Mark Leno

End mass incarceration

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EDITORIAL We at the Bay Guardian wholeheartedly support the Stop Mass Incarceration Network and its call for the month of October to be “a month of resistance to mass incarceration, police terror, repression, and the criminalization of a generation.” It’s time to rediscover our humanity, redirect our resources, and invest in this country’s underclass instead of attacking it.

The United States has the highest incarceration rate in the world, 717 per 100,000 citizens last year, or about 2.3 million people behind bars. Put another way, the US has about 5 percent of the world’s population but 25 percent of the world’s prisoners, costing this country over $60 billion a year.

San Francisco has long been a leader in criminal justice reform, pursuing policies based on rehabilitation and redemption instead of the mindless “tough-on-crimes” approach of other jurisdictions. Two of our state legislators, Sen. Mark Leno and Assemblymember Tom Ammiano, have chaired their respective Public Safety Committees and been important statewide leaders on prison reform.

Yet it hasn’t been enough in a state that still has among the world’s highest incarceration rates, and which is still resisting demands by federal judges that we reduce our prison population to address severe overcrowding and its unconstitutionally inadequate health care system.

So we need to join this broad and growing national movement that seeks to drastically reduce our prison population and redirect those resources into social services, education, and other more productive pursuits.

The Stop Mass Incarceration Network began in 2011 with a proclamation by Carl Dix and Cornell West, two important thinkers who have highlighted the disproportionately high arrest and incarceration rates of Latino and African American young men.

“If you don’t want to live in a world where people’s humanity is routinely violated because of the color of their skin, JOIN US. And if you are shocked to hear that this kind of thing happens in this so-called homeland of freedom and democracy — it does happen, all the damned time — you need to JOIN US too — you can’t stand aside and let this injustice be done in your name,” they wrote.

Recently, this movement has been joined by a wide variety of activists from the Bay Area, including Van Jones and Matt Haney, who have co-founded #50Cut, an initiative focused on cutting the US prison population in half in the next 10 years (see “Schools not prisons,” 9/3/14).

While dissident Chinese artist Ai WeiWei laudably uses his new exhibit on Alcatraz Island to focus attention on political prisoners and prisoners of conscience, the injustice of incarceration here in the US is even broader and deeper, affecting entire generations of young people and their families. It must end.

 

The back story of the celebrated Boys’ Night Out at John’s Grill

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By Bruce B. Brugmann (Scroll down for photo id and to see Ex- Marine Pete McCloskey jump the barricade and storm Martin’s Beach) 

Boys’ Night Out, a creation of press agent Lee Houskeeper, was held recently at John’s Grill, home of Dashiell Hammett and the Maltese Falcon.   Houskeeper turned the falcon on its side, which meant that all of the news and gossip turned up by his newsworthy guests was privileged and could not be repeated to the outside world.

Nonetheless, the timing was perfect because the next day came the welcome news that a San Mateo Superior Court judge had ruled for the public and against a  billionaire coastal landowner to open up a valuable chunk of privately held San Mateo coastline. The Surfrider case was handled by  Attorneys Joe Cotchett and Pete McCloskey, both of whom were at the dinner.

Houskeeper, who does publicity work for Cotchett,  explained the back story to me after the dinner. He said that the Surfrider forces started “the public brouhaha” two years ago when the “Blackwater type security goons were arresting surfers who dared jump his locked Martin’s Beach gate fence.”  Vinod Khosla, a Silicon Valley venture capitalist, had acquired the 53-acre parcel near Half Moon Bay in 2008. Houskeeper asked McCloskey, a Korean War veteran,  if he would risk arrest, jump the gate, and lead the surfers a half mile to “free” the beach.

“The former Marine (Silver Star, Bronze Star, Navy Cross and two Purple Hearts did just that at 85 years old,” Houskeeper said. 

“Six sheriff cop cars showed up and decided to protect Pete’s right to march to the beach. That action effectively stopped Khosla from arresting any more surfers.” And it was yet another victory for McCloskey, an environmenrtal hero as a fighting attorney, 16 year peninsula congressman, and the politician who beat Shirley Temple for Congress and then ran against Nixon in the Republican primary for president.  McCloskey was 87 on Sept.29. 

In the above photo, Cotchett is in the middle in the back row. McCloskey is sitting in the second row in suit and tie on the right between Houskeeper and Ron Turner.  Others in the picture in no particular order are listed below.  The photo was taken by Robert Altman, official photographer at  Boys’ Night Out events. b3

Ex-Marine Pete McCloskey jumps the barricade…

…and leads the charge of surfers to free Martin’s Beach. This was the key assault in the winning battle to save the beach.  Photos by San Francisco Stories 

Wavy Gravy, Joe Garrity, Greg Corrales, Joe Cotchett, Pete McCloskey, Mark Leno, Ron Turner, Bruce Brugmann, Don Sanchez, Al Saracevic, Bob Sarlatte, Michael Finney, Don Sanchez, Peter Albin, Kevin Fagan, Joe Rosato Jr., Alex Clemens, Gene Schoenfeld, Mark Matthews, Jonathan Bloom, Herb Gold, Tony Ribera, Rich Corriea, J.C. Juanis, John Marshal, Tomas Roman, Paul Wells, Phil Gregory, Paul Alvarado, Larry Kamer, Fred Pardini, David Ebarle, Jim Huntington, Marc Vogel, Rob Caughlan, Rod Glaubman, Robert Altman, Eric Christensen, Michael Taylor and Jack Balentine

Voters still in the dark on campaign funding

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A legislative attempt to shed light on major funders of political campaign ads died in Sacramento last week, and the politics surrounding its demise reflect a split between groups who are normally allies on the left.

The California DISCLOSE Act — which stands for “Democracy is Strengthened by Casting Light on Spending in Elections” – needed a two-thirds vote to pass both houses of the California Legislature, but ended up being withdrawn without ever being brought to a vote.

The bill would have required the three largest funders of television and print ads, as well as the two largest funders of radio ads and robocalls, to be clearly identified in ballot measure ads. It sought to close a loophole allowing funders to disguise themselves behind ambiguous committee names.

Trent Lange, president of the California Clean Money Campaign, said it would have prevented similar scenarios to what happened with Proposition 32 in 2012. In that case, voters remained in the dark on who the true funders were when an Arizona nonprofit calling itself “Americans for Responsible Leadership” funneled $11 million into a committee supporting the ballot measure, which would have restricted unions’ ability to raise campaign funding.  In reality, the money could be traced back to the notorious right-wing Koch Brothers but this was never evident in print, radio, or television ads.

Support for the CA DISCLOSE among Californians was substantial – 78,000 people signed petitions urging the Legislature to pass it, according to the California Clean Money Campaign, and 400 organizations statewide backed it. A poll conducted by the Public Policy Institute of California in March of 2013 reflected 84 percent voter support for increasing disclosure on ballot measures.

Nevertheless, it lacked momentum to even be brought to a vote in Sacramento. Support for approval in the Legislature was reportedly building until opponents lobbied against it. Said opponents were strange bedfellows indeed, consisting of the Howard Jarvis Taxpayers’ Association, a right-wing organization that opposes all taxes on Californians, and a trio of powerful forces in labor, including SEIU California, the California Teachers Association, and the California Labor Federation.

“Organized labor significantly and very strongly opposed it and worked to kill it,” Lange said. “Their opposition said they were opposed to technical details of the bill [and requirements for] finding the original funders – they opposed giving the FPPC that much power. It’s not clear that’s the real answer.”

A call to SEIU to ask why it lobbied against the DISCLOSE Act was not returned by press time.

Sen. Mark Leno, who co-authored the DISCLOSE Act, along with Sen. Jerry Hill and Assembly Speaker Toni G. Atkins, vowed to continue the fight next year.

“I am disappointed we weren’t able to send this legislation to the governor this year, but in this process, an even stronger coalition has emerged to keep the issue and movement alive,” Leno said in a press release. “I look forward to working with Speaker Atkins, Senator Hill and the California Clean Money Campaign as we redouble our commitment to finding common ground that will ultimately prove successful for this cause, which is so fundamental to our democracy.”

Guardian Intelligence: September 3 – 9, 2014

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CASTRO CURTAIN CALL

If your favorite thing about seeing movies at the historic Castro Theatre is hearing the score for that Charlie Chaplin short played on the instrument that would’ve been used when the film actually came out — well, get thee to the movies, and fast. The Castro Theatre’s famous Wurlitzer organ is being sold by its current owner, and will be replaced early next year with an elaborate, one-of-a-kind digital console, with seven keyboards and more than 800 stops, designed by acclaimed organ creator Allen Harrah — pro bono. One trade-off: We’re guessing this will be better for scoring alien movies than its analog counterpart?

THEFT TIMES TWO

It’s a drag to have your car stolen. But if the vehicle is recovered, the high fees you may fork over to get it back only add insult to injury. In San Francisco, police give the owner of a recovered stolen vehicle 20 minutes to retrieve it before sending the car to impound. That’s where the costs add up. Worst-case scenario? The fees rise above the value of the car, and it gets auctioned off. Sup. Scott Wiener has called for a hearing to review the city’s towing policies with respect to stolen cars. The company that operates the city’s impound lot, AutoReturn, is due for contract renewal next year.

TAG, YOU’RE IT!

The neighborhood some call “upper Safeway” has gotten some negative attention lately, but the Friends of Duboce Park Tag Sale — back for its 17th year — is perfectly timed to recharge the area’s community spirit. Last year’s event was hit with an unexpected deluge, so hope for sunny skies Sat/6 and head to the ‘hood’s collective backyard from 9am-2pm for shopping (bargains galore on household items, clothes, sports equipment, books, and more!) and hob-nobbing, with all proceeds going toward improvements to Duboce Park, including its playground. www.friendsofdubocepark.org

SWEET TRIBUTE

Former SF clubkid (now renowned LA artist) Jason Mecier is famed for his celebrity portraits done with junk food and trash — and his tribute to Robin Williams is gaining attention. “It’s Robin Williams as Mrs. Doubtfire, with a Patch Adams nose and a Flubber green background,” Mecier says. “This portrait took over 30 hours to make and is comprised of thousands of candy pieces including Red Vines, Black Licorice, gum balls, Jelly Bellies, Jelly Beans, Tic-Tacs,Gum Drops, Gummy Bears, Sixlets, Mike and Ike’s, Hot Tamales and others. I’ve always wanted to do a portrait of him combining all of his most popular roles. Unfortunately, now was the time to do it.” www.jasonmecier.com

CYCLE UP

San Francisco-style cycletracks — bike lanes physically separated from automobile traffic — could proliferate in cities throughout California under a bill approved today [Fri/29] by the Legislature, provided Gov. Jerry Brown decides to sign it. Assembly Bill 1193, the Protected Bikeways Act, by San Francisco Democrat Phil Ting, was approved today by the Assembly on a 53-15 vote after clearing the Senate on Monday, 29-5. The bill incorporates cycletrack design standards into state transportation regulations, which had previously stated that such designs weren’t allowed. In other bike news, the SF Bicycle Coalition announced that a plan was approved to bring a raised bikeway to Valencia between Cesar Chaves and Duncan Streets next year, creating a buffer between drivers and cyclists.

VOTERS IN THE DARK

Proposed legislation to shed light on who’s bankrolling political campaign ads has been stalled for now. The DISCLOSE Act — which stands for “Democracy is Strengthened by Casting Light on Spending in Elections” — needed a two-thirds vote to pass both houses of the California Legislature, but lacked support. It would have required funders of TV, print, and radio ads, and robocalls, to be clearly identified by closing a loophole that allows them to be disguised by ambiguous committee names. Sen. Mark Leno and other cosponsors vowed to continue the fight next year.

ZOOBORN

On Aug. 26, the SF Zoo welcomed rare newborn twin male giraffes — unfortunately one was too weak to survive, but the other little fellow is doing fine at 100 pounds and 5’6″ tall. The calf’s mother is 11-year-old Bititi, who was born at the Oakland Zoo and made the journey across the bay to live at the San Francisco Zoo in 2005. The father is 12-year-old Floyd, who was born in Albuquerque at the Rio Grande Zoo. We’re looking forward to the naming contest. www.sfzoo.org

PARK ARIAS

One of our favorite picnic singalongs (and “try-to-singalongs”) is coming, as SF Opera’s Opera in the Park hits Sharon Meadow in Golden Gate Park, Sun/7 at 1:30pm. On the menu? Mozart’s Don Giovanni Overture, Puccini’s “Nessun dorma” from Turandot, and Leoncavallo “Vesti la giubba” from Pagliacci. (You may not know the titles but you’ll recognize the tunes.) Pack a flask of wine and pray for sunshine. www.sfopera.org.

GORGE YOURSELF

The Asian Arts Museum’s “Gorgeous” show (through Sept. 14) is a sugar rush of centuries’ worth of crowd-pleasing art hits, including everything from Jeff Koons’ infamous porcelain portrait of Michael Jackson and pet monkey Bubbles to breathtaking ancient Chinese paintings. The show, produced in partnership with SFMOMA, provides a great introduction to art history for our ADD age; more experienced types will appreciate the chance to linger before Mark Rothko’s “No. 14, 1960” alongside works from artisans of other eras. www.asianart.org

 

The last Republican

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steve@sfbg.com

BART Director James Fang is San Francisco’s only elected official who is a registered Republican, yet over the last 24 years, he has somehow managed to easily win election after election in a city dominated by the Democratic Party, often with the endorsements of top Democrats.

But this year, Fang is facing a strong and well-funded challenge from investor and former solar company entrepreneur Nicholas Josefowitz, a Harvard graduate in his early 30s. Thanks in part to support from the tech community — Lyft cofounder Logan Green is one of several prominent figures in tech to host fundraisers for him, according to Re/Code — Josefowitz has managed to amass a campaign war chest of about $150,000.

Josefowitz has also secured some key political endorsements, including from Sups. John Avalos, Eric Mar, and Scott Wiener, BART Director Tom Radulovich, former SF Mayor Art Agnos, and the Sierra Club.

After Josefowitz sold his solar company, RenGen, almost two years ago, “I got more and more involved in sustainable community advocacy,” he told us. “Then the BART strike happened and I was like, wow, this shouldn’t be happening.”

Josefowitz cited BART’s history of worker safety violations, last year’s unnecessarily divisive labor contract negotiations, the district’s massive deferred maintenance budget, property devoted to parking lots that could be put to better uses (he sees potential there for real-estate development), corrupt cronyism in its contracting, and lack of cooperation with other transit agencies as problems that urgently need correcting.

Fang is being challenged by well-funded Democratic newcomer Nicholas Josefowitz.

“BART does a terrible job at coordinating with other transit agencies,” Josefowitz told us, arguing the transit connections should be timed and seamless. “James has been there for 24 years, and if he was going to be the right guy to fix it, then he would have done it by now.”

But perhaps Josefowitz’s strongest argument is that as a Republican in liberal San Francisco, Fang’s values are out-of-step with those of voters. “Why is someone still a Republican today? … He’s a Republican and he’s a Republican in 2014, with everything that means,” Josefowitz told us. “He hasn’t been looking out for San Francisco and he’s out of touch with San Francisco values.”

We asked Fang why he’s a Republican. After saying it shouldn’t matter as far as the nonpartisan BART board race is concerned, he told us that when he was in college, he and his friends registered Republican so they could vote for John Anderson in the primary election.

“Some people feel the expedient thing for me to is switch parties,” Fang said, but “I think it’s a loyalty thing. If you keep changing … what kind of message does that send to people?”

Fang said he thought the focus ought to be on his track record, not his political affiliation. It shouldn’t matter “if it’s a black cat or a white cat, as long as it catches mice,” he said. He pointed to programs such as seismic upgrades, completing the BART to the airport project, and instituting a small-business preference for BART contractors as evidence of his strong track record. “I’m a native San Franciscan — I’ve gone through all the public schools,” Fang added. “It’s very important to get people from a San Francisco perspective and San Francisco values.”

Josefowitz supporters say he has perhaps the best shot ever at defeating Fang, largely because of his prodigious fundraising and aggressive outreach efforts on the campaign trail. “He is doing all the things that someone should do to win the race,” Radulovich, San Francisco’s other longtime elected representative on the BART board, told us. “There’s a lot of unhappiness with BART these days.”

But in an interesting political twist, Fang has the endorsement of Service Employees International Union Local 1021, a champion of many progressive causes in San Francisco, after he walked the picket line with striking BART employees last year and opposed the district’s decision to hire a high-priced, union-busting labor consultant.

“It’s a priority for us to elect Fang,” SEIU 1021 organizer Gabriel Haaland told us. “When we needed him on the strike, he walked our picket line.”

SEIU Political Chair Alysabeth Alexander sounded a similar note. “In the middle of one of the most important and highest-profile labor fights in the nation, when two workers had to die to prove that safety issues were the heart of the struggle, Fang was the only board member who took a position for safety,” she said. “Every other member shut out the workers and refused to acknowledge that serious safety issues put workers lives at risk every day. If more BART Board members has the courage of Fang, two workers would be alive today.”

BART got a series of public black eyes last year when its contract standoff with its employees resulted in two labor strikes that snarled traffic and angered the public. Then two BART employees were killed by a train operated by an unqualified manager being trained to deliver limited service to break the strike, a tragedy that highlighted longstanding safety deficiencies that the district had long fought with state regulators to avoid correcting. Finally, after that fatal accident helped force an end to the labor standoff, BART officials admitted making an administrative error in the contract that reopened the whole ugly incident.

“One of the things that really opened my eyes in this labor negotiation is that often we get told things by management, and we just assume them to be true,” Fang said, noting that he’d questioned the agency’s plan to run train service during last year’s strike.

Yet Josefowitz said the BART board should be held accountable for the agency’s shortcomings in dealing with its workers. “It starts with having a genuine concern over worker safety issues, and not just at bargaining time,” he said. “If the board had acted early enough, that strike was totally avoidable.”

Indeed, BART’s decisions that led to the tragedy have been heavily criticized by the National Transportation Safety Board, California Division of Occupational Safety and Health, and the California Assembly Committee on Labor and Employment.

Fang also has the support of many top Democrats, including Attorney General Kamala Harris, US Rep. Nancy Pelosi, and former state legislator and current Board of Equalization candidate Fiona Ma, who told us: “I have endorsed one Republican in my political history, and that is James Fang for BART Board.” Noting that Josefowitz “just moved here,” Ma said, “The BART system is one of our jewels, and I don’t think we should elect first-time newcomers in San Francisco to manage it.”

Radulovich said he was mystified by prominent San Francisco politicians’ support for Fang, saying, “In this solidly Democratic town, this elected Republican has the support of these big Democrats — it’s a mystery to me.”

One reason could be Fang’s willingness to use newspapers under his control to support politicians he favors, sometimes in less than ethical ways. Fang is the president of Asian Week and former owner of the San Francisco Examiner, where sources say he shielded from media scrutiny politicians who helped him gain control of the paper, including Willie Brown and Pelosi (see “The untouchables,” 4/30/03).

But political consultant Nicole Derse, who is working on the Josefowitz campaign, told us that she thinks support for Fang among top Democrats is softening this year, noting that US Sen. Dianne Feinstein and state Sen. Mark Leno haven’t endorsed Fang after doing so in previous races.

“[Fang] has longstanding relationships with folks, but Nick is challenging people in this race to stop supporting the Republican,” Derse told us. “It’s now up to the Democratic Party and it’ll be interesting to see what they do.”

She was referring to the San Francisco Democratic County Central Committee, which plans to vote on its endorsements on Aug. 13. While DCCC bylaws prevent the body from endorsing a Republican, Ma and other Fang allies have been lobbying for no endorsement in the race, which would deny Josefowitz a key avenue for getting his name and message out there.

“This is going to be one of the most expensive races in BART’s history. He will kill me on money,” Fang said of Josefowitz. He suggested that his opponent’s candidacy underscores tech’s growing influence in local politics, and urged voters to take a closer look. “People are saying oh, it’s all about Fang. What about this gentleman?” Fang asked. “Nobody’s questioning him at all.”

Derse, for her part, noted the importance of having a well-funded challenge in this nonpartisan race. “It allows him the resources to get his message out there,” she said of Josefowitz. “Most San Franciscans wouldn’t knowingly vote for a Republican.”

 

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.”

Transportation funding faces key test after Mayor Lee flips on VLF increase UPDATED

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Facing a deadline of tomorrow’s [Tues/10] San Francisco Board of Supervisors meeting to introduce measures for the November ballot, advocates for addressing the city’s massive long-term transportation funding gap still hope to introduce an increase in the local vehicle license fee, even though the once-supportive Mayor Ed Lee has gotten cold feet.

While Lee and all 11 of the supervisors support a $500 million general obligation bond that would mostly go toward capital improvements for Muni — a measure almost certain to be approved by its July 22 deadline — the local VLF was originally presented by Lee as a companion measure to fund Muni, street resurfacing, and bike and pedestrian safety improvements.

But when Lee got spooked by a poll in December showing 44 percent voter approval for increasing the VLF and the need to actually do some campaigning for the measure, he withdrew his support and left cycling, streets, and safety all severely underfunded. A report last year by the Mayor’s Transportation Task Force pegged the city’s transportation infrastructure needs at $10.1 billion over 15 years, recommending just $3 billion in new funding to meet that need, including the embattled VLF measure.

“It’s important for us to move forward with the local VLF,” Sup. Scott Wiener, who has taken the lead on ensuring local term transportation funding, told the Guardian. “If this is not the right election, then we have to say which election we will move this forward.”

But so far, Wiener hasn’t gotten a commitment from the Mayor’s Office, with which he says he’s still in active talks. The Mayor’s Office also hasn’t returned Guardian calls on the issue. If Wiener doesn’t get an assurance that the VLF will go before voters, then he says that he’ll push another fall ballot measure that he introduced May 20, which would increase the city General Fund contribution to Muni as the population increases, retroactive to 10 years ago (thus creating an initial increase of more than $20 million annually).

“It would be in lieu of the VLF, not in addition to it,” Wiener said the rival measure, noting that he prefers the local VLF, a stable and equitable funding source that wouldn’t cut into other city priorities. [UPDATE 6/10: Wiener said he received a commitment from Lee to place the VLF increase on the 2016 ballot, so he is dropping his measure to increase Muni funding as the population increases].

Sen. Mark Leno spent about 10 years winning approval for the authorizing state legislation that authorizes San Franciscans to increase the VLF, enduring two governors’ vetoes along the way before getting Gov. Jerry Brown to sign it into law last year.

Wiener notes that the measure would increase the VLF in San Francisco to 2 percent, restoring it its longtime level before Arnold Schwarzenegger used a VLF reduction as a campaign issue to get elected governor, slashing it to 0.65 percent in 2003.

“That action by Gov. Schwarzenegger has deprived California of about $8 billion per year,” Wiener told us. “This is not some newly minted fee, it restores the VLF to what it was going back to the ‘50s.”

San Francisco Bicycle Coalition Director Leah Shahum said she was disappointed that Lee didn’t follow through on his commitment to fund bike and pedestrian safety improvements through the local VLF, but she said there is wide support on the board for the measure.

“Tomorrow is the big day, but we’re hearing real strong support for the measure,” Shahum told us. “I feel strongly there will be eight supervisors committed to introducing the measure.”

That two-thirds vote threshold is part of the legislation that enabled San Francisco to increase its VLF, but Shahum said she believes there is that level of support on the board for doing the VLF increase this year, which the SFBC would actively campaign for.

“The whole idea was these things would go as a package,” Shahum told us. “This is a huge deal for us. Give the voters a chance to vote for safe and smooth streets.”   

Lee’s abandonment of the VLF comes in the wake of his SFMTA appointees’ repeal of Sunday parking meters, which Lee said was driven by a desire to win over car-driving voters for his transportation measures. Last month on Bike to Work Day, Lee and other city officials also touted the measures as important for bike project, although Shahum said the general obligation bond does little for cyclists, except for an allocation for renovating Market Street. 

“There is not a desigination for bike safety and infrastructure, that was goign to be all in the VLF measure,” Shahum said. 

Wiener cited the long road that Leno traveled to give San Franciscans that opportunity as a reason to move forward with increasing the VLF, a progressive tax that charges more for luxury cars than old beaters used by the working class, but Leno was a bit more circumspect about the situation.

“If it taught me anything, it’s patience,” Leno told us about the long road to let San Francisco authorize a higher VLF. “As with anything in the world, timing is everything.”

Leno said support from labor, the business community, and all of City Hall’s top leaders are all necessary to win voter support for increasing the VLF, so it’s crucial that everyone is enthusiastically on board. “I think we may only have one shot, so when we go to the ballot, we need to have our coalition intact.”

Without commenting on the wisdom of delaying the vote this year, Leno said that if that happens, it’s crucial to get everyone to commit to passing it in 2016, a position Wiener also supports.

“There are times when we need to have a long view,” Leno told us. “But one way or the other, we have to get serious about identifying dedicated revenue to invest in Muni or we will all pay a serious price.”

 

To participate in a public forum on this and related matters, please join us this Thursday evening for “Bikes, Buses, & Budgets: How to create the transportation system San Franciscans needs.” This Bay Guardian community forum, from 6-8pm at the LGBT Center (1800 Market), will feature Wiener; SFBC community organizer Chema Hernandez Gil; Jason Henderson, an urban geography professor at SFSU who writes the Guardian’s monthly Street Fight column; and others, moderated by yours truly. It’ll be fun, informative, and one lucky attendee will leave with a A2B electric bike as part of a free raffle at this free event.    

Supervisors outfox landlords on eviction compensation measure UPDATED

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When the San Francisco Board of Supervisors gave final approval yesterday [Tues/15] to legislation that would substantially increase the payments landlords are required to give tenants they evict using the Ellis Act, the supervisors made a key change designed to counter a recent eviction push by landlords.

The legislation, approved on a 9-2 vote with Sups. Mark Farrell and Katy Tang opposed, increases the current required relocation payments of $5,265 per person or $15,795 per unit (plus an additional $3,510 for those with disabilities or over age 62) up to the equivilent of two years rent for a comparable unit, which means tens of thousands of dollars.

For example, the Controller’s Office calculates that a family evicted from a two-bedroom apartment in the Mission District where they pay $909 per month would be entitled to $44,833 in relocation costs.

The legislation was originally scheduled to go into effect 120 days after passage in order to give city officials enough time to implement it. But after sponsoring Sup. David Campos heard that landlords were rushing to evict tenants before those fees went up, he checked in with the City Attorney’s Office and other departments to see whether they could be ready sooner. And after getting the greenlight, he amended  the measure yesterday to go into effect 30 days after it’s enacted into law.

The question now is whether Mayor Ed Lee, who has not taken a position on the legislation, will act quickly to sign it. He has 10 days to decide, and given that the legislation was approved by a veto-proof majority, the question is really whether the mayor will support stalling the inevitable, thus encouraging more evictions at lower levels of relocation assistance.

But Mayor Lee has publicly touted his concerns about the eviction epidemic and support for Sen. Mark Leno’s Ellis Act reform legislation, SB1439. So I’m sure Lee is warming up his pen and preparing to sign the measure as I write this, right? We’ve got a message into his office with that question and I’ll update this post when we hear back.

UPDATE 4/18: Christine Falvey, the mayor’s press secretary, just finally responded to our inquiry and said, “The Mayor is reviewing and considering this legislation. I will keep you updated.” Apparently, he doesn’t feel the same sense of urgency that supporters of the measure feel. 

UPDATE 5/6: Mayor Lee waited 10 days and then allowed the measure to become law without his signature. 

SEIU-backed initiatives seek to cap healthcare costs and executive pay

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Health care costs are skyrocketing across the country, but two proposed ballot initiatives in California are aiming to rein in health care spending, which the Centers for Disease Control estimates at $2.6 trillion annually nationwide. Both measures are currently gathering signatures to be placed on the November ballot.  

Service Employees International Union authored the Charitable Hospital Compensation Act (CHCA) and the Fair Healthcare Pricing Act (FHPA), which are designed to directly deal with the high costs at nonprofit hospitals. CHCA seeks to cap the salary for executives at  nonprofit hospitals at $450,000 a year, the same salary as the President of the United States. FHPA would limit the amount charged for services to 25 percent above the estimated costs of providing care.

“Health care costs have been out of control for years. These initiatives are two modest things we can do to rein that in. We can make sure that hospitals don’t take ridiculous profits on the materials and services they provide and we can hold pay for executives to a reasonable level” says Assemblymember Tom Ammiano (D-San Francisco), who endorsed both initiatives, “When so many people are struggling to pay for health care, it’s the least we can do.”

Executive pay at nonprofit hospitals is out of control. Former CEO of San Francisco-based Blue Shield of America Bruce Bodaken earned $4.6 million in 2010. Former CEO of Oakland-based Kaiser Permanente George Halvorso  earned $6.7 million in the same year.

“Compensation” is strictly defined by the measure, including compensation in the form of bonuses, forgiven loans, and even access to a company car.  

“There is some symbolic value to that… people say that running a hospital is like running a hospital is like running a city,” said Dave Regan, president of SEIU-UHW. “You will not find a mayor in America that makes anywhere close to $450,000 a year, let alone $1.5 million. In fact, the person in charge of leading America makes $450,000 a year. We think that [executive] compensation has gotten out of whack.”

The actual costs for services in US hospitals is also out of whack. According to the World Bank, the US spends 17.9 percent of its Gross Domestic Product on healthcare, the most of any country on earth. But, according to the World Health Organization, the US ranks a dismal 37th in quality of healthcare.

US hospitals have grown infamous for overcharging for services and things like aspirin and ibuprofen. On average in California, charging from 325-800 percent above the actual cost for those services and supplies. FHPA is aimed to help  the US residents pay less for health care. Its goal is to lower the costs of services at non-profit hospitals by capping the amount charged for services to 25 percent above the estimated costs of providing care.

“Cost includes the salary of doctors, nurses and other caregiver… supplies, all of that… You take those costs and add 25 percent. That seems to us, a very healthy and large operating margin,” Regan said. “This will prevent the worst abuses by the most aggressive hospital providers in the state. Everyone knows hospital care costs too much, nobody knows what they’re going to get charged before they see bills… We believe this [FHPA] will reduce what patients are paying… and the hospital industry will be perfectly healthy.”

Both initiatives are also designed to increase transparency by forcing nonprofit hospitals to disclose their 10 highest paid executives and five ex-executives with the highest paid severance package, along with a detailed breakdown of the compensation or severance package, on a yearly bases.

They also have  teeth. Penalties for violating any of conditions set forth in the initiatives can trigger fines of up to $100,000. Even with these blaring facts, the hospital industry is expected to fight the health care measures to the bitter end.  SEIU has already fired shot by releasing an ad. But the hospital industry is predicted to dump millions into this battle to keep the status quo.

Both the California Hospital Association and the Hospital Council of Northern and Central California declined to comment on the initiatives. But a public relations officer from CHA  told the Guardian that the hospital industry and SEIU are looking for a “non-initiative solution.”

However, critics of the initiatives have banded together to fight the pair of healthcare reforms. A CHA-funded group call itself Californians Against Initiative Abuse released an ad accusing the initiatives of being a ploy to increase SEIU’s power . Calling the initiates, “deceptive, dangerous and dishonest.”

Literature on the group’s website spells out healthcare domesday if the initiatives are approved in November, including layoffs, reduced services, and hospital closures — and a decrease of hundreds of millions of dollars in Medi-Cal funding, handing back what it claims is $1 billion in funds to the federal government.

Whatever the outcome of the November ballot, the consequences of keeping the current trend of health care costs are catastrophic.

“Without reasonable health care reform, there are estimates that the health care costs can reach 30 percent of GDP in the future.” California Sen. Mark Leno told the Guardian, “This is not sustainable.  We have to get a handle on this.”

Both Kaiser and Blue Shield declined to comment.

 

Leno’s Ellis Act reform bill clears first legislative hurdle

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Sen. Mark Leno’s Senate Bill 1439 — which would protect rent-controlled housing in San Francisco by amending the Ellis Act, including making property owners wait at least five years after buying a property to evict tenants under the act — cleared its first legislative hurdle today.

The Senate Transportation and Housing Committee passed the measure on a 6-4 vote, and it heads to the Senate Judiciary Committee next. The bill has strong support in San Francisco, from progressive constituencies through Mayor Ed Lee to support by leaders in the business community and tech world.

Yet the measure faces a tough road in Sacramento, where the landlord lobby and other conservative interests oppose it. “A bill that could strip San Francisco landlords of their freedom to leave the rental housing business heads to a key Senate committee next month,” the California Apartment Association wrote last month in an alert to its members.

But as Tenants Together demonstrated in a recent study of how the Ellis Act has been used in San Francisco since its passage in 1985, a legislative reaction to a California Supreme Court case upholding rent control laws, the legislation has larger been a tool used by real estate speculators to clear rent-controlled buildings of tenants. The study found that 51 percent of Ellis Act evictions took place within a year of the property being purchased, 68 percent within the first five years, and 30 percent of Ellis Act evictions were from serial evictors, often by businesses specializing in flipping properties for profit.

“California’s Ellis Act was specifically designed to allow legitimate landlords a way out of the rental business, but in San Francisco this state law is being abused by speculators who never intend to be landlords,” Leno said today in a prepared statement. “As a result, longtime tenants, many of them seniors, disabled people, and low-income families, are being uprooted from their homes and communities. The five-year holding period in my bill would prevent these devastating evictions from forever changing the face of our diverse city.” 

Rising tide of plutocracy

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EDITORIAL The pace of life under late capitalism seems to be speeding up these days, and so too have the bad news developments and warnings of impending doom come at a more rapid clip, at least according to the headlines over the last couple weeks.

First it was a report from the US Commerce Department showing that corporate profits are at the highest level in 85 years while employee compensation is at its lower level in 65 years. After-tax corporate profits are now 10 percent of gross domestic product (a record high) as a result of the effective corporate tax rate (figuring in loopholes) of 20.5 percent, the lowest tax rates since 1929, not coincidentally when the Great Depression began.

Then came the latest report from the Intergovernmental Panel on Climate Change, striking a more urgent tone than the four preceding reports as it documents the threats already unfolding and the major social upheaval to come. And then we were hit with the US Supreme Court’s 5-4 McCutcheon vs FEC decision, which “eviscerates our nation’s campaign finance laws,” as Justice Stephen Breyer wrote in his dissent, striking down aggregate contribution caps and giving even more political power to those with the most economic power.

So wealthy individuals and corporations are hoarding more of the nation’s resources than ever before, and now they’ll be able to spend even more of it to influence and corrupt our already broken political system, weakening its ability to take on big challenges such as addressing global warming because the solutions — including slowing down economic activity (we’ll have more on that in next week’s issue) and helping poor countries deal with rising seas and social instability — require resources from the greedy rich. Call it self-perpetuating plutocracy, with life as we know it on planet Earth at stake.

Meanwhile, on the local front, a Tenants Together study of the economic displacement now underway in San Francisco found it is mostly real estate speculators who are evicting renters using the Ellis Act, a state law ostensibly designed for letting property owners eventually get out of the rental business. Instead, the report’s analysis of eviction data since the Ellis Act was adopted in 1985 showed that 51 percent of Ellis evictions occurred within a year of the property changing hands, 68 percent within five years of new ownership, and 30 percent of Ellis evictions came from serial evictors — all told, displacing 10,000 San Francisco tenants, mostly from rent-controlled housing.

Prohibiting Ellis evictions for the first five years — which is part of Sen. Mark Leno’s SB 1439, which had its first hearing this week — is a good idea that will help. But it also feels a bit like sticking a finger in the hole of a crumbling dike, when what we really need is a strong, new, progressive seawall to protect us against the rising tide of plutocracy, or rule by the rich, and its myriad ravages.

Complaint against Yee includes firearms trafficking and envelopes full of cash

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The federal criminal charges filed today against Sen. Leland Yee (D-SF), local political consultant Keith Jackson, reputed Chinatown organized crime boss Raymond “Shrimp Boy” Chow, and 23 other defendants allege a vast criminal conspiracy that was penetrated by undercover FBI agents, who say they then gave Yee envelopes full of cash in exchange for official favors.

Among the many bizarre aspects of this blockbuster case, Yee stands accused of taking part in a conspiracy to illegally smuggle firearms into the country, and using those deals to help secure campaign contributions for his current campaign for Secretary of State, while he was sponsoring a trio of gun control bills that were signed into law last year.

Yee, who reportedly faces 16 years in prison for two felony counts of wire fraud and conspiracy to deal firearms without a license and to illegally import firearms, was arrested this morning during a series of early morning police raids, pleaded not guilty at his arraignment this afternoon, and was freed after posting a $500,000 unsecured bond.

Chow had a long criminal history as the admitted head of the Hop Sing gang in SF’s Chinatown, serving prison time. “Chow’s criminal history includes a guilty plea in federal court for racketeering, involving murder for hire, conspiracy to distribute heroin, arson, and conspiracy to collect extensions of credit,” the complaint notes. (You can read the full complaint here.)

Chow publicly claimed to go legit after being released from federal prison in 2006, and he has cultivated many high-profile business and political connections in San Francisco. But the 137-page criminal complaint that was unsealed today alleges that “Chow is currently the Dragonhead, or leader, of the San Francisco-based Chee Kung Tong organization,” which it describerd as a criminal syndicate connected to Hung Mun, a criminal dynasty that began in 17th century China, “also referred to as a Chinese secret society and the Chinese Freemasons.”

It says Chow was sworn in as CKT head in August 2006 after being released from federal prison, soon after the still-unsolved murder of CKT head Allen Ngai Leung. Chow’s swearing-in was reported in local Chinese media sources, so SFPD and FBI conducted surveillance there and launched an investigation.

CKT is allegedly part of Triad, an international Chinese organized crime group with ties to China and Hong Kong, and in San Francisco it is said to be comprised of Chow’s Hop Sing, a street gang with 200-300 members, and the Wah Ching gang headed by George Nieh, who was charged with a variety of crimes today.

“Nieh said he was in charge of the Wah Ching gang and Chow was in charge of the Hop Sing gang. Nieh said they used to be enemies, but banded together instead,” the complaint says, relating what they allegedly told FBI informants who had infiltrated the organization.

The FBI says it began infiltrating CKT five years ago, including an undercover FBI agent dubbed UCE 4599, who in May 2010 was introduced to Chow, who “then introduced UCE 4599 to many of the target subjects.”

Chow allegedly told UCE 4599 that he oversees all of CKT criminal enterprises, but doesn’t actively run them anymore, acting as a arbiter, or as a judge when one CKT member kills another. Nieh allegedly heads the criminal activities division and reports to Chow.

They are accused of laundering money made from “illegal activities, specifically illegal gambling, bookmaking, sports betting, drugs, and outdoor marijuana grows.” They allegedly laundered $2.3 million between March 2011 and December 2013 for UCE 4599, with members collecting a 10 percent fee for doing so.

UCE 4599 told Chow he was a member of La Cosa Nostra, an Italian mob, and in March 2012 he was inducted into CKT as a “Consultant,” the complaint alleges. It says that Jackson — a former San Francisco school board member and political consultant who has worked for Lennar Urban and Singer Associates — had also be inducted into CKT as a “Consultant,” participating in various criminal conspiracies.

The complaint says Jackson “has a long-time relationship with Senator Yee,” and “has been involved in raising funds for” Yee’s run for mayor “and for Senator Yee’s current campaign in the California Secretary of State election.” And much of the complaint details deeds allegedly committed by Jackson and Yee.

In fact, the second person named in the complaint, right after Chow, is Yee, “aka California State Senator Leland Yee, aka Uncle Leland.”

“Senator Yee and Keith Jackson were involved in a scheme to defraud the citizens of California of their rights to honest services, and Senator Yee, [Daly City resident Dr. Wilson] Lim, and Keith Jackson were involved in a conspiracy to traffic firearms,” the complaint alleges.

Yee and Jackson met UCE 4599 through Chow, and then Jackson allegedly solicited him to make donations to Yee’s 2011 San Francisco mayoral campaign “in excess of the $500 individual donation limit. UCE 4599 declined to make any donations to Senator Yee, but introduced Keith Jackson and Senator Yee to a purported business associate, UCE 4773, another undercover FBI agent,” who made a $5,000 donation to Yee’s mayoral campaign.

Yee had $70,000 in debt after that mayor’s race and worked with Jackson on ways to pay off that debt. “This included soliciting UCE 4773 for additional donations and in the course of doing so, Senator Yee and Keith Jackson agreed that Senator Yee would perform certain official acts in exchange for donations from UCE 4773.”

Yee allegedly agreed to “make a telephone call to a manager with the California Department of Public Health in support of a contract under consideration with UCE 4773’s purported client, and would provide an official letter of support for the client, in exchange for a $10,000 donation. Senator Yee made the call on October 18, 2012 and provided the letter on or about January 13, 2013,” and Jackson allegedly took the cash donation from the agent.

Meanwhile, it says Jackson and Yee continued raising money for his Secretary of State race by soliciting donations from UCE 4599 and UCE 4180, another undercover agent. “They agreed that in exchange for donations from UCE 4599 and UCE 4180, Senator Yee would perform certain officials acts requested by UCE 4599 and UCE 4180.”

That included Yee issuing an “official state Senate proclamation honoring the CKT in exchange for a $6,800 campaign donation, the maximum individual donation allowed by law.” Yee allegedly did so, and it was presented by one of his staff members at the CKT anniversary celebration on March 29, 2013.

Yee and Jackson are also accused of introducing a donor to state legislators working on pending medical marijuana legislation, the donor being another undercover agent who claimed to be a medical marijuana businessman from Arizona looking to expand into California, “and in payment for that introduction, UCE 4180 delivered $11,000 cash to Senator Yee and Keith Jackson on June 22, 2013.”

In September, after making another introduction, Yee and Jackson allegedly received another $10,000 cash donation for their services.

In August of last year, in an effort to raise more money, “Jackson told UCE 4599 that Senator Yee, had a contact who deals in arms trafficking.” Jackson then allegedly requested UCE 4599 make another donation “to facilitate a meeting with the arms dealer with the intent of UCE 4599 to purportedly purchase a large number of weapons to be imported through the Port of Newark, New Jersey…Senator Yee discussed certain details of the specific types of weapons UCE 4599 was interested in buying and importing.”

The complaint, a declaration by FBI Agent Emmanuel Pascua, does indicate that both Chow and Yee sometimes tried to declare their legitimacy to the FBI agents.

“It should be noted that throughout this investigation, Chow has made several exculpatory statements about how he strives to become legitimate and no longer participates in criminal activity,” it says.

For example, Chow has been working on book and movie deals about his life, and he would regularly make statements attempting to distance himself from CKT’s alleged criminal activities, as well as building connections in the political world. Chow posed for photos with then-Mayor Gavin Newsom and other local political figures.  

“Chow has also been portrayed in many Chinese newspapers as being involved in community affairs and has been photographed posing with local politicians and other community leaders. For example, in August of 2006, Chow was photographed hold a Certificate of Honor from the San Francisco Board of Supervisors for community service of the CKT,” it reads.

But the complaint also said that Chow continued to make incriminating statements to the undercover agents “confirming his knowledge of and involvement in criminal activity.”

The complaint says that Yee also made many exculpatory statements and expressed discomfort with how openly UCE 4180 discussed overt “pay to play” links between cash donations and official actions.

“Despite complaining about UCE 4180’s tendency to speak frankly and tie payment to performance, and threatening to cut off contact with UCE 4180, Senator Yee and Keith Jackson continued to deal with UCE 4180 and never walked away from quid pro quo requests make by UCE 4180. In fact, Senator Yee provided the introductions sought by UCE 4180 and accepted cash payments which UCE 4180 expressly tied to the making of the introductions.”

Yee’s attorney, Paul DeMeester, told reporters they will contest the charges: “We will always in every case enter not guilty pleas, then the case takes on a life of its own.”

Officials in San Francisco and Sacramento are still reeling from the allegations. “I think the whole city is in shock at the moment,” Board of Supervisors President David Chiu, who represents Chinatown and ran against Yee in the 2011 mayor’s race, told us. “Today’s widespread law enforcement actions are incredibly disturbing. The detail and scale of the criminal activities are shocking.”

California Senate President Darrell Steinberg told reporters today that he has asked for Yee’s resignation and that he plans to introduce a resolution Friday to suspend Yee and two other Democrats chargeed with political corruption, Rod Wright and Ron Calderon.

Sen. Mark Leno (D-SF), who took part in that briefing, told the Guardian, “I’m frustrated and angered on behalf of my constituents that my Senate colleagues and I are there each day to create positive changes and all of these situations are distracting…It reflects badly on a great institution.”

Guardian reporter Joe Rodriguez Fitzgerald, who contributed to this report, has been covering this case from the federal courthouse today, and we’ll have more on this unfolding story in the coming days and the next issue of the Guardian. 

Yee had a reputation for political corruption even before the federal indictment

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Long before Sen. Leland Yee’s surprise arrest and arraignment on federal corruption charges today, Yee already had a reputation for, at best, political pandering and influence peddling; or at worst, corruption, a label for Yee long used in private conversations among figures in the local political establishment.

It was usually assumed to be the kind of low-level, quasi-legal corruption that is endemic to the political system: voting against one’s values and constituent interests in order to curry favor and financial contributions from wealthy special interests. In Yee’s case, his recent voting record seems to indicate that he was cultivating support from landlords and the pharmaceutical, banking, oil, and chemical industries for his current campaign for the Secretary of State’s Office.

But today’s indictment — which is expected to be released at any minute, and which we’ll detail in a separate post — seems to go much further, the culmination of a four-year FBI investigation tying Yee to notorious Chinatown gangster Raymond “Shrimp Boy” Chow, who was also arrested today. They and 24 others arrested in the case today are now being arraigned in federal court.  

The Bay Guardian has covered Yee throughout his 26-year political career, and we wrote a comprehensive profile of this controversial figure when he ran for mayor in 2011. More recently, in September, we wrote about some of his suspicious votes and refusal to offer credible explanations for them to activists he’s worked with before.

After that article, confidential sources contacted us urging us to investigate a series of strange votes Yee had cast in the last year, and we’ve been holding off on publishing that until Yee would sit down to talk to us about them. But each time we scheduled an interview with him, starting in November, he would cancel them at the last minute.

Maybe he was aware of the federal criminal investigation, or perhaps he had just decided that he not longer needed to cooperate with the Guardian as he sought statewide office, but he became increasingly hostile to our inquiries. Last month, when Yee saw San Francisco Media Co. (which owns the Guardian) CEO Todd Vogt having dinner with Board of Supervisors President David Chiu in a local restaurant, Vogt said Yee angrily accused the Guardian of being motivated by an anti-Asian bias in our inquiries and criticism, an incident that Vogt described to us as bizarre.

Guardian calls to staffers in Yee’s office, today and in recent weeks, haven’t been returned.

Yee has been a champion of sunshine (last week, the Society of Professional Journalists NorCal gave him a James Madison Freedom of Information Award for defending the California Public Records Act) and gun control, last year getting three such bills signed into law. SB 755 expands the list of crimes that would disqualify and individual from owning a gun, SB 374 prohibited semiautomatic rifles with detachable magazines, and SB 53 made background checks a requisite step in purchasing ammunition.

But he’s disappointed liberal and progressive constituencies — renters, environmentalists, seniors, students, the LGBT community — in San Francisco and beyond with most of his other votes, some of which ended up killing important legislation.

Yee voted against SB 405, which would have extended San Francisco’s plastic bag ban statewide. He also said no to regulating gasoline price manipulation by voting against SB 441, siding with the Big Oil over his constituents. And then he sided with Big Pharma in voting against SB 809, which would have taxed prescription drugs to help fund a state program designed to reduce their abuse, partially by creating a database to track prescriptions.

In addition to the Pharma-loving, ocean-shunning, oil-chugging votes Yee has cast, he has also turned a cold shoulder towards the elderly (by voting against SB 205, a bill that would make prescription font larger or, as the elderly would like to say, “readable”), the LGBTQ community (by voting against SB 761, which protects employees that use Paid Family Leave), students (by abstaining from a vote on AB 233, which would allow debt collectors to garnish the wages of college students with outstanding student loans), and tenants (by voting against the SB 510, the Mobile Home Park Conversion bill, and SB 603, which protects tenants from greedy landlords).

This year, as San Francisco’s other legislative representatives — Sen. Mark Leno and Assemblymembers Tom Ammiano and Phil Ting — announced efforts to reform the Ellis Act to address the escalating eviction epidemic in San Francisco, Yee has pointedly refused to support or even take a position on the effort.

In 2013, Yee sided with the Republican Party nine times on key votes, earning the scorn of many of his Democratic Party colleagues. Yee even voted for SCR 59, which would have created highway signs honored former Sen. Pete Knight, the late conservative Republican who authored Prop. 22 in 2000, strengthening California’s stand against same-sex marriage at the time.

Since we ran our “The real Leland Yee” article on Aug. 30, 2011, Yee has voted on 88 “key” pieces of legislation, according to the non-partisan, non-profit educational organization Project Vote Smart, and his final recorded vote has been “Yea” 80 times. He has abstained from voting six times, and has voted “Nay” just twice.

One of those votes came in response to a bill that was deemed “unnecessary” by Gov. Jerry Brown, but the other bill, SB 376, would have prohibited the harvesting and sale of shark fins in California.

In 2013, his voting record more closely aligns with Sen. Mark Wyland, a Republican from Carlsbad, than it does with any other Democrat on the Senate, finishing just ahead of Sen. Ron Calderon, the Southern California Democrat who was also indicted by the federal government on corruption charges last month after allegedly accepting bribes from an undercover FBI agent.

Throughout his legislative career, Yee has regularly supported Pacific Gas & Electric’s stranglehold on San Francisco’s energy market and benefitted from the company’s corrupting largesse. None of this may have crossed the line into actual criminal conduct — but for those familiar with Yee and his transactional approach to politics and governance, today’s indictment isn’t a huge surprise. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

Ammiano Introduces Bill to Stem Evictions from Affordable Housing

 

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

 

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

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

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

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

New Legislation Closes Ellis Act Loophole for San Francisco

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

to Stop Speculative Evictions in San Francisco

 

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

 

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

 

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

 

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

 

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

 

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

 

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

Staying power

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

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

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

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

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

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

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

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

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

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

 

MAINTAINING DIVERSITY

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

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

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

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

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

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

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

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

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

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

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

 

ELLIS ACT UNDER FIRE

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

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

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

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

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

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

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

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

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

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

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

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

 

LOCAL POLICY CHANGES SOUGHT

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

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

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

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

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

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

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

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

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

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

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

 

TENANTS FIGHTING BACK

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

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

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

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

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

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

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

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

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

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

Seeking solutions

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

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

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

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

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

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

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

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

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

Tenant battle brewing

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Benito Santiago, 63, was born and raised in San Francisco. But now that he’s received an eviction notice from the apartment he’s lived in since 1977, he isn’t sure what the future holds.

“This is roots for me,” Santiago told us. “I have more affinity for San Francisco than the Philippines,” his family’s place of origin.

He works part-time with disabled youth enrolled in San Francisco public schools. “The idea that I built a rapport with these students here … to be put in a position where I wouldn’t be able to work with them, I’m a little saddened and depressed by it,” he said. “If I’m homeless, I can’t be taking care of these kids. I mean — it’s a worst-case scenario.”

He’s been exploring alternative housing options, and trying to stay positive. He says he’s even trying to “change the rate of vibration” of the real estate speculators seeking to oust him as part of his pre-dawn meditation and ritualistic movement practice, a routine he developed to mitigate the chronic pain he dealt with after being hit by an automobile when he was crossing the street in 1980.

“Hopefully, they can have some compassion,” he said.

Santiago is hoping to get a temporary extension to stave off his eviction, and he’s been looking into publicly subsidized below-market rate apartments. But rent for even the most affordable of those places would eat up 75 percent of his monthly income, he said. Unless he can find an affordable arrangement somewhere, he might end up having to leave the city.

 

GROWING MOVEMENT

Santiago has been a part of a growing movement underway in San Francisco to reform the Ellis Act and introduce meaningful legislation at the local level to protect the city’s renters.

In recent weeks, the San Francisco Anti Displacement Coalition, made up of a wide range of organizations including the San Francisco Tenants Union, has hosted a series of neighborhood tenant conventions to solicit ideas that will be boiled down at a citywide tenants’ gathering scheduled for Feb. 8. At that meeting, organizers plan to hash out a strategy and possibly solicit ideas for a ballot initiative.

The tenant conventions are happening on a parallel track with efforts to reform the Ellis Act, which allows landlords to remove apartments from the rental market and evict tenants.

“Our goal is to ban the use of the Ellis Act in certain circumstances,” explained Dean Preston of Tenants Together, a nonprofit focused on strengthening the rights of renters.

“More than half of Ellis Acts are performed by people who bought the properties within the past six months,” he told us. “Their whole purpose is to buy it and kick everyone out. It was supposed to be for long-term landlords to get out of the business” of being landlords, he added. Instead, “it’s being completely abused.”

Sen. Mark Leno is working with Mayor Ed Lee on a response that would seek to lessen the impact the Ellis Act has had in San Francisco. Meanwhile, Assemblymember Tom Ammiano is spearheading a separate effort.

“At this time, he’s not really ready to say which avenue he’s taking” in terms of a legislative strategy, said Carlos Alcalá, Ammiano’s communications director. “Because that can rule out that avenue.”

Preston said he’s been through waves of evictions before, but the organizing now taking place has been especially effective at drawing attention to the issue. Oftentimes, “the speculators are not from within the city or even within the state,” he pointed out. “That has fueled a lot of activism and courage.”

For Santiago, the organizing has given him heart during a difficult time. “I’m hearing a lot of sad stories,” he said, “and I am not alone.”