administration code harvey its story was publicity in a local paper that information that helps us with the enforcement and you know to be clear too at that point it was a violation to be a short-term rental so the burn for proving that was much easier that will that semiimplied with a limited number of days we don't have to determine someone was sleeping through while the unit was being lent out whether there be challenges but we have a diligent enforcement staff. >> so how do you know by the way, if you don't have to figure out if the person is sleeping there how to do check if so it 60 or hundred days. >> part that have that is hearing what we do from the neighbors if they hear about the

length and stay of the bookings and also as ms. rogers in the presentation a couple months ago technical solutions to some software solutions help us glean the information those are the information. >> so there are thousands of units listed on airbnb alone are you going to be talking to the neighbors of the thousands of units is that the plan. >> as currently we're complaint based so when someone has a complaint they can first find out on the website if someone has an authorization to do a short-term rental if they have authorization then it is a question of the length of stay if it is a longer stay very get it

we found thus far the enforcement is the registration program we have a good registration program there's been criticism but effective in weed out the commercial yours that don't live there that's a key part of ordinance and only issue certificates to allow the fees where someone is a resident they're running a unit and on on and on idol the information what the interim found by and large the dense it's they're in compliant with our cap. >> how many staff do you have to verify this information to talk to the neighbors and the residents. >> we currently have budgeting for 3 positions that's two enforcement and one administrative position and the last budget the planning

commission did give authority for an additional 3 positions will will augment our enforcement staff today, our enforcement staff is focusing on the people getting them through the process but hopefully, the budget process we will have adequate improvement. >> thank you, supervisor wiener. >> thank you, madam chair so i have questions for the planning department so mr. sanchez i want to make sure i understand what you said we currently, the planning department is doing short-term rental enforcement with pits existing enforcement staff it is focused primarily on the registration process. >> so as part of the budget there have or were 3 additional positions to be implemented into this program those positions are primarily focusing on the in

take the mrairgsz playgrounds and reviewing those are applications it is an important part insuring those people are residents are given the certificates we have existing staff working on enforcement because again, this is not a new phenomenon we're picturing enforcements on other cases and complaints prior to the phobic dated of this ordinance working with the city attorney's office a really big win on a couple short-term rentals so we work with their office. >> and with the new legislation going into effect in terms of enforcement beyond getting through the registration process have we've seen any augmentation from what you were doing before. >> no we've been focusing resources on proper and timely

review of the applications and not implemented the new enforcement process. >> thank you for clarifying that i - you know, i have as a i mentioned at the beginning a question about the planning department ability to say this is not enforceable when we haven't done what should be done to get you the enforcement resources to do a robust enforcement program the director is correct that's it there's many ways of doing enforcements beyond the step riverside an internet company to provide information about tare users i don't think that the city i don't want to put this in the placement but the city harassed done what it needs to do to put

the resources in to get that company off the ground but you have to get the enforcement program off the ground in order to make an transient decision whether whether or not the law is working or not working and enforceable or not enforceable so in the hundred days this lay has been in effect have you collected data about the compliance with the law about whether people are compiling with the - i mean that would be hard because simply put a cap of not 90 days on non-hosted rentals that is hundred dazed we've only just passed the 90 day they recalled a week ago

law is hundred days old you haven't been given the resources. >> the hard cap takes a big cap we've said the difference between hosted and unhosted was a challenging piece of the follower legislation i say the reason we're spending so much time on the registration process the most important issue is that someone is occupying those units on a full-time basis that's what the registration process takes it - we need clear documentation that someone is living in that unit and fraternal a fair number of folks are come forward with documentation that shows otherwise this helps us we'd auto a out a few bad actors the may the record show or most important thing to make sure

someone it living in the unit. >> how long is it taking your typical person to go through the registration process and how many visits do they have to make to city departments what's the process looking like 0 right now for host. >> thank you for the opportunity to explain there are flow charts renovating around about our progress making is streamlined process the first step to visit our website to review the material and familiarize yourselves and the tax creditors office to provide the license and schedule an intact with our department and then we review the material and issue a certificate since the effective date we have the material in mid-january for people to be ready to hit the

ground running so to speak only february 1st today we've received 6 hundred plus applications for the short-term rental program and issued 4 hundred plus certificates we've found approximately 60 applications may have information that will lead us to building that the person is not the primary resident we have one the complaints we've received we were playing phone tag we have an online scheduling system you can go to the website we have intact appointment available tomorrow so in terms of people come in that's much more streamlined i think some of the concerns were raised about having to go to the tax collectors office and it may take several weeks to get a license from the tax clorox clorox we're liking looking to

streamline that once we get the applications and begin the review our initial timeline for two to three weeks because of the thorough review and also your staff has been working on the perspective improvements extending e spending time with the legislation we're saying that is taking longer up to a month to review and get that back so we're working on certain resources to help improve that turn around time. >> thank you, thank you supervisor farrell. >> thank you supervisor cohen so a few questions first of all, a comment that's been discussed how to enforce this without day more than anything the host is required to hold the data the number of nights so we have the

penalties so i minimal we'll host what they're continuing to have on their own usage but also i think the notion i want to thank the planning department and the entire staff and director ram for that working with my office and mayor's office part of the office of short-term rentals to have the adequate staffing levels that the planning department they need in order to enforce the law we've had multiply reading with the treasurers and tax collectors observation to talk about the streamline process so we can facilitate and encourage individuals going to list their short-term rentals to register with the city with the times of the enforcement being under the as pies of our city i want to be clear i back and forth, if you

will by putting in a hard cap and by creating the office of short-term rentals that will be the assumption adequate staffing in our budget at the board of supervisors do you feel therefore you can enforce the laws we're going to create. >> the hard cap makes a difference in our ability to reinforce that and one of the fundamental challenges of this reinforcing this under not physical evidence for most of the violations you can accountability look at a unit or building they didn't do something by code you can't do something with that concept the unit looks at the same typically whether someone uses it for a short-term rental it requires investigation and time so as scott sanchez mentioned we have

3 people devoted and 3 more in our budget that's the way more for any mechanism in the department it is 10 people or so we have 6 people devoted to this topic pursue colleagues from my prospective a difference of opinion we have one grave right of action that in my opinion is going to again encourage neighbors so neighbors have to incentivize them to seek civil penalties against their neighbors on the other hand, and to jump the city process and not allow the city to have investigations but having from my prospective i'd like see my city agencies and departments be adequately staffed and be able to enforce the allowing law

instead of neighborhoods against neighbors rather than pit one person against each other in san francisco i want to make sure from my prospective we adequately staff our agencies >> because enforcement of those regulations there's been an expensive beat what hosting platforms have you been in contract with other platforms such as craigslist and have they indicated their left lane thinks in comply whatever measure is passed specifically if their comply with the requirement to not list any unregistered units. >> scott sanchez planning department so part of the recommendation the hosting platforms for unregistered unit the hosting - we've been in

contact with the airbnb as a hosting platform but we have not asked if they'll ply with the requirement it is not a requirement from our commission. >> you've not been in contract is other mroochldz. >> even when asking questions on the business model in questions at all. >> excepts the city attorney's office stave overseen the city but i don't know. >> i was talking about beyond city you know, i mean when you come to a decision you try to hear from the majority of parties that are involved i want to make sure we are not creating legislation that targeted one approach company we have several in the marketplace that are operating and wonder if they've been communicated and a take into consideration. >> planning department staff we

reached out to the around o and the alley election and the only response from airbnb the only one we kaeblthd with was the local platform but we tried others and got no response. >> supervisor wiener anything we'll continue with the presentation the next department to present will be the budget analyst analyst. >> good afternoon supervisor cohen and supervisors i'm fred from the budget analyst office hang on one second i'll start this. >> overwhelming to report today

on the analyst analysis we conducted for the supervisor on the impact of housing we addressed the questions of the impact of the short-term rental market on housing in san francisco we're also asked to look at the enforcement issue and the impacts on evictions our scope was the entire industry it was not any particular company we have data we analyzed that was from airbnb but we are using that as to represent the industry and building our estimates are understated we're not- we didn't have data from all the platform companieses pratt from this one the impacts would be greater this first slide is a snapshot

of housing and the short-term rentals in san francisco 3 hundred and 6 thousand affordable units and 12 rental hours units this is the u.s. anticipation and 8 thousand 4 hundred for rent in 2013, the vacancy rate airbnb listing we got this information from a website in 2014 there were 6 thousand plus listing in san francisco and this is unhosted and entire units and hosted private and shared rooms excuse me. 16.9 million visitors recorded in 2013 of which approximately 3 hundred and 21 thousand state in short-term rentals to a small

number relative to the vitals and relative to the housing units and the how's duration is one .5 nights in visitors staying in short-term rentals we've averaged the airbnb prices for the different types of listing the private room hundred and 15 and shared 72 and $209 averages because we didn't have data compared to for example the analyze of hotel industry we know where holds are located and how many there are and how many rooms and occupancy there was nothing like that to begin the analysis to obtain the data they were key for the getting the

number of bookings and listings but we also used consensus data and other analysis that was done in the industry and as well as documents and statement from airbnb and other companies as well what we did in our model is not only to determine the number of bookings based on a formula using the number of reviews per listing which was a formula we used and has been used by others that did similar analyze including the san francisco planning department graduate student interim and the analysis for the city of la and then we allocated by neighborhoods both the short-term rental unit and the listing to determine impacts by neighborhoods and while i stated the total number of units that

are allocated as short-term rentals is not large compared to the housing units and particular in certain neighborhoods the impact is stronger we've developed scenarios low medium and high i wrote a analysis on that. >> first of all, an important part of the model distinguishing between the casual and commercial hosts we've used cut offices in the number of booked nights to determine casual versus a commercial host the overall definition a casual host is one that rent out their entire united or a room in their unit on occasional basis away for a weekend you know for various reasons it may help them make end meet but

not to be routine by the planning commission, and may be acted upon by a single roll call vote ongoing source of income or a business they're operating and commercial host on the other hand would be booking their room or units more frequently and the incomes 83 riverside is an important source of their earnings for them and beyond is a certainty point substitutes so for a roommate or rent on a long-term da's basis we use 58 was the cuff off for one of the scenarios primary scenarios that number comes from the anchorage number of bookings for entire units that has been recorded in a document pretender for airbnb but we also found significant 58 nights for that entire unit on

average the host are making more than they would for the medium rents for units in their neighborhoods so from 58 or 49 and i don't have the earnings are higher than what you get from what i pay if you rent that's distinguished from the market rents that's much higher the medium rent is for tenants in units can committed people that have been in the unit for years or rent controlled arrangements not to say everyone is meeting the market rate of 3 thousand plus dollars a most for the medium of 2014 for the period we looked at we did find there are hosts that are exceeding that amount we found about 5 hundred of the hosts were earning more than the

3 hundred thousand and 2 hundred were sloith below that the next slide is discussing the significance of the 58 and 9 i think i've addressed to the host for 58 nights approximately being away for two months at 90 nights 3 months is a reasonable amount of time for someone not in the business of short-term rentals i want to state as we stated in the report we realize there are exemptions there are people that go away fire longer percent and would not otherwise be living as a roommate or renting out their unit but the other side people are earning enough to certainly cover their rent and so we

believe to people who are keeping units off the market or rooms off the market just the opposite is true over 49 and also in a consulate report present by a consulting firm out of ushering berkley for the airbnb 50 percent of the hosts using the short-term rental income it is a higher estimate percentage what we call the casual group i'll present that information in a minute here it is for 6 hundred thousand hosts for 2014 the model that we developed in the emphasis we conducted the medium impacts the middle is 68.6 percent were classified as casual under the

told her who are renting anti occasionally perhaps; right when their away not rely on the income or representing out for a long term tenants and the other proportions are the allow impact scenarios this is a map quickly on this slide showing the distribution distribution of casual that is hard to see they're the blue dots they're pretty much following the red dots of commercial hostile you see the concentration in certain neighborhoods those are the neighborhood we're discussing our particular focus in the report actually, the intermission and telegraph hill and the castro and cellist those are the neighborhoods showing the commercial hosts broken down

by unit for shared rooms and the use of neighborhoods i mentioned plus selma is in this one as well inform the impact of commercial units to focus on the commercial side commercial hosts where entire units are being are we talking about out they're one thousand 2 hundred and 51 in the medium impact and the higher is one thousand 9 hundred and 60 and the lower 9 hundred and 25 and this slide presents the commercial entire units listing the percentage of vacant units statewide citywide so the 3 scenarios that is comparing the commercial entire unit being

rented out on short-term rentals to the 8 thousand 2 hundred plus the 11 percent of the vacant units up 23 percent of the medium impacts for the impacts on certain neighborhoods it is drildz from the numbers that are not significant maybe even in the scheme of the entire housing stock in san francisco certainly the higher rental market in specific neighborhoods the percentage is high what we do was take the consensus data on vacant units entire units as you can see this is a rental market in those neighborhoods and the vacant unit and the number of units we're clarifying as commercial entire units eaten pitting those together what that representatives in the way of

the potential rental market in that neighborhood in the unit were available and the percentages on the right very high for mira loma and sunnyside and hate ashbury and coastline is a higher number of units and then the citywide is at the bottom 12.9 percent of the united fall into that clarification so some neighborhoods we have some of the neighborhoods report and some are low down to 5 percent those are the areas where the impact was particularly the strongest this was doing the same analysis but for the private rooms the impact is less significant a high threshold as you can see the percentage of potential rooms for rent relative to the

entire stock is ranging between 5 to 14 percent those were the high impact neighborhoods and citywide of 5 percent in terms of the evictions we certainly observed that the number of evicts is high in the same neighborhoods where there is a high number of short-term rentals and the high impact neighborhoods we don't knick conclude or do the analysis to say one is caused by the other but certainly an observation has been seeing evictions occurring in particular neighborhoods as you can see here the intern mission and the hate ashbury western edition has the highest percentages of evictions and are also high in the short-term rental commercial hosts we using