Chronicle says 'No on B' (and so do I)

An editorial in Saturday's Chronicle suggests a NO vote on Proposition B,

Proposition B is a re-run of housing controls rightly vetoed by Mayor Gavin Newsom. The measure requires a property owner to disclose if an elderly or disabled tenant was kicked out prior to sale.

The proposal is another salvo in the war between tenant and landlord forces in a city famed for costly real estate and ballot fights. Proposition B does nothing but add a guilt trip on would-be buyers looking to buy a home. It won't create or preserve any housing for the tenants it pretends to protect. No on B.

I agree wholeheartedly with this suggestion. And I do not endorse the eviction of tenants (protected or not) for the purposes of real estate speculation. The way this measure is written, it just expects that we'll (as real estate agents) make this disclosure 'available' at all open houses. What does available mean? I suppose I could put it in the freezer, and it would be available, right? Does that serve anyone's best interest?

Voting NO on B would not be about agreeing with evictions or about encouraging them. It's about squashing poorly written legislation.

Other variations on this legislation were suggested, but were shot down by Daly et al., that would have put the disclosure in front of interested buyers prior to presentation of an offer to purchase. But that's not what this is about for Daly. This is about impeding the purchase process in any way imaginable and not about protecting tenants.

Daly submits proposed ordinances for June ballot [SFHomeBlog]
Proposition B Ellis Act Notification - an editorial [SFHomeBlog]
Proposition B: Flawed, Unnecessary and Misleading [SF TIC Coalition]
Prop. B Nothing But a 'Guilt Trip' [BeyondChron]

Interesting Price/Sqft Maps

Zillow has two interesting maps today on their blog (one for Seattle and the other for the Bay Area) showing color correlated price per square foot values around the region.

None of it is terribly surprising, but it's fun to look at nonetheless.

Image courtesy of ZillowBlog.com.

Rincon Center deal continues Beacon's S.F. shopping binge

From today's SF Business Times comes news of another rental to condominium conversion,

Beacon Capital Partners has agreed to buy both the office and residential components of Rincon Center for an estimated $300 million, continuing Beacon's astounding spending spree in downtown San Francisco.

The blockbuster deal, which is scheduled to close during the second week in June, totals 757,000 square feet of space in three buildings: 101 Spear St. (Rincon Center One), 121 Spear St. (Rincon Center Two) and 88 Howard St. In addition to more than 500,000 square feet of office, restaurant and retail, the building has 320 rental apartments, which Beacon plans to convert into condominiums.

This is another example of a building that was built as condos initially, but rented by the developer. They have every right to sell the units off at any time, but these folks seem to be looking at the displacement issues and offering a very sweet package for those in the 76 BMR units,

The yearlong sale process has been nerve-wracking for the tenants who rent the building's 320 apartments, according to David Osgood, president of the Rincon Center Tenants Association. When the Rincon Center was completed in 1988, the 320 housing units on floors seven through 12 were mapped as a condominiums, but have always been rental. The tenants were informed a year ago that the property was for sale and that in all likelihood the new owners would be converting the rental apartments to condos. Osgood said that "the uncertainty takes a toll."

"I find it deplorable that the building can be converted in this way but there is nothing we can do about it, apparently," said Osgood. "We just have to take a wait-and-see approach and hope to have a good professional relationship with the new owner."

While Beacon is primarily a commercial developer and landlord, the company is building new housing in Seattle and Boston.

The property, which includes 76 below-market-rate apartments, is part of the South Beach-Rincon Point Redevelopment area and under the control of the San Francisco Redevelopment Agency. Under a deal hammered out last August between Blackstone Group and Redevelopment, the 76 below-market-rate tenants would be able to buy their units at a price where monthly payments -- mortgage, taxes, and HOV -- would not exceed 32.5 percent of income. In addition the new owner would be obligated to pay a 5 percent down payment for any below-market-rate tenant who wants to buy their apartment, according to David Sobel, senior development specialist at the redevelopment agency.

Should the below-market-rate tenant opt not to buy or to continue to rent, they are still entitled to the 5 percent down payment.

"Basically they can take the money and run," said Sobel.

Furthermore, senior or disabled renters would be able to continue to rent if they so choose, according to Sobel, who said the idea was to "minimize displacement."[more...]

Despite the opportunity that the developers are providing with these BMR units, I'm sure Daly will jump in and make this so difficult or financially unfeasible that the deal will never happen.

Remember, these were originally mapped as condos. They do not have to provide anything outside of current BMR rules, but they are looking to do a very generous thing by providing this opportunity to the current tenants. Let's hope that Daly sees how good of an opportunity this is for those tenants, and that he finds a way to make it happen. I won't hold my breath, however.

Bubble Trouble? What to make of all the real estate trend news

This week's Surreal Estate column on SFGate discusses (from a homeowner's perspective) the deluge of information available on whether the market is strong or if there's a pending apocalypse,

It's springtime and real estate analysts are busy crunching numbers and spitting out prognostications at terrific speed. Open the paper or switch on the TV news or a radio talk show, and chances are you're going to encounter something about the real estate market and its recent downturn.

Some economists -- typically, those who have staked their professional reputations on being dark-horse skeptics -- are predicting nothing short of a global economic apocalypse. Others -- often those on the take from the real estate industry -- scoff at such dire visions. Don't listen to the doomsayers, they say, "we're in for a soft landing."

But how these perspectives affect the average gal with a mortgage or the ordinary dude with a dream of buying his own house is anything but clear. So who do you listen to, and what does it all mean? [more...]

Don’t Hold Your Breath [NYT]

Doublespeak With Forked Tongue

From Matt Smith in this week's SF Weekly,

Rarely does testimony at official City Hall gatherings meet high literary standards of eloquence and pith.

But then few forums want so badly for such qualities as a Board of Supervisors committee hearing, such as the one last week where politicians spent the better part of an hour engaging in surreal doublespeak in order to bad-mouth the nonprofit builder Mission Housing Development Corp.

"Supervisor, you can put that forked tongue back in your mouth," said Mission Housing's director of resident services Damon Harris, after Supervisor Chris Daly interrupted him during a public comment. In keeping with the truth-avoidance tenor of the proceedings, Harris' microphone was immediately turned off.

Harris was referring to a two-year-old political dispute, in which Daly has sought payback against a nonprofit housing developer for being more interested in housing than Daly's personal brand of politics.

Daly has worked to punish Mission Housing directors ever since they acted four years ago to stop what they saw as improper diversion of tax money away from building and managing low-income apartments, and toward supporting Daly's favorite partisan political causes.

Daly has absurdly characterized this crusade as a case of sound public stewardship. That's no surprise. Daly speaks from a private semantic universe when characterizing his own actions.

Yet outrageously, the mayor, the city controller, and other supervisors have aided Daly in this whitewash. [more...]

My only question here: why would a Supervisor who looks out for his constituents want to fight with a NON-PROFIT housing developer?

Emergency Community Meeting - Inner Sunset

From Metroblogging SF,

Next Thursday there will be an Emergency community meeting for the Inner Sunset. Hosting this meeting will be the District 5 Supervisor Ross Mirkarimi. District 5 mostly covers the business corridor of the Inner Sunset, and the rest is in District 7. Regardless of district, if you live, eat or shop in the area it's in your interest to attend this meeting and be heard. There will be a question and answer format.

The meeting's stated focus (from an email/flyer to residents) is on problems related to "homelessness in the neighborhood and in Golden Gate Park, graffiti and the quality of life". Also in attendance will be "key officials" from the following departments:

Park Police Station

Taraval Station

Richmond Station

District Attorney's Office

Department of Public Works

Department of Public Health

Recreation and Park Department

Department of Human Services

Date: June 1, 2006
Time: 6:30 p.m. - 8:30 p.m.
Location: County Fair Building
Address: Intersection of 9th Ave. and Lincoln Way

Proposed SoMa tower could be tallest building on West Coast

From John King's Urban Design column on SFGate,

If you've ever wanted to look down on the Transamerica Pyramid, stick around San Francisco for a few years and you might get your chance: City planners say it's time to make room for a new tower of at least 1,000 feet that could be the West Coast's tallest building.

The proposal was presented this morning to the Transbay Joint Powers Authority, a city agency that seeks to build a new transit terminal south of Market Street. Planners want to raise heights near the terminal site to allow two towers as tall as the 853-foot Transamerica Pyramid -- and a third that would rise at least another 150 feet.

The high-rises would also generate money for the transit terminal, with revenue from land sales and property taxes being steered to the transit terminal.

City planners say that with new residential towers being built between Mission Street and the Bay Bridge, there's a new spot for a few extra-tall towers to finish the picture and create a distinctive peak on the skyline. [more...]

Transbay proposal includes possible tallest building on West Coast [SF Business Times]
Hey There, Big Guy [SFist]
City eyes raising tallest building on the West Coast [Examiner]
S.F. planners have high hopes for new center of downtown [John King - SFGate]
Towers' tall task must be to serve the public good [John King - SFGate]

Rent Ordinance Measure Moves Forward at City Hall

Yesterday's Land Use Committee added yet another ridiculous restriction to an already overbearing rent policy. This time, however, the Supervisors are concerned about parking and storage.

From today's BeyondChron,

The residential rent ordinance would clarify existing law and require landlords to prove just cause when severing services included with a rental unit. The specific services in question were primarily related to common areas including access to garages and parking spaces, laundry facilities, lobbies, storage units, and yards. The measure was sponsored by Supervisor Ross Mirkarimi and co-sponsored by Supervisors Daly and Peskin.

The meeting included testimony from nearly a dozen citizens citing personal examples of landlord abuse and harassment. Tenants recalled incidents in which their parking spaces were revoked without explanation as well as returning home to find personal possessions removed from storage and thrown down to the street. By the end of the hearing Supervisor Sophie Maxwell from District 10 asked to be added as a co-sponsor of the measure. She stated simply “It’s about fairness,” and her words seemed to accurately describe the rationale behind altering the existing law.

As it stands, section 37.2r of the residential rent ordinance does not specifically compel landlords to present just cause when rescinding services. A tenant’s recourse involves taking a landlord to small claims court or, more likely, applying to the rent board for a decrease in rent. But as Ted Gullicksen of the San Francisco Tenant’s Union points out, “People want the service that was promised as a part of the rental unit, not the money.”

For many, it seems that the rent decrease would never make up for the loss of services. Catherine Averill had lived in her apartment for eleven years when without notice a landlord evicted her from the use of the garage. [more...]

What does this mean to current and future renters? Anyone who doesn't have a very clear item in their lease concerning parking and/or storage may end up losing that right, or they might end up with a separate agreement with higher costs or tighter restrictions.

Landlords? Property owners? Perhaps you should consult an attorney on how to draft parking and storage agreements...

Help a few, while hurting everybody else. That will be the legacy of the 2006 Board of Supervisors.

Just beware, short-sighted Supervisors, of the unintended consequences.

Please help shape San Francisco’s economic future!

From SFGov.org,

Attend a community meeting and help develop the first-ever San Francisco Economic Strategy

Thursday, June 1, 2006
6:00pm-8:30pm
Milton Marks Auditorium
California State Building
455 Golden Gate Avenue

RSVP to sfecstrategy@sfgov.org

There's an art to converting an old building while keeping its soul

From John King's Urban Design column on SFGate,

The days are gone when old buildings were either torn down or gussied up. Now they're as likely to become fig leaves covering something that otherwise is entirely new.

Call it selective preservation. Purists might cringe, but the trend is gaining favor as cities try to make room for the new without entirely eradicating the old. It's especially popular in San Francisco -- and especially in such once-remote locales as Townsend Street near AT&T Park, where three former warehouses within a block of one another show the pitfalls and potential of the approach.

The one warehouse where work is finished is a textbook example of what not to do, while a proposal in the works next door shows how difficult it is to balance the old and the new. But the last of the trio is genuinely exciting -- a fusion of the present and past that has the potential to make both pieces shine.

Of the completed project, the less said the better. I reviewed 88 Townsend St. last year, and the details haven't changed: Five floors of condominiums shove against a wall that is all that remains of a one-story warehouse from 1882. The "addition" is cloaked in thin, yellowish bricks and arched windows that vaguely evoke nearby structures. But the result isn't respectful, and it isn't preservation. It's a cartoon. [more...]

Top 2% of Market Still Selling As Overall Sales Volume Falls

From Realestatejournal.com,

Despite growing indications of a cooling housing market, one niche continues to sell briskly -- multimillion-dollar homes.

Over the past few months in the overall U.S. real-estate market, more homes have crowded the market and sales volumes have fallen in areas from Houston to Boston and Washington, D.C. Freddie Mac, the government-sponsored provider of mortgage-loan funding, predicts total home sales this year will be down by about 7% from 2005's record levels. Yet one area of the market appears immune to all that: In many locations, homes on the ultrahigh end of the price scale -- those costing $3 million and up -- have been selling in increasing numbers.

In San Francisco, 18 homes in that range sold in the first quarter, up from 15 in the same period last year, according to real-estate information service DataQuick. In Jackson, Wyo., that number rose to 21 homes from 17, according to Jackson Hole Real Estate and Appraisal. Higher up the scale, 10 homes at $5 million or more in Palm Beach, Fla., sold in the first quarter, up from eight last year, says the county assessor's office.

One factor in the growth could be that median prices of all homes have risen, pushing more homes into the luxury end. Also, inventory is up across the board. But at a time when the overall number of home sales has declined in many markets, the number in the ultra-high range has continued to grow. One possible message: Just as it is often said that the rich aren't like the rest of us, the real-estate market of the rich appears to bear a decreasing resemblance to the one experienced by most Americans. [more...]

Luxury home values hit record in S.F. [SF Business Times]

ABC Vol. 2 - Anybody But Chris

SFist has an interview with another one of the District 6 contenders...

So we've moved up a notch on the news scale -- instead of just reading anti-Chris Daly position papers on the internet, we actually reached out to the candidates we could find with working email addresses and asked them if they'd be willing to sit through an arduous SFist interview. Get to know these questions, folks, we're asking them of all the candidates that expressed willingness to participate.

Our first District 6 victim interviewee was actually our first District 6 candidate profile. Everyone welcome back Manuel Jimenez!

What's your name, how old are you, and what do you do?
Manuel Jimenez, 38, Attorney (Deputy Trial Counsel/Office of the Chief Trial Counsel/State Bar of California) Married to Bo (ph "Bow") and father to Timo (ph "Tee Mow")

So the name of the SFist District 6 election column is "Everyone Hates Chris." Why do YOU hate Chris Daly?
Although I respect Mr. Daly, his work, and his drive to advocate for those in our community that are routinely ignored by the monied interests that dominate San Francisco politics and policy, I HATE Chris, because I don't fall into his favored constituency (I'm actually more like him than like his political base, being that I own a condo), and therefore, the issues that affect me are routinely ignored. [more...]

ABC Vol. 1 - Anybody But Chris [SFHomeBlog]

Manuel Jimenez For District 6 Supervisor [his blog]

San Francisco Homeownership Fair - June 3rd

From the Mission Economic Development Agency...

The SF Homeownership Fair 2006 is a project of Mission Economic Development Agency in collaboration with the SF Affordable Homeownership Steering Committee, a coalition of real estate and mortgage professionals, government agencies, and community organizations working to increase affordable homeownership opportunities in San Francisco.

SF Homeownership Fair 2006

John O'connell High School

2355 Folsom St. (between 19th & 20th Streets)

Saturday, June 3rd--11am to 3pm

Learn about special homeownership programs through workshops and information tables

Entertainment, Fun & Music!

For information call 415-282-3334 ext. 16

FREE!

Pest control forces homeowners to pick their poison

From Carol Lloyd's Surreal Estate column today on SFGate,

At the final meeting with my contractor for the proverbial "punch list" of items to be done on our remodel, I pointed peevishly to some sawdust-y stuff on the floor. "Do you think your guys could be a little more careful about cleanup?"

The man smirked. "That's not my guys -- that's termites," he said, evidently happy to have caught me blaming him for something beyond the scope of his contract. "You're going to have to tent the place."

After eight months of construction that practically gutted every room in the house, I blanched at the idea that I had ended up with a house infested with an insect that was devouring my life savings like a bag of potato chips.

According to the National Pest Management Association, termites cause more than $5 billion in damage every year -- more than fire and more than any other wood-destroying insect. Every year more than 2 million homes are treated for termites. What's worse, this plague usually isn't covered by homeowner's insurance. And to add insult to injury, here in Northern California we're blessed with all three species of termites: subterranean, dry wood and damp wood. [more...]

Perception & the media versus reality

Kelly Zito is at it again today... Quoting her two favorite sources in California, Jon Karevoll from Dataquick and Ed Leamer from UCLA... Quoting from press releases as if she just doesn't have time to get out and see what's really going on in the world. Even the SF Business Times just ran the DQ press release, but they don't pretend that it's journalism.

Then she follows that by under-emphasizing quotes from agents who are actually working in the trenches and who do know a thing or two about what's happening in San Francisco.

I read the press release from Dataquick, and it's got all of the same items as Kelly's article. Only she spins it even further towards her usual doom 'n gloom. And I won't even get into Ed Leamer's comments. He would love to see the world come crashing down around him so he could proclaim that he saw it coming. And when it doesn't he's going to look pretty weak...

So, that said, here's what's really happening in the market right now. Today. From the street.

Yes, there is more inventory. And yes, there are fewer homes selling than in May 2005. That is a function of both interest rates and a perception (somewhat fueled by the media) that the sky might fall, maybe just a little bit, someday. Or so they hope.

But just as Kelly's article says (hidden behind the headlines), prices are still rising. Not dropping... RISING.

So to me, this is a great, balanced market. Just as I've been saying all spring. If you go out and look at what is really happening with the properties that homebuyers really want to buy, you'll see that most of them are selling quickly, and many of them with multiple offers.

The thing to remember about this market is that you really need to understand values and comps when purchasing. If you know that properties have been selling at a certain price/sqft or if you've seen actual units/homes that have sold, and you're writing an offer on another property, you'll be better equipped to write an offer that won't cause you to overpay, and it won't insult the seller.

Then again, insulting the seller isn't always a bad thing. This is part of the 'balanced' market. Sellers CANNOT look at their neighbor's sale from last summer and slap on an additional 20%. But some of them are, and those are the ones who will either suck it up and take what the market will bear, or they will dig in their heels and stay in a property that won't command the price they want.

My read on the market right now is that a property has about two days to get momentum from buyers. If it's presented properly, priced right, and well located, it will get that attention and the sale will likely be very smooth with happy clients on both sides.

If the property is in any way not what the buyers want to see (over priced, poorly located, or poorly presented), you'll end up with a property that sits on the market for a while.

And this is where hiring the right agent (as either a buyer or a seller) comes into play. We're working twice as hard right now to make sure that our listings are going to get the attention they deserve, and we're working double-time to sift through the larger inventory to find the hidden (or obvious) bargains that do exist.

But no, this is not doom 'n gloom. Sorry, naysayers. This is still a good, balanced market where sellers can receive a fair price for a well-marketed property, and where buyers can take an extra few days or a week to see everything in their price range and make an educated decision about their purchase.

Unless of course they walk into one of those properly marketed, staged, and well-priced properties in a great location. Those still have offer dates, still get multiple offers, and still sell very well.

Last week alone we saw 50% of the properties that went into contract among the Zephyr offices selling with multiple offers and 65% of all of the sales were over asking. But there were also 15% of the total properties that sold under asking, too! So there's a little bit for everyone.

It all depends on what you're looking for, how much legwork you're willing to put into the process, and how good your agent is...

And once interest rates level off, I think we'll see another big uptick in buyer activity. Right now, I'm seeing people sitting back a bit while they 'watch' what happens. If we have a couple of weeks of flattening or a message from Bernanke that they're taking a break on interest rates, that's all I think it will take.

Besides, the rest of the economy is still healthy enough to keep people in their jobs and paying their bills. So don't count on a housing downturn in SF just yet.

Three straight days of sensational journalism from Kelly Zito [SFHomeBlog]
Housing market headlines can be misleading [SFHomeBlog]

$2.85B housing bill makes November ballot

From today's SF Business Times,

Californians will vote in November on a measure to raise $2.86 billion for affordable homes, emergency shelters and residential infrastructure around the state.

The measure, which will be Proposition 1C on the ballot, was backed by the affordable-housing advocacy group Housing California. It would sell bonds to finance:

$395 million worth of apartments for seniors, families and people with disabilities.

$50 million for emergency housing assistance. The money would be used to build and renovate emergency shelter and transitional housing for homeless families with children and battered women, among others.

$195 million for a Supportive Housing Program that would build apartments for people with chronic disabilities.

$135 million for farmworker-housing grant programs.

$300 million for the Cal-HOME Program, funding for home ownership.

$1.35 billion for residential infrastructure.

Boycott housing? Uh huh...

Saw this on the Inman Blog this morning... Apparently a San Francisco couple is going to do their small part to change the world by starting a housing boycott. I guess their rationale is that if everyone stops buying houses, prices will come down.

Problem is, there are just too many people that will wait in the wings for those little opportunities to buy and who can't really justify NOT buying any longer.

They might have a better shot at a gasoline boycott, IMHO...

And as Jessica said on Inman, "Is it really boycotting though if you really cannot afford to buy a house in the first place? Seems like the natural laws of economics playing out."

More than likely what will happen is you'll have one large party of very bitter people getting together online to bitch about things they cannot change... Then again, maybe I'm wrong...

But as they say in some of their comments, I'm a homeowner, so I'm just 'scared'...

How Much Is That Windmill? [NYT]

'Crisis' in evictions doesn't add up when you do the math

From today's San Francisco Business Times comes a guest editorial written by Mike Sullivan of Plan C,

Recent attacks on homeownership in San Francisco have been justified as necessary reactions to an evictions problem.

Tenant activists have focused particularly on so-called "Ellis Act" evictions, in which the building owner goes out of the landlord business entirely, and displaces all tenants in the building. By focusing only on Ellis evictions -- just one piece of the eviction puzzle -- these activists have managed to create the impression that there is an evictions crisis in San Francisco. A recent San Francisco Examiner article claimed that the number of Ellis Act evictions in 2005 represented "the highest level in San Francisco since the dot-com boom," which Supervisor Daly described as being at a "crisis level."

The problem with this analysis is that it's only looking at one piece of the eviction puzzle.

The facts show a completely different story. Any complete analysis of evictions in San Francisco must look not only at Ellis evictions, but also "owner move-in" (OMI) evictions, where owners move into units they own, but do not evict tenants in other units. OMI evictions peaked at 1,400 evictions in 1998, but have gone down almost every year since, hitting a record low of 288 evictions in 2005. [more...]

This editorial brings up many points that those of us who are both pro-homeowner and pro-tenant can't seem to get through to those in power. Proposition G (referenced in Mike's article) began this problem by limiting OMI evictions, sparking the Ellis Act trend.

And this goes right back to my oft-argued point that if you place restrictions on this real estate market, those who want to own homes will find a way to do so.

In the meantime, those that don't want to jump through hoops will see prices continue to climb with the further restrictions placed on the market by our ever-intelligent Supervisors.

As my memory serves, prior to Prop. G, TIC partners could purchase a building and owner-occupy as many units as they liked as long as each owner held at least a minimum share of the ownership. This was not about speculation, it was about ownership.

What led to last week's vote was the practice of sellers and developers clearing out buildings so that buyers wouldn't be burdened with the task (or the guilt). Many of these buildings would not have been cleared out if the Ellis Act hadn't become so common-place, especially the larger buildings (5+ units).

So as you think about whose fault this really is, perhaps you should stop pointing the finger at the so-called 'evil' landlords, and look to those who claim to be looking out for the tenants... Who are they really helping here?

Housing prices to blame for Mission deaths? [SFHomeBlog]

San Francisco Mart Sample Sale this Saturday

For those that know, this is a do-not-miss furniture sale that happens only twice per year...

For those that need any type of furniture or household accessories and don't yet know, this is something you don't want to miss...

San Francisco Mart Sample Sale
Saturday, May 13th
9am - 5pm
1355 Market Street (between 9th and 10th)

For more information and a $1 off coupon, visit SFMart.com.

Bayview Redevelopment Decision Postponed

From BeyondChron,

After more than two hours of passionate public testimony, the Board of Supervisors put off a decision on the controversial Bayview-Hunter’s Point Redevelopment Plan for one week at Tuesday’s meeting. The postponement will allow supervisors to consider several late amendments to the plan and the San Francisco Redevelopment Agency to respond to community concerns.

The plan, which has been in the works for over a decade, would aim to revitalize the downtrodden Bayview-Hunter’s Point neighborhoods by fostering development of new business and housing in the area, specifically targeting the Third Street business district. The Bayview-Hunter’s Point neighborhoods include the largest concentration of African Americans in San Francisco, but have also in recent years been the focal points of a wave of violence.

However, many community members expressed concern that redevelopment would hasten gentrification of the neighborhood and fail to improve the lives of local residents, as some say it did in the Western Addition, a previous redevelopment project. Though the plan does require that 25% of all projects must be affordable housing, many said they fear that rising prices will contribute to the flight of African Americans from San Francisco. [more...]

BIG day for housing at the Board of Supervisors on Tuesday [SFHomeBlog]
Bayview Hunters Point Redevelopment Plan moves closer to approval [SFHomeBlog]
Bayview Hunters Point Project Area Committee

Supervisors, Mayor Reach Agreement On Eviction Prevention

From BeyondChron,

The San Francisco Board of Supervisors passed landmark legislation yesterday aimed at stemming the tide of speculator evictions sweeping the city. Mayor Gavin Newsom has announced he will sign the measure into law. The proposal will prevent any building where Ellis Act evictions or the eviction of senior, disabled or catastrophically ill people occurs from ever becoming a condominium. In addition, any building where two or more no-fault evictions occur will be barred from becoming condos for 10 years. The legislation’s passage marks a major victory for tenants and the success of years of advocacy by tenant’s rights groups.

This is nothing new since I posted this information yesterday, but there is one interesting piece of the legislation which I missed when I read through the actual amendment...

...the original legislation barred buildings where multiple no-fault evictions occurred from ever entering the lottery for condos. An amendment was made to allow buyers of such buildings to apply for condo conversion, but only after living in their unit for ten years. Currently, applicants have to live in the unit just three years.

So, this isn't a complete denial of condo-convertibility, but kicking that timeframe up to ten years is all but a complete ban...

Condo conversion compromise eases vote on first reading [SFGate]

Buy a link, help a 24-year-old buy a house

From Inman News,

A 24-year-old entrepreneur hopes to raise enough money to fund his first home by selling advertising links on his Web site, StartingWithADollar.com, that become progressively more expensive as each one is sold.

"Hi, my name is Jonathan Westley, im [sic] 24 and unemployed. I live in a small town in Hertfordshire (which is about 30 mins north of London) in the UK," the enterprising individual tells us on his site.

As of today, it appears that he has sold about 10 links to a variety of Web sites. Sound like a good idea to you? Do you think he'll ever make enough money for his mortgage?

As of Wednesday night, he's up to $85 and 14 links...

Need to keep house payments low? Try a 50-year mortgage

From USA Today,

Those struggling to afford a home may be wondering how long their mortgage payments can be stretched out.

The new answer: a half-century.

A handful of lenders have begun offering 50-year adjustable-rate loans to buyers who need to keep payments low in the face of record home prices and rising rates.

Most big banks already offer 40-year mortgages, which account for about 5% of all home loans, according to LoanPerformance, a real estate data firm. So far, only a few small lenders have rolled out the five-decades-long mortgages.

Mortgage experts caution that the 50-year mortgage is best-suited for those who plan to stay in their home for about five years, while the loan's interest rate remains fixed.

50-year mortgages? [SFHomeBlog]

Dufty's Response to the Peskin Amendment

I received copies of this email from Bevan Dufty from a couple of different people this afternoon. And for the record, Dufty voted IN FAVOR OF Peskin's newly amended legislation...

I want to thank many of you who contacted me to say that the legislation
proposed by Supervisor Peskin was unfair. I agreed that retroactively
changing the rules was not appropriate and that the 1999 date negatively
affected many individuals who purchased TICs from sellers who previously
had conducted Ellis evictions,

It was helpful to hear from individuals who shared their stories of how
difficult it is to become a homeowner in San Francisco.

I am a strong advocate for home ownership. I was proud to have authored
legislation to reform the Condo Lottery so that those who have been in
the longest are allowed to convert. It is considered the first pro-home
ownership legislation approved by the Board since 2000.

Over the past two weeks I worked with Supervisor Peskin and the Mayor's
Office on amendments to guide the future rather than changing rules in
the past.

A copy of this amendment is attached for your review. The amendment was
adopted 8-2 and Supervisor Peskin's legislation passed overall 7-3.
Mayor Newsom's Office participated in these discussions and has
indicated that he is not opposed to the legislation as amended.

I recognize that legislative language is complicated. Please feel free
to contact Boe Hayward of my office (boe.hayward@sfgov.org or 415
554-6987) or Deputy City Attorney John Malamut (john.malamut@sfgov.org)
with specific questions or situations. I have asked them to assist you
in understanding the details of this measure.

I respect that many home ownership groups with whom I have worked, Plan
C and TIC Coalition among them, do not support this legislation.

There was a Task Force led by Mayor Newsom and Supervisor Peskin last
year that sought to create a comprehensive reform package, including
limits on Ellis and increasing the Condo Conversion cap. I regret that
this effort disbanded.

But it has been difficult for me to achieve pro-home ownership goals
with the specter that anything encouraging ownership unalterably leads
to more Ellis evictions.

Next week, I will introduce legislation for a trial program for TICs
that enable vulnerable resident-tenants (long-time residents, elderly,
disabled) to become owners in a way that bypasses the lottery. It is
important that we reward good behavior and not just penalize bad
behavior. I have enclosed a draft of this legislation and welcome your
thoughts and suggestions on how to improve it.

I believe that today's legislation helps set-aside the issue of Ellis
Act evictions and I believe we can finally gain ground in championing
reforms that help individuals and families become owners.

I recognize that some will disagree with me on this legislation; even to
the point of not supporting me in the future. I respect that. But
anyone who has worked with me or watched me at the Board knows that I
work hard and it is my pledge to balance today's vote with actions that
meaningfully help those who are striving to own their home.

Again, thanks for your contact and I welcome your questions or ideas for
future legislation.

Bevan
554-5646
Bevan.Dufty@sfgov.org

Attached to this email were two documents, which I have available for download:

Peskin's Amended Legislation

Dufty's soon-to-be-presented legislation to help tenants purchase their units

Thanks to Todd and Jackie for each forwarding this email along to me!

Dufty’s District at Epicenter of Ellis Eviction Wave [BeyondChron]

Peskin legislation retroactive to May 1, 2005?

Logged on to SGTV to listen to today's BoS meeting, but was too late... Then I got an email from reader Shawn...

Watching the SFGT Board Of Supervisors coverage…

Proposed amendment to the TIC legislation: make retroactive to May 1, 2005 instead of January 1, 1999.

Ties on first vote, 5-5. Much debate. “Some of this language is new to us; we haven’t seen before today’s meeting,” says Dufty.

Debate ends with Chris Daly asking the Mayor’s Liaison: “Will you support if we amend?” Yes, Newsom would support.

Re-vote: 7-3. Amendment passes. Dissent is Ma, Alioto-Pier, Elsbernd.

After amendment passes, immediate vote on full legislation.

Passes 8-2. Dissent is Ma, Alioto-Pier.

May 1, 2005 is better than 1999, but why not May 1, 2006? What about the last twelve months? How are those TIC owners any less affected than the ones from the six years prior?

Glad to see an amendment, but still disappointed.

Thanks a million, Shawn. I just couldn't get back to my computer in time today to listen!

Land trust buys Chinatown building

From today's SF Gate,

San Francisco Community Land Trust completed its $1.5 million purchase of a 21-unit Chinatown apartment building Monday.


In an agreement with the tenants, the land trust will convert the building at 53 Columbus Ave. at the corner of Gibb Street into a housing cooperative in a bid to create a model for affordable housing ownership in San Francisco. Resident-owners will own a limited-equity stake and cannot re-sell the units at market price


The land trust will retain ownership of the land under the building, and each household will own its unit. The co-op will be run by an elected group of tenants, whom the trust will train to manage the property.


The land trust purchased the building from San Francisco City College, which had determined that necessary seismic upgrades made it too expensive. It had planned to house part of its expanded North Beach-Chinatown campus in the building.

This sounds like a great way to keep some housing affordable. And one that doesn't put the responsibility on an unwilling property owner. What a concept!


There's no mention of the vacancy status of the building in this article, but in an article on the Community Land Trust web site, they discuss the tenants purchasing their units.


This does point out, however, that since they're just doing a large cooperative and never planning on a condo conversion, that they (or another entity in another building) could feasibly Ellis Act a building and not care about whatever decision the supervisors make today...


That's the problem with short-sighted legislation... There are ALWAYS ways to get around the small-minded restrictions that the supervisors come up with. The Ellis Act was made popular in response to Proposition G in 1998. If today's legislation passes (with or without the retroactivity), attorneys and landlords that are much smarter than our current crop of supervisors (recent kindergarten graduates would fit that bill) will just find another way to solve the problem.


Cooperatives are one solution... The other is individual TIC financing... Legislation won't stop this process. It will only harden the resolve of people who want to own homes, and they'll find other ways to make it work. Just wait and see...



Chinatown building may be bought by tenants [SFCLT]

Updated July 25, 2006
Chinatown renters unite to own homes [SFGate]

BIG day for housing at the Board of Supervisors on Tuesday

Tomorrow's BoS meeting will likely be (and darn well should be) heavily attended by housing advocates, with two very big items up for a final vote:

1. Peskin's condo conversion restriction legislation
2. Bayview/Hunter's Point Redevelopment

There was lots of talk on #1 when it was first suggested by Peskin and approved by the Land Use Committee, but given that it hits the Board of Supervisors tomorrow, there seems to be way too little attention being paid to it today...

The retroactivity of this legislation back to 1999 seems to me like little more than a way to provide a concession in tomorrow's meeting. I've heard from a couple of sources that Peskin will amend his own legislation to exclude the retroactivity. This makes otherwise bad legislation look like a political BARGAIN. It's still really crappy legislation, but it will likely pass solidly and will not get a veto. Newsom can't afford another anti-tenant veto at this point...

The item is near the middle of the program (#19 of 45 items). The PDF of the actual legislation can be found here.

The second item has also fallen quiet lately... The Bayview/Hunters Point Redevelopment was a very hot topic in February/March of this year, and is in front of the BoS as item #29 of 45. The 114-page PDF file can be found here.

The pro-redelopment folks swear up and down that this will not affect any existing housing and will only add more housing and job opportunities while reducing "blight". The folks who lived through the 1960s in the Fillmore don't believe them, however, and are concerned about gentrification.

If you care about either of these items (and who in San Francisco really wouldn't be affected in one way or another by BOTH of these issues), you should send an email or make a call to your supervisor RIGHT NOW.

With so much on the agenda tomorrow, it's entirely possible that one or both of these will be continued, but it's not worth saving 30 seconds of time to find out that they were both voted upon and you didn't make that call.

Just take a minute and do it. Your opinion will be heard, no matter which side of the debate you're on.

TIC eviction legislation moves on to full board [SFHomeBlog]
The 'cost' of Peskin's eviction legislation [SFHomeBlog]

Bayview Hunters Point Redevelopment Plan moves closer to approval [SFHomeBlog]
Public Hearing for Bayview/Hunters Point Redevelopment - March 7th [SFHomeBlog]

Housing conversion of soon-vacant Federal Building?

From today's SF Business Times,

Forest City Development wants to put its stamp on gritty United Nations Plaza, proposing to build 199 apartments in the soon-to-be vacated federal building at 50 U.N. Plaza.

A partner in the new Westfield San Francisco Centre and the developer of the abandoned Public Health Service Hospital in the Presidio, Forest City is one of two finalists to reuse the 217,000-square-foot structure on the North Side of the plaza.

Susan Smartt, senior vice president for Forest City Residential West, said the company had responded to the federal government's request for qualifications on the project. A more detailed request for proposals is due on July 20.

"It's very early in the procurement process and we are evaluating the requirements of the RFP," said Smartt.

The other bidder could not be confirmed at press time, but sources familiar with the bidding process said it is the City and County of San Francisco. Anthony J. DeLucchi, acting director of property for the city's real estate division, said he would not comment on the bid, but noted that it "we have over 1 million square feet of office space under lease in the Civic Center area and certainly have a need" as leases expire.

The six-story building contains 350,000 gross square feet and 217,000 rentable square feet, with a 24,000-square-foot interior courtyard. Much of the building must be preserved under historic preservation laws, including the exterior facade, the lobbies, corridors, main stairways, interior courtyard and two office spaces: the Navy Board Room on the second floor and the Commandant's Office Suite on the third floor.

Real estate attorney James Haas, who has worked for decades to preserve and clean up the Civic Center neighborhood, said he "commended Forest City for taking the risk. Over the long term, I think housing would be a good use for that building."

Help Close the Potrero Power Plant

From the Potrero Hill SF blog...

The California Regional Water Quality Control Board votes whether or not to grant the Potrero Plant a five-year National Pollutant Discharge Elimination System permit on Wed, May 10.

If you’d like a ride to the meeting (plus complimentary coffee and pastries) meet at Klein’s Deli (501 Connecticut St.) at 8:15 am on May 10th.

Word on the street is that it’s the best opportunity in the past few years to shut down the Power Plant.

May 10, 9 am, Auditorium, Elihu Harris State Building, 1515 Clay Street, Oakland
Please RSVP to Steven Moss, San Francisco Community Power, 415.643.9578

Potrero Hill Power Plant Plan [Curbed SF]

Train Test on Third Street Light Rail

Looks like MUNI is beginning to test trains on the 3rd Street line...

DO NOT BOARD

Testing Trains on Third Street Light Rail

Beginning on April 24, 2006 and continuing intermittently through June

Trains will operate from 4th & King Streets to Visitacion Valley along 3rd Street and Bayshore Boulevard, testing various elements of the new rail extension. During testing, trains will not pick up passengers.

Testing will occur from 8:00 a.m. to 5:00 p.m., although occasional night testing is possible.
The purpose is to ensure that the construction meets all the technical specifications.
Safety reminder: motorists, pedestrians, and cyclists please use extra caution around the trains operating in the area.

Systemwide testing and staff training starts in July.

Third Street Rail Service Still Almost a Year Away [SFHomeBlog]

Meeting to consider Fort Mason Muni line

From today's SFGate,

The National Park Service will hold a public meeting Tuesday (May 9th) to discuss extending the San Francisco Municipal Railway's streetcar service to Fort Mason.

The Park Service is working with the Municipal Transportation Agency, which oversees Muni, as well as the Federal Transit Administration to begin an environmental impact study of extending the F-Market line. The line currently ends at Fisherman's Wharf.

Extending F-Market would require reopening a rail tunnel, built in 1914, that runs beneath Fort Mason and has been closed since 1983.

The meeting will take place from 6 p.m. to 9 p.m. at the Fort Mason Officers' Club, at Franklin Street and MacArthur Avenue, with an open house for the first hour, presentations beginning at 7 p.m. and a public comment period.

SF MUNI Official Site

Construction to begin on Tenderloin center

From today's SFGate,

The Salvation Army will begin building an $80 million community center and affordable housing complex in the Tenderloin next week that is expected to house at least 113 people and serve more than 2,000 youths and senior citizens.

The centerpiece of the complex, at Jones and Turk streets, will be the community center for young and elderly people. Among its features will be nutritional programs, a dance studio, a gymnasium and a swimming pool.

The center is being created with $54 million donated from the estate of Joan Kroc, wife of the founder of the McDonald's hamburger chain. Half that money is being used to erect the building, and the other half will provide an endowment for services, Salvation Army spokeswoman Jennifer Byrd said Tuesday.

A separate pool of $26 million from a variety of sources will fund the 113-unit housing development. Those sources include the state Department of Housing and Community Development and $8.6 million in donations that the Salvation Army is in the process of raising.

The units will be rented to youths leaving the foster care system and adults in substance abuse recovery.

The project is expected to be completed in July 2008.

PG&E to shut down Hunters Point power plant on May 15

From today's SF Business Times,

Pacific Gas & Electric Co. said late Monday that it will close its Hunters Point power plant -- the last in San Francisco -- on May 15.

The utility said a new transmission line just put into operation in San Mateo County will provide power reliability to replace the Hunters Point plant.

"PG&E has worked long and hard to plan and build transmission projects that will allow us to close Hunters Point Power Plant, just as we promised," said Tom King, president and CEO of PG&E, in a statement. The Jefferson-Martin 230,000 volt, $221 million transmission line was turned on April 29.

All but three miles of the 27-mile line are underground within roadways, with the remainder overhead in an existing utility corridor along the edge of a watershed. A short, temporary overhead portion spans the roadway above Crystal Springs Dam near Hillsborough. That portion will eventually be replaced with an underground line when the county rebuilds the bridge.

PG&E (NYSE: PCG) said it will officially close the plant on May 15, but the utility said it doesn't expect to run the plant during the next two weeks.

Hunters Point PG&E Power Plant To Close [SFHomeBlog]

San Francisco City Guides

Just got this from a friend and client who works for a group called San Francisco City Guides, which leads walks around different neighborhoods in San Francisco...

As anyone who knows me knows, I am a proud member of City Guides, a group that offers free, volunteer-led walking tours all over San Francisco. I personally endorse all our wonderful tours, and recommend taking them whenever possible (especially the Castro and Mission Dolores tours, which I lead). But I really push the tours during the months of May and October, when the weather is generally more conducive, and because these are the months we have extraordinary or infrequently scheduled tours. I've slated the following tours for myself, and I encourage anyone to come along. Most of these tours are exclusive to May/October, and some of them are one day only. Go to the blog to see the description of each tour. Note: Weekday tours are tentative, pending my continued un- self-employment.

Monday, May 1, 11 am: Bawdy & Naughty -- meet at the east Maiden Lane Gate, off Kearny btwn Post & Geary

Saturday, May 6, 2 pm: Discovery Walk: Mission Creek -- Meet in plaza behind Caltrain Station, 4th & King Streets

Sunday, May 7, 11 am: Dogpatch & Potrero Point -- Meet at 18th St & Tennessee St

Friday, May 19, 11 am: Russian Hill Stairways -- Meet at Hyde & Filbert

Monday, May 22, 7 pm: North Beach by Night -- Meet in front of Specs Café, 12 Saroyan Place, just off Columbus, south of Broadway

Saturday, May 25, 10 am: Excelsior stroll -- Meet at Excelsior Library, 4400 Mission St at Cotter

Sunday, May 26, 10 am: Fairmount Hill -- Meet at Glen Park Library, 653 Chenery St

Walk With Me [Hedonia]

San Francisco City Guides www.sfcityguides.org

Condo projects selling first, building later

From today's SF Business Times,

Encouraged by new legislation allowing binding sales contracts as soon as construction starts, San Francisco highrise developers are pumping millions into deluxe sales centers aimed at taking buyers' money months or years in advance.

In a Harrison Street warehouse next to the One Rincon Hill site where construction recently started on the first of two slender skyscrapers, developer Michael Kriozere is building out a $2.5 million sales office featuring a fully appointed, two-bedroom model apartments with lightboxes simulating views both night and day. The 9,000-square-foot sales office, with an oval-shaped rotunda, will open in June -- some 20 months before the first of two of Urban West's slender Rincon Hill towers is scheduled fo