Renters

A simple, fair tenant bill

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A simple, fair tenant bill

 

 

 

Legislation that would ban landlords from arbitrarily eliminating services or restricting access to common space in residential units is likely to get seven votes at the Board of Supervisors June 6th. It’s also likely to get a mayoral veto. So tenant advocates ought to be putting the pressure on Sup. Bevan Dufty, who is one of the mayor’s allies – but is also in a district where a majority of the voters are renters.

 

The bill, by Sup. Ross Mirkarimi, would end what some tenants say is a growing practice: Landlords suddenly take away parking spaces, access to laundry facilities, or the use of storage space, in the hope that it will drive out tenants who are protected by rent control. The current law forbids evictions without “just cause” – but that provision apparently doesn’t apply to anything other than the actual place where a tenant lives.

 

There are all sorts of opportunities for abuse here: A landlord could evict a tenant from his or her parking or storage space, then offer to rent it back at a high price. Or those sorts of amenities could be doled out to tenants who never complain about living conditions, and withheld from tenants who try to exercise their rights. Or – most likely – a landlord desperate to get rid of a tenants who is paying below-market rent could take away every possible amenity until that tenant gives up and moves away, allowing the landlord to raise the rent for the next tenant.

 

The fix is simple, and won’t cost landlords any extra money. Mirarimi’s bill is just basic fairness: If you offer a garage as part of the original rental deal, you can’t suddenly take it back without a valid reason. If you include on-site laundry facilities as part of the lease, you can’t arbitrarily lock the door to the laundry room and give only certain favored tenants a key.

 

Dufty is up for re-election this fall, and is almost certain to face some serious opposition from the left. With three of the mayor’s four allies – Sean Ellsernd, Michela Alioto-Pier and Finoa Ma – pretty much immovable, Dufty’s been in a position to make or break legislation by being the eighth vote to make a bill veto-proof. And since Newsom has vetoed every significant piece of tenant legislation to come before him, Dufty needs to feel the heat: Is he on the side of tenants – when it matters?

 

This one is a great test case: The legislation is so simple and fair, it’s hard to imagine how a reasonable landlord could oppose it. Let’s see if Dufty’s willing to stand with the tenants on one that ought to be a no-brainer. Give him a call, at 554-6968.

 

Newsom loses control

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› steve@sfbg.com

In the early days, the mayor tried to sound like a practical, hands-on executive who was ready to run San Francisco.

Mayor Gavin Newsom used his inaugural address on Jan. 8, 2004, to emphasize that he was a uniter, not a divider and that he wanted to get things done.

"I say it’s time to start working together to find common purpose and common ground," he proclaimed. "Because I want to make this administration about solutions."

It’s a mantra he’s returned to again and again in his rhetoric on a wide range of issues, claiming a "commonsense" approach while casting "ideology" as an evil to be overcome and as the main motive driving the left-leaning majority of the San Francisco Board of Supervisors.

"Because it’s easy to be against something," Newsom said on that sunny winter day. "It’s easy to blame. It’s easy to stop…. What’s hard is to hear that maybe to come together, we need to leave behind old ideas and long-held grudges. But that’s exactly what we need to do."

But if that’s the standard, Newsom has spent the past 17 months taking the easy way.

It’s been a marked change from his first-year lovefest, when he tried to legalize same-sex marriage, reach out to BayviewHunters Point residents, and force big hotels to end their lockout of workers.

A Guardian review of the most significant City Hall initiatives during 2005 and 2006 as well as interviews with more than a dozen policy experts and public interest advocates shows that Newsom has been an obstructionist who has proposed few "solutions" to the city’s problems, and followed through on even fewer.

The Board of Supervisors, in sharp contrast, has been taking the policy lead. The majority on the district-elected board in the past year has moved a generally progressive agenda designed to preserve rental units, prevent evictions, strengthen development standards, promote car-free spaces, increase affordable housing, maintain social services, and protect city workers.

Yet many of those efforts have been blocked or significantly weakened by Newsom and his closest allies on the board: Fiona Ma, Sean Elsbernd, Michela Alioto-Pier, and Bevan Dufty. And on efforts to get tough with big business or prevent Muni service cuts and fare hikes, Newsom was able to peel off enough moderate supervisors to stop the progressives led by Chris Daly, Tom Ammiano, and Ross Mirkarimi at the board level.

But one thing that Newsom has proved himself unable to do in the past year is prevent progressive leaders particularly Daly, against whom Newsom has a "long-held grudge" that has on a few recent occasions led to unsavory political tactics and alliances from setting the public agenda for the city.

Balance of power

The Mayor’s Office and the Board of Supervisors are the two poles of power at City Hall and generally the system gives a strong advantage to the mayor, who has far more resources at his disposal, a higher media profile, and the ability to act swiftly and decisively.

Yet over the past year, the three most progressive supervisors along with their liberal-to-moderate colleagues Gerardo Sandoval, Jake McGoldrick, Aaron Peskin, and Sophie Maxwell have initiated the most significant new city policies, dealing with housing, poverty, health care, alternative transportation, violence prevention, and campaign finance reform.

Most political observers and City Hall insiders mark the moment when the board majority took control of the city agenda as last summer, a point when Newsom’s honeymoon ended, progressives filled the leadership void on growth issues, problems like tenants evictions and the murder rate peaked, and Newsom was increasingly giving signs that he wasn’t focused on running the city.

"Gay marriage gave the mayor his edge and gave him cover for a long time," said Tommi Avicolli Mecca, a queer and tenants rights activist. "About a year ago that started to wear off, and his armor started to be shed."

Daly was the one supervisor who had been aggressively criticizing Newsom during that honeymoon period. To some, Daly seemed isolated and easy to dismiss at least until August 2005, when Daly negotiated a high-profile deal with the developers of the Rincon Hill towers that extracted more low-income housing and community-benefits money than the city had ever seen from a commercial project.

The Newsom administration watched the negotiations from the sidelines. The mayor signed off on the deal, but within a couple months turned into a critic and said he regretted supporting it. Even downtown stalwarts like the public policy think tank San Francisco Planning and Urban Research Association noted the shift in power.

"I think we saw a different cut on the issue than we’ve seen before," SPUR executive director Gabriel Metcalf told us. "Chris Daly is not a NIMBY. I see Chris Daly as one of the supervisors most able to deal with physical change, and he’s not afraid of urbanism…. And he’s been granted by the rest of the board a lot of leadership in the area of land use."

SPUR and Metcalf were critical of aspects of the Daly deal, such as where the money would go. But after the deal, Newsom and his minions, like press secretary Peter Ragone, had a harder time demonizing Daly and the board (although they never stopped trying).

Around that same time, hundreds of evictions were galvanizing the community of renters which makes up around two-thirds of city residents. Newsom tried to find some compromise on the issue, joining Peskin to convene a task force composed of tenants activists, developers, and real estate professionals, hoping that the group could find a way to prevent evictions while expanding home ownership opportunities.

"The mayor views the striking of balance between competing interests as an important approach to governing," Ragone told the Guardian after we explained the array of policy disputes this story would cover.

The task force predictably fell apart after six meetings. "The mayor was trying to find a comfortable way to get out of the issue," said Mecca, a member of the task force. But with some issues, there simply is no comfortable solution; someone’s going to be unhappy with the outcome. "When that failed," Mecca said, "there was nowhere for him to go anymore."

The San Francisco Tenants Union and its allies decided it was time to push legislation that would protect tenants, organizing an effective campaign that finally forced Newsom into a reactionary mode. The mayor wound up siding overtly with downtown interests for the first time in his mayoral tenure and in the process, he solidified the progressive board majority.

Housing quickly became the issue that defines differences between Newsom and the board.

Free-market policy

"The Newsom agenda has been one of gentrification," said San Francisco Tenants Union director Ted Gullicksen. The mayor and his board allies have actively opposed placing limitations on the high number of evictions (at least until the most recent condo conversion measure, which Dufty and Newsom supported, a victory tenants activists attribute to their organizing efforts), while at the same time encouraging development patterns that "bring in more high-end condominiums and saturate the market with that," Gullicksen explained.

He pointed out that those two approaches coalesce into a doubly damaging policy on the issue of converting apartments into condominiums, which usually displace low-income San Franciscans, turn an affordable rental unit into an expensive condominium, and fill the spot with a higher-income owner.

"So you really get a two-on-one transformation of the city," Gullicksen said.

Newsom’s allies don’t agree, noting that in a city where renters outnumber homeowners two to one, some loss of rental housing is acceptable. "Rather than achieve their stated goals of protecting tenants, the real result is a barrier to home ownership," Elsbernd told us, explaining his vote against all four recent tenant-protection measures.

On the development front, Gullicksen said Newsom has actively pushed policies to develop housing that’s unaffordable to most San Franciscans as he did with his failed Workforce Housing Initiative and some of his area plans while maintaining an overabundance of faith in free-market forces.

"He’s very much let the market have what the market wants, which is high-end luxury housing," Gullicksen said.

As a result, Mecca said, "I think we in the tenant movement have been effective at making TICs a class issue."

Affordable housing activists say there is a marked difference between Newsom and the board majority on housing.

"The Board of Supervisors is engaged in an active pursuit of land-use policy that attempts to preserve as much affordable housing, as much rental housing, as much neighborhood-serving businesses as possible," longtime housing activist Calvin Welch told us. "And the mayor is totally and completely lining up with downtown business interests."

Welch said Newsom has shown where he stands in the appointments he makes such as that of Republican planning commissioner Michael Antonini, and his nomination of Ted Dienstfrey to run Treasure Island, which the Rules Committee recently rejected and by the policies he supports.

Welch called Daly’s Rincon deal "precedent setting and significant." It was so significant that downtown noticed and started pushing back.

Backlash

Board power really coalesced last fall. In addition to the housing and tenant issues, Ammiano brought forward a plan that would force businesses to pay for health insurance plans for their employees. That galvanized downtown and forced Newsom to finally make good on his promise to offer his own plan to deal with the uninsured but the mayor offered only broad policy goals, and the plan itself is still being developed.

It was in this climate that many of Newsom’s big-business supporters, including Don Fisher the Republican founder of the Gap who regularly bankrolls conservative political causes in San Francisco demanded and received a meeting with Newsom. The December sit-down was attended by a who’s who of downtown developers and power brokers.

"That was a result of them losing their ass on Rincon Hill," Welch said of the meeting.

The upshot according to public records and Guardian interviews with attendees was that Newsom agreed to oppose an ordinance designed to limit how much parking could be built along with the 10,000 housing units slated for downtown. The mayor instead would support a developer-written alternative carried by Alioto-Pier.

The measure downtown opposed was originally sponsored by Daly before being taken over by Peskin. It had the strong support of Newsom’s own planning director, Dean Macris, and was approved by the Planning Commission on a 61 vote (only Newsom’s Republican appointee, Antonini, was opposed).

The process that led to the board’s 74 approval of the measure was politically crass and embarrassing for the Mayor’s Office (see “Joining the Battle,” 2/8/06), but he kept his promise and vetoed the measure. The votes of his four allies were enough to sustain the veto.

Newsom tried to save face in the ugly saga by pledging to support a nearly identical version of the measure, but with just a couple more giveaways to developers: allowing them to build more parking garages and permitting more driveways with their projects.

Political observers say the incident weakened Newsom instead of strengthening him.

"They can’t orchestrate a move. They are only acting by vetoes, and you can’t run the city by vetoes," Welch said. "He never puts anything on the line, and that’s why the board has become so emboldened."

Rippling out

The Newsom administration doesn’t seem to grasp how housing issues or symbolic issues like creating car-free spaces or being wary of land schemes like the BayviewHunters Point redevelopment plan shape perceptions of other issues. As Welch said, "All politics in San Francisco center around land use."

N’Tanya Lee, executive director of Coleman Advocates for Children and Youth, said the Newsom administration has done a very good job of maintaining budgetary support for programs dealing with children, youth, and their families. But advocates have relied on the leadership of progressive supervisors like Daly to push affordable housing initiatives like the $20 million budget supplemental the board initiated and approved in April.

"Our primary concern is that low- and moderate-income families are being pushed out of San Francisco," Lee told us. "We’re redefining what it means to be pro-kid and pro-family in San Francisco."

Indeed, that’s a very different approach from the so-called pro-family agenda being pushed by SFSOS and some of Newsom’s other conservative allies, who argue that keeping taxes low while keeping the streets and parks safe and clean is what families really want. But Lee worries more about ensuring that families have reasonably priced shelter.

So she and other affordable housing advocates will be watching closely this summer as the board and Newsom deal with Daly’s proposal to substantially increase the percentage of affordable housing developers must build under the city’s inclusionary-housing policy. Newsom’s downtown allies are expected to strongly oppose the plan.

Even on Newsom’s signature issue, the board has made inroads.

"In general, on the homeless issue, the supervisor who has shown the most strong and consistent leadership has been Chris Daly," said Coalition on Homelessness director Juan Prada.

Prada credits the mayor with focusing attention on the homeless issue, although he is critical of the ongoing harassment of the homeless by the Police Department and the so-called Homeward Bound program that gives homeless people one-way bus tickets out of town.

"This administration has a genuine interest in homeless issues, which the previous one didn’t have, but they’re banking too much on the Care Not Cash approach," Prada said.

Other Newsom initiatives to satisfy his downtown base of support have also fallen flat.

Robert Haaland of the city employee labor union SEIU Local 790 said Newsom has tried to reform the civil service system and privatize some city services, but has been stopped by labor and the board.

"They were trying to push a privatization agenda, and we pushed back," Haaland said, noting that Supervisor Ma’s alliance with Newsom on that issue was the reason SEIU 790 endorsed Janet Reilly over Ma in the District 12 Assembly race.

The turning point on the issue came last year, when the Newsom administration sought to privatize the security guards at the Asian Art Museum as a cost-saving measure. The effort was soundly defeated in the board’s Budget Committee.

"That was a key vote, and they lost, so I don’t think they’ll be coming back with that again," Haaland said, noting that labor has managed to win over Dufty, giving the board a veto-proof majority on privatization issues.

Who’s in charge?

Even many Newsom allies will privately grumble that Newsom isn’t engaged enough with the day-to-day politics of the city. Again and again, Newsom has seemed content to watch from the sidelines, as he did with Supervisor Mirkarimi’s proposal to create a public financing program for mayoral candidates.

"The board was out front on that, while the mayor stayed out of it until the very end," said Steven Hill, of the Center for Voting and Democracy, who was involved with the measure. And when the administration finally did weigh in, after the board had approved the plan on a veto-proof 92 vote, Newsom said the measure didn’t go far enough. He called for public financing for all citywide offices but never followed up with an actual proposal.

The same has been true on police reform and violence prevention measures. Newsom promised to create a task force to look into police misconduct, to hold a blue-ribbon summit on violence prevention, and to implement a community policing system with grassroots input and none of that has come to pass.

Then, when Daly took the lead in creating a community-based task force to develop violence prevention programs with an allocation of $10 million a year for three years Measure A on the June ballot Newsom and his board allies opposed the effort, arguing the money would be better spent on more cops (see “Ballot-Box Alliance,” page 19).

"He’s had bad counsel on this issue of violence all the way through," said Sharen Hewitt, who runs the Community Leadership Academy Emergency Response project. "He has not done damn near enough from his position, and neither has the board."

Hewitt worries that current city policies, particularly on housing, are leading to class polarization that could make the problems of violence worse. And while Newsom’s political allies tend to widen the class divide, she can’t bring herself to condemn the mayor: "I think he’s a nice guy and a lot smarter than people have given him credit for."

Tom Radulovich, who sits on the BART board and serves as executive director of Transportation for a Livable City (which is in the process of changing its name to Livable City), said Newsom generally hasn’t put much action behind his rhetorical support for the environment and transit-first policies.

"Everyone says they’re pro-environment," he said.

In particular, Radulovich was frustrated by Newsom’s vetoes of the downtown parking and Healthy Saturdays measures and two renter-protection measures. The four measures indicated very different agendas pursued by Newsom and the board majority.

In general, Radulovich often finds his smart-growth priorities opposed by Newsom’s allies. "The moneyed interests usually line up against livable city, good planning policies," he said. On the board, Radulovich said it’s no surprise that the three supervisors from the wealthiest parts of town Ma, Elsbernd, and Alioto-Pier generally vote against initiatives he supports.

"Dufty is the oddity because he represents a pretty progressive, urbane district," Radulovich said, "but he tends to vote like he’s from a more conservative district."

What’s next?

The recent lawsuit by the San Francisco Chamber of Commerce and the Committee of Jobs urging more aggressive use of a voter-approved requirement that board legislation undergo a detailed economic analysis shows that downtown is spoiling for a fight (see “Downtown’s ‘Hail Mary’ Lawsuit,” page 9). So politics in City Hall is likely to heat up.

"There is a real absence of vision and leadership in the city right now, particularly on the question of who will be able to afford to live in San Francisco 20 years from now," Mirkarimi said. "There is a disparity between Newsom hitting the right notes in what the press and public want to hear and between the policy considerations that will put those positions into effect."

But Newsom’s allies say they plan to stand firm against the ongoing effort by progressives to set the agenda.

"I think I am voting my constituency," Elsbernd said. "I’m voting District Seven and voicing a perspective of a large part of the city that the progressive majority doesn’t represent."

Newsom flack Ragone doesn’t accept most of the narratives that are laid out by activists, from last year’s flip in the balance of power to the influence of downtown and Newsom’s wealthy benefactors on his decision to veto four measures this year.

"Governing a city like San Francisco is complex. There are many areas of nuance in governing this city," Ragone said. "Everyone knows Gavin Newsom defies traditional labels. That’s not part of a broad political strategy, but just how he governs."

Yet the majority of the board seems unafraid to declare where they stand on the most divisive issues facing the city.

"The board has really, since the 2000 election has been pushing a progressive set of policies as it related to housing, just-taxation policies, and an array of social service provisions," Peskin said. "All come with some level of controversy, because none are free." SFBG

Eviction battle continues

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› sarah@sfbg.com

Back when the tsunami of condo conversions now rolling across San Francisco was but a ripple on the rental pool, local resident William Johnston didn’t know "the ins and outs of the Ellis Act."

"Now I have a Ph.D. in it," jokes Johnston, 70, about the legislation allowing landlords to get out of the rental market, which has been increasingly abused over the past decade by landlords wishing to sell their buildings in a scheme known as tenancy-in-common.

Under the TIC system, tenants share the same mortgage but live in their own unit, which they usually hope to convert to an individually owned condo. And it was a letter proposing a TIC in the 10-unit rent-controlled building where Johnston has lived for 33 years that finally got the feisty septuagenarian to start learning about the Ellis Act in detail.

"That letter scared the crap out of me," says Johnston, who was shocked when a real estate agent claimed that the one-bedroom unit, for which Johnston pays $512 a month, would fetch half a million dollars if it were converted into a condo … if only Johnston could pony up $90,000 for a down payment.

Johnston was relieved when none of his fellow tenants took his landlord’s TIC bait, but they’re all worried the landlord plans to put the building up for sale anyway. So he’s closely following the latest chapter in the Board of Supervisors’ effort to protect renters like him.

On May 9 the board gave an initial 73 approval to a measure that would prevent condo conversions in buildings where seniors, the disabled, the catastrophically ill, or multiple tenants have been evicted.

Three previous board efforts to help tenants have been vetoed by Mayor Gavin Newsom, so Sup. Aaron Peskin heeded input from the Mayor’s Office and amended the measure to move the cutoff date for considering evictions from Jan. 1, 1999, to May 1, 2005.

That change, and the fact that he’d been getting public pressure from renters, apparently won the support of Sup. Bevan Dufty, who had voted to uphold Newsom’s vetoes of the previous renter measures. But with Sup. Ross Mirkarimi forced to abstain because he owns a TIC, the board is still left one vote shy of being able to override a veto.

The date change could affect renters like Debra Hutzer, who is disabled by thyroid problems and whose eviction papers were filed January 2005, forcing her to move on May 13, 2006, from the rent-controlled apartment on Church Street where she’s lived for 19 years to a place where she’s already paying $250 more a month.

"It’s been very disconcerting," says Hutzer of the eviction, which one of her neighbors, Carole Fanning, may now fight. Fanning is also supposed to leave, but she’s now hired an attorney to fight for "a stay of execution" that would allow her to remain in her rent-controlled unit.

"It’s possible, since seniors, disabled, and the catastrophically ill have one year from the date their eviction notice was served, that some may yet be able to convince landlords not to proceed," Peskin board aide David Owen told us.

As for the watering down of Peskin’s original measure, Ted Gullicksen of the San Francisco Tenants Union says the alternative was to put a version backdated to November 2004 on the November ballot a strategy that would have involved taking risks on an initiative that, even if it had passed, wouldn’t have gone into law until January 2007.

"Instead we have a measure that’s acceptable and has passed its first reading, which means tenants should be protected in another week," Gullicksen says. Peskin’s other amendment allows buildings with multiple evictions but not those involving the elderly or disabled to be eligible for condo conversions after 10 years. "This means those buildings get taken off the speculative real estate market," Gullicksen adds. SFBG

The veto question

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› steve@sfbg.com

There are bigger issues facing San Francisco than whether to close off part of Golden Gate Park to cars on Saturdays. But as political dilemmas go, Mayor Gavin Newsom’s impending choice of whether to sign or veto the Healthy Saturdays initiative presents him with a difficult call on a matter of great symbolic importance.

Newsom hasn’t taken a position yet, and City Hall sources say he’s actively trying to find a compromise position something that will most likely involve strict and quantifiable monitoring standards during the six-month study period, or perhaps a request that the closure be moved to the west side of the park, which supporters of the measure have resisted.

If possible, Newsom would like to avoid vetoing a measure beloved by environmentalists, bicyclists, and recreational park users. Newsom’s only other four vetoes have also shot down legislation prized by progressives: three rejected measures aimed at helping renters and preserving apartments, and one killed an ordinance limiting how much parking can be built along with downtown housing units.

But the clock is running on a JFK Drive closure slated to begin May 25, and Newsom is unlikely to please everyone, given the polarization and strong visceral reactions to the issue. The debate has so far played out as a class conflict, albeit one that has both sides flinging the epithet of "elitism" at each other.

The opposition campaign waged by representatives of the park’s cultural institutions (including many prominent and wealthy political donors) and some park neighbors say closure supporters are trying to shut others out from the park, hurt the museums, and deny the will of voters. Supporters say this about making a portion of the city’s premier park safe and inviting on weekends, rather than allowing it to be used as a busy thoroughfare and parking lot.

The rhetoric on both sides has often been heated, but supporters have for the most part stuck to the facts, while the opposition campaign has been marred by misrepresentations (see "Dede Wilsey’s Whoppers," 4/19/06).

Some of the inaccurate statements most notably that voters have repeatedly rejected closure have taken on the air of truth as they were repeated by mayoral staffers, Sups. Fiona Ma and Bevan Dufty, and in two overheated columns by the San Francisco Examiner‘s Ken Garcia that were riddled with inaccuracies and unsupported statements. (Garcia did not answer an e-mail from the Guardian seeking comment on his distortions.)

During the Board of Supervisors’ April 25 hearing on the matter, the main question was whether a measure that already had six cosponsors would garner the eight votes that would be needed to override a mayoral veto.

"On two different occasions, voters rejected Saturday closure," was how Supervisor Ma explained her opposition, reading from a prepared statement. Supervisor Dufty, who voted no, also said he was swayed by the election argument: "This has come before the voters, and that’s what I’d like to see happen [again]."

Actually, the question was put before voters just once, in November 2000. Just over 45 percent of voters wanted immediate Saturday closure (Measure F), while about 37 percent of voters approved of a rival measure sponsored by museum patrons (Measure G) that would have postponed closure until after the garage was completed.

Several supervisors assailed the election argument that Garcia had circulated so vociferously, including one Healthy Saturdays opponent, Sup. Sean Elsbernd, who said neither the voter argument nor the argument that the de Young Museum would be hurt were valid.

Instead, Elsbernd said he was swayed by the concerns of park neighbors that the existing Sunday closure creates traffic problems in their neighborhoods. So he proposes that the Saturday closure happen on the west side of the park, rather than the east.

"Why can’t we spread out these impacts?" Elsbernd said. "It’s a simple compromise that will alleviate a lot of concerns."

Supporters of the closure have resisted that proposal, arguing that the eastern portion has most of the commercial vendors, the flattest and best-quality roads for kids just learning to ride bikes, the warmest weather, and is best served by the new 800-spot parking garage, which hasn’t ever been full since it opened earlier this year.

And at this point, starting over with an alternative proposal would greatly delay the closure and ensure that the trial period doesn’t generate a full summer’s worth of data.

"The time is right. We have the garage open, and it’s accessible," said Sup. Jake McGoldrick, who sponsored Healthy Saturdays after opposing it two years ago on the grounds that the garage wasn’t yet open. He and other supporters later told us that they’re open to considering any monitoring standards that Newsom may propose.

In the end, the measure was approved on a 74 vote, with Sup. Michela Alioto-Pier (who didn’t speak about her reasons) joining Ma, Dufty, and Elsbernd in opposition.

"The table is set for the possibility that the mayor will veto this legislation," Sup. Gerardo Sandoval said at the hearing.

Afterward, Newsom spokesperson Peter Ragone said the mayor would make a decision on whether to veto in the next week or so. In the meantime, Ragone told reporters: "The mayor is going to continue to work with both sides on the issue to maintain a dialogue with the hope that we can reach a place where the right thing can be done."  SFBG

20 questions for Fiona Ma

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Sup. Fiona Ma, who is running for state Assembly, last week decided to skip an endorsement interview that she scheduled with the Guardian – making herself unavailable to answer questions important to Guardian readers – so we’ve decided to put some of our questions out the publicly.

We encourage voters to press her for answers before the June primary, and if you have any luck, please let us know by e-mailing City Editor Steven T. Jones at steve@sfbg.com.

1.   What kind of health care system do you support for California? Ma’s opponent, Janet Reilly, has made single-payer health care her top campaign priority and issued a detailed plan for what that would entail. Health care is one of just five issues that Ma discusses on her website (the others being Housing, Education, Budget/Jobs, and Transportation), vaguely indicating she support universal coverage and stating, “I support state measures to provide incentives for business owners to cover their workers and other such efforts, but we need the political will on the national level to be successful.”  The first part sounds as if she’s advocating tax breaks to businesses that offer private insurance health plans to their employees. The caveat at the end sounds like she doesn’t intend to do much of anything until the feds do. But then, during the only debate that she’d agreed to have with Reilly, Ma said that she support a single-payer health care system, without offering any other details. This is arguably the most important issue the Legislature will face in the next few years and we have a right to know whose side Ma would be on.

2.   What will you do to protect renters and rental units in San Francisco? Again, it was the sole debate and its aftermath that yielded much confusion about where Ma stands regarding renters. She has made no secret of her strong support for increasing homeownership opportunities and her record is one of opposing local efforts to slow the number of Ellis Act evictions. But at the debate, she went further by declaring, “The Ellis Act is sometimes the only way for some people to become homeowners and I support it.” After being criticized for the statement, she defended herself in a piece on BeyondChron.org that only seemed to dig a deeper hole, arguing that she supports “ownership units [that] are affordable to San Franciscans of all income levels.” And how exactly is that going to happen?

3. What’s up with the $20 million?    In that same Beyondchron.org column, to defend her bad record on renters, Ma cited an effort that she made earlier this month to amend the city’s $20 million housing subsidy program to prioritize those who have been evicted under the Ellis Act. City officials said it would have had little practical effect and the gesture seemed to contradict you statements of support for Ellis Act evictions. Why should we see this as anything but a crass political deception?

4.      Why have you been unwilling to provide details about your policy positions even on the five issues you raised on your website – so voters would know how you intend to vote?

5.      How do you intend to increase revenues coming into the state, which you will need for even the broad goals you cited in education, transportation, and business “incentives”? We’re particularly interested in this answer after watching Ma chair the city’s Revenue Advisory Panel two years ago. That body was charged by the mayor’s office with recommending new revenue sources, and ended up recommending none.

6. Are you just a pawn of downtown business?At luncheon speeches that she gave to SFSOS and the San Francisco Chamber of Commerce over the last couple years, Ma you blasted and belittled her colleagues on the board while fawning over the business community. What is she willing to do to show her independence from downtown?

7.      Why do most of your colleagues on the Board of Supervisors support Janet Reilly —  and why shouldn’t voters see that as an indictment of your tenure as a supervisor?

8.      Is there anything new that you would require of the business community, such as improved labor or environmental standards, greater corporate accountability and transparency, regulation of greenhouse gas emissions, health care benefits for employees or their same sex partners?

9.      Your record is one of consistent opposition to requiring developers to pay more or offer more public benefits, such as open space or affordable housing. Why shouldn’t rich developers making obscene profits pay a little more? Has your position been influenced by the financial support of people like Oz Erickson, Joe Cassidy, Warren Hellman, Don Fisher, and Bob McCarthy?

10.     Why did you oppose legislation that would have limited the number of parking spaces that could be built in conjunction with the nearly 10,000 housing units slated for the downtown core, legislation that Planning Director Dean Macris called critical to good planning? Did your support from the downtown developers who opposed it have anything to do with your position?

11.     You supported a deal that extended Comcast’s cable contract without requiring any new public programming requirements, even though other comparable cities have better plans. Do you think that’s why Comcast is supporting your campaign?

12.     You’ve been a big advocate of tax breaks for corporations, including the biotech and film industries in San Francisco. How would you make up for these lost revenues and are you concerned that having cities compete with tax breaks creates a race to the bottom that starve public coffers? And on the biotech tax credit, given that such companies often lose money for years before reaping high windfall profits, how would be insure those companies eventually pay taxes to the city rather than just moving somewhere where they won’t be taxed?

13.     You were a longtime supporter of Julie Lee, continuing to support her even after it was revealed that she illegally laundered public funds into political campaigns. Why, and do you continue to support her?

14.     In a recent letter to supporters, you warned that Janet Reilly was trying to buy the campaign so people needed to give more. At the time, she had raised about $600,000 to your $700,000. How do you justify what appears to be a deceptive statement to your own supporters?

15.     We understand you support the death penalty, but many studies have shown that those on death row have been represented by inexperienced and ineffective lawyers, that they are disproportionately poor and minorities, and that based on detailed studies conducted in other states, it is likely that at least a few are not guilty of their crimes. Given all of that, are there any reforms that you’d like to see in how executions are carried out?
16.     In the debate, you said that the state is not required to balance its budget and that the federal government may simply print money to cover its budget deficits. Would you like to clarify or amend either statement?

 17.     What is your position on drug prohibition? Are there any current illegal drugs that you would decriminalize or are there any other changes you would make to the war on drugs?

18.    
The statement you issued on your website dealing with “Transportation” – one of just five issues you addressed – is only 48 words long. Is there anything that you’d like to add? And are there any other issues facing the state that you think are important?

19.    
  The Reilly campaign has warned of a possibly illegal effort to attack her by a group called “Leaders for an Effective Government,” using money laundered by Comcast and your old boss, John Burton. Are you aware of this effort and have you taken any steps to stop or repudiate it?

20. Why do you think it’s okay to avoid tough questions from the press?

Family business

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Frank Edward Lembi has spent nearly six decades turning San Francisco’s hot housing market into his version of the American dream, in the process creating nightmares for many struggling renters.

The aging patriarch still resides at the top of the Lembi family’s colossal accumulation of capital, Skyline Realty, also known widely as CitiApartments, the second-largest owner of rental units in San Francisco, as the company describes itself.

Skyline owns somewhere between 130 and 150 apartment buildings, hotels, and commercial properties throughout the city. Over the past few years, the company has spent tens of millions of dollars buying new properties everywhere from the Tenderloin to Russian Hill, quietly making the already controversial Skyline an even more ubiquitous force in San Francisco’s housing market.

As the Guardian has reported over the past few weeks, some Skyline tenants claim the company has developed an aggressive business strategy intended to empty newly purchased buildings of unprofitable tenants with rent control by either offering onetime buyout deals or simply frightening and coercing them until they leave.

Records from the San Francisco Department of Building Inspection also show violations of the city’s building and housing codes leading to complaints from tenants of roach and bedbug infestations and inoperable heating systems and elevators at some of the company’s properties. Such allegations have resulted in two lawsuits filed by the city and several more by tenants. Skyline also filed more eviction attempts in San Francisco Superior Court last year than any other single year during the past decade, according to a review of court records. Those cases have climbed fastest over the past four years and don’t reflect the true volume of notices to vacate that appear on tenants’ doors and are resolved before the matter appears in court.

From additional interviews and a review of publicly available records, corporate filings, and old press accounts emerges the portrait of a man, Frank Lembi, who has survived some of the darkest periods of the past few decades of American capitalism and retained his position as one of the city’s most powerful real estate moguls.

A San Francisco native, Lembi returned from serving in World War II and founded Skyline in 1947. Today he still lists the same Burlingame home address he had at least a decade ago when his longtime wife, Olga, passed away. The stark white and pea-green split-level is modest considering the wealth he’s accrued since Skyline began its ascension.

He and Olga had five children, two of whom would join Frank’s list of chief business allies. Yvonne Lembi-Detert is the president and CEO of a Skyline-affiliated company that owns a handful of posh boutique hotels. His son Walter joined the real estate business in 1969.

"I learned nepotism from my father," Frank told California Business in 1987. "He came to this country from Italy and started his children off pretty much the way I’ve started mine. It’s a way of life for us."

Frank and Walter eventually founded Continental Savings of America in 1977, a savings and loan association that propelled the family beyond the simple purchase and resale of small apartment buildings. At its peak, Continental maintained a staff of nearly 200 and more than half a billion dollars in assets. The company was making individual real estate loans of up to a million dollars by 1983.

During the ’80s and early ’90s, federal deregulation of the S&Ls encouraged a push for much more profitable, yet risky, high-interest loans and resulted in a race to the bottom. It was the era of financial scandal, and paying back federally insured depositors who had invested in failed S&Ls eventually cost taxpayers billions.

Continental began posting major losses in the ’90s as the company’s capital sank, and in 1995 the Office of Thrift Supervision (OTS) took it over, fearing insolvency. Not long beforehand, just before Continental went public, Frank stepped down as chair, owing to a conflict of interest tied to Skyline’s HomeOwners Finance Center. But Frank and Walter both remained major shareholders in the company.

It was a bad time for lenders, nonetheless, and Frank was apparently not happy. The feds had to file a restraining order against him after he allegedly threatened to plant security guards at Continental’s 250 Montgomery St. doors to "physically prevent" the confiscation of its office furniture, according to court records.

In the end, according to an OTS official we contacted, the cost to taxpayers amounted to about $22 million. But it clearly didn’t send the Lembis to the poorhouse: Since the Continental Savings collapse, Skyline Realty, along with CitiApartments, has grown to become a very lucrative focal point of the family’s enterprises.

Skyline Properties alone generated approximately $36 million in sales during the 2004 fiscal year, according to the Directory of Corporate Affiliations. But the company has founded more than 100 corporations and limited liability companies, each owning individual Skyline properties, and making it difficult to ascertain Skyline’s real annual revenue.

Its business model is not uncommon, but the complex web of affiliates has enabled the company to keep some legal liabilities aimed away from Skyline and Lembi and make sizable political contributions to various candidates and causes — nearly $40,000 since 1999 — all of it in small amounts stemming from several different entities. In one case, Skyline’s affiliates donated $20,000 on a single day to help defeat a 2002 ballot initiative designed to increase utility rates and improve the Hetch Hetchy water system.

The company has declined to answer further questions for this series, but Skyline manager David Raynal stated in response to a list of e-mail questions in early March that the company’s "plan is to restore apartment buildings to the highest standard." He wrote that Skyline supports the creation of special assessment districts that benefit those neighborhoods. "Every year we renovate many apartments, upgrade common areas, and improve neighborhoods."

Since we began publishing stories on Skyline, former employees have contacted us with tales about how the company conducts business. A onetime Skyline employee who requested anonymity said she was well aware of the company’s buyout offers to rent-controlled tenants and added that the company was "pretty heavy-handed." She also said she was encouraged to enter tenants’ units without prior notice.

"We were told we were making the community better, but we knew that was a bunch of bullshit," she said.

She added that Skyline had trouble retaining employees. High turnover rates are hardly uncommon in the real estate industry, but another former employee who also asked that his name not be revealed said Skyline’s group of hotels had similar issues.

"[Frank Lembi] is not the friendliest man in the world," he said. "Salespeople would get frustrated and move on."

Dean Preston, an attorney for the Tenderloin Housing Clinic, said he’s assisted at least 100 Skyline tenants with legal advice over the last five years.

"I deal with tenants, as well as landlords, all across the city," Preston said. "In my opinion, CitiApartments is the most abusive landlord that I deal with in my practice." *

Enforcing a hidden anti-eviction law

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As the Board of Supervisors was in the process of approving a measure to require a public hearing before converting rental units into condominiums – a measure Mayor Gavin Newsom has shamefully pledged to veto – Sup. Chris Daly told his progressive colleagues they shouldn’t be cowed by accusations that they are against home-ownership opportunities.

He’s exactly right. The city’s building new condos at a rapid clip, with more than 9,000 for-sale units in the pipeline right now, while rental units are disappearing. It’s more fair to accuse Newsom and his allies of being hostile to renters than to somehow say progressives oppose home ownership.

In fact, as Daly pointed out Jan. 10, the city isn’t even using existing tools to help tenants.

Six months ago, the San Francisco Tenants Union and Sup. Aaron Peskin unearthed a 25-year-old city law that could prevent many future condo conversions. Section 1386 of the city’s subdivision code, approved in 1981, requires city planners to reject condo conversions in which evictions or steep rent hikes have been used to clear the building for sale.

The law is a bit outdated – it requires landlords to provide only a five-year history of building occupancy. The supervisors should amend it to allow city officials to consider how a building was cleared out of tenants, whenever that occurred, and if Newsom wants to be seen as anything more than a fan of evictions and a shill for speculators, he should direct planning officials to start aggressively enforcing the law’s provisions.

That’s just one step the supervisors can take to deal with a mayor who seems unwilling to take even modest steps to slow the flood of evictions and the loss of rental housing. Newsom insists smaller condo conversions – ones involving fewer than five units – shouldn’t even be subject to Planning Commission hearings because that august body needs to save its time and energy for larger land-use issues.

So tenant activists and Peskin are pursuing with the City Attorney’s Office the possibility of requiring public notice for all condo conversions, of any size, which would give tenant activists the ability to appeal those permits to the full Board of Supervisors. It’s a good idea: If the poor, overworked planners are too busy to protect rental housing, and the supervisors want to take on the job, it will be hard for Newsom to say no.