Friday, May 8, 2020

Intermediate Length Occupancy Ordinance passed

On May 5, 2020, the Board of Supervisors accepted in first reading the fifth version of the new "Intermediate Length Occupancy" regulation (link).

The ordinance amends S.F. Planning Code "to create the Intermediate Length Occupancy residential use characteristic," and implements the consequent protections and enforcement in the Rent Ordinance

This newly minted occupancy is defined as «a Dwelling Unit offered for occupancy by a natural person for an initial stay, whether through lease, subscription, license, or otherwise, for a duration of greater than 30 consecutive days but less than one year. This characteristic is subject to the requirements of Section 202.10.»  I put the emphasis on the key wording: it applies to natural persons who lease these properties (rather than a corporate lease), for residential purposes, and it is measured against the initial period of the lease, when such period is between 30 days and 1 year. In other words, a regular month-to-month lease would also fall into this category (if its initial term is 1 month), unless it is specified that the lease remains in force for at least a year.

The "ILOs" will require a permit, and are prohibited in the buildings with 3- or lesser units (S.F. Planning Code Sec. 202.10).  4- to 9-unit buildings may only have up to 25% under the ILO permit, and for the buildings with 10+ units the cap is at 20% plus it requires a conditional-use permit. (Id.) Also excluded are rent-controlled units, buildings built or permitted to be built after the date of this ordinance, and the units built under the below-market subsidized housing.

The total number of ILOs in the city is set at 1,000, so I may only suggest, as it was the case before with the hard-liquior licenses and cab tokens, the sooner one applies, the better one's chances will be in getting it.

The rent-control related enforcement will be codified in the new section of S.F. Admin. Code No. 37.9F.

More real property posts

If you are concerned about your rights and obligations in a landlord-tenant relationship, 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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