loans and grant that falls into the description of financial assistance so we want clarification on those terms so let me try to that about this for example, prop c has the trust fund on mission as i mentioned or small site acquisition and erect types of small buildings we were considering not the broader expansion of massy or different types of earthquake preparedness type of improvements to home i'm wondering if you can recommend the language that captures the residential language and not have it as expansive as i said. >> i'd like recommend right now that we added a little bit of

tightening on the occupancy it's clear it's income restrife unit that's an ongoing restriction so some in district units are not restricted for the life of the building but for a cafe time that might go further to limiting the universe of unit we're talking about i think we could provide for language in committee that helps to clarify the terms as to what you're sdrip. >> thank you dot city attorney's have more comments in terms of technical words or adjustments that need to be made that. >> not at this time we'll be happy to look at the ones that are substantive or material we'll refer back to the planning

commission. >> thank you at this time i want to open up the discussion to the colleagues regarding the rest of the amendments president chiu. >> supervisor mar excluding the in-law units. >> i have a problem i'll explain the intent of our legislation was to cloud unit that are emptied with public dollars and in-law units are part of the private buildings and private units and there's been a lot of confusion i think in the public what this hastening tailed we've heard from the members of the public i have a housing unit as well as an in this i want to that rent out any in this year round first of all, if the in this is not

legal you'll not been able to get the ability to registering to be a host if it is legal you would need to have a permanent resident living in the that in-law unit incorporated it's not enough to simply live in the main unit and use the in-law unit as a place in the how did you need two separate unit to apply for the registration and we should permit the in this to engagement i have a personal issue that for a lot of middle-class households they'll have the success access to gave me but to some of the 1r50ub8 san franciscans that don't

receive public induces if their traveling for working or otherwise want to rent out their space as others can so i'm not preempted to support the in-laws so with regard to supervisor kim's language let me say a few things i appreciate that supervisor kim i understand there were numerous conversations to tighten up one way or another what you're talking about i want to say i want to mention the suggestion there's been zero enforcement by the city is not true the department sent out many, many doss of letters, in fact, members of the audience that have received those there's been enforcement happened that being said supervisor kim proposal as a fairly limited private right of of action is something that

makes sense in conjunction with the ellis act i'm hoping a way to come together supervisor avalos i appreciate the hosted caps the idea to have limits if you're living in this i'm not prepared to support our amendment because we've heard from hundreds of resident and those tend to be seniors any time their windowors or empty nesteders that told his we have quite a bit here in the audience who have told you that they live in their unit year round but if there was a significant cap on the activity they'll literally need to move out of san francisco not been able to afford to live here i'm not

prepared to move forward but to monitor this this is an area that our planning department and staff will look at the tweaks but at this point not a clean way to look at hosted versus non-hosted because of that i'm not prepared to support that with regards to supervisor campos amendment with regards to the ellis act amendment i've just received i think what supervisor breed has an approach to deal with the ellis act is the cleanest way of assuring that we have shutting down the practice of landlords ellis acting the buildings or if you gave me in that practice people can run to court to stop you i think that makes sense i'm going to support supervisor breed's

approach but happy to hear more and the final question around taxes i know that has been about i want to clarify a few miss statements our legislation did not exempt anyone if paying takes back or forward taxes i was the first support to support our treasurer in saying we know that anyone that engages in those activities hosts are spotted to be paying taxes that was opined by our city treasurer a few years ago i was or building i was the first official in san francisco so is that activity folks need to pay their full share of takes i'm going to turn it over to they're there has been legal issues whether or not officially hosting the city council as grappled with until we move this

legislation no hosting platform had facilitated the tax final around move forward forward to set up a system to collect and provide the taxes of their hosts to our city that's a substantial step there that will result in 12 to $15 million a year i want to be clear there's nothing in the legislation it eliminates illegal back taxed that's an issue between the private taxpayers many of who have been paying their tax and that is between the controller's office office and i'll not be supporting supervisor campos amendment on this issue i certainly appreciate the sent 7, 8, 9 with that, colleagues, i thank you for your pains and

weighing through 0 those thorn i didn't issue. >> thank you it match my list so with that, i want to open up the floor for any further discussion. >> supervisor wiener. >> thank you, madam chair so i have some comments and also some questions first with respect to supervisor campos amendment around whether or not back taxes are owed i guess first of all, thank you supervisor campos for recognizing my offices work around public transportation funding and making it easier for small homeowners to rent out their partiallys in their homes i appreciate that but regarding the tax my understanding i want

to reiterate what president chiu said mapped is that the city and county of san francisco can initiate enforcement relating to tax from the past few years today whether there are an audit or an administrative native process a lawsuit that has been within the city's ability to do two years ago when the tax collector it was available 12 and six months ago yesterday today and tomorrow the tax collector does need authorization from this board firefighting if it's appropriate to see tax from the past few years from airbnb the original hosts i don't want to speculate as to what is happening or the dignities is made to do or not

do that there are serious legal issues for example, in your long-term litigates with e peed and maybe the city will have to sue individual homeowners to collect the back tax this is a legal issue that exists what this amendment side is to say despite the city has the power to file the lawsuit and whatever reason has not filed the lawsuit we'reing to tell homeowners we're going to stop you from engaging in short-term rentals until that litigates is solved whether 10 years or more we're going to keep i illegal and in the shadows until that litigates with airbnb are with the tenants or the retires lady with the home until whoefr it is that the

city is spotted to be suing you can't do this whether you need to make our mortgage or send our kids to college, in fact, it is going to be illegal for i to do any short-term rentals until that legislation works its way up and down the court system for reinforces and year we're actually seeing we're not going to be collecting hotel tax so if it takes 5 reinforces we lose no back taxes and lost 5 years of $11 million that's million dollars or we win and get the $25 million in back tax and still losses the 5 years worth of hotel tax to delay bring this existing practice in our city that many people rely on bring it out of the shadows into the sunlight and regulating it and

making sure it is not being abused to make that contingent on whether or not the city is going to pursue the litigation around back tax it is cutting off our notice to despite our face i'll not be supporting that amendment i want to move on to supervisor mar's amendment around in-law unit i want to make sure i understand so a question through the chair supervisor mar is it the the president around in-law units that if let's say if you have an illegals in-law unit whether a tenant or owner we know that many in-law units an owner lives there because they can't get up the steps and you have an in-law unit your living

in either a tenant or owner and let's say you're living there 3 hundred and 65 days a year not for one night gave me in a short-term rental is that what this amendment provides. >> the intent we insure had in-law units are not left vacant or eyed for short-term rentals i'm sensing in you're living in the unit and want to participate that's okay with short-term rentals but not to allow the housing unit duo to be use for short-term use. >> maybe i misunderstand i don't know if i have in terms of was it actually says my reading of that says if it's an in-law unit it is not it can't have short-term rentals there because

i'm in one hundred percent agreement no unit whether a single-family home or a between should she or he should be a shvrl we'll have consensus that we don't want to have this hotel listing if that's a word of our housing stock but the way i read this correct me if i am wrong this will completely make it blanket illegal to do any short-term rentals even if you're living there and the consequences of allowing the loophole that allows the homeowners with a in-law unit to leave it vacant for short term tourist rentals that is dangerous because of our housing crisis and i don't know if this may be should be redraft or was it seem like it goes beyond that and thank you supervisor mar

and then through the well in terms of supervisor kim's amendment i have some questions about that i understand this was not drafted that i the city attorney's office but the city attorney has a copy of supervisor kim's amendment i do have some questions about that so this amendment would allow a wide array of nonprofits that have existed for 5 years to file lawsuits for ungymnastic relief and attorney's fees against any unit that is rent control where they believe there's been a violation of the short-term rentals ordinance and the planning department has infected within thirty or 45 days; is that correct. >> deputy city attorney marrying listen through the

chair under the existing administrative code interested party does include nonprofits that have as part of their bylaws an interest in housing those interested parties currently can file a lawsuit for unscombrung u junk active relief but through the city administration so they have to file a complaint with the department right now the department of building inspection with the property amendment the planning department they'll have to have the director substantiate that complaint hold a public hearing and found a violation after that has occurred any interested party can file a lawsuit and get monetary relief under the proposed amendments the city will be able to the first

amendment the city can file an injunction at any time and the procedure for the interested party depending on the interested party if not a housing nonprofit then the interested party has to go through the entire administrative process a complaint with the director and hearing and determination by the director that a violation has occurred pursue the proposed amendment from supervisor kim then states if it's a nonprofit housing interested party that has also been in existence for 5 years from the operative date of the legislation they can susan sue an owner or enlist entity with a rent control building with 3 or more units with in 45 days of filing the complaint i

read this to indicate regardless of whether or not the planning department has decided to move forward with an physique active they have to file a notice to the city attorney's office but they could do that this mroeptd amendment changes the penalties provision it will indicate that only the city attorney the city rather could receive the civil up to the present time for one thousand tailors and day for violation and other interested party can get damaged the housing in time appears just make sure i'm reading this correct correctly. >> actually, i think i'm characterizing it correctly.

>> through the chair. >> actually, i'm let the city attorney reopened and let me make sure i'm characterizing the damages correctly just to clarify further the holy ghost nonprofit is limited to injunctive relief and any party including a housing nonprofit or the city can get attorney's fees. >> so right now in terms of what housing nonprofits can sue

for what are the i know the residential hotel ordinance for example, has that right of action by housing the nonprofits what are some of other works. >> in the part the municipal code those are the two i know but john gibner, deputy city attorney may know more. >> around housing issues i know this housing ordinance is one are there others. >> we believe there are the two. >> so the residential hotel and this one. >> the exist code allows for the nonprofits to obtain monetary damages. >> yes. >> john gibner, deputy city attorney there's a pending ordinance as well that i think in the budget and finance committee tomorrow the bio legislation that is similarly lowering the housing

nonprofits. >> but in terms of the universe of where the housing nonprofits can sue to what extent does it go beyond the residential hotel. >> it's just the residents hotel that is the chapter four 1 we existing 41 a also. >> okay. and okay and so right now this and typically under the current law when a housing nonprofit has a private right of action to enforce the administration active code whether in the residential hotel code there's a city administration active process first. >> actually in chapter four 1 it doesn't require the city producing process but in that chapter the relieve is limited to the city attorney's feeds.

>> when is what we're talking about. >> supervisor kim is proposing what the same penalties as limited for the nonprofit to injunctive relief and attorney's fees. >> and so help to clarify for me in terms of the exist law you're saying it is already in there then why is this amendment necessary for what's in there vs. what's been proposed. >> the difference in the current code a nonprofit would have to wait to go through the entire city process before it finally - and so you right now for housing nonprofit to be able to file a private school private right of action through the city process. >> and the director has to determine a violation. >> so what commissioner adams is proechtd in the amendment is a new thing in terms of saying

that a city housing nonprofit did not have to go through the process only file a complaint and 45 days later go to court. >> it meets the definitions of also having been in existence for 5 years. >> that's a new mechanism. >> yes. >> okay. so this would also cover every rent controlled unit in san francisco and a this with 3 units or larger. >> i'm sorry, i apologize. >> this will apply to every housing unit in san francisco that is subject to rent control and that's in a building of 3 unit or more. >> a that's how i read it. >> i don't know off the top of my head that is a huge housing

stock in san francisco other question would be so there are a lot of owner occupied unit that are subject to rent control say a 3 unit building that's not been condo converted i don't know if those would be under the language here if those are covered as well or if 3 in a building where the lymph gland lives in would unit and it is including. >> i read it as the rent control seemed to be madam clerk, the world building so it does appear a portion of the building is rent controlled. >> this will allow the nonprofit to file a violation of any of the short term ordinance new. >> a violation by a owner or business entity. >> and the nonprofit will get

injunctive relief and seek their attorney's fees so for example, if the owner is an individual who is engaging in short-term rentals and has a nonprofit to sue them and if they prevail they get their attorney's fees that's any violation of the ordinance large or small even a minor violation. >> correct. >> from a minor violation from an individual that owns a unit and is small building and engaging in short-term rentals can be sued has to pay attorney's fees for a minor violation and subject to the order of the court. >> of course if they paragraph if the housing nonprofits sues you as an owner you retain a

order it's a baseless lawsuit do they have to pay our attorney's fees. >> that's not provided for in the amendment. >> that's a one paw way situation this men and women strikes me as pretty extreme it creates a new mechanism and basically a housing nonprofit could file and make complaint against a huge number 6 building and would not have to wait for any kind of city process to give the city the first crack whether to determine a violation and simply has to wait 45 days he ever we staff up the planning department 45 days is a short time and go into court and basically fund users and your attorneys by getting the orders

of attorney's fees if there's violations against the small business owners if you're over filing or doing dry by lawsuits and win only a small percentage you don't have consequences for having to pay the attorney's fees in the ones you louses losses this is an esteem amendment and not one i'll be supporting and then finally through the chair to supervisor avalos so i'm clear this amendment that supervisor avalos is proposing would provide if someone it'll in their single-family home for 3 hundred and 65 nights a year you never leave you can't do shrlz of your spare bedroom for more than 90 days am i reading

that correctly. >> thashlg. >> i won't be supporting that this amendment will hurt a lot of people in the city that are truly relying on short-term rentals awhile their living in their unit to make end meet i don't think this is a good move thank you. >> thank you supervisor campos. >> thank you very much i do want to speak in favor of the amendment offered by supervisor kim you you know supervisor wiener uses the word extreme that extreme is in the eyes of beholder one of the things supervisor kim rightly noted an flying question with regard to the scheme is the issue of enforcement i've yet to hear my stubble financial resources to our planning department which as it is t is struggling to deal with the various projects that

are before it i think that our staff is doing as much but what are the resources they properly enforce this law in the absence of resources one thing we should do is make sure the third party's venting to point out a violation or at least bring that forward what's extreme in my view is that we are creating a new regulatory scheme without actually providing the resources or the legal tools to insure there is proper enforcement if extreme is the word i think that qualifies and extreme let's talk about back taxes and let's be very clear about what's happening here ask any small business in san francisco whether or not the