Please ensure Javascript is enabled for purposes of website accessibility

Chris Daly Strikes Again – 2 Unit Buildings Targeted

I’m really not sure what Chris Daly has against homeownership in San Francisco.
Don’t get me wrong.  He’s done a few decent things for affordable housing in San Francisco.  But he’s focused all of his housing energy on the rental sector of the market and has done everything in his power to keep homeownership unaffordable for San Franciscans. 
In addition to opposing much of the new development in San Francisco, Daly’s always had it out for TIC’s and their ability to condo convert.  Even though the ability to convert TIC’s to condos in San Francisco allows middle-income people to buy here in the City, Daly attempts to put up brick wall after brick wall to stop the process in it’s tracks. 
His newest thing - Chris Daly wants to stop the fast-track condo conversion status that vacant 2 unit buildings now hold in San Francisco.  Apparently, there’s just too many conversions occuring for Daly’s taste. 
What does that mean to current owners of 2 unit buildings?  Your dreams of fast track condo conversion may be shattered by the one and only Chris Daly.
What does that mean to potential buyers of TIC’s in 2 unit buildings?  You may want to rethink your long term plans.  You’ll need to make the decision now, to either be OK with the lack of fast track conversion potential in your future home, or to decide to buy a condo instead which means less space and less amenities for the same money. 
I’ll try to keep you posted of any news with this whole situation, as well as opportunities to voice your opinion on the topic as I hear about them.  And if you have comments on the topic, feel free to voice them here on the blog – I’d love to hear your opinions.
The full scoop, per the San Francisco Realtors Association:

Last week, what was merely a possibility became a reality. Supervisor Chris Daly introduced a proposed ordinance that would place two-unit buildings in the condominium lottery and exempt two-unit buildings that are owner occupied as of August 1, 2008. The full text of the proposed ordinance appears below.

Under city law, ordinances must undergo a 30-day waiting period before they may be heard in committee. This is to allow interested parties an opportunity to study ordinances and take positions on them; so the first hearing on Supervisor Daly’s proposed ordinance will not occur until early July, at the earliest.



(a) The requirements of Subsection (c) of Section 1356 of this Code shall apply to Parcel Maps.

(b) The Parcel Map shall conform to the requirements of Chapter 2, Article 3 of SMA and to the Subdivision Regulations regarding detailed format and contents.

(c) In the case of Conversions where a Tentative Map is not required, the requirements of Section 1314 and the requirements of Article 9 on Conversions shall apply, provided that hearings as provided in Sections 1313 and 1332 shall not be required, and the 10-percent low and moderate income occupancy as provided in Section 1341 shall not be required, and provided further that Article 9 shall not be applied to two-unit buildings only where both units are owner-occupied for one year as of August 1, 2008 and where both units remain owner occupied by the same owner occupants as on August 1, 2008 up until prior to the application for Conversion. The Director of Planning, however, shall make the determination pursuant to Section 1385 concerning preservation of low and moderate income housing.

(d) In addition to the requirements of Subsection (c), the owners of record of a two-unit building conversion that qualify for the exemption from Article 9 must certify under penalty of perjury and the Department must verify with the Rent Stabilization and Arbitration Board, and with the Human Rights Commission as applicable, that since November 16, 2004, no eviction as defined in San Francisco Administrative Code Section 37.9(a)(8)– (14) of a senior, disabled person, or catastrophically ill tenant as defined below has occurred, or if an eviction has taken place under Administrative Code Section 37.9(a)(11) or (14), that the original tenant reoccupied the unit after a temporary eviction. For purposes of this Subsection a “senior” shall be a person who is 60 years or older and has been residing in the unit for 10 years or more at the time of the lottery; a “disabled” tenant is defined for purposes of this Subsection as a person who is disabled within the meaning of! Title 42 U.S.C. Section 12102(2)(A); and a “catastrophically ill” tenant is defined for purposes of this Subsection as a person who is disabled as defined above, and who is suffering from a life threatening illness as certified by his or her primary care physician.

(e) If the owners of record cannot satisfy the requirements of Subsection (d), then the owners of record shall comply with Article 9, including its Section 1396.1(g)(3), prior to submitting an application for Conversion.

(f) If the Department determines that an applicant has knowingly provided false material information under Subsection (d) above, the Department shall immediately deny the application, or if the applicant has submitted an application for conversion, shall immediately deny the application for conversion. Moreover, the Department, the Director, or other authorized person or entity may also enforce the provisions of this Subsection under Section 1304 or any other applicable provision of law as warranted.