three-unit building, two units had to be occupied for owner. for a four unit, three units need to be occupied by owners. i think it is important for decision makers to listen to all parties and ultimately make decisions that seek the best interest of everyone, and i think that this is what we are doing today. thank you. >> thank you. president chiu. >> thank you, mr. chair. and first let me start by thanking all the members of the audience for your patience and not just today, but over the last few months in getting us to where we are today. as supervisors yee and farrell alluded to, i will be introducing amendments to the proposed bypass legislation. and i want to take a moment first to thank the many tenant organizations that have worked with my office and our supervisors on this from the san francisco tenants union to the affordable housing alliance, ccdc, to the housing

rights committee, the tenderloin housing clinic, just cause, and many other organizations that have been passionate on this topic and have really helped to shape i think many of our thinking on it. i also want to take a moment and thank supervisor farrell for his leadership as well as the tic owners and representatives at the real estate community. i believe that they have worked in good faith in the discussions that we've had in recent weeks and i do look forward to the discussion we'll have today as well as in the coming weeks on this. and i want to also thank supervisor yee for the work that he and his staff had done with my aide judson true and i to move this forward and i also should thank our city attorney john malmud who has spent many, many weeks and many, many hours particularly over this weekend in getting the amendments that we have in front of us today. so, as far as sort of a high level on what it is we are trying to achieve with these amendments, as i've said before, i appreciate the intent of the legislation, which is to

try to address the plight of tic owners in very challenging financing situations. with that being said, i think many of us have been concerned if we allow the current generation of tic owners to convert, we will quickly replace them with the new generation of tic owners after additional real estate investments and evictions lead right back to the debate we're having today. the amendments that i will be asking to move forward will protect san francisco's renters while addressing the plight of tic owners that are currently in the condo conversion system. the basic and the heart of these amendments are quite simple, to allow the existing condo conversion lottery participants to convert over the next few years with the payment of the fee that was proposed in the existing legislation, but to also ensure that as we expedite these conversions and we expect at least 2000 or more tic owners to convert, protect tenants by suspending the lottery for new participants for at least ten years. what i'd like to do, colleagues, in the next few minutes, is to summarize the

specific amendments. there are really 7 elements to the amendments that we're offering. and i'm going to give to our clerk copies of the legislation that i'm introducing as well as a summary of them that members of the public wish, if you could please put that on the front table, folks wish to pick them up. so, let me just go through the amendments. first of all, similar to what supervisor farrell's proposal had put out, we will be creating an expedited conversion process, although it will involve a slightly larger class than what supervisor farrell had entailed. it would involve 2012 and 2013 lotteries who could convert by paying the proposed $20,000 fee with discounts for years in the lottery over a two-year period. lottery participants who have been owners for five years or more would be eligible for conversion during the first year of the expedited program. and then all other lottery participants would be eligible for conversion in the second year of the expedited program.

but then beginning with the third year of the expedited program and continuing through year 6, any tic as of april 15th, 2013, today, that meets the existing [speaker not understood] owner occupancy requirements, one owner occupant for buildings that are two to four units or three owner occupants for buildings that are 5 to 6 units, would be eligible for conversion once they meet the six-year occupancy requirement. so, that's the first piece of our amendments. the second piece of our amendments -- by the way, if there are not enough copies, there should be. folks can stop by my office down the hall and we can certainly make more copies and this will be online shortly. the second element, though, as i alluded to before, would be a suspension of the lottery. and a slightly complicated formula but it would be as follows. the lottery would be suspended for at least a minimum of 10 years. the maximum period of the suspension would be the number of converted units divided by

200, which is the current annual number under the lottery. and then there's an additional element that supervisor yee had suggested that if the city were to produce affordable housing units beyond both 300 per year envisioned under last year's proposition c, 2012 housing trust fund and the number of units that are converted under the lottery, the suspension could be closer to 10 years than the maximum described. so, for example, if 2400 units converted under the expedited process, the maximum length that the suspended lottery would be 12 years, 2400 divided by 200. but if say 5400 affordable housing units which would represent 3,000 prop c units plus another 2400 replacement units were built within 10 years, the lottery would resume within 10 years which would be the minimum. so, in other words, what we're trying to do is to encourage everyone involved in the housing and real estate community to really push for the development of more housing

units because the faster we can do that the faster the lottery would resume. the third element of the proposal today would be adjustments to future lotteries. once the lottery resumes, the proposal that supervisors yee and i are putting forth would state that only buildings with four units or less would be eligible. in other words, larger buildings that are filled with tenants currently 5 or 6-unit buildings would not be eligible. the owner objecttion pan is requirements for those buildings would increase to two owner occupants for three-unit buildings and three owner occupants for four unit buildings. another element of the proposal would involve lifetime leases to require both written and recorded lifetime leases and to extend the leases to the disabled and catastrophically ill household members of the initial tenants. a fifth element would be a deferral of fee payments for

those applicants who requested fee deferral under 200% of the area median income [speaker not understood]. to supervisor farrell's suggestion, supervisor yee supports, whether we can have trailing legislation to support those condo conversion applicants and some assistance to them in open to seeing if there is a way to do that. the sixth element of the proposal would require some level of public review of conversion applications to really strengthen the public review of these applications by providing port possibility of a hearing at the department of public works. and then the last element of this, which is new, would be if there is a lawsuit a is filed against this legislation to suspend the expedited conversion process until there is a final legal determination with regards to this program. so, again, with that, i very much want to thank everyone who has been involved in this. i know we're going to have public comment, but one of the things i'd like to suggest as far as how we move forward, there really are two ways in

which we can move forward with consideration of these amendments. i think the simplest way to move this forward would be to amend the current version of the legislation that sits here in committee. i have expressed before that i don't support the current version that's here in committee. supervisor kim and i unfortunately can't talk about this directly, but i understand from the newspapers that she does not either. so, one thing that we can do is simply amend the current version out of respect to the legislative sponsor, though, i'm also prepared if this is something we'd like to do, to duplicate the file and to then include our version, supervisor yee, and my version as an amendment of the whole to the duplicated file so that we have two versionses of the legislation which would then set as required by our sunshine and transparency statutes until the next hearing on this topic. and i'd like to suggest to the sponsoring supervisor i'm happy to move forward with either path depending on what you see fit. >> supervisor farrell. >> thanks, mr. chair. and thank you, president chiu,

for your comments, for your amendments as well as supervisor yee. we have had discussions over a while about these and president chiu, i appreciate your comments. i think at this point in time i would feel comfortable amending them into my legislation. and i think in the spirit of good faith moving forward, again, i do think we're within striking distance of achieving common ground and which is what we sought to do from the get go. and meeting objectives of both tic owners and tenants advocates, again, some find it hard to believe we are going to get there, but i think we are very, very close so i would be open to having an amendment to the legislation and carry the item going forward. >> supervisor kim. >> i will reserve my thoughts for after public comment, just recognizing that some folks have been waiting here a long time. but i will also be introducing one amendment as well and i will pass out copies in advance. but it's really out of concern for the precedent of [speaker

not understood] hawkins act in terms of how it will impact this legislation as proposed. and, so, i will distribute these amendments and i will make a motion after public comment. >> thank you. supervisor kim, can you describe that amendment so folks in the public know what it is? >> sure, i appreciate that. so, part of the legislation was the lifetime leases that are established for tenants that are currently in the condos that are able to get this bypass. but this has some challenges based on state law. i believe there are some concerns about enforcing those lifetime leases. so, since costa hawkins prevents restriction on property after sale. i wanted to make sure that the lifetime leases are signed and recorded prior to close of escrow. so, the following amendment

would, one, prevent any contracted seller transfer converizonthed properties. 2, prevent sell until after the mapping process is complete and the lifetime leases have been recorded. the amendments will require the applicants to complete a form certifying no contract to transfer/sell until after mapping and will make the mapping contingent upon the completion of this form. >> okay, thank you, supervisor kim. colleagues, are there any additional comments? if not, then why don't we open it up to public comment. public comment will be two minutes. when you have 30 seconds left, you will hear a soft bell. when your time is up, you'll hear a louder bell. and if you would like to speak and if not filled out a blue card, please do so and hand it to the clerk. so, i will call the first batch of public speakers. waynn hu young. [speaker not understood] lee. tina chung.

cynthia cruz. ernestine weiss. cathy lip scum. mitchell [speaker not understood]. judy golden. ryan thayer. patty lee. lorenzo [speaker not understood]. i apologize if i don't read your name correctly. and alan begham. go ahead. [speaking through interpreter]

good afternoon, my name is [speaker not understood] and i represent community association. our 1,000 members [speaker not understood] mono lingual elderly tenants. we are very concerned about the current legislation because [speaker not understood] those units will be taken out of rent control housing stock. this will open the flood gate and incentivize speculators and

tenants because of properties increased value. a lot of the affected tenants are all low-income and they won't be able to afford other places once they get evicted. i have also experienced the eviction process before and i do not wish for anyone to go through that stress.

our biggest concern is speculators being motivated to get into the tic market. as we clear out the waiting list we are worried more speculator are going to jump in and get in the conversion [speaker not understood] whim it is ready. [speaker not understood]. therefore, i strongly urge the board of supervisors to take the renter's needs into consideration and adopt amendments to the legislation that will not reduce rent control housing and deter rent real estate speculation. thank you. >> thank you.

next speaker. [speaking through interpreter].

i'm mrs. [speaker not understood] lee and i live in district 3 knob hill area. by [speaker not understood], mr. matthew miller, he wants to convert my building into a tic unit and sell the individual units to buyers. i'm one of the last remaining tenants in my building. like other tenants i'm not opposed to tic owners who need to refinance or have financial difficulty. however, the concurrent proposed legislation without amendments will not address the issue or protect myself and others from some of the san francisco's most vulnerable. at the same time this would effectively prevent property owners from loopholes.

my husband and i are elderly. i take care of my adult daughter with needs. [speaker not understood]. living in the city is one of the few choices we have. i don't drive. my dower needs to attend special adult needs dare de care nearby. we don't speak english. my basic he necessities in life are all rooted in the community and san francisco. the neighborhood i live has changed profoundly. many of my neighbors have been evicted or bought out and many have received eviction notices and not far from the steps of my block a group of seniors have been threatened with eviction by their landlord. this is a story often told in the context of the proposed tic condo legislation of what happens to individual units before they become tics. i urge the board of supervisors to seek a more inclusive and effective solution to a tic issue to better address those of us affected like myself and my family. and i thank you. >> thank you very much. next speaker, and before we get to the next speaker, i have a

feeling some of the names i called may no longer be here. let me read some additional names and have you come up. nancy mcnally. bill crizwell. james patrick carol. jacob block who i think had to leave. theresa duvalis. tracy parent. marty de lollis. sarah sherman simmer and [speaker not understood]. were you done yet? i'm tina, the next one. >> okay. why don't we -- it's your turn now. sorry about that. no problem. my name is tina chung, community organizer and spareable chinatown cdc. i urge the board of supervisors to adopt a more balanced solution to the current legislation. a proposed council hundreds of tenants, some assessed most vulnerable and low-income. and most often are not, they have to live in san francisco as a necessity. access to transit, medical care for those that are mono

lingual, and social services. p of many of my clients aren't against helping property owners who are stressed. this legislation without any amendments will have the unintended consequences of encouraging future real estate speculators from buying properties subsequently evicting or buying out tenants and selling them as tic units to owners with encouragement of other bypassers on the horizon. i've seen many tenants evicted or bought out. bought out means little because they're unable to find another place to live in the city. so, picture this. i have, for instance, aiee. a mother and former tenant evicted recently from in knob hill, a building owned by a real estate investor. her son has to bus across the city to go to school. during the eviction process he didn't have it easy at school. so, families like her, this

means a lot for community, diversity and also for our neighborhoods. the second thing is for another client ms. wong is elderly and cared for by her adult son full time. real estate firm urban green investments has more than once asked the tenants to move out, harassed them and meanwhile ms. wong and her son are still living without heat and most of the windows in her unit are broken. that's in district 8. so, i also [speaker not understood] time lease issue project tenants while living in ti chis do not account for those ready to displace. i urge that you guys, this board of supervisors [speaker not understood] vibrant and diverse [inaudible]. >> thank you very much. next speaker. garv r good afternoon. before i give my statement, i want to read a speech a resident of district 6 prepared with your permission. good afternoon, supervisors. my name is alon de gum.

i work at a hotel operated by ka nard house nonprofit. i'm from independent bangladesh where people use their voice for civil rights. i'm here in support of step ants of san francisco. this is a beautiful and rich city. the best thing about san francisco is that there is a great diversity of cultures and people are able to live here ~ with dignity. people here are very kind, friendly, and willing to help one another, but san francisco is becoming less affordable for many people because it is very expensive to live in this city. we must join together and support [speaker not understood]. converting a tic into condominiums encourages evictions and can lead to homeless people and competition for housing. everyone deserves to have a home and we support people's needs. bangladesh is a small country populated by people mostly poor. people sometimes become homeless after a natural disasters such as floods or tornados, but no government law

would cause people to become homeless. america is the most affluent country in the world. we are very happy and lucky to have an opportunity to come here from a different country and make our lives better. however, i was shocked to see so many homeless people living in the dirty streets of san francisco. [speaker not understood] condo conversions, i fear more people would have to be forced onto the street. as district supervisors for san francisco, we elected you to take the responsibility to support us in creating a better life for our family. please do not support the condo conversion legislation [speaker not understood] use your authority to create more a forbidable housing for people who need it. i think it would be a better idea if we convert some of the vacant buildings here in san francisco into affordable housing. and also help get a hundred signatures for district 6 and petition in support of her speech. [inaudible]. >> you have the remainder of your two minutes. did the final bell -- i'm

sorry, no. yeah, thank you. go ahead, next speaker. hi, cynthia cruz, i'm here with league of women voters. we handout guides and education for young voters across the street. ~ city. i wanted to say that this legislation, and even the amendments are not the answer to providing affordable housing options for san franciscans. i think the amendments are helpingful. ~ helpful. the legislation without amendments are terrible for renters and will certainly price people out of the city entirely. but the path to homeownership should not be littered with displacement of families, of working class, san franciscan seniors, persons with disabilities, artists and activists. these people are being priced out of san francisco at an alarming rate. i hear a lot of arguments that

even the amendments have come -- people have come together so that everybody on both sides of the issue -- and that's what i hear a lot, both sides of the issue. i think there are three sides here. there's the tic owners, there are rental rights and renters people, and also the real estate interests. so, i think that in the -- in trying to argue for the two sides of renter's rights and for developers and real estate interests, that the tic owners are being batted around. and while they've been very helpful in terms of finding some common ground, then i see what's happening now is just that no one's happy. i think that the amendments should be followed up to protect tic owners from the banks that are really causing this problem. we need to repeal costa

hawkins. that's not -- i don't see either of those things being championed by someone locally to happen on a state level. and these are the things that need to be looked at, not necessarily -- oh. >> thank you very much. next speaker. chris [speaker not understood], district 8. i don't know about the amendments and i don't know if my comments are going to be valid for the point with all the amendments that have been offered. let's get real here. the current coverage of this issue is yellow journalism. plan c is a group of realtors with a big plan of getting rid of rent control as its ultimate plan. tic owners are house flipper, wanting to change the rules to benefit them and the mortgage lenders.

tic owners know what they were getting into. now they want to bail them out and bail out the mortgage companies. if you bail them out, the renters, disabled seniors, people with aids and hiv will get sold out. bad house flippers. [speaker not understood]. these house flippers are pouring money into the supervisors' pockets and piggy banks. [speaker not understood] and voters won't stand for this. it's time to end this legislation. file it to the call of the chair or vote it down. if you don't vote it down, you will be voted down. go to hell, plan c. close the tic lottery. shut it down. and i hope it does go to the voters, supervisor chiu. >> next speaker, mr. kohlier. thank you, members of the

board. i'm steve kohlier, attorney at the tenderloin housing. [speaker not understood] because we believe it creates the only possible balance to address the needs of tic owners who are claiming to be in distress and tenants. any watering down of the amendments eliminates that balance. and that's why the costa hawkins issue that supervisor kim spoke about is so important, because one of the key provisions of the amendments is a lifetime lease. our current subdivision code does not have a real lease. it just says the rents have to be maintained for tenants through their life at a certain fixed rate. when costa hawkins was enacted, that was a serious problem for our subdivision code regarding that controlled rent. therefore, we've created as part of this package a real lease that gets recorded that