proposition H. Still, $7.7 million is simply an absurd amount of money in terms of San Francisco politics, and rarely seen.

And the American Beverage Association still has the entire month of October to outspend PG&E.

“It makes your eyeballs pop,” said Sup. Scott Wiener, a co-author of San Francisco’s sugary beverage tax, along with Sup. Eric Mar. “The rule of thumb is, if you can raise $1 million in San Francisco, you’re in good shape. I don’t even know what you’d do with $7 million.”

The money spent also bests the record set in nearby Richmond. The failed beverage tax was defeated handily with $2.6 million spent against it. It’s that frightening amount that spurred Wiener and Mar to start a grassroots campaign for the sugary beverage tax a year early. The San Francisco measure, on this November’s ballot, would levy a 2-cents-per ounce tax on sugary drinks sold in containers. The money would go directly into health and wellness programs in schools and city recreation centers. 

But the sugary beverage tax proponents have only raised about $225,000 so far, which is nowhere near the ballpark of the $7.7 million mark. San Francisco is awash in carbonated dollars.

Even more staggering is who the money is from. Most campaign finance forms show a long list of donors. Maybe a few firefighters kick in $500 here, maybe a retiree kicks in $100 there. This form has one, single campaign donor: the American Beverage Association, which is primarily funded by Pepsi Co. and Coca Cola. 

What does all that money buy? Well, for starters, a whole lot of political ads. The expenditures listed against Proposition E, the soda tax, list over $3,750,000 spent with GCW Media Services, who make slick campaign ads like the one below.

It also goes toward paying those oh-so-pleasant mailed ads, you know, the ones trying to link the soda tax with the rising cost of living, and evictions? The US Postal Service alone netted $3,500 to send those off.

The Young Democrats, who endorsed No on the Sugary Beverage Tax, got a whopping $20,000 for their troubles. And notably, Chile Lindo, whose owner repeatedly came out to testify against the sugary beverage tax, was paid $812. 

And let us not forget our friends at BMWL and Partners, paid over $161,000 by the American Beverage Association so far. No wonder Chuck Finnie, a flack at BMWL, got so testy with us when we questioned claims by the ABA.

“I was a journalist for 20 years, and this is bullshit,” the ex-San Francisco Chronicle investigative reporter told us. “The gloves are off.”

They certainly are. Big soda isn’t sparing a solitary dime when it comes to flooding our TV stations, our radio airwaves, our streets, and our billboards with a straightforward message: to vote against the sugary beverage tax. 

But the real message behind that effort is much easier to see, now that we know how much money they’ve spent.

They’re scared. 

Sugary beverages contribute much to obesity and diabetes rates in San Francisco and beyond, studies have shown, and the showdown with the soda industry in San Francisco and Berkeley could ripple across the country. Big soda’s big lobbyists are running astroturf campaigns we’ve exposed in previous coverage, and this $7.7 million show just how seriously the big soda companies consider these new taxes a threat to their livelihoods.

The only question is, will their big money succeed in hoodwinking San Francisco?

We’ve embedded the campaign filing below, which you can read for yourself or download.



Opponents seek changes in Airbnb legislation before big hearing

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

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

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

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

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

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

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

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

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

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

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

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

Guardian Intelligence: Sept. 24 – 30, 2014

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MASONIC MOONWALK

Beck brought his endlessly funky band to the new Masonic Sept. 19 for opening night, where they ran through melancholy new tunes from this year’s Moon Phase before switching gears toward his more upbeat hits for a serious dance party (there was caution tape involved). See a full review and more photos on our Noise blog at SFBG.com PHOTO BY ERIN CONGER

TIFF TAKES

Bay Guardian film festival correspondent Jesse Hawthorne Ficks returned from the 2014 Toronto International Film Festival, having deployed his usual tactic of seeing as many films as possible — and then writing about them at length on the Pixel Vision blog at SFBG.com. Visit the Pixel Vision blog for his series of posts, including takes on the trend toward ultra-long films (FYI, he’s a huge Lav Diaz fan…), Joshua Oppenheimer’s The Look of Silence (pictured), Bennett Miller’s Foxcatcher, and other buzzed-about titles. PHOTO COURTESY OF TIFF

DEATH TO CAPITALISM!

The Bay Area’s edition on the Sept. 21 Global Climate Convergence was held on the edge of Lake Merritt in Oakland, where some of the best speakers went full-on commie in connecting capitalism to the climate crisis, calling for revolutionary change. Socialist Action’s Jeff Mackler brought the old-school Trotskyite class analysis while up-and-coming Socialist Alternative (the party of Seattle City Council member Kshama Sawant) had a strong presence. The Coup’s Boots Riley opened with an a cappella “Love for the Underdog,” followed by some fiery oratory and a couple more strong songs, including the militant anthem “Ghetto Blaster.” Power to the people!

EXPORTING CYCLETRACKS

San Francisco pushed the envelope in building cycletracks, bike lanes physically separated from cars, before state law allowed them. But on Sept. 20, when Gov. Jerry Brown signed AB 1193, a bill by Assemblymember Phil Ting (D-SF) that inserted cycletrack standards into state transportation codes, they suddenly became a legal, easy option for cities around the state to start building, just like they already do in Europe. So as cyclist safety improves in California, they can have San Francisco to thanks. You’re welcome.

GLOVER INSPIRES

Major kudos to actor and local hero Danny Glover for his recent visit to the San Francisco County Jail Reentry Pod. “With that great smile and laid-back style, Danny connected with inmates about preparing to get out and staying out,” said Sheriff Ross Mirkarimi, who spent some time with Glover and inmates preparing for release. “Be the example.” The reentry pod stems from a collaboration between the Sheriff’s Department and Adult Probation, to prepare AB109 prisoners from state realignment for their release. PHOTO COURTESY SF SHERIFF’S DEPARTMENT

EVICTION PROTECTION

Now you can don condoms against evictions! At Folsom Street Fair, activists handed out condoms adorned by the face of Ellis Act evictor (and leather lover) Jack Halprin. Why are the protesters equating him with an ejaculate receptacle? Halprin purchased a San Francisco property on Guerrero two years ago and filed to evict the tenants under the Ellis Act, one of whom is a San Francisco elementary school teacher with a 2-year-old son. From the condom wrapper: “Jack be simple, Jack’s a dick! Jack’s evictions make us sick!”

TRI-VALLEY POUR-A-THON

This issue of the Guardian is all about delicious travel — here’s something close to home that will have beer lovers gripping their steins. The new Tri-Valley Beer Trail lights up Pleasanton, Livermore, San Ramon, Dublin and Danville with foamy craft goodness — reinstating that area as one of the original homes of California beer (the region formerly contained one of the largest hops farms in the world). Fifteen stops, innumerable beers to try, and warm weather all the way. See www.visittrivalley.com for more details.

OPEN SEASON

Art Explosion Studios, the Mission’s largest artist collective, prides itself on supplying affordable studio space to local painters, sculptors, photographers, jewelers, fashion designers, and other creative types. An affordable situation for artists? In the Mission? What is this, 1994? Support this organization and meet the artists (over 100 in total) right where they do their makin’ at the annual Art Explosion Fall Open Studios. Hit up the opening gala Fri/26, 7-11pm, or stop by Sat/27-Sun/28 from noon-5pm. 2425 17th St, SF; 744 Alabama, SF; www.artexplosionstudios.com.

SHADY TRANSIT DEAL

A wonky tale of woe just got a happy ending. Developers looking to make big bucks from the construction of the new Transbay Terminal tower, now the SalesForce tower, were looking to skim money off San Francisco by reneging on their required taxes, possibly costing the city $1.4 billion dollars. After the developers hired slick ex-Mayor, lobbyist, and SF Chronicle columnist Willie Brown to smooth the deal, they almost got away with saving hundreds of millions of dollars that would go to Muni, pedestrian safety, and infrastructure. At the last minute, the city changed its tune, and now the SoMa area will get the funding it was promised. The people win, and the fat cats lose.

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Rising tenant buyouts in SF targeted by new legislation and map

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A new interactive map published today by the Anti Eviction Mapping Project shows the spike in tenancy buyouts over the last year in San Francisco, just in time to raise awareness for Sup. David Campos’ proposed legislation to document and regulate tenant buyouts, which has a hearing later this month.

The map only records buyouts reported to the San Francisco Tenants Union, up 126 percent from 2012 to 2013 and expected to be even higher when data for 2014 is collected, but the Tenants Union estimates the number to be only about one-third of the buyouts actually taking place.

Campos’s legislation, which will go before the Board of Supervisors Land Use Committee on Sept. 22, seeks to record any buyout taking place in San Francisco with the rent board, and to guarantee the information of tenants rights to the tenant being bought out. [UPDATE: Because of the likely fiscal impacts of the legislation, it has been moved to the Budget & Finance Committee for its first hearing, with no hearing date scheduled yet]. 

“Regulating and recording buyouts isn’t going to stop them, we don’t believe that’s something within our power or within our rights,” Erin McElroy, a member of the Anti Eviction Mapping Project, told us.

The legislation will, however, impose the same condo conversion prohibitions that are already in place for no-fault evictions. The buyouts were virtually nonexistent before 2006, when San Francisco passed legislation severely limiting the conversion to condos of units that had been cleared of tenants use no-fault evictions.

“Buyouts are really the main way that landlords are evicting tenants,” Ted Gullickson, executive director of the Tenants Union, told us. “They threaten them with an Ellis Act eviction, then come in sweet with a buyout. We need legislation that takes away the incentive for one of the biggest methods of displacement in the city.”

“There are just so many components to the housing crisis [in San Francisco] that we need to know all that we can,” McElroy said. “Most tenants don’t know their rights and they often aren’t being offered enough.”

But groups with opposing views don’t believe that keeping a public record of a private contract is legal.

“Buyouts are mutually beneficial for both landlords and tenants. A tenant can get the money they need so that they can put down a mortgage on their own home,” Charlie Goss from the San Francisco Apartment Association told us. “It’s also a private contract. At face value, there is nothing wrong with recording buyouts, it just may not be constitutional.”

Both sides of the aisle are heated, and Gullickson expects a long fight before the legislation makes any progress, but he thinks that if the tenants side can persuade the more moderate supervisors, it can go through.

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

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

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

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

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

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

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

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

Racing for solutions

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rebecca@sfbg.com

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

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

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

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

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

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

 

MIX OF CHALLENGES

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

CHANGING NEIGHBORHOOD

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

San Francisco Democratic Party decides on endorsements for November election

At a meeting lasting about four hours last night [Wed/13], the San Francisco Democratic County Central Committee, the steering committee of the city’s Democratic Party, decided on its endorsements for the Nov. 4 election.

A lengthy round of voting followed nearly two hours of public comment, in which San Franciscans chimed in on everything from school board nominations to Proposition L, a motorist-friendly proposal that amounts to a step backward for the city’s transit-first policy. (The formal oppositional campaign slogan is “No on Gridlock, No on L,” but opponents who spoke at the meeting shortened it to the edgier “’L No.”).

Prop. L went down handily. Prop. E, the sugary-beverage tax, easily won the DCCC’s endorsement, as did Prop. J, the proposal to increase the city’s minimum wage.

But Prop. G – a measure crafted to stem the tide of Ellis Act evictions, known as the anti-speculation tax – was a close contest.

Before the DCCC members got down to the business of voting, many local advocates voiced support for Prop. G.

Housing activists lined up across the room while Dean Preston, executive director of Tenants Together, called for meaningful action on the city’s housing affordability crisis.

But the proponents’ show of support was followed by the opposite plea from a second group, which included a contingent of Asian property owners, who crowded into the front of the room to tell DCCC members that they felt the proposed increase was unfair. “We don’t deserve this!” A speaker said, conveying anger and frustration. “Look at our faces, we work hard for our properties.”

In the end, the vote came down to four abstentions, 13 votes for “no endorsement,” and 15 votes in support, tipping the scales in favor of Prop. G by a tiny margin.

Among those who abstained on that vote were Rep. Nancy Pelosi, Rep. Jackie Speier, and Assemblymember Phil Ting, all of whom voted by proxies. Sup. Scott Wiener voted “no endorsement,” while Sup. Malia Cohen abstained.

Decisions in the races for Board of Education and the city’s Community College Board were time-consuming, since it took several elimination rounds before the final candidate lists were settled.

The school board candidates to emerge with DCCC endorsements were Shamann Walton, Emily Murase, and Trevor McNeil. Notably, that list didn’t include Hydra Mendoza, an incumbent who also serves as education advisor to Mayor Ed Lee.

Endorsements for Community College Board, meanwhile, went to Amy Bacharach for a two-year term, and Thea Selby, Anita Grier, and Rodrigo Santos for four-year terms.

Things got interesting in the contest for BART board of directors, between longtime Republican director James Fang and a well-funded Democrat, Nick Josefowitz, who is in his early 30s.

The vote was complicated since SEIU Local 1021, a labor union with a long history of backing progressive causes in San Francisco, is pulling for Fang, who supported workers during last year’s BART strike. Yet Josefowitz has the backing of other progressive organizations, including the Sierra Club. “I think that BART needs new blood,” Sierra Club representative Rebecca Evans said during public comment.

In the end, the DCCC voted “no endorsement,” with that selection getting 17 votes, five abstaining, and 10 voting in favor of Josefowitz. The votes followed a round of comments.

“The Democratic Party is a means to an end,” DCCC member Rafael Mandelman said. “And the end that we are using the Democratic Party to achieve is a more socially just and better world… There are few local entities [to advance that] than SEIU Local 1021. I think it is acceptable for us to take ‘no’ position in this race.”

Several piped up to say they thought Josefowitz deserved the endorsement of the Democratic Party simply because he’s a viable candidate and registered Democrat in a race against a Republican.

But DCCC member Arlo Hale Smith weighed in to critique of Fang’s performance as a director. “I used to hold this BART Board seat 24 years ago,” Smith said. “He’s missed a third of the meetings and he doesn’t return phone calls. He hasn’t returned my calls in a year. This is not the kind of person who should be reelected. Period.”

In races for the San Francisco Board of Supervisors and citywide offices, endorsements went to incumbents Carmen Chu for assessor-recorder, Jeff Adachi for public defender, Sups. Mark Farrell for District 2, Katy Tang for District 4, Jane Kim for District 6, Wiener for District 8, and Malia Cohen for District 10. No second- or third-place endorsements were made in the Board of Supervisors races despite multiple challengers.

Just before voting for endorsements began, DCCC member Alix Rosenthal admonished her colleagues for scant attendance during the candidate endorsement interviews, which were held the previous Saturday. “Only 12 out of 32 people showed up for interviews,” she noted. Half-jokingly, she added, “I know Outside Lands was happening.”

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

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

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

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

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

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

neighborhoods

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

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

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

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

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

rental map

Click the map for a higher-res version.

Chinese youth rally for a brighter future

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

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

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

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

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

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

 

Guardian Intelligence: August 6 – 12, 2014

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GOOD VIBES

Jerry Day, when deadheads spanning generations congregate around the Bay Area to celebrate the legacy of SF native Jerry Garcia, should maybe start going by Jerry Week: Friday, Aug. 1 saw sold-out crowds at Berkeley’s Greek Theater and San Rafael’s Terrapin Crossroads for performances led by Warren Haynes and Stu Allen, respectively, while the official 12th annual Jerry Day celebration on Aug. 3 brought the masses to the city for Melvin Seals & the JGB and tons more at McLaren Park. Missed ’em? Don’t worry: Aug. 12 is Jerry Garcia Tribute Night at AT&T Park.

AIRBNB’S GAFFE-STROTURF?

Last week, Airbnb sent out an email blast proclaiming: “Big News: Launching Fair to Share San Fransisco!” [sic]. Misspellings happen, and hey, we all make mistakes. But what is Fair to Share? It’s “working for fair rules for home sharing,” according to the blast, linking to an online petition “urging the Board of Supervisors and San Francisco leaders to enact rules that let people share the home in which they live.” More to the point, this “coalition” seems focused on weakening enforcement provisions in legislation moving forward to regulate short-term rentals. So there you have it, SF’s newest grassroots movement — backed by a company valued at $10 billion.

SENIORS VERSUS SHUTTLES

Octogenarians unite! On the first day of the tech shuttle pilot program, last Friday a group of 25 or so seniors and people with disabilities blocked two Mission tech shuttles from making their morning tech sojourn to Silicon Valley. “Stop the senior evictions!” they shouted, alleging that 70 percent of no-fault evictions since 2011 were within four blocks of the shuttle stops, and two thirds of those evictions were of seniors. The 30-something tech workers looked ignored their elders, smartphones in hand, safely ensconced in their corporate buses.

REMEMBERING THE I-HOTEL

Nearly four decades ago, thousands of San Franciscans blockaded sheriffs from evicting seniors from the International Hotel, the last vestige of the Filipino community known as Manilatown. Eventually the sheriffs were successful, but the shameful displacement helped spur many San Francisco rental protections we enjoy today. Last week, the International Hotel Manilatown Center honored the anniversary of this dark mark on the city’s history. “We fought as long as we could,” Peter Yamamoto told us, who was 23 when he fought the evictions so long ago. “That night was like electricity.”

ON A HIGH NOTE

The San Francisco Opera kicks off its 92nd season Sept. 4 with a new production of Vincenzo Bellini’s Norma, starring soprano Sondra Radvonovsky, pictured, as the Druid priestess who falls in love a Roman soldier (spoiler: it doesn’t end well). The fall season — which also includes the work that started it all for SF Opera back in 1923, Puccini’s La Bohème, in November — continues Sept. 6 with the opening of Carlisle Floyd’s Susannah, with another stellar soprano, Patricia Pacette, playing the falsely accused Appalachian heroine. Opening weekend also includes the ever-popular “Opera in the Park” Sept. 7 in Sharon Meadow, for those who prefer their arias free and open-air. www.sfopera.com. PHOTO BY MARTY SOHL

WEINER TAKES ALL

Did you hear the pitter-patter of little feet over the weekend? If it wasn’t your child (or your pesky biological clock playing tricks on you), it was most likely the Wienerschnitzel Wiener Dog Race Nationals — the Bay Area regionals portion of which drew hundreds to the Santa Clara County Fair. They scampered! They leapt! The totally got distracted and lost interest in that cute little wiener dog way! Who put the most “dash” in “dachshund”? Why, Wally the Wiener of Gilroy, who took home $250 and a trip to San Diego for the national races.

HEY, SUGAR DADDY

We’re normally weirded out by pop culture-food trend tie-ins, but when Tout Sweet Patisserie (Macy’s Union Square, 170 O’Farrell St., 3rd Fl, www.toutsweetsf.com) chef Yigit Pura announced the launch of the “Hedwig Schmidt” macaron — in honor of beloved Tony-sweeper Hedwig and the Angy Inch — we totally bit. Bourbon-orange marmalade ganache with a brandied cherry center, covered in edible red glitter? Danke, mister!

IRON MAN: APP DEVELOPER?

Because San Francisco doesn’t have enough tech CEO megalomaniacs, Marvel Comics had to fictionalize one: Tony Stark, aka Iron Man, is headed to the city by the bay. Okay, not actually (sorry fellow geeks, Iron Man is fictional), but in the comic book world, the Manhattan-based metallic hero will develop apps by day, and rocket about in his new all white, iPod-esque armor by night. But why not an everyman superhero, like say, Spiderman? Remember, Peter Parker is a photographer: He’d probably move to Oakland.

 

Tenants target Airbnb rentals before hearings on regulatory legislation

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As the San Francisco Planning Commission prepares for an Aug. 7 hearing on Sup. David Chiu’s widely watched legislation to legalize and regulate short-term apartment rentals through Airbnb and similar companies, the San Francisco Tenants Union tomorrow [Tues/29] launches a “citizen enforcement” campaign against these currently illegal rentals.

Seeking to highlight the fact that “hundreds of tenants have been evicted and thousands of rent-controlled apartments in San Francisco have been illegally converted to hotel rooms in violation of two San Francisco laws,” SFTU announced it will begin posting signs on illegally converted buildings to warn tourists that the rentals are displacing city residents.

The campaign starts tomorrow at noon at 1937 Mason Street, a three-unit building where SFTU says all tenants were evicted under the Ellis Act so the units could be rented out through Airbnb and other online rental services. It’s the latest step in SFTU’s campaign to highlight illegal conversions, filing more than 50 complaints with the city and threatening further legal action. [UPDATE: A senior Airbnb official told the Guardian that no Airbnb hosts have rented out units at this address. Gullicksen said the units were rented out through VRBO.com, an Airbnb competitor].

“San Francisco is facing a severe housing crisis with soaring rents and evictions,” said SFTU Director Ted Gullicksen said in a press release. “It’s intolerable that the City is tolerating thousands of illegal conversions and thus facilitating hundreds of evictions.”

Apartment rentals of less than 30 days have long been illegal under city laws, including Administrative Code 41A, in order to protect the city’s rental stock for permanent residents. SFTU worked with Chiu’s office in crafting legislation that would legalize short-term rentals in residential areas but set a number of conditions, including a requirement for hosts to register with the city and limit rentals to no more than 90 days per year.

Airbnb is headquartered in San Francisco, but it has long defied city law and refused to collect required transient occupancy taxes on its rentals even after the city definitely ruled they were owed. The company pledged to finally start collecting the taxes sometime this summer and it has sought to make over its scofflaw public image with new branding and outreach efforts.

But with the company facing similar criticisms of its business model in New York City, Berlin, and other cities with strong housing demand, San Francisco’s regulatory effort is expected to be a high-stakes and high-profile struggle that will ultimately be decided by the Board of Supervisors, probably sometime this fall.

Meanwhile, some enterprising young disrupters have decided use Airbnb and state laws protecting tenants to start squatting in the properties of some of their hosts, creating big legal headaches for the owners and payoffs for the squatters. And just because we at the Bay Guardian were the first newspaper to suggest this idea, we seek neither blame nor credit. 

Landlord plaintiff in eviction fee case has history of tenant law violations

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San Francisco landlord attorneys filed a lawsuit on Thursday against San Francisco and five tenants in an effort to overturn Sup. David Campos’ new law requiring higher relocation assistance payments to tenants evicted under the Ellis Act, but the main plaintiff in the case may not be the helpless victim the suit purports him to be.  

Under the recently implemented measure, landlords must now pay the difference between their tenants’ current rent and the cost of “comparable” units for two years, as determined by the City Controller’s Office. Though many property owners haven’t been deterred by the measure, as evidenced by the Ellis Act evictions that continue to sweep the city, a group of landlords and their attorneys filed a lawsuit (Jerrold Jacoby et al. v. City and County of San Francisco, et al.) claiming the new law is unjust.

“The city has tried to change the rules on them,” said attorney Andrew Zacks, who represents the plaintiffs. “We don’t think that is allowed under the law.”

Jacoby, the lawsuit’s main plaintiff, is an 80-year-old property owner who, according to tenant attorney Joseph Tobener, is a “slumlord” who has mistreated his tenants and failed to adequately maintain his valuable rental property.

“He is in the business of landlording. That is all he does,” Tobener, who represents three of the five tenants being sued in the lawsuit, told the Guardian. “The lawsuit against the City only used Jacoby as plaintiff because he is a senior…They think this guy Jacoby, a slumlord, is a perfect plaintiff, but they misrepresent this story in their complaint.”

One of Tobener’s clients, Judith Barrett, is a 62-year-old single mother who teaches English at Galileo High School in San Francisco. She has lived in her current unit for 25 years, and she lives paycheck-to-paycheck.

Barrett, who Jacoby recently evicted using the Ellis Act, has been involved in protracted legal proceedings with her landlord in the past. Tobener said Jacoby and unit co-owner Jeanmarie Hryshko (Jacoby’s ex-wife) have collected more than $22,500 in illegal rent since October 2009, according to a ruling by the San Francisco Rent Board. That’s just the tip of the iceberg, according to Tobener, who said there was “much more prior” but that it extends beyond the statute of limitations.

Using a clause in the San Francisco Rent Board’s regulations, Jacoby claimed “financial hardship” when sued by Barrett over the illegal rent collection. “He tried to file a hardship exemption for the $22,500 at the Rent Board and he lost,” said Tobener, who also noted that Jacoby and Hryshko still owe Barrett an additional $8,000 because they executed the eviction before the reduced rent could cover the landlord’s debt to his tenants.

Barrett’s eviction, according to Tobener, was prompted by a lawsuit filed by tenants that claimed the landlords wouldn’t make “even the most basic repairs to the subject unit.” The lawsuit, which is still pending, claims that Jacoby and Hryshko have saved hundreds of thousands of dollars over the years, though they have an equity of $1.8 million on the two-unit property.

“That’s flat out untrue. There is a chronology that completely undercuts Mr. Tobener’s statement,” Zacks said, noting that aggressive moves by the tenants—specifically ”legal threats” from Tobener—ultimately resulted in the Ellis evictions. “This is exactly why we have the Ellis Act and why it’s an important right for property owners. The notion that [Jacoby] should have to pay $100,000 to stop being a landlord is not only unfair, it’s illegal by state law.”

The “aggressive moves” in question are chronicled in Tobener’s letter to David Wasserman, an attorney involved in the case. Tobener believes Jacoby and Hryshko have no intention of living together, and that they instead hope to rid their debt by evicting their rent-controlled tenants.

“If we are successful in proving that your clients have ulterior motives or are retaliating against the tenants, we will then file a wrongful eviction action against your clients,” Tobener wrote. “By now, I am sure your clients have wrongful eviction insurance. Perhaps they take comfort in the protections this insurance will provide them should they lose their unlawful detainer bid. But, what your clients may not know is that their insurance policy will not cover our largest seam of gold — the treble-damages penalties under the San Francisco Rent Ordinance for wrongful eviction.”

In the event of an unfavorable ruling, Zacks said he and his client don’t plan to remain complacent. “If the local judge agrees with the city,” he said. “We will appeal.”

Indeed, could be just the beginning of epic court battles between landlord and tenants advocates in San Francisco, where the hot housing market has triggered an eviction epidemic. The November ballot includes a tax on real estate speculation, which landlord groups have already threatened a lawsuit to challenge.

“Ellising a two-unit building is a real estate speculation play,” Tobener told the Guardian. “They are going to remodel and sell as TICs [tenants-in-common] to wealthy new owners. They cannot re-let the units, so they have to remodel and sell.”

 

Anti-Eviction Mapping Project highlights Urban Green’s record of displacement

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The Anti-Eviction Mapping Project’s latest creation illustrates the eviction history of Urban Green Investments, a San Francisco-based real estate company that was recently put in the spotlight with its controversial attempted eviction of 98-year-old Mary Elizabeth Phillips.

The Mapping Project’s graphic shows the properties owned by Urban Green and its affiliates, assets that number 385 units in more than 15 buildings. According to the Mapping Project, they have displaced “numerous tenants in the San Francisco Bay Area,” led by the efforts of CEO David McCloskey.

“The Anti-Eviction Mapping Project created this map to expose how large and interconnected the Urban Green and McCloskey network is,” said Erin McElroy of the Anti-Eviction Mapping Project. “We have been shocked at how many tenants they have pushed out and in how many cities they are flipping properties.”

Urban Green’s website advertises the company as a “fully integrated real estate company with brokerage, property management and development capacities.” The company’s strategy is to acquire property, then add value by “increasing efficiencies, enhancing entitlements, and employing carefully calibrated green renovations.”

In recent years, Urban Green has been busy displacing tenants, including in October 2012, when it purchased a multi-family portfolio with 130 units in San Francisco. According to the Mapping Project, the company is involved in around 40 LLCs, “many of which they use to evict tenants and then flip buildings.”

“Companies like Urban Green wouldn’t be evicting tenants like Mary Phillips if we stopped the profiting of buying up then evicting whole buildings just to sell them quickly,” San Francisco Tenants Union Director Ted Gullicksen said in a statement. “We need to pass a surtax on transfers of apartment buildings within five years of last sale this November if we are to stop these displacement practices of speculators like Urban Green.”

Gullicksen referred to the anti-speculation tax that tenant activists and progressive members of the Board of Supervisors has place on the November ballot. Representatives of Urban Green have not returned Guardian calls for comment, but we’ll update this post if and when we hear back.  

Even residents outside the Bay Area have not escaped the reach of the McCloskey family, which has a long history of evictions. Urban Green is currently a subsidiary of the business run by David McCloskey’s Thomas McCloskey: Cornerstone Holdings. The family owns property in Colorado (where Cornerstone is based), New York, Hawaii, and California, according to the Mapping Project. Perhaps most controversially, the family owns 300 acres of land in Hawaii, called Kealia Kai, which greatly angered the Kaua`i people in the 1990s. After buying the land for $17 million, McCloskey unsuccessfully attempted to build a private beach community with his land.

More than 2,000 miles of sea separate Hawaii from Phillips’ apartment, but the residents of both areas are suffering similar fates at the hands of the McCloskeys. And though Urban Green stated last week that it would not continue its attempt to evict Phillips, attorney Steve Collier of the Tenderloin Housing Clinic issued a statement making it clear that the company’s efforts are not over. According to Collier, Urban Green’s new strategy is to force out Brant, which would remove Phillips by default because she relies on Brant’s care.

“This has been my home for over 40 years and I don’t want to leave. . . I am just too old,” said Phillips, according to the Mapping Project’s website. “I didn’t sit down and cry, I just refused to believe it. They’re going to have to take me out of here feet first. Just because of your age, don’t let people push you around.”

SF bankers now exporting tenant-displacing TIC loans

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Fractional mortgage loans used to convert apartments into owner-occupied tenancies-in-common have fed the eviction and displacement crisis in San Francisco, where the median home price just surpassed $1 million for the first time. Now, some of the same San Francisco banks that pioneered fractional loans here have started offered them in the East Bay and on the Peninsula.

TIC housing is an ownership model for multi-unit buildings, where each unit is independently owned. This option appeals to would-be homeowners because it’s cheaper than a condominium, but less fraught than a traditional loan shared by various owners in a TIC building, which does not allow for independent ownership of each unit.

TICs local have grown in popularity in San Francisco as housing prices continue to skyrocket, since they help homeowners find something affordable, although that benefit usually comes at the cost of evicting all the tenants in the building, often including seniors, those with disabilities, and low-income people in rent-controlled units.

Previously, fractional TIC loans were only accessible in SF. Now, as people seek affordable housing outside of expensive San Francisco, the demand for fractional TIC loans has grown. And San Francisco bankers have stepped up to meet that demand, according to a recent article in the San Francisco Business Times (“High-priced SF housing market exports fractional tenants-in-common loans,” June 28).

Sterling Bank & Trust has become well-known for providing fractional TIC loans (more than $480 million worth so far, according to the Business Times), and is the first company to offer the loans outside of San Francisco. “We’re helping the firefighter and school teacher, or what I like to call the ‘non-tech’ buyer, purchase a home,” Stephen Adams, senior vice president of Sterling Bank & Trust, told the Business Times.

Adams is also president of the San Francisco Small Business Commission, presiding over what critics say is a shift in that commission toward rubber-stamping initiatives from the Mayor’s Office rather than defending small business interests. When we contacted Adams to ask about the evictions and displacement caused by fractional loans, he told he had “no comment to make at this time.”

Tommi Avicolli Mecca, the director of counseling programs at the Housing Rights Committee of San Francisco, said that he doesn’t know how the TIC loans might affect those in the East Bay. But he does know they’re bad news for San Francisco, where there’s now a 10-year moratorium on new condo conversions but few controls on the creation of new TICs.

“They’re scary,” Avicolli Mecca told us. “It’s a disaster for San Francisco. Basically, if you’re buying a tenancy in common, you don’t need to condo convert. It used to be that you wanted a condo conversion so you could have a separate mortgage on what you own. With a fractional loan, you have your own mortgage from the start.”

He added that the loans make it easier for sellers to convert buildings into any size that they can market to home buyers. With the loans, combined with the state Ellis Act allowing owners to remove apartments from the rental market, evicting tenants becomes even more profitable.

The Bank of San Francisco confirmed that it also offers TIC loans in the East Bay. The bank will be making them more attractive with interest-only payments, fractional financing for buildings with more than 12 units, and loans up to $2 million.

Dylan Desai, a spokesman for the Bank of San Francisco, told us that the bankers “do not extend financing to buildings where there has been an eviction” and, to their knowledge, they never have. “We’re sensitive to tenant rights.”

Hopefully the other banks offering these loans will be just as sensitive as they branch out into communities in the region that have already been absorbing an influx of working class former San Franciscans.

Eviction imminent for San Francisco Community Recycler’s Center

This morning (Wed/16), outside the San Francisco Community Recycler’s Center in the parking lot of the Safeway at Church and Market streets, a group of protesters stood in a cluster, chanting: “Cans not condos!”

As the Guardian previously reported, Safeway is in the process of evicting the recycling center, which continued to operate up until yesterday. The San Francisco Sheriff’s Department, which carries out evictions on Wednesdays, had signaled to the center’s operators that they could be forced out anytime after July 16.

That led supporters and volunteers with the San Francisco Coalition on Homelessness to show up at 5:30am in a bid to beat the sheriff there. They stood on the sidewalk outside the recycling center’s locked gate, waving signs.

“We’ll be holding space as long as we can,” Lisa-Marie Altorre, of the Coalition on Homelessness, told the Guardian a little after 7am. Calls to the Sheriff’s Department were not returned, but Altorre said around 12:15 that supporters had received “official word” that the eviction would be going forward, “likely later in the day.”

[UPDATE: Sheriff’s Department deputies showed up at 7am the next morning to enforce the eviction, and the center is now closed.]

Sup. Scott Wiener told the Guardian in an earlier interview that his District 8 constituents had complained about the recycling center’s presence, saying the facility draws too many unruly patrons, who are often homeless. A new condominium development looms over the recycling center from one direction, while a mixed-use condo development with a Whole Foods on the ground floor lies just across the street.

But recycling center operators argue that the eviction will be harmful to patrons, who need the extra money to get by, and that it will erode the city’s environmental goals. There’s also an issue of impacts on surrounding small businesses, which could be required under state law to accept recycling in-store, a burdensome task for smaller retailers, or to pay fees.

“Eliminating community-based recycling has grave impacts on San Francisco, from public safety to huge environmental fails, including moving us away from goals of being Zero Waste in 2020,” said Ed Dunn of the San Francisco Community Recyclers Center. Dunn was previously affiliated with the Haight Ashbury Neighborhood Council Recycling Center, which was evicted from a parking lot in Golden Gate Park. “It is sad to think any elected leader would support a move like this,” Dunn said, “and a corporation like Safeway would get away with turning their back on their corporate civic responsibility to something as vital as recycling.”

Angry building owners threaten lawsuit over anti-speculation tax

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Opponents of the anti-speculator tax that will appear on the November ballot blasted the proposal in a City Hall hearing yesterday [Thu/10] — pledging to defeat the measure in court even if voters approve it — but they were overwhelmed by a strong turnout from supporters who said real estate speculation drives up the cost of housing without adding any value.

“We can sue you in court on the many of the unconstitutional aspects of this and we will do that,” Janan New, director of the San Francisco Apartment Association, said of the measure that would charge a 24 percent tax on properties flipped within a year of purchase down to a 14 percent tax if flipped within five years.

New and other allies — including San Francisco Association of Realtors, Small Property Owners of San Francisco, and Sup. Katy Tang — claimed that the measure is illegally retroactive because it affects those who recently bought property and that it doesn’t account for people who need to sell their properties because of job loss or other life changes.

“This is almost tantamount to a confiscation of property,” Peter Rich of SPOSF said at the hearing.

But Sup. David Campos — who placed the measure on the ballot along with Sups. Eric Mar, Jane Kim, and John Avalos — refuted allegations that the measure isn’t legally sound and carefully questioned City Attorney’s Office staff to clarify the laws that allow for the measure.

“I know there’s a lot of ulterior motives here because we do know this is going to be challenged in court, so I want to be very clear,” Campos said in response to a line of questioning from Tang, who continued to maintain, “So it’s retroactive in a sense” after being told by the deputy city attorney that it wasn’t retroactive because the tax only applies to future property sales.

The anti-speculation tax was first introduced by then-Sup. Harvey Milk shortly before his assassination in 1978 (Dianne Feinstein killed the measure after becoming acting mayor), and it was revived this year during a series of tenant conventions and sponsored by Mar.

“What we’re proposing is very reasonable to deal with the affordable housing crisis,” Mar said at the hearing, noting that it exempts single-family homes, projects larger than 29 units, and sales triggered by the death of the property owner. “It’s been crafted with enough exemptions to protect the small guy and really go after the profiteers.”

During the public comment period, where supporters on the measure vastly outnumbered opponents, several speakers referenced Harvey Milk and said housing in San Francisco wouldn’t be so expensive today if the measure had passed back then, a time when evictions and displacement were also on the rise.

“He was assassinated before it came to fruition. The parallels to that time and today are striking,” testified Tom Temprano, president of the Harvey Milk LGBT Democratic Club, who urged supervisors to “honor the legacy of Harvey Milk by passing this thoughtful and well-crafted legislation.”

Brian Basinger, head of the AIDS Housing Alliance, played old video footage of Milk talking about the measure back in 1978, shortly after he was evicted from his Castro Street camera store by a landlord seeking higher rents, noting that profiteering forces San Franciscans to spend too much on housing and have too little left over for other needs.

“So when you look at that, it’s going to affect the larger economy,” Milk said of real estate speculation.

Gen Fujioka, who works at Chinatown Community Development Center and spoke for San Franciscans Against Real Estate Speculation, cited recent evidence of properties snapped up by speculators and quickly flipped for profits of 50 percent of more.

“Basically, what we’re seeing today is an escalation in the sales prices of multi-unit buildings beyond what people can pay in rent,” Fujioka testified, noting how that essentially forces landlords to evict rent-controlled tenants to make the investments pencil out. “That kind of price escalation is causing instability in our communities.”

But opponents lashed out at the measure and the characterization that they were profiteering in ways that hurt people. “It’s a housing tax and it doesn’t make sense to have a housing tax in the most expensive city in the country,” said Jay Chang of the Association of Realtors.  

Aaron Jones said he and his wife invested their children’s college savings in a small apartment building, and that they’re good landlords who should be able to sell the property when they want to without penalty.

“We can’t sell until 2017 with this retroactive, punitive tax,” Jones said, saying there were many other small investors like him who were afraid to speak up because “in San Francisco, to be an investor — not a speculator — is to be the devil.”

But supporters of the measure say their intention isn’t to demonize property owners but to do something about the eviction and displacement crisis that is changing the face of the city, and to create a disincentive to bad behavior.

“It’s really the most vulnerable people who are being affected by evictions,” said Erin McElroy of the Anti-Eviction Mapping Project, citing her group’s research showing 72 percent of recent evictions have been of the elderly or disabled.

“Speculation is the commodification of housing and housing is essential,” said Chris Durazo of the Veterans Equity Center.

Campos said most landlords should support the measure as check against speculators that are pushing up the price of housing, triggering evictions, and creating a divisive politcal climate: “Speculators are giving landlords in San Francisco and property owners in San Francisco a bad name.”