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(a) Fees. The owner or operator shall pay the filing fees to the Department of Building Inspection to cover its costs of investigating and reporting on eligibility, as set forth in.1
Section 110A, Hotel Conversion Ordinance Fee Schedule, Table 1A-Q, of the Building Code. Further, the party that brings an unsuccessful challenge to a report pursuant to this Chapter 41 shall be liable for the charge in Section 110A, Hotel Conversion Ordinance Fee Schedule, Unsuccessful Challenge, Table 1A-Q of the Building Code. Fees shall be waived for an individual who files an affidavit under penalty of perjury stating that he or she is an indigent person who cannot pay the filing fee without using money needed for the necessities of life.
(b) Hearing.
(1) Notice of Hearing. Whenever a hearing is required or requested under this Chapter 41, the Director of the Department of Building Inspection shall, within 45 calendar days, notify the owner or operator of the date, time, place, and nature of the hearing by registered or certified mail. The Director of the Department of Building Inspection shall appoint a hearing officer. Notice of such a hearing shall be posted by the Department of Building Inspection. The owner or operator shall state under oath at the hearing that the notice remained posted for at least 10 calendar days prior to the hearing. Said notice shall state that all permanent residents residing in the hotel may appear and testify at the public hearing, provided that the Department of Building Inspection is notified of such an intent 72 hours prior to the hearing date.
(2) Pre-hearing Submission. No less than three working days prior to any hearing, parties to the hearing shall submit written information to the Department of Building Inspection including, but not limited to, the following: the request or complaint, the statement of issues to be determined by the Hearing Officer; and a statement of the evidence upon which the request or complaint is based.
(3) Hearing Procedure. If more than one hearing for the same hotel is required, the Director of the Department of Building Inspection shall consolidate all of the appeals and challenges into one hearing; however, if a civil action has been filed pursuant to Section 41.20(e) of Chapter 41, all hearings on administrative complaints of unlawful conversions involving the same hotel shall be abated until such time as final judgment has been entered in the civil action; an interested party may file a complaint in intervention. The hearing shall be tape recorded. Any party to the appeal may, at his/her own expense, cause the hearing to be recorded by a certified court reporter. The hearing officer is empowered to issue subpoenas upon application of the parties seven calendar days prior to the date of the hearing. During the hearing, evidence and testimony may be presented to the hearing officer. Parties to the hearing may be represented by counsel and have the right to cross-examine witnesses. All testimony shall be given under oath. Written decision and findings shall be rendered by the hearing officer within 20 working days of the hearing. Copies of the findings and decision shall be served upon the parties to the hearing by registered or certified mail. A notice that a copy of the findings and decisions is available for inspection between the hours of 9:00 a.m. and 5:00 p.m. Monday through Friday shall be posted by the owner or operator.
(4) Administrative Review. Unless otherwise expressly provided in this Chapter 41, any decision of the hearing officer shall be final unless a valid written appeal is filed with the Board of Appeals within 15 days following the date of the hearing officer’s written determination. Such an appeal may be taken by any interested party as defined by Section 41.4 herein.
(c) Inspection. The Director of the Department of Building Inspection shall have the authority to issue administrative subpoenas as necessary or appropriate to conduct inspections pursuant to this Chapter 41. The Director of the Department of Building Inspection shall conduct, from time to time, on-site inspections of the daily logs, other supporting documents, including the graphic floorplan, and units listed as vacant in the daily logs, to determine if the owner or operator has complied with the provisions of this Chapter. In addition, the Director of the Department of Building Inspection or the Director’s designee shall conduct such an inspection as soon as practicable upon the request of a current or former occupant of the hotel. If, upon such an inspection, the Director or Director’s designee determines that an apparent violation of the provisions of this Chapter has occurred, the Director or designee shall post a notice of apparent violation informing the permanent residents of the hotel thereof, or shall take action as set forth in Section 41.11(d) and (e) below. This notice shall remain posted until the Director of the Department of Building Inspection, or the Director’s designee, determines that the hotel is no longer in violation of the provisions of this Chapter.
(d) Criminal Penalties for Violations. Any person or entity wilfully failing to maintain daily logs or provide and maintain receipts as provided in Sections 41.9(a) and (b) of this Chapter 41, or failing to post materials as provided in Sections 41.6(a), (c), (d), and (f), 41.9(b), 41.10(b), (g), and (h), 41.11(b) (3), 41.12(b)(10), and 41.18(b) and (c) of this Chapter or wilfully providing false information in the daily logs, shall be guilty of an infraction for the first such violation or a misdemeanor for any subsequent violation, and the complaint charging such violation shall specify whether the violation charged is a misdemeanor or an infraction.
If charged as an infraction, the penalty upon conviction therefor shall be not less than $100 or more than $500.
If charged as a misdemeanor, the penalty upon conviction therefor shall be a fine of not less than $500 or more than $1,000 or imprisonment in the county jail, not exceeding six months, or both fine and imprisonment.
Every day such violation shall continue shall be considered as a new offense.
For purposes of Sections 41.11(d) and (e), violation shall include, but not limited to, intentional disobedience, omission, failure or refusal to comply with any requirement imposed by the aforementioned Sections or with any notice or order of the Director of the Department of Building Inspection or the Director of Public Works regarding a violation of this Chapter.
(e) False Information Misdemeanor. It shall be unlawful for an owner or operator to wilfully provide false information to the Director of the Department of Building Inspection or the Director’s designees. Any owner or operator who files false information shall be guilty of a misdemeanor. Conviction of a misdemeanor hereunder shall be punishable by a fine of not more than $500 or by imprisonment in the County Jail for a period not to exceed six months, or by both.
(f) The Director of the Department of Building Inspection may impose a penalty of $500 per violation for failure to maintain daily logs or for failure to maintain and provide receipts to occupants as required under Section 41.9 above and for failure to post materials as required under Sections 41.6(a), (c), (d), and (f), 41.9(b), 41.10(b), (g), and (h), 41.11(b) (3), 41.12(b)(10), and 41.18(b) and (c). In order to impose such penalties, the Director shall notify both the owner and operator by certified mail that the Director is imposing the penalty or penalties, which must be paid within 30 days of the mailing of the notification. The written notification shall state that if the penalty is not paid, a lien to secure the amount of the penalty will be recorded against the real property pursuant to Section 41.20(d) of this Chapter 41.
(g) Costs of Enforcement. The Department of Building Inspection shall be entitled to recover costs for enforcement as provided in Building Code Section .7(d).
(h) Inspection of Records. The Department of Building Inspection shall maintain a file for each residential hotel which shall contain copies of all applications, exemptions, permits, reports, and decisions filed pursuant to the provisions of this Chapter 41. All documents maintained in said files, except for all tax returns and documents specifically exempted from the California Public Records Act, shall be made available for public inspection and copying.
(i) Promulgation of Rules and Regulations. The Director of the Department of Building Inspection shall propose rules and regulations governing the appointment of an administrative officer and the administration and enforcement of this Chapter 41. After reasonable notice and opportunity to submit written comment are given, final rules and regulations shall be promulgated.
CODIFICATION NOTE
*Editor’s Note:
Ord. 56-20 repealed Ord. 38-17, restoring the text of this Section as it existed prior to adoption of that ordinance, and then enacted amendments to that text.
(a) Any owner or operator, or his/her authorized agent, of a residential hotel may apply for a permit to convert one or more residential units by submitting an application and the required fee to the Central Permit Bureau.
(b) The permit application shall contain the following information:
(1) The name and address of the building in which the conversions are proposed and of the building where replacement housing will be located; and
(2) The names and addresses of all owners or operators of said buildings; and
(3) A description of the proposed conversion including the specific method under Section 41.13(a) that the owner or operator selects as the nature of the conversion, the total number of units in the building, and their current uses; and
(4) The room numbers and locations of the units to be converted; and
(5) Preliminary drawings showing the existing floor plans and proposed floor plans; and
(6) A description of the improvements or changes proposed to be constructed or installed and the tentative schedule for start of construction; and
(7) The current rental rates for each residential unit to be converted or, if currently unoccupied, the most recent rental rate when last occupied; and
(8) The length of tenancy of the permanent residents affected by the proposed conversion; and
(9) A statement regarding how one-for-one replacement of the units to be converted will be accomplished, citing the specific provision(s) of Section 41.13(a) the application has selected for replacement, and including sufficiently detailed financial information, such as letters of intent and contracts, establishing how the owner or operator is constructing or causing to construct replacement housing if replacement is to be provided off-site; and
(10) A declaration under penalty of perjury from the owner or operator stating that he/she has complied with the provisions of Section 41.14(b) below and his/her filing of a permit to convert. On the same date of the filing of the application, a notice that an application to convert has been filed shall be posted until a decision is made on the application to convert.
(c) Upon receipt of a completed application to convert or demolish, the Department of Building Inspection shall send the application to the Planning Department for review and shall mail notice of such application to interested community organizations and such other persons or organizations who have previously requested such notice in writing. The notice shall identify the hotel requesting the permit, the nature of the permit, the proposal to fulfill the replacement requirements of Section 41.13 herein, and the procedures for requesting a public hearing. The owner or operator shall post a notice informing permanent residents of such information upon submission of a complete application.
(d) Any interested party may submit a written request within 20 days of the date that the Department of Building Inspection mailed the notice pursuant to subsection (c) above to the Planning Commission to schedule and conduct a public hearing on the proposed conversion in order to solicit public opinion on whether to approve or deny a permit to convert or demolish residential units and to determine whether proposed replacement units are “comparable units” as defined in Section 41.4 herein.
*Editor’s Note:
Ord. 56-20 repealed Ord. 38-17, restoring the text of this Section as it existed prior to adoption of that ordinance, and then enacted amendments to that text.
(a) Prior to the issuance of a permit to convert, the owner or operator shall provide one-for-one replacement of the units to be converted by one of the following methods:
(1) Construct or cause to be constructed a comparable unit to be made available at comparable rent to replace each of the units to be converted; or
(2) Cause to be brought back into the housing market a comparable unit from any building which was not subject to the provisions of this Chapter 41; or
(3) Construct or cause to be constructed or rehabilitated apartment units for elderly, disabled, or low-income persons or households which may be provided at a ratio of less than one-to-one; or construct or cause to be constructed transitional housing which may include emergency housing. The construction of any replacement housing under this subsection shall be subject to restrictions recorded against title to the real property and be evaluated by the Planning Commission in accordance with the provisions of Section 303 of the Planning Code. A notice of said Planning Commission hearing shall be posted by the owner or operator 10 calendar days before the hearing; or
(4) Pay to the City and County of San Francisco an amount equal to 80% of the cost of construction of an equal number of comparable units plus site acquisition cost. All such payments shall go into a San Francisco Residential Hotel Preservation Fund Account. The Department of Real Estate shall determine this amount based upon two independent appraisals; or
(5) Contribute to a public entity or nonprofit organization, which will use the funds to construct comparable units, an amount at least equal to 80% of the cost of construction of an equal number of comparable units plus site acquisition cost. The Department of Real Estate shall determine this amount based upon two independent appraisals. In addition to compliance with all relevant City ordinances and regulations, the public entity or nonprofit organization and the housing development proposal of such public entity or nonprofit organization shall be subject to approval by the Mayor’s Office of Housing and Community Development.
(A) Such contribution shall be paid to the approved public entity or nonprofit organization in installments from an escrow account supervised by the Mayor’s Office of Housing, upon application by such public entity or nonprofit organization to the Mayor’s Office of Housing, for specified expenditures, including but not limited to site acquisition costs, architect’s fees, and construction costs; such payment shall be approved by the Mayor’s Office of Housing prior to release of funds.
(B) The permit to convert shall be issued by the City when owner or operator deposits the full amount of funds in an escrow account described in subsection 41.13(a)(5)(A) above, or provides other form of nonrefundable security acceptable to the City Attorney and the Mayor’s Office of Housing.
(C) In the event that the public entity or nonprofit organization is unable to complete construction of the replacement housing, any unpaid amounts shall be released to the City. All such funds shall go into a San Francisco Residential Hotel Preservation Fund Account.
(b) Any displaced permanent resident relocated to replacement units provided under Subdivision (a) above shall be deemed to have continued his occupancy in the converted unit for the purpose of administering Subsection (k) of Section 37.2, San Francisco Administrative Code (San Francisco Rent Stabilization and Arbitration Ordinance).
(c) Any replacement units shall continue to be subject to the provisions of this Chapter.
(d) In the event that a completed application for a permit to convert is filed by a hotel owner or operator no later than the effective date of this amended Chapter, and such hotel owner or operator elects to provide one-for-one replacement of the residential units pursuant to Section 41.13(a) (4) or Section 41.13(a) (5) herein, the hotel owner or operator shall be obligated to pay to the City and County of San Francisco an amount equal to 40 percent of the cost of construction of an equal number of comparable units plus site acquisition cost, provided that such hotel owner or operator shall pay such amount to the City or provide to the City security for such payment in a form satisfactory to the Mayor’s Office of Housing and the City Attorney within 90 days following the date that the Department of Building Inspection determines that the application for a permit to convert is complete, or, if necessary, 10 days following final action, including any appeals, by the Planning Commission or appellate body, or 10 days following the Department of Real Estate’s determination of such amount, whichever occurs latest. In the event that a hotel owner or operator elects to provide one-for-one replacement pursuant to Section 41.13(a)(2) or (a)(5) herein and the Mayor’s Office of Housing has not approved a proposal or organization thereunder prior to the effective date of this amended Chapter, the Department of Building Inspection shall not reject such application as incomplete for such lack of information. If a hotel owner or operator applies for a permit to convert using the one-for-one replacement option described in 41.13(a)(2) or (a)(5) and the Mayor’s Office of Housing does not approve a housing development proposal or a nonprofit organization, or such project fails to progress through no fault of the owner or operator, such applicant shall be permitted to provide one-for-one replacement pursuant to Section 41.13 (a)(4) at 40 percent of the cost of construction of an equal number of comparable units plus site acquisition costs, provided that such applicant files the application under Section 41.13(a)(2) or (a)(5) no later than the effective date of this amended Chapter. The hotel owner or operator shall identify such housing proposal or nonprofit organization within 180 days of the effective date of this amended Chapter. In the event that the Mayor’s Office of Housing finds that the permit applicant has acted in good faith in seeking a project, the Mayor’s Office of Housing may exercise its reasonable discretion to extend the provisions of this subsection for an additional 180 days. In the event that a project approved by the Mayor’s Office of Housing fails to move forward through no fault of the permit applicant, the applicant may substitute another project within six months of being notified by the Mayor’s Office of Housing of a failure of the prior project to move forward. The Mayor’s Office of Housing may extend this period for an additional 180 days to identify such new proposal. The City shall issue a permit to convert under this subsection 41.13(d) only if the hotel owner or operator has either paid the 40-percent in lieu fee to the City pursuant to Section 41.13(a)(4) herein or complied with the requirements of Sections 41.13(a)(2) or (a)(5) as applicable. In the event that a hotel owner or operator has not complied with any of these requirements and the City has not issued a permit to convert or if the Mayor’s Office of Housing has not found the hotel owner or operator has acted in good faith in seeking a project pursuant to subsections 41.13(a)(2) or (a)(5) or this subsection, no later than 180 days following the effective date of this amended Chapter, or such later date as herein provided, this Subsection 41.13(d) shall no longer be applicable, City shall refund any amounts deposited as security pursuant to the terms herein, and such hotel owner or operator shall comply with all applicable terms of this Chapter.
(e) When a residential unit is approved for conversion to another use pursuant to the provisions of Subsection 41.13(a)(2), (a)(4) or (a)(5) above, such unit shall not be deemed to be reconverted into a residential unit regardless of any interim uses after payment as set forth in Subsections 41.13(a)(2), (a)(4) or (a)(5).
(f) The funds deposited in the Residential Hotel Preservation Fund may be used to (i) create new affordable rental housing to replace the affordable housing lost as a result of the conversion or demolition of residential hotel units subject to this Ordinance and (ii) defend the Ordinance against legal challenge, including the legal costs and attorney’s fees incurred in the defense.
*Editor’s Note:
Ord. 56-20 repealed Ord. 38-17, restoring the text of this Section as it existed prior to adoption of that ordinance, and then enacted amendments to that text.
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