Skip to main content

tv   Ethics Commission 52316  SFGTV  June 2, 2016 7:00pm-9:11pm PDT

7:00 pm
build units, but we are seeing housing units to the addictions, to no-fault evictions, to use by short-term rentals. three fourths, if we can never build our way out of the afford the housing crisis if people continue to remove housing that could be rentals did so, please, support this legislation and get the income for our city that we need an police the web. thank you. >> supervisor peskin: thanks. after the next speaker, [calling names] >> testifier: good morning. teresa philanderer. thank you so much supervisor campos and supervisor peskin for bringing this to my for creating this. it sounds like we can finally say, if you want to do business here in san francisco any and all platforms, you have to
7:01 pm
follow the law. you cannot do false advertising of it illegal units if people have not registered. as a staff member of senior disability action, i also speak for the seniors who i know have lost their homes in those homes have indeed become short-term rentals. i've only to think of the 22 units that are still being used as vacation rentals in my neighborhood. we are actually talking about one block, 22 units, and those are free of the buildings were there had been [inaudible] seven years ago and this is a way to bring in the platform to hold them accountable and to stop our seniors from being evicted for greed and so, i want to really support this and i hope everyone will support this. this is so important to our
7:02 pm
communities, to our city, to maintain neighbors and neighborhoods. thank you. >> supervisor peskin: thank you. >> testifier: good morning, supervise. i'm marla night. i'm cochair of north beach tenants committed to living in north beach i have seen firsthand what's happening in our neighborhoods. being converted from residential that would into a commercial neighborhood, without any change in zoning. units as ms.-said, are being used entirely for short-term rentals. 75% of these are illegal, and very big money is being made we urge the committee to support this wonderful legislation can i am so happy it's been put forth. we need to enforce our current legislation and air b&b and other platforms need to stop
7:03 pm
hiding behind registered hosts who are doing the right thing. thank you. >> supervisor peskin: thank you. next speaker, please. >> testifier: mr. chairman, members of the committee, my name is alex rosenthal. and second vice chair of the san francisco democratic party. and registered hosts. i agree that commercial landlords using the hosting site illegally are a problem the city and home share in committee need to do more to work together to stop the abuses and to get folks to register. but it also needs to become much easier to register now to share my experience with you to illustrate. my job at a technology company became unstable run august of last year so i thought about ways to make sure i could pay my mortgage in september. i thought about renting out my extra room. i knew there was a registration process and i looked into it and i saw required a lot of work. got to make an appointment to meet with the opposite short-term
7:04 pm
rental housing, present with several documents to show your listing is a primary residence and you also did a business license. before i did any of this stuff, though, i didn't know if i would like doing it if i want to rent out my room has some insight about inviting strangers into my house did so i spent a few weeks cleaning and organizing and i posted the room and i two different guests were lovely people. was a positive experience for me so i made my appointment with the opposite short-term rental housing in order to register. it took two months to get my permits. there was a problem with the treasurer's office website so i could not get my business license. personally met with to give all my documentation with the office could not get in touch with her. it was relatively onerous. i think this is fair to say that an extension is fairly common. folks are not to go through this process until they try using the service once or twice. requiring registration from day one will affect what killed the service in san
7:05 pm
francisco. if the registration remains as difficult as it is today. unless-so i've also a third of the entire homes is on air b&b are rented out for 14 nights over the last year. if you're only renting out your place within two weeks a year, you not understand two months registered. i'd urge you to consider a grace period for house and registered. >> supervisor peskin: supervisor campos >> supervisor campos: at the beginning of your comments you a device so as the democratic party get are you speak on behalf of the san francisco democratic party as an individual or capacity? i want make sure this is the party speaking >> testifier: i'm speaking as an individual but i ran out of time to say that san francisco democratic party did pass a resolution supporting the concept of this legislation last week. however, they can recommend to be a three-month grace period for hosts the buses become easier to register. thank you.
7:06 pm
>> supervisor peskin: thank you. next speaker, please. >> testifier: good morning. my name is pam we. i'm speaking here in support of the legislation. i'm speaking here because we feel very strongly that it's important to be able to keep my neighbors, my friends, my peers who are teachers in san francisco. i feel that this legislation will be able to protect them from being pushed out because of the practices of air b&b. this is very personal to me. i live in the richmond district, where the rates of eviction is going up, and have investigated this, and i want to thank the legislative analysis that verified for me that the rates of reduction has been correlated about were corresponding, to the listing of air b&b in our neighborhood. so, i feel that
7:07 pm
with 82% of these listings not following the law, not being registered, is really important in terms of leveling the playing field. but this is very personal for me because my possessions in my parents garage of two-my friends so possessions are there. being stored because they been pushed out. they used to live in rooms that they could rent because they had previously been pushed out by gentrification. the air b&b trends, they were pushed out of those rental units. one now is living with her mother out of state. the other person is still looking for a place, but this is real stories. did the bill just go
7:08 pm
off? okay. for me, this is -okay. i'm in favor of the legislation and let everybody played by the law in him here to fight to protect rental units. >>[applause] >> supervisor peskin: next speaker, please. then, [calling names] >> testifier: hello. my name is sun to help one. i'm a property owner in san francisco and him leasing my property to a tenant. i had left san francisco to take care of my mother in pennsylvania. about a year ago, without my permission, my tenant began renting that property on air b&b and i returned to san francisco to take care of the issue. as the
7:09 pm
owner of the property, i have been found in violation and being signed for $85 a day while concurrently spending money on costly eviction process. meanwhile, my tenant is earning twice what he pays him rent from the air b&b rentals and faces no consequences from the current short-term rental law. item being held accountable and find for the illegal acts of my tenants. yet, i am doing everything i can to [inaudible]. the city is put me in an untenable situation. supervisor breed, i been in contact with samantha rojas in your office regarding my situation. i need your help. i need it now. thank you. >> supervisor peskin: thank you
7:10 pm
next speaker, please. >> testifier: hi. laura clark. i think i don't like your b&b. but i don't like hotels either. if i never have to state that another best western ever again in my entire life, but kevin, thank you. but if we hate hotels, if we hate air b&b, then let's do the straightforward thing and raise the taxes on those facilities could if we think that the city is swamped with too many taurus then let's just do the street thing and raise taxes on those things. i think that what we have done here is created a cumbersome process for getting registered and then yelling at people for not getting registered. if we want people to actually register, if we want the system to function, we need to make the process for becoming legal easier,
7:11 pm
seamless, and not the kind of long story there were hearing from people were trying to get legal, people running for office and are trying to get legal are struggling through this bureaucratic nightmare that is frankly clearly designed to this incentivize their b&b. we all know why we made this process cumbersome. it's because we don't actually want people to be registered. additionally, the more difficult you make this process of getting registered, the more you are selecting for individuals who are doing this as their main source of income. not people who are doing this for one or two nights a week. you are doing this for people decided that this is their main source of income that is why they're going to devote months to the process of getting registered. so, streamline this process. don't just drop the hammer on the people who are struggling to get registered. i
7:12 pm
agree that we need to address the problem that this woman brought up her she's the landlord and she's getting punished for the bad actions of her tenant. that is terrible. we need to fix that, but this legislation doesn't really solve a problem. this just adds another hammer to the problem. thank you. >> supervisor peskin: thank you. next speaker, please. >> testifier: hi. my name is cynthia funk with housing rights committee of san francisco. i live in district 9. i'm very grateful for the work that my supervisor is doing. my landlord is in him. i actually really love my landlord wow. my work is primarily interested one and i want to share some of the response expenses were having in that district. we need the city to be able to enforce existing law when you got to happen now. it's urgent. in the communicating process by engaging in in the richmond, we e hearing all types of stories about folks just walking with her committee moves up and down. and comments and folks can actually point out that unit was of this is easily a no being used six
7:13 pm
units of them are short-term rentals folks know it and it's destroying the fabric in our community. it's really problematic. that's what we need house hosting platforms like your b&b. that's only limited to air b&b. it's my understanding it's for all hosting platforms. we need corporate responsibility now. was actually looking at air b&b listings of this morning. i saw couple in the richmond. $675 per night for two bedroom, one bath at $3500 for luxury house rental. $7000 for a gorgeous single-family home. i'm looking at these rentals that are instant bookable and think about all the family second attribute in those units. we are in housing prices. it's time for common sense legislation. this only allows the city to enforce existing legislation. this does not impact when boards for folks trying to rent out their units.
7:14 pm
so homeowners in san francisco were already following this lot were nothing to worry about. we need to fix the burdensome process that folks are expensive, that is true but we also need to make the existing desertion enforceable. thank you. >> supervisor peskin: thank you. next speaker, please. >> testifier: my name is jan felt it on the redshirt house in district 8 and reading a letter from a host in district 11. please, oppose supervisor campos on sharing order to bring all the parties to the table to find rational legal sounding solutions. this year supervisor elections may well have much to do with the direction of the city over the next years and many vital issues of its future is a great place to get one of those is affordable housing. differences of opinion on how to make san francisco housing more affordable are evident among members of the current board. whatever the effect of the
7:15 pm
proposed law short-term rentals it appears obvious the timing of the proposal recognizes wishes to circumvent the possibilities that the next word they do things differently from campos and others on the board. there's much more at stake here than a few hundred units that could arguably be returned to the long-term housing market at the cost of increased bureaucracy, increase it would akamai, increased confusion and increase her rosman of homeowners. except if the moment the purpose of supervisor campos's proposal at the study, i support strong regulation that protects housing for residents and hold real estate speculators for using the system. i believe all platforms can step forward and do more 12 the city. while believing adequate affordable
7:16 pm
housing the city will require changes in june with supply and demand that far exceeds the life of any platform to significantly affect. and i firmly believe the city needs to simplify the process. particularly for those who rent space out just a few days or weeks are you. i greatly welcome attempt by the city develop a one-stop online registration process for host. the ever-changing rules and new regulatory requirement only confuse the process more including the newest rule that hosts create an inventory write-down to silverware reported to yet another city agency could nobody seems to agree on the details of this latest bit of complexity. the legally questionable proposal will only lead to more confusion and frustration. post residents and regulators. it needlessly tramples online protection act conflicts with federal law. >> supervisor peskin: thank you for your comments. [calling names] >> testifier: i am being mauled and i am with 10 years in the city. this is the first, speaking. i have [inaudible] in
7:17 pm
bayview now in district 5. i'm a registered host and it was quite difficult to register. i have a foreign name that is not part of the english alphabet and i had to go several times back and forth with the registration to dbi, before i was eventually successful in registering. regarding the unruly guests that have been mentioned now more than one time, i feel that the long-term tenants in our building, in the next-door building, there sometimes also the out-of-town guests and some of them don't
7:18 pm
understand the concept why only people who can afford to help them, [inaudible] can come to this town would not be low rentals. i think the legislation is if enacted [inaudible] it was confirmed november of last year. by majority of the citizens here in san francisco. when as an argument by supervisor campos corporate responsibility and good citizenship as mentioned which i highly support, at least your b&b is paying taxes. i think before they're forced to do that. >> supervisor peskin: thank you. >> testifier: don't overdo eight >> supervisor peskin: thank you, sir. thank you for your comments. next speaker, please.
7:19 pm
>> testifier: >> testifier: good morning. my name is elizabeth frommer. here we go again. a decimal little tired of, down to city hall. but, it's clear when enforcement of an short-term rental laws are not working. 8/10 are not registered. that's kind of wholesale disregard for laws is sort of rivals probation. you must have to wonder why that is. probably, the externally high cost of rents and housing. but, i was the first person to register in this process. i've a certificate number one. >> supervisor peskin: we saw you on the nbc piece.
7:20 pm
>> testifier: thank you. did you like the dog? he was the homey touch. i continue to comply with this ever-growing list of requirements, and now, three city agencies are involved in this is just to rent a spare room that i have to supplement my social security which of course leads to more stable neighborhoods in aging in place for a lot of seniors. i would like to support these proposals because short-term rentals have completely gotten out of hand. the majority are legal and american shooting to a housing shortage, but i like the idea of corporate responsibility. without them we have no environment protections
7:21 pm
we would have to continue to fight every day for those. but i also agreed a lot of people spoken to this, the process needs to be made easier. registration should be easier. a sort of question the 571-r, personal business property tax requirements. perhaps you could create an agency like a citizens advisory council and task force. we've got people in the texas initiative we can do something about this. >> testifier: thank you. next speaker, please. and afterward, public comment [calling name >> testifier: good morning. peter: >> supervisor cohen: here to strongly support the legislation. good to see it coming for. i was almost like misnomer. we would then have total one & compliance in this whole enforcement fiasco would not be good for us. the budget
7:22 pm
was later analyst report made clear that we do have a lack of compliance and have very weak enforcement system. it was another report that came out almost in the same breath from our planning department called a housing balance report, i don't want to be lost on us. this is a continuous track of how much affordable and market rate housing we are producing but also how many existing portable units we are losing. the control unit being taken out of print control to various speculative means. what's fascinating to boil down, but every four units affordable housing the we've been building, we lose three units of rent-controlled housing. that's not quite standing in place. if not a terribly impressive track record. not one we should accept as a continuing trend. why those units are being taken off the market is of course because of a number of speculative forces but we know the short-term rentals being so unenforceable such a lack of compliance is a right opportunity for
7:23 pm
speculation removal of those units we have to but not all. this legislation is a very simple step forward what puts accountability on the businesses were making a nice any profit office as well as the clients to ensure the simply complying with local laws. if everybody was like misnomer we would not have the kind of housing affordable to crisis with this industry that we do. so, please, supervisor this is really low hanging fruit. they should've been and are legislation in the first place asking the businesses to take responsibility for only listing registered host is a very simple step. they should be accountable and frankly should be happy to show their corporate responsibility to protect her housing supply. thank you. >> supervisor peskin: thank you, sir. next speaker, please. >> testifier: i am deeper, san francisco tenants union and i was canvassing in district 5 last weekend and i had the chance to speak of a bunch of folks on the street and everyone wanted to know how the cities going to regulate air
7:24 pm
b&b's and other candidates in that district are going to have a feel about your b&b and other correctly short-term rentals generally. they told me their concerns were what is happening in their neighborhood. i told him i'd see the same thing in my neighborhood in district 9. the neighbors are being replaced by forests. were experiencing is a community hollowing out and when that happens is not a community anymore. i do respect the need of six income folks lovely folks people that cannot use computers but i want to point out the number those people are tenants they have-the kind of burden that are tenants face and pushed out when there's increased pressures to find new housing are so much worse for the elderly for the fixed income for the folks who can't use computers. i also want to point out that there is, while i feel for some of the concerns of the host, i don't believe
7:25 pm
that the issues that were raised is in the legislation before you today. this is really just about holding air b&b itself accountable they're not here right now to tell you why you should not pass this legislation it that's because there's no good reason. thank you. >> supervisor peskin: thank you. next speaker, please. >> testifier: very concerned about the short-term rental. person might name is tony what was and i represent senior disability action. i'm very concerned about this business model short-term rentals how to impacted up to the degree it impacted seniors in particular have lost homes because of speculators that have taken entire buildings of the market to pursue air b&b. and other short-term platforms and other short-term online platforms.
7:26 pm
you know, the numbers speak for themselves. i think something like 7000 unregistered hosts. it seems to me a matter of wanting to have your path and eat it too. we are cannibalizing a lot of housing stock in san francisco i would liken this to what i call homicide we take somebody's home, degree of senior that's been there for many many years and they get evicted. they end up house less than we've seen at least in our organization, many horror stories seniors would've ended up homeless or in substandard housing and that comes with many many ramifications. so, i would've strongly suggest or strongly support the legislation that is before you today. thank you. >> supervisor peskin: thank you, tony. next speaker, please.
7:27 pm
>> testifier: thank you mr. chairman and thank you board of supervisors for letting us all speak today in favor of the legislation to have regulation and corporate responsibility requirements for those large companies that are in fact making money from short-term rentals. i want to address an issue my name is mark bruno-i apologize i work with [inaudible] in north beach and have done for 15 years although not speaking on behalf of the society, we do is work with the poor and homeless and many those who come to our society for help people have in fact lost their places, the rentals, because of short-term rentals. i want to address a slightly different issue that's very specific to our neighborhood in one incident. at 525, 535 -street which the city itself is determined-i've no letters from short term rental office-city has determined that this is an illegal short-term rental of five unit building.
7:28 pm
it's never been properly registered. so what on november 13, up with this. you can show this to everybody on the screen, we had a fire on the building and we had a fire because it turns out,-is a better-you can see the date and incident number infected 10 copies to leave with a bottle board of supervisors with all the fire people came out men and women that we had today as taxpayers because this area the building short-term rental being denied proper permits, number one to do the work in the top of the building which i could see from two blocks away have started the fire. well, somebody had been living in the building where the tenants or residents, anybody living next-door who own their own property, it wouldn't much care about a fire on the roof of the building was nobody to care because i'm a particular date nobody was there. you can see in this last display here, to do this work is in fact three days later and
7:29 pm
three days later. would've cost of fire and a lot of damage to the neighborhood had in fact somebody, me in this case just by coincidence not seen this fire. the point is when you don't have people living in building took about the neighborhood you are inviting is unsafe, on habitable and inhumane ways of affecting the neighborhood. so i think were doing more than asking them to pay their fair share as ruskin to be good neighbors and i appreciate you doing that supervisor peskin. thank u so much >> supervisor peskin: i do, sir and just by way of background because i know that building. the famous [inaudible] in what beach, actually was being advertised on a different platform not air b&b but was we should remember there are other hosting platforms and that one actually come after doing some research was not listed on your b&b. was listed on a different site. >> testifier: >> supervisor peskin: ms. lederman and after the next speaker, [calling names]
7:30 pm
>> testifier: thank you. good morning supervisors. my name is lori lederman resident of the inner sunset. i urge you to support this legislation. the galatian without enforcement is meaningless without the required tools enforcement is ineffective. the evidence is in. according to the city's own office of short-term rentals only 75% of hosts are registered. the opposite attributes this in large part to a substantial number of hosts were not eligible to operate short-term rentals under the law. since their inception, the short-term rental behemoths and many of the hosts have ignored existing law and mrs. accountability. so it's pretty clear opposition to this legislation only serves to protect the legal short-term rentals to generate you profits for the platform. against urban environment cannot be a free-for-all where corporations foster and egos of individual
7:31 pm
time and that breaks down the social conjugate we've traffic and parking laws. we have rules and regulations for small businesses. violations are subject to fines. this is not a new concept. excepting short-term rentals from enforceable rules is a slap in the face to every small business in the city, a slap in the face to every neighborhood has de facto been rezoned commercial for short-term rentals and important, most important, is problematic motivator to continue converting housing stock to short-term rentals. i like to note, the speakers here today were posted this legislation are all registered house. proven the operation of the city office of short-term rentals is necessary, but it's a separate issue from this legislation not impaired by this legislation. this legislation is in the public interest among corporations great facts on the ground recruiting stakeholders with a personal best interest then become lobbyists for corporations does not make good public policy. your job is to make good public policy could
7:32 pm
please, support this simple by the legislation. thank you. >> supervisor peskin: think. next speaker, please. >> testifier: good morning, supervise. minus dennis must cozy night to live in the inner sunset. this reminds me of the banks that were too big to fail. we have air b&b and other sort of too big to fail to but i think we have to look at is when the corporations like this are challenged to change the subject. today, a lot of the discussion was about the details of the client application process and i understand if that's all accurate, then it needs to be improved, but the real issue is, it's fantasy to imagine that for-profit corporations, whether it's air b&b or have is the chief motive responsibility to the communities they suck money from. that is just unreal. i think we should just look at it correctly. the government, our government, has
7:33 pm
responsibility to all of the various people in its jurisdiction. 12 businesses. your b&b has responsibility to itself. to its cheat investors. to expect them to behave in a way that corresponds to the needs of the people address the fact that they're impacting the housing situation negatively is unrealistic. i think it's all responsibility and you've taken it up in this legislation that the government is close to take care of establishing these regulations that should've been done a year and half ago, and the message is in, and now we know that in fact the corporations will not take care of this responsibility by themselves. so, i strongly encourage all of you to pass this on to the full board with a strong positive recommendation. thank you. >> supervisor peskin: thank you, sir. next speaker, please.
7:34 pm
>> testifier: good morning. it's good to be had. i know it's a very different attitude in this room from last year. at these hearings. my name is kathy lipscomb among the board of senior and disability action we are very grateful to supervisors peskin and campos who persistently push this kind of legislation, which is so drastically needed. this industry has definitely negatively impacted the rental market. a report to supervisor campos dated 5-13-15: evictions in major neighborhoods reveals a correlation between elections and neighborhoods. examples: the intermission, the numbers of commercial hosts were 315. the numbers of deductions, 323. pretty close. he got very, 193 hosts, to 12 evictions. then,
7:35 pm
there's a scandal of the sro, the poorest people being pushed out for short-term rentals. citizens were told last year, justin a lot time to work it just give a lot time to work. we have. we have. the short-term rental office now seems to throw up its hands upon admitting as many as 8000 people have not registered. what does this mean for city taxes? senior disability action strongly supports the registration process in hopes that the numbers of days that people post is closely monitored. host must have a valid number to get on a platform and were this world really fair, those the liquid once would have to pay some retroactive fines. also, i agree that the registration process must be simplified. too many people have found fault with it. no excuses. thanks again for your hard work is very important issue. the world is watching us. the custom thank you. before the next speaker i want to say that
7:36 pm
resident breed needs to leave so i want to afford her a moment to make some comments in an supervisor campos were take her place as a member of the committee. supervisor breed >> president breed: thank you. i want to just a couple words because i do appreciate a lot of the folks who've come out and express concern, not just about the legislation but the process. i just wanted to add a couple of things. number one, i've heard time and time again that the process is problematic. i do think that, especially because many of the people that i've interacted with use their bedrooms for your b&b purposes seven seniors we do have challenges with computers, and i want to make sure that this process is fair. we talk about accessibility. we go out of our way as a city to provide different languages on our ballots and to do other things to make sure that people feel included and are able to
7:37 pm
use our systems and processes fairly, and so i do think that we have got to do a better job with the process and make the process work. but i do think that overall, we do need to make sure that there is accountability. i think this is really a simple fix to that accountability. the situation of the landlord's tenant is illegally renting out an air b&b , renting out a unit, is a prime example of why registration is so important. because, if you are tenant you have to get permission from your landlord. clearly, this system is rogan and we have to do a better job of regulating it. getting folks who are breaking the law with this particular platform should be done in such a way like getting
7:38 pm
a parking. as soon as the meter is about to expire, you know here comes the meter maid. giving you a ticket it is consequences. if you don't feed the meter. we need to make sure that we have consequences for people who are not following the law. this is really, i think, a first step. i know there's more work to be done with this platform, and i want to commend kevin god for the work he has done with trying to crack down on people were taking entire units aftermarket and using them for the sole purpose of short-term rentals and that should not be happening in our neighborhoods. but i also empathize and support many of the folks in the city who use this is extra income. if you are wealthy you probably wouldn't even bother with this platform, but then again, you do also have individuals were using this as a way to just, basically, exist
7:39 pm
and have a business for this particular purpose and it should not be the case either. i want us to strike the bounds. i don't think this legislation is unreasonable and i think that i'm definitely just to be clear, i will be supporting the legislation and i will be working with many of my home shares with concerns about this , especially about the process. working to try to make the process work, especially, especially, for senior population. so i just want to say that this is not the first time that we've looked at legislation and brought it back to the board and made a fix to make it better legislation. we may be before the board there may be additional legislation because i feel strongly that we have got to have a stronger system in place that goes after people who have entire units off the market for this purpose. that is definitely a
7:40 pm
huge problem in the city and we know this doesn't necessarily address it and we have more work to do, but this is definitely a step in the right direction. i don't think it's so overwhelming that it should be opposed because it's just, i think, common sense. i appreciated supervisor campos and supervisor peskin's leadership on this particular issue because it does make sense. i do want to express that one of the things i'm also concerned about your there are hosting platforms where this would be required. i want to make sure that there's other platforms that are not necessarily short-term rental type platforms that the door can be open for abuse on those platforms as well, so i think accountability across the board is going to be important and we're bringing in now a decent
7:41 pm
amount of revenue because of this. we should definitely work with kevin guy and his office to make sure we have adequate resources to get this process to work for people but more poorly, adequate resources to make sure enforcement is done on a regular basis. so, with that, thank you again i apologize but i do have to leave. as supervisor campos we taken my place in 042 watching this hearing later and getting more feedback from members of the public about this. so, thank you. >> supervisor peskin: thank you mdm. pres. thank you for your patience. >> testifier: hi. my name is alicia sandoval. the were for housing rights committee. i see many changes in the mid-mission district. i remember there being not a lot of b&b but as i see, right now we are facing a housing crisis. but i also
7:42 pm
want to bring out to you what happens when families, when seniors, are being displaced by fires by the actions. it's not fair. then sleeping in cars, being homeless,. that's a crisis. to me, that's a crisis. we need to help. we need help. these families committee seniors need help. they have been displaced. i see this legislation as a way to build in accountability to a whole structure, to assist them. making sure that the landlord, the owners from buildings are not even take people, and i know it's happening. it's imperative there be a system of structure that they will be
7:43 pm
accountable. so, it makes it a little hardeto register. but imagine all the people who are homeless, all the people are being displaced. that is much harder to deal with. >> testifier: >> supervisor peskin: thank you. next speaker, please. >> testifier: my name is in the choir and i live in north beach.i too would like to thank supervisor campos and supervisor peskin for taking leadership in this very important legislation. i think many of the speakers before me
7:44 pm
express very eloquently why it's needed. particularly, the lady with a long white hair and a gentleman next to her. so i won't take my whole 2 min. i been following error b&bs path for number of years. i don't think they know what corporate responsibility is all about. i don't think $1000 a day fine will then much of their budget says they were able to spend $8.9 million to defeat proposition f. thank you. >> supervisor peskin: thank you. next speaker, please. >> testifier: hi. my name is peggy grasso. i'm in support of the legislation could overcome i don't feel-sorry. can you
7:45 pm
coming out >> supervisor peskin: yes, perfect. >> testifier: name is peggy gosselin 11 hazed out. i support the legislation being proposed but as it stands now i think it's a start. many people mentioned about the current enforcement and its lack of backbone or efforts run as a effort. but meet or responsibility. we have a situation where i live on our street that the people have incited off of it are being beaded seized intermediate debate open their own platform. they continue to do so. when you contact the office of short-term rentals, not just myself but other neighbors, we were told is not a lot we can do about it. regardless of the platform, is a corporate responsibility by air b&b and the platforms, but also personal responsibility of the people doing the writing and violating the law. so, if legislation the sinking ship
7:46 pm
departed press on, but that's going anywhere they can. in my worst-case scenario, think about this, you've always platforms that thing up independently in all these different methods that spring up to circumvent the law as it exists right now. what we need for example, this person down the street from us has been cited for illegal rental and continues to rent on other platforms. you know, told by the citizens is of mcadoo then what's the point of enforcement at all? or the law? it makes no sense at all. >> supervisor peskin: thank you. after the other speaker cards i've called, [calling names] >> testifier: good morning. my name is lauren kinsey with the internet association. the internet association is a nonprofit trade organization
7:47 pm
the workers of the world's leading internet companies and its community of users. i and 40 local companies welcomed opportunity to share opposition to the local providers. were draft is quasi-local foresman ages. every: platform companies liable for user generated content contravenes established federal law. specifically, section 230 of the communications decency act of 1996. section 30 clarifies that an internet service is not a publisher when facilitating speech for third-party. section 230 provides legal foundation for interactive internet. courts have interpreted this provision broadly t-bar intermediary liability for user generated content. this clear protection is enabled internet
7:48 pm
expose the program provides the necessary legal certainty for scores of legal services. including blogs, forums, consumer review sites, social media and others. by allowing individuals with a spare room to connect with people in search of a place to save time-sharing platforms are another prime example where the free flow of user generated content has led to empower individuals and widespread economic growth. i urge members to work with the company to find a better path to an agreeable solution. don't let this proposal move forward minutes were together on a solution. thank you so much >> supervisor peskin: thank you. next speaker, please. >> testifier: i am a volunteer counselor from the san francisco tennessee unit did i been there actually for 12 years. i'm also district 5 voter. before i understood how devastating the effects of air b&b are, actually using air b&b. i got bitten by bedbugs and i had only stayed in to host place. i sing you the were bedbugs because they were
7:49 pm
[inaudible] three in a row i've got my own sheets. i contacted the hosted one with no information about the possibility of bedbugs in a highly transit home in the other one who flatly denied the possibility that they have any bedbugs so i contacted air b&b clearly showed that they would be providing the support whatsoever in this situation. i think that we definitely need to have some regulations to protect the consumer. those are actually businesses and so this is part of what we should be doing for businesses. i would also read a short letter from a couple of registered those were unable to make it here today earnings are lead and tara lockhart from the trail hill. they say here, we've used area media for own since 2011 and
7:50 pm
hosted guests from all over the world since may of 2013. upon being informed that we knew to register our home we did so did although, the process of getting our business license in short-term rental permit was long and inefficient. however, despite these inconveniences, we think it's important that short-term rentals are regulated so that any bad actors are weeded out and are held to the same standard. we are dismayed and frustrated that this law is not being enforced equally for all who host another platform exit tidy sum will not step up to take some other spots ability for regulating the economy the law. thank you. >> supervisor peskin: thank you. next speaker, please. >> testifier: thank you supervisor randy shaw director of the hamilton, we've been dealing with this issue for a couple years now and supervisor campos has picked up. we have
7:51 pm
an enforcement problem and october of 2014 supervisors kim and breed cosponsored a nonprofit standing amendment i would give groups like ours the same right to directly sue house were not following the law did it's been remarkably successful in hotel conversion and payment stopping illegal hotel conversions we can do the same thing probably 70% of the apartments of what happened was, after that legislation was sponsored it had to go to planning. it passed planning could do was some other controversial issues. this was a 6-1 vote in favor of a good a year ago when it got to the full board, all kinds of hijinks occurred in all the reforms were defeated. which is insane. because even if we pass this legislation, the losses can be filed in the federal communication that might be held
7:52 pm
but we have nonprofit standing which is already drafted. it's ready to go. maybe if you added to this current legislation passed next week i don't even know it's on a hearing on. other processes but started and in through planning. it seems to been lost amidst these other issues and as i say, even if we have registered everyone has to register, if someone is violating the law, who is going to enforce it? the city attorney can't do it alone. so, please consider adding it again i can send you the copy of the legislation of you need to. thank you. >> supervisor peskin: thank you, mr. shaw. next speaker, please. and after [calling names] >> testifier: good morning. jim lazarus san francisco chamber of commerce. taking homes and units off the market for short-term rentals is illegal. it's illegal today. it was illegal five years ago. the city's planning department, building inspection department, rent control offices need to
7:53 pm
use the tools they already have to enforce zoning laws in san francisco to attain our housing stock it that's not what is before you today. what is before you today is an effort to pass through a variety of private businesses located, who knows where, through the worldwide internet, and obligation to police and edit content on the internet. this would be it as if this board of supervisors tried to enforce its business licensing laws by having the examiner call everybody that's advertised in here with a 650 number for a roofing contractor, a painting contractor, a hauling company, and assure they had eight san francisco business license before the examiner could take the ad. that's not how it works.
7:54 pm
that is and how it works under federal law or the first amendment. but the city does is that the tax collector office calls 650-589-2975 in san matteo county to see how much business they're doing in san francisco and whether they have a license. do not pass the obligation away from where it belongs within the enforcement of all these laws in san francisco. what you have heard today is a failure of enforcement by the city manager not be put on the backs of independent companies that are located here and actually throughout the world. they given much >> supervisor peskin: thank you. next speaker, please. >> testifier: to echo the previous speaker, to ask a platform to do what you're asking and if they did everyone
7:55 pm
would move. but we need to-to echo him again, we do need enforcement that's where i think the city needs to be enforcing and helping all these cases of eviction because that should not be happening. i'm a registered house. i hold a business license. i filed all my forms should i renew my business. i did everything i need to. i even paid the city back tax. i would love the city to use that to help ease addiction cases and not hopefully, reasonably think that passing this legislation will change or help these problems are going on. >> supervisor peskin: thank you. next speaker, please. >> testifier: i'm with the housing rights committee we are supporting this legislation. the reality is, air b&b is making our housing crisis worse. it's taking units off in rooms off the market at a time when we desperately need every
7:56 pm
single one of these units. to landlords and speculators using the directions to clear out old buildings to rent them as air b&b. my own landlord came to me at one point and told me a story where she had rented a place to someone not realizing that the woman was a real door and the woman never moved in. she was renting the place out as air b&b. was only when a neighbor informed my landlady that you realize that the woman was not even living there. three: sros, people talked about the. sros used to be the housing for the poorest people among us. the speedway homeless people got off the streets. but what is happening. we know that units, rooms, and sros are being converted to air b&b and so what does that mean? it means most people are not getting off the street. i was below the costly gupta street on auditing of the street which
7:57 pm
is only making our homeless problem worse. for neighborhoods are justification. i know people talked about that rather than the castro and the fact that air b&b is intruding factor to the fact that the castro is becoming less lgbt. it's been de-gay and is being air b&b is one of the villains in all that. so, pass this law. give the city a tool to crack down on the speculators and the other people were exploiting these platforms to evict long-term tenants and to make scads and scads of money and make our housing crisis even worse than it is. thank you. >> supervisor peskin: thank you, tommy. next speaker, please. >> testifier: eileen bogan central park resident. here in support of the amendment as they put more teeth into the ordinance. i urge the committee to move this item forward the recommendation. thanks. >> supervisor peskin: thank you. is fred here? i called
7:58 pm
her name. [calling names]. mr. bolan. >> testifier: good morning members of the board. by ms. bruce bolan. i live in district 8. near a number of air b&b or other rental writing sometimes tens of thousands dollars a month and i don't know whether their legal register or not. to support strongly support this commonsense change to the law. listening to the discussion today it seems to be obvious with the legislation proposes is reasonable and really nothing new. it's required registration provisions activities that affect the public. i asked myself, have i ever felt burdened by the arbiter thought a government form? the answer is, yes. have i ever felt that my temporary inconvenience overrides
7:59 pm
legitimate public or government interest and legitimate public oversight, or increased corporate responsibility? well, no. so thank you for bring this legislation forget x-ray board addition to the law. thanks. >> supervisor peskin: thank you, sir. next speaker, please. >> testifier: i get my name is henrietta kurier i apologize for my poor penmanship. my girlfriend complains about all the time. >> supervisor peskin: sorry for butchering yearning. >> testifier: no problem. i would like to support the legislation. i think it's a quite a no-brainer in these arguments about how air b&b is operating as a nice the engine on the subject to such regulation is just a bunch of who we. comparing, regulating short-term rentals with a newspaper taking out newspaper ads you can compare these think
8:00 pm
it's new world and old worlds. we need new approaches to make new world technology work in today's environment. the biggest problem, you for this over and over again-the short-term rentals are causing less housing. it trickles downhill in your seeing more homeless people. that's really the big problem. all these homeless people. so, yay for the legislation. it's a start and i look forward to seeing the next pieces of legislation to make registration easier. >> supervisor peskin: thank you. after that, [calling names] >> testifier: good morning, supervisor name is charlie work on government affairs for the san francisco apartment association. thank you for hearing us today. we represent about 3000 property owners from the immense about 70,000 rent-controlled apartments citywide. we ask that you
8:01 pm
support the legislation here before you today and also the full board of supervisors. the main thing the legislation does is all the platforms themselves accountable for registration. the same weight hurts is allowed to make sure the card about a register with the dmv. we believe this to be the smartest, easiest and effective way of cracking down on the bad actors were both landlords and tenants while allowing home sharing to continue in the framework of the existing law. the requirement told by forms and honorable to only list registered units was a primary recommendation of the planning department staff last year. the planning commissioner has called it the linchpin of successful enforcement. successful enforcement is really important. with nobody really registering no to incentive to register even the office of short-term rentals has stated there's no real way to go after some of the worst actors. this is extremely problematic because the underlying policy goals of the legislation that it make sense to allow short-term rentals on a limited basis, that people should only be able to conduct short-term rentals in the home in which they live, that they must allow and the building on
8:02 pm
the phone owner before starting they should not be able to do with no subletting clause, all the enforcement mechanisms you built it over the past three years into 107 on the enforcement on the registration prospect without registration, none of these other mechanisms and checks and balances are able to start. we've heard loud and clear from our membership that some of them will opt out of the rent-controlled ordinance without proper enforcement. what that means is, do not offer their tenants to people who live and work it will without enforcement of those motives to enforcement of the water there tends to short-term rental guests to air b&b services. we ask you for your support today and a couple board and i think of your time. >> supervisor peskin: thank you. next speaker, please. >> testifier: gentlemen my name is dale carlson here for share better san francisco. i would talk about the legal indemnification that air b&b claims it has for many
8:03 pm
municipal regulation. we do not allow walgreens to sell prescription drugs without a prescription. we don't allow safely to sell alcohol or tobacco two young adults who can prove they are over 21. we don't let hertz rent vehicles to unlicensed drivers. we don't allow uber to put unlicensed drivers in unregistered vehicles on its platform. you talk about the same sort of standard applying to hosting platforms. you can't list it. you can't rent it. you can't ever ties it does not properly registered with the city. we are not talking about passively user generated content. not talking about a company that is protected by the communications decency act because unlike yelp or sf gate using his posting inflammatory and incendiary comments. were top-notch hosting five forms that are aggressively pursuing and
8:04 pm
recruiting you host. my wife and i received an invitation from b rbl. rent your home for $5000 a week during outside lands. we received a notice through next-door, come to a seminar at air dnd headquarters and learn how to become a host. and how to get around san francisco regulations. and how to get around your landlord. there is no indemnification for aiding and abetting, and that's what he sows in platforms are doing. they are aiding and abetting illegal activity. the >> supervisor campos: >> supervisor peskin: legislation will make that stop and i urge you to pass the legislation. the best and thank you and thank you for your work. if i'm not called your name will call a few more speaker cards. [calling names]
8:05 pm
>> testifier: my name is ian winkler and other than the district 6 resident like most when he is mean my boyfriend were content to just kind of party or the world burns until friday and got a notice from our landlord saying that they're trying to do back to reduction of him and put in an electronic key card system are 46 unit building. ostensibly, to try to do more interview be stuff i want to remind you guys that you are the only line between the millionaires and billionaires and us. you don't stand up for us, nobody else will. this is those to be a democracy. never got involved before. but now i feel committed to be a people for progressive politics. i stood in line for five hours on monday to go see bernie sanders. i volunteered for jane kim for two years on tuesday. this morning i'm here and this evening i'm been a volunteer
8:06 pm
for bernie sanders again. we are scared of orlando. if you give them an inch of they come out. of those out on the street. we live in the only department in san francisco that we can afford. i ask you to remember the average people when you make these decisions. please, support this resolution. thank you. >> supervisor peskin: thank you. ms. >> supervisor cohen: >> testifier: good morning. still morning. >> testifier: get market is still one. i'm patina >> i'm in support of the legislation it is been money or other speakers that have already spoken in support of it who said what i would like to say more eloquently than i would be able to say so all i can say is, i'm glad that it's been put for. i hope that has the full support of the board of supervisors. thank you. >> supervisor peskin: thank you ms. cohen. there's fred. >> testifier: [inaudible] i'm
8:07 pm
here to support the bill. our organization does. as you know, they're still thousands of apartments on your b&b. if i that is the website and what people sell drugs illegal prostitution, whatever my more police on those things were, the website would get shut down and we be held liable somehow with letting people list their apartments. illegally breaking the law and what were seeing is tons of apartments that had been rented out to a not been able to soit's really
8:08 pm
disturbing and you need to put a stop to. thank you all for taking this up. >> supervisor peskin: thank you. next speaker, please. >> testifier: i could on teresa and perry all of those was housing program and we are here to support this legislation. it's been long overdue. the should of been in the legislation from the very beginning. our number a year ago when there are questions about enforcement it seems to be unenforceable. so, it should've been done in the first place. also, there are programs, our office in the their people seen in our program looking for affordable housing live in sros and saying that their hotels are being rented for air b&b. also, along
8:09 pm
that the much along that sixth street, you can see some forests coming out of srl like hotels and you're wondering what is going, what happened while people who just used to live there. so this legislation is just pretty much what much enforcement into the legislation but should of been happening before and the fact that will go to small site acquisition. it's a great idea. >> supervisor peskin: thank you. next speaker, please. >> file name is robert-i live in apartment building in the marina.after a lot of denials,
8:10 pm
buying her application on your bmd, i was able to find out through somebody in tampa florida at area be issued rented the unit out in 2015 and made $43,000 on her unit. when we caught her this year she had made $12,000. a couple things that i support the legislation, one of the things is ridiculous if you. give 30 days notice is absolutely stated. something like this. because people will go up to the 29th day, collect the money, and then hold tight for a while and go back to. also the taxes of defendant i talk to the tax collector
8:11 pm
people. what happens is the legitimate people the money people for my unit the money goes in. they match up with the legitimate people could they have the other money is from the people that are not registered. they cash the check. there's no incentive. the got their money this nonsense and do anything and i do not understand why somebody, does not check out all the addresses that coming with this tax money. involved without. you'll find out who the legal people are. i support the legislation and i firmly believe that this legislation will hopefully get people working towards getting of city back to work. the past can think. i welcome all the schoolkids who just joined us. good morning, everybody. >> good morning. >> supervisor peskin: >> testifier: i do not know they want to speak. my name is marie swanson. i don't think i
8:12 pm
can really add on to what everybody is saying, but i think that since we know the objections equal new care b&b that we should just stop letting people rent entire traces out. all the new constructions that's not an air bmd because it's too expensive so what are they doing? they're demolishing housing stock. it's all existing housing that's turning into air b&b. i just think that's wrong. housing is for people. i'd also like to add that when out rosenthal came up and spoke, she is a lobbyist for air b&b. so, so much for the word transparency. really, i don't
8:13 pm
think-i think the great start, but i don't think it's going to go far enough. then, i read how much air b&b donated to supervisors. i'm not optimistic on this vote for the full board because he clearly knows how to buy his vote. thank you. good luck. >> supervisor peskin: thank you. after the next speaker, [calling names] >> testifier: actually stepped up in the wrong one. i'm a reader comment. is that okay. >> supervisor peskin: that's okay >> testifier: my name is maria, in and out in the san francisco resident for over 20 years in attendance. i'm here to speak in support of the legislation for the short-term rentals. i've seen in the past several years greed take over the city. the bar displaced it is just wrong when seniors of becoming homeless and living on the streets where i see things about an 80-year-old woman
8:14 pm
that's been affected. rents are so high, they are completely out of control, even for people making a good income. it's challenging could be challenging to find a place to live. it's an epidemic gets not only i think the problem is it's not only in san francisco that these companies are doing this. this is an international epidemic. this become a problem around the world in big cities where they're causing displacement and it's time for them to be corporate responsible and if they're not a do it in the city needs to do it for them to all these companies accountable and we need to san francisco represent is a letter know the cities not for sale. i've never been afraid to be evicted before now. i'm a good tenant, would've my landlord decides to sell the place and become an air b&b or whatever platform. how would i find a place to live? it so difficult to find a place to live these days. so,
8:15 pm
we just need you to stand up for the people that san francisco not the wealthy and not the corporations but for the people so we can stay here and have the city be diverse, culturally, economically, thank you. be peskin thank you. next speaker, please. >> testifier: hello. i'm julianna arras. i just want to say my husband and i are one of the first 100 people pose the register last year with the new law and i want to say, since then, from day one that other departments do not know where the office was so the neighboring offices did not know where the office was to register. since then, we have got duplicate notices and threatening notices about taxes and inventories, about mention everything. i think that legislation is good, but if the
8:16 pm
city does not get together and having the department talk to each other and do actual planning it'll be totally inefficient. the other part i want to say is given my age that on the senior citizen and lived in the area in san francisco well i work in san francisco for 30 years, i lived in the city for 29 and the reason why was because in the 80s, it was impossible for professionals like myself and my husband,, myself as a social worker to buy property in san francisco at the time. i think to go only under a b&b and any other platform is hypocritical diving we should go after the academy of arts which are finally doing it and the investors, the chinese which in the article published in the new york times have the majority of their investment here in the city. we should prevent foreign investment to do that because we are the ones really causing the crisis market. it is not one single agency or one single corporation. thank you. >> supervisor peskin: >> testifier: hi my name is
8:17 pm
jane cohen am also host and the landlord in the city for many years. i registered onto the tedious process this woman is talked about and i'm going to the tax office. that but these notices i've not pass my taxes and i had good i think it is good that the city is i think people should be required to be registered and on the size. there's good in bad in this world and a lot of seniors and others get caught in the process crossroads of some these bad actors. but there are those of us that have always operated within the law and the
8:18 pm
reason were all trying to keep our heads above water. that's why some of us, when we legally have vacancies have chosen to go this route. we are not targeting seniors. we are not targeting hispanics or anybody else. we are trying to get our own heads above water because of the restrictions of rent control. so i want to say to you they should require what is the listing number. i also think you need to clean up your own house before you can ask others to. >> supervisor peskin: thanks. >> testifier: i want to dispense with this nonsense the short-term rental platforms are internet could there hotel
8:19 pm
commission marriott is the second largest hotel franchisor in san francisco after air dmv. if you go on marriott.com, you can rent from thousands of hotel operations around the world in the huge majority of them are neither owned or managed by the marriott corporation that's no different from what air b&b and the rpo do. holding these giant corporations accountable is common sense and as someone said before, a no-brainer. i do want to acknowledge supervisor breed and many commentators said that when he to go a lot further than this legislation. absolutely there's widespread violation of law because as the law was written as the planning department told the board of supervisors, when the two ordinance was that this is
8:20 pm
unenforceable. the city does not have the tools to enforce the law. we need to put our focus on that, but right now, this piece of legislation focusing on the corporations is where we need to start. i made resident of district 8. just my block alone there are six full-time whole units at your pmb operations there. they would be rent-controlled. they will be housing for people who need housing and san francisco said they're been rising full-time which i would estimate is $3500 a month. we can't compete with that on the rental market. we needed away the incentives in all these counties are accountable. the best and thank you. next speaker, please. any other members of the public >> supervisor peskin: thank you. next speaker, please. any other members of the public alike to testify these line up behind the specter. >> testifier: i'm a small
8:21 pm
business owner in san francisco and i went out on my own about a year and half ago and i am a host. and air b&b has allowed me to pursue my dreams of owning a small business because san francisco is such an expensive city to live in and to start a small business. i need to be able-it's challenging to start a small business in the first day. so i did register and the process takes time out of my schedule to go to city hall and the planning department and i think process just needs to be streamlined better so that it will allow people to register by the registration process. i just feel like they've help me and it will does help small business owners, people who have a dream they want to
8:22 pm
pursue it so that's my take on it. >> supervisor peskin: thank you. next speaker, please. >> testifier:i'm a little noticed. my name is silly smith. i been here for many times already. i live a building with six units. i'm going to through investment she dated five things. first she offered the market then she accused me of violations. then she made me a settlement, then the today's gimme a settlement she gamy [inaudible] that's not the problem. the problem is that. she gives three people [inaudible] and the other ones are coming in and out so i think those are the issues
8:23 pm
today. so, please do some and i hope when my broken images can understand. the past can we understand this on. >> testifier: i been here so may times. mussina does it. i went up and down hills in every type of weather. on the disabled i don't get help from nobody. i'm going to share this with you guys. i sent all my money writing to all of you guys writing to jerry brown, obama, name it. i was so desperate federal to the pope, who answered me he's the only one that answered me. he gimme his blessing and good luck for me. [inaudible]
8:24 pm
>> supervisor peskin: next speaker, please. >> testifier: we've been fighting for for the housing and rigid license our reception in 1981. we supported many many projects for new affordable housing in san francisco over a number of years. but it's almost a futile effort when were losing a photo units at the same time. with this legislation does is give us a tool to try to fix that perhaps the biggest problem of a short-term rental may not the only one but the biggest. which is the wholesale loss of rental units to the new hotel
8:25 pm
industry. thomas like we have a forest fire going on to recall the fire department but meanwhile, their arsonists are still out there setting fires. it's almost pointless. we can do something to stop the cannibalization of our existing rental stock all these efforts are almost totally futile. i plot this legislation and i hope we move towards stopping once again the wholesale loss of portable rental units in san francisco. thank you. >> supervisor peskin: thank you. thank you for your 35 years of service. >> testifier: good afternoon my name is stuart, born and raised stands san francisco that generated currently the founder of san francisco native source. when megan refers not to the coalition 1800s was a lot more room in san francisco. but for some, take up all that space. until we can appropriately and regulations to allow other people to live in the city during the urban migration in the 1990s and
8:26 pm
2000, we are going to displaced families living here for generations. i grew up in the city of one of most diverse cities in the united states and now it's when the least diverse cities. i hope we can come together to put in the appropriate regulations so that i can have other families for generations to continue to live in san francisco. thank you for your time and thank you for being you. >> supervisor peskin: thank you, subject seeing no other members of the public we will close public comments. thank you all for staying through this long hearing good i want to not only think supervisor campos and all the supporters on this legislation. i also want to point out that this legislation is very consistent with the recommendations that came from the city administrator and the opposite short-term rentals actually got in january in early january to
8:27 pm
the office of short-term rentals wrote a letter to brian chesky, ceo of air b&b, as was to other platforms craigslist, home away, brd oh, suggesting a number of of improvements, including that the websites have some sort process for acknowledging registration compliance. so, i want to say we are finally getting it to implement that here today, and i'm hopeful-this is an evolving area of law. this is not just happening in san francisco. it's happening in cities across the country and everybody is trying to figure their way to get the right regulatory system in place that on the one hand, allows people to make ends meet and on the other hand does not lead to the loss of thousands of units of affordable housing
8:28 pm
that are meant to be occupi residence of a vibrant city and a vibrant city. so, i think we are evolving this legislation here today and with that, i would like to turn it over to committee member campos and ask vice chairman yee if he has any comments. >> supervisor campos: i'll defer to supervisor tammy. >> supervisor peskin: supervisor yee the floor is yours >> supervisor yee: i would think a public for coming out and giving their comments today. it was very enlightening. some of the things i've heard before, but certainly stories like jennifer's and ms. lees and ms. müller race, from sunnyside,it's not unique. my eye this deceived many calls with some type stories.there seems to be some confusion from people that came today in terms ofthose who voice their
8:29 pm
opposition to the legislation in what it does and does not do. they did bring up some concerns. the office of short-term rentals can improve their system so people could actually get registered a little easier. this is a question that begs an answer for a future hearing. the penalty charge, again, as supervisor peskin noted, is certainly on the books already and letting the platforms know you're responsible as well as everyone else and was also confusion my think this was only for air b&b and it's for all the hosting platforms. so, given that, for me, i don't understand the opposition that
8:30 pm
much because it mainly i think this is so straightforward to me. it's peacefully asking our hosting platforms to work with us to stop the poor for a should of unregistered posts that are out there basically, doing a lot of damage to our rental stock, but also what am hearing for my district is that it's really changing the unique character of neighborhoods and what it's doing as this marlins was describing, and the sunnyside area. so, because of all this, i also agree with supervisor peskin that this is not the end of the legislation around this. this is evil in. we need to see what works and what doesn't work. what can be better for the city in general. it's less about the individuals
8:31 pm
and less about the platforms themselves. it's really about what is our city to be in the future. so, i will be supporting this legislation and i want to thank supervisor campos and peskin and mar and avalos for sponsoring this legislation is thank you for much >> supervisor peskin: thank you supervisor yee. let me just that, i've heard loud and clear and look forward to working with members of the board and mr. died in the short-term rental office about process improvement rotor to registration. before that loud and clear and thank you to those of you can put that message to us. then, relative to ms. halpern's situation, we should also examine the law to make sure that when a landlord has a tenant who is causing the violation that is accounted for
8:32 pm
in the legislation it seems to be a catch 22 the short-term rental has done something no other issue could do for the city. it has brought landlord's and tenant leaders together it but tenants union and the san francisco association together. this brought the hotel employees and restaurant employees local two together with hotel counsel so obviously, this is an issue that needs more addressing by that process will here today supervisor yee said this evolving area of law. no one has been down and were
8:33 pm
making the tweaks necessary to make and will continue so as we learn more about how this phenomenon partially works to make the process improvements relative to registration and the like. with that, supervisor campos >> supervisor campos: again come i want to thank my colleagues who are supporting this and i was proud to be working on this legislation with supervisor peskin and his staff. in also supervisor avalos and mar and thank supervisor yee for his comments and for his support as well as pres. breed. i do want to go back to the comments that we heard from a number of posts about improvement process a registration in the me say this, like supervisor peskin, i'm fully committed to doing whatever we can to improve that
8:34 pm
process and to that end, i remain open to any specific ideas, suggestions, people have to improve the registration. that said, the comments that i have heard from air b&b, the industry, have not focused on improving the experience of the hosts when it comes to registration. i actually think that the industry in air b&b particularly would be wise to focus its energy on back instead of what we have seen in the past, which is to oppose any effort to regulate and with that in mind, i want to say that i understand why your b&b and the industry spend the millions of dollars that it did
8:35 pm
on the opposition of proposition f. i supported proposition f i know there's many things in there that people could understandably raise issues with. i honestly -i'm scratching my head on why air b&b or the industry would have any problem with this piece of legislation. i actually think that having been on the board of supervisors for now, most eight years, i still don't understand why they would take the time and spend the energy to post something that is so commonsensical, so modest , and what is interesting about the comments of people came here just to speak against this piece of legislation is how the comments actually focused on
8:36 pm
general issues of concern, but not the specifics of this legislation because this legislation really doesn't do any of the things that people who will oppose it claim it does. i actually think that the more people find out about how modest proposal this is the more i think the opposition will just go away. with that in mind, i encourage your b&b, i encourage the industry, to join our efforts to come on board because this is one of those things that is such a no-brainer , you know. enforcing the most basic fundamental element of regulation, which is the registration system, endorsing that, i mean that is a given. that should be a no-brainer and it's one of those things that i
8:37 pm
hope that your b&b and the industry sees the light just like i think they eventually saw the light on the simplicity and the basic nature doing something like paying your taxes. this is up there with paying your taxes. this is something that is sort of-this should not be a debatable issue. so that's the hope that i have,, you know, and i think that as this goes forward to the board of supervisors, i think that there's an opportunity for the city family, the elective family as the mayor calls it, to come together on something that's just simple and just basic. so, with that for action is taken or asked the committee to please adopt the amended version i stipulate. >> supervisor peskin: i'll take that as a motion by supervisor campos. to adopt the amendment that are before. can
8:38 pm
we do that without objection? the amendment are adopted >>[gavel] >> supervisor peskin: i just want to thank carolyn guseman and supervisor campos's office for her work on this in also a shutout dale carlson for his stewardship of this issue over now the last couple of years. with that, colleagues, can we send this to the full board as amended with recommendation without objection, that will be-this is as a committee report or not is a committee report-as a committee report >>[gavel] >> supervisor campos: if we can actually excuse pres. breed >> supervisor peskin: a motion to excuse pres. breed from that vote. okay. smooth without objection pres. breed is excused and without objection was in the item as amended with recommendation as a committee
8:39 pm
report for a hearing on tuesday, june 7 at the board of supervisors. thank you all for your testimony. >>[gavel] >> supervisor peskin: mdm. clerk, please read the next item >> clerk: item number four hearing on the implementation of the legacy business registry and historic reservation grants. the peskin thank you. i'll give a moment for folks to clear out. >> supervisor peskin: thank you. alter the moment for folks to clear out.thank you. two weeks ago, nvidia item, yes, you did. two weeks ago we held a hearing on the status of the legacy business per gram and we heard from the director of
8:40 pm
the office of the economic and workforce development, todd with oh, as was his deputy director joachim torres, in the cities pledge director, ms. melissa whitehouse and i think them for their participation and we were very pleased that the announcement was made that same day at about $2.5 million would be allocated over the next two years to advance and administer the legacy business registry and program. we continued the hearing to today to allow for further updates regarding the status of the nominations. it was represented to us within a week of the hearing we would have a conference of list of those properties were businesses that were nominated and today we are joined by the director of the office of small business, regina
8:41 pm
dick-andrew c in or think oewd and marian thompson, in particular, for working with my staff. last week, i received a memorandum from dick-tendency to cause a little bit concerned in either one of quibble about the 39 or 40 businesses but actually got the fact that supervisor campos's staff had done a survey just likely down the hallway and asking of the supervisors how many they nominated and indeed, we believe that about 54 businesses were nominated to. then, i have a series of questions both of the letter from last week which i responded to a letter earlier this week which mitch which ms. dick-injuries he responded to the relative to the status of a number of these projects many which have been nominated or submitted as much as five months ago. with that,
8:42 pm
colleagues, when we turn this over to ms. dick-in jersey. she is a presentation to us i guess this afternoon. >> staff: todd rufo. thanks for the opportunity to come out before you today. as you mentioned supervisor, when i was here two weeks ago, we stated that we would take to immediate action steps. the first was greater, the list of all nominated businesses and provide what the status is of each of those nominations to you within seven days. which were transmitted that through e-mail on may 26 and the second piece was to conduct all nominate businesses provide them a status update whether applications were at both need to be there five. today what we want to do is provide an overview of the steps taken over the last two weeks to talk
8:43 pm
to the details of the lists some numbers you were mentioning chairman peskin type for next up were really domestic at this point or turn it over to director dick-visit from the opposite small business. >> supervisor peskin: thank you. good afternoon. >> director: deductive. on the stand here since we have the powerpoint. so, i just first want to say good afternoon chairman peskin supervisor campos and supervisor yee. i apologize for not being able to attend the may 19 g ao meeting as a was out of town for a family vacation. i do want to acknowledge the challenges and to medications that your offices and businesses have had with our office and with me and while there has been legitimate events that have taken place, that resulted in these challenges from the registry properly being launched and i think it's important that we now look forward and move forward and significant
8:44 pm
movement has taken place since the may 19 meeting. i also want to thank you for your support for the legacy business program manager job position. with that, the job position has been posted and will be able to fill that position in the next-before the next fiscal year. i do want to thank the mayor's office, particularly melissa whitehead for working with you on the grant amount and to talk with oh, marian thompson, lisa begun, chlorine chan and joachim torres, were the last couple months with their assistance as well. so, immediately upon my return from vacation, i received the informal list of the 54 that you have spoken about supervisor peskin, and cross-reference that with what was my official list. so, there were businesses on that list
8:45 pm
that i had determine if we have not received official nominations for. my apologies. on how to work the powerpoint here. well, you have the powerpoint in front of you, so i will just walk through that. were talk through it i should say. so, following the g ao hearing, understanding there was some concern around the -hardly move it-so, following the gal hearing them understand it was the concern but the discrepancy in terms of what i had calculated has officially nominated and was on the list
8:46 pm
provided by supervisor campos's office, but with marian thompson to reach out to each of the supervisors offices to confirm those who i had determined was not officially had not been officially nominated, and to clarify,. so, since that time, we have worked with each of the supervisors offices. there were businesses that are not been officially nominated, and i do want to report that all that 54, all have now been deemed officially nominated to our-officially nominate to our office did we receive the written notification from the supervisors either via letter or confirmation in e-mail. >> supervisor peskin: what constitutes an official nominations? >> testifier: an official
8:47 pm
nomination is nomination in writing stating you are nominated nominate me the business for consideration for the historical legacy business registry. >> supervisor peskin: i don't be argumentative, but today is june 2, and on may second, my office e-mailed you relative, confirming that you are in receipt of a number of letters, all of which were attached to the e-mail nominating various businesses in district 3, including brownies hardware, the café trieste, swans oyster depot, pure 23 café, a whole slew of them did most of which show up on your letter of may
8:48 pm
26 as not having been formally nominated. so, how does that work. >> director: with them a second e-mail your first as i interpreted and ready e-mail, it was asking for a cross reference letters not that were officially sent versus the list. so, there were businesses listed in that may second e-mail where actually, we had not received the letter, and so my understanding was he was a cross reference of trying to get an assessment of letters that had been submitted for nomination and to verify whether letters had not been sent. so, for the follow-up memo that i provided you last week the mud in terms of that
8:49 pm
list, again, marian thompson had been reaching out to the various offices. so, at that particular point in time we still have businesses on the list that i had deemed not yet officially nominated. so, in terms of moving forward to today, within that additional week number since i've submitted the memo, and marianne's communication with the office we have now received official nominations for those businesses on the list. so, now everyone is classified as officially nominated. i'm hoping i make my software >> supervisor peskin: on the labor the point, but i'm just looking at a series of e-mails dating back to january 11.
8:50 pm
there are e-mails in every month nominating-these are all e-mails from-and this is just one supervisor. the vast majority of supervisors have nominated but to you, nominating various businesses and there's not a response to a single one of these e-mails until yesterday, june 1. so, i mean, it is my position that all of these businesses, and this is water under the bridge because were moving this forward in all these businesses were officially nominated over a month ago. they still, as of last week show as not having been officially nominate. let's move past that and figure out how were going to move forward to implementing this fairly and expeditiously. >> director: thank you. so,
8:51 pm
right now, i have a list of 63 businesses that of an officially nominated. 20 of those businesses have cemented an application excuse me. 20 those businesses have submitted an application. 43 of those businesses we are still waiting for the application to be submitted. of the 20 applications that have been submitted and this number has changed because of recent, well let me just-nine businesses nine applications are now being complete. i know in my memo and even a letter or e-mail from tim sly from the planning department, we have been working with the number seven, but a couple businesses that we've reached out to to provide some additional supplemental information for the application have turned it in, and so now
8:52 pm
we are up to the number nine. so there is 11 applications that need some additional information and average out to those applicants to provide that information. >> supervisor peskin: these are the ones that- >> director: in your list i provided you here, the very first page because these are one that they need additional information for hpc requirements? >> director: yes because can make that determination? mr. five? speed >> director: yes. and the feedback they viewed it back from the commissioners. so i've been working with them because you put in the board of poop so board of supervisors put in proposition j of the applications are preferred to hpc to provide some input to
8:53 pm
provide historical context and i think it's important that we have the hpc provide that for office of small business, we don't necessarily have the look and lens of history. so, i have been working with their office to make some refinements on what they're looking for and what they,, the hpc commission has determined they need to help them provide some, to provide the comments they would like to provide for the small business commission consideration in the final hearing for the legacy business application. >> supervisor peskin: sorry if this seems i'm confused that maybe i'm confused. am i incorrect in stating that the historic preservation commission has hereto for had
8:54 pm
none of these on their agenda we pick >> director: correct, officially. >> supervisor peskin: so, how -you stated that my question was these digital applications and make a determination. what agc has said is that they want interior and exterior photos to help them take a look at which
8:55 pm
is one of the criteria the physical attribute of the business. so, there are, while we have provided in the application instructions, list of supplemental documents to include within historical narrative, not all applications have submitted internal an extra no external photographs of the business. >> supervisor peskin: but this is getting kind of kafkaesque because either this application is nothing on medication that says that you have to submit photographs. so, i mean i would make up the rules as we go along? >> director: we are refining them doubt be refined on the application. going for. >> supervisor peskin: just seems patently unfair that after this many months may we look down here at businesses that were nominated in january and march and february and what have you that we are not changing the rules after people
8:56 pm
have complied with the rules as we set them forth on the application. supervisor campos >> supervisor campos: thank you mr. chairman. once again i would think supervisor peskin and his staff. as well as hilary rhoda, my chief of staff and my officer been working on this and i see the point supervisor peskin is making. i see the points that he makes in his letter. let me just sort of leave it this way. i feel-i am happy that there is now the kind of response that we were hoping to get from the mayor's office generally. i'm happy that you have, maryann thompson was involved and she's very capable. i think there's a lot
8:57 pm
of specific questions that remain. i'm not to get into the weeds. the only thing i would say is that there is hope and optimism, but there's so much catching up to do that i sort of feel like i want to come back to where we are in a month just to see how much progress can be made because i think that we are so far behind that i just think that it remains to be seen what is delivered and i would rather kind of do that and sort of give you the opportunity to make this right, to catch up on all the funds at the level that we have to catch up. what i would simply say,
8:58 pm
generally to the point that supervisor peskin is making, is that given that the city, on our end has been the problem am i think that we need to be flexible and we need to be as accommodating to these businesses are still need the letter and spirit of the law, but look, we are the ones, we collectively as the city that dropped the ball, and so, let's make it easier, not harder and where there is room for flexibility let's make our job harder, not the job of the small business or the historic preservation commission. >> director: correct. at seven reaching out to the businesses many of them, they have the pictures and i would just say that i think i reviewed the
8:59 pm
application instructions with historical preservation staff and so they are coming back with a request for revision and i think working with the fact that it is in proposition and juliet to have eight historic preservation review and for them to have on the legacy of the legacy business, their comments relationship to what they deem is important to make their comments on, i am respecting that and want to support them on that. so, i would happily come back in a month and provide information for you and we are making it a priority to get these 20 applications through the process , as marianne is reaching out to the additional 43 that are not yet submitted nominations,
9:00 pm
were making sure that were clearly communicating what the supplemental information to provide. so though we are not having it back and forth. >> supervisor peskin: so relative to the document you just omitted i just want to clarify one thing, which is economic china put words in your mouth, but on the second and third pages all of those are all nominated? >> director: all nominated >> supervisor peskin: okay. as compared to last week's letter, now everything has been- >> director: everything has been reconciled at the ditch additional actual nominations and other supervisors offices have provided. >> supervisor peskin: okay >> director: so there from that list, we have moved everybody on that list too officially nominated.
9:01 pm
>> supervisor peskin: supervisor yee speak >> supervisor yee: i have a question. in regards to the item-i don't know what page the number three committing to maintain this copy jurors or traditional features including craft and art forms, some photos might make sense in terms of physical features. but i am just curious at this point, it seems like hpc needs to look at the goal. appearances and see if it makes any sense. it's not about the physical aspect something like traditions and the type of food that might be serving, who's making those judgments? >> director:- >> supervisor yee: it says,
9:02 pm
or, here. so it's not like you have some special feature in the building. >> director: i think, if we talk about what say bars or restaurants that serve food, some elements-i can't specifically answer for the hpc in terms of one interior and est but we do encourage additional photos if there is a particularly: verye food that they can provide either menu or pictures of that and businesses have been-so i do a businesses that have submitted copies of their menus over a period of time to show, to demonstrate, their history and legacy and the conary foods they provide.
9:03 pm
we do have businesses cementing pictures of important people from san francisco's history or stars or sports people who have evening and attended visited their business. so there's different ways in which businesses are showing those different: gary craft we have-a visual history not everything old nero, but visual history over it period of time of their mural is one particular example. so, does that answer your question? >> supervisor yee: yes. i guess i'm a little concerned not knowing the legislation as well as i should, but this can be some things i think maybe hpc has no expertise and an
9:04 pm
unjust wondering if it is something like food, whether it's the addition of the menu or certain taste of the food, i mean, i grew up and it's been there forever in supervisor peskin's district eating friday's sandwiches and how deep-rooted that the sandwiches , the same salami that type of thing. that's what i'm asking. who makes the judgment whether or not this business would be a legacy business or not we. >> director: to clarify the hpc is providing that they do not make an affirmation whether it's deemed a legacy biscuit that's a small business commission's responsibility. so, my understanding is within proposition j within the referral to the store preservation commission is the
9:05 pm
historical preservation commission, i think, they are taking a look at beyond the building structure cultural legacy, cultural components of the city and so they have an understanding of some of our restaurants with different types of businesses about how they relate to those cultural identities and while i can't really speak to the specifics of their request for interior and next are your photos, that they will have to do what their input is to provide the mayor historical lens of san francisco some additional commentary and additional commentary that goes into the file of the registry
9:06 pm
to marketand implement those businesses. speak >> supervisor yee: thank you. >> director: so, any other additional questions? >> supervisor peskin: i feel a sense of urgency because three of the businesses that we have nominated having been dealt with timely might still exist. fargo market. gypsy rosalie. -these are businesses that are hanging on and so i don't want to keep repeating the story about the last five months, but we had given them leave earlier as intended by the proposition is adopted by the voters, they might still be here. i'm looking-i want you to finish your presentation but i'm looking at the timeline where
9:07 pm
really want is when are they going to get relief? i mean, as at least as to the 11 that are deemed to be nominated and applications complete, when can they get the grant that the voters said they can get? >> director: let me get through the presentation and then i will address those questions at the end because that involves the next steps. as i noted earlier, the position the legacy business program manager has been posted yesterday that yesterday was the end of the posting deadline. we will immediately be moving forward to doing the interviews and getting the positions hired. i have scheduled a training and we sending out an invitation after hearing your legislative aides to go through--we go through the registry application process with them and let them know the next steps with the
9:08 pm
program manager will be doing for them, just to clarify the confusion that has been out there. then, as todd mentioned, we established the generic legacy business e-mail address this is now something that multiple individuals have access to so we can keep on top of any questions from businesses , questions and submittals from businesses. i do think-i do want to take a moment to sort of talk about the registry process because the registry process is actually the first process before, that a business needs to go through, before the ability to apply for the grant program. within the application process, and why it may take time between your nomination and a business submitting an
9:09 pm
application is that the business needs to write their historical narrative as it relates to the three key categories of what you established in the ordinance. also, the other thing is, any application cover sheet, they are required to-excuse me-they are required to attest their current with all their san francisco taxes, business registrations, licenses and labor laws. so there could be a delay in the business if they're not current needing to take time to bring those things up to-to make them current. then, they also do need to sign , their sign all information they are providing this for
9:10 pm
public information. the next slide is just so that you can see the exact language that is in the application cover sheet, that they are checking off and attesting to. so, before getting into the next steps, i do want to make a note that while the intention was to have submittals of applications last friday, he used oracle preservation commission has asked for a delay in this and because their ability to be able to hear their first set of applications is now july 20 because they are not having their early july meeting. so, with the next step,