San Francisco is poised to create a new priority in affordable housing lotteries for those tenants facing displacement in buildings where rent restrictions expire.
The Board of Supervisors Rules Committee Monday voted the plan out of committee. Supervisor Vallie Brown introduced the legislation, backed by Supervisor Aaron Peskin, to help tenants living at the Fillmore Center, whose affordable rent restrictions expired in December 2017. The Mayor’s Office of Housing has worked with the building owner ever since to prevent immediate rent hikes to market rates.
Under the deal, about 100 senior and disabled tenants received lifetime leases at their current affordable rents and another 100 tenants have until January 2025 before their rents go up to market rates.
Brown’s legislation was amended last week to ensure these tenants can use the priority in lotteries before their rents increase in about five years. To obtain the priority, the tenant facing the rent hikes in five years would have to show that market rents in the building exceed 40 percent of their household income.
The full board will vote on the legislation next week.
Since late 2015, 1,098 tenant applications have been filed for existing displaced tenant priorities in affordable housing lotteries, including 462 for Ellis Act evictions, 365 for owner move-in evictions and 78 for those displaced by fires.
The Fillmore Center is just one of a number of housing developments where financing was tied to affordable rent restrictions that would last between 20 and 30 years.
The new displacement priority could be used by tenants in similar situations at other sites.
At last week’s hearing, the Mayor’s Office of Housing estimated there were 15 buildings funded by the US Department of Housing and Urban Development and Low-Income Housing Tax Credits or the state with rent restrictions poised to expire on 1,584 units between 2021 and 2029 45 “inclusionary projects,” where a percentage of the on-site units at below-market rates totaling 514 units that will expire between 2028 and 2064.