Wiener

Sneaky surveillance

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steve@sfbg.com

After public outrage stopped the San Francisco Police Department from instituting controversial — and unconstitutional, say civil libertarians — new video surveillance requirements in bars and clubs more than two years ago, the department quietly began inserting that same requirement into new liquor licenses, a move met with concern at City Hall last week.

In late 2010, the SFPD proposed a draconian set of new security requirements for drinking establishments in the city, including requirements that they do video surveillance and take an image of all patrons’ identification cards and make them available to police upon request, without a warrant or any other controls (see “Going to a club — or boarding an airplane?,” 12/7/10).

That proposal ran into a wall of opposition from the American Civil Liberties Union, California Music and Culture Association, progressives on the Board of Supervisors, and others, who said such a blanket policy violates privacy protections in the California Constitution. The Entertainment Commission held a hearing on the proposal in April of 2011 and voted unanimously to reject the proposals.

At that point, they seemed to just disappear, but they didn’t. Instead, SFPD internally decided at that time to begin asking the California Department of Alcoholic Beverage Control to insert a video surveillance requirement in most new liquor licenses in San Francisco, which escaped public notice until Sup. Scott Wiener raised the issue at the April 2 Board of Supervisors meeting.

“If you have an establishment that perhaps has a track record of bad things happening, that’s one thing. But absent that, I don’t believe that this is justified,” Wiener said as he voted against the requirement in a pair of new liquor licenses. Although Wiener was alone in opposing those applications, Sup. David Campos said he shared Wiener’s concern and the pair called an upcoming hearing on the new policy.

Two days later, at the board’s Neighborhood Services and Safety Committee meeting, Wiener again raised the issue and sought to have the new requirement removed from a pair of proposed liquor licenses: Cesar’s Ballroom on 26th and 3rd streets, the latest project of veteran local club owner Cesar Ascarrunz, and Nosa Ria, a market in Hayes Valley that will import gourmet food and wine from Spain.

“It’s the exact opposite of some kind of rowdy bar or nightclub where people are going in and getting drunk and really bad things are happening,” Wiener said of Nosa Ria, for which he persuaded fellow Sups. Eric Mar and Norman Yee to vote to remove the video surveillance condition before approving the application.

That condition stated: “The petitioner shall utilize electronic surveillance and recording equipment that is able to view the outside of the premises, including all entrances and exits, and that is actively monitored and recorded. The electronic surveillance shall be utilized during operating hours. Said electronic recording shall be kept at least 30 days and shall be made available to the Department or Police Department upon demand.”

Mar said he agreed with Wiener that “a broad discussion of electronic surveillance requirements would be important for this committee,” but Mar then voted against removing that condition from the Cesar’s Ballroom application, saying, “I think we need surveillance in certain spots on a case-by-case basis, and I think this is an area that needs surveillance.”

SFPD IS WATCHING

When SFPD first sought new video surveillance tools — back in 2005, when the department asked for 71 video cameras at high-crime intersections around the city — it was rigorously debated in public hearings for months. And when they were finally approved by the Board of Supervisors, they included an extensive set of controls on when SFPD could request footage — the department wasn’t even allowed to control the cameras directly — how it could be used and when it must be erased.

The legislation also required a follow-up study of their effectiveness in deterring and prosecuting crimes. Conducted by the University of California’s Center for Information Technology Research in the Interest of Society (CITRIS) in 2008, the report found the cameras had no impact on violent crime rates but a small deterrent impact on property crimes in the filmed areas.

As a tool for prosecuting crimes after the fact, “There has been limited success with the cameras acting as a ‘silent witness,’ with footage standing in for witness testimony; some anecdotal evidence suggests that the existence of CSC program footage can actually deter witnesses from cooperating under the assumption that the cameras have caught all necessary evidence,” the report said, also noting that twice in the 120 police requests made by 2008, footage resulted in charges being dropped or downgraded.

But today, SFPD apparently believes that times have changed, and that the rigorous oversight and evaluation of video surveillance tactics and their implications on people’s privacy rights — or even the need to notify the public that SFPD is seeking new ways to watch citizens — are no longer necessary.

“Over the last few years, we’ve increased the number of recommendations for video surveillance, for a few reasons,” SFPD spokesperson Gordon Shyy told the Guardian, citing how cheap and ubiquitous the technology has become and the role that video footage can play in solving crimes.

Yet attorney Michael Rischer with the ACLU of Northern California, who actively opposed the SFPD’s proposal in 2011 and was dismayed to hear the department secretly and unilaterally expanded its video surveillance reach after its proposal was rejected, said that reasoning is exactly why there are legal controls on the expanding police state.

“Both of those justifications are exceedingly troubling and they demonstrate why the San Francisco Police Department should not be doing this in some room sealed off from the public,” Rischer said. “The police have this totally backward. The ease and cost of doing this is a reason why these protections are in place.”

PRIVACY PROTECTIONS

Unlike under federal law, Californians have an explicit constitutional privacy guarantee and a body of case law defining that right in great detail. But the SFPD doesn’t seem to be aware of the nuances of that case law, such as the distinction it makes between people’s expectation of privacy on public streets versus in private businesses.

“When you enter a bar or restaurant, you don’t have an expectation of privacy,” Shyy told us.

But Rischer said that just isn’t true under the law. He noted that people do indeed have a reasonable expectation that they can enter a gay bar without being outed, for example, or that police won’t be able to demand video from a gathering in a bar where subversive political ideas are being discussed. And those concerns are exacerbated by SFPD’s policy that bar owners must simply turn over footage “upon demand.”

“The notion that the government is requiring a business to conduct surveillance of its patrons and to turn it over to the Police Department without any judicial oversight or even rules is deeply troubling and probably unconstitutional,” Rischer said.

Shyy said SFPD will “only request them when a crime has been committed,” but he also admitted that the conditions it is requesting on liquor licenses don’t set that limit and the policy hasn’t been reviewed by the Police Commission or other local oversight bodies.

ABC spokesperson John Carr told us his department doesn’t have a position on video surveillance and hasn’t tracked whether other jurisdictions are seeking the condition. As for whether it routinely includes SFPD’s recommended conditions, he said, “ABC reviews each application on a case by case basis.”

There are indications that SFPD sometimes resorts to bullying bar owners into turning over video surveillance without legal authority to do so. Jamie Zawinski with DNA Lounge last month blogged about Officer Simon Chan telling the club that it was required to keep video footage and turn it over upon request, which club operators informed the SFPD wasn’t true. “It’s just another sneaky, backdoor regulation that ABC and SFPD have been foisting on everyone without any kind of judicial oversight, in flagrant violation of the Fourth Amendment,” Zawinski wrote.

Regarding that incident, Shyy would only confirm that most bars aren’t yet required to keep and turn over video footage. And he said SFPD will cooperate with the hearing Campos and Wiener have called. “At this point, we don’t believe we’re violating people’s constitutional rights, but we’re willing to have that discussion,” Shyy said.

Wiener said that on April 3, he discussed the issue with Police Chief Greg Suhr, who indicated a willingness to cooperate with public hearings on the policy. But Wiener said he’s bothered by the fact that SFPD seems to have put this new policy in place right after being unsuccessful in doing this through a public process in 2011.

“I and others expressed opposition to this and I and others thought the Police Department had backed away from it,” Wiener said at the April 4 hearing, noting that “I’m not philosophically opposed to surveillance,” only with how SFPD instituted it. “I have an issue with the Police Department deciding to insert this on its own without a broader policy discussion.”

No progress in condo conversion standoff, despite the Chron’s spin

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Perhaps it was just an unfunny April Fool’s Day joke or some wishful political spin, but the San Francisco Chronicle’s April 1 article about how tenancy-in-common owners and their political supporters are pushing legislation that would allow them to bypass the condo conversion lottery seriously misrepresented the city’s biggest current political standoff.

Nevermind the article’s over-the-top bias in favor of those poor, hard-luck TIC owners, like the featured Pacific Heights couple forced to raise their baby in a closet when all they really want to do is flip the apartment they bought for a profit. Or how the Chron all-but-ignored the fact that these TICs were rent-controlled apartments in a city where two-thirds of citizens rent. That kind of top-down view of the world is pretty typical for the Chron, even in its news stories, despite the paper’s strained claim to “objectivity.”

No, the article’s real sin was to get the basic facts wrong on where this political stalemate now stands, presenting the wishful spin of one side as if it were the latest news. Between the headline, “Owners seeking condo conversions may have shot” and the first deckhead, “Making progress” (which plays off this paragraph. “’I think we’re making progress in our discussions and negotiations,’ said [sponsoring Sup. Mark] Farrell, while noting the talks with tenant advocates, TIC owners, and real estate interests are ‘far from the finish line.’”) the article leaves the impression current negotiations may produce a compromise.

But the problem is that there aren’t any current negotiations between the two sides, and there haven’t been for weeks, according to tenant and other involved sources. In fact, they say there’s been no movement in this standoff since almost a month ago when I last reported that tenant groups and progressive supervisors were preparing a set of hostile amendments to the legislation.

They would allow a one-time condo lottery bypass for the nearly 2,500 TIC owners in the pipeline in exchange to shutting down the lottery for many years and preventing any conversions of rent-controlled apartments into condos until city builds a comparable amount of new affordable housing, and then probably restricting condo conversions to smaller buildings after that to protect large rent-controlled apartment buildings from real estate speculators.

That proposed compromise, which the article barely mentions before letting Farrell say “his legislation poses no threat to rent control,” would help the poor Pacific Heights couple at the center of the article. But the real estate industry and its conservative allies don’t really care about that couple as much as they do maintaining the flow of rental units into the real estate market, which is why the negotiations have broken down.

Instead, the Chron has Sup. London Breed – who is indeed a swing vote of the issue, but not one that tenant groups are counting on given how close she is to Plan C and the landlord lobby – citing a compromise proposal that would prevent the new condo owners from selling their properties for five years to discourage real estate speculation.

Perhaps that’s something the TIC owners and real estate interests that the article relies on think is a realistic compromise, but it’s not something that has been seriously discussed with tenant groups, mediating Sup. David Chiu, or the other interests that would be needed to pass this legislation.

Sara Shortt, the token tenant activist that the Chron talked to for the article, confirmed to us that there is no real compromise deal in the works and preventing the creation of new condos from existing apartments is a bottom-line issue that unites everyone who is now opposed to this legislation.

“The Plan C/Realtor etc. won’t concede on our key issue: restriction on future conversions in exchange for the bypass. We have given as much as we can give and they have given virtually nothing in return,” Shortt, executive director of the Housing Right Committee, told us by email.

Even Sup. Scott Wiener, who co-sponsors the legislation with Farrell, told us there has been “no change from before,” when negotiations broke down. But the legislation is on the April 15 agenda for the Land Use and Economic Development Committee – for the fifth time, with most hearings canceled because of the lack of negotiating progress.

If the Realtors and Plan C (which is dominated by real estate and banking interests) stick to their intransigent position – hurting this poor Pac Heights couple in the process, which the Chron fails to note – then tenants and progressive supervisors are likely to amend the legislation and call the bluff of those who claim this issue is simply about poor TIC owners stuck with shared mortgages.

Wiener to star in porn flick

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Supervisor Scott Wiener has signed a contract to star in a new porn film satirizing the city’s ban on nudity.

Variety reports that Wiener accepted a deal “in the mid three figures” to play the fictitious Supervisor Scott Cox in “Cover Up,” a film by the legendary Naked Sword productions.

Wiener replaces porn star Dale Cooper, who has left the film “to pursue other interests.”

The film, shot on location in the Castro, would violate the ban on public nudity that Wiener sponsored – but since the producers obatined permits, Wiener said, wieners are permitted.

“Besides,” he told us, “penises and anuses and perineums are good for business. And what’s good for business is good for San Francisco.”

Wiener, who is exceptionally tall and shuns the dating scene, said he expects his appearing in the film to jump-start his sex life. “A six-foot-six naked guy is, well, a six-foot-six naked guy, if you know what I mean,” Wiener told us. “And I think you do,” he added with a giggle.

Outtakes will soon be available at sfgov.org/nakedsupervisorwiener.

The real CPMC story

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OPINION The recently announced terms for the development of California Pacific Medical Center’s hospitals at Cathedral Hill and St. Luke’s generated front-page and lead stories in the local news media. But nearly without exception, only part of the story was reported. Missing from most accounts of the terms of the new deal, which dramatically changed last year’s failed draft development agreement negotiated by Mayor Ed Lee, was the decisive role played by a community/labor coalition, San Franciscans for Healthcare, Housing, Jobs and Justice.

Key details of the agreement have yet to be finalized, and provisions of the terms announced on March 5th need to be improved. But the new agreement, in virtually all respects, is an improvement over the old one. And on the same day the terms of the new deal was announced one of the union members of the coalition, the National Union of Healthcare Workers signed a contact with CPMC that protected union organizing rights, job security at Cathedral Hill and full employer paid health care — issues that had been unresolved over the last few years. Still missing is an ageement between Sutter and its nurses, a critical component of labor peace.

The basic structure of the current terms mirror almost exactly the positions outlined by the SFHHJJ over the last year, including a requirement for labor peace with all unions at CPMC. This was no accident; it was the result of the efforts of the community/labor coalition. When the old deal was stalled at the Board of Supervisors in early 2013 and it was clear that the Mayors Office had no idea how to proceed, the members of the coalition came up with a framework to get discussions going again. The key ingredient was the involvement of a skilled an knowledgeable mediator, mutually respected by all parties and the participation of Sutter Corp. in Sacramento — the real party able to make actual binding corporate commitments, not the subsidiary the mayor had dealt with.

The second step was to agree to a framework of issues that would form the substance of negotiations — and the coalition’s own comprehensive set of positions served as that framework.

The next step was to get a critical mass of supervisors to agree to participate in the negotiations. Two Supervisors, David Chiu and David Campos, agreed to the coalition’s framework and the use of a third-party mediator. They added a third supervisor, Mark Farrell, to their group in order to assure buy-in from the full board.

Finally, the mediator had to be found and in that the coalition (and the rest of the city) simply were lucky that Lou Girardo was willing and able to provide his own special skills and credibility.

The SFHHJJ is not the first community/labor coalition in San Francisco history. Such coalitions were present in both the District 1 and District 5 supervisors races last year with mixed success, and in 2008 a community/labor coalition fought for revenue measures, again with mixed success but real unity. A new labor/community coalition has emerged to oppose Scott Wiener’s ill-advised weakening of our local California Environmental Policy Act procedures.

As the Democratic Party transforms itself into ever greater political irrelevancy by becoming the home of moderate Republicanism at all levels of government, community and labor co-operation seems to be growing over an increasing number of issues, showing a level of political vibrancy impossible to ignore.

Calvin Welch is a longtime community organizer in San Francisco and is a member of the SFHHJJ CPMC Negotiating Committee

CPMC deal gets warm welcome despite some shortcomings

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Even though the Board of Supervisors unanimously approved the term sheet for the California Pacific Medical Center’s hospital deal this week, comments from the supervisors and the general public indicated there are still a few outstanding issues before the project returns to the board for final approval, probably in July.

As the Guardian recently reported, CPMC’s longstanding contract impasse with the California Nurses Association remains the biggest sticking point even for many labor-community coalition members who helped hammer out the deal that was announced last week. James Tracy of the Community Housing Partnership told the supervisors that he was almost ready to uncork the champagne and celebrate, “but I’m holding off until there is labor peace with the nurses.”

New District 5 Sup. London Breed went on extended tirade ripping into the hard-won compromise plan, voicing support for the nurses, wanting more specifics on how affordable housing money will be used, calling for more money for job training to support the plan’s local hiring standards (“I need to know how this is going to transfer into support for Western Addition residents,” and concluding that she’s generally supportive of the deal but “I will reserve final judgment.”

Calvin Welch of the Council of Community Housing Organizations echoed Breed’s concern that the $36.5 million in affordable housing funds will be paid into the Mayor’s Office of Housing’s general pot rather than be set aside for specific projects. “We are very concerned with how this multi-faceted program will unfold,” Welch said, asking that COCHO be included in decisions about how the money from CPMC gets used.

Sup. Scott Wiener decried how the new deal’s $14 million in transportation impact fees is 30 percent less than the ill-fated previous deal – the result of a significantly smaller footprint of the Cathedral Hill Hospital – saying, “Once again transit comes out on the short end.”

The change called for by more supervisors than any other is an increase in job training funds to support the guarantee that 30 percent of construction jobs and 40 percent of permanent entry level jobs go to San Franciscans. Even though job training funds were doubled to $4 million under the new agreement, some supervisors and activists say that’s not enough.

“That’s a big improvement, but it’s still not enough, given the type of training needed for low-income San Franciscans to be able to work in the hospitals,” Gordon Mar of San Franciscans For Healthcare, Housing, Jobs and Justice told the Guardian.

Yet even with all these gripes and picking of nits, which will play out as the development agreement is prepared and goes through the Planning Commission approval process starting in May, the consensus across the ideological spectrum seems to be that this is a good deal for the city that is likely to be approved if CPMC can reach a contract with CNA

And all hailed it as a vast improvement over the deal CPMC cut last year with the Mayor’s Office, offering a lesson for city officials who are now negotiating other big deals, such as the Warriors Arena proposal. As Sup. John Avalos said at the hearing, “I remember a statement form the Mayor’s Office last year that this is the best we can get. I think we always need to challenge that.”

Supervisors approve Western SoMa Plan, rejecting expanded office development

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The Board of Supervisors today approved the Western South of Market Community Plan, the first step to ending a development moratorium that has been in place since the citizen-based planning process that developed the plan began in 2005, but not before some supervisors made a last-ditch effort to allow more office development and nightlife.

“I have real concerns over the plan,” Sup. Scott Wiener said as the plan came before the full board for the first time, continuing an effort to modify the plan that he began a few weeks ago when it was before the Land Use and Economic Development Committee.

While some of Wiener’s colleagues echoed his concerns and those raised by the business and entertainment communities, most decided to defer to the area’s Sup. Jane Kim and the Western SoMa Task Force that developed the plan. It was approved on a 10-1 vote, with Wiener in dissent. It will guide development and set land use rules for the Western SoMa area after being approved on second reading by the board next week.

Wiener led the critique of the plan’s restrictions on office development in most of the plan area, particularly around the transit hub of 4th and King streets, concerns that were echoed by Sups. London Breed and Malia Cohen, likely indicating that the business community has been lobbying supervisors on the issue.

But Kim said she is concerned about the area’s artists, nonprofits, and light industrial businesses – dubbed Production Distribution and Repair (PDR) in the city planning code – being squeezed out if the area is opened up to more office development.

“Office space is hot right now and it’s pushing out PDR uses,” Kim said. “Zoning is an importance tool, otherwise everything will turn into offices in South of Market.”

Wiener, Breed, and other supervisors also sounded their support for the entertainment community that has lobbied for changes in the plan, winning greater protections for nightlife at earlier hearings – including a ban on residential development on the raucous 300 block of 11th Street and persuading owners of “the purple building” to switch from residential to office – pushing for removal of more of the plan’s restrictions on attaining limited live music permits.

“I also have some real concerns with how the plan treats nightlife and entertainment,” Wiener said, while Breed said, “As a big supporter of the arts, I’m concerned there are limited live performances in the plan.”

Kim noted that the plan tried to strike a balance in the conflict between nightlife and housing, and she said that expanding the ability business in areas zoned Regional Commercial District (RCD) shouldn’t be done in just in a part of town where there conflicts have often been difficult to resolve.

“If you’re going to permit it in the RCD areas, it should be citywide rather than just in Western SoMa,” Kim said, noting that she’s open to futher discussions after the plan is approved.

Sup. David Campos and other supervisors urged their colleagues not to tinker with the compromises and hard-won balance in the plan. “I’m not 100 percent happy with every aspect of the plan, but I do think some deference should be given to the district supervisor,” Campos said.

Wiener agreed that deference to the desires of district supervisors is an important consideration, “but there are times when this board does not vote the same as their supervisors,” citing as an example the board’s approval of the controversial 8 Washington luxury condo project over the objections of Board President David Chiu.

Afterward, Terrence Alan of the California Music and Culture Association, which had lobbied for expanded protections of nightlife, told us, “Entertainment as a whole fared well.” But he said that they would continue pushing for greater citywide nightlife protections, including supporting Wiener’s proposal to expand the limited live music permits to include DJs.

Condo conversion compromise in the works despite Realtors’ resistance

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[UPDATED BELOW] Negotiations between tenant advocates and real estate interests (including the political advocacy group Plan C) over the controversial condo lottery bypass legislation haven’t gone well or found common ground. But sources tell the Guardian that Sup. Jane Kim and Board President David Chiu, who has been mediating the dispute, are preparing to introduce compromise amendments that have the support of the San Francisco Tenants Union and other tenant advocates if a deal can’t be worked out with real estate interests.

Details are still being hammered out with advocates and the City Attorney’s Office, so the hearing scheduled for this Monday at the Land Use and Economic Development Committee will likely be postponed until March 25. But the basic deal is to allow the roughly 2,000 tenancies-in-common now seeking to convert into condos to do so in exchange for a long moratorium on new condo conversions, possibly indexed to construction of new affordable housing for the renters who comprise nearly two-thirds of San Franciscans.

The original legislation by Sups. Mark Farrell and Scott Wiener is being strongly backed by both current TIC owners who want the ability to refinance and Plan C and other real estate interests that want to continue converting ever more rent-controlled apartments into condos, rather than abiding the city’s current limit of 200 per year, awarded through a lottery system. The SFTU has strenuously resisted opening up those flood gates, but it’s open to clearing out the backlog in exchange to shutting the gates for awhile (see my story in this week’s Guardian for more on the political dynamics surrounding this issue).

“We’re hopeful that a majority of the board will support amendments which will significantly protect tenants and which will allow a version of the Wiener-Farrell legislation to be approved,” SFTU head Ted Gullicksen told us.

Progressives on the board oppose the legislation as currently written, and the swing votes are thought to be Sups. London Breed (which Plan C supported in the last election in exchange for what it says was her promise to support more condo conversions, an assurance she denies making), Norman Yee (who was brought into the Chiu-mediated negotiations), and Malia Cohen, with just one of them needed to force changes to the legislation.

But the real estate interests – including Plan C, the Association of Realtors (whose government affairs director we left a message for and are waiting to hear back from, and we’ll update below if/when we do), San Francisco Apartment Association, and other downtown-based groups – who are pushing for more condo conversions are likely to strongly resist the amendments. They simply want more rent-controlled apartments turned into condos they can sell, period.

Their perspective is reflected in SF Apartment Magazine, put out by the San Francisco Apartment Association, which every month offers advice to real estate investors and apartment building owners on various ways to buy apartment buildings, evict tenants or increase their rents, and convert the buildings to TICs or condos.

It runs a regular column called “TIC Corner” with the latest tricks for financing acquisitions and getting rid of those pesky tenants. In the November 2012 issue, for example, attorney D. Andrew Sirkin wrote excitedly about a new Securities and Exchange Commission rule that will now allow owners to advertise the sale of apartment buildings as TIC/condo investments, which he said “will dramatically ease the regulatory burden for real estate entrepreneurs wishing to raise money for apartment acquisitions and make it much easier to find investors.”

Another feature story in the magazine, “The ABCs of OMIs,” teaches these investors all the tricks for evicting tenants from their buildings, while “Roommate Roulette” offers advice to owners of rent-controlled buildings for keeping new roommates of existing tenants off the lease so they can charge market rate rents as soon as possible.

And, of course, the magazine is filled with ads for San Francisco apartment buildings that are for sale and just waiting to be cleared of tenants and turned into amazing real estate investment opportunities. Gullicksen says it is this mentality, applied to what even Mayor Ed Lee has called the city’s “precious few rent-controlled apartments,” that has animated the opposition to the Wiener-Farrell legislation. SFTU had planned a rally for Monday called “Stop Rent Control Attack,” which has now been postponed until March 25.

UPDATE 3/11: Sup. Wiener got back to us and said, “I hope we can move to a compromise and I don’t want to prejudge that compromise.” Asked about the concept of approving TICs in the pipeline in exchange for halting on all condo conversions for some number of years, he said, “It’s definitely something to explore, a pause in the lottery, and I’m open to that. But the devil is in the details.”

Big waterfront projects prompt study of new transportation ideas

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The massive development projects being proposed along San Francisco’s central waterfront – from the proposed Warriors Arena at Pier 30 through the Giants’ housing/retail project at Pier 48 down to Forest City’s sprawling proposal around Pier 70 – will create huge challenges for the city’s already overtaxed transportation system.

Nobody is more aware of that issue than Warriors President Rick Welts as he seeks approval to build a 17,500-seat arena with just a smattering of parking spaces. “We’re investing a billion dollars in this property, and if people aren’t comfortable getting to it and leaving it, we have a problem,” Welts told a gathering of the California Music and Culture Association on Tuesday night, responding to a local resident who raised the concern. “We have to get that right, it’s at the top of our list.”

With Muni and BART already at capacity during peak hours, and thousands of new housing units being built in the coming years both along the waterfront and from nearby SoMa down through the Eastern Neighborhoods Plan area, city transportation planners are trying to get ahead of potential problems created by the development boom.

“We’re now taking a step back and looking at the long-term needs from the Exploratorium down to Pier 70,” says San Francisco Municipal Transportation Agency planner Peter Albert, who is leading a comprehensive waterfront transportation study that will inform the environmental studies done for each of these projects. “What we get is an environmental review that is much smarter because we have all this advanced planning….EIRs are important, but they aren’t really planning.”

Albert is looking at everything from working with various transportation agencies to beef up bus, train, and ferry services to the area; using these projects to complete the ambitious but underfunded and long-stalled Blue-Greenway bicycle path along the waterfront; accelerating capital projects that are already in the SFMTA’s queue; and exploring a dozen or so new ideas.

“What’s also coming out of this are new ideas we’re coming up with, things we weren’t even thinking of that may make sense,” Albert told us, noting that he’ll be doing his first presentation of some of these ideas to the SFMTA Board of Directors on March 5.

They include extending new streetcar service along the Embarcadero to the Caltrain station at 4th and King or possibly all the way out to the Anchor Steam Brewing-anchored project at Pier 48 (which would probably involve construction of new streetcar turn-arounds); better integrating the Central Subway project into Mission Bay and the Embarcadero with new bus and rail connections around 20th and 3rd streets; and expansion of the Embarcadero BART station to increase its peak capacity.

Welts said BART will be an important connector to the new Warriors Arena, noting that the walking distance from Pier 30 to the Embarcadero station is actually about the same distance as the Coliseum BART station is from the entrance to the Warriors’ current arena. He said that he’s excited about Albert’s work and wants to cooperate with helping the city meet its transportation needs: “We have a lot of process to go through and we’re embracing that process.”

Funding the needed improvements will be a challenge, particularly because new development projects generally don’t pay for their full impacts to the transportation system, as SFMTA head Ed Reiskin and Sup. Scott Wiener have told the Guardian. On Monday, Wiener amended the Western SoMa Community Plan to increase how much developers would pay in transportation impact fees.

Albert said funding for the needed improvements to the area’s transportation system would come from a combination of mitigation fees from the developers, reprioritizing the SFMTA’s existing capital budget, and securing state and federal transportation grants by developing impactful projects that are shovel-ready, thanks to this advanced planning effort.

These three waterfront development projects alone could have huge impacts. The Warriors Arena would host more than 200 concerts and sporting events per year, drawing anywhere from a few thousand to more than 17,500 people. The Giants’ Pier 48 proposal involves 27 acres of new development, including retail, office, Anchor Brewing, and about 1,500 homes. And Forest City’s proposal for Pier 70 involves about 1,000 homes, 2.2 million square feet of office space, and 275,000 square feet of retail and light manufacturing.

Addressing the waterfront’s transportation challenges, Board of Supervisors President David Chiu told the Guardian, “It is possibly the most difficult and important question surrounding the Warriors project, and I’ve encouraged all parties to make sure they get it right.”

Wiener’s dance mix: more DJs mixed with fines for “bad actors”

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DJs could proliferate in San Francisco’s bars, restaurants, coffee shops, and plazas under legislation that Sup. Scott Wiener introduced today to include DJs under the city’s limited live music permits, but the legislation also includes new enforcement powers to crackdown on underground parties and other unpermitted events.

Limited live music permits – which are far cheaper and easier to obtain than the city’s full-blown Place of Entertainment permits ($385 compared to around $2,000 for the POE permits) – were created in 2011 by legislation sponsored by then-Sup. Ross Mirkarimi, allowing amplified performances until a 10pm curfew. But DJs were left out, despite their prevalence in San Francisco, something Wiener is now trying to correct.

“Entertainment and nightlife are an essential part of San Francisco’s cultural and economic vibrancy,” Wiener said today in a press release announcing the proposal. “This legislation fosters live entertainment while also heightening our ability to monitor and regulate bad actors.”

It’s that last part that doesn’t sit well with everyone, particularly given San Francisco’s pervasive culture of throwing underground parties, which are key fundraising tools for grassroots efforts such as Burning Man camps but which are the targets of periodic crackdowns by the SFPD and other agencies. It seems that when it comes to nightlife, we always have to take some medicine whenever City Hall offers a spoonful of sugar.

The legislation would give the Entertainment Commission the authority to levy $100 fines to those involved with unpermitted parties, either in established clubs or underground warehouses, whereas now the commission only has the authority to punish those who have permits for violating them.

“Punishing a DJ playing at a party in which the promoter didn’t get the proper permits (perhaps unbeknownst to the DJ), would be unfair and inappropriate, in my opinion,” was how DJ/Promoter Syd Gris from Opel Productions and Opulent Temple reacted to the legislation.

But Entertainment Commission Executive Director Jocelyn Kane told us she doesn’t expect to fine an DJs. While she asked Wiener for those enforcement powers, they are simply a way of encouraging promoters and business owners to get permits. “We’re not into punishment, we’re into compliance,” she said, adding that this is simply seeking authority to do administratively what the SFPD and California Alcoholic Beverage Control Administration can now to criminally and civilly.

Tom Temprano, president of the Harvey Milk LGBT Democratic Club and a DJ/promoter at the popular Hard French parties, told us “where I really want clarification is on the new enforcement powers for the commission,” although he agreed with Kane that the commission generally works cooperatively with the nightlife community, far more than either the SFPD or ABC.

“All in all, it’s a really good step in the right direction,” Temprano said of the Wiener legislation. “It seems really positive. As a DJ, allowing DJs to be used for limited live performances is just common sense.”

Kane said the legislation will allow music to flourish in the city, from outdoor plazas to small venues, many of which have used DJs illegally. “We’ll be able to legalize that and bring them into the fold,” she said. “There always have been places that use a DJ like a jukebox.”

In addition to the relatively cheap application cost compared to POE permits, limited live music perhaps are quick and easy to obtain and don’t necessarily require city inspections paid for by the applicant.

In his press release, Wiener praised the importance of nightlife to the city economy and cited a city study he commissioned last year which found that nightlife has a $4.2 billion impact on San Francisco, employing 48,000 people and furnishing the City with $55 million in tax revenue annually.

“We need to encourage a flourishing nightlife that not only marks San Francisco as a cultural capital, but also creates jobs and brings in revenue for essential City services,” Wiener said. “These amendments are part of that broader strategy.”

Western SoMa Plan changed to lessen development impacts to nightlife and Muni

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The Western SoMa Community Plan had its first hearing before the Board of Supervisors Land Use and Economic Development Committee today, with dozens of speakers praising the eight-year citizen-based planning effort that developed it but with much of the testimony criticizing the plan’s emphasis on facilitating housing development to the exclusion of other goals.

As we’ve reported, the nightlife community has in recent months been pushing for changes to the plan that would better protect nightclubs from complaints and pressure from nearby residents, particularly along 11th Street. Area Sup. Jane Kim has supported that effort and those concerns were echoed by Sup. Scott Wiener, the committee chair and a strong nightlife advocate.

“I have had significant concerns about this plan…and I’m hoping we can address them over the course of this hearing,” Wiener said.

Wiener also opened another front of attack on the plan by noting that it doesn’t adequately pay for the impact that thousands of new housing units would have on Muni and other aspects of the transportation system. In particular, he criticized a policy in the plan that would let 13 large properties get increased density in exchange for higher affordable housing fees that would be offset by lower transit and other impact fees paid to the city.

“What are we doing to make sure our transportation system keeps pace?” Wiener asked of Planning Department staff, later asking again, “Where would we get the money to improve transit for these increased residents?” Wiener didn’t get back any answers that seemed to satisfy him, so he asked for a more detailed report when the plan returns next week for a second hearing. That concern was echoed by the third committee member, Board President David Chiu, who said, “Building housing without money for transit will lead to long-term problems.”

The concern seemed to revive a losing fight that Wiener led in December over expanding who pays the city’s Transit Impact Development Fee, which pitted transportation advocates against affordable housing activists. Fernando Marti of the Council of Community Housing Organizing rued the revival of that conflict. “We’ve been here before, pitting [transportation against affordable housing needs] as if it were a zero sum game,” Marti told the committee, noting the importance of policies to balance out market rate housing and calling it a “plan for stability in a neighborhood facing large-scale gentrification.”

Marti’s COCHO colleague Peter Cohen, who was closely involved with the plan’s creation, also urged the committee not to tweak the housing policies or the revenues it creates for affordable housing. “This is a major upzoning,” Cohen said. “In 20 years, perhaps all the market rate stock [of housing in the plan area] will be gentrified.”

But the issue raised most often during more than two hours of public testimony involved nightlife and the need to strike a better balance between housing development and entertainment, much of the input stirred up by the California Music and Culture Association, a industry-backed trade group that formed largely in response to crackdowns on clubs in SoMa.

“It’s often said San Francisco can plan more for fun, and this is a great opportunity to do that,” said Guy Carson, a CMAC founder who owns Cafe du Nord. Longtime nightlife advocate Terrence Alan took part in the Western SoMa Task Force for four years before resigning in frustration, and he told the committee, “We are bringing up issues we felt marginalized in bringing up earlier.”

But several people involved with the task force, as well as speakers representing development interests, urged supervisors to pass the place without significant modifications. “There are dozens or hundreds of compromises in this plan,” Cohen said, urging supervisors not to upset that careful balance.

Task Force Chair Jim Meko – whose leadership was widely praised in the testimony – detailed the extensive outreach and detailed work that went into the plan, and offered a simple plea to the committee: “Please pass this plan so we can get on with our lives.”

The committee unanimously voted to support the change made to the plan by the Planning Commission to ban new residential development on the raucous 300-block of 11th Street, but to reverse the commission’s decision to grandfather in one final 24-home residential project on that block, in the so-called “purple building” at 340 11th Street. A number of other small changes to the plan were also unanimously approved.

But Kim objected to Wiener’s motion to eliminate the plan provision that would reduce the transit and open space fees and raise the affordable housing fees that developers of those 13 large parcels would pay. “I don’t think it’s good policy to reduce transit impact fees when we’re increasing population,” Wiener said.

“This has gone through an extensive community process,” Kim countered, adding that, “I hate that we’re always having this discussion about transit versus affordable housing.”

But Chiu sided with Wiener and the amendment was approved on a 2-1 vote with Kim in dissent. Yet Chiu held open the possibility of changing his mind next week when the plan returns to committee for a final vote – the delay prompted by the other revisions in the plan – when Planning staff will provide more information on the fee structure and its impacts.

If the committee gives final approval to the plan next Monday, it could be before the full board for approval the next day.

Supervisors consider Western SoMa Plan, lots of new condos, and “the purple building”

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The fate of the “purple building” – which has become caught up in the clash between nightlife and residential interests on the clubgoer-saturated 300-block of 11th Street – remains undecided as the Western SoMa Community Plan heads into its first hearing before the Board of Supervisors Land Use and Economic Development Committee on Monday.

As we reported in this week’s paper, a unique citizen-based task force has spent the last eight years developing the plan, which will allow thousands of units of new housing – most of it along Folsom Street – to move forward once the plan gets final approval from the board. But the California Music & Culture Association and other nightlife advocates successfully amended the plan to ban new housing on that 11th Street block as the Planning Commission approved it in December.

Yet the commission also decided to grandfather in a 24-home project at 340 11th Street, the so-called purple building, which nightlife advocates say would put those new residents on a collision course with Slim’s, DNA Lounge, and other big nightclubs on that busy block. As we went to press, both sides and District 6 Sup. Jane Kim were all hopeful that a compromise was imminent, likely involving switching from residential to office.

But with just days to go before that hearing, building owner Tony Lo still hasn’t decided whether to make the change or fight it out in front of the supervisors. His architect John Goldman – whose residential design for the site was placed on hold by the city since shortly after he submitted it in 2005 – had hoped to hear by now but he’s still waiting for Lo to make the call.

“Based on my analysis, it looks feasible to change to offices if you want to do it, and I mean feasible financially and architecturally and planning-wise,” Goldman today told the Guardian, referring to what he told Lo.

Meanwhile, Western SoMa Task Force Chair Jim Meko – who has not been supportive of tweaking the plan after all the work he oversaw – yesterday sent out an email blast to stakeholders and supporters urging them to attend Monday’s hearing and show support for the plan.

“You don’t often get a chance to participate in making decisions about your own neighborhood from start to finish. Some special interest groups are expected to come out of the woodwork to take pot shots at the Plan so the hundreds of participants in this process need to make their voices heard. Your testimony at the hearing next week will make all the difference,” Meko wrote.

The hearing starts at 10am in board chambers in City Hall. This item might have been heard later in the day considering the agenda opens with a continuation of the controversial condo lottery bypass legislation, on which Board President David Chiu and others have been trying to forge a compromise between tenant advocates and homeowner groups. But committee Chair Scott Wiener just told us that item “will be continued. No compromise yet.”

Plan C, and the C stands for Condo conversions

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No politically savvy San Franciscan has ever really bought the rhetoric espoused by the so-called “moderate” political action group Plan C that it’s all about finding middle ground between what its website calls “a ‘downtown’ machine, and a far-left, dogmatic, so-called ‘progressive’ machine.” As if that unbalanced labeling wasn’t enough of a indicator, the fact that its funding comes from all the biggest cogs in the downtown machine should be.

But now, as the group’s members aggressively work to open the flood gates on converting San Francisco’s rent-controlled apartments into privately controlled condominiums, it’s become more clear than ever that the C stands for Condo and that the financially motivated group is moving the agenda of the real-estate and investment interests that dominate its Board of Directors.

City Hall sources connected to the ongoing meetings that Sups. David Chiu and Mark Farrell have been holding with stakeholders on the controversial condo lottery bypass legislation sponsored by Farrell and Sup. Scott Wiener say there were indications of possible compromise that came out of the first mediation meeting.

That one primarily involved the tenant advocates who have led the charge against the legislation and the representatives for tenancy-in-common owners seeking to buy a bypass to the city’s condo conversion lottery that only allows 200 new condos per year. There were whispers that came from that meeting of a compromise that would allow a one-time bypass in exchange for shutting down the lottery for several years, or indexing it to the construction of new housing for low-income San Franciscans.

Since then, the sources say, Plan C and their partners in the real-estate industry have dominated the meetings with their dogmatic advocacy for indefinitely allowing the maximum number of condo conversions. Despite public statements by Farrell and Wiener that they just want to clear out some backlog without encouraging more landlords to convert apartments to TICs in the future, Plan C just wants to feed more affordable apartments into the expensive real estate market.

Some basic research on the group and its Board of Directors seems to show that this position is about financial self-interest rather than values or ideology.

Plan C Co-Chair Steve Adams is a regional manager for Sterling Bank & Trust, which has consistently been one of the city’s top TIC lenders and which recently sponsored a forum encouraging more conversion of apartments, promising to increase its loan volume, and painting a rosy picture of the TIC financing market that belies Wiener’s claims that TIC owners can’t get financial relief and need the city’s intervention.

One of the key presenters at that symposium was TIC attorney Lyssa Paul, who is also a Plan C board member and someone who makes her living creating more TICs. Other members of the 12-member board who make their living in the real estate industry and benefit directly for TICs conversions are Amanda Jones and Brian Hecktman. Other bankers or investment managers on the board that benefit from the TIC business are Ashley Lyon and Bob Gain.

Co-Chair Mike Sullivan is a venture capital attorney who created Plan C in 2001 and used it to help then-Sup. Gavin Newsom sell his Care Not Cash homelessness plan and run for mayor. Randy Brasche is in software marketing and got involved in the issue being frustrated with the condo lottery and [[CORRECTION/DELETION: last year]] forming the San Francisco TIC Coalition.

Board member David Fix is [[CORRECTION/ADDITION: the former]] president of the Small Property Owners of San Francisco, so it’s possible that his interest is as much ideological as financial, particularly given his past public statements against rent control. That may also be the case with Baha Hariri, a principal at A&F Properties and the former political director of the downtown-funded-and-created Committee on Jobs.

Among the downtown players that fund Plan C, which was sitting on $73,872 in the bank as of the start of this year, are the Committee on Jobs, the San Francisco Association of Realtors, PG&E, San Francisco Apartment Association, Small Property Owners of San Francisco, Shorenstein Realty, the San Francisco Chamber of Commerce, and venture capitalist Ron Conway.

So Plan C appears to be little more than Plan A’s deceptive effort to push Plan Condo. BTW, I’ve been waiting more than 24 hours now to get a call back from the Plan C board, after leaving a message with its only paid administrator, Richard Magary, who told me Sullivan and his colleagues are all quite busy now. But I’ll be happy to update this post if and when I hear back.

2/22 UPDATE: Still no call back from Plan C, but Fix made a comment requesting the two minor corrections above. C’mon, Plan C, gimme a call, what are you so afraid of?

Supes scramble to find TIC deal

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Some San Francisco supervisors are scrambling to find an acceptable compromise that would prevent condo-conversion legislation by Sups. Scott Wiener and Mark Farrell from becoming a bitter battle that could be a no-win situation for centrists.

Board President David Chiu is meeting with tenant groups and trying to craft an alternative to the proposal, which would allow some 2,000 tenancy in common units to convert to condominiums. Wiener says the legislation is needed to provide housing stability to people in the almost-but-not-quite-a-condo world of TICs. Tenant activists who have met with Chiu say he’s discussing ways to limit speculation, which might include a five-year ban on the resale of converted condos. But that won’t be anywhere near enough for the tenant groups.

In fact, tenant and landlord groups are both talking to Sup. Norman Yee, who will be one of the swing votes, and who could introduce a series of amendments to the Wiener/Farrell bill that would be more palatable to tenants.

“They’ve had a couple of meetings,” Yee told me. “We’re just examining the issues to see if there’s a compromise. It would be great if we could work something out so the supervisors could feel better about voting on this.”

But any deal, Ted Gullicksen of the San Francisco Tenants Union told me, would require “structural reform of the future condo-conversion process.”

Yee could probably get away with that — he’s never relied on landlords or real-estate interests for his campaign money, and there aren’t that many TIC owners in his district, which is largely single-family homes. This won’t be a vote that will make or break his future in District 7.

On the other hand, it could be a huge issue for Sup. London Breed, who represents a district with a huge majority of tenants and the most progressive voting record in the city. Breed insists that she hasn’t made up her mind on the issue, and she told me she agrees she’s on the hot seat here: Much of her political and financial support came from Plan C and real-estate interests that want more condo conversions, but she would face furious policial fallout if she voted against tenants. “I am open to a compromise, but only if it’s good policy for the city,” she said.

Supervisors David Campos and John Avalos are strongly against the TIC bill, and it’s likely that Sups. Eric Mar (who got immense support from tenants in his recent re-election) and Jane Kim (who didn’t support the measure in committee) will oppose it unless it’s altered in a way that tenants can accept.

Naturally, Farrell and Wiener are on the yes side, as is, almost certainly, Sup. Carmen Chu.

That leaves Breed, Chiu, Yee, and Sup. Malia Cohen — and three of them have to vote Aye for the bill to pass. Chiu wants to run for state Assembly from the tenant-heavy side of the city, but, as always, he’s looking for a way to avoid an ugly fight.

The problem is that the tenants aren’t going to sign off on anything modest; if they’re going to accept the conversion of 2,000 units that used to be rental housing, they’re going to want to be absolutely certain it doesn’t happen again — and that there are new rules in place that halt the rampant assault on existing rent-controlled housing.

So either the folks in the center — Yee, Breed, Chiu, and Cohen — are going to have to force the landlords to accept some long-term reforms that they won’t like, or politicans like Breed are going to be forced to take a yes or not vote that could come back to haunt them.

 

 

 

 

Earthquake safety legislation could hit renters hard

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Pending legislation that would require seismic retrofitting of thousands of properties at the building owners’ expense could hit renters harder than anyone, causing evictions and increasing rents by up to 10 percent, impacts that tenant advocates are trying to get the Mayor’s Office and sponsoring Supervisors David Chiu and Scott Wiener to address.  

As stated in the Earthquake Safety Implementation Program (ESIP) Workplan, retrofit costs are expected to range from $10,000 to $20,000 per dwelling unit. In a five-unit building, this could add up to as much as $100,000. According to a public statement by Mayor Ed Lee, before the first retrofit is required, they will “develop financial incentives and assistance programs to help defray costs for property owners.”

But with apartment owners allowed to pass the cost of the work on to their tenants — a class of San Franciscans already being hit with rising rents, a wave of evictions, and legislation that would encourage more conversation of apartments into condos — this earthquake safety measure could make their situation even worse.

“We have concerns about this, mainly that landlords will be able to pass on the costs to tenants and that landlords will use it as a pretext to evict long-term tenants with affordable rents, so we’ll be working to increase tenant protections in this plan,” says Ted Gullicksen from the San Francisco Tenants Union.

According to the San Francisco Rent Board (SFRB) website, for seismic work that is required by law, 100 percent of the capital improvement cost may be passed through to the tenants, regardless of property size, over a period of 20 years. The increases are subject to an annual limitation of 10 percent of the tenant’s base rent. Gullicksen says that rent increases will be up to $100 a month for many tenants, which is on top of the annual 1.9 percent increase landlords are allowed to impose in rent-controlled apartments.

Another worry for long-term tenants is the possibility of eviction. The SFRB also states some of the just cause evictions these landlords could use would be “…non-payment or habitual late payment of rent… to perform capital improvements which will make the unit temporarily uninhabitable while the work is being done, and… to perform substantial rehabilitation of a building that is at least 50 years old, provided that the cost of the proposed work is at least 75 percent of the cost of new construction.” This would mean rent increases and nearly any construction could be the reason a long-term tenant would be evicted.

This seismic retrofitting could drive up rent prices around the city and be one more obstacle tenants have to face. As Gullicksen said, “I think the mayor and sponsors don’t understand the impact this will have on tenants, so we will look to educate them and press for amendments to lower the rent increases.”

No sympathy for TICs

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Got a fascinating letter from a local lawyer named Richard Hurlburt, who has some thoughts on the TIC-condo conversion legislation sponsored by Sups. Scott Wiener and Mark Farrell. He writes:

I’m a tenant’s rights lawyer and real estate broker. Whenever possible I help tenants facing eviction buy their TIC units. I also own and reside in a TIC unit. My building has twelve units and would not be affected by the proposed law.

I just read the actual text of the legislation sponsored by Sups. Farrell & Wiener and I’m against it.

TIC financing isn’t that difficult anymore. Fractional loans are the norm and not that much more expensive than condominium loans. It does cost a little more to finance a TIC, but the units cost less to begin with. So I don’t really see a hardship on the part of TIC owners who generally have smaller mortgages because they paid less for their units to start with.

The supposed $20,000 per unit condo conversion impact fee to benefit low-income housing is largely illusory. The proposed law contains a reduction for each year the building has participated in the lottery, so a building that participated in the lottery for five years, which is the majority, would get an 80% reduction and pay only $4,000.

Although the law would provide lifetime leases for the few tenants occupying converted units, this benefit is seriously disproportionate. For the tenants getting lifetime leases, good for them but that is a huge windfall for a very few lucky individuals. For tenants generally the legislation is actually quite bad. Once any of the affected units becomes vacant, all future tenants would be exempt from the rent increase protections of the Rent Ordinance. And allowing certain owners to bypass the condo lottery will only encourage more Ellis-TIC conversions.

 

Friends of London Breed

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Got an interesting email invite: A group of the most pro-downtown, pro-landlord, conservative folks in town is holding a fundraiser for Sup. London Breed, who represents the most progressive district in the city.

Oh, and none of the members of the Host Committee lives in or has any direct connections to District Five.

The Feb. 25 event is at the home of Wade and Lorna Randlett. Wade Randlett is a scorched-earth political operative who created a group called SFSOS with the late Republican GAP mogul Don Fisher. His wife was the spokesperson for disgraced former school superintendant Arlene Ackerman. Randlett tried to shoot down a school bond after Ackerman was fired. He was the secret force behind an effort to recall former Sup. Sophie Maxwell.

Also on the list: Ron Conway and Anne Moeller Caen, who is a terrible, pro-PG&E member of the SFPUC.

Oddly, powerhouse lawyer Joe Cochette is on the invite, as is 49ers tight end (and generally cool guy) Vernon Davis.

Oh, and Mayor Ed Lee, who, I’m told, can’t stand Wade Randlett. Which puts him in good company.

I called Sup. Breed and asked her about the event, and she told me she met Randlett working on the first Obama campaign, “and he volunteered to do this.” She said she needed the money for office essentials like extra computer screens and a couch, and she has to pay off her inaugural celebration.

As she normally does, Breed went out of her way to say that her votes are not for sale, and that she won’t do the bidding of the people who give her money. “If you want to hold a fundraiser for me, I’d be happy to take your money too,” she said. As for a host committee that might be offensive to the majoirty of her constituents, she said “it is what it is.”

In the end, of course, Breed will be — and should be — judged by her votes, not by her associates, and we’ll have an excellent indication of where she’s headed when Sup. Scott Wiener’s TIC legislation comes before the board. But in the meantime, the reason this is all relevant (other than the fun of watching Ed Lee and Wade Randlett try to get along) is that it indicates that some very bad actors think (rightly or wrongly) that Breed is their ally.

 

 

 

Out of place

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news@sfbg.com 

In his State of the City address last week, Mayor Ed Lee cheerfully characterized San Francisco as “the new gravitational center of Silicon Valley.” He touted tech-sector job creation. “We have truly become the innovation capital of the world,” Lee said, “home to 1,800 tech companies with more than 42,000 employees — and growing every day.”

From a purely economic standpoint, San Francisco is on a steady climb. But not all residents share the mayor’s rosy outlook. Shortly after Lee’s speech, renowned local author Rebecca Solnit published her own view of San Francisco’s condition in the London Review of Books. Zeroing in on the Google Bus as a symbol of the city’s housing affordability crisis, she linked the influx of high-salaried tech workers to soaring housing costs. With rents trending skyward, she pointed out, the dearth of affordable housing is escalating a shift in the city’s cultural fabric.

“All this is changing the character of what was once a great city of refuge for dissidents, queers, pacifists and experimentalists,” Solnit wrote. “It has become increasingly unaffordable over the past quarter-century, but still has a host of writers, artists, activists, environmentalists, eccentrics and others who don’t work sixty-hour weeks for corporations — though we may be a relic population.”

LIMITED OPTIONS

The issue of housing in San Francisco is highly emotional, and there is perhaps no greater flashpoint in the charged debate than Ellis Act evictions.

When the housing market bounces upward, Ellis Act evictions tend to hit long-term tenants whose monthly payments, protected by rent control, are a comparative bargain. Even if they’ve submitted every payment on time and upheld every lease obligation for 20 years, these renters can find themselves in the bind of being forced out.

And they don’t just lose their homes; often they lose their community. San Francisco has become so expensive that many Ellis Act victims are tossed out of this city for good.

Enacted in 1986, the state law allows a landlord to stop renting units, evict all tenants, and sell the building for another purpose. Originally construed as a way for landlords to “go out of business” and move into their properties, the Ellis Act instead gained notoriety as a driving force behind a wave of evictions that slammed San Francisco during the tech boom of the late 90s. Between 1986 and 1995, just 29 Ellis evictions were filed with the San Francisco Rent Board; in the 1999-2000 fiscal year alone, that number ballooned to a staggering 440.

Under the current tech heyday, there are indications that Ellis Act evictions are gaining fresh momentum. The San Francisco Rent Board recorded 81 this past fiscal year, more than double that of the previous year, and there appears to be an upward trend.

TIC CONTROVERSY

Buildings cleared via the Ellis Act are typically repackaged as tenancies-in-common (TIC), where several buyers jointly purchase a multi-unit residence and each occupy one unit. Realtors often market TICs as a path to homeownership for moderate-income individuals, creating an incentive for buyers to enter into risky, high-interest shared mortgages in hopes of later converting to condos with more attractive financing.

The divide between TIC owners and renters came into sharp focus at a contentious Jan. 28 hearing, when a Board of Supervisors committee met to consider legislation that would allow some 2,000 TIC units to immediately convert to condos without having to wait their turn in a requisite lottery system.

One TIC owner said he was financially burdened, but had only entered into the arrangement because “I wanted to stay here and raise my family, but we couldn’t afford a single family home.” Yet tenants brought their own set of concerns to the table, saying the temptation to create TICs was putting a major dent in the city’s finite stock of rent-controlled units — the single greatest source of affordable housing in San Francisco.

“My feeling is, let’s stop doing TICs,” Tommi Avicolli Mecca, a tenants right activist with the Housing Rights Committee, told the Guardian following the hearing. “The city has to just start making sure that the condos that are built are the kind of thing [TIC buyers] can afford. Instead, we cannibalize our rental stock? That’s a reasonable way? You evict one group of people to house another: How does that make sense?”

The grueling five-hour hearing illustrated the sad fact that San Franciscans in a slightly better economic position were being pitted against economically disadvantaged renters. The two groups were bitterly divided, and all seemed weary, furious, and frustrated by their housing situations.

The condo-conversion legislation, co-sponsored by Sups. Scott Wiener and Mark Farrell, did not move forward that day. Instead, Board President David Chiu made a motion to table the discussion until Feb. 25, to provide time for “an intensive negotiation process.” Chiu, who rents his home, added: “While I myself would like to become a homeowner someday … I do not support the legislation in its current form.”

Sup. Jane Kim sought to appeal to the tenants as well as the TIC owners. “It’s very tragic that we have set up a situation where [TICs and renters] are pitted against one another,” she said. She hinted at what a possible alternative to might look like. “We should be looking at a ban of scale,” she said. “If we allow 1,800 potential units to go thru this year, are we willing to do a freeze for the next 8 to 10 years?”

It’s unclear what will happen in the next few weeks, but if this legislation makes it back to the full board in some form, the swing votes are expected to be Sups. London Breed, Malia Cohen and Norman Yee.

CASH OR EVICTION?

New protections were enacted following the late-90s frenzy to discourage real-estate speculators from using the Ellis Act to turn a profit on the backs of vulnerable seniors or disabled tenants. Yet a new wave of investors has discovered they can persuade tenants to leave voluntarily, simply by offering buyouts while simultaneously wielding the threat of an Ellis Act eviction. “The process got more sophisticated,” explains San Francisco Rent Board Deputy Director Robert Collins.

Once a tenant has accepted a check in lieu of eviction, rent-controlled units can be converted to market rate, or refurbished and sold as pricey condos, without the legal hindrances of an eviction blemish. Buyouts aren’t recorded with the Rent Board, and the agency has no real guidance for residents faced with this particular dilemma. “We don’t have the true number on buyouts,” says Mecca. “We don’t know how many people have left due to intimidation.”

Identity-wise, renters impacted by the Ellis Act defy categorization. A contingent of monolingual Chinese residents rallied outside City Hall recently to oppose legislation they believed would give rise to evictions; in the Mission, many targeted tenants are Latinos who primarily speak Spanish. From working immigrants, to aging queer activists, to disabled seniors, to idealists banding together in collective houses, the affected tenants do have one thing in common. When landlords or real-estate speculators perceive that their homes are more valuable unoccupied, their lives are susceptible to being upended by forces beyond their control.

The upshot of San Francisco’s affordability crisis is a cultural blow for a city traditionally regarded as tolerant, forward thinking, and progressive. In the words of Rose Eger, a musician who faces an Ellis Act eviction from her apartment of 19 years, “it changes the face of who San Francisco is.

Out of the Castro

By Tim Redmond

You can’t get much more Castro than Jeremy Mykaels. The 62-year old moved to the neighborhood in the early 1970s, fleeing raids at gay bars in Denver. He played in a rock band, worked at the old Jaguar Books, watched the rise of Harvey Milk, saw the neighborhood transform and made it his home.

He’s lived in a modest apartment on Noe Street for 17 years, and for the past 11 has been living with AIDS. Rent control has made it possible for Mykaels, who survives on disability payments, to remain in this city, in his community, close to the doctors at Davis Hospital who, he believes, have saved his life.

And now he’s going to have to leave.

In the spring of 2011, his longtime landlords sold the building to a real-estate investment group based in Union City — and the new owners immediately sought to get rid of all the tenants. Two renters fled, knowing what was coming; Mykaels stuck around. In September of 2012, he was served with an eviction notice, filed under the state’s Ellis Act.

He’s a senior, he’s disabled, his friends are mostly dead and his life is in his community — but none of that matters. The Ellis Act has no exceptions.

Mykaels spent a fair amount of his life savings fixing up his place. The walls are beige, decorated with nice art. Dickens the cat, who is chocolate brown but looks black, wanders in and out of the small bedroom. Mykaels has been happy there and never wanted to leave; “this,” he told me, “is where I thought I would live the rest of my life.”

There’s no place in the Castro, or even the rest of the city, where he can afford to move. Small studios start at $2,500 a month, which would eat up all of his income. There is, quite literally, nowhere left for him to go.

“A lot of my friends have died, or moved to Palm Springs,” he said. “But this is where my doctors are and where I’m comfortable. I’m not going to find a support system like this anywhere else in the world.”

Mykaels is the face of San Francisco, 2013, a resident who is not part of the mayor’s grand vision for bringing development and high-paying jobs into the city. As far as City Hall is concerned, he’s collateral damage, someone whose life will have to be upended in the name of progress.

But Mykaels isn’t going easily. The former web designer has created a site — ellishurtsseniors.org — that lists not only his address (460 Noe) and the names of the new owners (Cuong Mai, William H. Young and John H. Du) but the addresses of dozens of other properties that are facing Ellis Act evictions. His message to potential buyers: Boycott.

“Do not buy properties where seniors or the disabled have been evicted for profit by real estate speculators using the Ellis Act,” the website states.

Mykaels is a demon researcher — his site is a guide to 31 properties with 94 units where seniors or disabled people are being evicted under the Ellis Act. In some cases, individuals or couples are filing the eviction papers, but at least 14 properties are owned by corporations or trusts.

Mai told me that he knew a disabled senior was living in the building when he and his two partners bought it, but he said his plan all along was to evict all the tenants and turn the three-unit place into a single-family house. He said he hasn’t decided yet whether to sell building; “I might decide to live there myself.” (Of course, if he wanted to live there himself, he wouldn’t need the Ellis Act.)

Mai said he “felt bad about the whole situation,” and he had offered to buy Mykaels out. The offer, however, wouldn’t have covered more than a few months of market rent anyplace else in the Castro.

By law, Mykaels can stay in his apartment until September. If he can’t stave off the eviction by then, San Francisco will lose another longtime member of the city community.

 

Dark days in the Inner Sunset

By Rebecca Bowe

The living room in Rose and Willie Eger’s Inner Sunset apartment is where Rose composes her songs and Willie unwinds after playing baseball in Golden Gate Park. Faded Beatles memorabilia and 45 records adorn the walls, and a prominently displayed poster of Jimi Hendrix looms above a row of guitar cases and an expansive record collection.

It’s a little worn and drafty, but the couple has called this 10th Ave. apartment home for 19 years. Now their lives are about to change. On Jan. 5, all the tenants in their eight-unit building received notice that an Ellis Act eviction proceeding had been filed against them.

“The music that I do is about social and political things,” explains Rose, dressed from head-to-toe in hot pink with a gray braid swinging down her back. Determined to derive inspiration from this whole eviction nightmare, she’s composing a song that plays with the phrase “tenants-in-common.”

Cindy Huff, the Egers’ upstairs neighbor, says she began worrying about the prospect of eviction when the property changed hands last summer. Realtor Elba Borgen, described as a “serial evictor” in online news stories because she’s used the Ellis Act to clear several other properties, purchased the apartment building last August, through a limited liability corporation. The notice of eviction landed in the mailbox less than six months later. (Borgen did not return Guardian calls seeking comment.)

“With the [average] rent being three times what most of us pay, there’s no way we can stay in the city,” Huff says. “The only option we would have is to move out of San Francisco.” She retired last year following a 33-year stint with UCSF’s human resources department. Now, facing the prospect of moving when she and her partner are on fixed incomes, she’s scouring job listings for part-time work.

The initial notice stated that every tenant had to vacate within 120 days, but several residents are working with advocates from the Housing Rights Committee in hopes of qualifying for extensions. Huff and the Egers are all in their fifties, but some tenants are seniors—including a 90-year-old Cuban woman who lives with her daughter, and has Alzheimer’s disease.

Willie works two days a week, and Rose is doing her best to get by with earnings from musical gigs. Both originally from New York City, they’ve lived in the city 35 years. When they first moved to the Sunset, it resembled something more like a working-class neighborhood, where families could raise kids. The recent tech boom has ushered in a transformation, one that Rose believes “changes the face of who San Francisco is.” Willie doesn’t mince words about the mess this eviction has landed them in. “I call it ‘Scam-Francisco,'” he says.

The trio recently joined tenant advocates in visiting Sup. Norman Yee, their district supervisor, to tell their stories. Yee, who is expected to be one of the swing votes on an upcoming debate about condo-conversion legislation vehemently opposed by tenant activists, reportedly listened politely but didn’t say much.

As for what the next few months have in store for the Egers? “I can’t really visualize the outcome,” Rose says. “I can only visualize the day-to-day fight. And that’s scary.”

 

Fighting for a home in the Mission

By Tim Redmond

Eleven years ago, Olga Pizarro fell in love with Ocean Beach. A native of Peru who was living in Canada, she visited the Bay Area, saw the water and decided she would never leave.

Fast forward to today and she’s built a home in the Mission, renting a small room in a basement flat on Folsom Street. The 55-year-old has lived in the building for eight years; polio has left her wearing a leg brace and she can’t climb stairs very well, but she still rides her bike to work at the Golden Gate Regional Center. She’s a sociologist by training; the walls in her room are lined with bookshelves, with hundreds of books in Spanish and English.

The place isn’t fancy, and it needs work, but it’s hard to find a ground-floor apartment in the Mission that’s affordable on a nonprofit worker’s salary. Since 2011, when she moved in, she and her three housemates have been protected by rent control. And Pizarro’s been happy; “I love the neighborhood,” she told me.

The letter warning of a pending eviction arrived Jan. 16. A new owner of the building wants to turn the place into tenancies in common and is prepared to throw everyone out under the Ellis Act. There’s no place else in town for Pizarro to go.

“I’ve looked and looked,” she said. “The cheapest places are $2,500 a month or more. Maybe I’ll have to move out of the city.”

Pizarro’s building is owned by Wai Ahead, LLC, a San Francisco partnership registered to Carol Wai and Sean Lundy. I couldn’t reach Wai or Lundy, but their attorney, Robert Sheppard, had plenty to say. “San Francisco is going the way of New York,” he told me. “Manhattan is full of co-ops that used to be rentals, and lower-income people are moving to Brooklyn and Queens. That’s happening here with Oakland and further out.” He argued that TICs, like co-ops, provide home-ownership opportunities for former renters.

Sheppard, who for years represented tenants in eviction cases, said the Ellis Act is law, and America is a capitalist country, and “as long as there is a private housing market, there will be shifts of people as the housing market shifts.” He agreed that it’s not good for lower-income people to lose their homes, but “the poor will always be hurt by a changing economy. It’s called evolution.”

Pizarro told me she’s shocked at how expensive housing has become in the Mission. “It’s gotten so gentrified,” she said. “People show up in their BMWs. It’s starting to feel very isolated.”

She’s fighting the eviction. “I didn’t intend it to be this way,” she explained. “I just want to live here.” Lacking any family in the area, the Mission has become her community — “and I’m frustrated by the violence of how expensive it is.”

 

Affordability goes out of style

By Rebecca Bowe

Hester Michael is a fashion designer, and her home doubles as a project space for creating patterns, sewing custom clothing, weaving cloth, and painting. She’s lived in her Outer Sunset two-bedroom unit for almost two decades, but now she faces an Ellis Act eviction. Michael says she initially received notice last June. The timing was awful -– that same month, her husband passed away after a long battle with terminal illness.

“I’ve been here 25 years. My friends are here, and my business. I don’t know where else to go, or what else to do,” she says. “I just couldn’t picture myself anywhere else.”

Michael rents the upstairs unit of a split single-family home, a kind of residence that normally isn’t protected by rent control. Yet she leased the property in 1994, getting in under the wire before that exemption took effect. Since she pays below-market-rate rent in a home that could be sold vacant for top dollar, a target was essentially inscribed on her back when the property changed hands in 2004. That’s about when her long battle with the landlords began, she says.

From the get-go, her landlords indicated that she should look for a new place, Michael says, yet she chose to remain. The years that followed brought things falling into disrepair, she says, and a string of events that caused her feel intimidated and to fear eviction. Finally, she consulted with tenant advocates and hired an attorney. A complaint filed in superior court alleges that the property owners “harassed and retaliated [Michael] when she complained about the defective and dangerous conditions …telling [her] to move out of the property if she did not like the dangerous conditions thereat … repeatedly making improper entries into [the] property, and wrongfully accusing [her] of causing problems.”

Records show that Angela Ng serves as attorney in fact for the property owner, Ringo Chung Wai Lee. Steven Adair MacDonald, an attorney who represents both landlords and tenants in San Francisco housing disputes, represents the owners. “An owner of a single family home where the rent is controlled and a fraction of market has virtually no other choice but to terminate the tenancy,” MacDonald said when the Guardian reached him by phone. “They’ve got to empty it, and the only way to empty it is the Ellis Act.”

While Michael received an extension that allows her to remain until June 5, she fears her custom sewing business, Hester’s Designs, will suffer if she has to move. There’s the issue of space. “I have so much stuff in this house,” she says. And most of her clients are currently located close by, so she doesn’t know where her business would come from if she had to relocate. “A lot of my clients don’t have cars,” she says, “so if I live in some suburb in the East Bay, forget it. I’ll lose my business.”

The prospect of eviction has created a major dilemma for Michael, who first moved to San Francisco in 1987. While moving to the East Bay seems untenable, she says renting in San Francisco feels out of reach. “People are renting out small, tiny bedrooms for the same price as I pay here,” she says. With a wry laugh, she adds: “I don’t think there’s any vacant apartments in San Francisco -– unless you’re a tech dude and make seven grand a month.”

Editor’s notes

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tredmond@sfbg.com

EDITORS NOTES People who rent apartments aren’t second-class citizens. In fact, under San Francisco laws, they have (and ought to have) many of the same rights as the landed gentry.

If you rent a place in this city, and you pay the rent on time, and abide by the terms of the lease, you should be able to stay in your home (and yes, it IS your home) as long as you want. The rent can only go up by a modest amount every year.

Landlords know that when they enter into rental agreements. Accepting a tenant means acknowledging that the person may want to say in his or her apartment for years, maybe for life; the rent the landlord sets for that unit has to be adequate to cover a share of the mortgage, expected maintenance costs, and a reasonable return on the owner’s investment.

When you buy a piece of rental property in the city, you are told that tenants live there; you’re told what rent they pay, you’re informed that you can’t raise it much, and unless your utterly ignorant of local law, you realize that the tenants have, in effect, lifetime leases since you can only evict them for “just cause” — which does not include your desire to make more money.

If the numbers don’t pencil out under those conditions, they you shouldn’t buy the place.

That’s how a sane rental housing system ought to operate. Unfortunately, the state Legislature has undermined local rent-control laws with the Ellis Act, which allows landlords to evict all their tenants, cease renting altogether, and turn the place into condominiums. Or, since there are limits on condo conversions in this city, into tenancies in common, which are not limited at all.

Sup. Scott Wiener wants to make it easier to turn TICs into condos; he says the poor TIC owners are having a tough time and can get better mortgage rates if they rules are changed. I don’t feel bad for them; they knew the rules when they bought their TICs. They have no right to convert to condos; that’s a privilege granted to a limited number each year, by waiting list and lottery. Buy a TIC? You should assume it will remain your ownership model for a long, long time.

The city can’t stop the TIC conversions, but it can set ground rules — for example, local law mandates a payment to tenants who are evicted, which can reach $5,000. Sounds big — but it won’t even pay two months’ rent on a new place in this market.

SO let’s be fair here: If you want to evict a tenant, who has and ought to have the right to a stable place to live, you should pay enough to make that person whole. Calculate market rent on a similar place; subtract the current rent the tenant is paying, and cover the difference — for, let’s say, five years.

If that makes TICs too expensive, and thus lowers property values by making evictions difficult and keeping rents low, fine: Property values are too high in this town anyway. And if it means more stability for lower-income people at the expense of property owners … well, I can live with that.

City considers making building owners do seismic upgrades

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City Hall sources have confirmed the basic details of a San Francisco Public Press report from Friday afternoon that the Board of Supervisors will consider requiring the owners of soft-story buildings of three stories or more to seismically retrofit them by 2020 – at the expense of building owners, something sure to rouse controversy.

The legislation was developed and introduced by the Mayor’s Office and it’s being sponsored by the board’s two most prolific and effective supervisors, Board President David Chiu and Sup. Scott Wiener, which is probably a signal that city officials know this one is going to be “challenging,” as one source told us.

Details are still being hammered out before the measure is introduced at tomorrow’s board meeting, including some of the financing options that would be open to property owners. But after voters in 2010 narrowly rejected Measure A, a bond that would have provided low-cost loans for the seismic retrofits, property owners could be forced to dig deep to ensure their buildings don’t collapse in an earthquake.

Wiener confirmed that the legislation would be mandate on building owners without public money attached: “It would be a mandate that they within a certain time frame do an earthquake retrofit,” Wiener told the Guardian.

As the Public Press reported, the legislation would apply to all wood-framed buildings of three stories or more built before 1978, with smaller buildings and single-family homes exempted. In the most recent print edition of the Public Press, extensive coverage of the city’s earthquake vulnerabilities estimated that about 58,000 San Franciscans live in the nearly 3,000 soft-story buildings deemed dangerous places to be when the next big earthquake hits.

Wiener said city officials have been deeply involved with negotiations with various effected groups, including building owners and their tenants, who could face displacement as the work is done or higher rents if landlords pass through those costs. Wiener said the legislation is bound to evolve as talks and hearings continue: “There are a lot of variables and the introduction is really just a preliminary step.”

Housing stability for all

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OPINION San Francisco is in the midst of a housing affordability crisis. It’s way too expensive to live here, and for those fortunate enough to have housing they can afford, we need to provide stability. This need for housing stability applies to renters as well as homeowners. If we’ve learned anything from the foreclosure crisis, homeowners are not all rich, and they are not all stable in their housing.

Last week’s Guardian argued against legislation I’m co-sponsoring, which provides one-time relief to owners of tenancies-in-common (TICs) — mostly middle- and working-class first-time homeowners who reside in their units — while providing strong protection to renters. While the editorial correctly stressed the need to support rent control, it failed to acknowledge the need to support housing stability for homeowners as well.

Rent control is one of the pillars of our city. It stabilizes housing prices, recognizes that housing isn’t just another commodity, keeps communities intact, and helps maintain San Francisco’s diverse fabric. I’ve long supported rent control, as reflected by my voting record. I supported a series of rent control measures designed to reduce evictions, including requiring sales disclosure of a unit’s eviction history, requiring increased relocation benefits to evicted tenants, outlawing harassment of tenants, and restricting use of the Ellis Act by real-estate speculators. As a member of the Board of Supervisors, I authored successful legislation to ban conversion of rent-controlled units to student dorms and to provide temporary affordable units to renters displaced by disasters.

The current legislation I’m co-sponsoring will provide needed relief to struggling TIC owners, many of whom are experiencing serious financial distress, while protecting the small number of tenants who live in these units. TIC owners have group mortgages, meaning that if one owner defaults, all owners default. They pay double the interest rate other homeowners pay and usually cannot refinance. The legislation will allow them to convert their units to condos and obtain their own mortgages, at lower rates and less foreclosure risk.

While some caricature TIC owners as speculators and wealthy people, that’s untrue. Many TIC owners are quite middle class, former renters who scraped together a down payment to purchase a home. Many are teachers, social workers, public employees, and other workers who are anything but speculators. These are people who, if they didn’t own TICs, would be renting. They aren’t Martians who dropped out of the sky. They’re our neighbors, co-workers, and fellow San Franciscans. They are part of the city’s fabric.

Under the legislation, owner-occupied TICs that are in the condo lottery will be able to convert to condos by paying a fee of $20,000 per unit, with the proceeds dedicated to affordable housing. Buildings with Ellis Act and other problem evictions are typically prohibited from condo converting in San Francisco, under a 2006 law, and that restriction applies to this legislation. In other words, this legislation won’t encourage Ellis Act evictions. Moreover, buildings that aren’t owner-occupied can’t condo convert. Nor can buildings with more than six units. The legislation is one-time in nature and not an ongoing invitation to condo convert.

The legislation covers very few units with tenants — 85% are owner-occupied — and protects this small number of tenants by mandating they receive lifetime leases, with full rent and eviction controls identical to our rent control laws. This protection is stronger than what most tenants receive in buildings that win the condo lottery currently.

Renters and homeowners both deserve housing stability. This legislation moves us in that direction.

Supervisor Scott Wiener represents District 8.