Help Preserve Affordable Housing in San Francisco!

On July 14, 2008 I testified at a public hearing in front of the City of San Francisco Land Use and Economic Development Committee. The proposed legislation will update the City’s Condo Conversion Below Market Rate (BMR) program and bring it in line with the existing BMR program. Over 40 BMR owners and activists testified both in support and against the proposed legislation. After much impassioned discussion the Committee decided to put the legislation to a continuance so that the Mayor’s Office of Housing (MOH) can do more research. If the Committee approves the legislation the full Board of Supervisors will then decide whether 550 BMR condo conversion units will be permanently preserved as affordable housing units in San Francisco. These units are scattered throughout the city including the Mission district.

Current BMR owners do not approve of the legislation. BMR owners have seen their affordable units skyrocket in value. Many spoke passionately about their dreams to access the equity in their units for retirement. BMR units are structured so that homeowners have a stable and secure place to live. The subsidy that made it possible for them to buy is retained with the unit so that future homeowners can benefit. As evidenced by the recent mortgage crisis, homeowners are not guaranteed that they will receive an equity windfall from their homes. Many homeowners today find themselves paying more for their mortgage payment than their home is actually worth.

Prior to the hearing Mayor Gavin Newsom announced his support for the legislation. At the hearing I testified that passage of the legislation would accomplish the following:

1. Future sales of the existing 550 units will be marketed along with other BMR units in the city. This allows potential homebuyers fair and equal access to all BMRs.

2. BMR units will remain affordable for the life of the units. Preservation of affordable housing provides homeownership opportunities for low and moderate income tenants to stay in their neighborhoods rather than to leave the city.

3. Through requiring that the units be owner-occupied, neighborhoods become sustainable for future generations rather just than just investment opportunities for the current BMR owners.

You can help preserve these units and make the Supervisors aware of the need for affordable housing in your neighborhood. The next hearing before the Land Use and Economic Development Committee will be on August 4, 2008. Please come to the next hearing and support the legislation!