A recent new ordinance (coded 30-15, File No. 140954), introduced by Supervisor Wiener, allows for new rental units be added to existing structures during their seismic renovation, providing for necessary exemptions in the Planning Code. This ordinance was passed by the Board of Supervisors unanimously. What does it mean from the rental perspective?
An interesting document in that regard is the DBI's summary of the terms for this new ordinance. It spells out the relevant terms of the new law and adds DBI's own regulations on its enforcement. In my opinion, DBI's opinion and rules are just as important as the ordinance itself, since any permits for adding units would have to be issued by the DBI.
Of interest, subject ordinance is part of a larger framework on seismic retrofit. To that extent, it worth to remind readers that the so-called "soft-story" renovation is addressing wooden structures as well, and does so since 2013. [more on this here] In my experience, many San Francisco owners have an understanding that only buildings with unsecured masonry foundation were subject to a retrofit mandate. Masonry foundation buildings were just the first step. The program has significantly evolved since its inception, and it worth to revisit its homepage regularly.
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An interesting document in that regard is the DBI's summary of the terms for this new ordinance. It spells out the relevant terms of the new law and adds DBI's own regulations on its enforcement. In my opinion, DBI's opinion and rules are just as important as the ordinance itself, since any permits for adding units would have to be issued by the DBI.
The summary is titled "Information Sheet No. G-23." It clearly states that the newly added units under this ordinance will be subject to the Rent Ordinance. Bringing such units under the Rent Ordinance coverage is made by an express waiver made by the building owner in contract with the City, waiving otherwise applicable provisions of the Costa-Hawkins Act, which might render these new units exempt.
One might feel an implied message in this ordinance that a newly added unit not under this program is exempt from the Rent Ordinance by default. This not as easy as it sounds. Explanation is offered under the definition of the "rental unit" in S.F. Admin. Code, Section 37.2(r), sub-sections (5) through (7). Important distinctions to consider are three: (a) that dating proposed construction as pre- or post-ordinance is measured by the certificate of occupancy "first issued" to the structure, not the new unit [37.2(r)(5)]; (b) that "substantial renovation" is only a chance to be excluded from the Rent Ordinance regulation, not a guaranteed right [37.2(s) for further definition]; and (c) since a unit may not be added legally without the City involvement and permission, consult with the listed exclusions from this exemption for "substantially renovated" units, foreclosed units, RAP units, units under City's special development charters [37.2(r)(5)-(7), 37.2(s), 37.3(d), 37.9D, Chapter 56];
Of interest, subject ordinance is part of a larger framework on seismic retrofit. To that extent, it worth to remind readers that the so-called "soft-story" renovation is addressing wooden structures as well, and does so since 2013. [more on this here] In my experience, many San Francisco owners have an understanding that only buildings with unsecured masonry foundation were subject to a retrofit mandate. Masonry foundation buildings were just the first step. The program has significantly evolved since its inception, and it worth to revisit its homepage regularly.
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Your options and available strategies will depend on your case's particular facts. If you are currently exploring options in developing your property in San Francisco, and need to learn more about your rights and obligations, make your first step toward taking control over the circumstances, and call my office at (415) 987-7000. I will be glad to assist in guiding you through the jungle. The only thing you can't afford is to stay put and uninformed. My office provides a confidential assessment of your particular scenario, free of charge, and I will share with you the results of the analysis along with my thoughts on available solutions.
Your options and available strategies will depend on your case's particular facts. If you are currently exploring options in developing your property in San Francisco, and need to learn more about your rights and obligations, make your first step toward taking control over the circumstances, and call my office at (415) 987-7000. I will be glad to assist in guiding you through the jungle. The only thing you can't afford is to stay put and uninformed. My office provides a confidential assessment of your particular scenario, free of charge, and I will share with you the results of the analysis along with my thoughts on available solutions.
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