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(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)
(a) Report of Residential Hotel Status Form. The Department of Building Inspection shall make available a Report of Residential Hotel Status Form. The form shall request information regarding the status of the Residential Hotel’s compliance with this Chapter 41
and provisions of the Building or Housing Codes including:
(1) Residential Hotel Status:
(A) Total number of Residential Units and Tourist Units at the Residential Hotel;
(B) Unit numbers and locations of the Residential and Tourist Units;
(D) For vacant Residential Units, the last date when a Permanent Resident occupied the units and the rent rate when last occupied; and
(E) Date of last Annual Unit Usage Report.
(2) Property Status:
(A) Date of last inspection by the Department of Building Inspection;
(B) Notices of Violations, Abatement Orders, or any other Department of Building Inspection, Fire Department, or Department of Public Health enforcement actions within the last five years; and
(C) Disabled access features installed on the property.
(3) Such other information, if any, regarding compliance with this Chapter 41 and the Building or Housing Codes, as the Department of Building Inspection, in its discretion, decides to request on the form.
(b) Process for Obtaining Report of Residential Hotel Status. An owner or authorized agent seeking to sell or exchange a Residential Hotel shall complete and submit a Report of Residential Hotel Status Form to the Department of Building Inspection. The Department of Building Inspection shall evaluate the information in the form, verify information that corresponds with the Department’s records, and identify and annotate any information on the form that is inconsistent with the Department’s Records. The Department shall complete its review and issue the verified and annotated form as the Report of Residential Hotel Status within 10 business days of receiving the completed form. A Report of Residential Hotel Status shall be effective for a period of one year from the date of issuance, and shall contain therein the dates of issuance and expiration.
(c) Disclosure of Report of Residential Hotel Status to Buyer or Transferee. Starting 10 business days following the effective date of this Section 4.22, in addition to any applicable requirements in Chapter 3.5 of the Housing Code, prior to the sale or exchange of ownership for any Residential Hotel, the owner thereof, or their authorized agent, shall deliver a Department of Building Inspection-approved Report of Residential Hotel Status to the buyer or transferee of said Residential Hotel.
(d) Receipt of Report of Residential Hotel Status. Within 30 days of purchasing or otherwise receiving title to a Residential Hotel, the buyer or transferee shall file with the Department of Building Inspection, a receipt of Report of Residential Hotel Status, on a form furnished by said Department.
(Added by Ord. 99-19, File No. 170416, App. 5/24/2019, Eff. 6/24/2019)
(Former Sec. 41.22 added by Ord. 121-90, App. 4/12/90; redesignated as Sec. 41.23 by Ord. 99-19, File No. 170416, App. 5/24/2019, Eff. 6/24/2019; redesignated as Sec. 41.24 by Ord. 36-23, File No. 220815, App. 3/24/2023, Eff. 4/24/2023)
CODIFICATION NOTE
(a) A hotel owner or operator may seek a reasonable extension of the time during which the term “Tourist or Transient Use” means “any use of a guest room for less than a 7-day term of tenancy by a party other than a Permanent Resident” for a period longer than the two-year period set forth in Section 41.4, through the process described in subsections (b) and (c), below.
(b) The owner or operator may initiate an extension by submitting a request to the Building Inspection Commission (“Commission”) six months prior to the expiration of the two-year period set forth in Section 41.4. Commission staff shall amply publicize this deadline, to give notice to interested hotel owners of the provisions of this Section 41.23.
(c) The Commission shall consider the request at a public hearing and decide whether an extension (for the time requested, or for a different period of time) would be reasonable, according to the following factors:
(1) Total cost of the hotel owner or operator’s investments in the hotel;
(2) Length of time those investments have been in place;
(3) Suitability of the investments for residential hotel use; and
(4) Any other factors relevant to determining the owner or operator’s reasonable return on investments.
(Added by Ord. 36-23, File No. 220815, App. 3/24/2023, Eff. 4/24/2023)
(a) Nothing in this Chapter may be construed to supersede any other lawfully enacted ordinance of the City and County of San Francisco, except that definitions provided in this Chapter shall govern the enforcement of this Chapter.
(b) Clauses of this Chapter are declared to be severable and if any provision or clause of this Chapter or the application thereof is held to be unconstitutional or to be otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other provisions of this Chapter.