because of the mayor and supervisor farrell's legislation allows four short-term rental we allow the protection of the housing stock it has a positive economic impact we can't quantify because of the limitations i'll speak to a couple of indicate yots this analysis only covers 2 bedrooms unit this is only because craigslist didn't talk about the difference between studios there are more 2 bedroom units that fit our purpose, and, secondly this is an important part of the debate we only look at the vacant unit not comparing to the rent you got on get on the private list on craigslist if you are looking for a full-time rental this is complicated

because it is noted simply an either or indecision decision that you have a rental you'll rent it out full-time or short term but if you have a spare bedroom you may want the space the consensus says over 20 percent of the space in san francisco it has more are a vacant space at least one vacant bedroom and what's interesting for our trend is that despite the growth in rent in existence 2010 and despite it increased since 2010 that percentage has not moved that percentage people preference to have vacant bedrooms in their house didn't seem to particularly incentive to what we do on a should recall

playroom or looking for a roommate so for that reason we don't have the analysts we believe if a given cap is executive for a 1r57b9d unit that will not be effective taking the vacant bedrooms off the market for a roommate finally to committed this amongst our impact reports we've had less data we want to make the point in the future the city will have more data it is likely we'll do more analysis we have a more robust confliction than that now and summarize our approach that's no data on how many housing units are being removed if you stop the housing units short-term rental is good if you cannot stop them from

being taken off the market that's the risk of a negative impact we find that a cap is necessary given the relative income i could make short-term rental on a full-time basis versus the part time but bans what is happening in the neighborhoods across the city both proposed caps are more than adequate to reduce the green voter of risk of vacant housing units being taken off the market and for that reason the larger of the caps will allow more of the benefits of short-term rental and have a more positive economic impact that concludes my presentation. i'll be happy to answer any questions >> supervisor campos. >> thank you very much madam chair and mr. egg on for our work i haven't reviewed the final draft i went over the

prior draft you shared with us just a couple of questions your analysis is based on certain assumptions it some of the simulations are not correct what does that do to the analysis does that led to a different conclusion. >> well, the analysis relies on assumptions in if the assumptions change the data is not correct a. >> there is perfect enforcement in terms of that law. >> ; is that correct. >> i don't know if we use the wordperfect we said it will be enforceable so. >> if one the conclusions navigate that is an incorrect assumption the law is not enforceable that changes the result of our analysis. >> we're analyzing both the

proposed ordinances that have their own 0 impoverishment we don't feel we have the confidence as an agency that didn't do enforcement saying this is more effective we simply have to leave that. >> that's what i financially the problem i have the enforceability and for us we believe in impoverishment can't happen await certain things that changes the analysis another question do you take into account as you analysis this allowing law c have i take into account the impact of the evictions like the mission. >> we haven't take into account the impact of evictions we considered whether a cap will have a different impact on evictions of the vacant unit i think we satisfied ourselves in

the cap is effective if pertaining a vacant unit it will be as effective as pretending evictions obviously rents are high residential residence there can be a motivation to evict someone that has nothing to do with to with the evictions so if people use a vacant unit for residential rent steadfast a short-term rental that cap will not make an additional motivation for environmental impact someone. >> it is impossible to have a true analysis of economic impact without looking at the evictions i want it end in our report it is page 8 you say that there are

srntd harms associated with a unit is are removed from the housing unit can you explain that to us. >> sure when a unit is removed from the hyatt it the restricted and it makes the housing go up so people spend more money on housing and letting less to spend less in the city 80 so the consumers they may require we're talking about samuel effects but if it is large units if the housing gossips the labor costs go up and people need more earnings to earn in the city and that has other sellers impacts. >> do you have a quantifyable impact in removing one housing

unit that quantitativelyable impact that's what we're saying. >> what is that. >> 2 hundred and 50. >> 2 hundred and 62 thousand. >> i think in the final draft 2 hundred and 62 is hard that is the research. >> if we conclude one housing units the economic impact is a loss of $206,000. >> yes. occupied i say shrm you get benefits but we found the net effect is still 2 hundred plus. >> did you review the budget analyst report. >> i read it before today's hearing i reviewed piece of it.

>> in that report there was a projection of the number of units that are being lost to commercial short-term rentals did you see that. >> yes. i did. >> so based on our analysis if we lose 2 henry adams and 62 thousand which one housing unit is taken off the housing market if we include that x amount of units is removed from the housing market the economic interacting impact is 2 hundred and 62 thesis times and supervisor one the reasons we say many times in our report we don't have the day on the rent controls how many housing unit are permanently off the market we explicit do you want an approach to try to make an

estimate we don't feel that is there that's why we are expressing if on a per unit basis. >> i think i'll end it with that, i think that is interesting that the one thing that is clearly delineated in that report is that if you have a loss of one affordable unit there's a clear negative impact on the city of 2 henry adams and $62,000 on anchorage if you extrapolate that in terms of the number one number of units removed from the housing unit if you take the numbers from the controller or the economic i thought the 9 hundred and 25 units to one thousand 9 hundreds and 62 units that's a total of times $200,672,000 that's

$242 million to as high as $513 million thank you supervisor farrell. >> thank you, madam chair person so mr. egon i don't want to leave it there i appreciate supervisor campos comments and numbers but that is taking apples and oranges and municipal court them to get some other fruit he'd like to have (laughter) clapping) i don't mean that facetiouslyly i want to get to our comment i think the budget analyst report makes a lot of assumes and has conclusions and from my

prospective are dangerous you took a different approach to say we don't have enough data to analyze it can you talk about that it is important to have it discussion to take something piece of information they're important trade in the media as facts as you supervisor tiejdz there's no day available to the city or public domain that says how many nights a year the units is on a short-term rental approach theres a there's a cleaver method how many the period duration over which the rates are taken that method we replicated is subject to error we know that subject are used

over hundred and 50 percent of the time it is mathly bobble it is not necessarily the analysis has less arrow we they did this approach suppose you knew how many nights a year it is occupied you don't know if there is a situation of a full-time resident moving out that many times or the owner of a vacant unit bringing in that many guests one of the things i think is important to keep in mind if someone has a vacant unit and they have their intent to treat is it like a hotel you'd expect them to have an occupancy to a hotel 3 hundred and thirty nights a year the budget analyst

circulated the incremental eye or a commercial hosting is much, much less like 60 to 90 days a year i don't understand why you assume that someone who only relents 90 days a year and leave their unit vacant the rest of the time that's what a property owner would do with their property it seems like if you want to be a commercial host you'll use it as much as possible. >> maybe they're being poor commercial yourself. >> you do have a well, let's pit it this way i prefer to study the real behavior but this is what we have to work with. >> thank you very much mr. egon. >> okay. so we've heard the

reports thank you, mr. egging on. >> thank you colleagues are there any other future questions or comments supervisor campos. >> thank you. was telling supervisor farrell i'm okay you know being society with fruits there's nothing wrong that that (laughter) but i will say what's interesting interesting about this whole discussion others crux of the criticism of the budget and legislative budget analyst report there's all this data that's not under and the reason why the data is not there airbnb refuses to provide that so i wish that folks who or so concerned about that will actual address the question to the actual reason that's a problem

airbnb and by the way, the reason why question focus on airbnb is because first of all let's be honest here mr. chow met with airbnb 66 times before airbnb started so airbnb had a lot to do what what writing the law so airbnb and their supporters show you we're picking on them they wrote the law they wrote the law and the thing about the idea of a lemon you know when i if i buy a lemon from a car dlaerl i'm not going to go back to the that dealership to buy the lemon we bought a lemon from airbnb it's conformance. it is common sense i look

forward to hearing if the public >> supervisor wiener. >> thank you, madam chair so you know the budget i have a lot of respect for this budget analyst they've done extraordinarily work for me and they're really just terrific to work with and do a lot of great work it is not entirely fair for the basis of conclusions and for calculations and to really probe whether they were done in the right way or present a false conclusion or be a liar they're tough and we can have that public debate i happen to agree with supervisor farrell i judge

don't think around the issue of vacant units the calculation was done in a way it should have been and gardened misleading headlines i'll say it not helpful to take potshots at supervisor david chiu up in sacramento represent our district. >> what air force the extremely member of that board is not here to defend themselves but i don't think that is a helpful way to conduct that debate. >> all right. supervisor farrell. >> let me say the comments about the budget analyst they're amazing to work with they've done great work and continue to do so from my prevention that is a more about the data that is

available supervisor campos comments one the companies have has it day we prospective we need to look at this issue across san francisco and across every single platform and no other platform aside is from other than has this data i prefer for the city and county of san francisco to go take a holistic approach to the situation and to the area of short-term rentals and scapegoating one company is not the right approach whether they've within involved or not in drafting prior piece ofs legislation i've spoken and since i've spoken with the opponents and spoken with everyone and i'll say this they've been at the table talk and willing to share adhere points of view as i've been talking to a number of short-term rentals companies and this engagement is key bottom line from my prospective

we created a framework our home sharers is a part of san francisco we have car sharing and parking lot sharing and sharing as an economy as residents in n this country it's a very, very young industry and we've entertained at the board of supervisors inside of city hall we'll have to be open to reinviting them angle a more frequent based on areas of the law i have no qualms with doing it here i want to thank the planning department and identifying i'd like to see this law enforceable and protect our affordable housing in san francisco and makes sure it styles to encourage those who use their short-term rentals to

scomplie with the law in the city of san francisco. >> thank you very much okay. okay members of the public remember you have two minutes please line up on this side of the chamber i'm going to call names and when you hear your name, please get in line for your cue (calling names) let's go people get in line one person is not here okay scott i know you're here gone okay. (calling names) robert please jim lazarus

karen i can bring rudolph inform with you and nancy >> thank you members i appreciate the opportunity to be here robert with the intersect association again excuse me. we appreciate the complexity of that issue but we do have some comments we want to make above the internet committee generally our association that made up of the country largest internet he companies he and with the legislation you're now considering with supervisor campos proposed legislation and the two pieces we're concerned about neuron on the data sharing abundantly mandate that is an issue of privacy it is an issue that has effects and frankly an inappropriate and enin tool to

enforce the agency requiring the internet companies to turn over data for enforcement just because it will easy the pathway to enforcement agencies doesn't mean it's correct and decades the jurisprudence of counseling this conclusion there's needs to be for a specific reason and needs to be a way to protect the privacy of citizens it didn't meet that standard and the second piece is turning scombekts companies of arms of government to have a listing open a website therefore if they're not up to code we'll be held kci terminal advisory commission and civilly liable this is an issue when it comes to the entire for locals to enforce there are other ways to

force i'll urge you to remove some the problematic elements from the bills specifically on privacy thank you thank you for your time. >> supervisors jim lazarus chamber of commerce representing 15 hundred local businesses celebrating small business week home sharers is part of our small business community and supporting all small businesses in the city last year the airbnb contributed 57 or $469,000 to the economy supporting small businesses and employment several the airbnb properties are outside of the traditional hotel and investor areas providing restaurants and merchant the opportunity to share in the strong adversity economy hosts help the economy

and airbnb guests may $12 million in taxes in 2015 capping rental nights at 60 days costs $5 million in city in 2015 revenue money that will otherwise go to fulfill funding violate public services and funding homeless programs that the mayor announced last week and other general fund needs san francisco and other communities across the country s are working to develop the right regulations for the sharing committee here in small business week let's own the board of supervisors cho's choose smart regulation not strict regulation the chamber asked you to support

the legislation by supervisor farrell thank you very much. >> karen oh, okay. go ahead. >> rufus representing the region 2 hundred and 75 of the largest employers thanks we've fostered an investment cross the wide range the disciplines and industries the acceptance of new technologies is a major driver of the san francisco in the region we're experiencing and why we enjoy the lowest employment this short-term rental industries is one of the meeting industry and is about transbay joint powers authority to that success the short-term rental industry helps folks to augment their income and afford the high rentals we heard it

trnts to the spurt of businesses that support the community they support our hospitality tars this industry that is one the san francisco top employment industries and employees temples of thousands across a wide range of income and the current affordability crisis have a long complex industry as you can see the new legislation on the fledging short-term rental industry it nurses you to take a light approach it doesn't clip the wings of the >> thanks. >> thank you. next speaker, please. >> next speaker >> i'm karen host our committees more logical recommendations is that the

board prove a moratorium on changes until a study to identify the s t rs in the how's shortage certainly can't be considered scientific enough to warrant changes no legislation in fact, in november of rifle the increase in evictions wore the purpose of selling was evaluated to the rising home prices better to be safe than sorrys were the expectation i asking question hundred and 25 plus removed because baigs of airbnb lou gehrig's disease shouldn't that i think definite number be suspect i challenge for definitely proof that the eviction unit is now how it can

be identified as also identify s t r in transparency is a goal in government there is no choices for this committee if the board decided to start why not start with the units all vacated by the ellis act violations not be allowed and be heavy funded after ref notification i would add conviction that take place from this day forward give the planning department or whoever is identified a chance to solve the current glitches they can track evictions with the money collected from the platforms thank you. >> thank you ridiculously the first one the units lost to

housing the term commercial unit that can be rented 4 quick examples our home 2 bedrooms valuable we rent one without a kitchen and would not rent it to anybody number 2 a friend's home two extra bedrooms she represented out one and the an never renter rents for $50 and number 4 a neighbor that has an in-law unit apartment with a 3 bedrooms none have been rented for a year and a half so i'd like to say to the term commercial lacks something. quite a bit second issue living in the western edition we rent a small bedroo