City Hall
1 Dr. Carlton B. Goodlett
Place
San Francisco, CA 94102-
4689
City and County of San Francisco
Legislation Details
File #:
Version:
2
020936
Name:
Legislative Analyst Request - Experience of Santa
Monica with TORCA Legislation
Status:
Type:
Motion
Passed
File created:
In control:
5/28/2002
Board of Supervisors
On agenda:
Final action:
6/3/2002
6/3/2002
Enactment date:
Enactment #:
Title:
Motion asking the Legislative Analyst to analyze how the process for conversion of rental units to
ownership units will take place under the process that would be created under this legislation, and
compare this to the process that currently is in place under Article 9 of the Subdivision code. In
particular, analyze how the process for conversion of rental units to ownership units will take place
under this initiative ordinance, and compare this to the process that currently is in place for
conversions under Article 9 of the Subdivision code. Where the HOPE conversion process differs with
the provisions of the Article 9 conversion process, please identify the function and purpose of the
Article 9 section in question. In addition, please assess how this legislation changes timelines for
processing applications for conversions, what affect such changes in timelines may have on the ability
of City agencies in fulfilling their responsibilities under the initiative ordinance. Also, please analyze
how efficiently and effectively this initiative ordinance would be in allocating among City departments
the administration of the responsibilities and duties that it imposes. Please also answer the following
questions:
1) Based on an analysis of other jurisdictions that have enacted similar measures, are the more likely
beneficiaries of such a policy existing tenants living in the units to be subdivided, or prospective
buyers who will move into the units after offering incentives for existing tenants to move out of their
apartments; 2) How will the measure impact the availability in San Francisco of what many business
leaders refer to as "workforce housing," or housing affordable to the middle class; 3) How might such
a measure be phased in as a trial program over time, so that information on its impacts on the
housing market may be assessed before it is expanded, and what types of information and processes
to collection information would be necessary to assess such impacts; 4) Does this measure contain
effective measures to discourage speculation, and what would such measures need to contain to
effectively discourage speculation; 5) What would be the effect of allowing conversions on all
buildings, regardless of size, and what are the demographic characteristics of tenant populations in
different size buildings; 6) What effect would the measure have on the availability of affordable
housing, especially affordable rental housing, in the City, and would it be possible to impose an
affordable housing conversion fee that would adequately mitigate any potential negative impacts on
this supply; 7) How does the measure deal with the question of whether tenants with lifetime leases
continue to have access to and enjoyment of common areas in buildings that have been subdivided
through the HOPE conversion process; 8) Does the measure contain any requirement for tenant
participation beyond the simple signing of an intent to purchase, and how would the addition of
provisions requiring further participation by tenants to make the subdivision effective (such as signed
purchase agreements for units) affect the ability of the measure to realize its purported goals; 9) What
are the potential financial benefits of this measure for owners of existing rental buildings; What would
be the estimated affect of this measure on the number of rent controlled units in the City; 10) What is
the possibility that any provisions of this measure will be struck down in court, and if certain provisions
are struck down what would be the overall effect on the remainder of the measure; 11) What was the
range of and average of the down payments of tenants who bought their units; 12) What was the
range of and average of the purchase price for the units purchased by tenants; 13) What are the
mortgage payments of the purchasing tenants now as opposed to their rent payments prior to
purchase as well as opposed to the average rent payment by non-purchasing tenants; 14) What is the
current equity increase of tenants who decided to buy in 1985; 15) How much have tenant purchased
condo values jumped since conversion; 16) Were those tenants in a building that converted who did
not purchase their units given "rent control" protection; Were they given protections against owner-
move-in evictions or Ellis Act evictions; Were these protections ever challenged in court; what was the
result.
Please analyze the experience of the City of Santa Monica with legislation referred to as TORCA, the
Tenants' Ownership Rights Charter Amendment, which was in effect in that City from 1984 to 1996. In
particular, please analyze the degree to which this legislation increased the number of tenants
purchasing the rental units in which they resided prior to conversions of their units. In addition, to the
extent possible, also analyze the effect of this legislation on the number and types of conversions of
units from rental to ownership while the legislation was in effect and compare this to the same data
before and after the legislation was in effect. Also analyze the effect of this legislation on the number
of rental units protected by Santa Monica's version of rent control. Please include any data, analysis,
or reports prepared by the City of Santa Monica and its departments related to their experience with
this law.
Sponsors:
Jake McGoldrick
Attachments:
Action By
Date
Action
Result
Ver.
ASSIGNED
President
5/28/2002
1
AMENDED, AN AMENDMENT OF THE
WHOLE BEARING NEW TITLE
Board of Supervisors
6/3/2002
1
Pass
APPROVED AS AMENDED
Board of Supervisors
6/3/2002
2
Pass