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The Director of the Department of Building Inspection shall issue a permit to convert, provided that:
(a) The requirements of Section 41.12 have been met;
(b) Evidence of compliance with the requirements of Section 41.13 has been submitted. Satisfactory evidence of compliance may be:
(1) A certification of final completion or permit of occupancy on the replacement housing; or
(2) A receipt from the City Treasurer that the in-lieu payment determined by the Department of Real Estate has been received; and
(3) Evidence of compliance with the requirements of Section 41.17 herein.
(c) The proposed conversion or the use to which the unit would be converted is permitted by the City Planning Code.
(d) Concurrent with the issuance of a permit to convert, the Director of the Department of Building Inspection shall issue a new certificate of use which shall state the newly certified number of residential units and tourist units.
(Added by Ord. 121-90, App. 4/12/90; amended by Ord. 134-01, File No. 001926, App. 7/6/2001)
(a) Denial or approval of a permit application may be appealed to the Board of Permit Appeals, pursuant to Sections 8 et seq. Part III of the San Francisco Municipal Code.
(b) The owner or operator shall submit a statement under the penalty of perjury that he has notified all the affected permanent residents of his appeal and of the date, time and place of the hearing before the Board of Permit Appeals, seven calendar days prior to the scheduled hearing.
(c) The appellant shall have the burden of proving that the determination of the Director of the Department of Building Inspection is invalid.
(Added by Ord. 121-90, App. 4/12/90; amended by Ord. 134-01, File No. 001926, App. 7/6/2001)
(a) To apply for a permit to convert, an owner or operator of the hotel shall do the following:
(1) Any interested community organization and all permanent residents residing in said building at the time of an application for a permit to convert and thereafter shall be timely informed of all public hearings and administrative decisions concerning said conversion; said notice shall be posted by the owner or operator;
(2) A permanent resident has the right to occupy his/her residential unit for 60 calendar days from the issuance of the permit to convert;
(3) Owner or operator shall offer a permanent resident available comparable units in the building, or to any replacement housing provided pursuant to Subsection 41.13(a)(1) or (2);
(4) All displaced permanent residents are entitled to relocation assistance as provided for in subsection (b) below;
(5) Seven calendar days prior to the filing of an application for a permit to convert, the owner or operator shall notify, in writing, by personal service, or registered or certified mail, every permanent resident affected by the proposed conversion of his/her intent to convert designated units;
(6) The notification required by Subsection (5) above shall also inform the permanent residents of their rights under Subsections (1) through (4) above.
(b) Relocation Assistance.
(1) A permanent resident, who as a result of the conversion of his/her unit must relocate off site, shall be reimbursed the actual moving expenses not to exceed $300 or may consent to be moved by the owner or operator.
(3) A permanent resident displaced by partially completed conversion under the provisions of Section 41.7(c) shall be entitled to a displacement allowance of $1,000 per displaced person.
(Added by Ord. 121-90, App. 4/12/90)
(a) This section shall apply only to demolition of residential hotel buildings pursuant to an abatement order of the Director of Public Works or the Superior Court of the State of California, or demolition necessitated by major fires, natural causes or accidents where the cost of repair exceeds 50 percent of the replacement value of the building.
(b) Upon submission of an application for a demolition permit, the owner or operator shall post a copy of said application.
(c) Upon notification by the Central Permit Bureau that a demolition permit has been issued, the owner or operator shall post a notice explaining the procedure for challenging the issuance of the demolition permit to the Board of Permit Appeals.
(d) When issued a demolition permit, the owner or operator shall provide a written notice of the demolition within 10 calendar days of issuance of the permit to each residential permanent resident. Each permanent resident shall be notified in writing of his/her rights to relocation assistance and to occupy the same unit for a period of up to 60 days after issuance of the demolition permit.
(e) The subsequent issuance of a building permit for construction on the demolished site shall be conditioned on the owner or operator's agreement to replace, on a one-for-one basis, the demolished residential units as required by the provisions of Section 41.13. No building permit shall be issued until owner or operator complies with the provisions of Section 41.13.
(f) The conditions for issuance of a demolition permit set forth in subsection (e) above shall be recorded by the owner at the time of issuance of the demolition permit in order to provide notice of said conditions to all subsequent purchasers and interested parties.
(Added by Ord. 121-90, App. 4/12/90)
(a) Temporary Change of Occupancy.
(1) A tourist unit may be rented to a permanent resident, until voluntary vacation of that unit by the permanent resident or upon eviction for cause, without changing the legal status of that unit as a tourist unit.
(2) A permanent resident may be relocated for up to 21 days to another unit in the residential hotel for purposes of complying with the Building Code requirements imposed by the UMB Seismic Retrofit Ordinance, Ordinance No. 219-92, without changing the designation of the unit.
(3) A residential unit which is vacant at any time during the period commencing on May 1 and ending on September 30 annually may be rented as a tourist unit, provided that the owner or operator establishes, and the Department of Building Inspection confirms, that: (A) the residential unit was vacant due to voluntary vacation of a permanent resident or due to lawful eviction for cause after the permanent resident was accorded all the rights guaranteed by State and local laws during his/her tenancy, (B) the residential unit was legally occupied for at least 50% of the period commencing on October 1 and ending on April 30 of the previous year, unless owner or operator can produce evidence to the Department of Building Inspection explaining such vacancy to the satisfaction of the Department, including but not limited to such factors as repair or rehabilitation work performed in the unit or good-faith efforts to rent the unit at fair market value; (C) the residential unit shall immediately revert to residential use upon application of a prospective permanent resident; and (D) the owner or operator has not committed unlawful action as defined in this Chapter 41 within 12 months prior to this request.
25-percent Limit.
However, at no time during the period commencing on May 1 and ending on September 30 may an owner or operator rent for nonresidential use or tourist use more than 25% of the hotel’s total residential units unless the owner or operator can demonstrate that (A) the requirements of Section 41.19(a)(3) above are met, and (B) good-faith efforts were made to rent such units to prospective permanent residents at fair market value for comparable units and that such efforts failed. Owners or operators who seek to exceed this limit must request a hearing pursuant to Section 41.11(b) above and the decision whether to permit owners or operators to exceed this limit is within the discretion of the hearing officer.
(b) Special Requirements for Hearings on Tourist Season Rental of Residential Units. Where an owner or operator seeks a hearing in order to exceed the limit on tourist season rental of vacant residential units pursuant to Section 41.19(a)(3), the requirements of Section 41.11(b)(1), (b)(2), and (b)(3) above shall be applicable except as specifically modified or enlarged herein:
(1) Notice of Hearing. Notice of hearing as provided in Section 41.11(b)(1) above shall be given within 15 calendar days. The notice requirements for the owner or operator shall also be applicable to any interested party who has submitted a prior written request to the Director of the Department of Building Inspection to be notified of such hearings.
(2) Time of Hearing. The hearing shall be held within 30 days of the submission of the owner or operator's written request for hearing.
(3) Burden of Proof. Burden of proof is on the owner or operator.
(4) Interested Party. Any interested party shall be deemed a "party to the hearing" for purposes of Section 41.11(b)(1).
(5) Determination of the Hearing Officer. Based upon the evidence presented at the hearing, conducted in accordance with Section 41.11(b)(3) above, the hearing officer shall make findings as to (A) whether the residential unit was vacant due to voluntary vacation of a permanent resident or was vacant due to lawful eviction, (B) whether the residential unit was occupied for at least 50% of the period commencing on October 1st and ending on April 30 of the previous year, (C) whether the owner or operator has committed unlawful action under this Chapter 41 within 12 months prior to this request, and (D) whether the owner or operator made good-faith efforts to rent vacant residential units to prospective permanent residents at no more than fair market value for a comparable unit during the tourist season and yet was unable to secure such rentals. Good-faith efforts shall include, but not be limited to, advertising the availability of the residential units to the public. In determining fair market value of the residential units, the hearing officer shall consider any data on rental of comparable units, as defined in Section 41.4 herein.
(6) Decision. The hearing officer shall render a written decision and findings within 10 working days of the hearing.
(7) Effect of Decision. The hearing officer's decision shall remain in effect for the tourist season for which the owner or operator requested the hearing. If the owner or operator wishes to exceed the 25 percent limit during any subsequent tourist season, a new written request for hearing must be submitted to the Director of the Department of Building Inspection.
(8) Construction. The purpose of this Section 41.19(b) is to supplement or modify provisions of Section 41.11(b) (1) through (b)(3). Unless otherwise specifically modified, all provisions of Sections 41.11(b)(1) through (b)(3) are deemed applicable to hearings concerning the tourist season limitation on rental of vacant residential units.
(c) Winter Rentals. A residential unit which is vacant at any time during the period commencing on October 1st and ending on April 30th annually may be rented as a tourist unit, provided that:
(1) Such owner or operator has been permitted to rent residential units as tourist units in excess of 25 percent of the residential units pursuant to Section 41.19(a)(3) above;
(2) The owner or operator has not committed unlawful action as defined in this Chapter within 12 months prior to the time of this request;
(3) A residential hotel may not rent in excess of 33 percent of the total number of residential units or 20 residential units, whichever is less, pursuant to this subsection;
(4) Applicants to temporarily convert residential units pursuant to this subsection shall submit applications to the Department of Public Works, in accordance with rules and regulations promulgated by the Department of Public Works;
(5) A maximum of 60 residential units may be approved per year to be rented as tourist units or non-residential units pursuant to this Subsection 41.19(c). In the event that the number of such applications exceeds 60 residential units, the Department of Public Works shall establish a lottery system based on priority ranking where preference shall be accorded to residential hotel owner who have been eligible more frequently than other hotel owners for temporary conversion pursuant to Subsection 41.19(a)(3) above;
(6) Such nonresidential use is permitted by the zoning for such residential hotel; and
(7) No application for such temporary conversion shall be approved by the Department of Public Works to fill the unused portion of the 60 residential unit limitation for the previous year.
*Editor’s Note:
Ord. 56-56-2020 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) Unlawful Actions. It shall be unlawful to:
(1) Change the use of, or to eliminate a residential hotel unit or to demolish a residential hotel unit except pursuant to a lawful abatement order, without first obtaining a permit to convert in accordance with the provisions of this Chapter 41;
(2) Rent any residential unit for Tourist or Transient Use except as permitted by Section 41.19 of this Chapter;
(3) Offer for rent for Tourist or Transient Use a residential unit except as permitted by this Chapter.
(b) Hearing for Complaints of Unlawful Conversions. Upon the filing of a complaint that an unlawful conversion has occurred and payment of the required fee, the Director of the Department of Building Inspection shall schedule a hearing pursuant to Section 41.11(b). The complainant shall bear the burden of proving that a unit has been unlawfully converted. The hearing officer shall consider, among others, the following factors in determining whether a conversion has occurred:
(1) Shortening of the term of an existing tenancy without the prior approval of the permanent resident;
(2) Reduction of the basic services provided to a residential unit intended to lead to conversion. For the purpose of this subsection (b)(2), basic services are defined as access to common areas and facilities, food service, housekeeping services, and security;
(3) Repeated failure to comply with orders of the Department of Building Inspection or the Department of Public Health to correct code violations with intent to cause the permanent residents to voluntarily vacate the premises;
(4) Repeated citations by the Director of the Department of Building Inspection or the Department of Public Health for Code violations;
(5) Offer of the residential units for nonresidential use or tourist use except as permitted in this Chapter 41;
(7) Repeated posting by the Director of the Department of Building Inspection of notices of apparent violations of this Chapter 41 pursuant to Section 41.11(c) above.
(c) Civil Penalties. Where the hearing officer finds that an unlawful conversion has occurred, the Director of the Department of Building Inspection shall impose a civil penalty of up to $500 per day for each unlawfully converted unit from the day the complaint is filed until such time as the unit reverts to its authorized use, for the first unlawful conversion at a Residential Hotel within a calendar year. For the second and any subsequent unlawful conversions at the same Residential Hotel within the same calendar year, the Director of the Department of Building Inspection shall impose a civil penalty of up to $750 per day for each unlawfully converted unit from the day the complaint is filed until such time as the unit reverts to its authorized use. The Director may also impose penalties upon the owner or operator of the hotel to reimburse the City or the complainant for the costs, including reasonable attorneys’ fees, of enforcement of this Chapter. The hearing officer’s decision shall notify the parties of this penalty provision and shall state that the Director of the Department of Building Inspection is authorized to impose the appropriate penalty by written notification to both the owner and operator, requesting payment within 30 days. If the penalty imposed is not paid, a lien to secure the amount of the penalty will be recorded against the real property pursuant to the provisions of Section 41.20(d) of this Chapter 41.
(d) Lien Proceedings. If any penalty imposed pursuant to Sections 41.10(d), 41.10(f), 41.10(g), 41.11(f), or 41.20(c) is not received within the required time period, the Director of the Department of Building Inspection shall initiate proceedings under Article XX of Chapter 10 of the San Francisco Administrative Code to make the penalty, plus accrued interest, a lien against the real property regulated under this Chapter. Except for the release of lien recording fee authorized by Administrative Code Section 10.237, all sums collected by the Tax Collector pursuant to this ordinance shall be held in trust by the Treasurer and distributed as provided in Section 41.8(e) of this Chapter.
(e) Civil Action. An interested party may institute a civil proceeding for injunctive relief and damages. The Director of the Department of Building Inspection may institute a civil proceeding for injunctive relief. Counsel for the interested party shall notify the City Attorney's office of the City and County of San Francisco of any action filed pursuant to this Section. In determining whether an unlawful conversion has occurred, the court may consider, among other factors, those enumerated in Section 41.20(b) of this Chapter. The interested party instituting a civil proceeding, or the City suing to enforce this Chapter, if prevailing parties, shall be entitled to the costs of enforcing this Chapter, including reasonable attorney's fees, pursuant to an order of the Court.
(Added by Ord. 121-90, App. 4/12/90; amended by Ord. 322-00, File No. 001917, App. 12/28/2000; Ord. 134-01, File No. 001926, App. 7/6/2001; Ord. 38-17,* File No. 161291, App. 2/17/2017, Eff. 3/19/2017; Ord. 56-20, File No. 191258, App. 4/10/2020, Eff. 5/11/2020; Ord. 36-23, File No. 220815, App. 3/24/2023, Eff. 4/24/2023)
*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) The Department of Building Inspection shall prepare and submit to the Board of Supervisors an annual status report containing the following:
(1) Current data on the number of residential hotels and the number of residential units in each of the residential hotels in the City and County of San Francisco, including, to the extent feasible, information regarding rents, services provided, and violations of the City's Codes;
(2) Current data on the number of residential hotel units converted pursuant to a permit to convert;
(3) Current data on the number of hotel units demolished or eliminated due to code abatement proceedings and fire;
(4) Current data on the number of residential hotel units illegally converted;
(5) Current data on the number of replacement housing units rehabilitated or constructed;
(6) A summary of the enforcement efforts by all City agencies responsible for the administration of this Chapter; and
(7) An evaluation of the workability and effectiveness of the permitted temporary change of occupancy procedures and winter rentals in Section 41.19 herein; and
(8) A report on expenditures from the San Francisco Residential Hotel Preservation Fund Account.
(b) The Economic and Social Policy Committee of the Board of Supervisors shall conduct a hearing on the annual report submitted by the Department of Building Inspection and shall recommend appropriate actions to be taken by the Board of Supervisors.
(c) The Department of Building Inspection should establish a San Francisco Residential Hotel Operators Advisory Committee composed of:
— | 3 members nominated by the San Francisco Hotel Association (for-profit operators); |
— | 3 members nominated by the Golden Gate Hotel Association (for-profit operators); |
— | 2 members nominated by the Council of Community Housing Organizations (nonprofit hotel operators); |
— | Deputy Mayor for Housing. |
The committee shall meet no less than once every three months to advise the Mayor's Office of Housing on matters including, but not limited to:
(1) Proposed revisions to this ordinance;
(2) Programs that various City agencies (i.e. Mayor's Office of Housing, Department of Social Services, etc.) should develop to assist the City's residential hotel operators;
(3) Any state or federal laws the City should support, oppose or seek to revise that impact residential hotel operators;
(4) Any new City, State or Federal programs the City shall encourage that would provide financial or technical support or assistance to San Francisco Residential Hotel Operators.
(Added by Ord. 121-90, App. 4/12/90; amended by Ord. 134-01, File No. 001926, App. 7/6/2001)
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