Long time readers of the site will know that while I’ve personally bought and converted a 2 unit TIC building, I’m not a fan of bigger TIC projects because of the artificial challenges that the city has created as an obstacle to condo conversion. Because of the city-imposed lottery on 3 – 6 unit conversions and outright ban on conversion in buildings with more than six units, TICs tend to be the least liquid real estate investment in the city, and that’s before we get into the challenges of TIC financing, re-financing, and the difference in laws that govern TIC disputes vs condo disputes.
Next week – June 12 to be exact – legislation will be introduced by Supervisors Mark Farrell (Supervisor District 2) and Scott Wiener (Supervisor District 8) will be introducing legislation to the San Francisco Board of Supervisors, to allow any TIC building that either participated in or could have qualified for the 2012 condo lottery to convert to condo, provided that a specified fee is paid. And despite what the scaremongers will say, allowing condo conversion is good for the economy, not bad! The folks over at Plan C have more details about the legislation and rally, but if you are a TIC owner and care about condo conversion (if you are a part of the first group, you should automatically be in the 2nd group).
I haven’t seen the proposed condo conversion legislation yet, so I can’t yet endorse it or argue with it – but if it follows the general contours of what has been previously discussed then I’m probably 100% in favor of it. I think TIC owners have a unique opportunity to get the condo conversion laws changed given the fact that the city is strapped for cash and (for better or worse) landlords and homeowners are usually viewed by the supervisors as a piggy bank that can be emptied on a whim. Let’s hope that the fees are reasonable and not egregious, and that ridiculous requirements aren’t tacked on to the legislation to get it through the board of supervisors.
Either way, here are the details on the condo conversion legislation rally:
What: Press Conference with Supervisors Farrell and Wiener
When: Tuesday, June 12, 12:30PM
Where: City Hall steps, Van Ness Street side
Why: Because we need to show up in real numbers to demonstrate the positive impact passing condo conversion legislation can have for the entire city!