the people he leah are not only native san franciscans but people who have made a life here in san francisco who have lived decades and years and who have dedicated themselves to the neighborhood my community. the face of the neighborhoods are changing and changing the face of san francisco. it's not something that was focused on one parrot of town but happening throughout the city. their people like blanca reece >> she works as a caregiver with seniors and her daughter ask a constitute at san francisco state university they're facing an ellis act in the neighborhood and its people

like jeremy michael's a gay who came to san francisco from ohio more than thirty years he's fighting an eviction after living in the csa afro-electro for 17 years and people like daniel whitaker who had to stop working because of a dablt and prior to that distract go sdrablt and the more you learn about the challenges that the tech workers face when you talk about the tech workers in the community they're the same issues facing the long term residents are facing those folks. this ordinance is an important step in finding a solution and

it will help tenants and it's needed now. in fact, if anything i worry about we could have introduced this legislation months ago it would have benefited people that are unfortunately not living in san francisco any longer. we continue to work on fixing state law that's part of the steam it's important for us to act quickly today to bring this item to the board as as quickly as possible i respectedly ask for the support of this committee i want to thank the following combhbz. supervisor kim. supervisor avalos and supervisor mar. with that mr. chairman, i want to call upon ted who will talk

about the memories of the legislation and how the planner will use the estimated market rate which a unit to figure out how the relocation payment will work. actually >> i'll give my colleagues an opportunity. >> supervisor cowen are you intending to over an amendment. >> okay. >> supervisor kim. >> thank you chair and supervisor avalos for bringing this legislation. i'm happen to co-sponsor this legislation for all the reasons we know that ellis act evictions are one are part of the things gripping san francisco and the rents have skyrocketed. many tenant are willing to go but when they try to figure out where they're going to move and

they discover their permitted out of the system and the reassistance payment doesn't help with the first 3 months of rent. it's important as we look at this issue we try to address one of the negative consequences of it that people have no more to go this is one piece that addresses that and it's important to address the relocation 35i789s as the market gets hotter. this will help to mitigate the prying and, of course, moving costs associated with new utility hook up. this is to important for business placed tenants and we have more to do we have to perform the is a state reform to

the ellis act. we can do this and familiarize the displacement of the families. and i think there are across the board recommendation from the board of supervisors and the mayor's office to build and produce for affordable housing here in san francisco. two years mrs. lee was honored who became the face of the ellis act evicts for her courageous and speaking out. a long time san francisco resident and putting a face to this. our city will continue to grow and change and can't leave folks behind. it's incredible when your traveling outside of san francisco to other cities this is the first question they ask you about the evictions and how can anyone afford to live in the

city. it's important thank you local level. of course, there are one hundred and 16 ellis act evictions last year. to put that into context in 2010 there was 43 we're talking about one hundred and 67 or one hundred and 70 percent increase so we know that property owners radio take advantageing to evict the current tenant. a recent study as shown that a vast voter are with senior resident and our most vulnerable. for all of us who have grandparents and senior members of the family we know how hard it is even though you can't afford to build in a neighborhood whether you go in your local neighborhoods but the

friends and folks in the community that help to keep it safe march on top of the burdens we're findings most of our seniors can't afford to live in the city. this is an incredibly important piece of legislation so support a piece of that and make sure we're supporting our residents to stay here. and the rest i'd like to turnover to supervisor campos >> thank you supervisor kim. we do have a major problem in the city and ellis act evictions are a part of the overall displacement in the city. we know that every ellis act eviction that happens others because of preliminary discusses or threats we have buy out that consider we're not getting the

full picture. i do know what i hear in my district not every tenant that gets evicted let's me know but from what we are hearing it is very, very troubling. i have one large property owner who is just himself ellis 4 buildings in my district. when i asked to meet with him to withdraw the nosey had one other one i didn't know about and refused to withdraw. it seems like there is not one week going by that the ellis act is not take place. in 2005 or 6 when the voters adapted i think it was proposition h if i'm not

mistaken that set the current 52 hundred i supported that at the time it was a healthy increase in the ellis act relocation payments and now i agree supervisor campos said the number is low. and when you look at what it takes to get housing in the city it is not it's not adequate it's barely enough the moving alone. we're at great risk in the city to losing long term tenants or tenants in general's i know i moved into the castro in 2007 i don't think i could move into the castro today so the people who are evicted that's a

problem. ear moving forward to stabilize people in the housing that is very important and never lose sight of what supervisor campos said we must address the structural problems in our housing problems eave shot ourselves in the foot by not producing housing and pit ourselves in the situation where average month is over $3,000 a month. i support this legislation and look forward to the amendments one of my questions was that the legislation didn't deny how you did the calculation i can think of a number of different ways to do that and i don't think the board should be delegating to the controls office the responsibility of determining how to do the calculation that's

a policy decision for the board i understand there are will other things that can arise from time to time not all situations are the same and so i appreciate that as well and i look forward to seeing those amendments. i'll say i have questions for the budget and analyst as well we received the report an hour before the meeting i like to get it before that but i look forward to reading that >> supervisor cowen. >> you've heard from my colleagues they've relocated several years years ago i have 4 younger sisters and to highlight how important it is and difficult to live here and my

parents have lived in their home but their grandchildren are not able. supervisor campos worries about we would have done more. as i was walking out to come to committee one of my aids were being briefed on the amendments i worry about i had more time to study the amendments so i'll be focusing my questions to understanding the amendments. particularly i'm wanting to hear about the hardship in san francisco we've had the highest number of fooerz. the leandro are not represented by association but for example, a church will own >> house where the pastor and their reverend will live in and

they struggle to keep the property and own other nonprofits and struggle to escape them into the community and generally they are for the bayview hunters point without further ado, i'd like to go ahead and get started. >> supervisor campos. >> why don't i preceded to briefly industry the amendments we'll be introducing and thank you for the opportunity to thank all the tenant rights advocates that have worked with my office. what's criminal about the number of pieces of legislation that have been introduced around the issue of affordability it's around the grass roots and mobilization that has take place across the city.

you see legislation that has not passed before that has passed unanimously from the board and that's the testament to our organizers. the first amendment addresses what was addressed by supervisor wiener in which the calculation is made i'm making an amendment that the estimating annual changes in the rental market that the market data that reasonably reflects the example of the apartments in san francisco the chief economist ed will present briefly and shortly on the exact method that will be used and thinking how to implement that we explored different options including

having the process go to the rent board in terms of the original calculation and it was based on on the decisions that the advise was given it will be good forbid the controls office to come up with with the physical formula the second is when the calculation is made we believe that the controllers formula provides an estimate of the market rate in san francisco. we recognize in a given case the estimate of a unit could provide a better assessment so we made a second amendment to the ordinance that creates an appeal proposals and the appeal process will allow the learning to question a hearing at the market rate if the estimate is too high

and otherwise with the respect to the tenant as well. it's important to give each party an opportunity to appeal whatever the formula results in. and the final amendment is something that supervisor cowen referenced which say we recognize this ordinance requires a payment amount that's far too difficult for a small landlord to pay so for that reason we've created a process where landlords can request a hardship adjustment and we building that's appropriate. it's fair to recognize that not only all landlord are not equal and when you're dealing with a major corporation the impact of the ordinance will be different and if the board will feels

that's justified they can order a reduction in an assistance amount or order a different payment plan or other relieve that the red board dad and mom's priority. those changes taken into context of what's happening are appropriate but the main thing is we feel that this is a pretty modest adjustment >> thank you for that description supervisor campos are those drafted the yet and does the legislation or the amendment in terms of the hardship spell out what constitutes a hardship? the reason i ask and i

appreciate you mention and supervisor cowen mention there are obviously differences among landlords and property owners when you're talking about a small property owner that owns a 1 or 2 apartment building and that's their retirement vs. a large property owner who owns a number of apartments buildings it's important to have flexibility because you could end up in a situation where your unable to pay. so how will that be calculated >> if i may platform i'll urns your turn it over to the city attorney's office. we want to make sure we set policy guidelines at the board guidance in terms of the policy

but making sure we left it up to the rent board to figure out the fairest way taking it on a case by case basis. we did meet with the apartment association and folks from the real estate industry to get their feedback and the best way to conduct this analysis i'm going to turn it over to the city attorney's office >> thank you supervisor campos. first, let me make sure i've heard the question correctly. supervisor wiener >> is there any amendments that indicates how hardship will be determined. >> under the proposed amendments the landlord may file a written request where they building the rental payment

dlaefl will constitute a hardship for the landlord. and the rent board or it's designated administrative law judges any order a reduction payment plan that they feel is justified. and the landowner my provide whatever spotting evidence to justify that >> so the amendment basically leaves in the hands of the rent board. >> that's correct. >> for example, and again comparing a landlord who owns 10 buildings or investors who purchase a 2 unit building and lives in one of the units would the rent board potentially have in its authority to sell the building in order to pay.

in terms of you can list the assets in a way and the landlord didn't have the cash but rents the other unite this is i want to make sure we as policymakers are actually setting the rules and with respect to the rent board not leaving it to the rent board to set rules where the members of the public where they don't know how the rent board is going to take care of this >> supervisor wiener may i will defer to my colleague to talk about the process. >> sure. >> supervisors i'm the executive director of the rent board. we don't have a tremendous amount of work with hardship because we - we have dealt with

the hardship buses it's in the context of an over payment in rent or a reduction of the housing services you don't want to displace tenants you do want landlord to basic go bankrupt and the tenants lose their housing. we have a form just like a form for tenant hardships and landlord. the landlords can't come in on one be building we look all their assets. they give us revenue incomes and expenses and their personal savings it's invasive just like for the tenants. there's no formula those are obviously very fact intensive and for the most part the

liability didn't go away. you don't want to force someone into for closure you don't want the landlord to default but if in a situation where there's an ellis act there meditates to be an up front payment the landlord will make the first payment and if there's an adjust you pursuant to the hardship request they'll then on a second payment it will be a renewed payment or basically be phased in. obviously it will be to the point is for the tenants to relocation we're going to have expediting entities we can do

see for the if you were purpose of this legislation >> i'll appreciate this being continued and will appreciate more information if the rent board. not impressing an opinion just wanting to know in policymakers and how this is going to be dealt with its dlent a huge impact because for the tenants there is a huge swing for the relocation money and it's the ability of the tenant to stay in the city and its hard for folks living in the building who want to stay there for both parties that matters a lot. and want to make sure that in - in dealing with legislation we

as the policymakers know how this is going to be >> may i we have to be careful it kits the other way if we as a board create predetermined what the right amount is or you know what suits a hardship without taking into consideration the individual situations then we run the risk of actually a landlord challenging what happens on the grounds that we're not considering the totality of the facts. based on the guidance we got from the city attorney it's important to establish a policy that reflects principles but allows for consideration of specific circumstances. one thing i didn't want to do

was limit the landlords ability to present as much information as they wanted to. the fact we're allowing for a hardship for the opportunity for a landlord to make the case in terms of the hardship they'll individually face is a good thing but this has to be considered in the context of what's happening out there. no legislation is perfect we needed e need to make sure we have a legally sound legislation as possible but not let the perfect be the enemy of the good we need to look at it the severity and people are being displaced >> supervisor as soon as i said it is in the context of master tenants i'll be happy to get the committee a few of the decisions

how to show adjudication of the hardships. >> i'm not suggesting that the rent board should have no discretion every case is unique and it's a mistake to micro manage how it's administered but there's a balance to be struck you can go to the other tremendous we don't know how the rent board is going to react. >> supervisor cowen you might have answered my question there were benchmarks or policies we can or will use to determine hardship. i'm southwestern direction that the it will be abused >> we don't have one for landlord but tenants don't pay

more than thirty to 35 percent we don't have an index for landlords. >> thank you. >> okay. colleagues supervisor campos. >> thank you if i may call on mr. egon from the controllers office and thank mr. egging gone for the technical assistance. >> good afternoon ted. our office was approached by supervisor campos office with the request can we provide the information that will allow a landlord to understand the market rate of a unit that they were vetoing someone from and the question was could we use average rent for example the size of the unit can we get that data on a neighborhood by

neighborhood basis and we advised the supervisor the best measure of what a given units market rate would be what would that have rented for if it was not subject to rent control so this led to the idea of the construction of an index that would be basically a number you would multiple by the rent of the unit that will vary for how long the unit has been subject to rent control since the last time it was vacant. this index does it varies from one year to the next it's a bigger number and it is reflecting both what the original rent would have been had the unit been subject to the

allowable rent since vacant and what was the actual rent for vacant unit not subject to rent control over that same period of time. it's going back in time to estimate the original rate and applying the rent up to the present to estimate the market rate. thank you time of eviction. so the index we're proposing or have been asked to develop as part of the levenths would be a number that a landlord would multiple by the current rent and multiply that to arrive and relocation payments. i can give you lubrications with units given the current rent and how long since its current vacancy and i can provide a written memo to talk about the