Post Protest: Castro Controversy Erupts After Hotly Debated TIC Condo Conversion Legislation Gets Tabled

Coalition of Tenants protesting TIC law at City Hall on 1/28. (Photo: Waiyde Palmer)

Coalition of Tenants protesting TIC law at City Hall on 1/28. (Photo: Waiyde Palmer)

Monday a wide coalition of 200 activists from the Castro and nearly every City neighborhood gathered on the eastside steps of SF City Hall to voice their outrage over Supervisors Scott Wiener (Dist. 8) and Mark Farrel’s (Dist. 2) proposed legislation altering how Tenancy-in-Common (TIC) properties convert into non-rent controlled condos.

The protest proceeded a rancorous, five-hour long meeting where all sides on the issue vented their frustration and fears about: dwindling, affordable rental units, the ass backward current condo/TIC lottery system, the unchecked Citywide epidemic of evictions, the inability to make a profit from one’s own property, the lack of vision from City leadership in stewarding the issue and outrage over the proposed change in the TIC law.

Sup. Jane Kim, Scott Wiener, David Chiu, Mark Farrell hear from citizen's in BOS chambers regarding TIC/Condo law change

Sup. Jane Kim, Scott Wiener, David Chiu, Mark Farrell hear from citizen’s in BOS chambers regarding TIC/Condo law change on 1.28.2013 Photo: Occupy the Auctions/Evictions Blog

The law, authored by Wiener and Farrell, simply described as a, ‘condo conversion impact fee’, would’ve allowed as many as 2,000 TIC units to be immediately converted to condos for a fee, allowing owners to bypass a housing lottery system disliked by property owners that places an annual cap on conversions.

Outside the protest was lively. Multiple speakers from different organizations spoke and several citizens who’d been evicted under the Ellis Act.

“Will this law change stop evictions Mr. Weiner?” one recently evicted, angry, LGBT Senior Castro resident yelled. “That should be your priority-stopping evictions not helping them.”

Mr. Wiener under mounting public pressure posted an explanation of the law on his website writing in part, “Contrary to unfounded claims by some opponents of the legislation, it does not repeal rent control, it won’t result in evictions, and it won’t lead to future Ellis Act evictions.”

AIDS Housing Alliance Ex. Dir., Brian Basinger (Photo: Waiyde Palmer)

AIDS Housing Alliance Ex. Dir., Brian Basinger (Photo: Waiyde Palmer)

“Not true.” countered Brian Basinger, Exec. Director of SF AIDS Housing Alliance, as he addressed the rally. “I was evicted from my home when it was condo converted after it was deemed by the City to never, ever happen-yet it did.” He cited a DPW report showing how TIC’s like the one he lived in, which shouldn’t be eligible for conversion, are illegally converted none the less. “If land speculators can bypass current laws why now can’t they bypass this new one?”

Inside chambers Sup. Mark Farrel was visibly irritated by the anger thrown his way and replied in terse and barely disguised disdain. The eviction argument is moot in his eyes since the law included a provision guaranteeing lifetime leases for existing tenants in units that qualified for condo conversion under the program.

Sup. Jane Kim wasn’t so sure about that wondering how it could possibly be tracked or enforced. Second term, BOS Pres., David Chiu, also had concerns and in the end proposed tabling the issue until Feb. 25th saying, “I do not support the legislation in its current form,” he said. If the current generation of TIC owners were allowed to convert this time, he explained, the next generation’s frustrations with the housing lottery would only “lead us back to an identical debate in a short period of time.”

David Weissman, director of 'We Were Here' & 'The Cockettes'

David Weissman, director of ‘We Were Here’ & ‘The Cockettes’

Meanwhile, back in the Castro, local LGBT icon, David Weissman, film director of ‘The Cockettes‘ and the much heralded, ‘We Were Here‘, posted an open letter calling out Sup. Scott Wiener on his continued focus on the needs of those who can buy or own property over those who rent or will never be able to afford to buy.

Mr. Weissman, a longtime personal friend, had sent me the letter in advance to posting and minced little words in his appraisal of the current state of life in the Castro and SF under Mr. Weiner’s tutteledge. The letter went viral and has been reposted hundreds of times.

One such repost occurred on the Facebook wall of SF AIDS/social activist, Rajat Dutta, an associate shared by both Mr. Weissman and Mr. Wiener.

Mr. Wiener used that exchange as an opportunity to respond to Mr. Weissman directly. His comments have also gone viral especially amongst Mr. Weiner’s many admirers. Either side one finds themselves on this topic the result has been a firestorm of dialogue regarding renters rights vs. landlords at the Castro’s neighborhood bars and cafes.

Heres both Mr. Weissman’s letter and the Supervisors response in full:

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UPATED: Diesel Closes. Apple Store Coming?

Diesel store with "for lease" sign

Diesel store with “for lease” sign (Photo: Waiyde Palmer)

UPDATE (5:49PM): We spoke with Andrea Aiello, the Executive Director of the Castro/ Upper Market Community Benefit District about the recent exodus of Diesel from their Market and Castro location so we could put this rumor mill to rest.

Apparently, the reason why Diesel left was because of poor sales and a new location they were opening in the East Bay. The rent was not hiked by 50%, in fact, the property owner tried to work with Diesel to sweeten the deal to keep them there. Unfortunately for Diesel lovers, but fortunate for some new business, Diesel would not renew their lease.

As for the rumors regarding Apple filling the space, Aiello noted that a contact at Colliers Real Estate, whose client is Apple, said Apple was not interested in the space, as it was too small. As for the Pottery Barn across the street, that’s a no go for Apple as well.

So, unfortunately, we have a building sitting empty again in the Castro. On the bright side, the rainbow colored lights in the windows will be staying as they were installed and maintained by the property owner; there’s a feather in our cap!

As many of our readers tipped us off yesterday, the Diesel clothing store at the old Bank of America building adjacent to Harvey Milk Plaza has closed. Socket Site reported that the landlords apparently increased the rent of the location by 50%, an amount Diesel was not willing to pay to stay at the historic location.

One of our readers tipped us off that Apple may be eyeing the space for it’s fourth San Francisco location. Apple has a penchant for placing their retail stores in iconic locations and the Castro/Market space would fit that pattern nicely, not to mention its proximity to major transit hubs like the MUNI underground and the F-Line.

If Apple does secure the retail spot, it would be pretty rad if they used their old rainbow logo from the 70′s and 80′s to replace the Diesel marquee in the front of the building.

We’ve put an email into Apple headquarters for comment. If we hear confirmation either way we’ll let you know.

Diesel store farewell sign thanking it's customers

Diesel store farewell sign thanking it’s customers (Photo: Waiyde Palmer)

Sup. Wiener’s Condo Conversion Plan Angers Many-City Hall Protest Monday

Dist 2 Sup. Mark Ferrell and Dist. 8 Sup. Scott Wiener

Dist 2 Sup. Mark Ferrell and Dist. 8 Sup. Scott Wiener

Castro’s Sup. Scott Wiener and Dist. 2 Sup, Mark Ferrell, have introduced legislation which, if passed, could allow owners to repeal rent control from thousands of landlord-occupied apartment buildings.

Their plan will let Tenant in Common (TIC) buildings become condominiums automatically, bypassing the condo conversions lottery and tenant protections in the City’s condo conversion law.

The legislation will let any TIC property with two or more owner occupants pay a fee to become a condominium. Currently, under California state law, condominiums are exempt from rent control.

The issue comes before the full Board on Monday, January 28th. Opponents against the new edict have called for a noon rally and protest at City Hall followed by participation in pubic comment during the 1:30 PM BOS hearing.

Opponents say Wiener’s proposed legislation is a huge gift to property owners. If passed by the BOS, following the trend of current condo conversion figures, the value of these newly converted condos will increase the property by well over 20%. Its estimated 2,000 such units will be eligible.

SF Tenants UnionRenter’s rights groups consider this new law an unneeded financial boon to landlords. Landlords are collecting record profits. According to a recent HuffPo post, San Francisco has the highest rents in the country.

This law, activists challenge, benefits SF’s 1%, politically connected, City Hall insiders not the everyday, 99% majority.

Many renters fear If this legislation passes, they can expect to see a sharp increase in evictions as landlords anticipate that City Hall will let them move in, pay the fee to convert to condo and thus repeal rent control on all units within the building.

A Coalition of Tenant Rights Groups rally at 18th & Castro. Dec. 19, 2012 (Photo: AsianWeek)

A Coalition of Tenant Rights Groups rally at 18th & Castro. Dec. 19, 2012 (Photo: AsianWeek)

This proposed new law adds insult to injury piled on top of increased evictions from the unbridled use of the Ellis Act. Protests have been ongoing as tenant advocacy groups have rallied, most recently on Dec.19th in the Castro, to raise awareness and support  for a change in the law.

There are a rash of new builds in the pipeline in various stages of development within the City. SF real estate blog, SocketSite, forecasts 43,580 will be added to the rental/own market, including five on deck in the Castro, completed in the next four to five years.

Approximately 2700-3200 of those projected units will have been finished in various City neighborhoods and ready for move in by the end of 2013. Compare that number to the less than 250 new units made available in all of 2011 and it’s apparent real estate development in SF is experiencing another unprecedented boom.

Protesting EvictionsSadly little of these new, available units helps San Francisco’s working/middle class, working poor or those who fall below the poverty level currently struggling to maintain residence in the City.

Additionally none of these new build units would be covered under the auspices of current, SF, rent control, guidelines. The City’s rent control only applies to buildings constructed prior to June 13,1979.

“Ellis evictions have tripled and rents now average over $3,000 a month,” said Tommi Avicolli Mecca of the Housing Rights Committee one of Monday’s coalition organizers. “Renters are struggling to remain in their homes and in the city and this is the wrong time to give speculators an incentive to do more evictions.”

Sierra Club, SF Bay Area Chapter, came out against the Wiener/Ferrel ordinance. The Club encouraged all San Franciscan’s to join them in writing the Board to strike down the proposal. They also want everyone to attend Monday’s rally, protest and public speak out.

Sierra Club said, in part, in their missive to the Board, “Instead of enacting this ordinance, the City of San Francisco should pursue policies that protect rent stabilization and rent-stabilized units, which are a housing type that can’t be expanded (by law), and support the construction of more affordable housing, including family size units.”

Popular local blog, BeyondChron concluded, “Increasing condo conversions and eliminating rent control for thousands of units does nothing to address any of the housing affordability and no-fault eviction problems impacting San Francisco. Instead, it makes them worse.”

INFOGRAPHIC: Castro average rents increased 34% since last year

Click image to see it larger

According to this infographic from LivingLovely.com, average Castro apartment rental rates have increased 34% since last year from an $2,494 to $3,352. But that’s nothing compared to how high rents in Chinatown and the Bayview have risen, both seeing an average rental rate increase of over 100%.

I have a few friends in the city right now looking for places, but they can’t find anything in their price range. The cost of owning a home in the city has pushed people into the rental market, increasing the demand for rental apartments. Hopefully the new units going up next to Starbelly at 16th and Market and the units proposed at 15th and Market will help relieve some of our space issues.