Purpose. | |
Modification to Existing Code. | |
Definitions. | |
Application. | |
Limitation on Number of Conversions. | |
Mayor's Office of Housing:Certificate of Clearance; Conversion Oversight and Monitoring. | |
Administrative Fees | |
Tenant Purchase Rights. | |
Tenant Lifetime Lease Rights. | |
Formula for Determining Initial Purchase Price of Member Share and Member Carrying Charge for Qualifying Households. | |
Subdivider's Notice of Intent to Convert. | |
Tenant Opt-In. | |
Sale of Vacant Units. | |
Intent to Purchase Form. | |
Income Certification. | |
Additions and Deletions to the Application Packet for Subdivisions Under this Article. | |
Action on Application Packet; Conditions of Approval. | |
Resale Formula. | |
Final Maps and Parcel Maps; Deed Restrictions. | |
This Article 11 is enacted to establish a method for converting parcels containing 2 or more existing residential units into limited equity housing cooperatives. The conversions allowable under this Article 11 are intended to:
(a) promote the expansion of residential ownership opportunities for existing tenants by making conversions into limited equity housing cooperatives possible at a level they can afford because limited equity housing cooperatives are widely recognized as vehicles to:
(1) provide affordable home ownership opportunities for very low and low-income individuals and families.
(2) allow low-income individuals and families the ability to acquire a limited ownership interest in a building.
(3) participate, through the voting rights granted to each share owner, in the management of the limited equity cooperative, and
(4) restrict the annual appreciation of membership shares to increases not to exceed 10 percent of the original consideration paid for the share in order to provide appreciation for the share owner and continued affordability for other low-income households at resale;
(b) balance the interests of home ownership with the need to protect existing tenants from displacement;
(c) increase the availability of affordable home ownership opportunities citywide;
(d) target affordability levels that reflect the needs and income distribution of the City's residents; and
(e) improve the physical condition of the converted housing stock without fueling neighborhood gentrification.
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
This Article modifies applicable provisions of the San Francisco Subdivision Code ("Code") for all conversion applications submitted under Section 1399.17. Article 9 of the Code does not apply to conversions to stock cooperatives under this Article except as expressly noted herein, but would apply in the event that a stock cooperative formed under this Article seeks to convert to a condominium. The provisions of Sections 1332(a), 1341 and 1385 of the Code do not apply to conversions under this Article. Subdivisions permitted by this Article shall not constitute an increase in the limits of Section 1396 for purposes of Sections 1341A(2) or 1385A(2).
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
(a) "Carrying Charge" shall refer to the sole monthly charge to Resident Members covering that Resident Member's share of the operating and maintenance costs including, but not limited to, debt service on mortgages held by the Limited Equity Housing Cooperative, property taxes, management fees, maintenance costs, insurance premiums, common utilities, and contributions to reserve funds. Carrying Charge shall not refer to utilities solely attributable to the unit occupied by the Resident Member.
(b) "Department" shall refer to the Department of Public Works.
(c) "Director" shall refer to the Director of the Department of Public Works.
(d) "Limited Equity Housing Cooperative" shall refer to a non profit public benefit corporation formed as a limited equity housing cooperative as defined under California Civil Code section 1351(m) and California Health and Safety Code section 33007.5.
(e) "Maximum Allowable Allocation" shall mean the maximum number of unit conversions permitted per year, beginning on June 1st of each year, and shall equal 200 units per year plus any unused allocation from the previous year. Notwithstanding the foregoing, the number of unit conversions under this Article shall not exceed 400 in any year. Units or member shares located in City-owned buildings shall not be counted as part of the Maximum Allowable Allocation.
(f) "Maximum Annual Rent" shall mean the maximum rent that a Limited Equity Housing Cooperative may charge any Resident Tenant who is also a Qualifying Household as rent or any Member who is also a Qualifying Household as an annual Carrying Charge for the calendar year as published by the Mayor's Office of Housing. The maximum annual rent for a unit of the size indicated below shall be no more than 30 percent of the annual gross income for a Qualifying Household as defined in this Section, and as adjusted for the household size indicated below as of the first date of the tenancy or purchase of the Member Share:
Number of Bedrooms | Number of Persons in Household |
0 | 1 |
1 | 2 |
2 | 3 |
3 | 4 |
4 | 5 |
(g) "Member Share" shall refer to a share of stock in the Limited Equity Housing Cooperative that provides the owner(s) with an exclusive right of occupancy to a portion of the residential property converted under this Article.
(h) "Qualifying Household" shall refer to the residents of a unit in the residential property to be converted who, taken together as a household, earn less than eighty (80) percent of the San Francisco Median Income, as defined by the San Francisco Mayor's Office of Housing, and at least one of whom has occupied the unit as his or her primary residence for at least one year prior to the date of submission of the Certificate of Clearance.
(i) "Permitted Eviction" shall refer to any attempt to terminate a tenancy of a Resident Tenant pursuant to San Francisco Administrative Code Section 37.9(a)(1) – (4), (6), and (7).
(j) "Resident Member" shall refer to a resident of the Limited Equity Housing Cooperative who has purchased a Member Share in the Limited Equity Cooperative.
(k) "Resident Tenant" shall refer to a tenant of the Limited Equity Cooperative who has entered into a lease with the Limited Equity Housing Cooperative pursuant to section 1399.8A.
(l) "Subdivider" shall mean, for purposes of this Article, a nonprofit public benefit corporation formed pursuant to California Corporations Code Section 5110 and their successors in interest.
(m) "Total Development Cost" shall mean, for the purposes of this Article, all costs relating to the purchase, improvement, rehabilitation, upgrade, and conversion of the property to be converted under this Article based upon a budget submitted to and approved by the Mayor's Office of Housing in the application for a Certificate of Clearance.
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
This Article shall apply to all applications for initial conversion of residential buildings with 2 units or more into a Limited Equity Housing Cooperative, filed on or after the effective date of this ordinance. The Subdivider for an application for initial conversion under this Article must be a non-profit public benefit corporation formed under California Corporation Code Section 5110. Applications for initial conversion shall be filed with the Department of Public Works in accordance with the provisions of Section 1399.17 of this Article.
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
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