Building owners with an unpermitted in-law constructed prior to January 1, 2013 will now have the option of legalizing the unit by way of the legislation adopted by San Francisco’s Board of Supervisors last night. As we wrote about the legislation when it was first proposed:
Unless a significant number of the illegal units are currently being kept off the market out of respect for the law, the proposed ordinance wouldn’t actually expand the effective supply of housing units in the City, but it could help the city ensure that the units are safe and habitable and allow the City to include the units in their official counts and reports of housing supply.
And while intended to help ease San Francisco’s current housing crunch, an unintended consequence of the ordinance could be an effective increase in rents as illegal units which are being rented at below market rates in exchange for flying below the City’s radar would no longer require a discount.
Legalized units will need to meet all Planning Code requirements for safety, will be subject to rent control, and will not be allowed to be subdivided for individual sale.
Unpermitted in-law units for which a notice of eviction was served after March 13, 2014 will need to wait at least five years before being legalized, a ten year wait if the eviction was of the no-fault variety other than for an owner move-in.