AND NOW FOR SOMETHING COMPLETELY CONFUSING
San Francisco Condo Conversion, Illegal Units, Rent Control and More
Condo conversion in San Francisco can be [Controversial. Lucrative. Difficult. Rewarding.] because it’s a very special place with some very special regulations that regulate Rent Control and Property Rights.
Land is scarce, housing is scarce because building anew, remodeling or even demolishing a building everyone that agrees deserves to be torn down is heavily regulated and can take an incredibly long time. For developers trying to redevelop our Fair City this means carrying costs with no income. For landlords who want to sell or upgrade it means entering the market with a handicap. Combine this public policy morass, court cases from Santa Monica regarding the Ellis Act, the passage of Prop 13 that capped property taxes for California landowners, San Francisco’s 1979 Rent Ordinance, the push to legalize illegal in-law units, regulations that disqualify buildings with tenant-buyouts from converting into the more flexible condominium, recent influences from the sharing economy like airbnb and/or VRBO, with gentrification fears you’ll begin to get the appropriate context of how complicated and nuanced property values really can be in San Francisco.
Because San Francisco’s market is fragmented, ever-changing with ever scarcer and scarcer properties, you will see why it’s better to be prepared because the market will challenge, frustrate and confound you.
We’ll be here to encourage you, just remember, the information here is just that — information. While Kevin is an attorney the information is no substitute for consulting for contacting one who works 100% as an attorney as things change constantly and we have references to those men and women here too. San Francisco is a place where nuance and detail can be determinative so it’s worth understanding.