Having been sent back to San Francisco’s Land Use and Economic Development Committee for another round of amendments, the proposed condominium conversion lottery bypass legislation is once again slated to be voted upon by San Francisco’s Board of Supervisors next week.
The proposed legislation would establish a bypass period during which qualifying TICs could condo convert for a fee; establish lifetime leases for tenants in converting non-owner occupied units; restrict future condominium lotteries to buildings with no more than four units; and suspend San Francisco’s annual condominium conversion lottery until at least 2024.
While originally co-sponsored by Supervisor Wiener, he no longer supports the newly amended legislation as proposed which includes a couple of important changes:
Buildings which participated in either the 2012 or 2013 lottery and have been continuously occupied by the required number of applicant owners of record for no less than five years as of April 15, 2013 would immediately qualify for the bypass. Buildings which participated in either the 2012 or 2013 lottery and have been continuously occupied by the required number of applicant owners of record for no less than three years as of April 15, 2014 would qualify on that date.
Buildings which did not qualify or participate in either the 2012 or 2013 lotteries would eventually be eligible to participate in the bypass assuming a formal TIC agreement was in place as of April 15, 2013 and the required number of applicant owners have continuously occupied the building for at least six years by April 15, 2019.
In other words, TIC buildings in which the owner applicants weren’t in place by April 15, 2013 would never qualify for the bypass and five or six unit TIC buildings which don’t qualify for the bypass would never qualify for conversion as proposed.
And yes, the proposed legislation still contains the provision that if any lawsuit is filed against the legislation (see previous paragraph for a hint as to who might quickly file), the bypass would be suspended until the lawsuit was settled or until 2024, whichever comes first.
UPDATE: Two key changes in the legislation as newly amended: 1. The program has been extended by a year (i.e., the cutoff date for being bypass eligible is now April 15, 2013 rather than April 15, 2012); and 2. The “poison pill” provision would now suspend both the bypass and the lottery until any legal challenges are settled, as previously written the lottery would have resumed.
∙ Amended Condominium Conversion Impact Fee Legislation [sfbos.org]
∙ TIC Owners, Occupiers, Buyers, Agents And Attorneys Take Note [SocketSite]