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Committee forwards residential-hotel conversion changes to full Board amid debate over amortization and tenant impact

February 27, 2023 | San Francisco County, California


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Committee forwards residential-hotel conversion changes to full Board amid debate over amortization and tenant impact
The Land Use and Transportation Committee on Feb. 27 voted 3-0 to send amendments to the city's residential-hotel unit conversion and demolition ordinance to the Board of Supervisors without recommendation after public comment from neighborhood groups and hotel operators.

Board President Aaron Peskin read newly drafted general findings circulated before the meeting that say the ordinance is intended to minimize adverse impacts on housing supply and protect low-income, elderly and disabled residents from displacement. Peskin urged the committee to consider the findings and then vote after public comment.

Neighborhood representatives voiced support for returning certain rooms to longer-term residential status. Linda Chapman of Nob Hill Neighbors said she was "deeply concerned about amortization" and that Department of Building Inspection lacks unit-usage reports that would make needs assessments difficult.

Representing Hotel des Arts, Ryan Patterson submitted written comments and argued altering the minimum-term requirement from seven days to 30 days would make units unaffordable for many occupants because of a month's rent plus security deposit, potentially creating empty units and blight. "The reality of the situation is that, changing the required minimum term from a week to at least a month means that the people who occupy these units will not be able to afford the rent," Patterson said.

President Peskin responded, "There is nothing in the ordinance that prevents a landlord from collecting rent on a weekly basis," and noted that Patterson had filed an appeal on the CEQA document dated Feb. 24. After discussion, Peskin moved to send the item as amended to the full Board without recommendation; the motion passed unanimously.

The committee's action forwards the ordinance and the contested findings to the full Board for consideration; the record includes public testimony from neighborhood advocates and hotel representatives, and a CEQA appeal remains outstanding.

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