Affordable Housing

Democratic party rejects bid to make waterfront development more democratic (UPDATED)

Note: This story has been updated (see below).

The governing body of the San Francisco Democratic Party voted Wed/12 to oppose a controversial June ballot measure concerning waterfront height limits, despite voting last year to support a strikingly similar measure on the November ballot.

By a slim 13-to-12 vote, the Democratic County Central Committee voted to oppose Proposition B, which would require city officials to get voter approval before approving new building projects that are taller than what’s legally sanctioned under a comprehensive waterfront plan.

The vote breakdown was surprising to some because until recently, the DCCC was known as a progressive stronghold in San Francisco politics. Its slate cards are distributed to Democrats throughout San Francisco, and Democrats make up the vast majority of city voters.

Now, under the leadership of a chair who is employed as a lobbyist for the San Francisco Association of Realtors, the DCCC has aligned itself with powerful real-estate developers hoping to build along the city’s waterfront. 

District 8 Sup. Scott Wiener came under scrutiny recently because he called for a formal evaluation on the impact of Prop. B after developers who oppose the measure sent emails urging him to do so. Wiener, who emphasized at the time that he merely sought an “impartial analysis” of the measure, voted against Prop. B.

Also opposing Prop. B were Assmeblymember Phil Ting, Attorney General Kamala Harris, and Bevan Dufty, a former District 8 supervisor who now leads the mayor’s initiatives on homelessness. 

Twelve members voted to endorse the measure, including Sups. John Avalos, David Campos, Eric Mar, and Malia Cohen, as well as California Sen. Mark Leno and Assemblymember Tom Ammiano. 

But the threshold for this vote to pass or fail was much lower than usual, because so many DCCC members simply refused to take a stand one way or the other.

Prop. B comes on the heels of voters’ rejection last November of Props. B and C, dueling initiatives which concerned the fate of a controversial luxury high-rise tower, the 8 Washington project. 

Although that project won Board of Supervisors approval, opponents brought a referendum to the ballot to ask voters to decide whether to uphold or reject a building height increase that went above the established limit.

The rejection of 8 Washington at the ballot was interpreted as a politically significant turning point, because voters flushed a luxury condo tower down the tubes at a time when the housing affordability crisis was getting into full swing. Soon after that victory, 8 Washington opponents returned to file paperwork for a new referendum on the ballot, to require voter approval for all waterfront height-limit increases.

San Francisco Board of Supervisors President David Chiu – who not only opposed 8 Washington but helped gather signatures for the referendum to challenge it – did not take a position on the waterfront height limit measure. Chiu’s decision to abstain sets him apart from Campos, his opponent in the upcoming Assembly race. Had Chiu voted to endorse Prop. B, its opponents would not have had the votes to get the upper hand.

UPDATE: Chiu said he still hasn’t formed an opinion on the measure, and that he’s waiting on a pending city analysis and the outcome of a lawsuit challenging it. 

“There’s been very little analysis and it could take money away from affordable housing and cost the city money fighting a lawsuit,” he said, citing the money that developers would be spending on political campaigns as the potential source of affordable housing money. 

“I am open to supporting the measure, as someone who passionate about waterfront development,” he added, citing the lead role he took in opposing the 8 Washington project. (End of update.)

Others who abstained (or did so by proxy) included Alix Rosenthal (who is working as a consultant on the waterfront Warriors arena project), Sen. Dianne Feinstein, Rep. Jackie Speier, and Rep. Nancy Pelosi. California Sen. Leland Yee – whose representative at the meeting, John Rizzo, reportedly did not show up to cast Yee’s vote – was reportedly also planning to abstain.

Jon Golinger, who is leading the Prop. B campaign to require voter approval for waterfront height-limit increases, said he wasn’t terribly concerned about the DCCC vote, since early polling was favorable to his campaign. But he found it telling that the same cast of characters who had opposed 8 Washington were now voting to oppose a measure that would have extended voters’ will on 8 Washington to all waterfront development proposals.

“The key difference,” between Prop. B and last November’s 8 Washington vote, he told the Bay Guardian, “is that there are more big money interests that have something to lose here.”

Alerts: March 12 – 18, 2014

0

WEDNESDAY 12

San Francisco Neighborhoods on the Brink Bird and Beckett Books and Records, 653 Chenery, SF. www.birdbeckett.com. 7pm, free. A panel discussion on displacement, gentrification, rising rents, and the loss of affordable housing. Join us to discuss the dilemma facing longtime residents and renters of modest means — and the gutting and gentrification of San Francisco — as real-estate speculation and a quickly widening income gap drive rents to dizzying heights while the rental supply dwindles. Ellis Act evictions are buffeting many of our neighbors, and the lack of affordable housing affects us all.

 

THURSDAY 13

 

Screening: Terms and Conditions May Apply Unitarian Universalists Hall, 1924 Cedar, Berk. www.bfuu.org. 7pm, $5-10 donation, no one turned away for lack of funds. Have you ever read the “Terms and Conditions and Privacy Policies” connected to every website you visit, phone call you make, or app you use? Of course you haven’t. But those agreements allow corporations to do things with your personal information you could never even imagine. What are you really agreeing to when you click “I accept”? Find out in this disquieting exposé.

 

FRIDAY 14

 

Visual Activism Symposium Brava Theater Center, 2781 24th St., SF. www.sfmoma.com/events. 9am-7pm, free with pre-registration. Join us for a symposium exploring the relationship between visual culture and activist practices. Art can take the form of political and social activism, and activism often takes on specific, and sometimes surprising, visual forms. How is our broader visual culture shaped by activist practices that circulate in public space? Scholars, artists, and activists address these and related questions in a series of presentations, performances, workshops, and interactive projects.

SATURDAY 15  

International Day Against Police Brutality Arroyo Park, 7701 Krause, Oak. www.march15oak.noblogs.org. 12pm, free. March 15th has been designated as International Day Against Police Brutality since 1997, as an initiative by radical groups in Montréal and Sweden. Police brutality is nothing new to Oakland, and for the second year in a row we will observe the International Day Against Police Brutality with a demonstration beginning at Arroyo Park in east Oakland. A rally will start at noon, followed by a march starting at 1pm.

SUNDAY 16

Anonymous Internet Communication Niebyl Proctor Marxist Library, 6501 Telegraph, Oak. cuyleruyle@mac.com. 10:30am-12:30pm, free. It’s no secret that the NSA was and is secretly spying on people here at home and around the globe. The justification given for this activity is that it can prevent terrorism and crime. While we wait for Congress or the courts to do something, we can right now actively protect our individual privacy, using freely available technical tools and best practices. Keith Davis will discuss the motivations for Internet Anonymity and the different levels of privacy that can be obtained. He also will provide caveats and warnings associated with the use of privacy tools and practices.

Soda tax is social justice issue

129

Eric.L.Mar@sfgov.org, John.Avalos@sfgov.orgtom@tomammiano.com

OPINION

We are fighting for a soda tax because public health leaders have sounded the alarm that sugary drinks are a serious threat to our public health. Now is the time to get the word out about the latest facts that tell the story.

Our work on the issue began when community leaders and medical experts started educating us on the impact of sugary drinks. The resulting legislation that we crafted along with four other members of the Board of Supervisors will not only slow soda consumption, but it will fund the anti-hunger and physical activity programs we dearly need.

Most folks know soda is bad for you, but not how bad. Many are also unaware that Big Soda is specifically targeting communities of color and children. Our task is to spread the word about the health disparities this creates.

The lack of healthy food choices is an injustice that is hitting communities of color the hardest. Fully three-fourths of adult Latinos and African Americans in San Francisco are obese or overweight and one in three Americans will soon be diabetic, including one in two Latinos and African Americans.

The disparities are geographic as well. The highest rates of diabetes hospitalizations and emergency room visits are among residents of the Bayview, Tenderloin, SoMa, and Treasure Island. Close behind are the Excelsior and Visitacion Valley. These are also the neighborhoods that lack access to healthy food and are among those consuming the most soda.

We are already paying the high price of soda consumption. San Franciscans spend at the very least $50-60 million a year in health care costs and sick days due to obesity and diabetes attributable to sugary drinks. The fact that sugary drinks are the biggest single source of added sugar in our diets sets it apart from other unhealthy foods.

The revenue generated has tight controls and must be used to mitigate the harm Big Soda causes. Steered by an independent committee and targeted to communities suffering the most from health inequities, the tax will bolster funding for everything from school meals, healthy food retailer incentives, physical education, and other deserving programs.

Big Soda has hired high-priced lobbying firms and public relations folks who are employing a small army of young people, deploying them into the Bayview, the Mission, and Chinatown — those communities most impacted by diabetes and soda consumption. They’ve set up a front group — San Franciscans for an Affordable City — to capitalize on the anger in SF about the cost of housing and living.

But think about it: Have Big Soda companies helped us in our fight for affordable housing? Are they fighting for a living wage for communities of color in San Francisco? They have never cared about an affordable city. They care about protecting their profits, period.

We need affordable housing, healthy foods, and physical activity — issues we are working on every single day. On the other hand, our communities need affordable soda as much as we need cheap cigarettes and booze. It only makes us sick.

There are things our communities are doing to promote good health, like transforming corner stores into healthy retailers, building community gardens, and expanding physical and nutrition education. The soda tax as it is written now can provide these programs and dramatically improve our communities’ health.

This isn’t a ban but a reasonable first step to decrease soda consumption. This is a research-proven way of getting people to use less of an unhealthy product — it worked with cigarettes and it worked with alcohol. Finally, the tax will fund a range of great programs that will actually provide healthy choices for everyone.

It’s time we make the healthy choice the easy choice for low-income communities and all San Franciscans.

John Avalos represents District 11 (Outer Mission, Excelsior) and Eric Mar represents District 1 (the Richmond District) on the San Francisco Board of Supervisors, Tom Ammiano represents Assembly Dist. 17 (eastern San Francisco) in the California legislature.

 

Lee must pay for his promises

19

EDITORIAL

Mayor Ed Lee has made a lot of promises to San Franciscans, but he has been unwilling to pay for them with money from the city or his wealthy backers, transforming these statements in hollow political platitudes — or, less charitably, calculated lies meant to mask the true state of the city.

Lee pledged to build 30,000 units of new housing — a third of it affordable to those with moderate incomes and below — by 2020. By that same year, Lee set the goal of increasing bicycling to 20 percent of all vehicle trips in the City. Lee also directed city departments to develop strategies for reducing pedestrian deaths by 50 percent by 2021. And so Muni’s aging fleet can keep up with population growth, Lee’s SF2030 Transportation Task Force said the transportation system needs a $10 billion capital investment over the next 15 years, a target Lee endorsed.

These were all admirable goals, and in each case, city agencies studied the problems and developed detailed strategies for getting there. And in each case, Mayor Lee chose to fund just small fractions of what the city would need to make his promises come true.

Actually, the housing problem is still being studied, but nobody thinks this goal will be met — as even the pro-development San Francisco Business Times said in a recent editorial — particularly given how the Mayor’s Office structured the business tax reform and Affordable Housing Fund ballot measures in 2012, with giveaways to developers and favored economic sectors, such as tech.

Lee’s WalkFirst program would need $240 million to meet his modest goals — far more to actually realize the VisionZero goal of eliminating all pedestrian deaths, which Lee said he supports — and the Mayor’s Office has only pledged $17 million in funding. The cycling goals would take more than $500 million, not the $30 million currently pledged. Even with approval of the two transportation ballot measure proposed for this fall, and those planned for future years, that only gets the city about a third of the way to meeting San Francisco’s future transportation needs.

Meanwhile, a downtown SF congestion pricing charge that has been studied using federal funds — which would reduce traffic and pedestrian deaths while raising $80 million annually — is being ignored by Lee, as is the once-promising idea of downtown transit assessment districts. Lee is refusing to seek the city’s share of the tremendous wealth now be generated in this city.

As a result, Lee is making promises that he knows he won’t deliver on. And last week, in the five-year budget projection his office is required to issue, we all saw the results of Lee’s economic policies: growing budget deficits for this booming city. Next year’s $67 million deficit is projected to balloon to $340 million by 2017-18. Mr. Mayor, “getting things done” requires more than just words, it requires the political courage to make your promises comes true.

Three upcoming events on housing in San Francisco

There are a few upcoming opportunities to have your say in the ongoing dialogue about the San Francisco tenants’ struggle as long-term renters grapple with rising rents and the threat of displacement.

Amid the housing pressure, a thriving tenants’ rights movement has unfolded in the city to spur multiple legislative pushes for reform. These conversations (and the art exhibit to piece these issues together on a deeper level) are timely.

Wed/12: San Francisco Neighborhoods on the Brink: A Panel Discussion on Displacement, Gentrification, Rising Rents & the Loss of Affordable Housing

Hosted by San Francisco Poet Laureate Alejandro Murguia, this panel discussion will feature comments by District 11 Sup. John Avalos, Public Policy Director of the Chinatown Community Development Center Gen Fujioka, and SFUSD teacher and Ellis Act target Sarah Brant.

An announcement description says the discussion will focus on the “dilemma facing long-time residents and renters of modest means — and the gutting and gentrification of San Francisco — as real estate speculation and a quickly widening income gap drive rents to dizzying heights while the rental supply dwindles.”

Details here.

“There’s a difference between a neighborhood changing—which is natural and organic—versus the destruction of a neighborhood, its history and legacy, which is what is happening right now in the Mission District.” Alejandro Murguía

Wed/12: “Sólo Mujeres: HOME / inside out” – An interdisciplinary exhibit at the Mission Cultural Center for Latino Arts

Curated by Susana Aragón and Indira Urrutia, this exhibition features 24 women artists in exploring the symbolic space of home through a variety of mediums, including installation, painting, photography, sculpture, poetry, video and mixed media. Artists include Yolanda Lopez, Xuchi Eggleton, Ximena Sosa, Windsong, Susana Aragón, Sofía Elías, Tina Escaja, Tanya Marie Vlach, Rebeca García Gonzales, Solange Bonilla Leahy, Natalia Anciso, Melanie Lacy Kusters, Marta R, Zabaleta, Mariella Zevallos, Indira Urrutia, Gabriela Luz Sierra, Flor Khan, Fan Warren, Cristina Ibarra, Clara Cheeves, Carmen Lang, Camila Perez-Goddard, Anna Simson, Alejandra Rassvetaieff, Adriana Camarena.

From the announcement: “A home is a place that is close to our heart, it triggers self-reflection, thoughts about who someone is or used to be or who they might become. Each room or space is connected to memories, feelings, ideas, dreams, etc. As part of the exhibit, the gallery will be transformed into a house which rooms will be delimited by see through fabric to show the fragility of housing in The San Francisco’s Mission District.

It opens at 7pm with a live performance by María José Montijo and Diana Gameros. Details here.

Wed/19: Affordable housing from multiple perspectives

The Noe Valley Democratic Club is hosting what it calls “a distinguished and authoritative panel of experts” who will speak about affordable housing in the Bay Area. What’s interesting about this event is that it will bring together folks who are leading a citywide push at the grassroots level to strengthen tenants’ rights, as well as people from more developer-friendly entities such as SPUR (San Francisco Bay Area Planning and   Research Association) and the San Francisco Housing Action Committee.

The panelists will include:

Sarah Karlinsky, (panel moderator), Deputy Director of SPUR (San Francisco Bay Area Planning and   Research Association)

Douglas Shoemaker, President of Mercy Housing California, a non-profit dedicated to affordable      housing development, fundraising and services.

Teresa Yanga, Deputy Director of the Mayor’s Office of Housing

Tim Colen , Executive Director of San Francisco Housing Action Committee

Fernando Martí, Co-Director of the Council of Community Housing Organizations (CCHO)

Sara Shortt, Executive Director of the San Francisco Housing Rights Committee 

Details here.

One final tidbit, tangentially related at best. Salon has a great article, Gentrifying the dharma” How the 1 percent is hijacking mindfulness, which thoughtfully examines a trend that has led Buddhists to fear that their religion is turning into a designer drug for the elite.”

(A few weeks ago activists with Eviction Free San Francisco disrupted a Google panel about mindfulness, triggering a decidedly unenlightened onstage tug-of-war over a banner.)

Best quote is from the Dalai Lama, who sees things this way: “Capitalism only takes the money. Then, exploitation.”

Ammiano and Leno seek to reform the Ellis Act and slow SF evictions [UPDATED]

110

State lawmakers from San Francisco are launching a two-pronged attack on the Ellis Act, which real estate speculators are increasingly using to evict tenants from rent-controlled apartments and cash in on a housing market that’s been heated up by demand from high-paid employees of the booming tech sector.

Assemblymember Tom Ammiano today introduced Assembly Bill 2405, which would allow the San Francisco voters or the Board of Supervisors to declare a mortorium on Ellis Act evictions when the city’s state-mandated affordable housing goals aren’t being met.

Sen. Mark Leno is also planning to introduce his own Ellis Act reforms by today’s legislative deadline for introducing new bills. He’s been working on a reform package with Mayor Ed Lee, but Leno is keeping the details under wraps under Monday at 9am when the pair will hold a press conference outside a Chinatown apartment building to announce their proposal.

Both proposals face an uphill battle in Sacramento given that San Francisco is one of only a couple jurisdictions in the state that have rent control, which Ellis Act was designed to undermine by allowing landlords to get out of the rental business and remove apartments for the market. And the real estate industry industry is expected to strongly oppose the reforms.

“It will, of course, be very difficult, but Mr. Ammiano has been talking about this for months and he’s committed to doing something,” his Press Secretary Carlos Alcala told the Guardian.   

UPDATE 2/24] Leno and Mayor Lee — flanked by other supporters of the legislation, including Sups. David Campos and David Chiu, rival candidates to succeed Ammiano — this morning announced the introduction of Senate Bill 1439. It would authorize San Francisco to prohibit those who buy rental properties to invoke the Ellis Act and evict tenants for at least five years, and only allow only one Ellis Act eviction for the life of each property. 

“The original spirit of California’s Ellis Act was to allow legitimate landlords a way out of the rental business, but in recent years, speculators have been buying up properties in San Francisco with no intention to become landlords but to instead use a loophole in the Ellis Act to evict long-time residents just to turn a profit,” Leno said.

Ammiano’s press release follows, followed by Leno’s:

 

Ammiano Introduces Bill to Stem Evictions from Affordable Housing

 

SACRAMENTO – Assemblymember Tom Ammiano today introduced AB 2405 to empower local jurisdictions to stop the erosion of affordable housing stock.

 

“San Francisco is seeing a terrible crisis,” Ammiano said. “The people who have made our city the diverse and creative place that it is are finding it harder and harder to stay in San Francisco. The rash of Ellis Act evictions has only made it worse.”

Ellis Act evictions are permitted under certain circumstances when a property owner is taking a rent-controlled unit out of the rental market. However, some owners have been abusing these provisions and improperly evicting tenants from rent-controlled units. The problem is not restricted to San Francisco, although the city is going through a particularly critical loss of affordable housing.

AB 2405 would allow local jurisdictions – by means of a Board of Supervisors or public vote – to enact a moratorium on Ellis Act evictions when the local housing element is not met. Also, the bill would hide no-fault evictions from tenant records or credit checks in unlawful detainer cases, and would place Ellis Act unlawful detainer cases on civil court calendars.

“Experience shows you can’t build your way out of an affordable housing crisis,” Ammiano said. “We have to do what we can to preserve what affordable housing we have. This is one piece of that effort.”

New Legislation Closes Ellis Act Loophole for San Francisco

Senator Mark Leno Joins Mayor Ed Lee, Tenant Advocates, Labor Groups and Business Leaders

to Stop Speculative Evictions in San Francisco

 

SAN FRANCISCO – Senator Mark Leno today joined San Francisco Mayor Ed Lee, other elected officials, tenant advocates, labor groups and business leaders to introduce legislation closing a loophole in the Ellis Act that allows speculators to buy rent-controlled buildings in San Francisco and immediately begin the process of evicting long-term renters. Aiming to mitigate the negative impacts of a recent surge in Ellis Act evictions in San Francisco, Senate Bill 1439 authorizes San Francisco to prohibit new property owners from invoking the Ellis Act to evict tenants for five years after the acquisition of a property, ensures that landlords can only activate their Ellis Act rights once, and creates penalties for violations of these new provisions.

 

“The original spirit of California’s Ellis Act was to allow legitimate landlords a way out of the rental business, but in recent years, speculators have been buying up properties in San Francisco with no intention to become landlords but to instead use a loophole in the Ellis Act to evict long-time residents just to turn a profit,” said Senator Leno, D-San Francisco. “Many of these renters are seniors, disabled people and low-income families with deep roots in their communities and no other local affordable housing options available to them. Our bill gives San Francisco an opportunity to stop the bleeding and save the unique fabric of our City.”

 

Ellis Act evictions in San Francisco have tripled in the last year as more than 300 properties were taken off the rental market. This spike in evictions has occurred simultaneously with huge increases in San Francisco property values and housing prices. About 50 percent of the city’s 2013 evictions were initiated by owners who had held a property for less than one year, and the majority of those happened during the first six months of ownership.

 

“We have some of the best tenant protections in the country, but unchecked real estate speculation threatens too many of our residents,” said Mayor Lee. “These speculators are turning a quick profit at the expense of long time tenants and do nothing to add needed housing in our City. These are not the landlords the Ellis Act was designed to help, and this legislation gives San Francisco additional tools needed to protect valuable housing and prevent further Ellis Act speculator evictions, which has already displaced working families and longtime San Franciscans. This carve out is a good policy for San Francisco, and I thank Senator Leno for being a champion on this issue. Together we have built a large coalition of renters, labor and business leaders to fight this battle in Sacramento to support middle income and working families here in our City.”

 

“Rents in San Francisco are at an all-time high. My former neighbors and I, working families and seniors, were displaced from the place we called home for several decades,” said Gum Gee Lee. “Those that have yet to receive an Ellis Act notice continue to live in fear, fear that they too will be evicted from their homes. For seniors such as myself who rely on public transportation and access to social and health services within our community, Ellis evictions cut our lifeline, our independence to thrive. For working class families such as my former neighbors from Jackson Street, they continue to struggle to survive in San Francisco. San Francisco is our home.”

 

Enacted as state law in 1985, the Ellis Act allows owners to evict tenants and quickly turn buildings into Tenancy In Common (TIC) units for resale on the market. In San Francisco, the units that are being cleared are often rent controlled and home to seniors, disabled Californians and working class families. When these affordable rental units are removed from the market, they never return.

 

Senate Bill 1439 will be heard in Senate policy committees this spring.

Chiu and others get stung for support from speculators and evictors

88

Our colleagues down the hall at the San Francisco Examiner seem to have spoiled tonight’s [Thu/30] fundraiser for David Chiu’s Assembly race by reporting this hour that the host, attorney Steven MacDonald, is on a housing activists’ blacklist for representing landlords in controversial Ellis Act evictions.

Reporter Chris Roberts quotes Chiu campaign manager Nicole Derse pleading ignorance about “what type of law Steven practices” and pledging to return a $500 campaign contribution from him in October, but saying that the 6pm fundraiser at John’s Grill would go on nonetheless.

Derse told the Guardian that MacDonald represents a wide variety of clients, including many tenants who are fighting evictions, so the campaign decided to go ahead with the fundraiser but refused MacDonald’s direct financial support, consistent with a pledge not to take money from those involved in evictions.

“We won’t accept money from anyone who has been involved with evictions at all,” Derse told us, saying it was a mistake to accept money from MacDonald but acknowledging the challenge of the “scrutiny and vetting involved for a small campaign.”

“We’ll do everything we can to make sure this doesn’t happen again,” she told us.  

The controversy and the Chiu’s campaign’s quick decision to refuse the support from an early contributor show just how volatile and politically toxic the city’s eviction and affordable housing crisis have become, rapidly transforming the city’s political dynamics. It also shows how information being made public by housing activists, and their new confrontational tactics, are being used within that changed realm. 

Former Guardian Editor Tim Redmond had a story yesterday on his 48 Hills website focusing on the heat that Sup. Scott Wiener is taking over the political contributions that he’s received from real estate speculators and those involved in evictions, including Urban Green and speculator Ashok K. Gujral, who are among the Dirty Dozen serial evictors highlighted by the Anti-Eviction Mapping Project, whose work we been covering for months here at the Guardian.

Below is an infographic of Supervisor Wiener’s campaign contributions, created by the Anti-Eviction Mapping Project:

The price of growth

20

joe@sfbg.com

San Francisco is booming, but will its infrastructure be able to keep up with its population growth?

The problem is acutely illustrated in the southeast part of San Francisco, where long-stalled development plans were finally greenlit by the adoption of the Eastern Neighborhoods Community Plan a few years ago.

The Mission, Potrero Hill, Dogpatch, and Mission Bay districts have attracted more attention from developers than any other sector of San Francisco, according to the Planning Department. Bayview and Hunters Point are also now attracting lots of investment and building by developers.

But when development projects don’t pay the full cost of the infrastructure needed to serve those new residents — which is often the case in San Francisco and throughout California, with its Prop. 13 cap on property tax increases — then that burden gets passed on the rest of us.

Mayor Ed Lee’s recent call to build 30,000 new housing units by 2020 and the dollar sign lures of waterfront development have pressed the gas pedal on construction, while giving short shrift to corresponding questions about how the serve that growth.

growthimage

Infrastructure needs — such as roads, public transit, parks, and the water and sewer systems — aren’t as sexy as other issues. But infrastructure is vital to creating a functional city.

That kind of planning (or lack thereof) impacts traffic congestion, public safety, and the overall livability of the city. And right now, the eastern neighborhoods alone face a funding gap as high as $274 million, according to city estimates highlighted by area Sup. Malia Cohen.

That’s why Cohen went looking for help, though that’s not exactly what she found.

 

MEETING DEMAND

Cohen has asked Mayor Lee about the lack of adequate investment in critical infrastructure again and again. She asked his staffers, she asked his aides. At the Feb. 11 Board of Supervisors meeting, during the mayor’s question time, she was determined to ask one more time.

Cohen asked the mayor about how to fund infrastructure needs in the eastern neighborhoods and whether the city should use a new, rarely used fundraising option called an Infrastructure Financing District, or IFD.

“When the city adopted the Eastern Neighborhoods Plan, we were aware of a significant funding gap that existed for infrastructure improvement,” she said to the mayor. She asked if he would slow down development while the city caught up with infrastructure improvements, or commit more funding.

Cohen asked pointedly, “Would you support an IFD for the eastern neighborhoods?”

The mayor’s answer was in the foreign language known as bureaucratese, offering a firm “only if we have to.”

“Strategically planning for growth means making long-term investments in infrastructure,” he said. “And the most important thing that we can do right now is to work together to place and pass two new revenue generating bonds measures on the November 2014 ballot.”

But his proposed $500 million general obligation bond and $1 billion local vehicle license fee increase would just go to citywide transportation projects, where the city faces $6 billion in capital needs over the next 15 years, according to a task force formed by the mayor.

That’s small comfort for the people of the eastern neighborhoods, who are already ill-served by Muni and will have other needs as well. It’s a situation likely to get worse as the population there increases, unless the city finds a way to make serious new investments.

 

CITY VS. NEIGHBORHOOD

Development impact fees go to the city’s General Fund, paying for the planning work, building inspections, and a share of citywide infrastructure improvements. The problem with that strategy, opponents say, is that there are then no promises that the money will make its way back to the neighborhood that generated the funding in the first place.

Neighborhood advocates see a need to address the problems created by new development by capturing fees before they get to the General Fund. IFDs do just that. Though the nuts and bolts of how an IFD works are complex, the gist is this: Once implemented, an IFD sets up a special area in a neighborhood where a portion of developer impact fees are captured to exclusively fund infrastructure where the development is.

“So the idea that growth should pay for growth was the notion,” Tom Radulovich, executive director of the nonprofit group Livable City, told us. But with money flowing into the General Fund rather than being earmarked for specific neighborhoods, Radulovich said,the infrastructure is going to come much later than the development. (The city) delivers projects slowly, if at all.”

IFDs are largely untested in California, and have only one recent use in San Francisco, on Rincon Hill, where a deal with developers cut by then-Sup. Chris Daly has morphed into an IFD created by his successor, Sup. Jane Kim. The neighborhood will now see new funding, and a new park, as a result of development there.

“This is a HUGE step towards getting the public infrastructure improvements needed to correct livability deficiencies in Rincon Hill,” read a newsletter from the Rincon Hill Neighborhood Association in 2011. “What does this mean for those of us living (here)? It means the Caltrans property at 333 Harrison Street has a short future as a commuter parking lot, because the front portion will become our first neighborhood park.”

The benefits are tangible, but putting an IFD into action is onerous. California Senate documents describe the hurdles involved: The county (or city) needs an infrastructure plan, it must hold public hearings, every local agency that will contribute property tax revenue must approve the plan, and the IFD needs to go to ballot and obtain two-thirds voter approval, a high mountain to climb.

Gov. Jerry Brown has called for lowering the voter threshold for IFDs to 55 percent in his newest budget. The mayor used the governor’s rationale as reason to avoid an IFD for the eastern neighborhoods when speaking on the topic last week. But that may not be his only reason.

“Even if we get the changes that we seek, it’s important to point out that IFDs don’t create more money for our city, they fund specific capital improvements by earmarking money in the General Fund for a particular purpose,” Lee said.

In other words, IFDs take money from a city that is already wrestling with underfunded citywide infrastructure needs. “Earmarking general funds isn’t something that we do lightly,” Lee told Cohen.

But Peter Cohen, co-director of the Council of Community Housing Organizations, put it this way to us: “Should the eastern neighborhoods be the cash cow for the General Fund?”

 

BOOMTOWN

With more than 10,000 housing entitlements, the eastern neighborhoods are where San Francisco will experience its biggest growing pangs.

“The eastern neighborhoods are ground zero for development in San Francisco,” Keith Goldstein, a long time member of the Eastern Neighborhoods Citizens Advisory Committee, told a Nov. 14 Board of Supervisors Government Oversight Committee hearing on the issue.

Sups. Cohen and David Campos spent the majority of the meeting trying to find solutions, but none were forthcoming. Instead they were met with presentations on the neighborhood’s myriad needs, but few on how they would be funded.

Muni is also starved for resources in the area, where the T-line is notorious for its “switchbacks” that leave riders stranded before completing its run.

“This is a topic I’ve advocated a lot,” Sup. Scott Wiener told us. “When you have a growing population, these folks absolutely have to have service.”

At the meeting, Planning Director John Rahaim put the problem simply: “There’s a lack of development fee funding.” The officials that day from the SFMTA, Planning Department, and the Department of Public Works presented plans that relied heavily on state and federal funding to meet the new construction and infrastructure needs, a funding gap of $274 million.

“We’re really struggling to maintain the infrastructure the city has,” Brian Strong, director of capital planning, said at the meeting. “For the General Fund itself, we’re deferring $3.9 billion in capital projects the city deemed high priority. We just don’t have the funds.”

The Mayor’s Office didn’t respond to our questions about how to solve the problem, but Sup. Cohen said she’s hopeful he’ll support an IFD in her district.

“When we introduced the plan five years ago, we knew there was a gap in terms of what we expected to collect. In terms of development impact fees, we’re still in that place,” she told us. “I just want to get shit done.”

One report seems to agree with Cohen on the importance of IFDs. In 2009, a major report on development in the eastern neighborhoods was filed to then-Mayor Gavin Newsom. It recommended the city “commission a consultant study to inform the formation of an IFD,” saying it was the best tool available to fund infrastructure in the eastern districts.

The top signature on the report belonged to then-City Administrator Ed Lee. Now that he’s mayor, a mayor calling for rapid growth, can he find a way to pay for the infrastructure to serve those new residents?

Can we rediscover radical action on this marriage equality anniversary?

38

San Francisco’s political establishment will rightly celebrate itself this afternoon [Wed/12] at 5pm with a ceremony in City Hall marking the 10th anniversary of the unilateral decision to start issuing marriage licenses to same-sex couples, kicking off what became known as the Winter of Love.

It was the greatest thing that then-Mayor Gavin Newsom did during his seven-year tenure in Room 200, a bold and principled stand for civil rights that started California down the long and arduous road toward marriage equality.

“It was a proud moment for San Francisco, and some of my most meaningful moments in public service,” Mayor Ed Lee wrote in a guest editorial in today’s Examiner, referring to the minor role that he played as a city administrator at the time.

But that kind of political leadership and willingness to take radical action in the face of injustice — or even the recognition during this kumbaya moment that what Newsom did far exceeded his actual legal authority — seems to be absent in today’s City Hall, which overvalues civility and compromise.

Real estate speculators and greedy capitalists are rapidly changing the face of San Francisco, killing its diversity and some would say its very soul, and the Mayor’s Office hasn’t done anything of any real substance to address the problem. While Mayor Lee gives lip service to protecting the city “for the 100 percent,” it is his supporters from the 1 percent that are acting with impunity to evict our workers, artists, and valued cultural institutions.

So as San Francisco officials pat themselves on the back this afternoon at City Hall, celebrating what was indeed an important and historic effort, our hope is that they will remember the radical spirit of that fateful moment and apply it to the pressing problems that have ignited such populist outrage today.   

Full steam ahead

0

arts@sfbg.com

BEER Just across McCovey Cove from AT&T Park, the San Francisco Giants and Anchor Brewing Company are concocting a beer-filled future for Pier 48. As part of the Mission Rock development project, the new Anchor brewery, slotted to break ground in late 2015, would allow Anchor to quadruple production and remain in San Francisco.

The proposed brewery will eventually contain a restaurant, museum, educational space, and distillery. It’s being designed with giant windows that will offer an unprecedented view of operations. Brewing would be transparent enough to be observed while casually strolling the pier or even from certain seats inside the ballpark.

“As you come in and you look into the brewery, the first thing you’ll see will be one of the cold fermentors,” says architect Olle Lundberg, referring to the large cooling pans or “cool ships” Anchor still uses to chill its boiled beer batches. “The bar for the restaurant will look out over that, so you’ll be looking out over this kind of sea of beer into the brewery. If that doesn’t inspire you to drink, I don’t know what will.”

Anchor has been poised to expand for years. It even has a copper German brewhouse ready to install in the new facility. It’s been sitting in storage since it was purchased in the early 1990s by then-CEO Fritz Maytag. He left the collection of kettles, mash tuns, and fermentors unused when his plans for a new brewery were sidelined by that rarest of business concerns: happiness.

“In 1990 the brewery was doing about 100,000 barrels, which made it the number one craft brewery in the country,” says CEO Keith Greggor in his cheery British accent. “Further expansion was going to be very difficult, very costly. At the same time, [Maytag] got very interested in distilling and he decided, ‘You know what? I’m number one. I don’t need to focus on being the biggest and the baddest. I’m happy with what I’m doing and I’m going to focus on distilling now.’ And he was one of the first in that kind of craft distilling revolution that’s happened.”

This was the second craft revolution that Maytag, the great-grandson of Maytag Appliance founder Frederick Maytag, helped to ignite. In 1965, he was enjoying a “Steam Beer” at a North Beach restaurant when he was told it would be the last he would ever have: the brewery, which had survived Prohibition decades earlier, was closing. Hearing this, he purchased a controlling share of the company, saving from extinction not only a brewery in operation since 1896, but one of the only known styles of beer to have originated in America. “Steam Beer,” technically classified as “California Common Beer,” is a lager fermented at ale temperatures.

But times have changed since 1965. Craft brewing has been revived in America to the point that decorative plastic hops are A Thing. And competition demands more than being the only kid on the block with flavorful barley-pop. So in addition to the new brewery plans, Anchor will be discontinuing its bock beer and Humming Ale, while offering a new saison and an IPA.

“We like to say that we’re resting those beers,” says Greggor of the discontinued lines. “We have to respond to the consumer and retail demand for beer. And the demand for today is: ‘I want new. I want new.'”

And new it will be. Since 2010, when Maytag sold the brewery to the Griffin Group of Novato, most noted for their work with Skyy Vodka, Anchor has introduced several new beers to its regular line, including Brekle’s Brown, California Lager, and Big Leaf Maple. One the most recent is Small Beer, which draws from well-trod brewing techniques, making a lighter, more session-able ale from the mash of Old Foghorn — a more robust, flavorful brew.

And the Mission Rock development hopes to get even more out of those spent grains. As part of a proposed district-wide energy management facility, Anchor’s waste and run-off could be used to create methane for heating, and gray-water for toilets and sprinklers.

“We’re looking at all kinds of crazy, fun ideas for waste recapture,” says Fran Weld, director of real estate for the Giants. (The team, which is partnered with the Port of San Francisco on the project, asked Anchor to be the first tenant.) “The idea of looking at a district-wide solution is you can consolidate all of those chilling towers and boilers that the developers would otherwise build. You can do fewer of them because of the fact that you’re meeting the demands of the site as a whole — so your baseline of required energy is much lower.”

Still awaiting final approval from city agencies, the Mission Rock plan also includes mixed-use office, retail, restaurant, and manufacturing spaces, as well as affordable housing. But perhaps most remarkable is the development will enable San Francisco’s oldest and largest manufacturer to remain within the city, though at no small cost.

“You can imagine there are much, much cheaper places for them to build this facility,” says Lundberg, whose design firm is joint-venturing the project with Bohlin Cywinski Jackson. “They could just keep Potrero Hill as a kind of, you know, boutique signature facility and then make most of their product in Chico or somewhere. But instead they’ve decided that they really want to be here and they want to do it all here and there’s a big number attached to that.”

When asked if he has considered a opening an additional brewery elsewhere (as Petaluma-based Lagunitas has done in Chicago), Greggor is almost offended.

“I believe that Anchor belongs in San Francisco. That’s our history, that’s our heritage,” says Greggor. “People have an affinity to us, whether they drink beer or not, they like us being part of the city. They applaud our efforts to stay on in the city and make beer here even though it’s a very expensive environment to do so. And we ourselves are all committed personally and passionately to the city. And we don’t want to go anywhere else! We’ll make less money and live here, please.” *

Thirsty for more? Check out all the sudsy goings-on at SF Beer Week (www.sfbeerweek.org), including events featuring Anchor beers, now through Sun/16.

 

Staying power

68

rebecca@sfbg.com

Despite the rain on Feb. 8, organizers of a citywide tenants’ convention at San Francisco’s Tenderloin Elementary School wound up having to turn people away at the door. The meeting was filled to capacity, even though it had been moved at the last minute to accommodate a larger crowd than initially anticipated.

“Oh. My. God. Look at how many of you there are!” organizer Sara Shortt, executive director of the Housing Rights Committee, called out as she greeted the hundreds in attendance. “Tenants in San Francisco, presente!”

The multiracial crowd was representative of neighborhoods from across the city, from elderly folks with canes to parents with small children in tow. Translators had been brought in to accommodate Chinese and Spanish-speaking participants.

Six members of the San Francisco Board of Supervisors also made an appearance: Sups. John Avalos, David Campos, Eric Mar, Malia Cohen, Jane Kim, and Board President David Chiu.

In recent weeks, the convention organizers had convened a series of smaller neighborhood gatherings to solicit ideas for new policy measures to stem the tide of evictions and displacement, a problem that has steadily risen to the level of the defining issue of our times in San Francisco.

tenants1

Ana Godina, an organizer with the SEIU, went to the convention with her daughter Ella, 5. Godina drove from Sacramento to support her colleagues. Three of her fellow union members have been evicted recently, all of them Tenderloin and Mission residents. Guardian photo by Amanda Rhoades

While several legislative proposals are on track to move forward at the Board of Supervisors, the meetings were called to directly involve impacted communities and give them an opportunity to shape the legislative agenda on their own terms, according to various organizers.

Addressing the crowd, Shortt recalled what she termed “some amazing jiu jitsu” during last year’s tenant campaigns, which resulted in a 10-year moratorium on condo conversions rather than simply allowing a mass bypass of the condo lottery, as originally proposed.

That measure, which won approval at the Board of Supervisors last June, was designed to discourage real estate speculators from evicting tenants to convert buildings to tenancies-in-common, a shared housing arrangement that’s often a precursor to converting rent-controlled apartments into condos.

That effort brought together the founding members of the Anti Displacement Coalition, and momentum has been building ever since. “This is the beginning of a movement today,” Gen Fujioka of the Chinatown Community Development Center, one of the key organizations involved, told the gathering. “We are shaking things up in our city.”

 

MAINTAINING DIVERSITY

Around 160 participants attended the first in a series of neighborhood tenant conventions in the Castro on Jan. 10. The one in the Richmond a week later drew so many participants that organizers had to turn people away to appease the fire marshal.

“The idea of the neighborhood conventions was to solicit ideas,” explained Ted Gullicksen, head of the San Francisco Tenants Union. “The idea of this event is to review existing ideas and ultimately rank them.” From there, the campaign will pursue a ballot initiative or legislative approval at the Board of Supervisors.

tenants2

Ted Gullicksen, director of the San Francisco Tenants Union, and his dog Falcor. Guardian photo by Amanda Rhoades

But first, a few speakers shared their stories. Gum Gee Lee spoke about being evicted from her Chinatown apartment last year along with her husband and disabled adult daughter, an event that touched off a media frenzy about the affordable housing crisis taking root in San Francisco.

“There were times that were very stressful for me. I would call places only for the owner to say, ‘I’ll get back to you,’ but they never did,” she said of that ordeal.

“To see everyone here, all kinds of people, it makes me really happy,” she later told the Bay Guardian through a translator. “I just hope they don’t get evicted.”

Mike Casey, president of UNITE-HERE Local 2 and an executive committee member of the San Francisco Labor Council, also made a few comments at the forum.

“Having the ability to live and vote in this city makes a difference,” he pointed out, saying workers who have to commute long distances for political actions because they’ve been displaced from San Francisco are less likely to get involved.

“The struggle of our time is the widening gap between the rich and the poor,” Casey added. “That is exactly what this struggle is about: to maintain that diversity. What we need to move forward on is bold, effective, measurable change that makes sure we are able to protect the fabric of this community.”

Maria Zamudio, an organizer with Causa Justa/Just Cause, emphasized the idea that the problem of evictions in San Francisco is less of a market-based problem and more of a threat to the city’s existing, interwoven communities.

“Those are our neighborhoods and our communities,” Zamudio said. “We’re fighting for the heart of San Francisco. Fighting for strong tenant protections is a necessary struggle if we are going to keep working class San Franciscans in their homes.”

 

ELLIS ACT UNDER FIRE

As Gullicksen noted at the start of the convention, San Francisco rents have ballooned in recent years, rising 72 percent since 2011.

“We are seeing the most evictions we have seen in a long, long, long, long time,” Gullicksen said. “Most Ellis evictions are being done by one of 12 real estate speculators — evicting us and selling our apartments, mostly to the tech workers.”

Even though median market-rate rents now hover at around $3,400 per month in San Francisco, low-income tenants can avoid being frozen out by sudden rental spikes because rent-control laws limit the amount rents may be increased annually.

But that protection only applies to a finite number of rental units, those built before 1979. That’s why tenant advocates speak of the city’s “rent-controlled housing stock” as a precious resource in decline. Long-term tenants with rent control — in the worst cases, elderly or disabled residents who might be homeless if not for the low rent — are often the ones on the receiving end of eviction notices.

From 2012 to 2013, according to data compiled by the Anti Eviction Mapping Project, the use of the Ellis Act increased 175 percent in comparison with the previous year. That law allows landlords to evict tenants even if they’ve never violated lease terms. Advocates say real estate speculators frequently abuse Ellis by buying up properties and immediately clearing all tenants.

Concurrently with local efforts agitating for new renter protections, organizers from throughout California are pushing to reform the Ellis Act in Sacramento.

Assemblymember Tom Ammiano has promised to introduce a proposal by the Feb. 21 deadline for submitting new legislation, and Sen. Mark Leno is working in tandem with San Francisco Mayor Ed Lee on a parallel track to pursue some legislative tweaks aimed at softening the blow from the Ellis Act.

“Our goal is to change the conversation in Sacramento, where tenants’ concerns are routinely ignored,” said Dean Preston, director of Tenants Together, a statewide organization based in San Francisco.

tenants3

Those who didn’t speak English were given head sets so they could listen to each of the speakers comments, which were translated into either Spanish or Chinese. Guardian photo by Amanda Rhoades

On Feb. 18, busloads of protesters will caravan to Sacramento from San Francisco, Oakland, and Fresno for a rally. Preston said they’ve got three demands: reform the Ellis Act, restore a $191 million fund that provides financial assistance for low-income and senior renters, and pass Senate Bill 391, which would provide new funding for the construction of affordable housing.

Even though the law is technically intended to allow property owners to “go out of the business” of being a landlord, Ellis Act evictions in San Francisco are most often carried out by speculators who purchase real estate already occupied by tenants, Gullicksen said.

“Our focus is on the most immediate problem, which is the misuse of the Ellis Act by real estate speculators,” Preston said. “It’s urgent to address that specific use. That’s what Ammiano and Leno are looking at, is ‘what’s the best way to stop speculative use?'”

 

LOCAL POLICY CHANGES SOUGHT

Tyler McMillan of the Eviction Defense Collaborative said his group is often the last resort for tenants threatened with the loss of their rental units. “Too often, we face a losing fight at court,” he said. “We need to write better laws that work better to keep people in their homes.”

The legislative proposals moving forward at the local level seek to attack the problem of evictions and displacement from several angles. On Feb. 3, Sup. David Campos introduced legislation to require landlords who invoke the Ellis Act to pay a higher relocation fee to displaced tenants, equaling two years’ worth of the difference between the tenants’ rent and what would have been considered market rate for that same unit.

“It is time that we recognize that tenants must receive assistance that is commensurate with market increases in rent if we are to truly address our affordability crisis and check the rampant growth of Ellis Act evictions,” Campos said.

As things stand, relocation assistance payments are around $5,261 per tenant, and are capped at $15,783 per unit, with higher payments required for elderly or disabled tenants. But at current market rates, a tenant would not last more than a few months in the city relying solely on the relocation fee to cover rental payments.

Surveying the strong turnout at the tenant convention, Campos said, “There is a movement that’s happening in San Francisco to take our city back, and to make it affordable for all of us.” Yet he noted that he is concerned there will be major pushback from the San Francisco Apartment Association and the real estate industry, formidable interests that oppose the relocation fee increase.

Meanwhile, Sup. Mar has proposed an ordinance that would require the city to track the conversion of rental units to tenancies-in-common, a housing arrangement where multiple parties own shares of a building through a common mortgage. Speculators who buy up properties and immediately evict under the Ellis Act often angle for windfall profits by immediately converting those units to TICs.

Campos is also working on legislation that would regulate landlords’ practice of offering tenants a buyout in lieu of an eviction, a trend advocates say has resulted in far greater displacement than Ellis Act evictions without the same kind of public transparency.

Peter Cohen of the Council on Community Housing Organizations said there’s “no silver bullet” to remedy San Francisco’s affordable housing crisis. “This process is going to come up with another bundle of things,” he said. “All of that is also complimentary to the state campaign. You could have five, six, or seven policy measures going forward — and all of them winnable.”

An idea Cohen said has received traction is the idea of imposing an anti-speculation tax to discourage real estate brokers who abuse the Ellis Act by buying up properties and evicting all tenants soon thereafter (see “Seeking solutions,” for details).

During a breakout session at the tenant convention, longtime LGBT activist Cleve Jones piped up to say, “Harvey Milk proposed the anti-speculation tax back in 1979.”

It wasn’t successful at that time, but Cohen said that given the current level of concern about housing in San Francisco, it’s being talked about in some circles as the most winnable ballot initiative idea.

 

TENANTS FIGHTING BACK

At the Feb. 8 convention, tenants shared stories of challenging orders to vacate their rental properties. “The most important thing that has brought us to the victories we’ve had so far is that tenants have stayed in their homes,” Shortt said. “Tenants have fought, tenants have sought help, tenants have organized.”

Tenants from a North Beach building owned by real estate broker Urban Green shared their story of banding together and successfully challenging an Ellis Act eviction. Chandra Redack, a nine-year resident of 1049 Market St., where tenants continue battling with owners who submitted eviction notices last fall, described to the Bay Guardian how her small group of tenants has continued to organize in the face of ongoing pressure, including the owners’ recent refusal to accept rent checks.

“Our organizations only can support tenants when they stand up and fight,” said Fujioka. “The tenants’ resistance themselves is part of the strategy. If we don’t have rights, we are going to create them.”

Paula Tejeda, a longtime resident of the Mission District originally from Chile, told the Bay Guardian that she’d been threatened with an eviction from her home of 17 years, a Victorian flat on San Carlos Street.

“I thought I was dealing with an Ellis Act, now he’s trying his best for a buyout,” she explained.

Living in that rent-controlled unit made it financially feasible for her to contribute to the Mission community as a small business owner, as well as a poet, author, and active member of the arts community, she said. Tejeda is the proprietor of Chile Lindo, an empanada shop at 16th and Van Ness streets.

“Having the rent control made it possible for me to build Chile Lindo, go back to college and get my MBA,” she said. That in turn gave her the resources to employ one full-time and three part-time staff members, she said.

When she was initially faced with the prospect of moving out, “I wanted to shut down and leave, and go back to Chile,” she said. “We are suffocated, as a society that cares only about the bottom line.”

But surveying the hordes of tenants milling about at the convention, she seemed a bit more optimistic. “The fact that this is happening to everyone at the same time,” she reflected, “is kind of like a mixed blessing.”

tenants4

Free lunch, had some vegan options. Guardian photo by Amanda Rhoades

Seeking solutions

A number of policy ideas emerged from the neighborhood tenant conventions, which were held by the San Francisco Anti Displacement Coalition in the Mission, Chinatown, Haight/Richmond, Castro, SoMa, and the Tenderloin.

Here’s a list of what tenants came up with at those forums, which attendees ranked in ballots collected at the event. The ideas will most likely result in a November ballot initiative and one or more legislative proposals, which organizers plan to announce in the near future.

Anti-speculation tax: One idea is to impose a tax on windfall profits garnered by speculators who buy up housing and then sell it off without maintaining ownership for at least six years. The tax would be structured in such a way that the quicker the “flip,” the higher the tax. This would require voter approval.

Eviction moratorium: This proposal is to put a yearlong freeze on certain kinds of “no-fault evictions,” instances where a tenant is ousted regardless of compliance with lease terms. State law would prohibit it from applying to Ellis Act evictions. It might potentially require voter approval.

Department of Rent Control Enforcement and Compliance: This new department, which could be done by local legislation, would create a new city department with the mission and mandate to enforce existing tenant-protection laws and conduct research on eviction trends.

Relocation assistance: While Sup. David Campos is working on legislation to upgrade relocation assistance payments to displaced tenants who face eviction under the Ellis Act, this proposal would do the same for all other forms of “no-fault” evictions. This would require voter approval.

“Excessive rents” tax: While the Costa-Hawkins state law does not allow for cities to control rents in vacant units, this proposal would create a tax on new rental agreements where rents exceed an affordability threshold.

Housing balance requirement: This proposal would make it so that approval of new market-rate housing would be restricted based on whether affordable housing goals were being met. It would create new incentives to build affordable.

Legalize illegal units: This would provide a way to legalize the city’s “illegal” housing units that nevertheless provide a safe and decent source of affordable housing. (Board President David Chiu has already introduced a version of this proposal.)

A radical proposal: Squat Airbnb hosts’ homes to create affordable housing

139

When I interviewed attorney Joseph Tobener for the story in our current issue on Airbnb being used to take affordable housing units off of the apartment market, he had a interestingly radical idea for get the attention of this scofflaw company and its political supporters, striking a blow for housing justice in the process.

What if hundreds of people, including many who are now homeless, rented out apartments in San Francisco for a night or two and then simply refused to leave?

Under tenant laws in San Francisco, renters have rights from the very beginning, and legally getting rid of someone who paid for just one night through Airbnb could require a long, difficult, and costly eviction process. Hundreds at once would overwhelm the courts and the deputies who carry out evictions for the Sheriff’s Department.

“That tenancy on day one law to me as a radical seems like a great way to address homelessness,” said Tobener, who got a call for advice from a doctor who sometimes hosts guests through Airbnb and faced that precise problem.

He isn’t the only one, as we at the Guardian learned and reported last summer, when San Francisco Rent Board spokesperson Robert Collins confirmed Tobener’s interpretation of the law and said the agency has already seen several such cases.

As I wrote in “Into Thin Air” on Aug. 6, “Tenants who rent out their apartments for a few days can even lose their rights to reclaim their homes. Collins cited multiple cases where subletters refused to leave and returning tenants had little legal recourse because ‘they would not have a just cause to evict the subtenant because, if they’ve rented the entire unit, they aren’t themselves a resident in the unit.’”

Even in cases where landlords rent out units they own, San Francisco’s 1979 rent control ordinance gives tenants rights to due process from the very beginning, making it difficult to get rid of Airbnb guests who decide to become squatters.

Sure, such a radical response to Airbnb’s impacts on the city may be breaking a few rules and hurting the credit records of those involved — but is that really any worse than the whole host of laws that Airbnb and its customers are violating in San Francisco everyday? It’s at least interesting food for thought. 

UPDATE 2/11: Just to clarify, Tobener isn’t actually advocating or organizing a campaign to squat in Airbnb apartments. This idea was, as I wrote, “food for thought,” something to ponder, a little thought experiment as we try to address Airbnb’s illegal business model and the city’s affordable housing crisis. 

Sue Hestor’s 70th birthday party: “We Shall Overcome.”

110

By Bruce B. Brugmann

Plus: Tim Redmond reports on Sue Hestor and her environmental legacy on his new local  website 48 Hills.org.  

How do you say happy birthday to a San Francisco icon like Sue Hestor?

Some 200 of her friends, allies, pro bono legal clients, political heavies, and fellow warriors against big developers and their pals in City Hall gathered Saturday at Delancey Street for a surprise party to celebrate Sue’s 70th birthday.

When she arrived, she was obviously surprised to find a band playing “We shall overcome” and her friends standing, clapping, cheering, and singing  in admiration for a woman who has spent more than four decades as a citizen activist and attorney fighting for one good cause after another, usually at bad odds against the big guys, often for clients without pay. It was truly a historic moment in the history of San Francisco politics. 

I first knew Sue when she popped up as a feisty volunteer in the Alvin Duskin anti-high rise campaign of the the early 1970s. The Bay Guardian was doing an investigative book, “The Ultimate HIghrise,” on the impact of highrises on the city. She pitched in on the project and was in the book’s  staff photo, jauntily wearing her trademark straw hat, standing next to the hole in the ground for the Yerba Buena Center development.

 We billed a central feature of the book as “the world’s first comprehensive study of the true cost of skyscrapers.” Our research group demonstrated that highrises cost much more in services than they bring back in revenue,  a finding that infuriated the Chamber of Commerce because they could never effectively refute it. We also laid out in detail for the first time the power structure behind pellmell Manhattanizaton, how destructive those policies are, how they shift the tax burden from dowotown to neighborhoods and small business, who profits from them, why there are more muckmakers than muckrakers. Our talented art director Louis Dunn provided brilliant graphics that drove home the damaging points about highrises.

Our conclusion was most prophetic: “The most disturbing finding can’t be quantified–but it should be shouted to the heavens.  It is this: unless the city of San Francisco reverses past practice and immediately enacts an ironclad land-use policy such as Duskin’s proposed height limit, the long scoffed at ‘Manhattanization’ of the entire city is a surefire, 100%-guaranteed inevitability.” 

I like to think this project and its results were a fitting start to Sue’s career in land use litigation and terrorizing big developers, City Hall enablers, and their ever more virulent forms of Manhattanization. 

In the early l990s, I called on Sue again, this time to be the founding chair of the spanking new Sunshine Task Force. It was a new task force formed to enforce the Sunshine Ordinance, which gave citizens the right to make complaints about government secrecy and its tradition of keeping City Hall safe for PG&E, big landlords, and developers etal. The task force would, I knew, drive the bureaucrats nuts and  it thus needed a strong attorney as chair who would be smart enough and tough enough to go up against the city attorney and the crocodiles in the back bays of City Hall.

 The neat thing was that nobody could kick Sue off the task force.  She was one of two members who were “grandfathered” in by the ordinance–an attorney (Sue)  and a media rep (B3) –who were selected by the Northern Chapter of the Society of Professional Journalists, not the supervisors. She performed admirably and got the task force on a firm footing as the first and still the best local open government task force in the country, if not the world. 

Through the years of development battles, it was often Sue and Calvin, Calvin and Sue.  Calvin being Calvin Welch, a crafty environmental and neighborhood strategist who worked with Sue and others in developing counters and initiatives and all kinds of hellish moves to beat or slow down and mitigate development.  He said Sue’s career could be summed up in two words: “cumulative impacts.”  The good thing was that we all knew, when the developers brought up their heavy artillery or their sneaky back alley maneuvers, Sue and Calvin would be there to blow the whistle and take on the fight. Call Sue, call Calvin was the watchword but they usually called us first at the Bay Guardian. 

Let me call now on Tim Redmond, a Guardian reporter who covered Sue and Calvin and the highrise battles from 1982 on, to explain what Calvin meant.  Tim laid out the political points in his piece, “Sue Hestor’s birthday and a lesson in SF environmental history,” on his new local  website “48 Hills.org.”  Read Tim’s first paragraphs for the fun stuff on Sue and the last paragraphs for the really important contributions she has made to the city and urban planning, as explained by Calvin.

As Tim concludes, “In 1964, Hestor, representing San Franciscans for Reasonable Growth, sued and won a stunning decision in the California Court of Appeal mandating that the city start studying the cumulative impacts of development. As Welch noted, ‘there was an obligation for developers to prioritize mitigations.’ That’s where the affordable housing program, the transit-impact fees–and the entire concept of analyzing development on the macro, not the micro level emerged.  That was the idea behind the 1986 measure Prop. M, which included no height limits at all–but did include programs and policies designed to protect neighborhoods from the effects of unlimited growth.” 

Well, the Hestor faithful may not have “overcome” the big developers and their latest monstrous Manhattanization plans.   But they have come pretty damn close. On Sunday, the day after Sue’s party, the Warriors caved on its waterfront project and Matier and Ross did a Chronicle column with the head, “Warriors call for timeout on Waterfront arena plan.” And on Monday, the waterfront warriors marched triumphantly into City Hall and, as the  Chronicle’s John Cote reported,  “turned in more than double the number of signatures needed to qualify a measure for the June 3 ballot that would require voter approval for any development on the San Francisco waterfront to exceed existing height limits.”

That could kill the massively inappropriate project.  “If passed,” the Chronicle continued, “the measure would put a check on high-rise hotels and condo towers along the bay and require voter approval for height increases for three major waterfront development plans, the Golden State Warriors’ proposal for an 18,000-seat arena complex, the San Francisco Giants’ plan for an urban neighborhood on what is their main parking lot and the development of the industrial Pier 70 area.”

Whew! That’s what I call a nifty bit of Hestoring and Calvinizing.   b3

If you don’t like the news, go out and make some of your own. (Wes “Scoop” Nisker on KSAN radio during the dark days of the Vietnam War.) 

(The Bruce blog is written and edited by Bruce B. Brugmann, editor at large of the Bay Guardian.  He is the former editor and co-founder and co-publisher of the Bay Guardian with his wife Jean Dibble, from 1966 to 2012.)

 

 

 

  


 


 




 


 

Residents vs. tourists

64

steve@sfbg.com

Evictions and displacement have become San Francisco’s top political issues, amplified by protests against tech companies that are helping gentrify the city. Yet Airbnb, which facilitates the conversion of hundreds of San Francisco apartments into de facto hotel rooms, has so far avoided that populist wrath.

Tenants use the online, short-term rentals to help make rent in this increasingly expensive city, a point that the company often emphasizes.

“For thousands of families, Airbnb makes San Francisco more affordable,” Airbnb spokesperson Nick Papas wrote to the Guardian by email, citing a company survey finding that “56 percent of hosts use their Airbnb income to help pay their mortgage or rent.”

But it’s also true that Airbnb allows hundreds of rent-controlled apartments to be removed from the permanent housing market — in violation of local tenant, zoning, tax, and other laws — something that has united tenant, landlord, hotel, and labor groups against it (see “Into thin air,” 8/6/13).

“The problem is Airbnb is so easy and attractive that you can take a unit out from under rent control forever,” San Francisco tenant attorney Joseph Tobener told the Guardian.

“We’re getting 15 calls a week on Airbnb,” he said, describing four categories of complaints: landlords evicting tenants to increase rents through Airbnb, tenants complaining about neighbors using Airbnb, tenants being evicted for getting caught illegally subletting through Airbnb, and Airbnb hosts who can’t get guests to leave (city law gives even short-term residents full tenant rights, except in hotels).

There isn’t good public data on how many units are being taken off the market, but Airbnb generally lists well over 1,000 housing units in San Francisco at any given time, with its smaller competitors (such as Roomorama and VRBO) adding hundreds more.

The San Francisco Rent Board listed 326 no-fault evictions (Ellis Act, owner move-in, capital improvement) in its 2012-13 annual report. That number is almost certain to rise in the 2013-14 report due out in March, and it is compounded by an unknown number of buyouts that pressure tenants to voluntarily leave, all of it creating a displacement crisis that has galvanized the city.

“Isn’t it far more likely that more units are being lost [from the rental market] through Airbnb?” San Francisco Magazine recently quoted a UC Berkeley professor as saying in an article questioning whether Ellis Act evictions are really a “crisis.”

So Airbnb is clearly having a big impact on the city’s affordable housing crisis. Yet Airbnb is largely flying under the political radar in its hometown and ducking questions about its impacts.

“Airbnb has all the statistics we need to assess its impacts on the city’s housing market,” Tobener said. The company refuses to disclose such data. Airbnb’s customers need to consider their impacts to the city’s affordable housing crisis, Tobener added, because “there are social consequences to the decisions we make.”

 

STALLED IN LIMBO

Last year I discovered Airbnb was flouting a ruling that it should be paying the city’s 15 percent transient occupancy tax (“Airbnb isn’t sharing,” 3/19/13), a nearly $2 million per year tax dodge.

Yet Airbnb, which has quickly grown from a small start-up into a company worth nearly $3 billion, has some powerful friends in Mayor Ed Lee and venture capitalist Ron Conway, who invests in both Airbnb and Mayor Lee’s political campaigns and committees.

So the company has stonewalled Guardian inquiries for the last year as it has worked with Board of Supervisors President David Chiu on legislation that tries to bring the company’s business model into compliance with local laws. That hasn’t been easy, as Chiu told us.

“It has been difficult to corral the different stakeholders to get on the same page,” Chiu said. “Airbnb has been like unraveling an onion. The more progress we make, the more issues come up.”

Janan New, executive director of the San Francisco Apartment Association, says it shouldn’t be so hard. “They need to enforce the law. They need to collect the hotel tax. They don’t need new laws,” she told us.

While the city is unlikely to simply follow New’s advice, the displacement issue adds another layer to Airbnb’s onion, one that sources say has become an issue of growing concern within the company, which has finally begun to respond to Guardian inquiries.

Those concerns have also been compounded as Airbnb is now being sued by one of Tobener’s clients, Chris Butler, who says he was evicted from his rent-controlled Russian Hill apartment so the landlord could make more money through Airbnb (see “Airbnb profits prompted SF eviction, ex-tenant says,” SF Chronicle, 1/22/14).

“We strongly support rules that keep people in their homes, and the vast majority of Airbnb hosts are regular people just trying to make ends meet,” Airbnb told the Guardian. “Whatever happened in this case, we certainly do not support unscrupulous landlords who evict long term tenants solely to turn their apartments into short-term rentals, but it is important to note that experts have found such cases to be extremely rare.”

Airbnb didn’t respond to our follow-up questions, but those “expert” findings appear to be a reference to a study the company commissioned late last year from Berkeley-based Rosen Consulting Group entitled “Short-Term Rentals and Impact on Apartment Market.”

But that study of Airbnb’s impact to rental housing in San Francisco doesn’t really draw the conclusions that company seems to think and hope it does.

 

MISLEADING NUMBERS

One number that the study and Airbnb have repeatedly sought to highlight is the claim that “90 percent of Airbnb hosts in San Francisco use Airbnb to occasionally rent out only the home in which they live,” as the company put it to us.

“Airbnb users generally do not identify themselves as utilizing short-term rentals as a business. In fact, 90 percent of Airbnb hosts [in San Francisco] indicated that they live in the home listed on Airbnb,” was how the study put it.

“It’s trash. They pick and choose the data they want to share,” Tobener said of the study and the 90 percent figure, which he says was derived from a 2011 user survey before the local housing market exploded. Rosner Consulting told us it stands by the study but won’t discuss it.

The figure also lumped in those with multiple rooms in their homes that have traditionally been rented by local residents and covered by rent-control laws. It also discloses that 10 percent of Airbnb hosts are renting out outside units simply as a business, a figure that has likely risen over the last three years.

The study does disclose that there were 1,576 properties booked through the company in August 2012, which the study notes was just 0.4 percent of the 378,000 homes in San Francisco, which Airbnb uses to dismiss its impacts on the market.

But the study includes only macroeconomic data, rather than looking at the company’s impact on certain socioeconomic groups — such as those making 120 percent or less of median area income, the people being evicted from and priced out of the city — or the supply of rent-controlled housing.

“The average gross income per Airbnb property in the previous 12 months was $6,722, or an average of $564 per month,” the study discloses, choosing to use average rather than median figures even though they’re considered less accurate gauges of income and housing data.

Customers who only use Airbnb once or twice will skew those averages way down. Yet the study then compares that number to the “average market-rate apartment rent in San Francisco, which was $2,498 per month in mid-2013. The average income generated is insufficient to cover monthly rental expenses in full.”

Which tells us nothing about how Airbnb is impacting either rent-controlled housing or the median income San Franciscans who rely on it. According to the US Census Bureau, the median rent in San Francisco was $1,463 in 2012 and 64 percent of San Franciscans rent their homes.

“The study is bullshit,” Tobener said. “They could pull data and tell us how many people are renting full units on Airbnb, but they don’t.”

Yet the company claims that it is concerned about these issues and working with the city.

“We believe our community of hosts should pay applicable taxes and we are eager to discuss how this might be made possible. We’ve reached out to officials in San Francisco and we continue to have productive discussions with city leaders,” Airbnb told the Guardian. “These issues aren’t always easy, but if we work together, we can craft fair, responsible, clear rules that ensure San Francisco continues to benefit from home-sharing.”

Yet neither Airbnb nor its political supporters seem to want to have this public discussion. The company has stopped responding to our inquiries, again, and when we asked the Mayor’s Office about Airbnb’s impacts to the affordable housing market, we got this response and a refusal to directly answer either the original or follow-up questions: “The Mayor has prioritized preserving, stabilizing and growing the City’s housing stock. His policy priorities include protecting residents from eviction and displacement, including Ellis Act reform and stabilizing and protecting at-risk rent-controlled units, through rehabilitation loans and a new program to permanently stabilize rent conditions in at-risk units.”

Yet Airbnb continues to have an impact on those “at-risk rent-controlled units” that few people seem to want to discuss.

Alerts: January 29 – February 4, 2014

0

WEDNESDAY 29

 

“Flying Paper” film screening and discussion Mission Cultural Center, 2868 Mission, SF. www.missionculturalcenter.org. 7pm, $5–$20 sliding scale. “Flying Paper” is the uplifting story of Palestinian children in Gaza on a quest to shatter the Guinness World Record for the most kites ever flown. It showcases the creative resilience of these children despite the difficult realities in their daily lives. The film was co-produced with young Palestinians in Gaza, trained by the filmmakers through a youth media program called Voices Beyond Walls. Featuring a discussion with co-director Roger Hill.

“We are Palestine” film screening ANSWER Coalition Office, 2969 Mission, SF. www.ANSWERsf.org. 7-8:30pm, $5–$10 donation (no one turned away for lack of funds.) “We are Palestinian” was filmed in 1973 and includes an excellent chronology of events leading to the establishment of Israel by using rare historical footage. The film also explains the role of Britain and the US in establishing and supporting the Israeli state, and documents the resistance by the Palestinian people against settlement and expulsion. A discussion will follow the film led by Richard Becker, author of “Palestine, Israel and the US Empire.”

 

FRIDAY 31

International Day of Action Against Corporate Globalization San Francisco Federal Building, 90 Seventh St, SF. www.tradejustice.ca/tpp/jan31. 4:30pm, free. Join a broad coalition of community, environmental and social justice groups in protest against Fast Track and the Trans-Pacific Partnership, a trade deal that has been described as “NAFTA on steroids.” Protesters will meet at Congresswomen Pelosi’s office, then peacefully march to Senator Feinstein’s office at One Post, SF.

 

SATURDAY 1

Una Plaza Para la Comunidad/A Plaza for the Community Sixteenth and Mission BART Plaza. 1-3pm, free. This gathering, hosted by The Plaza 16 Coalition/La Plaza 16 Coalición, is being called to advocate for the use of the 1979 Mission SF site to supply much-needed affordable housing for the neighborhood, as well as more public spaces and a local ecosystem of mom and pop business that can meet the needs of the neighborhood. The coalition feels that the proposed $82 million development with 351 housing units does not meet the need for affordable housing.

SUNDAY 2

What’s happening to City College of San Francisco? Niebyl-Proctor Marxist Library, 6501 Telegraph, Oakl. Gene Ruyle (510) 428-1578. 10:30am-12:30pm, free but donations are welcomed. CCSF has been under extreme pressure from a private accrediting agency that is threatening to close the college. Rick Baum, a part-time instructor of Political Science at CCSF for over 15 years, will give an overview of the current situation that CCSF is facing, and answer questions.

State of the City: spin over substance

5

It was maddening to watch Mayor Ed Lee deliver his annual State of the City address on Jan. 17. This was pure politics, from the staged backdrop of housing construction at Hunters Point Shipyard to the use of “regular people” props to the slate of vague and contradictory promises he made.

“This place, the shipyard, links our proud past to an even more promising future,” was how Lee began his hour-plus, invite-only address.

Later, he touted the housing construction being done there by Lennar Urban as emblematic of both his promise to bring 30,000 new housing units online by 2020 — the cornerstone to what he called his “affordability agenda” — and the opposition to unfettered development that he is pledging to overcome.

“A great example is the place we’re standing right now. This took us too long,” Lee said after decrying the “easy slogans and scapegoating” by progressive activists who place demands on developers.

But that implication was bullshit. As we’ve reported, progressive and community activists have long encouraged Lennar Urban (which has a close relationship to Lee) to speed up development on this public land that it was given almost a decade ago, particularly the long-promised affordable housing, rather than waiting for the real estate market to heat up.

That was just one of many examples of misleading and unsupported claims in a speech that might have sounded good to the uninformed listener, but which greatly misrepresented the current realities and challenges in San Francisco.

For example, Lee called for greater investments in the public transit system while acknowledging that his proposal to ask voters this November to increase the vehicle license fee isn’t polling well. And yet even before that vote takes place, Lee wants to extend free Muni for youth and repeal the policy of charging for parking meters on Sundays without explaining how he’ll pay for that $10 million per year proposal.

Lee also glossed over the fact that he hasn’t provided funding for the SFMTA’s severely underfunded bicycle or pedestrian safety programs, yet he still said, “I support the goals of Vision Zero to eliminate traffic deaths in our city.”

Again, nice sentiment, but one disconnected from how he’s choosing to spend taxpayer money and use city resources. And if Lee can somehow achieve his huge new housing development push, Muni and other critical infrastructure will only be pushed to the breaking point faster.

Even with his call to increase the city’s minimum wage — something that “will lift thousands of people out of poverty” — he shied away from his previous suggestion that $15 per hour would be appropriate and said that he needed to consult with the business community first: “We’ll seek consensus around a significant minimum wage increase.”

But Mayor Lee wants you to focus on his words more than his actions, including his identification with renters who “worry that speculators looking to make a buck in a hot market will force them out.”

Yet there’s little in his agenda to protect those vulnerable renters, except for his vague promise to try to do so, and to go lobby in Sacramento for reforms to the Ellis Act.

Lee also noted the “bone dry winter” we’re having and how, “It reminds us that the threat of climate change is real.” Yet none of the programs he mentions for addressing that challenge would be as effective at reducing greenhouse gas emissions as the CleanPowerSF program that Lee and his appointees are blocking, while offering no other plan for building renewable energy capacity.

Far from trying to beef up local public sector resources that vulnerable populations increasingly need, Lee said, “Affordability is also about having a city government taxpayers can afford.”

Manhattanization revisited

116

joe@sfbg.com

The housing crisis is spurring pro-development arguments that threaten to hasten the “Manhattanization of San Francisco,” a buzzphrase from another era that led to local controls on high-rise development.

The city is getting richer and less diverse, and the unaddressed displacement of longtime residents has fueled populist outrage. Now, politicians are finally getting the message, but some are offering solutions that may reopen old civic wounds.

They say that the answer to the housing affordability crisis is to build massive amounts of new housing, and to build it higher and more densely than city codes and processes currently allow.

Sup. Scott Wiener wrote a scathing indictment of the city’s alleged aversion to housing production in the San Francisco Chronicle on Jan. 13, slamming a planning process that he says slows necessary construction.

“This disconnect — saying that we need more housing while arbitrarily finding reasons to kill or water down projects that provide that housing — is having profound effects on our city and its beautiful diversity, economic and otherwise,” Wiener wrote.

Though he mentioned affordable housing, the need to build all kinds of housing was the crux of his argument. It’s the same kind of developer-friendly rhetoric that whips people into a frenzy with faux common sense: build more, and the market will take care of everyone.

But there are flaws to that simplistic argument. Housing advocates (and Guardian editorials) have long argued that market rate units — the median price of which just surpassed $1 million — don’t trickle down to maintain the city’s economic diversity. More supply may help, but with insatiable demand for housing here, it won’t help much with affordability for the working class.

The next day, Wiener introduced legislation to loosen density requirements when developers build below-market-rate housing units on site, creating an incentive to build more of the units that affordable housing advocates say are most valuable.

“Long term, I’m concerned about young persons that can come here,” he told the Guardian. “It’s not just about building more housing.”

Pushing a pro-development agenda while playing lip service to an affordable housing push is all the rage in San Francisco nowadays, with Mayor Ed Lee calling for building 30,000 new housing units by 2020, supporting the rapid growth calls by SPUR, Housing Action Coalition, and other pro-growth groups.

But Peter Cohen, co-director of the Council of Community Housing Organizations, says supply and demand logic doesn’t apply to the San Francisco housing market for a number of reasons.

He pointed to a paper by CCHO cohort Calvin Welch, who teaches a class on the politics of housing development at USF and SFSU. Welch cites data from the City Controller’s Office showing that when San Francisco increases supply, the market responds by raising the average housing price. Contrary to all the supply and demand claims, when we produce more, things get more expensive.

Why?

“In classic economic theory prices are set by supply and demand only when the market is ‘competitive’ when neither consumers nor suppliers have the ‘market power’ to set the price by themselves,” Welch wrote. “Clearly, that is not the case in San Francisco…of the City’s 47 square miles, only 13 square miles is available for housing uses.”

“There is no ‘free land’ in San Francisco,” he wrote. “The owners have total ‘market power’ over its price.”

But that’s the kind of complex argument that has a tough time penetrating the public consciousness. The idea isn’t as catchy as “supply and demand.”

“I think frankly this whole thing about build, build, build — it’s an easy answer to something that’s complex,” Cohen told us. “It resonates. It sounds like the easy path to sound like you know what you’re talking about.”

That simplistic thinking is dangerous, though, because San Francisco is quickly becoming Manhattanized. Since 2002, New York City Mayor Michael Bloomberg rezoned over 37 percent of New York City, according to The New York Times, causing the construction frenzy many are seeking for San Francisco.

Bloomberg added 40,000 buildings in his time as mayor, but that boom had mixed results. It arguably hastened the Big Apple’s gentrification, especially in Manhattan, one of the few US locales denser than San Francisco.

From 2000 to 2010, Manhattan’s ranks of white people swelled by 58,000. During the same period, the wealthy home of Wall Street lost 29,000 African Americans and 14,000 Latinos. More alarming is the income disparity there.

From 1990 to 2010, the city that never sleeps, and its neighborhoods, increasingly became a land of have and have-nots. Census maps showed that while 1990 Manhattan had economic diversity, now the median income hovers over $75,000 for most blocks of that famous borough.

Articles from the Times and NYC-based housing advocacy organizations frequently describe Manhattan as a haven of wealthy white yuppies. Sound familiar?

San Francisco is quickly following suit. The same census maps that show the swell of wealth in Manhattan show a swell of wealthy folk in San Francisco.

BMR housing set-asides help, and Mayor Lee has promised to ramp up BMR production, calling for about 10,000 units by the year 2020. But any serious increase in housing production carries its own cost in a city where public transit and other vital infrastructure are already underfunded and would need serious new investments.

In his Jan. 17 State of the City speech, Mayor Lee warned against demonizing the tech industry or with pitting one group against another. “San Francisco changes us more than any group of newcomers will change San Francisco,” he said to the invite-only crowd.

The difference now is the wealth that threatens to gentrify San Francisco’s weird soul, the one we’ve hung onto since a man named Joshua Norton declared himself Emperor of the United States and was hailed as a San Franciscan icon.

“Manhattanization” is not just a buzz term or a scare tactic: It’s representative of a specific set of zoning and construction policies that many San Franciscans are now advocating for, which will change the demographics and politics of this city, whether we like it or not.

San Francisco’s chief economist addresses supply and demand in terms of housing — it’d take over 100,000 new housing units to make a dent in housing prices in San Francisco.

State of the City speech filled with unsupported promises

178

It was maddening to watch Mayor Ed Lee deliver his annual State of the City address this morning. This was pure politics, from the staged backdrop of housing construction at Hunters Point Shipyard to the use of “regular people” props to the slate of vague and contradictory promises he made.

“This place, the shipyard, links our proud past to an even more promising future,” was how Lee began his hour-plus, invite-only address.

Later, he touted the housing construction being done there by Lennar Urban as emblematic of both his promise to bring 30,000 new housing units online by 2020 — the cornerstone to what he called his “affordability agenda” — and the opposition to unfettered development that he is pledging to overcome.

“A great example is the place we’re standing right now. This took us too long,” Lee said after decrying the “easy slogans and scapegoating” by progressive activists who place demands on developers.

But that implication was complete bullshit. As we and others have reported, progressive and community activists have long encouraged Lennar Urban (which has a close relationship to Lee) to speed up development on this public land that it was given almost a decade ago, particularly the long-promised affordable housing, rather than waiting for the real estate market to heat up.

That was just one of many examples of misleading and unsupported claims in a speech that might have sounded good to the uninformed listener, but which greatly misrepresented the current realities and challenges in San Francisco.

For example, Lee called for greater investments in the public transit system while acknowledging that his proposal to ask voters this November to increase the vehicle license fee isn’t polling well. And yet even before that vote takes place, Lee wants to extend free Muni for youth and repeal the policy of charging for parking meters on Sundays without explaining how he’ll pay for that $10 million per year proposal.

“Nobody likes it, not parents, not our neighborhood businesses, not me,” Lee said of Sunday meters, ignoring a study last month by the San Francisco Muncipal Transportation Agency showing the program was working well and accomplishing its goals of increasing parking turnover near businesses and bringing in needed revenue.

Lee also glossed over the fact that he hasn’t provided funding for the SFMTA’s severely underfunded bicycle or pedestrian safety programs, yet he still said, “I support the goals of Vision Zero to eliminate traffic deaths in our city.”

Again, nice sentiment, but one that is totally disconnected from how he’s choosing to spend taxpayer money and use city resources. And if Lee can somehow achieve his huge new housing development push, Muni and other critical infrastructure will only be pushed to the breaking point faster.  

Lee acknowledges that many people are being left out of this city’s economic recovery and are being displaced. “Jobs and confidence are back, but our economic recovery has still left thousands behind,” he said, pledging that, “We must confront these challenges directly in the San Francisco way.”

And that “way” appears to be by making wishful statements without substantial support and then letting developers and venture capitalists — such as Ron Conway, the tech and mayoral funder seated in the second row — continue calling the shots.

Even with his call to increase the city’s minimum wage — something that “will lift thousands of people out of poverty” — he shied away from his previous suggestion that $15 per hour would be appropriate and said that he needed to consult with the business community first.

“We’ll seek consensus around a significant minimum wage increase,” he said, comparing it to the 2012 ballot measures that reformed the business tax and created an Affordable Housing Fund (the tradeoff for which was to actually reduce the on-site affordable housing requirements for developers).

But Mayor Lee wants you to focus on his words more than his actions, including his identication with renters who “worry that speculators looking to make a buck in a hot market will force them out.”

Yet there’s little in his agenda to protect those vulnerable renters, except for his vague promise to try to do so, and to go lobby in Sacramento for reforms to the Ellis Act. While in Sacramento, he says he’ll also somehow get help for City College of San Francisco, whose takeover by the state and usurpation of local control he supported.   

“City College is on the mend and already on the path to full recovery,” Lee said, an astoundingly out-of-touch statement that belies the school’s plummeting enrollment and the efforts by City Attorney Dennis Herrera and others to push back on the revocation of its accreditation.

Lee also had the audacity to note the “bone dry winter” we’re having and how, “It reminds us that the threat of climate change is real.” Yet none of the programs he mentions for addressing that challenge — green building standards, more electric vehicle infrastructure, the GoSolar program — would be as effective at reducing greenhouse gas emmisions as the CleanPowerSF program that Lee and his appointees are blocking, while offering no other plan for building renewable energy capacity.

Far from trying to beef up local public sector resources that vulnerable city residents increasingly need, or with doing environmental protection, Lee instead seemed to pledge more of the tax cutting that he’s used to subsidize the overheating local economy.

“Affordability is also about having a city government taxpayers can afford,” Lee said. “We must be sure we’re only investing in staffing and services we can afford over the long term.”

How that squares with his pledges to put more resources into public transit, affordable housing development, addressing climate change, and other urgent needs that Lee gives lip service to addressing is anybody’s guess.