The proposed and rather contentious condominium conversion lottery bypass for a fee legislation took an interesting twist and turn on Monday with Supervisors Chiu and Yee amending the legislation with the backing of the San Francisco Tenants Union which had previously opposed the bypass.
As amended, the proposed legislation which was originally introduced by Supervisors Farrell and Wiener would establish a six-year bypass program during which the roughly 2,500 TICs that participated in either the 2012 or 2013 lottery, and buildings which have not participated in the lottery but already have owner occupancy requirements in place, will be able to condo convert for a fee.
The existing conversion lottery for units that don’t qualify for the bypass would be suspended for at least 10 years and future conversions for buildings with five or six units would be eliminated by way of the lottery.
Our edited version of Plan C San Francisco’s overview of the amendment’s key points:
The amended legislation creates a 6-year lottery bypass program. During the program, the annual condo conversion lottery will be suspended and will continue to be suspended for at least 10 years. Lifetime leases would be provided for existing tenants of units bypassing the lottery.
All buildings that participated in the 2012 or 2013 lottery and remain eligible will be able to bypass the lottery. Buildings that have participated and lost in 5 or more lotteries will bypass in the first year of the program, paying a bypass fee of $4,000 per unit. All other buildings that participated in the 2012 or 2013 lotteries and continue to remain eligible will be able to bypass in the second year of the program, paying a bypass fee that is reduced by 20% for each year the building participated in a previous lottery (first-time participants in the lottery pay $20k per unit, two-time participants $16k, three-time participants $12k, etc.).
In years 3-6 of the program, buildings that did not participate in the 2012 or 2013 lotteries but meet existing owner occupancy requirements (1 owner in a 3-4 unit building, 3 owners in a 5-6 unit building) will be able to condo convert upon six years of owner occupancy.
As mentioned above, the suspension of the lottery will be for at least 10 years. The maximum will be calculated at the end of the 6-year bypass program, dividing 200 into the number of units that availed themselves to the bypass. If 2400 units convert, then the suspension will be 12 years.
There is also a provision that would lessen the maximum suspension of the lottery if additional affordable housing is built in excess of what is currently projected.
As proposed, once the lottery resumes in ten or so years, it will no longer allow 5 or 6 unit buildings to condo convert. In addition, owner occupancy requirements for future lottery based conversions would be increased to require two owner occupants for a 3-unit building and three owner occupants for a 4-unit building.
∙ A Clash Over Condo Conversions At City Hall [SocketSite]
∙ The Devilish Details For Bypassing SF’s Condo Conversion Lottery [SocketSite]
∙ Condo bypass amendments – 4/15 Update [plancsf.org]