Some in Bayview fear the 'r' word

As I've been posting about for a couple of weeks, the San Francisco Redevelopment Agency is about to have its way with the Bayview/Hunters Point. Today's Chronicle highlights one woman's perspective.

Patricia Wright's girlhood home in San Francisco's Western Addition and most of the houses on her block were bulldozed in the 1960s by the Redevelopment Agency. In the name of urban renewal, longtime residents -- mostly poor and African American -- were sent packing, and many never came back.

For Wright, who is now 52 and lives in the Bayview home to which she relocated as a child, the resentment still runs deep. "I have no trust in them whatsoever," she said. "When I hear the words 'redevelopment' and 'urban renewal,' I think it really means urban removal."

Those painful memories have Wright and some others who live in the Bayview-Hunters Point area, a predominantly black community situated on the city's southeastern edge, fearful that history could repeat itself.

They've come out in force against a Redevelopment Agency proposal to place about 1,300 acres -- more than half of the Bayview -- under its jurisdiction. The plan would create the largest redevelopment district in San Francisco history, and the agency promises to clean up blight, build affordable housing and stimulate business with the help of property tax dollars.

"Commissioners from the Redevelopment Agency and the city's Planning Department will hold a joint hearing Thursday on an environmental impact report for the proposal, and on March 7 the Redevelopment Agency commission is scheduled to vote on the plan itself. The Board of Supervisors has the final say."

But to those backing the plan, the fears are based on misinformation.

Eminent domain, the powerful tool used by the Redevelopment Agency in the 1960s to seize people's homes, is strictly forbidden in residentially zoned areas under the plan for the Bayview. The agency would be allowed to seize commercial land, but only after a neighborhood advisory group for the agency weighs in with a recommendation, agency officials said.

Also, mowing down neighborhoods and rebuilding them is a practice that redevelopment officials say was traded in long ago for projects that have community support.

Whichever side of the debate you're on, you'll want to make your voice heard now...

SPUR meeting today to present Treasure Island plan

If you're looking for something to do during lunch today and you're in or near the financial district, the San Francisco Planning and Urban Research Association is having a lunchtime presentation of the plan for Treasure Island.

A noontime forum, held at SPUR, 312 Sutter St. (at Grant), Fifth Floor, from 12:30 to 1:30 pm. We are located close to the Powell St. BART station and several Muni lines. Feel free to bring a lunch. SPUR Forums are open to the public, free for members and $5 for non-members.

Come see the proposal everyone is talking about—a plan that is probably the most complete expression of ecological urbanism to ever be proposed at the neighborhood scale in the Bay Area: 5,500 new homes; 235,000 square feet of retail space; 320 acres of open space, including parks, plazas, community gardens, and demonstration urban gardens; and 10-minute ferry trips to downtown. Make up your own mind: will it work? Come see the presentation by the development team, Treasure Island Community Development, LLC.

New Eviction Disclosure Legislation Headed to the Board

BeyondChron gets it wrong (gasp!) again! Today's little confusion stems from Bevan Dufty's amendment to Daly's eviction disclosure legislation which was smartly vetoed by the mayor then the veto was upheld by four Supervisor votes.

The original legislation would have basically required that we as real estate agents beat you over the head with a vacancy disclosure before you even walk in the door of an open house. That's akin to beating you over the head with a termite report or a 3R (building permit history) report. It's not what open houses are for. They are for you to see if you are interested in a property. If you like the property, you would request additional information, such as inspection and other pertinent disclosures.

Now Supervisor Dufty is looking for an amendment that would just clarify the job that we already do as agents.

I'm a full-time Realtor®. I do my job and follow the law. The law currently states that I must disclose how a property (or individual unit) became vacant, if it is vacant, during the sale of the property.

Just like everything else that we as agents must disclose, vacancy is an important disclosure. For those who haven't been through the purchase process, a buyer is likely to get all of the disclosures for their transaction BEFORE they write their offer to purchase a property. Any disclosures that they DO NOT receive before writing their offer create a new contingency. If you are a buyer and you have a contingency, that means you have a way to get out of contract.

For this purpose, we as agents disclose as much information as we can get from the seller prior to offers being written. If we provide new information to a buyer after they are in contract (including, as the author of this article writes, when you are signing your loan documents), that buyer typically has a NEW contingency and an opportunity to cancel the contract.

Do agents or sellers withhold disclosures till the last minute in hopes that a buyer won't back out? Perhaps. Is this a common occurrence? Definitely not. If we lose a deal at the last minute because the buyer is sensitive to a previous eviction, we don't get paid. If the seller loses a buyer because they get the disclosure at the last minute, the property is likely to become damaged goods. There has NEVER been a benefit in this town to withholding disclosures, and there's not likely to be any reason for that to happen in this more balanced market.

This is nothing more than a not-so-covert ploy to circumvent a state-mandated law (the ellis act) that the Supervisors have not found any other way to circumvent. This is not about disclosure. This is not about helping tenants. It's about burdening an already difficult process and hurting everyone in an effort to teach a couple of people a lesson.

In the article, Casey Mills writes, "As anyone familiar with the housing market knows, waiting until this point [when your offer is accepted] to pull out of a sale when merely getting an offer accepted by a realtor is difficult would be a tough thing to do."

First of all, some copy editing is in order. Second, Realtors® don't accept offers, SELLERS accept offers. And third, this is how real estate works all over the world. You like a house, you write an offer, you review any disclosures, you do your diligence, if you like what you see at that point, you proceed and close escrow.

Only because we as professional agents in San Francisco, looking out for both the buyer's and seller's best interests, started putting immense disclosure packages together for people to review PRIOR to writing offers, do people think this is the way it has always been. For example, one of my current listings has a 183 page disclosure package and one of my last listings had a 216 page disclosure package.

As a buyer, you have a right to the information, and if you don't like what you see, you have a right to get out of the transaction. That's real estate. Here in San Francisco and all over the country. Why pretend this is any different or make it any harder than it already is?

Could it be that Chris Daly needs to find a way to look good in the eyes of his flagging consituency?

Don't Mess With Bernal...

Well, construction has begun on Bernal Park. And the neighborhood (as promised) is not one bit too happy about it.

From a post today on BernalSF.org (the reprint of a letter sent to the Parks and Rec Commission), "If you think this is the end, it is not. The moment the road gets blocked, pandemonium is going to set in. We don’t have to do anything, in fact I will be out of town. You will be setting the trap yourself. We have warned you. We have told you over and over this is a terrible idea and an unbelievable waste of tax payers money. You have stubbornly refused to listen and keep clinging to your flawed process as if this is the life raft that will save you when the project goes down. Which it will."

"As a neighborhood, we have no idea who the people are who want this. Seriously, who is it? Because we do not know them. It’s like boxing with a ghost. Who has this much power to over-ride the concerns of so many people?"

"What I have to fight with is an amazing community of people who know right from wrong. You have done more to bring us together than any single act that has happened on Bernal Heights in decades. If we had come at this with lawyers it would cost $50k, $60k. Instead, we decided to spend our time and money to educate the court of public opinion. We are enrolling the public in taking ownership of our public space. It is not yours. What you are doing is a travesty and is more like the Balkans than the great and enlightened city of San Francisco. We will not forget. We are sick of being pushed around."

Note to self: don't ever piss off Bernal Heights...

Podcast Episode #2 now available

So, I didn't quite make episode #2 'weekly' this first time around, but as I get more comfortable with the technology and as we have good news items to report, I'll do my best to stay on a weekly schedule (hopefully releasing a new episode on the same day each week).

Download the latest podcast in MP3 format here.

The links below correspond to the stories on this week’s podcast.

Lead news stories
- Bayview/Hunters Point redevelopment
- Neighborhood association involvement
- Local housing statistics
- Mortgage report from Monica DiPerna @ Guarantee Mortgage

Current/upcoming legislation
- Ellis Act Relocation Assistance Law upheld
- SFVoteWatch.com

Upcoming events
- March 2 – Special SFRA meeting on BVHP Environmental Report
- March 7 – Bayview/Hunters Point redevelopment commission hearing

Summary
- new construction condos selling at record pace
- interest rates flat
- inventory levels holding steady or dropping

Click on this icon to subscribe to this podcast via iTunes.

Or you can click on this icon to subscribe to this podcast via XML.

Cost of housing among area's top woes

Both the Chron and Examiner have coverage of a small study by the the Bay Area Council on why people are leaving the Bay Area.

From the Chronicle, "Two out of five residents of the nine-county region have given serious thought to moving away -- mostly because of high housing costs, according to a survey released today by a business and public policy group."

"There's a ripple effect as people leapfrog from the Bay Area to the interior parts (of California)," said Rob Wiener, executive director of the California Coalition for Rural Housing. "As housing becomes less affordable, people who earn wages in those communities have to move farther out as well."

"Everyone is working so hard [in Rhode Island] to pay the heating bill and the taxes," [a former resident who now lives in Rhode Island] said. "In the Bay Area, people work hard, but they also play hard. We miss that."

"Nearly three-quarters of those questioned in the Bay Area Council poll said increasing the supply of affordable housing was "very important." Fifty-eight percent supported building new homes on underutilized space within urban areas; one-quarter favored building new homes on land outside of existing Bay Area communities."

And from the Examiner, "Many residents surveyed blamed their own elected officials for a lack of affordable housing, with just 26 percent saying their city is doing a “good” or “excellent” job encouraging appropriate development."

"“While the market is producing plenty of market-rate housing, it’s just not producing the range of choices that the Bay Area requires,” said Tina Doung, spokeswoman for Non-Profit Housing Association in San Francisco."

"But in what might prove to be a positive shift, people who have opposed development in their neighborhoods in the past appeared to be rethinking that position, the survey shows. About 58 percent indicated they’d support higher-density housing development in urban neighborhoods, including vacant lots, as opposed to 25 percent who preferred rural area."

Students pushed to redesign Bayview Opera House

From today's Examiner, "Mayor Gavin Newsom today will challenge local architecture and design students to come up with a modern and “green” redesign of the historic Bayview Opera House, built in 1888."

"Newsom is looking for designs that are as innovative and cutting-edge as possible, according to spokesman Peter Ragone. The competition’s winner will become a contender for the redesign of the opera house, competing against professional architectural firms."

"Newsom’s announcement takes place at noon at San Francisco City Hall, 1 Dr. Carlton B. Goodlett Place."

Costs soar, market cools -- but lenders are still hot for S.F. condo construction

From today's San Francisco Business Times, "Bay Area condo construction is still the darling of lenders, although the romance has soured in other parts of the country, notably Miami, Chicago and San Diego. There, hundreds of units have sat unsold on the market for three months or more, prompting lenders to back away from fresh projects. But the Bay Area, and San Francisco in particular, is still a sweet spot for more highrise development."

"The passion for condo construction lending is unusual, given national trends pointing toward a cooling housing market and increasing difficulties for condo developers. Construction materials, including dry wall, glass and concrete, have increased roughly 30 percent over the past year, while skilled labor is increasingly tough to find and costly to procure."

"If eager condo lenders are unusual, so, too, is the market in San Francisco."

"Unlike Miami, where an estimated 60,000 units are in the development pipeline, San Francisco is constrained geographically. Less than 8,000 units are slated for completion within the next few years, and additional development sites are limited. The Palms, the Watermark and the Beacon, the only three projects where new condos are for sale, all report record activity in January and February, traditionally the slowest time for homebuyers. Since Jan. 1, the Beacon has averaged nearly one condo sale a day."

Doesn't sound anything like a market that's crashing, to me...

As you might imagine, there are banks all over the country where the markets are much more volatile and where prices have dropped who are still looking to San Francisco as a strong housing market and are willing to invest here. I would think that they would conservatively pull out of this market long before it actually dropped, just on the economic data that so many media outlets are quoting... But the banks are still here. Perhaps there's something to be said for watching the lenders...

More highrise housing slated for Rincon Hill

From today's San Francisco Business Times, "Yet another condo tower may soon sprout from Rincon Hill's fertile ground. Developer Ezra Mersey has submitted plans for a slender 206-unit, 25-story highrise at 1 Hawthorne St., a narrow alley that runs between Howard and Folsom streets in Rincon Hill. The site is home to a single-story parking garage and a vacant four-story office building, both of which would be razed under the proposal."

"The $35 million project is slated to go before the San Francisco Planning Commission on March 23, according to city planner Adam Light, and would also require a zoning variance from the Board of Supervisors. While Mersey has filed two sets of plans -- one for the 206-unit project and one for a 15-story, 135-unit structure -- Light said the city has pushed the developer toward the taller alternative "so that more housing could be created on this site.""

"The development will aim to provide primary housing for San Franciscans, rather than pieds-à-terre for out-of-towners, Light said. To this end, the development proposes 27 moderately sized studios, 68 one-bedroom apartments, and 62 two-bedroom units, with less than a one-to-one parking to unit ratio. He compared the model to 199 New Montgomery St., a 16-story development, 90 percent of which is being used as a primary residence."

"Gabriel Metcalf, executive director of the San Francisco Planning and Urban Research Association, said the more Rincon Hill housing, the better. "The best thing that we could hope for is that the developers overbuild and add enough supply to start driving down housing costs," said Metcalf. "Is that going to happen? I'll believe it when I see it.""

Bernal Heights residents lose bid to stop park renovations

As I reported in an earlier post, a group of Bernal Heights residents have been rallying against the Parks and Rec departments desire to remove a parking lot near the top of Bernal Park.

On their neighborhood blog, Bernal SF, residents are organizing weekly meetings and phone/letter campaigns to attempt to halt the process which has already been approved by the Recreation and Park Commission.

Not being a resident of Bernal Heights, I am not aware of when the residents actually got involved in this process, but as one of the commissioners wrote in a letter to the residents, there was a chance for public input, but it appears that neighbors might not have been involved soon enough.

This is not meant to point out anything specific to Bernal Heights, but rather to highlight the fact that changes do happen in this city (and every city, for that matter), and if you feel strongly about something that should either remain the same or be changed for the better of the neighborhood or city, it's never too soon to make your voice heard.

This is not about being NIMBY, it's about being a member of a community and being a concerned citizen, and hopefully logic and reason will win in the end.

Industry Standards?

From San Francisco CITYSCAPE, "Rezoning of the inner Bay Area's industrial districts for the 21st Century not only cannot possibly please everyone; it may not please anyone."

"Where developers and housing advocates see abandoned wastelands, anti-gentrification activists demand a blue-collar reserve and buffers against displacement."

"Housing over light industry, we suspect, could work in most cases; so why is there so much less "urban mixed-use" zoning, requiring one square foot of industry for every five square feet of housing, than "employment and business development" — requiring five square feet of industry for every square foot of housing? Since housing can occupy higher floors, but industry can't, the latter zoning effectively bans residences on all but the largest sites."

"Here's an idea: Let's make reasonable allowances for both industry and housing in your more accessible locations. Housing over industry should be reasonably affordable, and that could go some way toward alleviating anti-gentrification activists' fears."

Special Redevelopment Meeting Scheduled March 2nd for Bayview/Hunters Point

Looks like the word is getting out on the upcoming redevelopment of Bayview/Hunters Point, with the San Francisco Redevelopment Agency scheduling a special meeting on March 2nd to discuss the Environmental Impact Report.

"Pursuant to Section 32 of the bylaws of the Redevelopment Agency, Notice is hereby given that a Special Meeting of the Redevelopment Agency of the City and County of San Francisco will be held in the Board of Supervisors' Legislative Chambers, Room 250, City Hall, 1 Dr. Carlton B. Goodlett Place, San Francisco, California at 6:30 p.m. on Thursday, March 2, 2006, for the purpose of holding a Joint Public Hearing with the City Planning Commission to certify the Environmental Impact Report for the Bayview Hunters Point Redevelopment Project and Zoning as final."

Francsico Da Costa of Environmental Justice Advocacy wants folks to know about it and has strong opinions on where the process was (and may still be) headed.

For those that can't make the meeting, but would like to listen, it will be broadcast live on KPOO 89.5 FM.

Mirkarimi: National landlord may have pulled wool over Planning Commission eyes

From the San Francisco Sentinel, "A national landlord firm may have acted in "bad faith" through a misleading permit application harmful to tenants granted by the San Francisco Planning Commission, Supervisor Ross Mirkarimi concluded today."

"District 5 tenants of the 13-unit Victorian apartment building approved for major structural change complain the permit was a ploy to increase number of units and drive current residents out. On Thursday several residents spoke before the Planning Commission, which no long has jurisdiction, to keep commissioners abreast of their appeal to the San Francisco Board of Appeals."

"Mirkarimi visited the site located at 800 Lyon Street Thursday at the request of tenant Marianne Beck."

"Beck cited tenant evictions and approved plans for fire escape restructuring she claims is life-threatening. "Since Prana 8 Properties took over the building they have systematically evicted many of the old tenants from our building," Beck wrote to Mirkarimi."

"Tenants are represented by Raquel Fox of the Tenderloin Housing Clinic and by Joe O'Donoghue, president of the Residential Builder's Association."

The many faces of protected tenant status

This week, Carol Lloyd's Surreal Estate column focuses on protected tenants, "Eloise, a grandmother who has lived in her home for over 20 years, is quiet and conscientious and always pays her rent on time. Even so, from the moment her new landlords bought the building some five years ago, they have made it abundantly clear that she's not wanted."

"In a different market, in a different city, Eloise might be considered an ideal tenant. She takes care of her home, she knows her neighbors, she dearly loves her neighborhood. But this isn't anywhere. This is San Francisco, and Eloise lives in such fear of her landlords' wrath that she asked that I not use her real name. Her crime is that she pays less than one-third of market rent -- based on rent control -- and she cannot be evicted. She is a protected tenant."

"In San Francisco, Oakland and a handful of other municipalities around the country, it is a phrase that strikes dread in many a landlord's heart. It also a phrase that invokes an invaluable right for many poor, elderly or disabled tenants who would otherwise be cast onto the rough seas of the rental market. For these vulnerable tenants, it offers the most basic refuge in a housing market that has virtually no affordable housing left."

"Essentially, it's a transfer of wealth," says Joe Bravo, a San Francisco attorney who represents both landlords and tenants. "The basic question is, Can the city impose on property owners to give up part of their wealth in order to accommodate seniors and disabled people? And my answer is, How else are you going to keep people who are old and disabled in the city?"

"In San Francisco, there are three basic kinds of protected tenants: elderly people or disabled people who have lived in a unit for at least 10 years, and disabled and catastrophically ill people who have resided in their homes for at least five years. (The definition of elderly varies depending on circumstance -- it's usually set at 60 or 62 -- as does the definition of disabled.) Whatever the case, even if a landlord wants to move into a unit himself, this is not a valid cause for evicting a protected tenant."

$16 million grant for homeless buildings

From today's Chronicle, "Community Housing Partnership, one of the city's largest developers of residences for the homeless, has received $16 million in state, federal and city money to build 167 housing units during the next two years."

"One project, an 83-unit building, will be built where a parking lot now sits at 650 Eddy St. The other, an 84-unit complex, will involve renovating a building at 684 Ellis St."

"The bulk of the funding, $14 million, is from the California Department of Housing and Community Development."

Urban housing success story faces budget ax

A national article with a local impact... From today's SF Gate, "Hasinah Rahim ... knows the stigma of life in the projects, having lived in the Hayes Valley public housing development, near San Francisco's Civic Center, since 1980. She recalled gang activity so blatant that thugs would methodically follow the maintenance workers when they replaced outdoor lights and smash the bulbs one by one so they could sell drugs unimpeded."

"But the Hayes Valley project has, like Aliso Village, been torn down and rebuilt, and Rahim, now the general manager, describes the transformation through the eyes of her daughter. The young woman, now a college student in Atlanta, recently said she wants to return and get her own apartment in Hayes Valley."

"Are you kidding?" Rahim said. "She would have never said that before. She would have been gone for good."

"[There is] an aptly named program to thank for the transformation -- Hope VI, an innovative federal housing program that has financed, over the past 13 years, the demolition and reconstruction of some of the most distressed public housing projects in the country. Its supporters, including housing officials, policy analysts and Democratic and Republican lawmakers, describe it as the most powerful engine of inner-city renewal ever undertaken."

"But now, with the Bush administration looking to cut many domestic programs, the future of Hope VI appears dire. In his $2.77 trillion dollar federal budget, President Bush seeks not only to eliminate Hope VI funding altogether but to rescind the $100 million given to the program last year."

"The White House argues that local housing authorities can do the job as well as, if not better than, Hope VI by tapping other kinds of public and private financing."

"Olivia Robinson, a longtime Hayes Valley resident, said that, as part of the redevelopment, the city had refurbished a park across the street that was once littered with used needles. The complex also has a computer training center, a child care center and after-school programs."

"Yet, for three years running, the Bush administration has sought to eliminate Hope VI funding. Each year Congress has fought off the White House and has provided money, but at a severely reduced level. From $575 million in 2001, the funding declined to $100 million last year."

"There's no way to replace that federal money. It's just absurd," said Richard Baron, chief executive of McCormack Baron and Salazar, a St. Louis firm that has been involved in 33 Hope VI projects around the country.

"Gregg Fortner, executive director of the San Francisco Housing Authority, said that, without additional Hope VI funding, he will not be able to demolish and replace an additional 275 public housing units in the city that are falling apart."

"Public housing has evolved to what it is over the past 60 years, and it's going to take some time to fix it," he said. "But it has to be done, and the federal government has to be the catalyst."

Thanks, Brett, for the tip on this story!

Mayors look for housing money - S.F., San Jose and L.A. top officials visit the Capitol

From today's Chronicle, "As lawmakers and the governor try to forge agreement on a multibillion-dollar infrastructure bond to put before voters, the mayors of San Francisco, San Jose and Los Angeles joined forces Wednesday to ask that the plan include money for affordable housing."

"We have an affordable housing crisis in the state of California. It's particularly acute in the San Francisco Bay Area," San Francisco Mayor Gavin Newsom said in Sacramento. "We have a responsibility, moral and otherwise, to do something about it.''

"California voters approved a $2.1 billion affordable-housing bond in 2002, but that money is quickly running out."

"Newsom and Villaraigosa met separately with Schwarzenegger at the statehouse to push for the inclusion of housing money. Newsom said Schwarzenegger was receptive to the request but made no commitment."

Plan to redevelop theater latest for Van Ness corridor

From today's Examiner, "The United Artists Galaxy Theater on Van Ness Avenue will be demolished to build a 13-story condo tower, another step in the march of residential projects along the transit-rich boulevard."

"Stuart Gruendl, CEO of BayRock Residential LLC, said the company intends to replace the movie house, which closed in December, with 120 condos and 15,000 square feet of ground-floor retail near Sutter Street."

"The retail space will be food-related, though Gruendl declined to identify the tenant since negotiations are ongoing. He added that neighborhood retail is needed in the area, where car showrooms still dominate."

"Auto-centered businesses moved into the Van Ness corridor following World War II, but the avenue was once a residential neighborhood. In the late 19th century, it was home to Queen Anne mansions shaded by eucalyptus trees. To bring Van Ness back to life, The City adopted a neighborhood plan for the corridor in 1989. Thousands of new units of housing have been built since then, according to Kate White of the Urban Land Institute."

"In 2004, The Avenue Senior Housing, 122 studios for the elderly, was completed at 1015 Van Ness Ave. near O’Farrell Street. Construction of Symphony Towers, 130 condos at 724 Van Ness Ave. at Turk Street, is expected to wrap up in early 2007. Plans are under review for 62 senior units at 1800 Van Ness Ave. at Clay Street, 35 units at 1868 Van Ness Ave. at Washington Street, and 36 units at 1988 Van Ness Ave. at Jackson Street."

Ellis Act Relocation Assistance Law is Upheld

From today's Chronicle, "A state appeals court on Tuesday upheld a San Francisco law requiring landlords who plan to get out of the rental business to pay relocation assistance to the tenants they evict. The ordinance was enacted in 2005 and was designed to help renters who are evicted under the Ellis Act, a 1984 state law allowing owners to remove property from the rental market without city approval."

"The measure requires all San Francisco tenants evicted under the Ellis Act -- regardless of their income -- to receive $4,500 in relocation assistance, with a cap of $13,500 per household."

"A previous city law required landlords to pay that amount only to evicted low-income tenants and $3,000 to disabled tenants or those 62 and older."

"Andrew Zacks, the San Francisco land-use attorney who represented the plaintiffs, said he will ask the appellate court to take another look at the case and then, if necessary, take it to the state Supreme Court."

"Basically, San Francisco has adopted special rules, which only apply in Ellis Act cases," Zacks said. "This isn't really about helping tenants as much as it is stopping Ellis Act evictions. It's about creating a very high price for going out of the rental business, and for that reason we don't think it can be justified under the state statute."

The Examiner covers this today as well.

Bayview/Hunters Point Residents Have Their Say at SFRA Meeting

From a post on IndyBay.org by Francisco Da Costa of Environmental Justice Advocacy, "The San Francisco Redevelopment Agency (SFRA) with Marcia Rosen as its evil leader were stopped in their tracks even as they wanted the SFRA Commissioners to agree to a resolution that all was NOT fine with a very faulty Final Environmental Impact Report that has not been discussed by the affected community in the Bayview. Gone are the days when the Western Addition was ruined by Racist SFRA. We will not permit the SFRA to come into our community and take over large tracts of land without meaningful dialog and full input of the community."

"February 21, 2006 in Room 416 at San Francisco City Hall - San Francisco Redevelopment Agency (SFRA) were told in no uncertain terms that they cannot come into the Bayview and take over property that belongs to the residents."

"The BLIGHT that we have in our community are the two power plants, the sewage treatment plant, the Darlin plant that manufactures tallow, the 400 toxic spots that have not been abated. It is the duty of the City and County to abate and clean up the toxic areas."

"It is time that SF Redevelopment Agency is told to pack up and go some where else. We do not want them in San Francisco. They failed at Western Addition. They failed at Mission Bay. They will fail in the Bayview. "

Water Street's links to S.F. past may ultimately face the wrecking ball

From today's Chronicle, "Water Street (map) is a blocklong slice of San Francisco that fits together with deceptively ramshackle ease."

"This hodgepodge shouldn't be anything special, but it's an anomaly in this ever-more-affluent city. And an ominous sign suggests that Water Street could begin to evolve into something quite different: yet another piece of the Bay Area rendered dull, where the odd, mysterious nooks are replaced by generic real estate that fills a need but doesn't stir the imagination. The ominous sign is the one that says "for sale" on the two gray warehouses from 1929 where A. Friscia Seafoods did business from the 1940s until it closed in 2004."

"Now, the Friscia property is on the market for $2.75 million. A sale is pending. The site is zoned for 40-foot residential, which probably means we'll see another pastel stucco box like so many others on this end of North Beach that fades into Fisherman's Wharf."

"It's been looked at very seriously by developers. ... The city really needs housing," says Gloria Rogan, the agent handling the property for McGuire Real Estate. She hastens to add, "We have a real profound interest in the quality of whatever happens. ... I love Water Street, and I've always loved walking down it. It's a beautiful street."

"What's beautiful isn't the architecture, but the sense that you've stepped into a living part of the city with palpable links to the past."

"Now? Our fast-fading residential boom tipped the balance. There's a hole in the middle of the block where construction crews are excavating a garage for a 21-unit complex, and a fenced-off lot that signals that another is on the way. The last single-story structure has a demolition permit in the window."

"And yes, even if Water Street's buildings stay the same, there will be homogenization and gentrification as today's owners move on. Telegraph Hill looks much as it did 50 years ago, for instance, but that doesn't mean you'll find young would-be artists in the neighborhood -- unless they're on their way to Caffe Trieste."

"But as long as those settings exist, they remind us of what was. They're physical shadows of a sort, prodding us to look beyond the present and contemplate how our world came to be. The buildings and landscapes we inherit should not be disposed of lightly or sold to the highest bidder as a matter of routine. Because once they're gone, they're gone forever."

Massive Trinity Plaza project could play role in Mid-Market redevelopment

From today's Examiner, "The proposal for Trinity Plaza Apartments in the heart of the troubled Mid-Market neighborhood is seen as a marquee project that will bring sleek glass apartment towers — some as high as 26 stories — along with cafés, shops and open space to a gritty corner at Eighth and Market streets. The project — among The City’s largest proposed housing projects at roughly 2,200 units — took a big leap forward with the recent publication of its environmental review. In the wake of the publication, critics of a plan to create a redevelopment area in Mid-Market are pointing to Trinity Plaza as proof that private investment is pouring into the area."

"A Miami-based developer filed plans a few weeks ago to build 650 condos at 10th and Market streets. In addition, two massive projects, a 22-story condo tower and the Federal Building, are under construction around the corner from Trinity Plaza at Mission between Seventh and Eighth streets."

"The proposal would demolish 377 rent-controlled apartments and replace them with 360 rent-controlled apartments along with up to 1,800 market-rate and below-market-rate-units."

"The building boom around Trinity Plaza has fueled critics of a plan to turn Market Street between Fifth and 10th streets into a redevelopment zone. Redevelopment zones are intended to spur development in troubled areas by diverting tax money away from city coffers. Instead, the money is spent by the San Francisco Redevelopment Agency on affordable housing, infrastructure and, in the case of Mid-Market, on an arts and entertainment district."

Balanced market creates new approach to home selling

From Dian Hymer and Inman News, "There are plenty of home buyers intent on buying while they can still lock in a relatively low mortgage rate. So, the 2006 housing market should present good opportunities for sellers who understand how to maximize profit in this new, more balanced, selling environment."

"The first step is to start thinking like a buyer, not a seller. Although buyers are anxious to buy before rates rise further, they know that the appreciation rate is subsiding."

"Listings are most salable when they're new on the market. To maximize your chances, your home not only needs to be priced right and properly prepared for sale, you also need a comprehensive marketing plan. You want to make sure that information about your listing reaches as many potential buyers as possible. So, pick your listing agent carefully. A prospective listing agent should provide you with a marketing plan. Ask to see samples of the marketing materials that will be used to promote your home. Make sure that your home will receive Internet exposure. Over 70 percent of today's home buyers start their home searches on the Internet."

"In most cases, it's not wise to work with an agent who is from outside of the local market area. Few agents can give good service if they are spreading themselves too thin. A bad marketing effort can result in a lower sale price. Recently, an agent from out of area listed a property in Oakland, Calif. It was never adequately exposed to the local Oakland market. It finally sold after several price reductions. The buyers got a good deal, not the sellers."

"Don't list for less than a price you can accept if you don't receive multiple offers. But, keep in mind that overpriced listings won't sell."

Another office building bagged for condos, with more on the way

From this week's San Francisco Business Times, "In a sign that the appetite for downtown condo conversion projects is still robust, a development partnership has shelled out $23 million for a 10-story office building at Third and Mission streets."

"The 108,500-square-foot building, at 706 Mission St., is across the street from the glittering new St. Regis hotel and condo project and represents one of the last remaining redevelopable sites in the Yerba Buena area. The building, which was constructed in 1905 and upgraded in 1988, sits on the western side of a 15,000 square-foot site. The property includes a squat three-story, 2,400 square-foot annex at 86-88 Third St."

"Since 2003, San Francisco's office market has seen a flurry of condo conversions, with generally older, smaller office structures snapped up by luxury housing developers. Notable downtown conversions under way include the former Chronicle building at 690 Market St.; 333 Grant Ave.; 74 New Montgomery St.; and 201 Sansome St."

"While the conventional wisdom in real estate circles has been that the conversion market is slowing down, architect Dan Huntsman, whose firm Huntsman Architectural Group designed the nearly complete 74 New Montgomery St. building and 333 Grant Ave., said the reality is quite different."

"We are still getting contacted literally every week by people who want to do these projects," he said. "There are several new ones we are talking to right now."

Mission Bay homes are in and retail seems sure to follow

From this week's San Francisco Business Times, "Mission Bay's condo craze is sparking a retail renaissance. With more than 1,000 residential units completed and 6,000 more slated for completion within the next 36 months, plans are progressing to pack shops and restaurants into the area. Along with some 170,000 square feet of ground-floor retail planned within the Mission Bay development, a further 100,000 square feet or so could be developed at existing sites throughout the nascent neighborhood."

""I know of four to six other sites that are actively being explored for additional retail. These are existing buildings that would be reconfigured." said Sheldon Pont, a retail and shopping center consultant with GVA Whitney Cressman. Pont noted one such site was 444 De Haro St. -- an office building across the street from the new Whole Foods Market at 450 Rhode Island St. slated to open April 2007."

In case you guys didn't know this, and as I reported last October, there is a Whole Foods opening in Potrero Hill next year...

"Housing developers Bosa Development, Opus West Corp., Urban Housing Group and the San Francisco Affordable Housing Agency are planning to build 74,000 square feet to 87,000 square feet of combined ground-floor retail below their residential units lining both sides of Fourth Street."

"Only building entries and retail storefronts will be permitted on the block. No garages or other non-pedestrian-friendly uses will be permitted."

SFRA to hear public comments on multiple redevelopment areas on Tuesday

While the main Commission meeting for the Bayview/Hunters Point redevelopment is on March 7th, the agenda for Tuesday's (Feb 21st) San Francisco Redevelopment Agency meeting shows a 20-minute time slot for public comment on the following redevelopment areas (with links to details):

Bayview/Hunters point

Hunters Point Shipyard

India Basin

Western Addition

Golden Gateway

Mission Bay North & South

Rincon Point

Yerba Buena Center

The entire list of redevelopment projects can be found here.

As always, don't wait till it's too late if you have an opinion on any of these areas. The time is now to make your voice heard.

The meeting is at 4pm on Tuesday, February 21st in City Hall room 416.

Real estate and taxes, or cost basis of a home

Kathleen Pender has a great article in today's Chronicle on how to determine the cost basis on your home.

"When you sell a stock, house or other asset, your adjusted cost basis is subtracted from your sales proceeds to determine your capital gain or loss."

"Single homeowners can exclude $250,000 in capital gains on the sale of a primary residence, and married couples filing jointly can exclude up to $500,000, if they have owned and lived in the house for at least two of the previous five years ending on the date of sale. Any profit over those limits is taxed at the capital gains rate, which tops out at 15 percent."

"According to Internal Revenue Service Publication 523, you can add to basis the cost of "additions and other improvements that have a useful life of more than one year." Improvements are things that "add to the value of your home, prolong its useful life, or adapt it to new uses.""

"Improvements that are no longer part of the home cannot be added to basis. For example, if you installed carpeting, then replaced it with wood floors, the carpeting is no longer part of your basis. Or if you plant a tree and it dies, the tree exits your cost basis."

"Expenses to fix up a home for sale, such as a fresh coast of paint, cannot be deducted from the sales proceeds, nor can they be added to basis..."

Some improvements that can be added to the cost basis of a home:

• Additions: bedroom, bathroom, deck, garage, porch, patio, sunroom.

• Lawn & grounds: landscaping, driveway, walkway, fence, retaining wall, sprinkler system, swimming pool.

• Heating and cooling: heating system, central air conditioning, furnace, duct work, central humidifier, filtration system.

• Plumbing: septic system, water heater, filtration or soft water system.

• Interior: built-in appliances, kitchen modernization, flooring, carpeting.

• Insulation: attic, walls, floor, pipes, ductwork.

• Miscellaneous: storm windows or doors, new roof, central vacuum, wiring upgrades, satellite dish, security system.

Source: Internal Revenue Service Publication 523

As always, rely on your accountant or CPA for the final word.

Another Chronicle Cover Story -- only with a different tone

The Sunday Chronicle had another Kelly Zito article, this time with a headline spanning 3/4 of the cover of the paper. It usually takes the beginning of a war or the death of a president to get that much space on a cover devoted to one topic.

"HOUSING -- JUST COOL OR GOING COLD?"

Strangely enough, with the exception of a couple of the usual quotes from guys like Ed Leamer at the UCLA Anderson Forecast (who has been claiming that we were all going to the poorhouse since 1999), the article is amazingly upbeat and realistic. Knowing the lead times on articles, I will take no credit whatsoever after my posting on Friday for this change in attitude.

Click the link above and read the entire article for yourself. She put in some nice 25 year graphs showing exactly what I continue to refer to, that the market is strong and continues on an upward path, even through the roughest of markets, and has its usual downward blips in the Dec/Jan timeframe.

Some of the highlights:

• "At the end of the last two major housing booms in the early 1980s and 1990s, prices in most areas did not collapse."

• "On the coasts, you see price run-ups, and then instead of having large price declines, you have mild declines and flattening for a period -- it's what you'd call a stylized fact of the industry," said Andrew Leventis, economist at the Office of Federal Housing Enterprise Oversight, the overseer of mortgage titans Fannie Mae and Freddie Mac.

• "On the other hand, affordability indexes don't present the full picture. For one, roughly three-quarters of all home buyers in California are trade-up buyers who can spin equity into down payments on bigger, pricier houses."

• "...even in a slackening market, sellers often resist losing money on a property or simply not making as much as the Joneses next door. Sometimes that can mean sales volumes will decline, but prices will stay resilient; it's a phenomenon that could play out as this cycle wears on."

• "San Francisco may have more of a chance to not have a severe (correction) because it's so hard to build here," said UC Berkeley's Rosen. "The difficulty in putting on new supply protects home prices from big adjustments."

• "A tight supply of available land and housing supply is one hallmark of what Columbia University real estate professor Christopher Mayer calls a "superstar city," one in which price declines are relatively rare."

And there you have it... Lots of people who admit they really don't know what is going to happen, but look at things a bit more positively than we've seen in a while. And all of this goes back to supporting my post on Friday. It's a nice, balanced market out there right now, and from where I'm watching, it doesn't look like it's going to drop any time soon.

50-year mortgages?

The Chronicle ran an AP article today on the possibility of a new 50-year mortgage. "The Treasury Department's resumption of 30-year bond sales could have an interesting impact on the home mortgage market, with lenders offering more 40-year loans and maybe even 50-year mortgages for the first time to help some consumers qualify for loans."

"The reintroduction of the 30-year bond means lenders — who had relied on the government's 10-year note for mortgage rate guidance — have a better idea of what to charge homebuyers for a 40-year mortgage. There is also some talk among lenders, who are always looking for new mortgage products, about creating a 50-year home loan."

"Forty-year mortgages have been offered by lenders over the last two decades, according to [a mortgage industry analyst], who recalled that their use last jumped in the 1980s when home prices were high and interest rates were in double digits. Rising home prices are bringing them back, he said, but noted that these loans likely won't account for more than a fraction of a percent of all loans processed by bankers. Last year, lenders underwrote $3.2 trillion worth of mortgages."

"By stretching out their mortgage payments over 40 years first-time home buyers can lower monthly borrowing costs and qualify more readily for a loan. [A mortgage broker] said bankers could also create a 50-year mortgage because of the Treasury's 30-year bond sale. This would be a product lenders could sell to first-time home buyers, or what he calls "a gateway product.""

"Of course, like all longer-term loans, the 40-year mortgage carries a rate that's higher than shorter-term loans, as lenders charge more for taking on the risk of a longer term loan. So although the payments are lower, a borrower ends up paying much more in interest."

"Last week, home buyers could get a 40-year $100,000 mortgage at a rate of 6.50 percent which meant their monthly loan payments were $585.00, according to HSH's Gumbinger. A 30-year loan, meanwhile, had a 6.25 percent rate and a home buyer with a $100,000 loan had a monthly loan payment of $616."

"Chris Low, chief economist at FTN Financial, a financial services firm, said longer-dated home loans could prevent a dramatic drop in the housing market because their lengthy payback periods would lower monthly payments at a time when interest rates for other mortgages have risen from historic lows."

San Francisco awarded state housing funds

From today's Examiner, "San Francisco has scored $45 million in state funds for affordable housing, officials announced this week. The City will use the money to help fund 530 units of affordable housing ranging from a high-rise tower for families in the Mid-Market neighborhood to senior housing on Alabama Street. The money will help support six projects, which will also rely on funding from other sources."

"The state funds come from Prop. 46, a $2.1 billion housing bond approved by voters in 2002. Matt Franklin, director of the Mayor’s Office of Housing, said San Francisco did better than in past years and received about 25 percent of the money, though The City accounts for less than three percent of the state’s population. Franklin said the money is doled out based on the quality of the proposals, which are scored on specific criteria such as the level of affordability."

"Of San Francisco’s 530 units, about 230 will be for families and 280 for supportive housing for the chronically homeless, he said."

City churches are closing because they can't afford earthquake retrofitting

From the Chronicle's Surreal Estate column, "Golden Gate Lutheran Church is only one of over 25 places of worship and an estimated 2,500 buildings around the city that have been affected by new seismic codes for unreinforced masonry buildings. In the years since the unreinforced masonry building code was written in 1992 (generally referred to as the UMB code), most of these buildings have been brought up to code or demolished."

"But an estimated 300 buildings -- including several churches and synagogues -- remain noncompliant. Feb. 15 was the deadline for bringing all buildings in San Francisco into compliance, so the city is stepping up its efforts, after granting repeated extensions to property owners."

"Like many other churches in the city, Golden Gate Lutheran operated under the UMB radar, limiting its hours of operation. But last year, it came under the inspector's spotlight when a local neighborhood group -- which had complained about the homeless people hanging around the church -- discovered the building was not up to code and reported it."

"Estimates to seismically retrofit other bigger buildings have been even more exorbitant. The figure of $8 million was the one most invoked in discussions about the retrofitting of Sacred Heart Church on Fell Street. Last year, an article about the shaky fate of Congregation Sherith Israel on California Street suggested that retrofit costs could run as high as $20 million."

"The churches that cannot be brought up to code face an uncertain future. St. Brigid's Church, which was closed for nearly a decade, was recently purchased by the Academy of Art University, adding to its sizeable for-profit real estate portfolio. The Church of Christian Science on Dolores Street has petitioned for a demolition and permit to build an 8-unit condo building."

A Balanced Market: Setting the record straight

I feel like I may be the only blogger or journalist that pays attention to what is actually happening on the streets in this real estate market. And because of this, I feel it my duty to help readers understand the things that Kelly Zito neglects to include when she writes her 'gotta sell more papers' cover stories for the Chronicle.

Today's cover article is entitled, "Home Sales Falter - Hints of a Slowdown", and she goes on to cite her favorite (only?) source for real estate data, John Karevoll from Dataquick.

Now, you have to recognize that there have been 'hints' of a slowdown in every article she's written in recent memory for the Chronicle, so for those of us that are NOT 'hoping against hope' for a market crash (because we're smarter than that), or trying to sell newspapers, there's more to the story.

We do have a different market than we did in February of 2005. But we don't have very many examples of the 'faltering' that she refers to. The quotes from Karevoll are the same as they've been for years, so it's probably getting old to many readers to hear that the 'experts' still don't know if the market is going to crash or just have a 'soft landing'.

Well out on the streets, where business actually takes place, and where these numbers are generated, we see a very different picture. IMHO, her only real on-the-street data came from a fellow Zephyr agent (and blogger), Matt Fuller who quoted some sales figures from our office meeting yesterday. The reality is that we still see nearly 50% of sales going OVER the asking price, and 88% of sales going at asking or above.

Now you know I always talk about 'percentage over asking' as a function of the way that agents and sellers are pricing their properties. In my experience right now, most agents and sellers are pricing properties at a level that is much closer (if not 'at') the price they are willing to accept. This just goes to show that with nearly 50% of properties (sold by Zephyr agents) still selling over these asking prices, we have a vibrant market in San Francisco.

Does this mean the market is crazy? Not at all. But Chicken Little can take a rest, because the market is not showing any signs of crashing.

Some of the things that I took from the Dataquick press release:

"A decline from December to January is normal for the season."

"We won't know for another couple of months if this is a lull in the market or part of a longer-term downturn. It's always difficult to project from trends we see in January and February. The March numbers will tell us much more about what's going on," said Marshall Prentice, DataQuick president.

"Indicators of market distress are still largely absent. Foreclosure rates are coming up from last year's low point, but are still below normal levels. Down payment sizes are stable and there have been no significant shifts in market mix, DataQuick reported. "

So why were these items missing from Kelly's article? Because uneventful news isn't worthy of a headline, especially a BOLD cover story headline.

I do see bargains out there, however, as I always do, even in the hottest markets. From what I'm hearing, there are some lofts that aren't getting much activity right now. There are also a large number of TIC units avaialble (149 currently active units in the city of San Francisco, per SFAR MLS).

As an example of on-the-street data, let's compare CLOSED sales (which likely went into contract in early or mid-January) of single family homes between Feb 10-17, 2005 (one of the hottest weeks -- for market frenzy -- in the history of San Francisco real estate) and Feb 10-17, 2006:

2005 - 49 sales, 31 days on market, average sale price 110% of asking, median price $780,000

2006 - 27 sales, 35 days on market, average sale price 102% of asking, median price $925,000

IMHO, the difference in the number of sales is as much a function of inventory as anything else right now. The hot properties are coming on the market and selling in one or two days (this isn't always properly reflected in the MLS, either). Some of the properties that are sitting on the market are just plain overpriced, causing the numbers to skew a bit.

In looking at more data from Zephyr agents, comparing closed transactions for the weeks of Feb 8-14 between last year and this year (that likely went into contract in early to mid-January), we see that in 2005 we had 89% of sales at-or-above asking, and in 2006 we had 78%. To me, that decrease is explained when some of the funky listings that were sitting on the market finally sold and when those sellers eventually came to terms with the current market as it related to their particular piece of property (which was likely overpriced to begin with).

One more interesting piece of data: In the past 24 hours (per the SFAR MLS) there were 26 properties that went into contract, with an average days-on-market of 50. So, while some of the properties were only on the market a few days, others were on for much longer. This is another indication that some of the stagnant inventory from last fall is going away, including properties on the market for 106 days, 162 days, and 288 days.

The new inventory is selling well and the old inventory is selling, too. Yet another reminder that there's not that much out there for buyers, so they're looking to more creative locations and property types.

What do you really want to know? Should you buy now? Should you sell now?

For what it's worth, I will always find good deals in this town, especially in markets where there is some stagnant inventory (like right now). If you're a buyer that wants the perfect location and a nicely remodeled unit, you're going to pay top dollar. That's a promise. If you are willing to step outside of that realm a bit, there are bargains to be had. Especially in the TIC market.

If you're selling, you really need to make sure that you're doing everything that the market wants to see. You must price your property appropriately, which does not mean matching your neighbor's sale price from last August. It also means cleaning, painting, staging, marketing properly, and being willing to be flexible in your marketing period if other inventory hits that is just like yours.... like if your neighbor lists their identical house for $50k less than you're willing to accept.

Despite everyone's longing for more affordable housing in San Francisco (myself included), printing negative news stories that single out the worst of the market and citing the same data source every week just doesn't help anyone.

Last time I picked on Kelly, my comment list went 27 deep, so I'm sure that all of the bubble-prophets will be hot on this topic, but just realize, even if people are paying asking price for their homes, a year-over-year rise in the median price of single family homes from $780k to $925k in a down market just doesn't compute.

I can see the comments now, "Yeah, but it's coming! Just you wait! It's a bubble! You'll see..."

Yes. We will see, won't we.

In the meantime, my advice is for buyers and sellers to come out of hiding. I'm working with a number of great buyers and sellers that see this as an opportunity to do a transaction in a balanced market, a market that is good for both sides of the transaction.

What's so negative about that?

The 'real' story behind the C-3 parking legislation?

From an SFSOS email today (sorry, no web link for this, so published in its entirety here)

So now what are we supposed to think?

The Board cruised through the Peskin/Daly planned-congestion measure as expected last week, with the same "party line" 7-4 vote with all four moderates and the Mayor opposing the extreme left's keystone attack on regular people being able to stay in the City.

The Peskin-Daly 7 are taking political gamesmanship to new depths with this issue. With each passing day of debate, the "public transit only" allies are carefully muffling any voice from the average resident, especially families, who will find parking scarcer, more expensive, and compounded by increased congestion downtown. They continue to avoid any defense of their issue, nor offer any proof, any data, any case studies suggesting that their limitation of parking might lead to a decrease in traffic. They just say it's so because they know it's so, and they sure don't need any legally-required independent studies to contradict them.

Instead they are making this solely an anti-development issue. Trot out the stale rhetoric opposing "fat-cat developers" (how dare they ask to create housing and jobs!?!), and pass out free "Eat the Rich" stickers for their backpacks. Ignore the overwhelming public opposition to the anti-parking plan and play along with the media who absolutely insisted on being factually incorrect when calling this a debate between developers and transit advocates. It never was. It isn't now. It won't be the next time the parking wars are fought.

A reminder on the key points on this debate:

Daly’s original intent was to railroad his version of parking legislation for the C3 zoning area. Despite the now-evident controversy over the facts, he managed to get his idea up to a vote without an environmental study, an economic impact study (Prop. I), or a housing impact study. He had the seven voting as a bloc, so the analysis-free legislation was poised to fly through the land use committee with barely a chat.

SF SOS filed a CEQA appeal, forcing a hearing to debate the need for a CEQA study. When it was clear that the 7 would vote the way they always do on the issue, we and other appellants withdrew and instead fought to support Michela Alioto-Pier's alternative legislation. Her measure is still alive and is following in committee.

The Alioto-Pier legislation was originally very similar to legislation Peskin himself considered. Yet when Daly cashed in a political favor, Peskin swooped in and took over the Daly legislation with fire in his belly to get it passed.

In the Land Use Committee, Committee Chair Sophie Maxwell left  the meeting prior to the C3 parking vote. Peskin seated himself, with voting privileges, on the committee alongside members Sandoval and McGoldrick to ensure that it was passed. Even though it was substantively amended, he pushed it to the full Board rather than have the new version subject to continued public comment (read: protest) in committee.

At the February 7th Board meeting, as Supervisor Alioto-Pier made her argument against the Peskin/Daly version, she cited a statement from Planning Director Dean Macris that raised several concerns. This sent Peskin into a frenzy, for until then he had been wildly distorting the position of the Planning Department and planning staff as fully supportive of the measure.

Still during the February 7th Board meeting, Sup. Daly is heard screaming on a cell phone (audible all the way in the back of the chamber). He hands the phone to Peskin. Mirkarimi joins. Peskin then skips over the item and moves on in the agenda.

No one in the media has yet to ask whether that phone conversation was with Dean Macris. No one in the media has asked Macris whether he was strong-armed during that conversation. No one in the media has asked Macris, Peskin, or Daly whether Daly, as head of the Budget and Finance Committee, specifically threatened Macris with cutting the funding of the Planning Department if he didn’t rescind his statement questioning this legislation.

Parallel to pushing the Planning Department their way, the Extreme Left bloc further attempted to promote their conspiracy theory cover that the Planning Department is in fact being manipulated by back-room dealings with the Mayor, developers, SF SOS, and others in the black-helicopter brigade (tri-lateral commission?). Daly went to great lengths to inflate a Guardian article vilifying an evil empire of those of us who -- go figure -- build housing, create jobs, and represent residents and stakeholders damaged by this legislation.

Such is the body of work the Extreme Left 7 are putting together in the interest of creating a "livable" City. A vision of such a City is now easily imagined:

With no available parking and traffic congestion-by-design, the average Jane Citizen is virtually banned from car ownership...

She sticks her thumb out for a cab, but realizes that cab fares have been priced out of the market for reasonable use.

So she loads her child, stroller, and five bags of groceries (ice cream, eggs, whole pies, fresh fish, 10 lb. bag of dog food) onto the full-to-capacity MUNI bus (two, actually, with transferring) that takes in excess of an hour to travel a couple miles, only to drop them off three blocks from home in the rain and cold...

She schleps her load back to her apartment (she’s not allowed to own her home here), being sure to avoid the needles and human waste along the way...

Finally she tries to figure out how to go about picking up her oldest child from basketball practice at the school across town he’s forced to attend instead of his neighborhood school.

There you have it. A Norman Rockwell-gone wrong snapshot of modern San Francisco quality-of-life. Brought to you by the Board of Supervisors

And their fact-finding continues,

Relish this golden Peskin quote from a Rachel Gordon story 3 years ago:

"There are a lot of poor and working class (people) who also use cars," Peskin said. He said Muni advocates are well-organized, but "people who drive cars and need to park cars do not have anybody who speaks for them."

From a USA Today Story:

"Similarly, on Sept. 11, 2001, Lower Manhattan was in the commercial doldrums, mostly because it lacked Midtown's parking and commuter rail links. The market for office space was glutted."

Battles are brewing for Mission rezoning plan

From today's Examiner, "On Wednesday, the Planning Department unveiled a proposal to rezone the area between Division Street to the north, Cesar Chavez to the south, Potrero Avenue to the east and Guerrero Street to the west."

"The proposal is part of the overall rezoning of The City’s eastern neighborhoods, which is expected to be completed next year. With the rezoning, officials hope to allow developers to build thousands of new apartments and condos to address The City’s housing shortfall while retaining vital industrial areas that provide blue-collar jobs."

"Planners propose increasing some residential density around Mission and Valencia streets while reserving the industrial area in the northeast section of the neighborhood for factories and warehouses. They also propose creating a buffer zone between industrial and residential areas where small office space, digital media and biotech would be permitted."

"Just last week, the [Mission Anti-displacement] coalition successfully appealed the environmental review of a proposed 68-unit building at 2660 Harrison St., thereby slowing the controversial project. The housing development would replace an empty industrial site."

“The Harrison Street project could be a poster child for what we’re talking about,” [the president of the Mission Merchants Association] said. “It’s been derelict for four years.”

"George Hauser, the developer of 2660 Harrison St., said he believes permanent rezoning of the area next year would help reduce the challenges to residential projects."

“Hopefully these things won’t create so much conflict,” he said.

Personally, I'm waiting for the block between 14th and 15th Streets and Mission and Valencia (where the armory is located) to change. That northern end of the neighborhood needs rejuvenation in a big way. And I doubt anyone would argue with that. Unless you're the head of the Drug Dealers Coalition, of course...

The ghost of Hayes Valley

What will become of the valuable six-acre parcel the University of California has abandoned?

From this week's SF Bay Guardian, "In the heart of a busy San Francisco neighborhood, there's an eerie silence. Just northwest of Market Street and southeast of the Lower Haight, a six-acre plot of immensely valuable land is gathering weeds and dust. The University of California at Berkeley closed the doors on its Laguna extension campus in late 2003, and now the place is effectively sealed off, compound-style, windows and doors facing only the interior court area and little to connect its several buildings in any intimate way with the surrounding neighborhood."

"Now there's finally a development plan: After months of negotiations with the university, private developers A.F. Evans and Mercy Housing California have proposed building 351 units of housing on the site. But that would, in large measure, take the property out of the public domain. So the neighborhood is up in arms, clamoring for an alternative — and so far, the only other prospective user is an educational institution that has shown no ability to raise the cash to lease and develop the place."

"The university simply wants to maximize its cash flow — and in this red-hot housing market, building condos is the best way to guarantee profits. The people at Evans and Mercy are no fools; they preempted potential political resistance with a laundry list of progressive planning concepts: 83 market-rate apartments (out of 351) for independent seniors, with services targeting lesbian, gay, bisexual, and transgendered tenants, 10 City CarShare pods, 67 low-income housing units, continued operation of an on-site UCSF dental care facility, a community garden, and the "adaptive reuse" of 75 percent of the existing buildings."

"Enter New College of California, the Valencia Street educational institution that is looking for expansion space. The school has drafted an alternative plan that offers more green space and community-use facilities. But New College is hardly a wealthy operation, and right now it's far from clear whether it can find enough money to compete with the private developers."

"New College's president, Martin Hamilton, said in an interview that administrators have had their eye on the extension campus since it closed. The school's plan includes new student and faculty housing, a child-care center, and room for its GLBT Historical Society Archives and "green businesses" at street level."

"But given UC's greed, the only way the New College plan — or any other community-based alternative — can compete is if the supervisors refuse to rezone the site for the housing density Evans and Mercy want. In the meantime, UC's Laguna Extension remains a ghost town, best suited for graffiti and memorable teen experiences."

2006 Condo Conversion Lottery Winners announced on Feb. 16th

A note went up on the SFGov.org site today announcing that the list of the 200 lucky condo conversion lottery winners would be posted on Thursday, February 16th.

There's a link to the condo conversion page here, and a link to what will likely be the winner's list here.

This was the first year that followed a new one-year application rule, giving preferential treatment to buildings that had entered the lottery three times or more. Half of the 200 winners will be picked from this group, while the other half will follow the open lottery procedure.

The details on the application process can be found here.

Condo Conversion Veto Upheld

From today's Chronicle, 'In a 6-4 vote, the board failed to override a veto by Mayor Gavin Newsom of legislation that would have required Planning Commission hearings on all residential properties scheduled for conversion to condominiums."

This comes as no surprise, as Daly knew they didn't have the votes to keep this one alive.

Supes delay limiting parking for new buildings downtown

From today's Chronicle, "The board voted 7-4 for the amended parking measure, moving back the date the limits would take effect from March 1 to June 1. The ordinance, which comes up for a second vote next week before being sent to the mayor for his signature, would require most off-street parking to be built below ground and would allow for no more than three parking spaces for every four units of new housing built in downtown."

What's interesting, however, about today's article, is that it points out something I hadn't heard till today.

"Developers have objected, saying the law would make it harder to finance needed residential development and would create more competition for already tough-to-find street parking. Developers also have pointed out that a provision that would eliminate new driveway "curb cuts" for garages could have the unintended effect of thwarting all garage construction because curbs couldn't be altered to allow motorists to enter and exit."

But they continue by saying, "Board of Supervisors President Aaron Peskin, who sponsored the legislation, hinted that changes could be coming in the next few days to address the garage access issue."

Let's hope so. This would eliminate the ability of existing property owners to add garages to their properties, no matter how feasible... Even though there are very few small buildings in the C-3 district, this seems like a frivolous add-on to the legislation.

"Supervisors Michela Alioto-Pier, Bevan Dufty, Sean Elsbernd and Fiona Ma voted no on the ordinance."

Introducing the SFHomeBlog Podcast!

For those that don't feel like reading, or just want something to do while they wait for MUNI, check out the first episode of the SFHomeBlog podcast!

This covers news from around San Francisco for the week of February 9th - 15th, 2006, and is approximately 16 minutes long.

Download the latest podcast in MP3 format here.

The links below correspond to the stories on this week’s podcast.

Lead news stories
- Ellis Acts moving beyond SF?
- Bayview/Hunters Point redevelopment (post #1/post #2)
- Ben Bernanke’s first Federal Reserve meeting

Current/upcoming legislation
- C-3 downtown parking restrictions (post #1/post #2)
- Condo Conversion veto upheld on 2/14
- Condo lottery winners announced Thursday 2/16 on SFGov.org

Upcoming events
- Feb 16 – DBI - Appeals of Building Permits and Planning Determinations
- Feb 22 – Condo Conversion for Lottery Winners (sponsored by Old Republic Title)
- Feb 22 – Plan C – Circle Bank (pdf)
- March 7 – Bayview/Hunters Point redevelopment commission hearing

2 new supportive housing residences open in Tenderloin

From today's Chronicle, "The city of San Francisco inched 194 units closer this week to its goal of creating 3,000 new units of housing for the homeless when it opened up two big residential hotels in the Tenderloin."

"The 84-room Boyd Hotel on Jones Street started taking residents Monday, and the 110-room Aranda Hotel opened its doors on Turk Street on Tuesday. Together they bring to 1,983 the number of new supportive housing units -- residences with counselors on site to help the homeless with job, substance abuse or mental troubles -- created since Mayor Gavin Newsom took office two years ago."

"Sam Patel, who owns both hotels, spent $1.7 million to fix them up and is leasing them to the city, a common arrangement for creating housing for the homeless. The Tenderloin Housing Clinic oversees the Boyd and its counseling services, and the Tenderloin AIDS Resource Center oversees the Aranda."

"Many of the new residents of the rehabbed hotels are moving in under Newsom's voter-approved Care Not Cash program, which cuts monthly welfare payments of more than $410 for homeless people to $59 in exchange for a residence. The number of homeless people on welfare without a roof has plummeted from 2,497 in May 2004, when Care Not Cash began, to 391, city homeless housing director Dariush Kayhan said Tuesday."

2 of Newsom's Giants seats for sale

Well, normally I wouldn't consider this much of a real estate article, but after the realization (due to the C-3 controversy) that parking spaces are appreciating at an alarming rate, this might be worth noting as well.

From today's Chronicle, "The Port Commission approved the sale of the lifetime rights Tuesday to two seats at the Giants' ballpark that had been used by Mayor Gavin Newsom's office."

"Holders of personal-seat licenses at SBC Park own the rights to buy a season's worth of tickets. Last year, the port's purchase of season tickets came under fire from the Board of Supervisors, which directed the cash-strapped agency to sell two of the seat licenses."

"The port, which purchased the licenses for $6,000 each in 2000, plans to obtain fair market value for them, possibly by selling them in an online auction."

Whatever the price, I'm sure the seats don't suck, and you'll be guaranteed to be next to the mayor's other four seats.

Small Property Owners of San Francisco launches new web site

The Small Property Owners of San Francisco has updated their site, which launched today with a much more professional look and enhanced features for its members.

From the site, "SPOSF is a diverse, grass-roots organization promoting fairness for small property owners and sensible housing policy for our city. Our members come from all neighborhoods and from all walks of life, religions and ethnicities, and are united in the common goal of restoring and protecting the rights of small property owners in San Francisco. We help our members navigate the treacherous waters of the SF Rent Ordinance and educate the public about regulations that are strangling small property owners. We work together to affect legislation, endorse and campaign for candidates sympathetic to our cause, and strive to increase home ownership opportunities for all San Franciscans."

If you are interested in joining, here's the direct link.

I have been a member for years and have gained much insight, both from their newsletter and from their meetings, on the challenges facing the owners of small properties in San Francisco.

Their next meeting is TONIGHT (yes, on Valentine's Day) at St. Mary's Cathedral, Room A, beginning at 7pm. The address is 1111 Gough Street (@ Geary). Property manager and attorney Merrie Turner Lightner will be discussing the new SPOSF lease and services available to help you manage your rental property more effectively.

'Eviction notice' served on Bayview/Hunters Point

A strong editorial was written last week by Bay View publisher Willie Ratcliff on the upcoming redevelopment plan for Bayview/Hunters Point. The following are some excerpts:

"In Monday’s mail came a “Notice of Public Hearing of the San Francisco Redevelopment Agency Commission on the Proposed Bayview Hunters Point Redevelopment Plan Amendment” announcing that on Tuesday, March 7, at 4 p.m. in City Hall Room 416, “any and all persons having any objections to the proposed Redevelopment Plan Amendment may appear before the Agency and show cause why the Redevelopment Plan Amendment should not be approved.”"

"Notice of another boring meeting? No, not this time. This is an eviction notice to nearly everyone who lives in Bayview Hunters Point, San Francisco’s Black heartland."

"The word “amendment” doesn’t sound like a threat. But this “amendment,” according to the notice, “proposes to add approximately 1,361 acres of new land as ‘Project Area B’ to the existing 137-acre Hunters Point Redevelopment Project Area.” The map on the back of the notice designates nearly our entire neighborhood as the proposed Project Area B, dwarfing the existing project area that covers much of Hunters Point Hill. The proposed “amendment” stretches from Cesar Chavez Street south to the county line and from Highway 101 east to San Francisco Bay."

"If we allow the Redevelopment Agency Commission, whose strings are pulled by Mayor Gavin Newsom, to declare our neighborhood a “project area,” we are consenting to our own eviction from the most valuable land – considering we have the best views and the most sunshine – in San Francisco, the city with the most valuable land on earth."

"Property in a project area is subject to the city’s seizure by eminent domain. In horror, Black San Franciscans watched it happen a generation ago when the world-renowned Fillmore district became Fill-no-mo’, when Redevelopment bulldozers destroyed 200 Black-owned businesses and the homes of 5,000 Black families. They even tried to bulldoze our memories by renaming the neighborhood the Western Addition."

"I doubt a land grab this big is being proposed anywhere in the country outside New Orleans. Will the people of Bayview Hunters Point and the people of the Lower Ninth Ward accept our eviction notices and quietly disappear? Or will we stand shoulder to shoulder and say, “No way! This land is our land!”"

"Gentrification wears many disguises. It’s the sale of the old Coca Cola bottling plant on Third Street – the building sheathed in shiny red tiles – to a developer who’s replacing it with 375 million-dollar condos."

"Don’t sell! Stand and fight for all we hold sacred. That’s our heritage: When threatened, we have always fiercely defended our community."

"This year, 2006, marks 40 years since the Hunters Point uprising in September of 1966, when tanks rolled up and down Third Street and the SFPD lined up like a firing squad and shot their rifles into the Bayview Opera House where children had taken refuge. Less than a month later, in October 1966, the Black Panther Party was born. 2006 also marks 30 years since the Bay View newspaper, then called the New Bayview, was founded by Mohammed Al-Kareem and 14 years this week since I became publisher."

"So tune up your best testimony – spoken or written – to convince Redevelopment commissioners on March 7 that they’d be crazy to approve the “amendment,” declare Bayview Hunters Point a project area and subject us to eminent domain, another word for eviction. We’ll pack the hearing and shout loud enough to shake City Hall: “We shall not be moved.”"

See my post from last week as well with details about the redevelopment meeting.

Is Ellis Act Eviction Wave Heading to Los Angeles?

BeyondChron is reporting today that well-known TIC attorney Andy Sirkin is taking his sermon on the road, this time to Los Angeles.

"On March 8, Andrew Sirkin, one of San Francisco’s most prominent land use attorneys involved with converting rental housing into Tenancy in Commons (TICs), will hold a public seminar in Los Angeles detailing the use of TICs as a means to homeownership. The event may reflect that the supply of 2 to 4 unit buildings in San Francisco that can be converted to TICs is decreasing, and those that profit from TIC conversions hope to expand their market to other cities. Their success remains dubious, as the housing market in Los Angeles may not be difficult enough to create buyers willing to share mortgages with strangers. However, should TICs catch on down south, the area could see a dramatic spike in Ellis Act evictions alongside a significant shift in their housing market."

"Perhaps most troubling, the seminar will also include information on the using the Ellis Act to evict tenants so a condo conversion can take place. The Ellis Act remains a rarity in Los Angeles, but should TICs become popular there, the city could see a major increase in evictions and the displacement of primarily low-income residents that accompanies them."

"If TICs became commonplace in L.A., along with the rash of Ellis Act evictions that would likely accompany their grown, there could be a silver lining for tenant advocates – attempts to change state law governing the use of the Ellis Act could gain steam. Los Angeles’ large population gives it a high number of state representatives, and widespread displacement could generate enough uproar to push these representatives to action."

"However successful Sirkin’s seminar in Los Angeles is, it remains certain that TICs - and the Ellis Act evictions that often accompany there creation - are not going anywhere anytime soon."

Phil Ting's new tax plan = your neighbor's new windfall

From today's SF Business Times, "Phil Ting has to keep track of property valuations on more than 190,000 parcels that generate more than $1 billion in tax revenue. By law, his office must reassess a property if more than 50 percent of its ownership changes hands, a process that usually results in a higher tax bill. Human nature being what it is, people can sometimes overlook telling the assessor that a sale has taken place -- and the bigger the building or bigger the tax increase, the bigger the potential tax loss from such forgetfulness."

"That, dear citizen, is where you come in."

"Under legislation approved this week, the Assessor's office wants people to drop a dime on their neighbors or others who might have failed to record a change in property ownership, and he is appealing to more than the civic-mindedness of the naturally nosy: Real estate watchdogs who finger a miscreant will get up to 10 percent of the tax increase their tip generates -- up to $500,000."

"Ting said he got the idea for the city's watchdog program after hearing about a similar program run by the IRS. That program, he said, has netted $47 for every $1 in reward money."

Once this becomes public knowledge, expect the assessor's office to spend 99% of it's working hours sorting through false alarms (or sales that were already reported)...

Noe Valley Residents Hunger for a Locally Owned Grocery

From the Noe Valley Voice, "Responding to the long-term vacancies of two neighborhood grocery stores--Real Food Company on 24th Street and Mikeytom Market on Church Street--more than 40 residents packed St. Philip's Parish Hall on Jan. 12 to talk about bringing a community-oriented grocery store to Noe Valley. With Bell Market--now the only full-service grocery in the neighborhood--currently up for sale, "We don't need another grocery store vacant for two years," said Friends of Noe Valley President Richard May, explaining why the meeting was held."

"The last word from the Cincinnati-based Kroger Co. was that it is looking to sell several stores in its Ralphs division, including the 24th Street Bell and the Castro and South Van Ness Cala Foods. Meanwhile, Nutraceutical Corporation, owner of the Real Food Company, which has been closed since August 2003, has promised the neighborhood it will remodel and reopen a health food store, but the company has yet to file any new permit applications."

"Vicki Rosen, president of Upper Noe Neighbors, expressed similar frustration about the lack of a store along outer Church Street. Mikeytom, located at Church and Day, was forced to close in 2003 after the building's owner demanded a large rent increase. The long-term vacancy has "really left a blight on the neighborhood," Rosen said. Former Mikeytom co-owner Tom Maravilla, who attended the meeting, told the group he and his partner, Mike Meischke, definitely were interested in operating another grocery store in the neighborhood."

"Nothing would make this neighborhood happier than to get a good, locally owned grocery in that space," [Supervisor Bevan] Dufty agreed. But, he cautioned, "We have to get real pretty fast and put some money on the table. I'm worried if we hang on too long, Kroger will move ahead with someone else."

The next grocery summit will take place Monday, Feb. 16, from 7:30 to 9 p.m., at St. Philip's Hall on Diamond Street between 24th and Elizabeth. Interested parties can offer their input at the meeting or send comments by e-mail to rambooks@pacbell.net or by mail to Friends of Noe Valley, P.O. Box 460953, San Francisco, CA 94146.

Some Noe locals comment on their own blog, adding their $0.02...

Affordable Housing Revision Tabled

From BeyondChron, "San Francisco’s Planning Commission voted Thursday to recommend that the Board of Supervisors table a proposed revision of affordable housing regulation until the results of a pending study are released this summer."

"Five of the six present commissioners voted for the recommendation on a proposed ordinance authored by Supervisor Chris Daly that would require residential developers to set aside more units of housing for low and moderate income San Franciscans. They said that they’d like to see more data before making a decision on the issue."

"Waiting would mean putting off a decision until at least July, when the Planning Department’s housing study, which will gauge the need for affordable housing in the city, is due. The board is expected to first consider the ordinance in March."

"The ordinance would revise current requirements for “inclusionary housing,” or housing offered at below market rate. Now, developers must set aside 10 to 15 percent of new residential units at reduced levels, depending on the type of project and location of the affordable housing. The ordinance would raise that scale to 15 to 25 percent."

"In addition, the ordinance would change the criteria for eligibility for affordable housing programs to a scale based on San Francisco’s median income. The current criteria also factor in wealthier Marin and San Mateo counties."

HUD Web site offers plethora of properties

None of which, unfortunately, are in San Francisco...

From today's Chronicle Real Estate section, "Whether you're a first-time home buyer, an investor, vacation property buyer, historic preservation buff -- or even if you are looking for a boat to convert into a live-aboard residence -- you are not shopping the market to the max unless you check out the federal government's best real estate resources: the combined property disposition program inventories of 10 agencies, all rolled into one online access point."

"The offerings change daily, the realty sales hype is refreshingly restrained, and the caveats plentiful when you browse through the properties available from the Internal Revenue Service, Bureau of Customs and Border Protection, Department of Housing and Urban Development, Department of Veterans Affairs, Small Business Administration, U.S. Marshals Service, U.S Army Corps of Engineers and the Federal Deposit Insurance Corp. Each of these agencies ends up with unwanted real estate through its own specialized activities. HUD, VA, SBA and the Agriculture Department foreclose on some of the properties they insure or finance. Customs, the IRS and U.S. Marshals Service seize properties for nonpayment of taxes or criminal violations and then sell them on the open market."

"Now there's an easy way to check out the bulging portfolios of these agencies 24/7. Go to HUD's real estate site -- www.hud.gov/homes/homesforsale.cfm -- and then link into any of the government agencies' separate offerings. The links also connect you to congressionally chartered Freddie Mac's and Fannie Mae's property disposition sites. HUD's own portfolio tends to be the largest of the federal government and represents the most productive resource for anyone shopping for moderate cost houses to live in or renovate as an investment."

"For example, the IRS' site offers houses for sale in some delightful getaway locations. How about a quaint six-bedroom, four-unit multifamily New England frame house in scenic Brattleboro, Vt.? In a visit to the Web site in early February, the property was heading for auction March 2 with a minimum bid of $41,589. Like all the government property disposition Web sites, there's virtually none of the typical real estate agent hype. No "fabulous view" no "huge backyards" no "once-in-a-lifetime" opportunities."

USA vs. Russia - The Politics of Parking

From today's Matier and Ross column in the Chronicle, "They say all politics is local -- but when it comes to the politics of parking in San Francisco, you can find yourself careening toward an international incident. Just ask the U.S. State Department."

"It all started three years ago, when Russian diplomats, citing security concerns in the post-Sept. 11 world, insisted they needed at least another five restricted spaces -- on top of the four they already had -- outside their red brick consulate at Green and Baker streets in the parking-challenged Cow Hollow neighborhood."

"As the consulate saw it, it was a modest request -- given its 55 employees and the 15 families living there."

"Changing parking spaces, however, is no easy task in a city where the registered vehicles outnumber street slots by 4 to 3. The consulate soon found its request sinking into the bureaucratic quicksand of engineering studies, permit processing hearings and the objections of a lone neighbor -- of course."

"Eventually, the Russians let it be known to American diplomats back home that if San Francisco didn't start moving on the request, the Russians might start restricting parking at the U.S. Consulate in St. Petersburg."

"The threat got the city's attention, and it wasn't long before San Francisco's Department of Parking and Traffic signed off on the new spaces. The ever-obstinate Board of Supervisors, however, refused to go along. If the Russians get more parking, the thinking went, all 77 consulates in town will want more, too."

"Supervisor Jake McGoldrick, chairman of the board's Land Use Committee, pushed the idea when the parking problem came before the panel this past week. After a lengthy discussion, with Russian diplomats and State Department officials on hand to answer questions, the committee voted to convert 53 feet of curb space -- marking it off-limits to neighbors -- but only from 8 a.m. to 6 p.m. weekdays."

"The full board will vote in the next couple of weeks."

Zillow: Pornography for the real estate-obsessed

From today's Chronicle, "Real estate: It's pure pornography. That's how one of our former real estate editors always described it and I think the analogy is brilliant. People are obsessed by real estate. They like to look at pictures and fantasize about it. And the Internet is the best place to find it."

"That last part became abundantly clear this week when a Seattle startup called Zillow.com premiered and the real estate voyeurs lined up en masse. The site allows you to type in an address and immediately get a "zestimate" of the property's worth."

"How do they provide such a service? "We base the calculation on data from public records including physical characteristics, prior transactions and comparable home transactions," the company explains in a press releas"

"Regardless, don't make any immediate plans after you sit down and start working the zillow. I haven't seen a productivity killer like this since Google Earth premiered and the nation's cubicle dwellers spent the next three days zooming around cyberspace looking for UFOs at Area 51."

There's more about Zillow in one of my previous posts, too.

Pier 70 plan stirs anew

From today's Examiner, "Officials are once again trying to tackle one of the most challenging development sites in San Francisco: Pier 70. On Tuesday, Port of San Francisco officials will present a proposal to the Port Commission to create a master plan for the 65-acre site near 20th and Illinois streets. The hope is to work with consultants on the plan for the next year and call for development proposals by spring of 2007."

"With lovely historic warehouses, great waterfront views and underutilized land next to the Third Street Light Rail, Pier 70 is natural for development."

"Visions for the area have included reusing the warehouses for film studios and arts space while building restaurants, hotels and parks along the shore."

"Corinne Woods, a member of the Central Waterfront Advisory Group, said officials need to move quickly to see what is feasible for the site because the historic buildings are falling apart."

McGuire gets nod to market Esprit condos

From today's SF Business Times, "McGuire Real Estate has snagged the Esprit de Corp. condo project. The real estate company will market and sell the 142-condo conversion development in the Dogpatch neighborhood at the foot of Potrero Hill in San Francisco. The development is slated to include a mix of one- and two-bedroom lofts, townhouses and mews, which will be priced between $600,000 and $1 million."


"The project will also include a commercial component, a café, 168 inside parking spaces and significant open space."


"Rob Levy, McGuire partner and manager of McGuire's development sales group, said he hopes to pre-sell 75 percent of the units. The Esprit condo development is the biggest housing development in the Dogpatch neighborhood. It will include large open courtyards."


Rob is a good agent and a good guy. I wish him the best in this project!

900 Minnesota Update - 18 Jul 2006 [PotreroHillSF]

Bernal group protests parks department plan

From today's Examiner, "The Bernal Heights Park Association will hold a rally tomorrow to oppose a city plan to limit access at Bernal Hill. As part of an open-space restoration effort being conducted by the Recreation and Park Department, The City will soon close off access to a parking area at the top of the hill."

"The march against the plan will begin at 11 a.m. Saturday, in the parking area at the west end of Bernal Heights Boulevard. Participants will march by the home of Supervisor Tom Ammiano, who supports the plan, according to the association’s press release."

Craigslist sued over some ads

The Chronicle has an article today about the lawsuit in Chicago against Craigslist for apparent violations of Fair Housing laws.

"A Chicago public interest group has sued the popular online classified service Craigslist for allegedly publishing housing ads that discriminate against prospective tenants on the basis of race, gender and religion. The suit, filed this week in federal court in Chicago by the Chicago Lawyers' Committee for Civil Rights Under Law, accuses Craigslist of violating fair-housing laws by allowing users to post ads with language including "no minorities" and "Requirements: Clean Godly Christian male.""

"Discriminatory housing advertisements contaminate the housing market, stigmatize the people who are discouraged or excluded from housing, and mislead people into thinking that it is normal and acceptable to select tenants on the basis of race, gender, religion or family status," Laurie Wardell, one of the attorneys behind the lawsuit, said in a statement.

But Craig sees it differently and says so on his blog, "we're being sued for an extremely small number of postings by a few of our users, in many cases for phrases like "near a church" or "there's a kosher deli around the corner.""

And offers a plea: "Folks, PLEASE HELP US OUT and keep flagging bad stuff of any kind"

Japantown for sale

From today's Examiner, "On its 100th anniversary, Japantown is up for sale. The heart of the neighborhood’s economic and cultural life, including a movie theater, two malls and two hotels, are being sold, prompting concerns over whether the already dwindling neighborhood will retain its character as one of the nation’s few remaining Japanese-American enclaves."

"The AMC Kabuki Theater, is home to the San Francisco International Asian-American Film Festival and the annual Cherry Blossom Festival, is being sold because of an antitrust ruling. Meanwhile, the Japanese owner of the Miyaki and Kintetsu malls, as well as the Radisson Miyako Hotel and the Best Western Miyako Inn, is selling all four properties because they are unprofitable, according to an attorney representing the owner."

"Paul Osaki, executive director of the Japanese Cultural and Community Center of Northern California, said the neighborhood is hanging in the balance. “We are talking about three-quarters of Japantown that is up for sale. … Depending on who buys the property and what they use it for, it could kill an entire neighborhood,” Osaki said."

However, "...conditions of the sale include that the buyer hold the property for some time and agree to retain the Japanese character."

"Local residents are worried about the Kabuki Theater sale because it serves as the home of a number of neighborhood cultural events, draws business into the area and will serve as the center for some of the 100th anniversary celebrations taking place this year."

[Feb. 14 update] SF Cityscape has thoughts on how Japantown might survive in its current layout

Noe Valley Library to close for renovation

From today's Examiner, "The San Francisco Public Library announced that the Noe Valley Branch Library, located at 451 Jersey St., will close Feb. 11 for $5.7 million in renovations, including seismic strengthening. The work is scheduled to be completed in late 2007, and is part of a citywide library improvement project backed by $105 million in voter-approved funds. Patrons of the Noe Valley branch will receive bookmobile service on Mondays and Wednesdays from 10:30 a.m. to 1 p.m."

Newsom advised to require 20% of new units to be child-friendly

From today's Chronicle, "With hundreds of families fleeing San Francisco for the suburbs in search of cheaper housing and better schools, some of Mayor Gavin Newsom's policy experts are telling him to stem the tide by requiring developers to include so-called family friendly units in future housing projects."

"A six-point plan delivered to Newsom on Tuesday from his Policy Council on Children, Youth and Families suggested that at least 20 percent of the units in new developments include the things families with children need -- from reasonable rent or mortgage to ample closet space, bathtubs, large kitchens, access to the outside and laundry facilities."

"Newsom said he'll have to review the council's proposal before commenting, but added he expects controversy. "I told them that (20 percent) is high, and they said the controversy is that it's too low and the council wants to go higher," Newsom said. "But there is some concern that with the softening (real estate) market we can actually hurt the development of new construction and new housing" by imposing more regulations, he said."

"[The council] is looking to Vancouver, British Columbia, which repopulated its inner city with 4,000 children, compared with the few hundred that lived there 15 years ago. Vancouver's chief planner, Larry Beasley, said Vancouver started in the 1980s requiring that major residential downtown development must reserve at least 20 percent of its units for low-income tenants and at least 25 percent for families with children, and these must be located within a 10-minute walk of a school."

"Meanwhile, Gabriel Metcalf, who heads the think tank San Francisco Planning and Urban Research Association, says the answer lies in changing local laws to allow developers to build more densely and higher."

"The bottom line is we have to construct more family friendly housing, period," Newsom said. "We have focused a lot on supportive housing (for the homeless) and affordable housing, and we haven't had a dialog around family-friendly housing."

New Home Valuation Site Launches

The brainchild of the founder of travel site Expedia, Zillow.com finally launched today after months of speculation and hoopla.

The site runs on an algorithm using nothing more than publicly available data.

I ran a couple of searches and compared them with my reality (which includes MLS data and real-world experience), and it's really not that accurate for properties in San Francisco. It will, however, provide a good way to see what some of your neighbor's houses sold for (using only hard facts from the recorder's office)...

For example, in one particular six-unit building, their 'Zestimate' (their term for the calculation results) ranged from $800k - $1.1M, and the units are all identical in size and quality. This resulted from different dates of the most recent sales in the building, leading me to believe that the model figures too much into an average-rate-of-return model and not enough on street-level knowledge that real estate agents provide.

I would encourage buyers and sellers to visit this site or any other site out there that will help them learn more about their city or neighborhood. Knowledge is power. Which is why I'm not concerned about any effect on my livelihood. Unless this algorithm has been in each of these properties and knows why they sold for as much or little as they did, it will only be partially effective.

Educated buyers and sellers make transactions more stable, as they will know more before entering into a contract. My clients, who are mostly younger and very tech savvy, have always done their due diligence prior to buying or selling, but I don't think any of them would choose to do a transaction without the expertise of a REALTOR®.

Just my $0.02, of course, and only time will tell...

Individual TIC Loan primer at Plan C's membership meeting

Join Plan C on Wednesday, February 22nd from 6:30-8:00PM at St. Mary's Cathedral (Hall A, corner of Gough and Geary - plenty of parking - parking entrance is on Gough, or use the 38 Geary bus).

Come hear about the new individual TIC loans from the leading bank currently providing these innovative loans - Circle Bank. Mark Skolnick from Circle Bank will explain the ins and outs of individual TIC loans, and also talk about what we can expect in the future from the bank in this area.

Plus, a presentation on some interesting new ways you can help keep our city cleaner and greener. We'll have refreshments during the meeting, and feel free to mingle before and afterwards with other Plan C members!

Parking spaces in new buildings downtown limited

From today's Chronicle, "Over the objection of Mayor Gavin Newsom, San Francisco's Board of Supervisors passed legislation Tuesday establishing public financing for mayoral elections and limiting parking spaces in new downtown residences, garages and lots."

"Debate before the vote on the parking measure centered on Planning Director Dean Macris, who lent his support to the legislation last year. Macris was out of town on Tuesday but Supervisor Michela Alioto-Pier and Acting Planning Director Larry Badiner read into the record a letter, supposedly written by Macris, outlining doubts about the parking plan."

"Board of Supervisors President Aaron Peskin, who sponsored the legislation, suggested the letter was crafted in part by Newsom's office as an attempt to weaken political support for limits on parking spaces downtown. "I don't want to put words into Mr. Macris' mouth, but clearly there were aspects of the letter that you read that did not reflect his opinion," Peskin said to Alioto-Pier during a testy exchange."

So Peskin actually believes that another member of the Board of Supervisors brought a fabricated letter to a meeting as important as this? Highly doubtful. He had to take over sponsorship of this measure due to Chris Daly's inability to get it passed on its own...

"The legislation would require most off-street parking to be built below ground. Parking spaces in new residential buildings would be limited to three spaces for every four units of new housing."

And what will this do to the price of parking spaces around and near downtown? That's right, Mr. Daly, it's your fault AGAIN! What's next, tenant's rights for parking in SOMA? ABC News has a nice little piece on how a parking space is worth six-figures in some parts of town. Parking space speculation, anyone???

BeyondChron also has coverage of the drama that occurred during the meeting, while Daly attempts to get his voice heard on his blog. The San Francisco Sentinel doesn't believe him. Ahhh, the drama!

Anybody want to run for Supervisor in District 6? I think nearly everyone is ready for a change...

If for no other reason, check out the last sentence in Daly's blog post from yesterday, "[Mayor Newsom's Communications Director Peter] Ragone and these agent provocateurs did not get their intended response, they have certainly added to my righteous indignation and personal resolve to use the legislative process to fight for progressive policies and social justice."

Alrighty, then!

Largest Apartment Building Ellis Act in San Francisco History Invoked

BeyondChron is reporting today that a 38 unit building has been Ellis Acted...

"The owner of a 38-unit apartment building at 901 Bush Street invoked the Ellis Act last week in an attempt to convert its former rental units into tenancies in common (TICs). Should it be approved, the site would represent the largest apartment building to fall victim to the Ellis Act in San Francisco history."

"The attempt comes on the heels of the Board of Supervisors rejecting the owner’s bid to convert the units directly to condos, a decision mandated by the owner's ignoring of the Planning Department and the city's General Plan. Now, the city faces both a significant loss of its rental housing stock and the displacement at least twenty of its long-time, low-income residents. The owners, however, face trying to sell a building full of tenancies in common (TICs) where every buyer will share liability and mortgage responsibilities with 37 strangers. Finding such buyers could prove difficult, making the decision to use the Ellis Act in this case financially questionable."

"[Supervisor] Peskin, who attempted to negotiate a deal with the building owners before taking the battle to the Board, agrees. He believes the move to invoke the Ellis Act represents a political statement more than a rational real estate endeavor."

Department of Building Inspection Brown Bag Lunch Talks

As a public service the Department of Building Inspection holds Brown Bag Lunch Talks each month on a variety of topics.

The talks take place at 1660 Mission Street, Room 2001 (second floor) on the 3rd Thursday of the Month from Noon to 1:30 p.m.

The Department welcomes you to attend a series of informal, general information talks presented at no charge to the public and City staff. Bring your lunch; coffee and other drinks will be provided.

There are also archival videos from past meetings on the DBI web site. Yes, that's right, video!

Some of the upcoming meetings:

February 16, 2006 - Appeals of Building Permits and Planning Determinations

March 16, 2006 - Why and How to Hire an Architect

April 20, 2006 - Lessons from the Great 1906 San Francisco Earthquake – A walking tour of downtown

And more!

Public Hearing for Bayview/Hunters Point Redevelopment - March 7th

There is a notice in today's Chronicle (Page C6, bottom right) about the Redevelopment Agency Commission holding a public hearing on Tuesday, March 7th at 4:00PM in City Hall, Room 416, "to consider the proposed Redevelopment Plan Amendment for the Hunters Point Redevelopment Project (the "Redevelopment Plan Amendment") and to consider all evidence and testimony for or against the approval of the proposed Redevelopment Plan Amendment"

This is a significant change in the area that was sought to be redeveloped, adding 1361 acres to an already-approved 137 acre area.

There is more information about the Redevelopment Agency's plans on the SFGOV.org web site, including a map of the two areas.

Unfortunately, there's no direct link to the public notice in the Chronicle, but it can be found in Classifieds>Public Notices.

More from the notice: "The Redevelopment Plan Amendment will allow the Agency to, among other things:

1) assist in the revitalization of those portions of the Bayview Hunters Point community affected by physical and economic blighting conditions, including areas along Third Street, through promoting and participating in sensitive urban infill and rehabilitation projects and programs that capitalize on existing assets;

2) provide for the development of extremely low-, very-low and moderate-income affordable homeownership and rental housing units and directly assist with the preservation and rehabilitation of existing housing units;

3) facilitate the creation of a more vibrant and balanced mixed-use commercial district and enhanced commercial-industrial areas, through assisting local entrepreneurship, small business development and workforce development;

4) improve the existing public infrastructure, including streetscapes and other public spaces;

and 5) encourage the provision of balanced transportation and parking options, including improved access for transit, pedestrians and bicycles."

"Interested persons may inspect and, upon payment of the costs of reproduction, obtain copies of the text of the proposed Redevelopment Plan Amendment, the Report on the Redevelopment Plan Amendment, and other information pertaining to the proposed Redevelopment Plan Amendment at the office of the San Francisco Redevelopment Agency, One South Van Ness Avenue, 5th Floor, San Francisco, California. A more detailed map of Project Area B showing the parcels affected by the Redevelopment Plan Amendment and a copy of the legal description of the boundaries of the proposed Project Area are available free of charge upon request. For information, contact Stan Muraoka, Bayview Hunters Point Project Manager, at (415) 749-2577 or Stanley.Muraoka@sfgov.org. DATED: February 3, 2006 /S/ Erwin R. Tanjuaquio Erwin R. Tanjuaquio, Agency Secretary"

If you care about the future of this neighborhood, March 7th is the time to make your voice heard. If you don't speak up now, know that decisions are being made that will affect that area indefinitely. I offer no opinion about this plan, or whether I feel it's a good or bad change to the existing neighborhood, but I'm sure there are many out there who feel strongly in one direction or the other.

New towers, conversion plan could add 850 units in S.F.

From today's San Francisco Business Times, "A Miami-based developer has put two big bets on San Francisco housing, placing an existing highrise under contract for conversion to condos, and agreeing to acquire a Civic Center development site where it could build 531 more."

"Sources indicate Crescent Heights placed the two properties -- the Rincon Tower Apartments (at 88 Howard) and a site at 10th and Market streets -- under contract in the last few weeks. Together, they could create 850 new condos."

"The deals are not surprising, given the city's still-frothy condo market and Crescent Heights' aggressive reputation. The condo developer already owns the Metropolitan at 333 First St., a development completed in 2004 where units go for an average of $738 a square foot. The project sold out shortly after completion."

"The two tower complex at 88 Howard St. includes 320 apartments, covered parking and some amenities. The Blackstone Group won approval from the city last year to turn the units into condos, provided they also sell 76 of them at below-market-rate prices, an option Crescent Heights is expected to exercise."

"It's been our understanding they would convert them (to condos) within 60 days of the sale. It's the wholesale emptying of the building, potentially," said Dave Osgood, president of the Rincon Center Tenants' Association. "A lot of people can afford $2,000 a month rent, but won't be able to afford a $2 million condo."

As for the other site, "The Citizens Housing Corp. co-owns the site with the Tenderloin Neighborhood Development Corp. (TNDC). The nonprofit housing groups kept about a quarter of the property at the corner of Mission and 10th streets with the intention of building 150-200 senior housing units."

"The condo towers -- a specific number has not been proposed -- could reach as high as 352 feet and include 650 units, according to the notification for environmental review filed with the city."

"Matt Franklin, director of the mayor's office on housing, said the city has been supportive of efforts to market the front portion of the site, with the expectation that significant number of affordable units would be built on the back side. He said the proposed development is consistent with the city's vision of Market Street as a bustling corridor of commerce and high-density, transit-oriented housing."

Planning panel struggles with likely budget cuts

From today's Examiner, "The Planning Department has spent more than a year working to reduce an extensive backlog, rebuild trust with the community and plan for The City’s future growth. It may have to scale back its ambitions, however, in the face of a possible $1 million in budget cuts next fiscal year."

"The department’s work is critical to addressing the housing crisis in San Francisco as it moves to rezone neighborhoods to accommodate denser housing projects. Planning staff members are charged with reviewing everything from huge development projects, such as the luxury condominium towers currently in vogue, to small projects like additions on homes."

"...additional staff has already reduced delays in the environmental review division from 11 to 7½ months..."

Plan C releases TIC study

Plan C, "a grass-roots civic group focused on improving San Francisco’s quality of life," has commissioned a study called "TIC Ownership in San Francisco – Gateway for the Middle Class and LGBT Community."

The entire seven-page study can be found as a PDF file on their site as well.

Among the highlights:

• Most TICs are not located in San Francisco’s wealthier, more conservative
neighborhoods.

• TICs are concentrated in some of San Francisco’s most progressive neighborhoods.
Most TICs lie in D8 (Castro/Noe Valley), D5 (Haight/Western Addition), D9
(Mission/Bernal Heights), and D3 (North Beach, Chinatown and Telegraph Hill).

• In addition to the neighborhoods cited above, recent TICs can be found in middle
class neighborhoods such as the Richmond and Sunset, and are increasingly found
in the Excelsior, Bayview-Hunters Point and other parts of the southeast sector of
the City.

• By looking at TIC locations and data compiled from the U.S. census, we show that
TICs in San Francisco are being formed primarily in solidly middle class
neighborhoods.

• The data show striking concentrations of TICs in San Francisco’s gay and lesbian
neighborhoods — suggesting that TIC ownership is an important first step toward
homeownership for the LGBT community.

• TICs, and middle class San Franciscans, are continuing to spread into new middle
income neighborhoods throughout the City.

Thanks to Britton Jackson and Matt Fuller for the tip on this one.

New federal rules threaten mayor’s housing plans

From today's Examiner, "A new set of rules governing federal funding for low-income housing could put Mayor Gavin Newsom’s bold homebuilding goals in jeopardy."

"At least 300 of the 15,000 units that are earmarked for very-low-income people — someone making less than $23,000 a year — may have trouble getting financed. About half of the possible 300 units were already in the planning stages when the federal Department of Housing and Urban Development announced in October that it would be changing some of its funding criteria."

"Under the new set of rules, federally subsidized rents will not be able to exceed state-subsidized rents if both kinds of units are included in the same development. Currently, HUD subsidies are more than state subsidies — usually by about $200 a month — so the HUD units are geared toward very-low-income people."

"Many of the affordable housing developments sponsored by The City involved this “mixed financing,” Housing Authority director Greg Fortner said. For example, at the 280-unit Valencia Gardens, the federal government would normally pay $2,000 a month for a three-bedroom; the state will only pay $1,400. The extra $600 a month would add up to $72,000 a year in lost revenue on just one unit — or $775,000 on the 10 federally subsidized units planned there."

Fortunately, it doesn't look like too many of the 15,000 units that are planned will be affected, but it always hurts when projects lose funding that would have otherwise allowed them to happen.

Market-Octavia plan mired in red tape

From today's Examiner, "Part of the Central Freeway has come down, the new Octavia Boulevard is open and developers are proceeding with housing in the surrounding area. But absent from the landscape is a revitalization plan city officials assumed would be finished by now."

"After five years of community meetings and environmental review, officials expected the Market-Octavia plan to be approved in January. Instead, the environmental review has been delayed as neighborhood consensus on the plan appears to have dissolved."

"The difficulty in passing the plan underscores just how complicated and drawn-out the community planning process has been in San Francisco. Market-Octavia is one of three major Better Neighborhoods Plans started in 2000 that have yet to be approved. The City has spent $4.5 million on the programs to date, according to Alicia John-Baptiste of the Planning Department."

"Meanwhile, planners who believed they had reached community consensus over the Market-Octavia plan a few years ago are confronting an upswell of new neighborhood residents who were not part of the original planning process and oppose certain elements of the plan, including taller buildings on Market Street and reduced parking requirements for new housing, according to the planning officials."

"Peter Cohen, who is working [...] on a task force to request changes to the plan, said group members are not “NIMBYs” [“not in my backyard”] but community members committed to smart growth and planning. “We’re accepting development will happen, but we want good development,” Cohen said."

"City officials are frustrated as well, citing lack of resources that held up the plan. “What we’re concerned about is the length of time it takes,” said Amit Ghosh, head of long-range planning for The City. “By the time we finish the plan, consensus is forgotten.”"

---

Highlights of the Market-Octavia plan

What’s in the plan: Aims to create a dense, transit-oriented neighborhood with dense housing over retail and streets that are friendly to walkers and bikers. The plan covers 379 acres including Hayes Valley, a portion of Mid-Market and Mission Dolores, and a part of Duboce Triangle. It allows taller buildings around Van Ness and Market, but reduces heights in areas of Hayes Valley.

Housing: Could result in 4,400 more units through 2025. It would reduce parking requirements for new housing developments to encourage transit use.

Status: Draft plan finished in December 2002. Draft environmental report finished in June. Final environment report due this spring. Adoption planned for the summer.

California Foreclosure Activity Up, But Still Near Historic Lows

Dataquick (a real estate data and news service) reported yesterday on foreclosure activity statewide. "Lending institutions sent 14,999 default notices to California homeowners during the October-to-December period. That was up 19.0 percent from 12,606 for the third quarter, and up 15.6 percent from 12,978 for 2004's fourth quarter, according to DataQuick Information Systems. Foreclosure activity hit a low during the third quarter of 2004 when 12,145 default notices were recorded. Defaults peaked in 1996's first quarter at 59,897. DataQuick's default statistics go back to 1992."

"Only about five percent of homeowners who find themselves in default actually lose their homes to foreclosure. Most are able to stop the foreclosure process by bringing their mortgage payments current, or by selling their home and paying the home loan(s) off. All regions of the state saw an increase in foreclosure activity, ranging from 10.5 percent in the Bay Area to 19.6 percent in Southern California."

Two things are interesting about this report: first, the Bay Area had the lowest increase in foreclosures of the areas surveyed, and second, with only 15,000 notices sent out, we are far below the 1996 levels of 60,000 notices, and only slightly above the historical low of 13,000. This is important to note. Just because foreclosures rise a bit, they are still well below what has been the 'norm' in the state.

"While foreclosure properties tugged property values down by almost ten percent in some areas nine years ago, the effect on today's market is negligible, DataQuick reported."

In San Francisco between Q4 2004 and Q4 2005, default NOTICES went from 73 to 106 (out of roughly 260,000 homeowners). Given the statement above about roughly 5% of notices turning into foreclosures, that means that we likely saw one or two additional foreclosures year-over-year. You gotta be really desperate for doom 'n gloom information to make an argument based on this data.

Of course we can count on Kelly Zito at the Chronicle to take this data and make it look like the end of the world is coming tomorrow.

Newsom pushes for architectural excellence

From today's Examiner, "Mayor Gavin Newsom wants to change The City’s reputation for rejecting challenging designs in favor of safe, uninspiring buildings. After touring cities such as Shanghai — where a building boom is turning out massive and sometimes innovative buildings — Newsom said he became convinced San Francisco as a “world-class city” should not settle for “dumbed-down design.”"

"With thousands of new housing units planned downtown and in the eastern neighborhoods, the quality of architecture in the next decade will have a lasting impact on The City’s skyline."

"Planning Department Director Dean Macris said the issue is a priority for his staff. Two planners are already working on raising architectural quality, he said. “We’re taking this very seriously,” he added."

"As part of the education process, John Schlesinger, a local architect, showed the commission imaginative local buildings challenging the architectural status quo. He said often residents or commissioners criticize a design for not fitting into a neighborhood. He said a building can look very different from neighboring structures, but “the originality can benefit the neighborhood.” Schlesinger cautioned that The City’s lengthy and expensive development process encourages mediocre design. He said developers and architects hesitate proposing an innovative design, knowing that risky architecture may meet resistance and further stall the process."

"Robert McCarthy, a local real estate attorney, said he supports Newsom’s goal to have better architecture and agrees The City has often settled for “uninspiring” designs. But McCarthy said The City needs to realize that better designs mean higher costs. He said The City should not expect developers to continue to pay high fees and provide affordable housing required by law while also elevating the bar for aesthetics."

Donate your house to charity and make money doing it

From the Chronicle's Surreal Estate column, "When Andrew isn't managing his investment portfolio and his substantial charitable donations, he enjoys cooking delectable soufflés and working in the lush backyard of the home he shares with his partner. At 55, the soft-spoken gent is already retired and now lives mostly off a trust created from the proceeds of his real estate investments."

"...Andrew chose a road less traveled -- or at least a road typically traveled only by the wealthy. He decided to give his house to charity and, at the same time, live off the proceeds for life. In other words, he created a charitable remainder trust."

"He paid a lawyer about $3,500 to create a CRUT that was written to pay him 6 percent of the total value of the trust's assets annually. He also named his domestic partner as a beneficiary. Andrew gave his Berkeley house to the CRUT, which then sold the little house without having to recognize the capital gains and reinvested the proceeds in bonds and low-risk index funds. Andrew's income from the trust -- about $30,000 a year (almost his entire income now) -- is, of course, subject to income tax. But Andrew's income from the trust is spread over many years -- and if Andrew had sold the house himself he would have had to pay all the capital gains in a single year at a higher tax bracket. There is also the benefit of a substantial income tax deduction because, in the end, the trust will go to charity."

"Indeed, these trusts are not for the faint of heart. They are convoluted entities with myriad limitations in all directions. There are complicated rules about who can administer the trust, how much and how little the trust can pay out each year and what will happen if the beneficiaries die early or if the charitable organization folds. After 20 minutes speaking with a specialist on these tortured legal tools, I began to yearn for the poetic elegance of an old-fashioned stock account spreadsheet. Still, such trusts may come in handy for those who have assets subject to capital gains and little retirement income."

First real estate loan closes in California using digital signatures

From Inman News, "The first electronic notarization and electronic mortgage closing in California took place this month in Orange County, according to NotaryPro, the company that facilitated the transaction. Irvine, Calif.-based NotaryPro coordinated what it called "the first electronic home equity mortgage closing" in the state on Feb. 1, using DigaSign, a device that makes it possible to sign digitally at occasions such as real estate closings using a special inkless pen and what is known as a biometric pad."

""Utilizing the DigaSign platform allowed NotaryPro to complete the mortgage closing in one-third the time of a traditional paper closing with zero errors," claimed NotaryPro's Executive Vice President of Sales and Marketing, Kelly Fidel. Fidel claimed that by using DigaSign, her company was able to compress the mortgage signing process about four days, allowing the borrower to fund and record faster. Field claimed that this provided the lender with efficiencies and cost savings not available in a paper closing."

Parking Legislation clears Land Use Committee, Heads to Full Board

From today's Examiner, "Controversial legislation that aims to minimize car use by reducing parking in downtown housing projects was approved Wednesday by the Board of Supervisors Land Use Committee."

"Joshua Switzsky, a city planner, told the committee he expected 10,000 new units to be built downtown in the next 20 years, on the heels of 2,900 units built over the past five years. The Planning Department supports the legislation, arguing it will help reduce congestion and promote vibrant streets."

"Mayor Gavin Newsom suggested in a letter to the board he would veto an earlier and more restrictive version of the legislation. Supervisor Gerardo Sandoval criticized the mayor on Wednesday for the letter, saying “a veto is not the same as showing leadership in this area.”

"Many opponents of the legislation have thrown their support behind competing legislation sponsored by Supervisor Michela Alioto-Pier that proposes a more lenient ratio of one space for every unit. Most downtown housing built over the last five years has about one spot for every unit."

"The legislation was revised Wednesday to allow projects with family-size apartments of two or more bedrooms to be eligible for more parking, a nod to concerns that limiting parking would discourage families from moving downtown."

Part of Ellis Act overturned in appeal

File this under 'Don't Mess With State Laws', Mr. Daly... From today's Chronicle comes coverage of a slight change in the Ellis Act, "A state appeals court has overturned a San Francisco ordinance that required landlords who were getting out of the rental business to estimate to their tenants how much money they would be paid for relocation assistance."

"The ordinance was part of a package of local laws designed to help renters who face evictions under the Ellis Act, a 1984 state law allowing owners to remove property from the rental market without city approval."

"Under the ordinance, landlords were required to disclose how much they believed they would owe each tenant, based on their assessment of whether a tenant fit into one or more of the eligible categories. The city argued that compliance was easy and would let tenants devote their energy to finding new housing, rather than searching for documentation of their status, an argument that persuaded Superior Court Judge Ronald Quidachay in August."

"But the Court of Appeal said in a ruling made public Wednesday that requiring such statements from landlords, without documentation from tenants, could cause complications if a tenant later challenged eviction, and would therefore exact "a prohibitive price on a landlord's right to exit the rental market.''"

The Ellis Act is a state law and every time the 'Supes try to mess with it or adjust it, someone takes them to court, and they lose EVERY time. Quit wasting taxpayer's money on bad legislation and build some more housing, already!

Supervisors can't override Newsom veto on evictions

From today's SF Gate, "San Francisco's Board of Supervisors failed Tuesday to override Mayor Gavin Newsom's veto of legislation that would have forced property owners to reveal evictions of the disabled or elderly to potential home buyers. The board voted 6-4, two votes shy of the eight needed to reverse a mayoral veto. Nevertheless, Gerardo Sandoval used the failed override vote to deliver a sharp rebuke to Newsom, saying his action had damaged his relationship with the board."

"The mayor cannot govern by veto," Sandoval said. "Leadership is not the same thing as opposition."

"Newsom vetoed the legislation, sponsored by Supervisor Chris Daly, on Jan. 20, shortly before leaving town to attend the World Economic Forum in Davos, Switzerland. The mayor is expected to veto in the next few days a companion ordinance that would require a Planning Commission hearing for anyone seeking to convert a tenancy-in-common property to condominiums."

"His spokesman, Peter Ragone, said Sandoval was misguided in his criticism, noting that Newsom has used his veto only three times since taking office. Ragone said Newsom had supported an amendment to Daly's legislation that would have provided information on past evictions to property buyers at the time final sale documents were being signed. However, the amendment was rejected."

New restaurants coming soon to Noe Valley

As I reported earlier, the Examiner has a piece today on the newly lifted moratorium on new restaurants in Noe Valley.

"After nearly 20 years of a cap on the number of new restaurants in Noe Valley, neighborhood residents will likely see a new menu of eateries over the next several years. The Board of Supervisors unanimously approved an ordinance Tuesday that will allow three new restaurants to open up on the neighborhood’s main drag — 24th Street — and allow existing and new restaurants to operate bars with the approval of the Planning Commission."

"Noe Valley residents, who pushed for a moratorium on new restaurants in 1987 to keep out fast-food chains and coffee shops, have recently been feeling a hunger for new places to eat and brought their concerns to Supervisor Bevan Dufty. The ban has also been credited with helping keep a number of storefronts empty on the block."

"Dufty said the ordinance still requires any new restaurant to get approval from the Planning Commission, so neighborhood residents will still have a say about what type of restaurants locate in the neighborhood."