Ellis Act

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Guardian Intelligence: Sept. 24 – 30, 2014

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MASONIC MOONWALK

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

TIFF TAKES

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

DEATH TO CAPITALISM!

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

EXPORTING CYCLETRACKS

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

GLOVER INSPIRES

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

EVICTION PROTECTION

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

TRI-VALLEY POUR-A-THON

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

OPEN SEASON

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

SHADY TRANSIT DEAL

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

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Rising tenant buyouts in SF targeted by new legislation and map

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Racing for solutions

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rebecca@sfbg.com

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

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

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

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

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

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

 

MIX OF CHALLENGES

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

CHANGING NEIGHBORHOOD

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

San Francisco Democratic Party decides on endorsements for November election

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Real estate speculators physically push out Ellis Act eviciton protesters

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Native San Franciscan Benito Santiago, 64, joined a protest Aug. 12 in an attempt to remind his evictors that he’s a human being – not a roadblock to profit.

Santiago is facing an Ellis Act eviction from his 47-year Duboce Triangle home, where his monthly rent is just below $600.

Clad in a stylish blue fedora, Santiago and a dozen or so protesters filed into Vanguard Properties to deliver a letter asking Vanguard co-founder Michael Harrison to rescind his eviction. Harrison initiated an eviction proceeding against Santiago last December through his corporation, Pineapple Boy LLC. But by the end of the protest, Santiago and other tenant activists were physically pushed out of the building by Vanguard representatives in a show of aggression.

Before it got to that point, protesters called out Harrison for exploiting the Ellis Act for profit.

From the letter:

“We do not believe that you, Michael Harrison, are ‘going out of business’ which is the purpose of using the Ellis Act. We know that instead you are exploiting a loophole in state law for your greed.”

Suffice to say, Vanguard representatives didn’t accept the letter. But the message still got across: The protesters brought a bullhorn.

“My name is Benito Santiago,” Santiago blared, standing at the front desk, but was soon interrupted. A young-looking man in a grey suit approached protesters and asked them to leave.

“I’m calling the San Francisco police,” he said. Santiago may have approached the business with a bullhorn, but he has much to lose. 

While Vanguard may perceive Santiago merely as someone who doesn’t offer monetary value, he’s of much value to the developmentally disabled children he teaches at San Francisco Unified School District. 

The protesters intended to make these points to the folks at Vanguard. But before words could be exchanged, a crowd of Vanguard workers (real estate agents or employees, perhaps?) swooped in and physically carried out the protesters.

Fred Sherbun-Zimmer held her protest sign and chanted as one Vanguard agent placed hands on her back and swiftly pushed her out. Peter Menchini, a videographer, held his camera high and away from the snatching hands of real-estate experts turned vigilantes. Poet and activist Tony Robles had a paper slapped out of his hand by a Vanguard employee, before protesters were pushed out in a wave behind him.

Vanguard Properties Employees Assault Photographers & Activists 12 Aug 2014 from Peter Menchini on Vimeo.

 

 

As you can see from the video, things turned downright nasty as the real-estate representatives shoved and pushed the anti-eviction protesters as well as journalists there to document the event. (They even tried to yank my phone out of my hand.)

By the time the SFPD arrived, things had settled down. No arrests were made, and after a few sidewalk declarations by bullhorn, the protesters cleared the scene.

Afterwards, Santiago told us his housing prospects aren’t looking good. The Bill Sorro Housing Program helped him file many affordable housing applications, but he hasn’t gotten any word back yet. The rent he pays now eats up a hefty chunk of his paycheck, leaving little for basic expenses by the end of the month.

“I’m getting lots of positivity from family,” he said. And he does have an extension, until December, to find a new apartment. But, he noted, with median rents almost reaching $4,000 in San Francisco (they’re actually at $3,200, but that’s still bad), his chances of staying in the city are slim.

“I might be bad at math,” he told us, “but that seems like shooting for the moon.”

Vanguard Properties co-founder Michael Harrison was dubbed a “property flipper” by the Anti-Eviction Mapping Project. 

From its brief on Harrison:

Michael Harrison is the co-founder of Vanguard Properties, where he specializes in “residential investment properties.” He is a property flipper: his shell company Pineapple Boy LLC bought the building in November 2013 and tried to evict Benito and the two other tenants immediately. Vanguard Properties is currently involved in a number of luxury property developments in the Mission District and Duboce Triangle area including the development at 19th and Valencia that in February 2014 set record sale prices for the neighborhood. 

Santiago did have some flickering hope when an in-law unit behind a garage next door went on the market for rent. His hope was deflated, though, when his friend told him the rent for the single room.

“Eduardo said, ‘guess how much it is?'” Santiago told us. “It’s going for $4,000 a month.” 

Chinese youth rally for a brighter future

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

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

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

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

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

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

 

Tenants target Airbnb rentals before hearings on regulatory legislation

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

SF bankers now exporting tenant-displacing TIC loans

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

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

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

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

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

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

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

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

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

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

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

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

#TBT: That time we called for California’s break-up

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So another scheme — in a long and rich history of such schemes — is attempting to break California into more digestible parts, and gaining national attention. Venture capitalist Tim Draper’s Six Californias is all but on the ballot, attempting to rechristen the Bay Area as Silicon Valley. Good luck with that! (Although we have to say, it might create the first openly weed-driven state economy — Northern California — which would be fun to see.)

In 2009, we, too, put forth a proposal to split California up — building on an idea from conservative Central California, and echoed in Daily Kos. It was a doozy, but a logical one, with some actual Six Californias affinity.

Our May 27 cover story, written by Rebecca Bowe and Tim Redmond, proposed to split Cali up for better management, representation, and economic/social justice, creating the playfully named states of Greenland, Sierrastan, Pinkostan, Coastland, Palm Sprawl, North Mexico, and Disney. (The accompanying cover, designed by Ben Hopfer and shown above, aped the New Yorker’s famous “New Yorkistan” cover.)  

The cover story itself grew from a Politics Blog post Tim Redmond had written in March of 2009, asking “Should California be split up?” — read the post below. As for creating states, we’ll be dreaming of Puerto Rico …

SHOULD CALIFORNIA BE SPLIT UP?

By Tim Redmond

It’s an interesting question. Nothing new, really — folks up in the northern part of the state have been talking about secession since the 1940s.

But these days, the talk has shifted from North-South to Central Valley-Coast.

There’s plenty of discussion going on — the New York Times
reports on a move by farmers in Visalia, who say those of us in the more liberal western regions don’t understand what it’s like in the center of the state:

Frustrated by what they call uninformed urban voters dictating faulty farm policy, Mr. Rogers and the other members of the movement have proposed splitting off 13 counties on the state’s coast, leaving the remaining 45, mostly inland, counties as the “real” California.

The reason, they say, is that people in those coastal counties, which include San Francisco and Los Angeles, simply do not understand what life is like in areas where the sea breezes do not reach.
“They think fish are more important than people, that pigs are treated mean and chickens should run loose,” said Mr. Rogers, who said he hitched a ride in 1940 to Visalia from Oklahoma to escape the Dust Bowl, with his wife and baby son in tow. “City people just don’t know what it takes to get food on their table.”

A former Assembly member is pushing a vertical split, too :

“Citizens of our once Golden State are frustrated and desperately concerned about the imposition of burdensome regulations, taxation, fees, fees and more fees, and bureaucratic intrusion into our daily lives and businesses,” declares downsizeca.org, the movement’s website.

And all of this comes as reformers form both the left and the right are talking about a new Constitutional Convention.

Athough some of the proponents are clearly nutty, the idea isn’t. As the noted political economist Gar Alperovitz wrote two years ago

The United States is almost certainly too big to be a meaningful democracy. What does “participatory democracy” mean in a continent? Sooner or later, a profound, probably regional, decentralization of the federal system may be all but inevitable.

He was talking about California becoming its own nation, but I’d argue that the same problem applies here. The budget crisis, the gridlock in Sacramento … all of it suggests that maybe California itself is too big to govern. There’s also clear evidence of dramatic regional differences. If you take the Central Valley from about Redding on down, and wrap in Orange County, you have a red state within a blue state where most of the residents say they want lower taxes and smaller government. Along the coast from about Sonoma County down to the southern part of Los Angeles County, you have people who generally would like to see taxes pay for public services. If the coast were a state, we could repeal Prop. 13 and build world-class schools. We’d have same-sex marriage and single-payer health insurance. And we’d still be one of the biggest states in America.

Now, I’m not sure the people in the central valley quite realize the problem with their plans, which is illustrated in this wonderful chart that comes from the office of Assemblywoman Noreen Evans of Santa Rosa (PDF).

The chart shows that the people who dislike and distrust government and don’t want to pay taxes are in fact the beneficiaries of the tax dollars that the rest of us pay. In California, tax money from the coast winds up paying for services in the central valley.

But that’s okay — if they don’t want our money any more, maybe we should tell them we’re fine with that. Maybe we should split the state not just in two but into three: Let the northern counties become the state of Jefferson, where pot will be legal and the residents will be so wealthy from taxes and exports of that cash crop that they’ll make oil-richAlaskans seem like paupers. Pot will be legal in the coastal communities, too, and will generate tax revenue.

We’ll have a Democratic governor, and overwhelmingly Democratic legislature, fewer prisons, better schools, cleaner air, no Ellis Act, rent controls on vacant apartments, more money for transit, strict gun control, support for immigrant rights … and no more of these ugly battles over budgets held hostage by right-wing Republicans.

And in the central valley, they can have their low taxes and conservative values, and watch their roads, schools, and public services go to hell. Maybe eventually they’ll figure it out.

Of course, we’d have to figure out the water rights. The folks in Jefferson would have control over much of the water that now goes South, and there would have to be some long-term water contracts between the states, but that shouldn’t be an insurmountable roadblock.

And the solution would create its own problems; The GOP would control the central state, and would move to abolish the Agricultural Labor Relations Act and make life even more miserable for farmworkers. But then, maybe Jefferson would turn off the water and big agribusiness would be SOL anyway.

As part of the break-up, all parties would have to agree to create a special relocation fund to help lonely, sad liberals from Modesto come west and to help lonely, sad Republicans in San Francisco to move east. I wonder which way the net migration would go.

Meanwhile, Evans has introduced my favorite tax bill of the year, AB 1342, and it’s related to this entire discussion. She wants to allow counties to levy their own income taxes and vehicle license fees. “We went through this difficult process of trying to arrive at a budget,” her spokesperson, Anthony Matthews, told me. “For those communities that have a different view of government [than the Republicans], this bill would let them raise their own taxes to fund their priorities.”

 

San Francisco to provide right to counsel for tenants facing eviction

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OPINION San Francisco is the second most unequal city in the nation. Working and middle-income people and families are being forced to flee the city they love. Between 2010 and 2013, Ellis Act evictions alone increased by 170 percent.

In 2013, a total of 3,662 San Franciscans were served with eviction notices. Over 1,000 of these tenants went to court without lawyers. According to court statistics, 90 percent of landlords hire attorneys, while only 10 percent of tenants have a lawyer. This inequity has made it more difficult for tenants to adequately assert their rights.

To level the playing field, the San Francisco Board of Supervisors Budget and Finance Committee just designated $1 million to fund 10 nonprofit housing attorneys to perform full scope legal services for any tenant facing eviction in San Francisco. We teamed up with tenant rights organizers and attorneys to fight for this budget allocation in order to address San Francisco’s affordability crisis. This funding will ensure that all San Franciscans facing eviction will receive legal assistance if they need it.

Crucial to ensuring economic diversity in this city is protecting our rent-controlled housing stock. Every time a tenant is evicted from his or her apartment, we lose another unit of price-controlled housing that is safe from the current astronomical market rental and sale prices. The board has passed local legislation that helps tenants remain in the city after an eviction, including Sup. Campos’ legislation increasing relocation assistance amounts after an Ellis Act eviction.

However, only the state Legislature has the power to change the law in a manner that would make a large impact on the frequency of evictions. Sadly, last week, Sen. Mark Leno’s bill that would have curbed Ellis Act evictions died in the Assembly Housing Committee. Leno said he will not further pursue the bill this year. Therefore, we must continue to act locally to deal with our housing crisis.

Legal representation for tenants is a crucial part of the fight against displacement. Several academic studies have shown that tenants are five to 10 times more likely to stay in their homes after receiving an eviction notice if they are represented by an attorney throughout the eviction process. Furthermore, having an attorney protects the tenants against abusive practices by landlords.

Tenant advocates report that illegal harassment by landlords is on the rise in an effort to force out tenants without having to resort to the formal eviction process. It is common practice for landlords to attempt to “buy out” tenants by offering a monetary sum to vacate a unit outside of the legal process. Vulnerable tenants, including immigrants and tenants who live in Section 8 housing, are often forced out of their units because they do not understand or assert their rights. Even if the action results in the tenants leaving, an attorney can help tenants avoid having an eviction on their record, which makes it much more difficult for the tenants to rent again.

We are fortunate to have 14 excellent nonprofit organizations in San Francisco that provide no- or low-cost legal services to tenants. However, these organizations have been woefully underfunded and do not have sufficient staff to address this housing crisis. The budget allocation of $1 million to fund 10 additional tenant attorneys will have a profound impact on San Francisco’s housing crisis. It will also make San Francisco one of the first cities in the country to provide a right to legal assistance to tenants facing eviction. Just as the Constitution allows an attorney for a person accused of a crime, a person threatened with the loss of his or her home should have legal assistance. San Francisco can and should lead the way when it comes to providing legal assistance to those tenants who need it.

Public Defender Jeff Adachi and Supervisor David Campos are elected officials in San Francisco.

Taxing speculators

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steve@sfbg.com

Political tensions over evictions, displacement, real estate speculation, and rapidly rising housing costs in San Francisco are likely to heat up through the summer and autumn as a trio of November ballot measures are debated and combated by what’s expected to be a flood of campaign cash from developers and other real estate interests.

Topping the list is a tax measure to discourage the flipping of properties by real estate speculators. Known generally as the anti-speculation tax — something then-Sup. Harvey Milk was working on at the time of his assassination in 1978 — it was the leading goal to come out of a citywide series of tenant conventions at the beginning of this year (see “Staying power,” 2/11/14).

“To be in a position to pass the last thing Harvey Milk worked on is a profound opportunity,” AIDS Housing Alliance head Brian Basinger told us, arguing the measure is more important now then ever.

The measure has been placed on the ballot by Sups. John Avalos, David Campos, Jane Kim, and Eric Mar and is scheduled for a public hearing before the Board of Supervisors Rules Committee on July 10 at 2pm.

“It’s an absolutely key issue for San Francisco right now. Passing this measure will create a seismic shift in what we’re seeing with evictions and displacement in the city,” Sara Shortt, director of the Housing Rights Committee, told the Guardian.

The measure creates a supplemental surcharge on top of the city’s existing real estate transfer tax, a progressive rate ranging from a 24 percent tax on the sale of a property within one year of its purchase to 14 percent if sold between four and five years later.

In addition to levying the tax, the measure would also give the Board of Supervisors the power to waive that tax “subject to certain affordability-based restrictions on the occupancy of the real property,” giving the city leverage to expand and preserve deed-restricted affordable housing.

Meanwhile, there’s been a flurry of backroom negotiations surrounding the City Housing Balance Requirement measure sponsored by Sup. Jane Kim, which would require market rate housing projects to get a conditional use permit and be subjected to greater scrutiny when affordable housing falls below 30 percent of total housing construction (with a number exemptions, including projects with fewer than 24 units).

That measure is scheduled for a hearing by the Rules Committee on July 24 and, as an amendment to the City Charter, it needs six votes by the Board of Supervisors to make the ballot (the anti-speculation tax is an initiative that requires only the four supervisorial signatures that it now has).

Mayor Ed Lee and his allies in the development community responded to Kim’s measure by quickly cobbling together a rival initiative, Build Housing Now, which restates existing housing goals Lee announced during his State of the City speech in January and includes a poison pill that would invalidate Kim’s housing balance measure.

Together, the measures will draw key battle lines in what has become the defining political question in San Francisco these days: Who gets to live here?

 

COMBATING SPECULATORS

In February, Mayor Lee and his allies in the tech world, most notably venture capitalist Ron Conway, finally joined housing and other progressive activists in decrying the role that real estate speculators have played in the city’s current eviction and displacement crisis.

“We have some of the best tenant protections in the country, but unchecked real estate speculation threatens too many of our residents,” Lee said in a Feb. 24 press release announcing his support for Sen. Mark Leno’s Ellis Act reform measure SB 1439. “These speculators are turning a quick profit at the expense of long time tenants and do nothing to add needed housing in our City.”

The legislation, which would have prevented property owners from evicting tenants using the Ellis Act for at least five years, failed in the Legislature last month. So will Lee honor his own rhetoric and support the anti-speculation tax? His Communications Director Christine Falvey said Lee hasn’t yet taken a position on the measure, but “the mayor remains very concerned about real estate speculators.”

Peter Cohen of the Council of Community Housing Organization said Lee and his allies should support the measure: “It seems so clearly aligned with the same intent and some of the same mechanics as Ellis Act reform, which had the whole city family behind it.”

“I think it would be very consistent with their position on Ellis Act reform to support the anti-speculation tax,” Shortt told us. “If the mayor and tech companies went to bat for the anti-speculation tax, and not against it, that would show they have real concern about displacement and aren’t just giving it lip service.”

Conway’s pro-tech group sf.citi didn’t returned Guardian calls on the issue, nor did San Francisco Planning and Urban Research Association, but their allies in the real estate industry strongly oppose it.

“As Realtors, our goals are to increase housing availability and improve housing affordability,” San Francisco Association of Realtors CEO Walk Baczkowski told the Guardian. “We don’t believe the proposal from Sup. Mar, which is essentially a tax on housing, will accomplish either of those goals.”

But supporters of the measure say real estate speculation only serves to drive up housing costs.

“We have been successful at bringing people around on the issue of real estate speculation,” Basinger told us. “But of course, there will be financed opposition. People will invest their money to protect their interests.”

“We know it’s going to be a fight and we’ll have to put in a lot of resources,” Shortt said, adding that it’s a fight that tenant activist want to have. “Part of what fuels all of this [displacement] is the rampant real estate speculation. We can’t put profits above people.”

 

MAYOR’S MEASURE

Falvey denies that Lee’s proposal is designed simply to negate Kim’s measure: “Build Housing Now specifically asks the voters to adopt as official city policy the Mayor’s Housing Plan to create 30,000 new homes by 2020 — the majority within reach of low, moderate, and middle income residents. This is not a reaction, but a proactive measure that lets voters weigh in on one of the mayor’s most important policy priorities.”

Yet the most concrete thing it would do is sabotage the housing balance measure, an intention it states in its opening words: “Ordinance amending the Planning Code to prohibit additional land use requirements such as conditional use authorizations, variances or other requirements on housing projects…based on a cumulative housing balance ratio or other similar criteria related to achieving a certain ration of affordability.”

Beyond that, it would have voters validate Lee’s housing goal and “urge the Mayor to develop by December 31, 2014 a Housing Action Plan to realize this goal.” The measure is filled with that sort of vague and unenforceable language, most of it designed to coax voters into thinking it does more than it would actually do. For example, it expands Lee’s stated goal of 30 percent of that new housing being affordable by setting a goal of “over 50 percent within reach of low and middle income households.”

But unlike most city housing policies that use the affordable housing threshold of those earning 120 percent of area median income (AMI) and below, Lee’s measure eschews that definition, allowing him and his developer allies to later define “middle income households” however they choose. Falvey told us “he means the households in the 50-150 percent of AMI range.”

The measure would also study the central premise of Mayor Lee’s housing policy, the idea that building more market rate housing would bring down the overall price of housing for everyone, a trickle-down economic argument refuted by many affordable housing advocates who say the San Francisco housing market just doesn’t work that way because of insatiable and inelastic demand.

“Within 60 days of the effective date of this measure, the Planning Department is directed and authorized to undertake an economic nexus analysis to analyze the impact of luxury development on the demand for middle income housing in the City, and explore fees or other revenue sources that could help mitigate this impact,” the measure states.

Shortt thinks the mayor’s measure is deceptive: “It’s clever because for those not in the know, it looks like a different way to solve the problem.” But she said the housing balance measure works well with the anti-speculation tax because “one way to keep that balance is to make sure we don’t lose existing rental stock.”

And advocates say the anti-speculation tax is the best tool out there for preserving the rental housing relied on by nearly two-thirds of city residents.

“It’s the best measure we have going now,” Basinger said of the anti-displacement tax. “Mayor Ed Lee and his tech supporters were unable to rally enough support at the state level to reform the Ellis Act, so this is it, folks.”

Supervisors reject Pinterest proposal, protect PDR businesses from eviction

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A spirited hearing before the Board of Supervisors Land Use and Economic Development Committee yesterday [Mon/7] on the San Francisco Design Center’s application for landmark status kept social networking site Pinterest out of the building, for now.

A number of tenants facing eviction from the building appeared before the committee, with a large contingent voicing its opposition and concern over the application and a separate group favoring the proposal for its alleged revitalization of the Showplace Square district.

The proposal — which was tabled by the committee, effectively killing it unless district Sup. Malia Cohen has a change of heart — would have declared the Design Center a landmark, which would have allowed the new owner to get around its Production, Distribution, and Repair zoning and allow in more lucrative office tenants, ostensibly to fund renovations with their higher rents. But with the committee rejected the application, with Cohen in particular expressing concerns about the loss of PDR-zoned properties in her district and around the city.

Prior to the lengthy public comment period, members of Bay West Development, the management firm representing building owner RREEF Property Trust, spoke to the committee about the support that would be put in place for the evicted tenants, conceding, “We recognize the communication with the tenants has not been perfect.”

That support would include relocation funding, lease extensions, and hiring commercial realty brokers for the evictees, according to Bay West. When asked by Chair Scott Wiener how realistic it would be for evicted tenants to stay in the district, Bay West didn’t provide specifics, assuring the committee, “There is good quality space in this district and there are tenants who will find homes in adjacent properties.”

That response didn’t satisfy many worried tenants, including Jim Gallagher, who called the Design Center a “shining example of what PDR services should be.”

Though one speaker mentioned Pinterest’s unfairly negative portrayal in the issue, the overwhelming message from the tenants and Cohen was that the “virtual pinboard” company wasn’t necessarily at fault. Rather, the displacement of longtime residents and the loss of PDR space was the main concern for many.

Former Mayor Art Agnos also made an appearance at the hearing, calling the ordinance a “commercial version of the Ellis Act,” the state law that allows residential building owners to evict tenants. Agnos said the proposed ordinance was “replacing people working in blue and white collar jobs” and urged the committee to “close the loophole, kill it, and come back to the issue.”

Some tenants voiced support for the measure, reasoning the addition of Pinterest—and the elimination of what one supporter called the “exclusivity of high-end design”—would revitalize the district and be the “best of both worlds,” with new and old economies coming together.

But Nancy Morgan, a tenant who was previously evicted elsewhere, opined that displacing the tenants would mean that the same customers wouldn’t continue to come back. She also noted that some would be displaced under the nearby freeway, which could be dangerous in addition to driving away customers, although a Dogpatch resident scoffed at this claim.

Cohen gave her own thoughts, saying she ultimately agreed that the Design Center deserves landmark status because it was “impeccably maintained through the downturn,” but she felt uncomfortable going forward with the plans to displace the longtime tenants. She believed the decision wasn’t necessarily about the designation of the building, and that displacing long-term residents wasn’t in the spirit of the code or the landmark legislation.

“This decision today sets an important precedent,” Cohen said, calling it “an added layer of certainty in a world of uncertainty.”

Solving the housing crisis takes all San Franciscans, even big tech

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By Joseph Tobener

 

OPINION This week, San Franciscans learned that they will not be able to rely on Sacramento to fix the housing crisis. State lawmakers voted down Senate Bill 1439, which would have stopped speculators from using the Ellis Act to evict and convert buildings to upscale offices and TICs. One Assembly Democrat said that San Franciscans were “exaggerating the problem.” That same day, my office received Ellis Act eviction notices for 21 tenants from an artist building at 16th and Mission streets. The building has a new buyer, and it will soon be a high-end commercial space.

I was a tenant rights attorney during the first dot-com boom, and without question, this new housing crisis is much worse. The gentrification is more widespread and permanent. This time around, the evicted teachers, musicians, and artists are not simply moving down the street to smaller units, they are being priced out of San Francisco altogether.

We need to decide now, as San Franciscans, what we want our city to feel like in a decade. Here are five things I believe we need to do now to address the crisis:

1. Collaborate with tech leaders, rather than vilify them. I have been as guilty as the next person in blaming and berating big tech, ignoring the fact that many of my neighbors, clients, and friends are long-time San Franciscans who work in the tech industry. Enough blaming. We need to somehow bring tech to the table to help create large-scale solutions to the housing crisis. It may not be easy to do.

Earlier this year, Marc Benioff, the CEO of Salesforce, criticized tech companies for being “stingy” in giving to their communities, and I have heard nonprofit fundraisers echo this. If true, we need to find out why. On the other side, our healthy anti-corporate, ‘us and them’ mindset, which is deeply rooted in San Francisco’s political tradition, is not serving us in collaboratively addressing the housing crisis.

While there are a handful of high-profile examples of tech workers wrongfully displacing tenants, tech workers are not the real problem. It is true that tech money drives up prices, but the real villains are the predatory speculators who are profiting from our shared crisis. The bottom line is, like it or not, tech is here to stay, and tech leaders have the resources to fund the arts, help our schools, and yes, help us address the housing crisis.

2. Stop illegal mergers of multi-unit buildings into single-family mansions. It is not enough to have regulations in place to prevent mergers. Real estate speculators are merging units surreptitiously, without permits. The Department of Building Inspection needs to actively police projects. And all San Francisco residents need to share in the responsibility of ensuring that speculators are not doing major construction without permits in our neighborhoods.

3. Support legislation to stop landlords from renting their units as hotel rooms. It is estimated that more than a 1,000 units in San Francisco are being rented out full-time for short-term corporate or tourist use. We need a law to get these units back into the permanent housing stock.  

4. Donate to the Community Land Trust and the Community Arts Stabilization Trust. Community land trusts are buying property to permanently preserve residential housing and art space. We need to do more to support these organizations. Other cities do a much better job than San Francisco in partnering with corporations to preserve culture.  

5. Support an anti-speculation tax. Tenant activists have introduced an anti-speculation tax designed to stop real estate flipping. Our office sees the same LLCs flip properties time and time again.

Ultimately it is up to all San Franciscans to embrace this cause if we hope to preserve the diverse and complex character of our city. One thing is sure: We cannot wait to add our voices, or it will be too late.

Joseph Tobener is a tenant rights attorney.

Trying to have hope

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OPINION I get it, as Harvey Milk famously said: “You gotta give them hope.” But how do you do that when the LGBT community you love so much is being priced and evicted out of the city?

When immigrants, people of color, artists, the poor and working-class, people with AIDS, seniors, persons with disabilities, and so many others are being pushed out — like you, Harvey, were forced out of your camera store and apartment on Castro Street when your rent was tripled. Just before an assassin’s bullet took you from us, you were preparing an anti-speculation tax to deal with the rising rents and displacement caused by speculators and real estate investors.

We tried to curb their dirty work via a state bill limiting use of the Ellis Act, but Democrats buckled in to pressure from the real estate industry that owns them. Shame on Democratic House Speaker Toni Atkins from San Diego, an out lesbian, whose inaction on the bill helped kill it.

Our only hope is the anti-speculation tax on the November ballot. Brian Basinger of the AIDS Housing Alliance is calling it the Harvey Milk Anti-Speculation Tax.

The stakes are high right now. Our housing crisis is destroying our community. According to the Anti-Eviction Mapping Project, which tracks displacement throughout the city, District 8 (which includes the Castro) has the highest rate of Ellis Act and Owner Move-In evictions, almost 2,000 units emptied since 1997. That doesn’t include buyouts and threats of evictions, de facto evictions that have pushed out many more, most of them tenants with AIDS. Far too many people with AIDS are homeless in a city that used to be called the “model of caring.”

The motive for these evictions is obvious. A two-bedroom across the street from my Castro apartment rents for $4,200. An apartment above the new Whole Foods at Sanchez and Market can cost you as much as $8,000. A month! I don’t want to upset you, Harvey, so I won’t tell you how high commercial rents are, and how poorly neighborhood businesses are faring these days.

The economic disparity has never been greater. Two Williams Institute studies show that our community is as poor as, and in some instances poorer than, other communities. In our city’s latest homeless count, 29 percent of respondents identified as LGBT and an additional 3 percent as transgender. Other reports say that 40 percent of the city’s homeless youth are queer.

Forget Altoona, that homeless queer kid in the Haight or Castro needs a sense of hope. We have a sit/lie law similar to the one you opposed that prevents these kids from getting subsidized housing if they have an unpaid citation. They sleep in the park because they’re not safe in the shelters. Sadly, Human Rights Campaign and Equality California have never made them — or the poor — a priority.

Cranes and rainbow flags may be all the rage in Upper Market these days, but what’s being built will not be affordable to homeless, poor, or working class (even some middle-class) people. The Castro has only one affordable housing project in the pipeline: 110 units for LGBT seniors at 55 Laguna. Our D8 supervisor and City Hall have let us down big time.

Harvey, I want to think that 10 years from now, our community will still have the Castro as a refuge. I want to believe that poverty, homelessness, and hunger will be greatly reduced. That we can stop the evictions. That we can give young people a piece of the dream. That we can provide seniors a secure place to spend their final days. That we can have elected officials who truly represent us, as you did.

I really want to have hope.

Tommi Avicolli Mecca, a longtime queer and housing rights activist (and an organizer of the first Philadelphia Pride march in 1972), is a grand marshal of this year’s Pride Parade.

Meet the people who are getting forced out of San Francisco

The Anti-Eviction Mapping Project has come out with a number of visualization projects in the past year to document the trend of eviction in San Francisco, where rents have reached absurdly high levels and landlords have a greater incentive to oust longtime tenants.

Last year, the volunteer-based digital storytelling collective published a time-lapse visualization using San Francisco Rent Board data to plot Ellis Act evictions from the late-1990s to the present. It also published the names of landlords who were deemed to be serial evictors.

The collective’s latest digital storytelling project, a crowd-sourced map plotting narratives of displacement, goes beyond just data. Co-collaborators enter into longtime tenants’ homes, gaze into their lives, and dive into personal histories. The result is a tapestry of stories about the human beings who are departing from San Francisco due to eviction.

Much of the rhetoric around displacement trend and the lack of housing affordability in San Francisco has revolved around the idea of an endangered “soul of the city.” But that’s not an easy thing to conceptualize: How do we imagine the “soul” of a densely developed peninsula that’s home to more than 800,000 people, many with ties to far-flung nations, bound by city blocks and urban infrastructure?

This project might help define what’s meant by that “soul,” by describing San Francisco through the lens of individual experience. Yasmin (a former San Franciscan who now lives in Oakland) expresses nostalgia for the days when she would regularly encounter queer women on the corner of 19th and Valencia. Stewart (who was displaced from his home in the Castro, but was able to find new housing there) describes his initial arrival to San Francisco, at a time when the AIDS epidemic was in full force. Nancy (who was evicted from Folsom and Cesar Chavez) describes how people in her Mission neighborhood stopped making eye contact as the character, class, and aesthetic of the area changed.

Displacement can affect residents who are being forced out, or those who are in San Francisco to stay – and the project organizers have invited anyone to contribute. People can post to the website directly, using the geolocation function to tag the place they want to focus on. According to a notice sent out by the Anti-Eviction Mapping Project team, “this platform is intended for anyone to upload any story or anecdote that they observe or experience around gentrification. It does not have to be a loss of a home, though it could be.”

People who want to take part in the storytelling project can email narrativesofdisplacement@in.crowdmap.com, or send an SMS to 1-772-200-4233 with *narrativesofdisplacement in the message.