i think what's evident today is that the t.i.c. units and ownership is very unique to san francisco and therefore requires unique and brave decisions. i'm a single woman, i've lived here for 20 years, i bought my first home as a t.i.c., not because i was looking to flip a unit, not because i'm wealthy but because i worked very hard to do what seemed practical and smart. i can't believe i'm standing here right now thinking that buying a home in san francisco is the most regrettable thing i've ever done because it's actually the most difficult, pretty much anywhere in the country. i think the devastating concern right now is of course what people have said about these loans. but san francisco is a subprime market crash waiting to happen. and we have to wake up and all of you, the supervisors opposed, have to consider the reality of this. the difference is that we are not subprime in that we've all honored these homes, we all have high credit ratings, we've been very thoughtful and efficient about our part of the deal. but when inflation hi

t.i.c. conversion units to condo.should be given to buildings where all the units are owner occupied and were purchased without an eviction. when a renter like me entered a t.i.c. process, he or she does remove a unit of rental stock but also decreases demand for rental stock by one unit. when it converted the composition of the housing stock is not affected only the mechanism of ownership but this is important. ting t.i.c. results in more flexibility. housing stock is improved as --- physical system awch as plumbing and wiring are brought up to code. while affordable housing stock is scarce in san francisco, for rental, affordable housing for purchase is also very scarce. and t.i.c. or condo is the most affordable type of owner housing. increasing the housing stock is critical for both rental and owner housing. last friday the chronicle indicated that several thousand apartments are in the pipeline for delivery over the next three years. less than 10% of these will be available to be converted to condos. while many o

units. i think there's a real concern that t.i.c. other than other ow. they don't exist in a bubble. the units that they are in were once renter-occupied units. we can debate how exactly they got vacant for this occupancy. they were units that will at some point be renter occupied units again, maybe in a year, where people will sell and move, maybe longer but they will become renter occupied units if not currently. and they will not be rent control. the elephant in the room is the costa hawkins rental housing act state law that says you cannot have rent control on these units once they are condos and that's the problem. and fundamentally, when i see mr. sullivan with charts, i think that chart proves the point. if he's showing evictions are down because it's more difficult to convert to condos... >> chair wiener: thank you. thank you. >> ted, san francisco tenants union. i want to remind us all this is an extremely difficult market for renters right now where the new dotscom boom arging well over 1230 a month, evictions have been tripling and it's a tough time for renters. the two mos

i've been living in district 5, after finishing up law school in '98 and have lived in a three unit t.i.c. building for 10 years. it's my first home. i purchased it along with two other families because we wanted homeownersship. i wanted a stake in the city. i wanted to stay here and raise my family but i couldn't afford a single family house or condo or a two unit condo, because those were priced at condo rates. i wish i could have. unfortunately, it appears, in all respect that i do have a condo but merely i just have an interest in the t.i.c. and as such i'm forced to be on a jumbo loan with two other families. we're tied together financially and stuck in a loan that we can't get out of. we can't take advantage of the historic low interest rates, instead of having individual folks, that have single family or condo owners. we can't stabilize our finishes or plan for the -- finances or plan for the future because our loan is variable and subject to the market volatility. don't let the opposition tell you that this will cause rent to go up

units. some t.i.c. owners complain that they can't get their units refinanced because of the ways loans are structured. ace feels there pain, but they must organize themselves in groups, and demand better mortgage deals of the 1% to open up flood gates and push people out of the city or onto the streets is not the answer. thank you very much. >> chair wiener: thank you. next speaker. >> thank you much again for being here and supporting us and to everybody out here. seems to be a lot of support for both sides. my name is cole. i work as an administrator for a music school, which is a nonprofit that's been going for 40 years. i am administrator and outreach director. i teach music to areas all over the city and the majority of the people that work for me, or that work for us, are younger, poorer, musician creative types that if they were to lose their -- the housing that they have, one will be here later to speak, it would put them in a position where they would have to leench. when i moved to san francis

t.i.c. owner upstairs just sold their unit for 450. that was five years ago. so clearly you can sell your t.i.c. unit for some money. they knew what they were getting into when they bought the unit. there's a lottery. the lottery didn't start last week. my dad pays two-thirds of his income in rent. his building just sold. i'm really scared. >> chair wiener: thank you. next speaker. >> i have my card here. my name's jennifer grant, i've lived in san francisco for 25 years. i've worked at nonprofits that entire time, nonprofits funded by the san francisco. i ran two of the battered women's shelter for 17 years. currently i work at one of the family resource centers. as a single woman i saved for many years, i borrowed from my family, and was able to purchase my own home after renting for many years through the san francisco first time home buyers program. my wife and i have two children who have been in public schools their entire lives. they're 6th graders at roosevelt. my kids go to the beacon program and qualify for scholarships at summer camp, qualify for mun

t.i.c. state, or a rental state to a condominium, as an increase -- depending on the kind of project it is, the initial cost of the project as an increase of 45 to 75,000 per unitto go from a t.i.c. to a condo. and right now the wait in the lottery is -- i believe this year, the oldest most senior group has participated for eight years. and there are enough of them that they will actually have to go through a lottery process. they won't be accepted automatically. so the concept would be that, by avoiding those delay costs of holding your property in the t.i.c. form verse, being able to go condo separate yourself from the t.i.c. owners and have your own separate mortgage home equity loan opportunities, that that creates a significant financial incentive which would be the offset. >> co-chair kim: but this is an untested part of the law. there's no guarantee that -- one of the conveniences in the past and i'm not stating either way with parkmerced and trinity is we dealt with one landlord essentially one property owner. in this case we could be dealing with hundreds of property owners that may or may not sue the city and kind of test the waters on this issue. so

units. but i'm very sympathetic to the current status of our existing t.i.c. owners in the status that they're in. so i'd really like to see if we can come up with some kind of solution that will help our t.i.c. owners, particularly the ones -- and i think it's important that it be owner occupied. i think we should be looking at a ban of fill for five or 10 years to ensure that these are folks planning on living in their units and not flip. and i think we should be talking about if we allow 1800 potential units to go through in this year are we talking about a freeze over the next nine or 10 years. so what we're trying to avoid is people stuck in a process for eight to 10 years and that's the actual challenge. then maybe we help take care of those folks today, but then actually do a freeze on future condo conversion so that we're not encouraging other folks to enter into that field, knowing that that bypass is given today. the reason why i asked the question of some of the public commenters about whether they were t.i.c. owners currently its not because they d