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No more TIC evictions!/ TIC Picket Sun in S.F. near The Lex
Yesterday, the Board of Supervisors denied a condo conversion at 400
Vallejo Street, based on Section 1386 of the Subdivision Code. This is
the first time that this long-ignored section (prohibiting conversions
where there have been evictions) has been utilized. The decision is
very far-reaching, effectively eliminating using Ellis or other means
to evict tenants and then create TICs which will then seek to convert
to condos. If evictions are used to create the TIC, then that building
will have to remain a TIC forever; it is unlikely there will be much of
a market for TICs which can not be converted to condos. The number of
units in the pipeline which will be affected is quite large—over 60% of
the 2005 condo lottery winners had evictions.
On top of being denied their condo conversion, the evictors at 400
Vallejo may also face criminal charges because they falsified their
application to DPW, claiming that there were no evictions.
It’s anticipated that due to yesterday’s decision, DPW (which
administers the condo conversion law) will start systematically cross-
checking with the Rent Board for eviction data and rejecting those
buildings with evictions. But we need to continue to pressure for
enforcement of Section 1396 and challenge each and every condo where
there’s been an eviction until we know that DPW is adequately enforcing
the law. (Note: This pressure is REALLY needed--three years when I
called DPW to let them know about a case of outrageous fraud, where the
owner lied about living in the unit really occupied by three women for
six years, DPW's only response was, "It's been mapped, there's nothing
we can do." Which turned out not to be exactly true once I hooked the
to-be-ousted women with a good attorney, but that's another story--
Mara)
And as part of that campaign:
TIC OPEN HOUSE PICKET. SUN, MAY 22, 2 PM, 273 LEXINGTON /20th (near
The Lexington).
This is an open house at a building which was Ellised and the units are
being sold as TIC units. We will leaflet the buyers and let them know
that they can never turn their TIC into a condominium.
For more information, contact:
info [at] sftu.org
Vallejo Street, based on Section 1386 of the Subdivision Code. This is
the first time that this long-ignored section (prohibiting conversions
where there have been evictions) has been utilized. The decision is
very far-reaching, effectively eliminating using Ellis or other means
to evict tenants and then create TICs which will then seek to convert
to condos. If evictions are used to create the TIC, then that building
will have to remain a TIC forever; it is unlikely there will be much of
a market for TICs which can not be converted to condos. The number of
units in the pipeline which will be affected is quite large—over 60% of
the 2005 condo lottery winners had evictions.
On top of being denied their condo conversion, the evictors at 400
Vallejo may also face criminal charges because they falsified their
application to DPW, claiming that there were no evictions.
It’s anticipated that due to yesterday’s decision, DPW (which
administers the condo conversion law) will start systematically cross-
checking with the Rent Board for eviction data and rejecting those
buildings with evictions. But we need to continue to pressure for
enforcement of Section 1396 and challenge each and every condo where
there’s been an eviction until we know that DPW is adequately enforcing
the law. (Note: This pressure is REALLY needed--three years when I
called DPW to let them know about a case of outrageous fraud, where the
owner lied about living in the unit really occupied by three women for
six years, DPW's only response was, "It's been mapped, there's nothing
we can do." Which turned out not to be exactly true once I hooked the
to-be-ousted women with a good attorney, but that's another story--
Mara)
And as part of that campaign:
TIC OPEN HOUSE PICKET. SUN, MAY 22, 2 PM, 273 LEXINGTON /20th (near
The Lexington).
This is an open house at a building which was Ellised and the units are
being sold as TIC units. We will leaflet the buyers and let them know
that they can never turn their TIC into a condominium.
For more information, contact:
info [at] sftu.org
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Supervisors Deny Condo Conversion Because Tenants Were Evicted Under Ellis To Create TIC
City Starting To Enforce Section 1386 of Condo Conversion Law Which Prohibits Conversion Following Evictions; Action Will Seriously Chill TIC Market As Ellised TICs Are Ineligible For Condo Conversion
The Board of Supervisors denied a condo conversion for a six unit building at 400 Vallejo Street because the tenants had been evicted under the Ellis Act in order to create a TIC. That TIC was then seeking to convert to condominium form of ownership. In San Francisco, condos are created by evicting tenants, creating a TIC, and then turning that TIC into the safer and more valuable condominium form of ownership. Tics are considered to be too risky a form of ownership for any long period of time and if the Tics are not allowed to become condos following evictions it will seriously depress the TIC market.
The Supervisors' action was based on Section 1386 of the city's Subdivision Code. It prohibits condo conversions if there have been evictions done in order to convert the building or if any senior or disabled tenants were evicted. This section has been generally ignored and the Supervisors' action may have been the first time it has ever been enforced. It is expected that Section 1386 will be routinely enforced now and Tics created through evictions will now be denied condo conversion. 60% of the condo lottery winners in 2005 had documented evictions, so the impact is significant.
Tenants To Picket TIC Open House Sun, May 22, 2 PM, 273 Lexington
For more information:
http://www.sftu.org
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