Don’t Gamble with Housing for the City’s Workforce

23 02 2017

Our latest op-ed in The Examiner.  Read the original article here.

San Francisco Examiner, Courtesy photo.

A new proposal to change The City’s Inclusionary Housing program is threatening to make it even more difficult for lower-income San Francisco workers to find homes.

While it is hard for many households to find housing, the challenge is most acute for The City’s low- and moderate-income workforce. In San Francisco, almost a third of these households are what the government describes as “severely rent burdened,” paying more than half their income in rent. That means little money left over for transportation, food, childcare, school and other necessities. On the other hand, almost no households above this moderate income level — individuals earning up to $90,000 per year or families of three earning up to $116,000 per year, or in more technical language, those who earn under 120 percent of the area median income (AMI) — can be described as severely rent-burdened, though in this over-priced city it’s no doubt some are paying more than 30 percent of their income in rent or mortgage.

What do we do for our “missing middle,” the low- and moderate-income workforce who have high housing cost burdens, yet who earn too much for The City’s federal and state-subsidized, very-low-income housing? Over the years, our affordable housing advocates have worked hard to create new programs to serve this low- and moderate-income workforce, including the largest first-time homeownership down payment program in the state, an acquisition program for small mixed-income apartment buildings, and The City’s Inclusionary Housing program, which is one of the most important workforce housing opportunity policies in The City’s toolbox. This program requires market-rate developments to include a certain percentage of permanently affordable units within their projects, and with last June’s Proposition C, this program was thoughtfully expanded to truly meet the housing needs of The City’s middle-income workforce.

Now, however, Mayor Ed Lee and several moderate board members appear to be launching a new proposal to change up The City’s Inclusionary Housing policy. Announced with a splashy news conference last week, this proposal would be a huge step backwards, pitting higher-income workers against lower-income workers who are all part of the same “missing middle.”

Currently because of Prop. C, which was overwhelmingly supported by San Francisco voters, developers are required to build onsite inclusionary units to serve households at two critical tiers: rental homes at 55 percent AMI and at 100 percent AMI, and homeownership opportunities for workers from 80 percent to 120 percent AMI. It was a “both/and” approach that expands the pie to create housing for the full range of residents caught in that missing middle and is truly a “Housing for All” policy. But the new proposal from City Hall eliminates the lower-income tier of the Inclusionary requirement, instead concentrating on only the higher moderate-income tier: 85 percent AMI average for rentals and 120 percent AMI average for condos, far more that The City’s unionized workforce earn, such as grocery store or hotel workers, janitors or paraprofessionals in our school district.

The core idea of last year’s Prop. C was to add to our pool of housing opportunities, not cut affordable housing for some workers to create housing for other higher-income workers, like this new proposal would. The San Francisco Realtors Association tried that approach with last November’s Proposition U, proposing to take away the low-income portion of The City’s Inclusionary Housing requirement to subsidize middle-income households, and the measure failed miserably — it only got 36 percent voter support.

All this begs the question: If we know who is being hardest hit by the affordable housing crisis, then why is this proposal cutting out low-income San Franciscans who are severely rent-burdened and also deserve the opportunity to live in mixed-income “inclusionary” housing?

There’s another catch as well. Prop. C also mandated that the City Controller do an analysis of the maximum feasible inclusionary, that just culminated two weeks ago. However, City Hall has come back with a proposal that then raises the household income levels to be served from what was assumed in the City Controller’s process. The City Hall proposal would equate to an increased profit of about $2 million to developers for a typical 100-unit development project with inclusionary rental units, and even more for a condo project. This way, the new proposal as a matter of optics can claim to hit the “maximum feasible inclusionary” that the Controller’s Office has recommended, and still save a nice chunk of change for private developers. Some might call that a real windfall!

Instead of making inclusionary housing about class politics and giveaways, we can and should continue to be bold with this city housing policy as it evolves forward. But first and foremost, leave the basic purpose of inclusionary housing policy as it is, for both low-income and moderate-income workers — the full “missing middle” of San Franciscans.





Will San Francisco Renege on Middle-Income Housing for Van Ness-Market hub?

6 02 2017

Our latest op-ed in The Examiner.  Read the original article here.

SF Examiner (Courtesy Photo).

For the last few years, The City has made big strides in recognizing the critical need for housing affordable to middle-income residents, as the affordability crisis has intensified and broadened to include more and more San Franciscans shut out of the private real estate development market. Mayor Ed Lee made middle-income housing a cornerstone of his housing plan, enshrined in Proposition K, the 2014 Housing Balance measure, which set a goal for The City to build 30,000 units by 2020, with at least one-third affordable to low- and moderate-income San Franciscans (defined as folks at all income levels up to 120 percent of the median, which equates to a family of four earning up to $120,000).

Voters have consistently supported both revenue measures and tighter affordable housing requirements to support homes for the broad population of San Francisco, without leaving behind the working class and those on fixed incomes. As importantly, San Franciscans have rejected attempts, such as last year’s Proposition U, placed by the Realtors, that proposed taking away homes from those earning less than The City’s median income in order to help those earning slightly above the median.

In November 2015, voters passed Proposition K, the Public Lands measure requiring The City to maintain “public lands in public hands,” particularly affordable housing, and that in the event that no public use was feasible, those sites could only be sold for development with a minimum requirement of 33 percent affordability for low- and moderate-income San Franciscans. Prop. K passed with an overwhelming 75 percent voter approval, setting San Francisco as a leader in the state for local public lands policy. Voters also approved a huge upzoning for the Giants’ Mission Rock projects, with a promise that the site would include 40 percent affordable units, from low-income all the way up to upper-middle-income. In November 2015, voters supported a $310 million bond with a portion of the funding dedicated to middle-income homes. And just last June, voters overwhelmingly passed Proposition C, with 68 percent support, expanding The City’s inclusionary housing by expanding requirements on market-rate developers to provide an additional 10 percent middle-income units and restoring the 15 percent low-income units The City had required until the Great Recession hit.

But when city departments own property they can speculate on to pay for other capital needs, the tune often changes.

Two years ago, the Department of Real Estate tried to sell off a five-story office building at 30 Van Ness Ave., which the Planning Department had recently rezoned for 400-foot heights (40 stories) and has a buildout capacity of 500 to 600 residential units. Real Estate tried to bypass an existing surplus properties ordinance by claiming that, because The City would still be renting office space in the building at the time of the sale, the property was never going to become “surplus.” But in early 2016, the Board of Supervisors sent the proposed sale back to the drawing board.

Now, the Department of Real Estate is back, this time trying to find a way around Proposition K, the voter-approved Public Lands measure. That measure mandated a minimum of 33 percent affordable housing on any city-owned land sold on the open market. Real Estate is now seeking another loophole, by asking for a waiver from Prop. K based on The City’s interest in using the proceeds to pay for “infrastructure” — in this case, a new office building for The City built in partnership with another private developer.

Their proposal for a waiver would build only 25 percent inclusionary, no different from what The City currently requires of private developers, rather than the 33 percent called for in Prop. K, and perhaps get some “fee-out” payments from the 30 Van Ness developer instead of actual onsite units. The difference is worth about another 45 on-site inclusionary affordable housing units, most of them designated for middle-income San Franciscans. In other words, the Department of Real Estate proposes to treat 30 Van Ness as just another private development opportunity rather than as a publicly owned asset that should command a higher public benefit. Why would they undercut desperately needed affordable homes to cover the costs of office space?

And on top of that, there is talk of rezoning the site yet again, for an even higher building, which would make the land even more valuable (but with no added public benefit). The Lumina project completed last year in Rincon Hill gives you an idea of the kind of prices a developer can expect for units in a 400-foot luxury tower: According to the Planning Department, initial sales prices for units ranged from $1.35 million to $49 million. That would seem like plenty of profit for 30 Van Ness to deliver the minimum 33 percent affordable requirements the voters asked for.

We know The City can — and should — do better. San Franciscans have continuously expressed at the voting booth a solid commitment to creating affordable housing opportunities and to building new units for both low-income and middle-income folks. Now is not the time to play procedural workarounds on a popular voter measure and squander away precious public resources.

It’s a sad day when a private development like the Giants’ proposal at Mission Rock can deliver more affordability than The City can on its own publicly owned property. It’s time to step up to the challenge and make the 30 Van Ness public site deliver affordable housing to its fullest.





Eye on the State: Housing Crisis Tied to Income Inequality

6 02 2017

This is the first piece from the SF Examiner’s new column, Eye on the State, which is a monthly report from San Franciscans for Community Planning that will follow the new round of by-right bills and other proposed housing bills making their way through the 2017 state legislative session: “Here on our San Francisco island, struggles over affordable housing and land-use policy have for decades absorbed much collective energy. Now, beyond our shores, there is a statewide “housing crisis,” and ideas about how to “solve” it are flying around the Capitol. Eye on the State will examine the local implications of proposals brewing in the Capitol from the perspective of community, housing, labor and environmental advocates representing everyday people.”  Read the original article here.

SF Examiner (Courtesy Photo).

To start, let’s get some clarity on the problem: California’s “housing crisis” is, at heart, an affordable housing crisis. Yes, housing production plummeted statewide after the 2008 financial crisis and has yet to recover. But the core question about the need for increased housing supply is: “supply for whom?”

Let’s also be clear that this affordability problem is as much related to income inequality as simply affordable housing “production.” While the dramatic rise of the tech sector with its high paying jobs is widely reported, less talked about is the up to six lower paying support and service jobs created for every tech job, driving up the need for low- and moderate-priced housing. Yet the reality is that the real estate market tends to only cater to the top-end earners.

In areas of the state where housing production has increased over recent years, it’s predominantly on the upper end of market-rate, creating an ever-widening gap for housing affordable to Californians earning less than the state median income. We know this all too well in San Francisco, where new market-rate housing is at nearly untouchable prices for even well-paid, white-collar workers, let alone The City’s majority of everyday low- and moderate-income people in need of housing.

What this top-end focus of new development has resulted in is a tremendous imbalance in the affordability of housing supply. Some California cities are “performing” quite strongly on the housing goals the state sets for them for market-rate housing, but falling far short when it comes to housing affordable to low- and moderate-income people. For example, the regional Association of Bay Area Governments reported that 99 percent of the projected market rate/above-moderate-income housing need was accomplished across the region’s 101 cities in recent years, while only 28 percent of all other needs for very-low, low- and middle-income housing were achieved.

While some cities like San Francisco are working hard to address affordable housing, many others are failing to build their “fair share,” exacerbating the load put on the Bay Area’s “Big Three” — San Jose, Oakland and San Francisco — which have absorbed more than a third of the entire region’s development in recent years (and are expected by regional planners to take on up to 45 percent of Bay Area development between now and 2030!). We must seek “regional equality” in meeting our future housing needs with policies that even out development across the region.

It is important to remember the housing market is different here than in Fairfield, Vacaville or Palo Alto, or farther afield in cities like Costa Mesa or Bakersfield. If there is such a thing as “naturally affordable” housing for the middle class, it might happen in some places with the right market conditions, but not others with hot real estate markets. As former State Sen. Mark Leno poignantly said in response to last year’s sweeping “by-right development” proposal from Gov. Jerry Brown, “one size does not fit all.” New, innovative policies must be devised at the state level, focused on higher density development in mature suburbs close to suburban employment centers. Evening out development patterns is a challenge, but with smart policies targeting the right places it can be done.

Solving the housing affordability crisis is not simple or easy. The California legislature has tried a variety of bills over the last three years, from protecting tenants, to strengthening “inclusionary” housing law and securing permanent state funding for affordable housing. But heavyweight interests, namely the realtors, the apartment association and the building industry, have fought these solutions tooth and nail.

Instead, the real estate industry is pushing the concept of development approvals “by right” — the idea that if local review processes are eliminated or “streamlined” then market-rate development will happen faster, more bountifully and with lower costs, all of which might result in more affordability for everyday Californians, everywhere. For a city like San Francisco where development is blazing and approvals are flipped out like pancakes at the Planning Commission, stripping away local public review for market-rate development is a power grab putting developers’ “right” to expect development approvals over the city and community’s “right” to push for more affordability or better environmental or labor standards in new development. Last summer Governor Brown ran a by-right development proposal up the flagpole, and it was blasted by a statewide array of community, housing, labor and environmental organizations. And this year new by-right bills are already being introduced again in the legislature.

 





A City for All Includes Families

3 02 2017

Our latest op-ed in The Examiner.  Read the original article here.

It is good to see that ”Family Housing” is getting a flash of interest in the media. It’ll be even better to see some substantive policy changes come out of all this attention. Because San Francisco’s need for family housing is not a new story.

In the 2000s, family housing was a critical component of the rezoning for the eastern neighborhoods. Those new plan areas eliminated density controls — allowing developers to shrink units to as small as legally allowed by building codes. In response, housing and community advocates fought for mandated family-sized units. As might be expected, developers strongly resisted, saying that this would distort “the market” and make development infeasible. The compromise was a reduced proposal of 40 percent two-bedroom units in some areas of the rezoning. As can be seen by the cranes all around the eastern neighborhoods, the family housing mandate did not stop construction at all.

Nonetheless, more and more developers today are concentrating on micro-units, studios, one-bedrooms and one-bedrooms “plus” — meaning that as The City’s new housing development becomes increasingly unaffordable, especially in the downtown and eastern neighborhoods, it is also increasingly unfriendly to families. This is in stark contrast to San Francisco’s historic housing stock, which is mostly units that are two-bedrooms and larger. According to last week’s report from the Planning Department: “Between January 2005 and June 2015, 61 percent of the 23,202 units of new market rate development has been studios and one-bedroom units, predominantly in larger buildings. New market rate housing produced relatively few units with three or more bedrooms.” Even in areas that require two-bedrooms, developers are barely meeting this requirement, claiming backroom dens with “borrowed light” as family bedrooms.

The current development market is “naturally” inclined toward building small units that cater to households without children. This is not because there is no market for family-sized units. (There is — in fact, this has been at the center of the demand for more middle-income housing in The City). It’s because the financial incentives for building smaller units are far greater. Real estate developers are not in the business of building housing to serve public policy needs — they are in the business of building for whatever “market demand” returns the best profit on their investments. More units per floor means more units to sell, each with higher per-square-foot prices, which means greater profit. This isn’t meant as a slight against developers; it is just the way the development market works.

By contrast, it’s our affordable housing developers who have been the primary provider of high-density family-friendly communities in the city. The typical affordable development provides units for a range of households, including single adults, couples and larger families, with approximately 40 percent two-bedrooms and 20 percent three-bedrooms and larger. We know that affordable family units actually go to families, rather than the extra bedrooms being used for home offices or entertainment rooms. Affordable developments typically have family-friendly open space, and many include on-site childcare.

If we want to keep opportunities for families in San Francisco, then it’s time for real action. The City needs to make bold policy moves, following the model set by affordable housing, not simply nibbling around the edges.

One way to achieve more family housing is a citywide unit mix requirement, beyond just the eastern neighborhoods plan areas. Emeryville, for example, has a 40 percent requirement, expecting each development to have at least 25 percent two-bedrooms and 15 percent three-bedrooms, and a maximum allowance of 10 percent studios. San Francisco could certainly match or surpass that standard. A unit mix requirement won’t necessarily guarantee that market rate units will be sold or rented to families — but if family units aren’t built, then it’s guaranteed that families won’t live there. Recognizing that neighborhoods are unique, the Planning Commission could come up with criteria for modifications to accommodate other community priorities, such as housing for seniors or single adults.

We need better standards for the design of family units, as homes that are designated “family” must actually function for families. Affordable housing already meets size and layout standards that have been derived from an empirical understanding of needs for households raising children. But in market rate housing the only “standard” is the minimum required by building codes, leaving the actual size and configuration of those two-bedroom units to each project developer. Without family unit standards, we are seeing inadequate two-bedroom units that are presented as “family” housing but realistically are marketed for singles and couples more likely to use the small second room for an office or media room.

At a minimum, the low- and middle-income inclusionary units that private developers build, which we do know will go to families, should incorporate an appropriate unit mix. This could be in line with what we already do with our 100 percent affordable housing: 40 percent two-bedrooms and 20 percent three-bedrooms, and minimum unit sizes to serve families.

Family-friendly buildings aren’t just about unit mix and size, but also about the overall design and amenities. The City could encourage developers to build units designated for family-based childcare, as Supervisor Norman Yee has recommended, which ideally would be designed to allow for better childcare sightlines and direct access to outdoor space. Open space should be designed to be family-friendly.

Finally, unlike affordable developments which often build in ground floor for childcare programs, private developments tend to fill these ground floors with parking or boutique retail. While The City charges fees to help subsidize much-needed childcare centers, there are few appropriate spaces on which to build. Instead of a fee, projects on large lots could be required to provide inclusionary childcare space.

The last few decades of development have shown us that the real estate market, left to its own devices, will not make this city family friendly. To do that will require bold policy interventions and, yes, regulation. And the developers will still build, and they will still make money. Let’s not let this flash moment of media interest go by the wayside — now is the time to refocus development on keeping families, at all income levels, in San Francisco.





What Santa Brought the Developers

15 12 2016

Our latest op-ed in The Examiner.  Read the original article here.

 

High-rise buildings in SF.  Photo credit: Emma Chiang, SF Examiner.

High-rise buildings in SF. Photo credit: Emma Chiang, SF Examiner.

Last Thursday at the Planning Commission, affordable housing policy in San Francisco took a giant step backward. For the very first time, a developer took advantage of a state density bonus law — a law that was intended to incentivize affordable housing — but in practice is becoming a big giveaway that allows developers to rack up bigger profits without providing a single additional unit of affordable housing.

Luckily, there is a clear way to correct for this giveaway — by setting our local affordable housing requirements, known as “inclusionary housing,” going forward at the appropriate level to recover the value of these giveaways.

The state density bonus law was written back in 1979 as a way to incentivize developers to build affordable housing. In exchange for building a certain number of affordable units, a developer would get a number of bonuses: additional market-rate units, or reductions in required parking, open space or setbacks.

In some markets, however, we don’t actually need to give developers extra profits to get them to build affordable units. With our incredibly hot housing market, developers can easily afford to include affordable housing in their projects — and they have been doing that since we passed our original local inclusionary requirements in 2001.

In fact, not a single project in San Francisco has ever taken advantage of the state density bonus. That is, until last Thursday, when the developer for a 200-unit market-rate project at 333 12th St. claimed the bonus.

Seems like Santa Claus came early for the developers, and he didn’t even ask if they had been naughty or nice.The problem with this state law is that it actually sets a lower standard than San Francisco’s current inclusionary requirements. Because of this, the initial intent of the law — to incentivize more affordable housing — is totally undermined. By providing exactly the number of affordable units they would have provided anyway, the developer at 333 12th St. is allowed to build 52 more market-rate units and zero additional affordable ones — drastically increasing their profits while giving nothing to The City or everyday San Franciscans in return. A project that was originally supposed to provide 18 percent affordable units will end up providing only 13.5 percent. The end result is effectively a reduction in the development’s contribution, a “value” to the developer in monetary terms of about $3.8 million. Talk about a giveaway!

Now that the very first developer has taken advantage of this bonus, a dangerous precedent has been set, and developers from here on out will want their own gifts from Santa Claus.

After Thursday’s Planning Commission hearing, Commissioner Myrna Melgar said, “It is an unconscionable giveaway. The City should not so easily stand aside and risk letting this impact on our city’s affordable housing policy become standard practice … The City really should do whatever it can, and quickly, to change our local policy to fix this problem before it escalates further.”

The hearing turned into a display of frustration, with the developer’s reps flatly, and smugly, telling commissioners there was nothing The City could do, and the commissioners one by one expressing their discontent with essentially being forced to approve a huge development that reduces affordable housing.

Commissioner Rich Hillis said during the commission’s deliberations, “It’s unfortunate that the application of a state law that’s to provide more affordable housing actually ends up with less affordable housing … to go from 18 percent we end up at 13.5 percent … I think we’d all say that’s a little odd …”

To be clear, increasing density of development is not the issue — that is a matter of good planning and design and appropriate fit. Instead, what is needed is a balance between market-rate development (with rents far beyond what the average San Franciscan can afford) and truly affordable housing. We need to uphold the initial spirit of the state density bonus law, which was based on the idea that developers could get more only in exchange for giving back more.

Moving forward, we do have an avenue for fixing this and preserving our local affordable housing policy. Currently, the City Controller is leading a process to assess the “feasibility” of the inclusionary percentages set by June’s Proposition C. The final meeting for this process is Monday and the recommendations that result will help set our inclusionary housing requirements for the foreseeable future.

In the controller’s initial report, published last month, they recommended a maximum of 18 percent inclusionary for rentals and 20 percent for condominiums, as an amount that could be easily supported by developer’s profits, and additionally suggested increasing this percentage over time at a set annual rate. However, as it is now, the controller’s calculations don’t include the state density bonus because this bonus has always been viewed as “theoretical” (since no developer had ever taken it). Well, this bonus is no longer theoretical.

With the precedent set by 333 12th St., it is very real — and it should, beyond a doubt, be included when determining how much affordable housing market-rate development can contribute to The City.

In fact, the controller has already acknowledged in preliminary recommendations that the state density bonus impact is “significant” and needs to be captured in setting the inclusionary rates. The 333 12th St. “case study” makes the answer quite clear: We need to increase the baseline inclusionary requirement by 7 percent to break even on the reduction caused by state density bonus. It is the only recourse The City has to recapture what the state has given away to developers. Let’s end the giveaways and remain true to the intent of San Francisco voters.


 





Broad Statewide Coalition Releases Policy Framework for Housing Crisis

5 12 2016
Californians for Affordable Housing, the statewide coalition of community, tenant, affordable housing, labor, and environmental organizations, including CCHO, that worked to stop the Governor’s “by-right development” proposal last summer, released a statement today setting out core principles and a policy framework for addressing California’s housing crisis as the legislature convenes its 2017 session.
Read the full statement below, or view/share on Facebook here.
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California Has a Severe Affordable Housing Crisis

California is facing a severe shortage of housing for low-income families – a shortfall of 1.54 million rental homes for extremely low-income (ELI) and very low-income (VLI) renter households, (California Housing Partnership Corporation, April 2016). Factoring in the needs of moderate-income households who are increasingly being left out of the real estate market dramatically increases this number.

 

In “hot market” urban communities housing prices have soared and gentrification has brought unprecedented displacement, hitting long-time African American and Latino/a residents particularly hard, and even encroaching on historic Chinatowns.  The growth in market rate and luxury housing development in historically working-class neighborhoods, landlords evicting to rent or sell to people with higher incomes, speculation in the real estate market and the foreclosure crisis have combined to put long-time residents at tremendous risk of homelessness.  We need policies at the state and local level that combat displacement and ensure that residents in our California communities are safe and stable in their housing.

 

We must be clear that this is a crisis of affordable housing.  Some cities are performing very strongly on their Housing element targets for market rate housing, but falling far short when it comes to housing affordable to low and moderate income people. For example, in the Bay Area over the last Housing Element cycle through 2014, ABAG reported that 99% of the projected market rate/above-moderate-income housing “need” was accomplished, while only 28% of all other needs for very-low, low- and moderate-income housing were achieved (www.abag.ca.gov/files/RHNAProgress2007_2014_082815.pdf), while in the San Diego region for their last Housing Element cycle through 2010, SANDAG reported that 152% of the projected market rate/above-moderate-income housing “need” was accomplished, while only 21% of all other needs for very-low, low- and moderate-income housing were achieved (www.sandag.org/uploads/publicationid/publicationid_1928_18891.pdf).

 

There is a tremendous imbalance in the housing production system which needs to be addressed. At the same time, many other cities and towns in the state are failing to build their fair share of housing, period – at all levels of affordability – and are most often falling abysmally short when it comes to affordable housing, which shuts out low-income people from many places with good schools, jobs, and other opportunities.  We need state policies to strengthen and enforce existing laws designed to make sure each community is contributing its fair share of affordable housing.  In addition, we need to ensure that all California communities have the resources and policy tools to perform and to succeed as “good actors.”

 

The housing affordability problem is also not simply one of producing and protecting supply—household incomes have not kept up with the cost of living, and the benefits of the latest economic boom have been concentrated in a narrow segment of the workforce and in an investor class.  A full third of California’s workforce are “low-wage” workers.  Ironically, the increasing strain to stretch incomes farther to afford housing includes the workers who build the housing that today’s real estate market is pricing above their own means. Policies to solve the affordable housing crisis must be cognizant of a jobs-housing “fit” – that is, both incentivizing housing in California communities that is affordable to the actual workforce of those communities and promoting jobs that pay a decent wage.

 

Core Principles for “Solutions”

Proposed solutions should be evaluated based on their consistency with the following principles:

  1. Does the proposed solution focus the state’s limited resources on meeting the most-pressing housing needs, i.e. people who don’t have a home or low and moderate income families paying an astronomical portion of their income for housing?
  1. Does the proposed solution support creation of jobs paying family-supporting wages?
  1.  Does the proposed solution requireallcommunities to take responsibility for making their housing accessible to people at various income levels, especially local workers?
  1.  Does the proposed solution protect the state’s natural beauty and support itsclimate changegoals?
  1. Does the proposed solution allow existing residents to remain in their community?

 

Policy Framework

  1. Tools to combat displacement & preserve existing housing and residents
    • tenant protections from unfair rent increases & evictions,
    • preservation of existing federal and state subsidized housing,
    • preventing landlord discrimination based upon source of income (for example, from Section 8 or other rent subsidies),
    • regulation of short-term rentals,
    • strong building code enforcement that combats deferred maintenance, and enforceable protections for the right to organize and against retaliation
  2. Strengthen & enforce existing “fair share” laws to increase production of affordable housing
    • update the Housing Element planning process toensure accountability that sufficient sites that are actually feasible for affordable housing are zoned and made available for affordable development in all communities.
    • reward actual RHNA “performance” of very-low-, low- and moderate-income housing production,
    • authorize regional funding sources and jobs-housing linkage programs
  3. Stable funding for expanded production of affordable housing 
    • a stable & ongoing source of funding for affordable housing,
    • improve financing for community land trusts, expand community ownership models,
    • ensure that public land is used for the public good
  4. Tools for affordable housing production
    • authorize local inclusionary zoning for rental housing
    • streamlining local processes for approving 100% affordable development
  5. “Rewards” and accountability mechanisms
    • link state allocations for transportation to affordable housing “performance”

 

If there are questions regarding this statement, please contact: in Southern California, Amy Schur of ACCE at aschur@calorganize.org or 2138043161, and in Northern California, Sam Tepperman-Gelfant of Public Advocates at stepperman-gelfant@publicadvocates.org  or 4156258464.

 

STATEWIDE ORGANIZATIONS

ALLIANCE OF CALIFORNIANS FOR COMMUNITY EMPOWERMENT (ACCE)

TENANTS TOGETHER

PUBLIC ADVOCATES INC.

PICO CALIFORNIA

COURAGE CAMPAIGN

RIGHT TO THE CITY ALLIANCE

STATE BUILDING AND CONSTRUCTION TRADES COUNCIL

CALIFORNIA LABOR FEDERATION

CALIFORNIA LEAGUE OF CONVERSATION VOTERS

WESTERN CENTER ON LAW AND POVERTY

CALIFORNIA RURAL LEGAL ASSISTANCE FOUNDATION

 

REGIONAL AND LOCAL ORGANIZATIONS

COMMUNITY LEGAL SERVICES IN EAST PALO ALTO, East Palo Alto

COUNCIL OF COMMUNITY HOUSING ORGANIZATIONS, San Francisco

URBAN HABITAT, Oakland

HOUSING RIGHTS COMMITTEE OF SAN FRANCISCO, San Francisco

FAITH IN ACTION BAY AREA / PICO, San Francisco and San Mateo Counties

FAITH IN THE VALLEY / PICO, San Joaquin, Fresno, Merced, Kern, Stanislaus

CHINATOWN COMMUNITY DEVELOPMENT CENTER, San Francisco

CAUSA JUSTA : JUST CAUSE, San Francisco and Oakland

SACRED HEART COMMUNITY SERVICE, San Jose

SANTA MONICANS FOR RENTERS’ RIGHTS, Santa Monica

LA VOICE, Los Angeles

LONG BEACH RESIDENTS EMPOWERED (LiBRE), Long Beach

COALITION FOR ECONOMIC SURVIVAL, Los Angeles

LITTLE TOKYO SERVICES CENTER, Los Angeles

TENEMOS QUE RECLAMAR Y UNIDOS SALVAR LA TIERRASOUTH LA (T.R.U.S.T. SOUTH LA), Los Angeles

KOREATOWN IMMIGRANT WORKERS ALLIANCE, Los Angeles

ALLIANCE FOR COMMUNITY TRANSIT (ACTLA), Los Angeles

STRATEGIC ACTIONS FOR A JUST ECONOMY (SAJE), Los Angeles

LOS ANGELES TENANTS UNION, Los Angeles

 

(PARTIAL LIST AS OF 12/5/2016 9:00 AM)





Reflection on the Election: Mixed Results for Affordable Housing

14 11 2016

Our latest op-ed in The Examiner, reflecting on last Tuesday’s election results.  Read the original article here.

Photo Credit: Paul Chinn, SF Chronicle.

Photo Credit: Paul Chinn, SF Chronicle.

Here in our Bay Area “bubble,” we continue to reel from the national news — worried not only about what this shift means for people of color, immigrants, women, and LGBT community, but also about the direct impacts that will be felt in the coming months in federal funding for housing, health care, and other critical social programs.

Trump filled the void left by the mainstream Democratic Party in abdicating its role to provide both a narrative and solutions for the issues critical to the working class. The party platform barely touched on homelessness, affordable housing or income inequality.

Even here in San Francisco, mainstream politicians linked to the centrist party machine had little to offer in the way of real housing solutions that build broad progressive coalitions with the city’s working and middle classes. Scrappy grassroots measures beat the odds while well-funded efforts fell short. Building strong local progressive coalitions is now more necessary than ever to offer an alternative vision and effective policy solutions for the housing crisis.

The Good

The only measures that brought necessary new revenue came from grassroots efforts, with little support from the political establishment. Proposition C, an expansion of $260 million in previously authorized earthquake funds to rehab existing buildings, especially those with at-risk tenants, and preserve them as permanently affordable housing, won with an overwhelming 76-percent yes vote. Proposition W, a transfer tax on luxury properties to fund free city college for San Franciscans, got 62 percent. Another surprising grassroots win was Proposition X, to protect arts and light industrial spaces in The City’s working-class neighborhoods, with 59 percent.

The Sad

As a counterpoint, the administration’s housing measures in this election, the joint Propositions J & K, met with mixed results. San Franciscans voted overwhelmingly for the CharterAmendment to fully fund both transportation and homeless services, but rejected by a similar margin the companion measure to fund this through a three-quarter cent sales tax. Nor did Proposition S — which also would have dedicated funding toward ending family homelessness, as well as funding for community arts programs — garner enough voter support to pass. Those losses are real disappointments, and leave short our resources to seriously tackle housing for The City’s homeless populations. Had a broad progressive coalition campaign been forged, it might have been able to counter the false promise of Proposition Q’s “Housing Not Tents.”

Proposition Q was a real spoiler to the measures on homelessness. It offered no funding or real housing solutions, but was pushed by moderate democrats as a political attention-getter. And it successfully drew enough backlash against homelessness to narrowly win by 52 percent. The implicit message was, “Why should voters support a tax measure for housing (Prop K) when they can simply vote for Housing not Tents (Prop Q)?” This loss will cause an immediate crisis in the mayor’s budget, as their projections had already assumed the revenue from the sales tax measure to fund the new Department of Homelessness.

The Ugly

And then there were two other duplicitous measures, Propositions P and U, direct attacks on affordable housing developers and on The City’s inclusionary housing policies in the name of providing for the middle class. They both went down in resounding defeat, getting only 33 and 35 percent respectively. A scrappy grassroots opposition, complete with street actions and sidewalk press conferences, defeated the $1.3 million yes-campaign funded by the National and State Realtors’ Associations. Despite the passing of Prop Q, the defeat of the Realtors gives us hope that San Francisco can continue to fight the encroachment of Trump-style bigotry at the polls. We can address the needs of middle-income families shut out of the real estate market by building broad coalitions, rather than the Realtors’ approach of pitting San Franciscans against each other.

Local Solutions Work

What we saw around the state is the realization by voters that neither the state or federal governments are offering any real ways to address the housing crisis. All they have had to offer in the past year is the false panacea of deregulation of market-rate housing. Local folks understand that, yes, it’s about supply, but supply of real affordable housing for everyday low- and middle-income people. We need to look at comprehensive policies that PROTECT tenants, PRESERVE the affordable housing we have, and PRODUCE new affordable housing, both publicly subsidized and by requiring market-rate developers to build mixed-income communities. Looking at the landscape of successful local ballot measures across the state, we see a range of solutions that address each of these issues.

Grassroot efforts in Richmond, Mountain View, and Oakland passed rent control measures, despite tremendous opposition by realtor and big landlord interests. This marks the largest expansion of rent control in California in 30 years, and sets a precedent for other jurisdictions.

Alameda and San Mateo counties both passed significant affordable housing funding measures, and Santa Clara County is likely to pass one as well. Berkeley passed a business tax on rental income, capturing a portion of landlords’ “unearned” profits from increasing rents. East Palo Alto similarly passed a business tax on big landlords. These taxes directly link landlord profits with the funding for affordable housing.

In Los Angeles, the Mayor went all in to champion a $1.2 billion bond for supportive housing for homeless people, which passed with 76 percent of votes. And as San Franciscans last June expanded our affordable housing requirements on private developers, Angelenos this week voted for Measure JJJ, which will require a minimum percentage of affordable units for low- and middle-income residents in residential buildings that need special city approval and a prevailing wage standard for developments receiving upzonings.

While Trump may have won at the national level, locally our democratic leaders can be successful in developing real solutions by building center-left coalitions. We can look to the best in us, work together, and win. Protect, preserve, produce!

 





San Francisco Voters Support Progressive Housing Platform by Large Margin

10 11 2016

Despite everything that has happened politically on the national level, Tuesday’s election brought some important local wins for affordable housing.  Yesterday, the Housing Forward campaign released a statement on the successful passage of Proposition C and defeat of Propositions P and U, copied below:

Prop C wins with 76 percent; Props P & U Handily Rejected Despite Million Dollar Realtor Campaign

YesOnC_12x18_Sign_NoDislcaimerSan Francisco – Voters supported a progressive housing vision for the City yesterday, overwhelmingly passing Proposition C, the Housing Preservation Bond, and rejecting Propositions P & U, two dangerous anti-housing measures sponsored by the Realtors Association.  The latest election results continue to confirm that San Franciscans want sensible and inclusive measures that address the City’s housing crisis.

“I am grateful to San Francisco voters for approving this critical affordable housing and anti-eviction measure,” said Supervisor Aaron Peskin about Proposition C, which needed a two-third majority and secured 76 percent of the vote.  “They overwhelmingly affirmed the one measure on a long and complex ballot that creates more affordable housing.”

Proposition C frees voter-approved funds from the 1992 earthquake bond and authorizes their use for other critical life and safety upgrades while preserving these buildings as permanent affordable housing.  The measure had support of a unique and diverse coalition, including the Coalition of San Francisco Neighborhoods, the United Educators of San Francisco, the San Francisco Building Trades, the Sierra Club, the Tenants Union and housing developers.

No_on_P_U_12x18_Sign_NoDisclaimerPropositions P and U were funded by the California and National realtors industry with a million dollar campaign, but Proposition P was rejected by 67 percent of voters and Proposition U was firmly opposed by a 65 percent margin.  Billed as affordable housing measures, they would in fact have blocked the creation of new housing and pit middle- and low-income San Franciscans against each other for the same limited supply of housing.

Proposition U was a direct attack on the City’s cutting-edge inclusionary housing policy that was just approved by voters in June. By passing Proposition C in June, by 68 percent, voters increased affordable housing requirements and created minimum levels for both low- and middle-income households.

“These results are decisive:  the resounding defeat of Propositions P and U by San Francisco voters is a clear indictment of the Realtors attempts to thwart affordable housing and further turn this city into a playground for real estate speculation,” said Peter Cohen of the Council of Community Housing Organizations.  “Voters once again showed support for inclusionary housing policy for low- and middle-income San Franciscans, and voters created a critical new funding stream that will bring new affordable units on-line.”





The Bogus Housing Study the Chron Loves

1 11 2016

Our latest op-ed in 48 Hills.  Read the original article here.

Authors’ note: This opinion piece was submitted to the San Francisco Chronicle in response to the paper’s editorial on Sunday Oct 22nd titled “A clear-eyed report on the housing crisis,” but the editors would not publish our submittal. So it is provided here to allow San Francisco readers the opportunity for an alternative perspective from the Chronicle.

The city’s own figures, presented in this chart, show that SF is building far more luxury housing that it needs — and that’s missing from the BAC report.

The city’s own figures, presented in this chart, show that SF is building far more luxury housing that it needs — and that’s missing from the BAC report.

The San Francisco Chronicle last Sunday gave a glowing review to the Bay Area Council’s latest report on housing policy.  At least the BAC was correctly characterized as “a pro-business think tank.” Though in the same breath the editors claim that the report “avoids ideological dogma.” Well, let’s dig a bit into the Bay Area Council’s analysis, then.

First, what is “the supply problem?”  In the Bay Area region over the period from 2007-2014, the total permitted new housing was only 57% of the official need as identified in what’s called the “Regional Housing Needs Allocation” that is prescribed by the state of California. One might jump to the conclusion, as does the Bay Area Council, that therefore any policies to increase whatever kind of housing supply is a “solution.”

But an inconvenient truth, of many hidden in this report, is that the RHNA is broken down into categories of housing affordability, and the fact is that 99% of the market-rate housing need was permitted across the Bay Area region from 2007-2014. By contrast, only 28% of all needed below-market housing was permitted for households from the poorest to middle-income families. So, “the supply problem” is about affordable housing that the real estate market is simply not producing for the vast majority of Bay Area residents. Policies as advocated by the Bay Area Council and the development industry that simply fuel more market-rate housing in the name of solving an affordable housing deficit are misleading at best.

Second, what is “the permitting problem?” The BAC asserts that enough housing isn’t being built because cities are slow or obstructionist in issuing building permits. So, the solution they and others in the development industry have peddled is to make the approval of development “by right,” eliminating local discretion. But it is important to clearly understand, as the Bay Area Council’s “clear-eyed report” does not, that approval of a development project—what in the business is called an “entitlement” approval—does not mean that a project will actually get built.

The inconvenient truth here is that cities don’t build market-rate housing, developers and their financiers do. So, approving a development project is no assurance that the developer will actually break ground and build the project any time soon.

Real estate development is a business, like any other commodity production, and the timing of constructing a housing project is based on playing the “market-cycle” to maximize investment returns, not necessarily on the needs or timing of public policy. The result is a disconnect between the approval of housing projects (the entitlement by local governments) and their actual production.

In San Francisco, for example, there are approximately 14,000 or more units approved for construction in the “pipeline” than are actually being built, and, on average, that backlog has increased by almost 700 units every year. That’s not even counting the approved housing from the massive Park Merced, Hunters Point/Candlestick, and Treasure Island developments, already-approved units of housing for which those developers have not pulled building permits.

So, the BAC “solution” to eliminate local discretion over approving development—and in the process cutting out environmental review, community involvement and the ability to maximize public benefits from development—are traded off for total uncertainty and simply a wish that this will result in actual new units on the ground. You won’t hear the development industry advocating for a “use it or lose it” provision that requires an approved project to begin construction within a specified period of time, let’s say a generous 18 months, as that would mean they’d be on the hook to actually build housing rather than simply speculating on housing approvals.

Real solutions to the local and state affordable housing needs would start with: 1) adding real “teeth” to state Housing Element law, such as linking transportation funding to actual affordable housing permitting and construction; 2) authorizing local “inclusionary” requirements on private development to ensure lower-income and middle-income housing is produced; 3) closing loopholes in state Ellis Act to preserve existing affordable housing, and regulations on short-term rentals and second-homes that are reducing available housing supply, and; 4) creating a new permanent source of state funding for affordable low-income and middle-income housing, such as a document recording fee on real estate sales.

These are just some of the tangible policy actions that would clearly target the problem. Politically difficult, yes, given the guaranteed resistance from the “pro-business” interests who want the public to believe in their own brand of solutions. But certainly more useful than the doe-eye magical thinking that is dished up in the latest report from the Bay Area Council.





Faces of Inclusionary Housing: The People Who Will Be Hurt by Prop U

31 10 2016

Our latest op-ed in The Examiner.  Read the original article here.

San Franciscans say No to P & U at an event in front of NEMA, an apartment building with on-site inclusionary housing.

San Franciscans say No to P & U at an event in front of NEMA, an apartment building with on-site inclusionary housing.

When talking about the Realtors’ Propositions P and U on this November’s ballot, two widely opposed measures that mess with the wonky details of how affordable housing is built in San Francisco, it’s easy to lose sight of the real people who stand to lose if these measures pass.

Prop. U is a divisive measure that takes away vital and already limited affordable housing resources from low-income San Franciscans. It undermines The City’s longstanding inclusionary housing program, which has successfully created several thousand affordable units within private developments. Currently, developers must provide inclusionary units for both middle-income and low-income households. Prop. U cynically undoes this by robbing Peter to pay Paul, taking away the limited inclusionary homes for low-income folks and opening all of them up to higher-income earners. It does this without creating a single new unit of housing. Even more insidious, Prop. U will apply retroactively to nearly a thousand existing inclusionary units, allowing landlords to double the rents they charge, creating an incentive to evict low-income tenants.

So who stands to lose if Prop. U passes? Who are the real faces of inclusionary housing?

We spoke with three inclusionary tenants and asked them to share their stories.

A family returns to its neighborhood

Rico Riemedio spent seven years applying for inclusionary housing before he won a spot in a new building in the South of Market for himself, his wife, step-daughter and 85-year-old mother.

When his family first immigrated to San Francisco from the Philippines in 1973, they moved to SoMa, an area with many Filipino immigrants. Rico’s family eventually left San Francisco, but his mother always wanted to come back. When they finally returned to The City, they could only afford an in-law apartment up a tall hill in the Excelsior. Without an easy way for his mother to travel or even a window for her to look out of, Rico felt like he was “keeping my mom in solitary.” Now, his mom is happy to be back in their old neighborhood, where she can easily get around and knows the community.

As a volunteer at the Bayanihan Community Center and a part-time caregiver, Rico thinks about the impact that losing low-income inclusionary housing would have on his community. “How about the seniors, the elders who live here?” he asks, pointing out that caregivers for seniors make around $13 per hour. “People who make a lot of money aren’t going to help the seniors. … We’ve got to have a place for people who do minimum wage jobs for The City.”

An organizer stays in his community

The housing crisis affects nonprofit workers, too, like the second inclusionary tenant we spoke with (who asked to remain unnamed). A community organizer, he understands having to choose between community and work, and being able to afford housing. After being evicted from their previous home in the Mission, he and his partner searched for affordable housing for a year, bouncing from sublet to sublet.

The thought of leaving San Francisco while organizing within The City didn’t make sense to him: “I was committed to staying here,” he said. He had even crunched the numbers, calculating that if they moved to the East Bay, the money they would have saved on housing would quickly be eaten up by the cost of commuting.

Inclusionary housing has allowed them to continue to work for their community. When asked what he would do if he were evicted from his current home as a result of Prop. U, he paused and said he has two options: He might have to leave San Francisco, maybe even California, or he would have to stop doing community work — neither of which he wants. But he doesn’t think he’d be able to find another home he could afford outside of inclusionary housing: “If I couldn’t afford an apartment two years ago, I can’t afford it now.”

From homeless to housed

Larry Richards credits the work his caregiver did to find him inclusionary housing with keeping him alive: “Fantasia Brown saved my life in several ways because of inclusionary housing,” he said.

Because of a tumor on his spine, Larry has been disabled since he was a teenager. Before he won the lottery for an inclusionary unit in 2014, he was homeless for almost a year. Homelessness, inhumane in any situation, becomes deadly when you are medically fragile like Larry. Without a home in which to plug in his oxygen machine, he had to go to the hospital several times because he couldn’t breathe. If he had not found the inclusionary housing where he now lives, he said, “I would be dead on the street.”

Now that he is safely housed, his caregiver is struggling to find her own affordable housing and is worried she may have to eventually leave The City and stop caring for Larry. Finding affordable housing is “like a needle in a haystack,” she said — something that would only get worse with Prop. U.

When talking about the threat Prop. U poses to low-income housing, Larry reiterated that this is a real health threat for many San Franciscans. When you are disabled, he said, “you don’t earn money like everyone else … if you take away from the pool for very-low and low-income [housing], you damage the most fragile people in The City … Why take away from the poorest of the poor? There should be more inclusionary housing, not less.”

Each of these people is a vital part of San Francisco. Our city’s low-income inclusionary housing program has made it possible for them to continue being a part of this city – improving the health of their families, themselves and their communities. The Realtors’ Prop. U would make the threat of eviction real for them, and, along with Prop. P, would make it harder for everyday folks to find homes in The City that they know and love, and that they are working hard to make better. Vote no on P and U, and say no to divisive measures that disrupt the lives of the people who make up the fabric of San Francisco.





Some SF Ballot Measures Trump Would Love

31 10 2016

Our recent op-ed in 48 Hills on the Trumpian politics of Props P,U,Q, & R.  Read the original article here. 

Don't miss the rally this Thursday, November 3rd, protesting these divisive measures!

Don’t miss the rally this Thursday, November 3rd, protesting these divisive measures!

This November, the nation will face the possibility of electing a ruthless real estate developer whose rhetoric is filled with reactionary outbursts, misogyny, racism, and xenophobia.

But here we always had the myth to fall back on that “we are in San Francisco,” a liberal bubble that marches to our own tune no matter what the national mood. We take pride in our storied history of protest and radical acceptance.

Of course, we know it’s more complicated than that, and, in truth, we are no more immune than the rest of the nation to the sneaking chill of bigotry. Only a few years ago, San Franciscans passed Sit-Lie, a measure to criminalize homeless people simply for being on the streets.

Today, four more bad-smelling policies that would make Trump proud are before local voters. In these measures, we face similar attacks against those who are different, who are more vulnerable, and who are poor and working class. And we are also given false solutions that promise to provide more for some by taking away from others.

Props Q and R –criminalizing poverty

Propositions Q and R take the heart of Donald’s hate-filled rhetoric and try to implement it in San Francisco. The mean-spirited Prop Q would confiscate people’s tents. Even its name, “Housing Not Tents,” reeks of deception, as it would provide not a single penny for housing nor require housing for anyone forcibly removed from an encampment, offering only the measly single night in a shelter. San Francisco-style fear mongering is much slicker, but no less obvious.  Today’s politicians use clever language that stirs visuals of an animated tent with ferocious teeth, raping and pillaging pedestrians. This vitriol is a central component of the “Trump” tactic of fear mongering meant to drive conservatives to the polls – and it’s taking place right here in San Francisco. They type of anti-homeless propaganda leveled in Prop Q creates the conditions that result in increased hate crimes against homeless people, and worse, get in the way of forging real solutions to the housing crisis that is slowly killing so many forced to remain on the streets.

Prop R is another measure with a misleading title, “Neighborhood Policing,” which would actually take police out of neighborhood stations and create homeless policing units. Homeless people received more than 27,000 citations last year for being poor, and we spent $20.7 million enforcing the 23 anti-homeless laws on the books in San Francisco. The Budget and Legislative Analyst suggests this was a futile waste of money. Prop R sets this bad practice in stone.

Much like Donald’s bombastic claims, these measures appear to be largely politically-motivated, an attempt to forward political careers without providing any real solutions. At a time when the national debate is filled with reactionary rhetoric, San Francisco cannot afford to take the low road. Harvey Milk, who as a Castro activist fought to repeal the sit-lie laws that existed in his day, would be horrified at the prospect of our city of open arms turning in on itself like this.

Props P and U – developer giveaways that divide San Franciscans

Following a similar pattern of divisiveness, Propositions P and U come directly from the SF Realtor’s Association, with a war chest of more than a million dollars paid for by the state and national Realtor’s associations. They are developer and real estate giveaways that Donald would love, and will hurt everyday San Franciscans.

Proposition P claims it will “lower the costs” of building affordable housing, but it could end up killing the kind of affordable housing for which San Francisco has paved the way on a national scale: services-enriched supportive housing for homeless individuals and families, housing for transitional-aged youth, and housing for people with disabilities or for victims of domestic violence. While in most cases the city already receives three or more proposals for each new project, in the case of hard-to-build projects such as those for the homeless, or in communities where specific language or cultural competencies are critical, there may be less than three qualified proposals. Prop P would not allow affordable projects to move forward unless three proposals are received, and would force the city to accept the “best-value” proposal regardless of quality, service program, experience, or cultural competency.

In reality, Prop P fits with Donald’s model of neo-liberal privatization: paving the way for big out-of-town private developers to build shoddy projects on precious public land, with no accountability to the communities in which they build or who they are meant to serve.

Proposition U cynically tries to undo SF’s affordable housing gains while giving developers and Realtors huge windfall profits.  This past June, voters overwhelmingly supported expanding the requirements for mixed-income communities with Prop C, called inclusionary housing, by requiring private developers to include homes affordable to middle-income as well as low-income San Franciscans. The Realtors’ Prop U would remove all the low-income units, and only allow units for people earning up to $80,000 (110% of median). The Realtors claim this creates more affordable housing for middle-class families, but Prop U really robs Peter to pay Paul, taking housing options away from the city’s families who are most at risk without creating a single additional affordable housing unit. And more insidiously, Proposition U would also apply retroactively to almost 1,000 existing affordable homes, allowing landlords to double the rents on vacated units and setting the stage for evictions. This is the kind of divisive measure that we should not stand for, pitting middle-income against working-class families.

These attacks on inclusionary laws are not tangential to Trump’s candidacy. In fact, last summer, one of the principal enemies of inclusionary housing, LA-based real estate developer Geoffrey Palmer, emerged as Donald Trump’s single largest donor (since eclipsed). Palmer is notorious in the Bay Area because of his lawsuit which hamstrung cities from enacting stronger inclusionary policies.

You gotta give ‘em hope, said Harvey…

While we must fight back against those attacks that seek to divide San Franciscans and promote hate and fear, we must also redouble our efforts towards the only solution to the housing crisis: preserve and produce real affordable housing.  The progressive vision is one of hope, in contrast to the bitterness of the Realtors and others cribbing from Trump’s playbook. This November’s crowded slate has a number of innovative propositions that truly seek to expand housing options for low- and middle-income residents, including:

  • Prop C, the Housing Preservation Bond, which will provide loans to make safety upgrades to apartments and preserve them for all existing tenants, low-income and middle-income, as permanently affordable housing.
  • Props J & K, a 1/2 cent increase to the sales tax (still below many Bay Area cities) and set-aside to dedicate funding for homeless housing and services and equitable transportation improvements.
  • Prop M, the Sunshine for Housing ordinance, which creates transparency and public oversight for the city’s housing and development decisions.
  • Prop S, which will reinstate hotel tax allocations for cultural arts funding and funds for ending family homelessness.

This November is a chance to prove that San Francisco is still a City for All, no matter what the national mood. Say no to Trumpifying San Francisco, and vote NO on Props P, Q, R, and U.

 

 





Creative Addition to Inclusionary Program Means More Money for Small Sites

25 10 2016
This house on 23rd Street was preserved as permanently affordable through the Small Sites Program. Photo Credit: Jeremy Raff, KQED.

This house on 23rd Street was preserved as permanently affordable through the Small Sites Program. Photo Credit: Jeremy Raff, KQED.

In a creative twist on inclusionary housing, Supervisor David Campos and Mayor Ed Lee are introducing legislation today that will give necessary additional funding to the Small Sites Program.  The Small Sites program, which purchases small buildings whose tenants are at risk of eviction and preserves them as permanently affordable housing, is one tool for stabilizing long-term tenants and combating displacement and gentrification.  CCHO staff and member organizations have been instrumental in the development of this program from its very beginning, including this latest innovation.

Under this legislation, private developers of small developments (between 10 and 25 units) will now be able to direct their required inclusionary housing contribution to a local neighborhood Small Sites Fund.  The funds would have to be used locally, to purchase a building within one mile of the developer’s project.

This is another tool to ensure that new developments contribute to offsetting the impacts in the neighborhoods they most affect, helping protect San Francisco residents from the threat of speculation and displacement.

Read more on this legislation in today’s article in Mission Local.





Who Is Moving into – and out of – SF?

20 10 2016

Our latest piece in 48 Hills.  Read the original article here.

Everywhere in San Francisco today, people are talking about the housing crisis. You can’t turn on the radio or read the news or see the rental listings without being reminded of the lack of affordability. Many of these stories focus on the prices themselves or on the growing influx of eager transplants to the City. Often overlooked is the story of the exodus of families and households from San Francisco.

It is, of course, natural for residents to occasionally move to a different city or state, but this should be a choice, not retreat brought on by economic or social coercion. Alarmist statements about the number of people moving in to San Francisco each year, as well as the urgent calls to build, build, build in order to meet the demand of that population growth, mask the true effects of population “churn.” A whopping 12% of the city’s population turns over every year—so while the news has focused on all the people moving in to the city, the other side of the equation is that approximately 50,000 residents have been leaving San Francisco annually over the last five years. The City Economist crunched some data for the Planning Department earlier this year, and showed the astounding annual magnitude of this migration in and out of the city.

48hills_op-ed migrationchart3

However, even more alarming is that the underlying data on those who are moving into and out of San Francisco shows what we have long known through anecdotal evidence: that largely lower-income and people of color are being pushed out of the city and replaced by a wealthier, more homogeneous class of residents.

So, who is coming to San Francisco?

The American Community Survey, which is part of the US Census Bureau, is collected every year, and is the definitive data source for information on cities across the country. Using ACS data makes is possible to see population trends faster than waiting for the ten-year census. We focused on data collected after the end of the recession, from 2010 forward, to better understand the demographics of population change during these economic “boom” years, but examined data back to 2000 to establish a baseline.

The key takeaway is that San Francisco is becoming less diverse and increasingly a destination for upper income people. This should come as no surprise to any of us. But here are the numbers: through 2014, the most recent year for which ACS data is available, the median income for new San Francisco residents who moved from another state grew by nearly 40% over five years, after accounting for inflation and local cost of living. For example, in 2013 the incomes of people moving in were nearly twice as high as the incomes of those on their way out. To put that in terms of actual dollars and cents income, the number of households above $100,000 income per year grew by 6% while households making less than $100,000 per year shrank by 5%. These may seem like negligible percentages, but they represent approximately 10,000 low- and middle-income households that were essentially replaced in a single year by upper-income households.

48hills_op-ed migrationchart1

This trend has a long precedent over the last 15 years, amplifying with each market cycle, and, if anything, the trend has likely further accelerated through 2015 and into 2016. These trends are evident both long term and over a shorter period, and if median shifts continue on the trajectory they have post-recession, the 2016 median income for in-migrants to San Francisco from other parts of the country or the world would be a whopping 280% of the income of out-migrants leaving for more affordable far-flung regions.  The research arm of Trulia, the real estate website, even had an article on this issue earlier this year called “Priced Out” — it’s a growing national problem for urban communities across the country experiencing rapid gentrification in this booming real estate climate.

And who is being replaced?

But this is also more than just a story of income disparities or the affluent of all stripes displacing lower-income residents–the haves replacing the have-nots. There is also a very clear racial dimension. Populations that have historically been marginalized in the United States are again being negatively affected at disproportionate rates as San Francisco “grows” and gentrifies. Every year since 2010, the first year that the most accurate version of this data became available through the ACS, there has been a net loss of African-American residents from San Francisco. Over those five years, more than twice as many black residents moved out of San Francisco as moved in. That has amounted to a loss of as much as a quarter of the city’s black population since 2010.

This story is similar for other populations of color–a greater out-migration of residents than people of color moving into the city. By contrast, over this same five year period from 2010 through 2014, San Francisco gained almost 30,000 new residents who identify as white, the only ethnicity category on the ACS that showed more in-migration than out-migration every year.

The forces of capital are strong, and national and international demand for the chance to live in a city like San Francisco has soared, but this is not just an abstract debate about macroeconomic pressures. The “churn” from these migration trends is rapidly reshaping the city’s demographic picture.  Some folks may celebrate “disruption” in all forms, but the data makes clear that this version of disruption is replacing and erasing one San Francisco and creating a drastically different one.

So, what can we do?

Yes, San Francisco will continue to change, grow, and develop. But we need to be honest that the face of San Francisco is changing, the city is rapidly gentrifying and the out-migration of working class and people of color communities is shocking. We have today not just a growing population but more significantly a replacement population. That’s 50,000 new residents a year in, and 50,000 existing residents out. Those are big numbers, and those are everyday San Francisco people. And it is a trend that no one should be comfortable with.

City policy may not be able to entirely reverse these winds, but it can make a difference. We have a responsibility as citizens to push for policy that gives all San Franciscans, especially those whose voices are often silenced, the tools and ability to hold fast against the economic maelstrom of development and displacement driven by real estate goals rather than public policy goals and San Francisco values.

We should push to fortify tenant protections such as rent control, and fight for restrictions on real estate speculation that drive up housing prices and incentivize evictions. We should fight to ensure that new developments are required to contribute to public needs in the form of maximum levels of affordable housing and fair-share of infrastructure costs. We should insist on “affordable” housing that is actually affordable to low- and middle-income San Franciscans – meeting families where they are, rather than playing over their heads for a “new middle class”. And we should reject moves to reduce affordable housing production and to price people out of affordable housing programs, like the San Francisco Realtors’ divisive Propositions P and U on this November’s ballot. Propositions P/U (“peeyew”!) are attacks on affordable housing and would simply add fuel to the fire of the displacement of people of color from San Francisco.

As San Franciscans, we have a lot at stake. We must stick together and fight back against out-migration and population replacement masquerading as benign population growth. We can and should work to ensure San Francisco remains an affordable city truly for all.

 





Don’t Be Fooled: Propositions P & U Are Bad for Affordable Housing

20 10 2016

Our latest op-ed in The Examiner.  Read the original article here.

Housing Forward_ No On P&UIn the midst of the worst housing crisis in our City’s history, progressive housing advocates are developing innovative ways to expand affordable housing options for low- and middle-income San Franciscans – from a strengthened inclusionary housing requirement that recaptures for the public good the windfall profits of this wild real estate market, to new revenue sources for acquiring at-risk rent-controlled buildings to preserve them as permanently affordable housing.  Unfortunately, at the same time, the San Francisco Realtors are pushing two misguided and poorly crafted measures that threaten to reverse our hard-fought progress:  Propositions P and U on the November ballot.

One claims it will “lower the costs” of building affordable housing. The other says it will create more affordable housing for “middle-class families.”

But DON’T BE FOOLED. These propositions by the Realtors don’t create a single new unit of affordable housing. They will, however, take affordable housing options away from the City’s families who are most at risk, stall the creation of new housing, and lower the quality of projects that are built. They are developer and real estate giveaways, plain and simple, that will hurt everyday San Franciscans.

Prop P – Less Affordable Housing, More Shoddy Housing

The Realtors’ Proposition P claims to lower the cost of building affordable housing by requiring the City’s housing department to collect three proposals for any affordable housing project before being able to move forward.  In reality, Prop P is a “solution” looking for a problem that doesn’t exist, and in reality will only hamstring the City at a time when we cannot afford to waste a single day from building urgently needed affordable housing.  In fact, the City already has a proven competitive bidding process that takes into account cost, experience, quality of design, and the extent to which the proposal fits community needs.  Only when the best developer chosen by the City for the job has designed the right project, does it go out for bids from three or more building contractors. The result has been thousands of high quality homes that enhance vibrant, healthy neighborhoods.

Under Proposition P, the City will be forced to go the low road, taking any proposals regardless of their quality and potentially ending up with shoddy “affordable” housing.  It could pave the way for big out of town and private developers to profit from building on our City’s public land. We already have plenty of experience with “low-cost” housing – concrete blocks of low-quality housing built on the cheap in past decades.  San Francisco doesn’t need more shoddy housing that we have to fix later, especially when our existing process results in high quality, well-constructed homes.  This is a dangerous step backwards for affordable housing.

This San Francisco Realtors’ measure also has the potential to stop many affordable homes from being built in the first place – particularly those that serve homeless families, transitional-age youth, seniors and veterans.  In their analysis of the measure, the Mayor’s Office of Housing said Proposition P could “indefinitely stall a development opportunity or delay much-needed affordable housing.”

Prop P is dangerous ballot-box planning that removes the City’s ability to continue making thoughtful and timely decisions, and will end up with less affordable housing for San Francisco.

Prop U – Developer Give-Away that Divides San Franciscans

Last June, voters overwhelmingly supported Proposition C, the increase to the City’s affordable housing requirement on private developers. San Franciscans understand that developers, in this strong market, can and should do more to create “inclusionary” housing in their new projects. They also voted to dedicate, for the first time, affordable housing for middle-income as well as low-income San Franciscans. Sixty-eight percent of San Francisco voters supported Prop C in the June 2016 election.

The Realtors’ Proposition U would undo what voters just approved in June, while giving real estate developers huge windfall profits.  It does this in a crafty way by eliminating the City’s longstanding requirement that developers make the inclusionary housing in their buildings affordable to low-income families. Instead, it allows them to market the “affordable” units at double the current rent levels.

In place of the current mixed-income system that serves both low- and middle-income families, Prop U creates a one-tier system that forces those families to compete against each other for the same limited supply of housing.

And in what is perhaps the most devious aspect of the Realtors’ measure, Proposition U would apply retroactively to more than 800 existing affordable housing units, setting the stage for increases in evictions and allowing landlords to double the rents on vacated units.

San Francisco has worked long and hard to create a fair process for inclusionary housing – one that sets aside units in private market development for both low- and middle-income households. In the name of real estate profits, Prop U takes away low-income housing, creates incentives for eviction, and doesn’t add a single unit of new affordable housing. And it will divide San Franciscans, pitting middle-income families against low-income families.

Propositions P and U, put on the ballot by the San Francisco Realtors, are bad for San Francisco families and will turn back the progress we are making to keep the City affordable and fight real estate speculation.  That’s why we are part of a broad coalition of affordable housing, labor and business, and community leaders, including the Coalition for San Francisco Neighborhoods, the San Francisco Neighborhood Network, the United Educators of San Francisco, Senior & Disability Action and many  many others urging you to oppose P and U on November 8.





The CCHO Affordable City Voter Guide

20 10 2016

Taken together, the ballot measures in this year’s election continue to implement a comprehensive Affordable City agenda, to preserve affordable homes (YES on C), to create transparency for housing and development decisions (YES on M), and to support programs that are critical for working-class people (YES on I, J, K, N, S, W, and X). At the same time, we need to VOTE NO against the smelly measures (NO on P & U) that promote a cynical Realtors agenda against affordable housing, and that criminalize homeless people (NO on Q & R).

Click here for the full print edition of our Voter Guide, including Spanish and Chinese translations.

CCHO-Slate-2016---Cover-for-web

YES on C – Housing Preservation Bond. Loans to make safety upgrades to apartments and preserve them as affordable housing.

YES on I – Dignity Fund. Dedicated funding for services for seniors, veterans, and adults with disabilities.

YES on J & K – Sales Tax for Homelessness and Transportation. 3/4 cent sales tax for homeless housing and equitable transit.

YES on M – Housing and Development Commission. Creates transparency for the city’s housing and development decisions.

YES on N – Non-Citizen Voting for School Board. A pathway for participation and civic engagement for immigrant parents.

YES on S – Hotel Tax Uses. Reinstates hotel tax allocation for cultural arts funding and ending family homelessness.

YES on W – Mansion Tax. A ¼ to ½ per cent transfer tax on property sales over $5 million to make City College free.

YES on X – Preservation of Arts and Industry. Requires developers to preserve and replace space for arts and production jobs.

NO on P – Less Affordable Housing. Delays affordable housing for seniors, persons with disabilities, youth, and homeless families, and opens the door to for-profit developers.

NO on U – Developer Giveaways. Would raise rents and incentivize evictions for over 800 affordable units, eliminate low-income units, and give owners more profits.

NO on Q & R – Criminalizing Poverty. The mean-spirited Prop Q would criminalize people in tents, and Prop R would create homeless policing units.

What the Media is Saying

See more at http://www.sfccho.org/publications/ccho-in-the-news/.

 

 





It’s Time for a Housing Preservation Bond – YES on C!

3 10 2016
Photo courtesy of SF Examiner.

Photo courtesy of SF Examiner.

Our latest op-ed in The Examiner.  Read the original article here.

It’s been 27 years since San Francisco was hit with the magnitude 6.9 Loma Prieta earthquake in the middle of the World Series between the Giants and the A’s, leaving neighborhoods in crisis and many people displaced from their homes.

We recovered and rebuilt, but today we face another housing threat of nearly equal magnitude, this time from displacements and evictions. The housing crisis threatens to change the face of The City, but if we take action now, we can confront displacement head on and simultaneously prepare our aging residential buildings for the next physical earthquake.

Proposition C, the Housing Preservation Bond on November’s ballot, expands the eligible uses from a 1992 seismic safety bond to include both the rehabilitation of other “at-risk” multi-unit buildings, and to allow nonprofit developers to acquire and preserve these at-risk buildings as permanently affordable housing. This will free up almost $261 million in unallocated funding.

How will this help the housing crisis?

The Housing Preservation Bond will address the hundreds of multi-unit residential buildings that today are in need of seismic, fire, health or safety upgrades. Failure to rehabilitate these buildings is a threat to both building residents and to the surrounding neighborhoods. There are at-risk residential buildings in all districts of The City, such as the hundreds of “soft story” wood-frame buildings at risk of structural failure during an earthquake, or the many apartments at risk of fires due to substandard electrical wiring.

As critical as its implications for life and safety, Prop. C is also an urgent anti-displacement initiative, providing stability for tenants by funding the preservation of small apartment buildings. Many of these tenants are facing Ellis Act evictions, buy-out evictions or tenant harassment.

Like last June’s Prop. C, this is a measure aimed at serving a broad range of San Franciscans, as it would stabilize families living in both middle- and low-income rent-controlled housing. The Housing Preservation Bond will make our city and tenants safer and protect and preserve dense affordable units in perpetuity.

Building on what works

Tomorrow, the San Francisco Community Land Trust will celebrate the 10th anniversary of its first acquisition, at 53 Columbus Ave., which preserved 21 at-risk homes and guaranteed stability to Chinese immigrant households who now own their building as a housing cooperative.

Under The City’s new Small Sites Program, nonprofits like the Community Land Trust and Mission Economic Development Agency have acquired buildings in the Richmond, Western Addition, South of Market, Mission and Castro neighborhoods, rehabbing them with soft-story retrofits, foundation upgrades, removal of toxic storage tanks and new sprinkler systems. The Chinatown Community Development Center is working to protect residential hotels in Chinatown, North Beach and Tenderloin neighborhoods, and the San Francisco Housing Development Corporation is exploring prospects for small apartment acquisitions in the Bayview neighborhood. The nonprofit affordable housing organizations are poised to expand this successful acquisition program — but The City is hampered by a lack of dedicated funding. Prop. C will be a critical boost for expansion, up to $30 million per year to the acquisition program.

Prop. C accomplishes this without any increased costs to taxpayers. Instead of new taxes, Prop. C amends the previous measure approved by San Franciscans in 1992 and simply expands the scope of those authorized funds. No new bonding capacity would be created beyond what was previously authorized, so it would not impact The City’s property tax rate. Further, Prop. C would bring the original bond up to today’s greater standards of oversight and transparency to ensure taxpayer accountability.

The Housing Preservation Bond is a win-win for our city’s tenants, neighborhoods and affordable housing. We cannot afford to wait out the devastation of the housing affordability earthquake without taking action now. Please join nonprofit affordable housing organizations, the mayor and all members of the Board of Supervisors, and vote Yes on C.





Decoding the Ballot with Diamond Dave

15 09 2016

213px-Mutiny-RadioCCHO co-director Fernando Martí in conversation with Diamond Dave Whitaker and Valerie Ibarra on last Friday’s Common Thread Collective podcast on Mutiny Radio, about the good, the bad, and the ugly in this year’s alphabet soup of San Francisco ballot measures. Among the Good: YES on Props C, M and X. And the Bad and Ugly: NO on Props P, U, Q and R.

Listen to our segment here (it’s between 1hr28 and 2hr).





Just Released! The Filtering Fallacy — An Infographic

12 09 2016

Behind a number of the recently proposed policy “solutions” to San Francisco’s housing crisis is the theory of “filtering.”  Understanding why these policies that rely on market-rate housing and deregulation won’t actually make housing more affordable requires a closer examination of this filtering theory, which could also be called “trickle down” for housing.

Haven’t heard of filtering?  Have no fear – we’ve created an infographic that breaks down the basics of filtering, the assumptions behind it, and the reasons it doesn’t work the way some say it does.  

Check it out below, or download a full-resolution PDF here.





Rally for Prop C – A Smart Fix for Safety & Affordable Housing

8 09 2016

CCHO and other community organizations, including Housing Rights Committee, SOMCAN, BiSHoP, and the San Francisco Community Land Trust, joined Supervisor Peskin in a rally this morning for Proposition C, the Affordable Housing Safety and Acquisition measure on this November’s ballot.

The rally took place at 22nd and Mission, the site of the type of fire that has been plaguing the Mission and could be prevented in the future with Prop C.

Prop C Rally_9-8-16

Prop C is the only measure in November that actually provides funding to increase the amount of permanently affordable housing in San Francisco.  It does this through a creative repurposing of unused bonds that the City’s been sitting on for years.

Back in 1992, after the Loma Prieta earthquake, San Francisco voters approved a $350 million bond to provide loans for upgrading the earthquake safety of brick buildings.  Since then, over half of this money has gone unused.

Prop C would free up this unused money, allowing it to be used for other at-risk buildings beyond just brick buildings, including the “soft story” buildings found throughout the Mission that are highly susceptible to earthquake damage and buildings in need of other safety upgrades.  Even more importantly, Prop C would allow this unused money to go towards buying buildings whose tenants are at risk of eviction, so they can be preserved as permanently affordable housing.

This measure is a smart fix, freeing up desperately-needed funds without creating any new taxes.  And it will help immediately address the housing crisis, providing a way to fight displacement and keep long-term tenants in their homes.





A Growing Coalition Stands Together Against By-Right

11 08 2016

Smooke_Joseph_By-RightRallySF_5Aug2016-83Last Friday, August 5th, 2016, CCHO joined our fellow Bay Area members of Californians for Affordable Housing in an action to stand up for our communities and against the Governor’s “by-right” measure. Californians for Affordable Housing is a growing alliance of affordable housing, labor, environmental, community, and tenants rights organizations from across the state, with a strong Bay Area contingent.

Californians for Affordable Housing released this report-back  on the August 5th action:

A new alliance of labor, community, affordable housing, and tenants rights organizations gathered in downtown San Francisco this morning to oppose the Governors’ by-right “trailer bill”.

Smooke_Joseph_By-RightRallySF_5Aug2016-63Board of Supervisors member Aaron Peskin joined representatives from ACCE SF, Oakland and Contra Costa County; Jobs with Justice SF, the SF Labor Council, SF Building Trades, Housing Rights Committee, Bill Sorro Housing Program, Senior and Disability Action, Tenants Together, Calle 24 Latino Cultural District, Latino Democratic Club, the Council of Community Housing Organizations, and the Manilatown Heritage Foundation to tell media that there is strong opposition from communities across the Bay Area to the Governor’s plan to allow corporations to overrun our communities.

Smooke_Joseph_By-RightRallySF_5Aug2016-42We rallied in the shadow of the Millennium Tower, which according to the SF Chronicle is one of the most luxurious residential towers in the world, and is quickly sinking into the Bay mud because of construction related issues.

Across the street from the Millennium, under construction, is the new Salesforce Tower which will be the tallest office tower in the western US. A contingent from the rally went to the office of Salesforce, the largest tech employer in San Francisco, to deliver a letter requesting a meeting with CEO Marc Benioff, in response to his recent sign-on in support of the Governor’s by-right bill.  Smooke_Joseph_By-RightRallySF_5Aug2016-133

 

 

Photo Credit: Joseph Smooke, [people.power.media].Smooke_Joseph_By-RightRallySF_5Aug2016-117