For those of you that are so inclined, you can read the draft legislation (pdf file). Here’s a summary of important points about the TIC lottery bypass that is being proposed:
- It does not increase tenant evictions- tenants that want to continue to rent their home in a building that converts through the proposed legislation will receive incredibly generous leases. The way the legislation is currently written with is as follows:”No subdivider or subsequent condominium unit owner shall refuse to renew a lease or extend a rental agreement to any non purchasing tenant as of the date the building makes the fee payment pursuant to Section (c) above. Any extended leases or rental agreements made pursuant hereto shall expire only upon the death or demise of such tenant or the last surviving member of the tenant’s household, provided such surviving member is related to the tenant by blood, marriage, or domestic partnership, and is aged 62 or older at the time of death or demise of such tenant, or at such time as the tenant voluntarily vacates the unit after giving due notice of such intent to vacate. Each lease shall contain a provision allowing the tenant to terminate the lease and vacate the unit upon 30 days’ notice.
- It raises a lot of money for the city in a tough fiscal environment-”The fee amount is $20,000.00 per unit. Said fee is reduced for each year the building has participated in the condominium conversion lottery up to and including the 2012 lottery in accordance with the following formula:
(1) 2 years of participation, 20% fee reduction per unit;
(2) 3 years of participation, 40% fee reduction per unit;
(3) 4 years of participation, 60% fee reduction per unit; and
(4) 5 or more years of participation, 80% fee reduction per unit
- It does not change eligibility requirements – Building that were already excluded from the lottery or condo eligibility because of a building eviction history or other factors that might exclude a building still apply. This is by no means a “collect $200 as you pass go and condo convert” opportunity. It is expensive, and it is only open to buildings that have already been in and qualify for the lottery!
What Happens Next?
The fill-the-city-coffers-with-condo-conversion-fees legislation has been assigned to the Land Use Committee of the Board of Supervisors. The three-person committee will vote on whether or not to approve the legislation and send it to the Board of Supervisors – you can find agendas and meeting minutes for the committee here. The bill can die in committee, but if it does make it to the Board, then it will need 6 votes (out of the 11 supervisors) to make it to the Mayor’s desk. Mayor Lee has been very quiet about whether or not he will sign it.
What Can You Do?
- Get Involved – The good folks at Plan C have been working hard to help supervisors understand how important passing this legislation is.
- Contact your Supervisor and express your support for the “one time lottery bypass condo legislation.” Give them a call. Then an email. And a real old-fashioned letter too!
- Share your story with us! We’d very much like to put a human face on this legislation, so please share your story about how being able to buy a TIC has kept you in the city, or how the ability to condo convert will impact your decision to remain in San Francisco or leave the city. We’d be happy to come out and make a video, take a photo of your building, or otherwise help you in putting a very human face on the middle-class dreamers and do-ers that will be most impacted by this bill.