The Mayor's Office of Housing shall have the following responsibilities under this ordinance:
(a) Certificate of Clearance: The Department of Public Works shall not deem an application for conversion under this ordinance complete unless the applicant includes a "Certificate of Clearance" issued by the Mayor's Office of Housing for the application. MOH must issue a Certificate of Clearance to the Subdivider within (i) 7 days of receiving an application if the Subdivider or Limited Equity Housing Cooperative is a recipient of funding under the Real Ownership Opportunities for Tenants program or (ii) 30 days of receiving an application from any other Subdivider or Limited Equity Housing Cooperative if all of the following criteria have been met:
(1) The Subdivider has submitted income verification information for all households in the building pursuant to Section 1399.16 and the Mayor's Office of Housing determines that at least 50% of the existing households at the time of submission are Qualifying Households;
(2) Two-thirds of the Qualifying Households have submitted an executed Intention to Purchase form;
(3) At least a majority of all households in the building at the time of application submission have submitted an executed Intention to Purchase form;
(4) The following offer has been made to any tenant who, in the two years prior to the Subdivider's application for a Certificate of Clearance, surrendered their tenancy or were evicted due to a notice to quit under San Francisco Rent Ordinance Sections 37.9(a)(8) – (15) and who has resided in the building for at least one year prior to their surrender of tenancy or eviction: The former tenant shall receive the option to purchase a member share and occupy a unit appropriate to the size of the household at the time the household surrendered their tenancy under the same terms as a tenant in the building at the time of application. If the Subdivider, after making a reasonably diligent search, cannot locate a tenant, the Subdivider shall document its efforts to reach the tenant and shall request a waiver from this subsection. MOH shall evaluate whether all reasonable measures have been taken to locate the tenant and, if it finds that they have, shall grant such a waiver.
(5) The Subdivider and the Mayor's Office of Housing have entered into a binding agreement to record a notice of special restrictions against the property as a condition of subdivision that imposes: (A) all requirements of California Business and Professions Code Section 11003.4(b)(3), (B) the resale restrictions set forth in Section 1399.21(C) Carrying Charge restrictions set forth in Section 1399.9, (D) subleasing restrictions set forth in Section 1399.6(b)(3), and (E) rent restrictions for Resident Tenants set forth in Section 1399.8A. The notice of special restrictions shall run with the land and be binding on the Subdivider, any future Limited Equity Housing Cooperative, or any other successor in interest.
(6) A Limited Equity Housing Cooperative has been formed and the Limited Equity Housing Cooperative holds a fee simple interest in the parcel to be converted or entered into a lease of no less than 99 years, or the Subdivider covenants under the agreement above to transfer a fee simple interest to or enter into a lease of no less than 99 years with a duly formed Limited Equity Housing Cooperative.
(7) A rental history detailing for each unit the size in square feet, the number of bedrooms, the current or last rental rate, and the names of the current tenant or tenants for each unit, including the names of all occupants 18 years of age or older, to the extent that such information is known or can be made known to the Subdivider.
(8) A budget detailing the Total Development Cost.
(b) Ongoing Monitoring: On an ongoing basis, the Mayor's Office of Housing shall perform the following monitoring activities:
(1) Verify that vacated units purchased by households that are Qualifying Households at the time of the application for a Certificate of Clearance are re-sold to Qualifying Households;
(2) Before a proposed resale of a member share, verify that the resale price of the Member Share complies with the requirements of this ordinance;
(3) Ensure that each Limited Equity Housing Cooperative converting under this section submit an annual report certifying the following:
(A) For Resident Members who purchased their shares as a Qualified Household, (i) the cooperative is their only residence and (ii) they have not subleased their unit for more than 12 months in the previous 3 year period;
(B) For Resident Tenants, (i) the cooperative is their only residence; and (ii) they have not subleased their unit unless approved in writing by the Limited Equity Housing Cooperative.
(4) Prepare an annual monitoring report to the Board of Supervisors that analyzes: (A) the number of conversions per year; (B) the type, location, quantity, affordability, and number of resales of units in each project converted; (C) a list of projects converted under the ordinance including address and contact information; (D) known barriers and issues related to conversion under the ordinance; (E) effectiveness of the ordinance in serving low-income households; and (F) recommendations to the Board for improvements or legislative amendments.
(c) Income Verification: The Mayor's Office of Housing shall perform income verification as detailed in Section 1399.16.
(d) The Director of the Mayor's Office of Housing may issue administrative citations for violations of this ordinance. San Francisco Administrative Code Chapter 100, "Procedures Governing the Imposition of Administrative Fines," is hereby incorporated in its entirety and shall govern the procedure for imposition, enforcement, collection, and administrative review of administrative citations issued to enforce the Sections set forth in this Subsection 1344 and related provisions of the Subdivision Code. Nothing in this Section shall prevent the City from pursuing other remedies provided by law in addition to or instead of the fines provided for here.
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)