After working on legislation for more than a year, Board of Supervisors President David Chiu introduced his proposal Tuesday that he says will lead to the payment of the hotel tax and protect the housing stock from being transformed into de facto hotels.
Airbnb users, according to Chiu, range from renters who are just looking to rent out their apartment for a week or two to tenants or building owners who take multiple units off the market and effectively turn them into “year-round hotels.”
The debate strikes to the very heart of the ongoing conflicts between the tech industry and longtime residents who feel the economic pinch from a soaring cost of living, higher rents and more evictions. It also rekindles the debate from 2011, when the Board of Supervisors approved the tax break for companies hiring new employees in the mid-Market area.
Among the 27 labor groups negotiating new contracts with The City, Service Employees International Union Local 1021 has proposed for its estimated 12,000 members $356 million in increased costs to San Francisco during the next three years. About half of that would go toward raises and the remainder toward benefits such as free Wi-Fi and Muni passes, along with making part-time workers full time, according to the Department of Human Resources.
Mayor Ed Lee sparked a heated debate over Sunday meter enforcement when he said in his State of the City address in January that he wanted the practice to end.
However, only the San Francisco Municipal Transportation Agency’s board of directors can actually make that decision. The board meets Tuesday to discuss the agency’s budget proposal, including whether to scrap Sunday parking meter enforcement, which began in January 2013.
Agency officials and those who support alternatives to driving have hailed Sunday meter enforcement as a successful program based on smart transportation planning in that it decreases congestion, creates parking turnover and generates revenue.
On Wednesday, SFMTA Transportation Director Ed Reiskin said the board is faced with three options: It could eliminate the program, stop daytime enforcement and instead enforce a four-hour time limit or keep the program in place, but direct parking enforcement officers to other duties to reduce the citation issuance rate.
Since the program began, the agency has collected $3.6 million in parking meter revenue and issued 54,000 citations resulting in nearly $4 million in revenue from fines as of January. Meter violations are $74 downtown and $64 elsewhere.
San Francisco lawmakers took another step Tuesday toward blunting the impacts of evictions by making it much more expensive to oust tenants under a state law.
While San Francisco has become a hotbed for job creation that has boosted the local economy over the past few years, namely in the tech sector, the cost of living and housing has increased dramatically as well. Anti-displacement activists have seized on the Ellis Act, which allows building owners to evict tenants in order to get out of the rental business.
Tenants evicted under the Ellis Act were already entitled to a certain amount of compensation from their landlords, but now they will be able to receive tens of thousands of dollars more in relocation payments than they do under the existing law.
On Tuesday, the Board of Supervisors voted 9-2 to approve legislation that requires property owners in such eviction situations to pay the difference between the tenant’s current rent and what the tenant would have to pay for a similar apartment under current market conditions for two years.
“This provides working and middle-income people in San Francisco a fighting chance to be able to afford to stay here if they are evicted,” said Supervisor David Campos, who introduced the legislation.
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