Jake McGoldrick: TIC Legislation Good for City Housing Crisis

When my "Home Ownership for Tenants" legislation recently passed the SF Board of Supervisors by an 8-3 vote, I was not surprised to receive a flood of letters and telephone calls. After all, both tenant and small landlord advocates have maintained steady pressure on the supervisors since Supervisor Chris Daly first brought this issue back to the table in February. What has been surprising is the sheer volume of communications from the two groups, who previously have been relatively silent on the issue: tenants who wish to own their own units and existing TIC owners.

A look at the legislation reveals why these groups are supporting it. All existing TIC owners will be allowed under my legislation to convert their units to condominiums without going through the lottery. This will immediately give them the benefit of added value and greater economic security in their units.

Aspiring home owners who rent will be favored under the legislation, which facilitates conversion of their own rental units while also providing protections for tenants who do not convert.

Of course, these are not the only groups who benefit under the legislation.

Tenants have the added security of lifetime leases if they do not wish to covert their units. Small property owners in two-unit buildings are exempt from regulations imposed by the ordinance. Families who form TICs, including domestic partners, also are exempt from regulation.

Both renters who wish to own and TIC owners have written and telephoned my office in great numbers to express support for my legislation. This is the clearest possible signal that my compromise package differs significantly from Proposition N (a plan to limit TICs), which was defeated in November. It also indicates I have been successful in bridging the enormous gulf that has divided the City over the issue.

It was exactly these two groups, aspiring home owners who currently rent and existing TIC owners, who sent Prop N to its defeat. Knowing this, I spent many weeks meeting with stakeholders, listening to their differing perspectives, so that my office could craft legislation that would balance competing interests and secure the support of a wide majority. The fact that these two crucial groups now support my compromise is the clearest possible signal that I was successful in finding the right mix of provisions in the legislation.

This broad support also belies the claim of opponents of the legislation that the board is flaunting the will of the voters, who rejected Prop N.

Prop N was an extremely strict regulatory scheme which would have created criminal penalties applied retroactively against existing TIC owners. My compromise is so far from Prop N as to bear little resemblance to it. While it is clear the voters rejected the provisions of Prop N, it is ridiculous to argue that this vote precluded all possible future approaches to dealing with the problems caused by TIC conversions. Clearly, seven other supervisors agree, including those who opposed Prop N last Fall, such as Supervisor Mark Leno.

Mayor Willie Brown has a real opportunity before him to foster a sense of peace around this issue by signing the legislation currently on his desk. With the support of tenants, aspiring modest-income home owners and existing TIC owners , the legislation is a step forward. Brown has sometimes been saddled with blame for the displacement of moderate- to low-income families from San Francisco over the last few years. This legislation will help stem that tide of displacement, both by regulating TIC conversions and by providing a pool of 200 units which would benefit low- to moderate-income families.

By signing the legislation, Brown will send a clear message that he supports a moderate, careful compromise that stems such displacement and also provides real opportunities for affordable home ownership to tenants.

As I have said repeatedly during the debate on this proposal, this is only the first step in our efforts to address the housing crisis in this City. Over the coming months, the Board of Supervisors will attempt to put into place additional pieces of the puzzle, which will facilitate the construction of new housing. But as the mayor's director of housing, Marcia Rosen, is fond of noting, it is not enough to just build new units. We also must ensure that we do not lose affordable units at the same time.

I invite the mayor to join the efforts of the board as we offer solutions to the housing crisis. I also invite you all to join me at our next Town Hall meeting which focuses on affordable housing. It will be held at the Cliff House Restaurant, located at 1090 Point Lobos Ave., on Saturday, July 21, at 10 a.m.