Kyle Da Silva

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.

Lee and UC Berkeley institute take on income inequality

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Rep. Barbara Lee (D-Oakland) and U.C. Berkeley’s Haas Institute for a Fair and Inclusive Society are teaming up today [Wed/10] in Washington DC to release and discuss the institute’s first policy prescriptions for reducing inequality.

The policy brief—the first to be issued by the Haas Institute—will introduce research-based approaches suggested by a diverse array of economists looking at inequality through different lenses.

The policy brief calls for the integration of regions through land use rezoning to decrease inequality, an increase in public investments in preschool programs, raising the minimum wage, and the reformation of unfair tax policy that favors the wealthiest 1 percent.

“Inequality is a defining issue for America’s future,” John Powell, director of the Haas Institute, said in a press statement. “The good news is that we know variation in inequality and mobility imply that local, state, and federal policies can have an impact. Therefore, the solution is within reach, but only if policymakers learn from and apply researched based initiatives.”

While this is the Haas institute’s first policy brief, it is far from being Lee’s first foray into the issues of inequality. In fact, it’s become an area of her expertise. Lee, will give this morning’s keynote address, has been introduced two bills to curb the growth of inequality.

The first, the Income Equity Act (H.R. 199), would limit the tax deductibility of executive compensation packages. Currently, the more a firm pays its CEO, the more the firm can deduct from its taxes, leaving “cash-strapped taxpayers picking up the tab,” said Lee in a 2013 blog post.

“Despite record corporate profits, none of it is being shared with the American working class—the strongest work force in the world,” Jim Lewis, Lee’s press director, told the Guardian. “We’re pushing for research-based initiatives that are realistic when implemented.”

Locally, state Sens. Mark DeSauliner (D-Concord) and Loni Hancock (D-Oakland) introduced a pay-disparity bill (SB 1372) in April, which would tax companies with a wide income gap between CEOs and workers, and give tax breaks to companies with lower income disparities.

The second, Lee’s Pathways Out of Poverty Act (H.R. 5352), addresses unemployment in minority communities, namely African Americans and Latinos. It aims to create good-paying jobs and increase social mobility while strengthening the social net for those still struggling.

Research based solutions seem like a perfectly practical way to go about solving our evident wealth gap, but “1 percenter” and “the 99 percent” have only been part of the national lexicon since 2011’s Occupy protests.

A Gallup poll from January this year revealed that Democrats and independents are overwhelmingly dissatisfied with income and wealth distribution, as well as a majority of Republicans. The poll also found that only slightly about half of Americans are satisfied with the opportunity to get ahead by working hard.

“For many years, income inequality was viewed as an important factor and byproduct of growth,” said Powell. “That has been largely discredited by economists. It’s not a necessary byproduct of technological advances and globalization.”

All of this comes at a time when the wealth gap in the United States—and especially in the Bay Area—is reaching exorbitant proportions.

In June, the San Francisco Human Services Agency released a report stating that while the rich get richer and the poor get poorer, the city’s middle class—those earning around the median household income of $72,500—is disappearing altogether.

A recent study by the Brookings Institution revealed that between 1990 and 2012, the city’s middle class has shrunk from 45 percent of the population to 34 percent.

“There’s no need for this kind of gap, it’s unsustainable,” Powell said. “We need to work on a local level, especially when we have a more liberal legislature in California. Closing the gap can enhance economic growth. It can bring the country together.”