August 2020 SF Apartment Magazine

SF APARTMENT magazine

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Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01527235. All materials presented herein is intended for informational Purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any descriptions. This is not intended to solicit property already listed.

TRIGG SPLENDA SENIOR SALES ASSOCIATE COMPASS COMMERCIAL

415.308.6560 TRIGG@TRIGGSPLENDA.COM LICENSE: 01484698

SF APA magazine

SF APARTMENT

contents

Features

22

Noble Neighbor

by BROOK A. TURNER with ERIC ANDRESEN

26

A Brave New Workplace

by MARGARET J. GROVER

32

All About COPA

by THE JONES TEAM

36

Resilient Residents

by CARMEN CHU

32 4

AUGUST 2020 | SF APARTMENT MAGAZINE

PARTM Columns

Membership

8

16

Common Ground

Seeing Better Days

The News

12

Planning Ahead

Legal Q&A

by VARIOUS AUTHORS

20

Adjust or Bust

Trend Alert

by JODY KNIGHT

The Bright Side of Solar

by EMILY LANDES

48

Calendar

52

Professional Services Directory

56

Membership Application

22

SF APARTMENT MAGAZINE | AUGUST 2020

5

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AUGUST 2020 | SF APARTMENT MAGAZINE

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magazine

SF APARTMENT

San Francisco Apartment Association Office 265 Ivy Street San Francisco, CA 94102 Tel 415-255-2288 Fax 415-255-1112 Email sfaa@sfaa.org

Web www.sfaa.org

SFAA Staff Executive Director Janan New

Deputy Director Vanessa Khaleel

Education Specialist Stephanie Alonzo Member Services Manager Maria Shea

Government and Community Affairs Charley Goss

Accountant Crystal Wang

SFAA Officers President Chris Bricker

Vice President Robert Link Treasurer Jim Hurley

Secretary Mark Henderson

SFAA Directors Eric Andresen, Honor Bulkley, Andre Ferrigno, David Gruber, Kent Mar, Neveo Mosser, J.J. Panzer,

VOLUME XXXIII, NUMBER 8 AUGUST 2020 Published by Hippo Productions Publisher Vanessa Khaleel Editor Pam McElroy

Art Director Jéna Safai

Production Manager Cameron Shaw Tel 415-392-3770

Web www.sfaa.org SF Apartment Magazine (ISSN 1539-8161) Periodicals Postage Paid at San Francisco, California. POSTMASTER: Send address changes to the SF APARTMENT MAGAZINE, 265 Ivy Street, San Francisco, CA 94102.

The SF Apartment Magazine is published monthly for $65 per year by the San Francisco Apartment Association (SFAA), 265 Ivy Street, San Francisco, CA 94102. The SF Apartment Magazine is not responsible for the return or loss of submissions or artwork.

The magazine does not consider unsolicited articles. The opinions expressed in any signed article in the SF Apartment Magazine are those of the author and do not necessarily reflect the viewpoint of the SFAA or SF Apartment Magazine. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal service or other expert assistance is required, the services of a competent person should be sought.

Acceptance of an advertisement by this magazine does not necessarily constitute any endorsement or recommendation by the SFAA, express or implied, of the advertiser or any goods or services offered. Published monthly, the SF Apartment Magazine is distributed to the entire membership of the SFAA. The contents of this magazine may not be reproduced without permission.

Publisher disclaims any liability for published articles. Printed by Jostens Printing Co. Copyright @2020 by SFAA.

Bert Polacci, Dave Wasserman

SF APARTMENT MAGAZINE | AUGUST 2020

7

COLUMN

THE NEWS

provider wants to evict, but by taking eviction for nonpayment of rent off the table, this ordinance will make it impossible for mom-and-pop landlords to collect the unpaid rent that they rely on for their mortgage, property taxes, maintenance, and utilities.”

Common Ground

Property Owners of San Francisco In-

Rental housing industry groups sue to overturn permanent prohibition on evictions.

stitute, added: “This law, along with the

Editor’s Note: State and Federal guide-

nonpayment of rent due to COVID-19. In

Small owners are particularly hard hit

lines and legislation are constantly

prohibiting residential landlords from

by renters who cannot pay. We need the

changing regarding COVID-19 and the

ever accessing the unlawful detainer

courts to intervene.”

shelter-in-place order. For the latest

procedures, the Ordinance forces prop-

information, resources, financial aid,

erty owners to try to collect unpaid rent

In mid-April, the plaintiffs warned the

and forms, visit www.sfaa.org or www.

through civil claims or by hiring a collec-

city that the Ordinance would have

caanet.org/coronavirus.

tions agency. These processes take years

the unintended effect of increasing

T

and are rarely successful.

residential evictions. The city was also

closure of the court system, would allow renters to live rent-free from March 2020 to potentially September and beyond— and property owners would have no legal recourse to recoup unpaid rent.

warned that its actions of passing such

he San Francisco Apartment Association, San Francisco

In prohibiting housing providers from

irresponsible legislation could force it to

Association of Realtors, Co-

accessing unlawful detainer procedures,

pay the housing industry’s attorney fees

alition for Better Housing,

the Ordinance violates Constitutional

at a time when the city budget is being

and Small Property Owners of San Fran-

and state law, conflicts with Gover-

stretched to address many other needs.

cisco Institute filed litigation against

nor Gavin Newsom’s Executive Order

the City and County of San Francisco in

on preemption and evictions, and, as

San Francisco Association of Realtors

California Superior Court over its newly

drafted, will ultimately lead to more

President and CEO Walt Baczkowski

enacted COVID-19 Tenant Protection

evictions as tenants are falsely led to be-

noted: “We need a stay to put this law

Ordinance. The housing industry is also

lieve that they can just stop paying rent.

on hold immediately. By purporting to prohibit evictions for nonpayment of

seeking a temporary restraining order, SFAA Executive Director Janan New

rent, some renters will inevitably rely

stated: “During this pandemic, our

on the Ordinance and will stop pay-

The COVID-19 Tenant Protection Ordi-

members have been proactive in offer-

ing rent during the COVID-19 period

nance (the Ordinance) was enacted on

ing rent reductions, forbearance, and

without budgeting to eventually repay

Friday, June 26, 2020 after it was signed

working out flexible payment plans for

the amount of rent owed. When this law

by Mayor London Breed. The Ordinance

their residents experiencing financial

is overturned, those renters will be in a

permanently prohibits a residential

hardship due to COVID-19. But this

tough position and housing providers

landlord from pursuing an eviction for

ordinance goes too far. No housing

will have no choice but to exercise their

which will suspend the law immediately.

8

Noni Richen, President of the Small

AUGUST 2020 | SF APARTMENT MAGAZINE

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SF APARTMENT MAGAZINE | AUGUST 2020

9

unlawful detainer rights in order to collect

below the rate of inflation—on buildings

the unpaid rent.”

fifteen years or older. It would also allow cities to impose vacancy control. The ballot

DONATE TO THE SFAA LEGAL FUND TODAY

The financial harm of COVID-19 has not

measure is a major threat to housing pro-

been limited to residential tenants. The

viders, and the Prop 10 campaign in 2018

plaintiffs are sympathetic to renters who

needed to raise over $70 million dollars to

During the legislative process,

have lost their jobs and are unable to pay

be successful. The Prop 21 campaign staff

SFAA reaches out to members of

rent due to COVID-19, and each group has

has estimated that they will need to fun-

the Board of Supervisors to ad-

dedicated significant time and resources

draise the same amount for this year. Just

dress points of concern, support,

to ensure that its members are proactively

like in 2018, all SFAA and CAA members are

working with their commercial and resi-

being asked to donate $100 per apartment

or opposition on any given legisla-

dential renters to keep them in place.

owned/managed to the campaign. Please visit www.CFRH.org or www.sfaa.org for

However, each group involved in this litigation has members who have also been

additional information.

significantly harmed by COVID-19. While

SFAA Updates

surveys have shown that 97% of renters in

As SFAA pivots to provide you services dur-

apartments have continued to pay their

ing the shelter in place mandate, there is a

rent during this crisis, small property

new way to connect with SFAA. Email Mem-

owners and owners of “Class C” prop-

berQuestions@sfaa.org to have your ques-

erties tend to be particularly impacted

tions and concerns promptly addressed.

tive or policy proposal that impacts rental housing providers. On issues that are particularly harmful for property owners, like the COVID-19 Tenant Protection Ordinance, we’ll mobilize our membership in a grassroots effort to engage members of City Hall.

But oftentimes, especially in an increasingly tenant-friendly city,

and harmed when tenants do not pay rent. The plaintiffs will continue to work

The annual SFAA Trade Show will be vir-

these proposals get voted into

with City Hall to identify and implement

tual this year (more information coming

law anyway. During the legislative

policies that more equally balance the

soon). At the September 3 event, attend-

interests and needs of renters and rental

ees will learn all about the latest trends,

hearing on June 8, the Land Use

housing providers.

products and services in the multifamily

November 2020 Ballot Measures

housing industry. The event is free and open to the general public, so invite your

Committee heard from hundreds of small property owners. In the legislative file, there are 6,000 pages of comments from San Franciscans,

California voters will see 12 statewide

friends. For more information on the

measures on the November 3, 2020 ballot.

trade show or to become a sponsor, con-

Of these measures, local property owners

tact vanessa@sfaa.org.

opposed to the legislation. And

The SFAA Rent Forbearance Form and in-

by a vote of 10-1.

should be aware of the following: Proposition 15: This measure would

formation on temporary rent reductions

change Proposition 13 of 1978 so that

are available at www.sfaa.org.

almost all from housing providers yet, the ordinance was approved

SFAA established its legal fund in 1998, and when the Board of Su-

larger commercial and industrial properties would be reappraised more fre-

SFAA classes will be available online

pervisors passes ordinances that

quently than only when the properties are

during shelter-in-place. The San Fran-

sold. The tax revenue would fund school

cisco Apartment Association is happy to

violate our members’ rights, we

districts and local governments. Prop. 15

announce that current CCRM students

would not change the existing residential

can continue their education during the

property tax laws.

Shelter-in-Place right from home. We understand keeping up education is crucial

have no choice but to file litigation against the city. In recent years, we’ve seen a pattern of laws being passed that don’t consider or address the perspectives of housing

Proposition 19: This measure would allow

and want to assist our members to stay up

people age 55 and older and victims of

to date. Thus we will be setting up more

wildfires and other disasters to keep their

webinars in the future. See the calendar on

lower property tax rate when moving to

page 48 for a full list of classes.

Please write a check to the “SFAA

The SFAA office will remain closed during

office at 265 Ivy Street, San Fran-

Proposition 21: Also known as Prop. 10

the shelter-in-place mandate. However,

cisco, CA 94102 to support this ef-

2.0, this measure would repeal the Costa-

SFAA staff is working round-the-clock to

fort and to help build the legal fund

Hawkins Rental Housing Act. Prop. 21

keep the nonprofit running. Timely pay-

would allow cities and counties to impose

ment of membership dues is necessary to

to function as a deterrent against

rent control however they choose—even

help the association help you.

new homes.

10

AUGUST 2020 | SF APARTMENT MAGAZINE

providers. We ask that you donate to the SFAA Legal Fund today.

Legal Fund” and mail it to the SFAA

future harmful proposals.

Adam Filly

Available Properties

Exceeding Expectations

Apartments | Mixed-Use | Commercial

$7,750,000

Just Listed

$2,800,000

Adam takes great pride in achieving outstanding results for his clients and he has the track record to prove it.

1649 Market St | 70 Units | Mid-Market

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734-740 Green St | 10 Units | 4.8% Cap

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3830 19th St | 5 Units | 1/2 Block to Dolores Park

261 Chattanooga St | 6 Units | Noe Valley

3117-3119 24th St | 2 Units | Mixed-Use

Contact Adam or visit his website for more information on these listings, for a confidential analysis of your property, or to consult on any real estate matter.

Adam Filly Senior Vice President | m: 415.516.9843 | adam@adamfilly.com DRE 01354775 | www.AdamFilly.com Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01527235. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed.

SF APARTMENT MAGAZINE | AUGUST 2020

11

COLUMN

PLANNING AHEAD

Adjust or Bust w r i t t e n b y JO DY K N IGH T

City agencies adapt with electronic permitting, updated ADU regulations, and tax law revisions.

• New windows and exterior doors • Decks less than 10 feet above grade that meet planning code setbacks • Sign permits

Electronic Processing and Over-the-Counter Permits

able 3:30 to 4:30 p.m., after DBI alerts a

COVID-19 has pushed the Department

customer that a permit is ready. To use

of Building Inspection to implement its

these OTC services, customers must

long-planned transition to electronic

arrive with forms complete and must

processing of permits. Electronic Plan

wear face masks and stay six feet apart.

Review (“EPR”) has a new online portal

The following types of permits may

for building permit submittals that

be processed OTC:

• Power door operators

Over-the-Counter Without Plans

• Permits to comply with the

allows EPR through Bluebeam. For permits previously started in paper, DBI is evaluating the need to convert to EPR

Drop-in permit pick-up will be avail-

• Re-roofing

on a permit-by-permit basis. Conversion to EPR is likely to result in delays in the short term as electronic submittals

• Commercial tenant improvement projects • Office or other B occupancy remodels

Accessible Business Entrance (“ABE”) program

• Repair decks and stairs (less than 50%)

• Voluntary seismic upgrades

are processed, but should allow more efficient simultaneous review once a permit moves forward.

• Replacement windows (same size

• Disability access barrier removal

and same locations) • Projects that do not require

DBI has also restarted processing over-

• Replacement garage doors

the-counter (“OTC”) permits. On June 24, DBI began offering OTC curbside

hood notification • Minor dry rot repairs

services in coordination with its permitting agency partners (Public Works, Planning, Fire, and the Public Utilities

Expect long delays. There is already • Exterior siding repairs or replacement

Commission). Curbside services will be offered from 7:30 a.m. to 4:30 p.m.

Monday through Friday, with the hours

(no changes to floor plan or walls)

(no changes to floor plan or walls)

plans are available for up to 20 people a.m. Starting at noon on Fridays, Eventbrite tickets are available for the fol-

Over-the-Counter With Plans • Kitchen remodel (changing floor plans/walls)

lowing week's slots. plans/walls)

ted by appointment between 9:30 a.m. and 3:30 p.m., with appointments prioritized by length time in the queue.

12

AUGUST 2020 | SF APARTMENT MAGAZINE

months. Also, this is a pilot program that is subject to change as DBI continues to person services in the COVID-19 era.

State Law Changes to ADUs Incorporated Into Planning Code Early this year, state law changed to allow additional flexibility in adding Accessory Dwelling Units (“ADUs”) to

• Bathroom remodel (changing floor OTC permits with plans may be submit-

permits being processed, so new fil-

adapt to electronic filing and limited in• In-kind bathroom remodel

per day between 7:30 a.m. and 9:30

a backlog of thousands of electronic ings may not receive appointments for

• In-kind kitchen remodel

divided between services.

Drop-in services for OTC without

Planning Department neighbor-

existing and proposed housing. In May, some of those changes were incorporated into Planning Code Section 207.

• Residential interior remodel (changing floor plans/walls)

Additional changes to align the Planning Code with state law are expected in July.

John Antonini

+

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Multifamily + Mixed-Use + Add-Value

For Sale - Seller Financing Available

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John Antonini

415.794.9510 john@antoninisf.com DRE 01842830

Daniel Foley

415.866.7997 daniel@danielfoley.com DRE 01866714 SF APARTMENT MAGAZINE | AUGUST 2020

13

Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01527235. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footage are approximate.

The changes to the ADU program in-

gross square footage of the space. This

steeper increases than those anticipated

clude an allowance for construction of

limitation may be waived by the Zoning

by the mayor’s proposal.

ADUs in single-family homes or detached

Administrator if waiver helps with the

auxiliary structures on the same lot. The

layout of the proposed ADU.

Not surprisingly, business groups, including the San Francisco Chamber of

Code changes allow for single-family “no waiver” ADUs under Section 207(c)(6),

In an effort to incentivize creation of new

Commerce, have come out in strong op-

but limit expansion of the envelope of the

units, ADUs of up to 750 square feet are

position to the tax changes, arguing that

single-family home or auxiliary structure

now exempt from impact fees by state law.

now is not the time to further burden

for the ADU to 1,200 square feet. State law

ADUs of 750 square feet or larger are only

San Francisco businesses. Even before

also allows a Junior ADU (“JADU”) of no

subject to impact fees proportional to the

COVID-19, there was concern that the

greater than 500 square feet to be devel-

size relationship of the ADU to the pri-

cost of doing business in San Francisco,

oped within the existing or proposed

mary dwelling. In addition, ADUs are not

including local tax policy, could drive

primary residence in addition to an ADU.

required to be sprinklered where the main

businesses out of the city, either across

Therefore, under the new state law, every

unit is not required to be sprinklered.

the Bay or across the country. PG&E announced in June that it would move its

lot can have at least three units. Single-family ADUs will require posted notice at the

Finally, state law now requires process-

San Francisco headquarters to Oakland.

site, even if the ADU is built entirely within

ing of ADU applications within 60 days.

Opponents have sounded the alarm

the envelope of an existing building.

However, many property owners have ex-

about potential impacts on small-to-me-

perienced delays based on when the city

dium-sized and local businesses, particu-

“Waiver” ADUs for single-family homes

deems a project application “complete.”

larly those that have high gross receipts

and ADUs in multifamily buildings are

The Planning Department continues to

but low margins. Debate over this and

regulated by Section 207(c)(4). For lots

refine its procedures for ADUs, and we

other business tax measures will continue

that have four or fewer existing dwelling

hope that property owners will encounter

as we approach the November election.

units or where the zoning would permit

less red tape than they did in the past.

the construction of four or fewer dwelllots that have more than four existing

Rental Income Could Soon be Subject to New Gross Receipts Tax

dwelling units or are undergoing seismic

San Francisco has begun planning for

retrofitting, or where the zoning would

the economic aftermath of COVID-19. On

permit the construction of more than

June 15, Mayor Breed announced legis-

four dwelling units, there is no limit on

lation for the Board of Supervisors and

the number of total ADUs permitted,

a proposed ballot measure that would

subject to restrictions for prior evictions.

eliminate the city’s payroll tax in favor of

No minimum lot size is required for the

an expanded gross receipts tax once the

construction of an ADU.

economy improves, while providing tax

ing units, one ADU is permitted. For

and fee relief for small businesses. CurUnder Section 207, ADUs may be con-

rently, the city imposes a .38% payroll tax

structed in the buildable area of a lot, be

on all businesses with annual payroll ex-

converted from auxiliary structures, or

penses exceeding $320,000. Mayor Breed

be built within the envelope of an exist-

has expressed concern about the payroll

ing residential building. For auxiliary

tax as a disincentive to hiring.

structures, dormers may be added to an auxiliary structure even if the structure

A gross receipts tax is a tax imposed

is within the required rear yard. The new

on the total revenue of a business. For

state law also allows construction of a

landlords, this includes all income from

new detached unit, not otherwise subject

rental properties. We do not yet know the

to local development standards, if it is not

amount of the proposed gross receipts

more than 800 square feet, no more than

tax, but under the mayor’s proposal, the

16 feet in height, and provides four-foot

tax would increase gradually as the econ-

side and rear setbacks. In San Francisco,

omy improves. Breed’s proposal includes

ADUs are not to be constructed from

a small business exception that would

space within an existing dwelling unit,

exclude businesses with $1,500,000 or

except that an ADU may expand into hab-

less annually in gross receipts. Compet-

itable space on the ground or basement

ing measures currently proposed by

floors if it does not exceed 25% of the

the Board of Supervisors would include

14

AUGUST 2020 | SF APARTMENT MAGAZINE

The information contained in this article is general in nature. Consult the advice of an attorney for any specific problem. Jody Knight is a partner at Reuben, Junius & Rose, LLP and can be reached at 415-567-9000.

SFAA needs

you.

Support SFAA’s legal challenges to unjust legislation by donating to the SFAA Legal Fund. SFAA needs to stay relevant to remain effective. Help to further grow the legal fund. It will make a difference. Check out www. sfaa.org/legal-fund.shtml to find out more. *SFAA Legal Fund donations are tax deductible.

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SF APARTMENT MAGAZINE | AUGUST 2020

15

COLUMN

LEGAL Q&A

Seeing Better Days w r i t t e n b y VA R IOU S AU T HOR S

Tenants’ reasonable requests should always be considered, especially with the economy and landlord-tenant law in unchartered territory. as it successively becomes due,” not at Q. A tenant has asked that

the date their monthly rent is due be changed to coincide with the arrival of their unemployment check. Is this a reasonable request?

A. Your tenant wants to make sure

the beginning of those periods.

For this reason, most written leases or oral agreements have rent “due and payable, in advance, on the 1st of the month” (or so the standard boilerplate goes). Aligning due dates to the 1st is

they have funds to clear their rent check,

also efficient. It’s an easy date for the

and it sounds like they’re making a good

tenant to remember, and it simplifies

faith effort to stay current with you, even

administration for the landlord.

while the global economy and landlord-

circumstance, this practice is becoming more common.) If this tenant wants to stay in good standing with you, and all they’re asking for is a bit more time, you can tell them that you enjoy having them as a tenant and you’re more than happy to wait a bit for their benefits to come in.

—Justin Goodman

Q. Our doorman did not

allow a tenant's guest to enter the building with a dog. The tenant's guest has filed a fair housing complaint against me.

Is this legal?

A. We hear a lot of stories these days of people both in public and private spaces relying on fair housing and dis-

tenant law are in uncharted territory. If

Is it reasonable for you to change the

ability protection laws in order to bring

all your tenant wants is to be able to slip

terms of the contract to move the due

their pets into private accommoda-

the check under the door on a different

date? This is up to you, but it seems like

tions. While the federal Fair Housing

day of the month, I’d be sending her a

it would be easier to just tell your ten-

Act (FHA) and California Fair Employ-

handwritten thank you note right now.

ant that they can pay the rent due for

ment and Housing Act (FEHA) afford

the month on a date after their unem-

very broad rights to animal owners,

But your question—“is changing the due

ployment check clears, and if they are

these rights are not unlimited. On the

date reasonable”—bears some consid-

timely on that date, you won’t consider

assumptions that your building has a no-

eration. First, to “change” the due date

it late. (According to its website, the EDD

pets policy; that the tenant’s guest’s dog

requires a 30-day notice under state

begins paying unemployment checks

was not a service animal (like a seeing

law, and the due date is going to remain

roughly two weeks after the initial claim

eye dog); and that the tenant’s guest is

changed until you change it back. Using

is submitted, so I imagine this would be

claiming they should have been allowed

this method also means it’s not tech-

in the middle of the month at the latest.)

to deviate from the no-pets policy, the short answer is that you can enforce the

nically effective until the next month (which doesn’t align with what your ten-

Having said that, between the mayor’s

no-pets policy, subject to certain exclu-

ant is asking for).

moratorium and Supervisor Preston’s

sions for reasonable accommodations.

legislation (which eliminates nonpay-

16

In theory, you could have the entire rent

ment of rent evictions for rent payments

A disabled tenant, prospective tenant,

for the calendar month of August due

that came due during Governor New-

or even a family member or friend of

on, say, August 14 (even though you’d

som’s suspension of evictions), tenants

a tenant or prospective tenant may

received August’s rent after the ten-

and their advocates are emboldened

request a reasonable accommodation

ant has already enjoyed two weeks of

to not only withhold rent but refuse to

of a landlord’s rules, regulations, or poli-

occupancy without paying). This feels

enter reasonable arrangements with

cies at any time. Disability is defined

unusual, but the default rule under state

landlords to come current eventually,

very broadly as a physical or mental

law is actually that rent is payable at the

or even pay what they can for now.

“termination of the respective periods,

(Whether right or wrong under the

AUGUST 2020 | SF APARTMENT MAGAZINE

Legal Q&A… continued on page 46

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19

COLUMN

TREND ALERT

The Bright Side of Solar w r i t t e n b y E M I LY L A N DE S

Lower costs and more options point to a sunny future ahead for solar power.

F

Levin says a lot of the price cuts on solar panels themselves took place in the early 2000s, but adds that there have

or years, San Francisco prop-

percent for commercial and utility-scale

been other operational savings as more

erty owners have known

projects. Owners considering installing

“soft” installation costs have also fallen

about the benefits of going

a solar system would be wise to move

recently. The SEIA estimates that the

solar: huge electricity sav-

ahead soon, before this benefit drops

total cost of installing a solar system has

any further.

fallen by 70 percent since 2010, making

ings, a rise in property values and, of

solar production competitive with other

course, the conservation of our natural

more traditional forms of fuel.

resources. But not long ago, bringing so-

But even if the credit is dwindling, the

lar power to rental properties could be

2006 legislation has certainly already

prohibitively expensive, putting these

done its job in bringing solar power to

Battery Prices Bottom Out

systems out of reach even for the most

the mainstream. “The ITC has proven

Thanks to technological improvements,

green-minded housing providers.

to be one of the most important fed-

large-scale battery storage costs have

eral policy mechanisms to incentivize

also come down significantly in recent

However, several legislative and

clean energy in the United States,” ac-

years. According to Climate Central, a

technological developments have

cording to the Solar Energy Industries

research consortium focused on climate

helped to change the equation around

Association. “Solar deployment, at

change, battery energy storage prices

solar and, suddenly, the renewable

both the distributed and utility-scale

are down 76 percent since 2012.

resource is looking like a very bright

levels, has grown rapidly across the

option for lowering bills and our

country. The long-term stability of this

Storage is the answer to the old com-

impact on the environment.

federal policy has allowed businesses

plaint critics of any type of renewable

to continue driving down costs.”

energy love to toss out, Levin says,

Solar Scales Up

because it allows renewable systems to

The modern-day solar movement really

That’s because, in addition to the di-

hold on to extra energy and use it when

took off in the early 2000s with the

rect savings from the federal tax credit,

needed. “You’ve heard Trump say the

passing of the Solar Investment Tax

the ITC also helped entice more and

joke about, ‘You can’t watch television

Credit (ITC) in 2006. This credit is a

more people to sign on to solar, thus

today because the wind is not blowing.’

dollar-for-dollar reduction in the federal

creating greater economies of scale.

That is a critique of renewable energy.

taxes owed by a person or company

The SEIA estimates that solar has

But batteries or any storage of renew-

grown by over 50% each year since

able energy is what offsets that,” he said.

who has installed a solar system.

the law was enacted.

Lower-cost storage options also allow

When the legislation was passed, it was

20

a 30% credit applied to both custom-

The increase in demand has led to

owners to hold on to more of the power

er-sited residential and commercial

huge cost savings. “From the early

they generate, rather than putting it back

solar systems, as well as large-scale util-

2000s to now, prices have dropped

on the grid. Solar advocates can imagine

ity solar farms. But a 2015 extension to

probably 97 percent,” according to

a time when every home will have solar

the law led to a step down in the credit.

Micha Levin, managing member of re-

panels on the roof and batteries in the

For projects that begin construction in

newables company GE Options. Levin

garage or basement, providing backup

2020, it has dropped to 26 percent, and

believes that the tax incentive is part

energy during power failures and re-

will drop further to 22 percent in 2021.

of the reason for that precipitous drop,

moving pressure from traditional power

In 2022, barring any last-minute legis-

as well as the plummeting price of

plants trying to meet peak demand.

lative changes, the credit is due to drop

silicon—the major component of most

to zero on the residential side and 10

solar cells—during that time.

AUGUST 2020 | SF APARTMENT MAGAZINE

Trend Alert… continued on page 44

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SF APARTMENT MAGAZINE | AUGUST 2020

21

Noble Neighbor written by

B RO OK A . T U R N E R W I T H E R IC A N DR E S E N

Remembering Russ Flynn, an advocate for property rights, ethical property ownership, and supporting community.

It is rare that a single person plays as large a role in any industry as Russ Flynn did in San Francisco rental housing. His presence was felt on almost every level and corner of our industry. Russ was an invaluable advocate for landlord rights and a shining example of ethical property ownership.

Russ died of heart failure on February 16 at his home in San Francisco, at age 79, less than two weeks shy of his 80th birthday.

He was born in Mt. Morris, Michigan, one of eight children in a humble Irish Catholic family. At age 18, Russ left Michigan for California to attend Santa Ana State in Orange County. To pay for his own education, Russ, a born entrepreneur, would drive throughout California and Nevada selling Vitacraft cookware. He often referred to this as one of the greatest lessons in his life, saying, “You think selling real estate is hard? Try selling pans door to door!”

After finishing his degree at San Diego State University in 1966, Russ quickly moved to the place where he always wanted to live—San Francisco. He never left.

His first job in real estate was as a salesman at Davis Realty in the Richmond District. In 1971, he bought his first apartment building. He never stopped. By 2020, he had become one of the largest private owners of rental property in California, operating multifamily housing not just in San Francisco, but also in Oakland, Marin, and Sonoma.

In 1977, Russ co-founded TRI Realtors with Bill Rosetti. As its president, he led the firm’s growth from 10 to 1,100 agents. In 1983, he founded Meridian Management Group, a property management company, and Flynn Investments, his family business. Both Meridian Management Group and Flynn Investments continue to operate today.

As Russ’s holdings grew, so did his commitment to the rental housing industry. In the late 70s, he headed up the opposition to Proposition U, a vacancy control initiative and the first of the epic landlord-tenant battles. Of this time, Bill Rosetti says, “I then came to see and appreciate Russ’s application of his natural competitiveness and talent to the political process.”

22

AUGUST 2020 | SF APARTMENT MAGAZINE

Photo credit First Republic Bank

SF APARTMENT MAGAZINE | AUGUST 2020

23

In 1979, Russ and Bill cofounded the

Mayor Willie L. Brown, saying “If Russ

of our industry organizations from CAA to

Coalition for Better Housing (CBH).

Flynn says it’s true, it is.”

SFAA. He wisely understood that the housing industry must advocate for its interest

CBH quickly moved with its ally, the San Francisco Apartment Association, to suc-

Mayor London Breed expressed her sad-

as well as promoting responsible property

cessfully stop every legislative and ballot

ness at Russ’s passing, having had dinner

management and ownership among its

proposal for vacancy control. “Russ should

him with only a week beforehand as he

membership. To that end, he was not toler-

be remembered as the Father of No Va-

advocated on our behalf. Governor Gavin

ant of owners who opted to stay on the

cancy Control as he kept it out of the city

Newsom and House Speaker Nancy Pelosi

sidelines and withhold their participation

until the passage of Costa-Hawkins. Calcu-

both considered him a friend and advisor.

from the never-ending team effort.

Rosetti. Even then his participation was

Russ’s many civic and philanthropic activi-

Above all, Russ was a caring and com-

essential to the passage of Costa Hawkins,

ties reflected his deep commitment to San

passionate man, for whom family was

holding quiet meetings with the leadership

Francisco. He was a founding member of

paramount. His wife, three daughters, and

of the State Senate to twist arms.

the Citizen’s Advisory Committee for the

stepson, as well as his nine grandchildren,

Tenderloin. In 2000, he founded Teachers

brought Russ the most joy, with weekly

Over the next 40 years, Russ would serve

Housing Cooperative, a non-profit privately

tennis matches coming in as a close sec-

on the CBH Executive Board, often as

funded organization that provides grants

ond. He died exactly as he said he wished:

president, to ensure the health of our

to teachers in some of San Francisco’s

quickly and without pain, at the helm of his

industry. He was a standard-bearer for

most underserved schools. In the 1980s,

business, having played three sets of tennis

considered, yet strong, efforts to protect

he served on the board for University High

earlier in the day. He was at home with his

our businesses.

School, where his three daughters attended.

beloved wife, Lee, in this beautiful city—

He served on Arthur Ashe’s Youth Tennis

and in escrow on a final deal.

late the value and significance of that,” said

Tom Bannon, CEO of the California Apart-

Advantage board, providing educational

ment Association, said, “Russ was a man of

and coaching support for underprivileged

We honor how much, for how long, and

passion and commitment within the rental

youth in the Bay Area. He was also a strong

how effectively Russ was involved in San

housing industry, both at the local and

supporter of 826 Valencia, a nonprofit orga-

Francisco on behalf of property rights. His

state level. He was one of those unique

nization dedicated to supporting the writ-

life was lived to the fullest, and he has left

individuals that had the ability to provide

ing skills of under-resourced students.

us a legacy that will benefit so many, for so long. We can honor his memory by continu-

leadership to address the challenges of today as well as preparing the industry for

But maybe Russ’s greatest gift to the city

ing with his Herculean efforts. Russ will

the future.” Just two years ago, Russ was

was his work with Meals on Wheels San

certainly be missed, but never forgotten.

one of the leaders of the campaign to de-

Francisco, where he championed their

feat Proposition 10 on the state ballot.

work for over 20 years. As the board

In lieu of flowers, donations can be made

chair from 2017-2019, he helped lead the

to the Russell B. Flynn Fund for the Meals

CBH Vice President Dave Wasserman

capital campaign for Meal on Wheels’

on Wheels Kitchen: mowsf.salsalabs.org/

said, “Russ Flynn provided a moral guide-

new kitchen and food production facility,

russflynn.

post. He taught us when to fight and,

which has the capacity to prepare 20,000

more importantly, how to fight.” Russ also

meals a day to feed food-insecure older

secured Dave’s appointment to the Rent

adults in San Francisco.

Board in 2015 when the late Mayor Ed Lee retired Commissioner Bart Murphy. “To

“Russ contributed immensely to his be-

me, he was my mentor and hero, and far

loved city,” said California State Senator

more than simply my boss.”

Scott Wiener. “He was a thoughtful yet fierce advocate for San Francisco rental

For over 40 years, Russ was an advisor

property owners and an unselfish sup-

and confidant to nearly all of San Fran-

porter of many important local charities.

cisco’s mayors. In 1979, he was asked by

Can you imagine how many San Francis-

then Mayor Dianne Feinstein to serve on

cans will be fed because of his support of

San Francisco’s first Rent Stabilization and

the new Meals on Wheels kitchen? Russ

Arbitration Board where, as its president,

made and continues to make a difference.”

Brook A. Turner is the director of the Coalition for Better Housing. Eric Andresen owns West Coast Property Management Company. He is a long-time boardmember and former president of SFAA.

Mike Stack

Real Estate Advisor

Call or email me today for a free & private analysis of your property’s value.

he guided the process of San Francisco becoming a model for other California

Throughout his life, Russ stressed the im-

cities to resolve tenant-landlord disputes.

portance of political participation. Not only

Russ’s reputation was so strong that a

did he co-found CBH, but he also encour-

mid-1990s New Yorker article quoted

aged active and unified participation in all

24

AUGUST 2020 | SF APARTMENT MAGAZINE

415.580.9095 mikestack@vanguardsf.com MikeStackSF.com DRE# 01932 2 8 0

As the curve flattens we would like to thank all the front line workers who have sacrificed so much during these troublesome times.

San Francisco’s #1 Apartment Broker 724 Battery Street | 415.890.0704 compass-cre.com | San Francisco | Los Angeles

SF APARTMENT MAGAZINE | AUGUST 2020

25

A BRAVE NEW WORKPLACE written by

M A RG A R E T J . GROV E R

Everything employers and employees need to know before getting back to work.

As the economy begins to reopen, both employers and employees have questions about the new work environment, appropriate safety steps, and economic impacts. Although we are still in a pandemic, many people and businesses need to return to work for financial reasons. Because we continue to learn new information about the virus that causes COVID-19, guidelines and best practices change frequently. This article provides the most current information and links available as of June 20, 2020. Please check with the appropriate professionals for updates.

Pre-Opening Requirements for Businesses California requires that, before reopening, all facilities must take the following steps: • Perform a detailed risk assessment and create a site-specific protection plan.

• Train employees on how to limit the spread of COVID-19.

(This includes training employees on how to screen themselves for symptoms and when to stay home.)

• Set up individual control measures and screenings.

• Put disinfection protocols in place.

• Establish physical distancing guidelines.

Risk Assessment The detailed risk assessment will depend upon the facility, paths of travel, common areas, space between work stations, type of work being performed, whether the facility has been closed, and a variety of other factors. Steps that most workplaces should consider include: evaluating locations and processes in which employees are likely to interact with each other, with customers, or with the public; evaluating shared spaces, such as elevators, bathrooms, break rooms, stairs, and halls to identify ability to maintain physical distance and maximum capacity; performing routine maintenance on ventilation systems including air ducts and vents; flushing the plumbing lines with running water; and checking for pest infestation.

Employee Training Employers must provide employee training before employees return to work. Employees should be instructed to conduct a self-screen each day before coming to work and to stay at home if they are sick. The self-screen includes the employee taking their own temperature, evaluating whether they are

26

AUGUST 2020 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | AUGUST 2020

27

experiencing any of the common symp-

have not been in close contact with any

Disinfectant Protocols

toms of COVID-19, and evaluating their

sick person. The employer may take

Before employees return to the workplace,

risk for recent exposure. San Francisco

the employee’s temperature before the

the employer should establish a plan for

requires that every employee be given

employee enters the work environment.

cleaning and disinfecting the work environ-

an employee screening handout (turn to

The ideal thermometer is touchless. If a

ment. High touch areas and surfaces that

page 50 for a link to access a PDF). The

touchless thermometer is not available, a

customers touch, such as countertops, pay-

training should explain that, even though

forehead scanner can be used, with dis-

ment systems, pens, and styluses, should

an individual is not sick, she or he could

infectant wipes between each employee.

be disinfected regularly—ideally after every

transmit COVID-19. The training must

Any sign-in sheets should not require the

use. The employer should supply disinfect-

emphasize that employees who are sick

employee to disclose a specific health

ing wipes that are effective against the CO-

should not come to work.

condition, even if COVID-19 related, be-

VID-19 virus near all high-touch surfaces.

cause compelling an employee to share

Hand sanitizer, soap and water, and/or

Because some employees will come to

health information could violate their

disinfecting wipes should be made avail-

work even if sick in order to maintain

right of privacy.

able at or near the entrance of the facility, at checkout counters, and anywhere else

their income, employers should explain that many types of leave will be avail-

Provide face coverings for all employees,

able should they need to remain home

with instructions that face coverings are

because they are sick, may have been ex-

to be worn at all times when at work, un-

The business should establish a schedule

posed to the coronavirus, or need to pro-

less the employee is in a private office

for frequently disinfecting break rooms,

vide care to someone who is sick or for a

and not likely to be interrupted. For a link

bathrooms, and other common areas.

child whose school or child care facility

to a sample sign to provide information

where people have direct interactions.

about face coverings, turn to page 50. Em-

Physical Distance Requirements

ployees may bring their own adequately

Measures designed to assure that every-

Employees should be trained on proper

cleaned face covering. If any employee

one can maintain appropriate physical

use of masks, physical distancing protocols,

cannot wear a standard face covering,

distance should be tailored to the worksite

hand washing, workplace disinfectants,

the employer should provide an alternate

and the business. Some common changes

and other safety precautions being imple-

type of face covering and take steps to

include: marking spaces to indicate six-foot

mented by the employer. The particular

increase safety for all.

distances; selecting doors for ingress and

has shut down.

physical distancing requirements will be

egress; identifying and marking paths of

unique to the workplace. However, all

Assure that proper signage is posted at key

travel; installing plexiglass screens for re-

employees should be instructed to main-

locations, including entrances, stairs and

ceptionists and others interacting with the

tain at least a six-foot distance from others,

elevators, one-way paths of travel, and all

public; separating work stations; providing

including when in line and when shopping

locations where room capacity has been

locations for documents to be transferred

or collecting goods on behalf of custom-

reduced to maintain physical distance,

from one person to another without con-

ers, except when momentarily necessary to

such as in restrooms and break rooms.

tact; and limiting the number of individuals

facilitate or accept payment and hand off

in common areas, such as elevators, locker

items or deliver goods. San Francisco re-

If the work site cannot be configured to

quires that each employer prepare a Social

provide adequate physical distance, the

Distancing Protocol, as discussed below,

employer should consider ways in which

Each business operating in San Francisco

and distribute it to all employees.

to reduce the number of people on site at

must complete, post onsite, and follow

rooms, and restrooms.

any particular time. Adding shifts, having

the city’s Social Distancing Protocol. A

Many industries will be required to adopt

employees work alternate days, and add-

link to a model Social Distancing Pro-

a Health and Safety Plan and distribute it

ing new space can all be considered.

tocol, which includes a checklist with

to all employees. A list of the San Francisco

instructions and details can be found on

COVID-19 Health Directives, with links to

Work stations, keyboards, telephones,

page 50. Employers must complete their

model health and safety plans where re-

and other office equipment should not

own Social Distancing Protocol and dis-

quired can be found on page 50. Note that

be shared, if possible. While some equip-

tribute it to all employees.

there is a specific Guidance and Model

ment, such as printers and break room

Health and Safety Plan for offices.

appliances, cannot be provided for every

Available Time Off

employee, the employer should consider

Individual Control Measures

California law already provides for

ways to limit their use. One person could

employer-paid sick leave as well as state

Employers may wish to conduct a sec-

be responsible for all print jobs. Employ-

programs to provide partial wage replace-

ond screen when the employee arrives

ees can be encouraged to bring daily

ment for employees who are disabled

at work, including having the employee

meals in coolers, rather than using

verify that they are feeling healthy and

the refrigerator.

28

AUGUST 2020 | SF APARTMENT MAGAZINE

A Brave New Workplace… continued on page 50

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LE

LE

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24TH STREET MIXED USE INVESTMENT 6 Apartments & 2 Rental Stores Asking $2,100,000

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PLEASE CONTACT US FOR MORE INFORMATION:

STEVEN CARAVELLI

Senior Commercial Associate 415.229.1367 Steven.Caravelli@cbcnrt.com California DRE License #00879834

KEVIN CARAVELLI

Sales Associate 415.229.1288 Kevin.Caravelli@cbcnrt.com California DRE License #01988049

100% Committed to Long-Term Client Relationships

We recognize the long-term value of mutually beneficial relationships far outweighs the short-term value of any particular transaction. © 2020 Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates. All Rights Reserved. Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates fully supports the principles of the Equal Opportunity Act. Each Office is Independently Owned and Operated. Coldwell Banker Commercial and the Coldwell Banker Commercial Logo are registered service marks owned by Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial SF APARTMENT MAGAZINE | AUGUST 2020 Affiliates. Each sales representative and broker is responsible for complying with any consumer disclosure laws or regulations.

29

FOR SALE

FOR SALE

Cole Valley | 6 Units | $3,075,000

SOLD

Marina District | 9 Units | $6,450,000

SOLD

Alamo Square | 12 Units | $6,950,000

Over Asking

SOMA | 16 Newly Constructed Apartments | Market Priced In association with Jon Holmquist

In association with Dan McGivern

Fantastic Buildings. Unique Transactions.

There is a unique story for each of these properties. For detailed information on these buildings, market conditions, soft story issues, or an estimate of value for your property, please call. We look forward to speaking with you.

Offices Throughout the U.S. and Canada

30

AUGUST 2020 | SF APARTMENT MAGAZINE

www.MarcusMillichap.com

Specialization • Expertise • Results

SOLD

Haight Ashbury | 17 Units | $8,050,000

SOLD

North Beach | Mixed Use | $11,000,000

In association with Joe Levy

In association with Taylor Flynn & Gino Franco

FOR SALE

Duboce Triangle | 9 Units | $6,350,000 In association with Joe Levy

Marina District | 9 Units | $4,250,000

SOLD

In association with Nick Bonn

To access the investment market, contact the market leader.

Sanford Skeie

Senior Vice President Investments National Multi Housing Group (415) 625-2153 sandy.skeie@marcusmillichap.com License: CA: 00982336

Clinton Textor

First Vice President Investments National Multi Housing Group (415) 625-2157 clinton.textor@marcusmillichap.com License: CA: 01318639

www.MarcusMillichap.com

SF APARTMENT MAGAZINE | AUGUST 2020

31

ALL ABOUT COPA written by

T H E JO N E S T E A M

An analysis of COPA’s impact on the market and what it could look like in coming years.

Author’s Note: We are not attorneys, nor are we liable for any advice or errors in this article. We have consulted with well-known San Francisco attorney M. Brett Gladstone and liberally quoted from his published FAQs (g3mb.com). We find it amusing that the business of providing housing and selling and investing in real estate in San Francisco requires us to start with a legal disclaimer, but as they say in the brokerage community (much too often), “It is what it is.”

What is COPA? In April 2019, the San Francisco Board of Supervisors passed, and the mayor signed into law, the Community Opportunity to Purchase Act—COPA for short. The legislation became effective on September 3, 2019 and it requires sellers of residential buildings with three or more units (and includes vacant land that may be developed to include three or more units) to offer their properties first to a Qualified Non-Profit (QNP) before putting the property on the market to sell to any private party.

If a QNP indicates an interest to pursue a property before a five-day notice period expires, they have an additional 25 days to investigate and write an offer. If there is no indication of interest, the property can be marketed freely and the QNP has no further right to purchase.

If a QNP writes an offer within the 25-day “first offer” period, the seller can accept, reject, or make a counter-offer. If no deal is struck, the seller can market the property, but the QNP has a right of first refusal to purchase the property on whatever other terms the seller may accept from another buyer. In other words, the QNP will get a chance to come back for a second bite of the apple. For example, if a QNP offers 20% below the list price for the property and the seller rejects that offer, the QNP still has the right to match the best offer found in the open market. It all sounds very confusing, but in practice, since the implementation of this law ten months ago, no QNP has exercised their right to match the best offer in the market.

Why was COPA enacted?

Prior to COPA, there were small properties that would have been perfect for a QNP to purchase to preserve low-income housing in San Francisco, but too often these buildings were sold before any QNP even knew it was on the market. These buildings often had tenants who were paying far below market rent. They would be sold

32

AUGUST 2020 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | AUGUST 2020

33

to developers who used what some refer

of the first things we learned is that the

off site instead of building it on the site

to as “predatory equity” to buy buildings.

COPA program is not actually a program.

they just purchased. For example, in April

Predatory equity is a term used by tenant

It is a framework to give the eight QNPs

of this year the developer of a 101-unit

advocates to describe the investment of

a chance to look at all potential sales that

project located at Geary and Masonic was

money or equity to take advantage of an

come to market for the Small Sites acquisi-

allowed to pay a $4.5 million fee instead of

opportunity where tenants are intended

tion program. Although COPA QNPs can

building affordable housing at the site. The

to be displaced. After closing escrow, a de-

use other sources of funding, COPA was

use of these fees are 90% for building new

veloper would initiate Ellis Act evictions to

designed to facilitate the SF Small Sites

housing and 10% of these fees can be used

clear out the building of these low-paying

Acquisition and Rehabilitation Program.

for the Small Sites program. At this point

tenants and redevelop them as tenancy-

Since 2014, there have been 51 successful

in time, all the monies in the account have

in-common offerings to higher-income

small sites, with approximately $160 mil-

already been allocated. In other words,

buyers. The evicted tenants were displaced.

lion dollars loaned to acquire and rehabili-

there is no funding in this pool to acquire

The political fallout of this kind of scenario

tate 536 residential units.

new small sites today. The future inflow of fees is uncertain as fees only come in

was particularly strong in the Mission district. COPA was developed to eliminate

Since COPA has been implemented, there

when the projects move forward to the

these quiet, quick tenant displacement

have been only six buildings successfully

stage of issuing building permits for the

deals and give QNPs a shot at retaining low-

purchased for a cost of $18.5 million dol-

project. The development pipeline in San

income housing for those who needed it.

lars and a total of 42 residential units. Five

Francisco is substantial at the moment, but

of those six buildings were purchased by

it is extremely hazy during the COVID-19

What do QNPs really want to acquire for the Small Sites program?

one QNP—the Mission Economic Develop-

crisis as to when these developments may

ment Agency or MEDA. Lee noted that one

actually move forward and the funds will

The Small Sites program is a program for

of the difficult issues when the COPA law

be paid into this pool.

purchasing and/or rehabilitating small

was enacted was that it created rights to

multifamily properties. The program was

purchase, but it did not create funding to

created in 2014 to protect and establish

make those purchases happen. As it stands

How much money is actually in the fund at this time?

long-term affordable housing through-

now, with the impending $2 billion pro-

There is currently about $198 million left

out San Francisco. Typically, a Small Sites

jected city budget deficit brought on from

in Preservation and Seismic Safety (PASS)

sponsor is looking for a property housing

the COVID-19 crisis, there is a very real

funds, which is money left over from the

low-income tenants that are in danger of

“pause” in all programs throughout the

seismic brick retrofit bond issue from 1992.

being evicted through the Ellis Act. One of

city government and QNPs are working to

The SS part of the name is a misnomer

the big gains that COPA offers for the QNPs

diversify their funding sources.

today since there are not many, if any, brick

is the 25-day right of first offer after they

buildings left to retrofit. The Preservation

indicate interest in a building. This pause

When we first learned the details about

part of the fund is what has been adopted

when a QNP shows interest in acquiring a

the program, we thought it was flush with

for the Small Sites Program. One of the

project gives the QNP time to talk with the

cash for purchases from the November

limitations of this source of funds is that it's

tenants and find out if two-thirds of the ten-

2019 bond that passed and that there was

considered senior lending and it must be

ants are on board for the program and are

a large pool of funds from affordable

serviced by the income from the tenants in

low-income qualified. The QNPs also need

housing linkage fees.

the building. It is what is called “hard pay”

to know that there are no illegal sublet situ-

or a priority lien on the collateral, which

ations, which would complicate the sale. If

In reality, the bond fund is empty. Voting

consists of the collected rents in the build-

less than 66% of the tenants are on board,

it in does not actually get the bonds is-

ings. Since these funds need to be paired

the QNP will pass on the purchase. Prior to

sued, sold, and the cash collected in the

with other funds to make a complete stabi-

COPA, this investigation period was much

city’s bank account. When the bonds are

lized city-backed project, they can't really

shorter and more difficult in the free mar-

finally issued, the funds earmarked for

be executed until the 2019 bond is funded.

ket and most brokers would prohibit the

preservation of existing housing and small sites acquisition are to be approxi-

There are also some limited “geographic”

mately $30 million. However, because

funding sources available, but the only

How has COPA impacted the market?

of COVID-19, it's not clear when this will

one of note is the South of Market

happen. The expectation is sometime

(SOMA) Stabilization Fund, which has

We recently talked with Jonah Lee, direc-

before the end of the year.

$2.5 million for projects within that area

QNP from talking to the tenants.

of the city. This could be a down payment

tor of portfolio management and preservation at the Mayor's Office of Housing and

The linkage fees are sometimes referred

for five smaller projects paired with con-

Community Development. He was incred-

to as the “fee out” or “fee in lieu” monies.

ventional bank loans.

ibly patient with our questions and very

The fees are paid by a developer who will

helpful in explaining the program. One

pay into a fund to build affordable housing

34

AUGUST 2020 | SF APARTMENT MAGAZINE

Consider COPA… continued on page 60

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415.614.4354 mark.bonn@compass.com lic.: 01008844

415.814.6699 mirella.webb@compass.com lic.: 01409540

Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01527235. All materials presented herein is intended for informational Purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice.

No statement is made as to accuracy of any descriptions. This is not intended to solicit property already listed.

commercial

Call us for a FREE and confidential valuation of your property or to consult about your real estate needs.

SF APARTMENT MAGAZINE | AUGUST 2020

35

36

AUGUST 2020 | SF APARTMENT MAGAZINE

RESILIENT RESIDENTS written by

CARMEN CHU

How the newly formed Economic Recovery Task Force is reopening and rebuilding an equitable San Francisco.

This year’s Women’s Equality Day in August marks the 100th anniversary of the adoption of the 19th Amendment to the United States Constitution, guaranteeing women the right to vote. Earlier this year, San Francisco Assessor Carmen Chu, the founder of the W Challenge—a civic engagement project started in 2018 to raise women’s voices and voting power—was still planning a series of events to elevate women’s leadership in celebration of this historic milestone. However, like many of us, her 2020 plan made a sharp turn with the unforeseeable COVID-19 crisis. Quickly, she found herself in a new leadership role as the only female co-chair of the city’s newly created Economic Recovery Task Force, responsible for helping San Franciscans get back on their feet while building a resilient and equitable economic future.

Never one to turn away from a challenge, Assessor Chu is using her fiscal expertise and knowledge of public sector finance to lead San Francisco through the unprecedented economic impacts from the COVID-19 crisis toward a successful reopening and recovery for small businesses and residents, reducing recovery time, and mitigating losses.

How was the Economic Recovery Task Force created?

In San Francisco, we are fortunate that city leaders made the tough decision to order shelter-in-place early to slow the spread of COVID-19. San Franciscans did their part to flatten the curve and prevented a surge in cases and hospitalizations, which allowed hospitals to take good care of the sick. However, putting a hard stop on our economic activity had immediate and devastating impacts on the city’s residents, businesses, and finances. The unemployment rate in San Francisco rose from below 3% in February to 12.6% in May, and the city’s budget deficit is projected to be $1.7 billion over the next two years.

Unlike the Great Recession, this is an unprecedented crisis connected with public health, requiring us to be thoughtful yet flexible during our economic recovery until an effective treatment or vaccine is available. Therefore, Mayor London Breed and Board President Norman Yee convened the Economic Recovery Task Force to develop strategies and recommendations to reopen the economy and address challenges with our sights on a more equitable and resilient economy.

The Task Force is comprised of representatives from a wide cross section of industries, neighborhoods, and stakeholders, including our partners from non-profits, academia, research institutions and labor.

What is the purpose of the Task Force?

The purpose of the Task Force is to build resiliency into our interim economy, through the next one to two years, while also facilitating long-term investments recognizing that how we do business and how we utilize public spaces are being reshaped through our COVID-19 experience. A safe economic reopening is critical for businesses to survive, putting people back to work and safeguarding city services. We are also seeing that the pandemic has exposed and exacerbated inequities and vulnerabilities in our current economic system. Vulnerable populations, such as immigrants, low-income families, communities of color and seniors are disproportionately impacted by the crisis. For example, more than half of the cases that tested positive are among our Latinx population and close to half of the deaths have come from our Asian American population. It is also important to acknowledge that, even before the pandemic hit, that the benefits of San Francisco’s booming economy after the Great Recession weren’t felt by all.

SF APARTMENT MAGAZINE | AUGUST 2020

37

RESOURCES FOR HOMEOWNERS EXPERIENCING FINANCIAL HARDSHIP Homeowners experiencing financial hardships due to pandemic can visit the Mayor’s Office of Housing and Community Development at https://sfmohcd.org/COVID19HELP to learn more about their COVID-19 HELP ( Homeowner Emergency Loan Program).

COVID-19 HELP loans may be used for current and future HOA dues for up to 12 months; delinquent HOA dues; delinquent and current special assessments; mortgage forbearance deferred payments that are due in one lump sum when an affordable repayment option is not available; and delinquent non-escrowed property taxes.

Please note that there are several key requirements on the HELP loans, such as borrowers must have been current or less than 30 days past due on their mortgage loan account, property tax account, and/or HOA account as of April 1, 2020, and maximum household income cannot exceed 120% of AMI. Learn more by visiting their website.

that allows businesses flexibility to operate outside, on sidewalks and streets, without an overburdensome application process for sidewalk uses. Though this may not work in every community or for every business, it was one way the city thought creatively to support outdoor dining and retail.

Task Force members and San Franciscans also expressed a need for more certainty.

In May, the city announced a Roadmap to Reopening (Roadmap). The Roadmap communicates the city's approach to reopening and the sequence in which reopening might happen so that businesses and San Franciscans can prepare and plan

WHY I DID NOT RECEIVE AN ASSESSMENT REDUCTION DUE TO COVID-19?

ahead. The city’s intent is to continue to

able property as of January 1 each year and compare it to the property’s Proposition 13 (1978) protected value. The lower value of the two ise used to calculate the property tax bill due December of that year and April the following year.

data (i.e. new health findings, local health

Under State law, Assessors are required to consider the market value of a tax-

With the local declared emergency and shelter-in-place public health order happening after the lien date, we do not see an impact on property market values on January 1, 2020. However, if the economic recovery is slow and a downturn is extended through the next year we may see impact to market values for January 1, 2021.

In addition, whether a reduction is granted depends on each property’s individual Prop 13 value because a temporary reduction would be granted only if the market value is lower than the Prop 13 value. For example, if your home’s Prop 13 value is $700,000, despite the market value dropping from $1,000,000 to $900,000, you will not receive an reduction because the market value is higher than the Prop 13 value.

update and refine the Roadmap based on conditions) and state direction. In late June, with the resurgence of COVID-19 cases, the city has had to pause reopening and monitor health indicators. San Francisco has not had to roll back openings because of our deliberate process, but how we do moving forward will depend on all of us continuing to do our part to drive down and keep down the spread of COVID-19.

The Task Force is focusing on developing recommendations for middle and long-term policy ideas for San Francisco's economic recovery. The first draft of the

That’s why our Task Force members

has received and evaluated more than 1,200

recommendations will be available in

are diving into policy ideas for a more

emails and surveys from San Franciscans.

mid-August at onesanfrancisco.org/covid-

resilient and equitable economy. We’re

We’ve conducted more than 40 public

19-recovery. Final recommendations will

organized around four main areas: (1)

virtual events to solicit input and feedback.

be available in October.

vulnerable communities, (2) jobs and

These efforts included a joint session with

business support, (3) economic develop-

the city’s Immigrant Rights Commission,

ment and (4) arts, culture, hospitality and

interviews with restaurants, and engage-

Resources for the real estate industry

entertainment. There are separate efforts

ments led by Task Force members. This

Because so much information is constantly

underway to think through services or

feedback has been critical in shaping work

being updated, I wanted to share a few criti-

activities that are underpinnings for an

and has informed the city in areas where

cal links to stay informed:

open economy, including public transpor-

we needed to do better.

tation and education.

• San Francisco's Local Reopening Given the dramatic and immediate impact

What has the Task Force accomplished so far?

Roadmap shows the latest phased

COVID-19 has had on our economy, one

reopening plan for our city—this will

of the programs launched recently was the

be updated and adjusted based on

We know that the success of our reopening

Shared Spaces program. The goal of the

health indicators, state guidance and

is rooted in San Francisco business own-

program was to support local businesses

new developments in our understand-

ers, workers, industry experts and com-

and remove as many barriers as possible to

ing of COVID-19: sf.gov/step-by-step/

munity leaders. That’s why we conducted

operate, understanding the challenges that

reopening-san-francisco

an extensive outreach campaign to hear

new public health restrictions may pose.

directly from the experts. Since the end of

Through the Shared Spaces program, the

• San Francisco Department of Pub-

April, the Economic Recovery Task Force

city moved quickly to establish a program

lic Health Indicators provides an

38

AUGUST 2020 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | AUGUST 2020

39

up-to-date status report on all the local

force case involving Rodney King. As a

It is worth repeating the simple public

health indicators DPH is monitoring to

young girl, I remember the smell of ash in

health guidance we can all follow to help:

guide their reopening decisions: data.

the air and the endless news coverage of

Wear a face covering when you go out;

sfgov.org/stories/s/epem-wyzb

protests across the city. I remember fear

practice physical distancing; wash your

and confusion as my parents were held

hands often; and stay home if you are sick.

For a comprehensive list of San Francis-

up at gunpoint. Sixty-three people died

co’s Health Orders and Directives, visit:

and more than 2,000 were injured during

Go to sf.gov/knowbeforeyougo for more

sfdph.org

the riots. I remember talks about the need

helpful tips on how to be safe in the age

for change and almost thirty years later it

of COVID-19.

Office of Economic and Workforce Devel-

feels, in some respects, like we are in the

opment website aggregates resources for

same place. As we think about economic

The 2020 W Challenge

businesses and workers: oewd.org

recovery, I want to make sure we think

Even with COVID-19 we are trying to

about how policy recommendations im-

honor the civic celebrations that highlight

California Reopening Guidelines shows

pact our diverse communities and whether

important milestones and issues—af-

sectors and industries allowed to reopen in

those impacts impart for the future a San

ter all, we should not let COVID-19 take

the state (local counties may re-open at a

Francisco that is more resilient and that

everything away from us! In May, for ex-

different pace based on local health experi-

shares prosperity more equitably.

ample, we celebrated Asian Pacific Ameri-

ence): covid19.ca.gov/roadmap-counties

My personal experience and reopening strategy

My worries and hopes as a city leader

can Heritage Month by inviting rising APA chefs from some of our favorite local eateries to join us for an online “Cook-

In June, the country saw surges of cases

ing with Carmen” series. Through the

The past few months have been incred-

and hospitalizations and, unfortunately,

series we had a chance to meet the talents

ibly difficult. So many San Franciscans

the Bay Area and San Francisco are not

behind the scene, to pick up a cooking

have shared what it has been like to lose

immune to these trends. We must protect

tip or two and to learn how to support

their jobs and their businesses. So many

the public, especially our vulnerable com-

local restaurants at the same time. (Visit:

people are barely hanging on. As a daugh-

munities and our essential workers.

instagram.com/carmenchusf to catch our ongoing series).

ter of small business owners, these stories especially hit home. Many businesses

We also need to help create safer envi-

were already operating on the margins

ronments for people to get back to work,

For Women’s Equality Day (August 26,

and the prospect of opening back with

take care of their families, and reopen

2020), commemorating the 100-year an-

limited capacity is untenable. For others,

our economy. To do that, our reopening

niversary of women winning the right to

the uncertainty of when they might open

plan must continue to be grounded in

vote, we will be taking our W Challenge

and what their customer base will look

data, facts, and our emerging knowledge

celebration online! This year our social

like when they open is also extremely

around the coronavirus. While our fed-

media campaign will spotlight the 100

stressful. Even though my parents have

eral administration still lacks the leader-

years of women leaders before us, while

long since retired, I can understand how

ship to provide the resources and support

continuing the important message of vot-

devastating this would have been for

that we need to better control the spread

ing and civic participation. Follow us at @

their business, and I want to help busi-

and safely reopen, it is important to re-

CarmenChuSF on Facebook or Instagram

nesses and people avoid the whipsaw of

member that our success is up to us.

to stay connected.

I worry that not all businesses, especially

Let’s not forget that we have been reopen-

The W Challenge is a collaboration led by

small neighborhood businesses, will have

ing the economy for the last month and

the San Francisco Assessor’s Office, the

capital to reopen again. Small businesses

a half. We were able to keep the trans-

Department on the Status of Women and

are not only the backbone of our econ-

mission rate low by taking precautions.

the League of Women Voters San Fran-

omy, they are also what make our city

If we want to continue to reopening the

cisco with a simple goal of raising wom-

vibrant and unique.

economy, I believe we need to double

en’s voices. Each year we design a new

down on our personal efforts to keep

“challenge” to encourage women to take

In addition to the economic and health

safe distances, to limit interactions with

action to shape the future they want to see.

stresses, as a city, we are also deeply chal-

people outside our immediate house-

lenged by the racial inequities, which have

holds, to wear a mask and to practice

been exposed. Growing up, my parents

good hygiene. We also need to do every-

owned a family restaurant in South Central

thing we can to get the Bay Area counties

Los Angeles, the epicenter of the 1992 ri-

more aligned in their reopening actions

ots. The riots were sparked with the acquit-

because so many of our residents and

tal of four police officers in the excessive

workers move freely around the region.

having to close, reopen, and close again.

40

AUGUST 2020 | SF APARTMENT MAGAZINE

Carmen Chu is the Assessor-Recorder of San Francisco.

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EFFECT OF RECENT CHANGES IN RENT LAWS ON APARTMENT BUILDINGS WITH CONDOMINIUM MAPS Below is an analysis (Herzig & Berlese) of rent control on buildings with condominium maps on them where the units are held as rentals. These are often called “shelf-condos.”

State rent control law. The Tenant Protection Act of 2019 imposes rent increase limitations on existing tenancies and requires a just cause for eviction. Initial rent upon vacancies can be set at any amount. There are a number of exemptions from the rent limitation and just cause requirements, two of which may apply to your building. To be eligible for either exemption, you must provide a specific statutory notice to tenants when you enter into a new lease or renew an existing lease or rental agreement. This is the language, to be used verbatim: “This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined

by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”

The first of the two exemptions exempts buildings that are 15 years old (as determined by the date the certificate of occupancy was issued) or less. The second is for properties where title to one unit is “alienable separate” from any other unit, which includes condominiums. Obviously, this exemption is important for shelf-condo buildings that are more than 15 years.

There is a possible legal argument the second exemption does not apply to shelf condos based on a couple of cases from the early 1980s. Tenants could argue that a building that requires a final public report (five or more units) from the California Department of Real Estate had to have an active public report on the date the legislation went into effect. The reasoning is that it is illegal to sell a unit in a building without a final public report and without that report title to one unit is not “alienable separate” from title to another unit. Based on the way we read the statute and how it differs from the way shelf condos are regulated under the Costa-Hawkins Rental Housing Act, as well as the facts of the 1980 cases, we don’t think it’s a winning argument, but wanted to let you know about it. To be safe, you may want to keep your public report current. A public report is good for 5 years, so you may have to renew it.

San Francisco rent control law. New units built after June 13, 1979 remain exempt from the San Francisco limitations on rent increases under the Costa-Hawkins Rental Housing Act. However, San Francisco enacted legislation at the end of 2019 that requires a just cause for eviction for all residential rental units regardless of age.

The latest amendment to the San Francisco rent law requiring a just for eviction on all buildings makes it extremely difficult to vacate a shelf condo building, because there is no just cause to evict to make rental units available for sale to buyers. This recent amendment leaves the owner of shelf condos three options to make the building into a bona fide condominium project: (1) wait until all units in the building have become vacant, (2) gradually turn the project from an apartment building to condominiums by selling units as they become vacant or to tenants who may be interested in purchasing, or (3) go out of the rental business by using the Ellis Act. All of these alternatives are expensive, each in a different way. If you are considering selling units in your self condo building, you should contact one of us to discuss which alternative is the best for a specific building and for you.

Herzig & Berlese, Attorneys at Law, “Effect of Recent Changes in Rent Laws on Apartments Buildings with Condominium Maps,” press release, June 4, 2020.

42

AUGUST 2020 | SF APARTMENT MAGAZINE

sf.0219.rentals-in-sf.pdf

1

2/6/19

7:16 AM

Landlord & Leasing Agent, A Winning Combo.

C

M

Y

CM

MY

CY

CMY

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Having over 25 rental units of her own, Jackie brings first-hand experience as a landlord to all of our Rentals In S.F. clients.

Every day, our team endeavors to find qualified tenants for our clients.

With an expert understanding of the ever changing San Francisco rental market, we have made it our priority to fill your vacant unit quickly, effortlessly, at market rent and with your ideal tenant!

With just one phone call, Jackie will come over to access your needs, appraise your unit, and do all the marketing, prospecting and screening.

We then present you with a qualified tenant ready to move in.

Call Jackie at Rentals In S.F. to fill your vacancy. It will be one of the best calls you’ll ever make. Just ask all our clients!

Former SFAA winner * Leasing Agent of the Year * Landlord of the Year

SF APARTMENT MAGAZINE | AUGUST 2020

43

Trend Alert… continued from page 20

recent rise in community solar and virtual

mid-2021. Each plant will bring in 74.5

net metering options.

megawatts of power for 1.5 gigawatts total—including 37.5 megawatts specifi-

“Batteries allow us to stabilize the grid,” says Levin. “They can be very, very useful

Unlike a leased system, which generally

cally set aside for low-income custom-

on an onsite property basis. They can be

involves paying a monthly fee for solar

ers—nearly doubling the 2 gigawatts

backup power and they give you control

panels installed and maintained by a

of community solar currently installed

over the kilowatt hours that you produce.”

third party on the lessee’s property, vir-

throughout the country.

tual net metering (VNM) is more like a soAs costs for solar energy production

lar subscription service. It’s solar’s answer

Community solar may also create lower-

and storage have come down, leasing

to the growing “share” economy.

cost opportunities for developers to comply with increasing green mandates

solar systems has become less popular.

About 28% of residential solar

A community solar array is a large scale,

without installing systems of their own.

systems are owned by third parties,

off-site solar panel installation that will

California recently made headlines by ap-

down from 62% in early 2014,

offer available energy to hundreds of

proving the state’s first community solar

according to the SEIA.

nearby homeowners and businesses,

program since mandating that all new

who can then purchase a portion of the

residential properties under three stories

In general, it makes more financial sense

community solar panels and get credits

have solar power beginning in 2020.

to buy solar systems outright if possible

depending on their percentage of the ar-

Sacramento’s recently approved Neigh-

or utilize current low interest rates to

ray via VNM. (It is unclear if this purchase

borhood SolarShares program allows

finance the purchase of the system if

would allow the community solar owners

developers within the Sacramento Munic-

the upfront capital expenditure would

to get a tax credit under the ITC, as the

ipal Utility District to sign on to a 20-year

be too high. Leased systems (otherwise

IRS has been deciding these on a case-by-

agreement with the utility to comply with

known as power purchase agreements)

case basis. But a 2015 ruling in favor of a

the new solar building requirements. The

are not eligible for the federal tax credits

Vermont taxpayer who bought into a local

solar community was watching the case

mentioned above, not to mention any

community solar system is often consid-

closely as the SMUD agreement is likely

additional state, local and utility rebates

ered a guide for how the IRS would rule

to set the precedent in other municipali-

and incentives. Furthermore, commercial

in similar cases.)

ties across the state.

apartment complexes reach a break-even

The amount of VNM credits that own-

SMUD will use its current 13-MW Wild-

point in a little over eight years, accord-

ers receive depends on the size of their

flower project located in Rio Linda to

ing to data collected by Paradise Solar

share in the community solar system. For

supply the solar power initially and will

Energy, a multistate solar installer.

example, if the owner purchased 10 per-

add several new community plants of 20

solar systems like the kinds put on large

cent of a community solar array, they’ll be

MW or less. To comply with the new regu-

Given that the average solar system

credited for 10 percent of the production

lations, occupants of new homes must

comes with a 25-year performance guar-

of that system on their electric bill.

participate in the community solar program for 20 years and will receive an an-

antee, and many can last far longer than that, owners who anticipate holding their

Because community solar and VNM

nual net benefit of about $10 per kilowatt

properties over the long term are mak-

allow people to buy into solar power

(kW) per year. But SMUD will also work

ing a bright investment when they install

without the time or expense of creating

with builders to continue to offer rooftop

their own solar systems rather than lease

their own solar power on their proper-

solar for owners who would prefer that,

them from a third party. “You’ll have de-

ties, it has become increasingly popular

rather than enrolling in the community

cades left of solar’s financial benefits and

in recent years. It is also a nice option for

solar option.

truly free electricity,” according to the

green-minded renters who pay their own

Paradise Solar report.

electric bill as people do not need to be

Be it onsite or in the community, there are

homeowners to buy into a community so-

an abundance of options for those look-

Shared Solar

lar farm and residents can take the credits

ing to renewable energy to both lower

No matter how inexpensive solar produc-

with them when they move as long as it’s

prices and lighten our load on the earth.

tion and storage has become, some build-

within the same area.

Through a combination of government incentives and new technologies, it has

ings simply aren’t good candidates for the systems. Approximately half of U.S. house-

Community solar is also beneficial

never been easier to see a sunny future

holds and businesses are unable to install

because it allows for the economies of

for solar power.

rooftop solar due to space, lack of sun

scale that bring solar system prices down

exposure or other limitations, according to

even further. Florida regulators recently

PG&E. But many more people can still take

approved the buildout of 20 new com-

advantage of solar’s benefits thanks to the

munity solar plants across the state by

44

AUGUST 2020 | SF APARTMENT MAGAZINE

Emily Landes is the content director at Livable, a smart billing software company with products designed to save money, as well as the environment.

To find out what Livable can do for your property, check out livable.com or call 877-789-6027.

OpenScope Studio 1776 18th Street San Francisco, CA 94107 openscopestudio.com info openscopestudio.com (415) 891-0954

• Multi-family specialists • Value add remodels • Accessory Dwelling Units • Physical needs assessments • Pre-purchase consultations • Feasibility and capacity studies • Interior / Exterior renovations • Urban infill • Mixed-use • Review Services

SF APARTMENT MAGAZINE | AUGUST 2020

45

sfaa sfaa 2020 What You Need to Know

Legal Q&A… continued from page 16

impairment that substantially limits one or more major life activities. A request can be made in any form. You may only ask for verification of the disability if it is not obvious or visible and you do not have prior knowledge of the disability. Verification does not need to be from a doctor—a therapist, nurse, or social worker is sufficient. If it is not obvious, you can also ask how the requested accommodation would alleviate

2020 SFAA UPDATES

this person’s particular disability.

A request can only be denied if the request

VIRTUAL MEMBER MEETINGS August 17, 2020: Tenant-Attorney Panel

UPCOMING CLASSES During shelter-in-place, the monthly SFAA member meetings and classes will be held virtually. For member meeting topics and schedules, go to www.sfaa.org. For a list of virtual SFAA classes, turn to the calendar on page 48.

was not made by or on behalf of a person with a disability; if there is no disabilityrelated need for the accommodation; or if the accommodation requested is not reasonable. You are required to either grant or deny the request in a reasonable amount of time, and failure to respond constitutes a denial of the request. However, a requestor is not entitled to an immediate response.

In general, when it comes to comfort animals or companion animals, courts are

SFAA OFFICE CLOSURE The SFFA office will remain closed during the shelter-in-place mandate. However, SFAA staff is working round-the-clock to keep the nonprofit running. Timely payment of membership dues is necessary to help the association help you. Email MemberQuestions@sfaa.org to have your questions and concerns promptly addressed.

very liberal in allowing them. It is nearly impossible to deny a request for a companion animal without risking liability for housing discrimination.

But, a landlord is not responsible for granting accommodations that are not requested; nor is a landlord required to grant

SFAA TRADE SHOW WILL BE VIRTUAL The annual SFAA Trade Show will be held virtually on September 3, 2020.For more information, turn to page 10. To sponsor the event,email Vanessa Khaleel at vanessa@sfaa.org.

accommodations that are not requested for the tenant or applicant’s benefit. If the dog were brought to the property for the tenant’s benefit—say, as part of therapy—then you would be required to permit the dog, and if the tenant also requested a reasonable accommodation to permit the dog, you could risk liability for refusal to allow the dog to enter the building. You are required by law to accommodate your tenants’ disabilities, when requested—however, you are not required to accommodate a tenant’s guest’s disability.

—Shoshana Raphael

San Francisco Apartment Association

265 IVY STREET | SAN FRANCISCO, CA | 94102 | PHONE 415-255-2288 | FAX 415-255-1112

46

AUGUST 2020 | SF APARTMENT MAGAZINE

The information contained in this article is general in nature. Consult the advice of an attorney for any specific problem. Justin A. Goodman and Shoshana Raphael are with Zacks, Freedman & Patterson, P.C. and can be reached at 415-956-8100.

Help Us, Help You. Sign up for SFAA’s Advocacy Team.

The SFAA Advocacy Team was created to defend the rights of San Francisco property owners. We are looking for volunteers to join our advocacy team.

Volunteers will receive training and be tasked with advocating for local building owners, speaking at legislative hearings and writing to legislators to share personal experiences.

We can change the conversation at City Hall! With your help, we can rewrite the landlord-tenant narrative and show how bad policy hurts small property owners.

For more info contact Charley Goss at 415-255-2288 x14 or charley@sfaa.org.

sfaa’s 2020

TROPHY AWARDS Nominations Coming Soon

For More Information visit www.sfaa.org or contact Vanessa Khaleel at 415.255.2288 or vanessa@sfaa.org St. Regis, SF 125 3rd Street I 6-7 pm Cocktail Hour I 7-9 pm Formal Dinner & Award Presentation

SF APARTMENT MAGAZINE | AUGUST 2020

47

sfaa 2 2020calendar

sfaa

August

MONDAY, AUGUST 3

THURSDAY, AUGUST 6

TUESDAY, AUGUST 11

TUESDAY, AUGUST 11

11:30 a.m.

Zoom Webinar System

Vendors

Zoom Webinar System

Board of Directors Mtg.

Serving Notices

1:00 p.m. to. 2:00 p.m.

Members $30 Non Members $40

Lunch & Learn

Zoom Webinar System

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40

Tenant Lawsuits

1:00 p.m. to. 3:00 p.m.

Members $40 Non Members $50

THURSDAY, AUGUST 13

MONDAY, AUGUST 17

TUESDAY, AUGUST 18

THURSDAY, AUGUST 20

Annual Increases

Tenant Attorney Panel

Hoarding

ESA vs. Pets

Lunch & Learn

Zoom Webinar System

12:00 p.m. to. 1:00 p.m.

Virtual Member Meeting 1:00 p.m.

Members $25 Non Members $40

TUESDAY, AUGUST 25

THURSDAY, AUGUST 27

Rent Collection

ADA: When a Tenant

Zoom Webinar System

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40

Zoom Webinar System

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40

Lunch & Learn

Lunch & Learn

Lunch & Learn

Makes a Request

Zoom Webinar System

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40

Lunch & Learn

Zoom Webinar System

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40

SFAA MEMBER MEETINGS WILL BE HELD VIRTUALLY UNTIL FURTHER NOTICE DUE TO COVID-19. FOR TOPICS AND SCHEDULES, TURN TO PAGE 46 OR VISIT SFAA.ORG.

September TUESDAY, SEPTEMBER 1

THURSDAY, SEPTEMBER 3

MONDAY, SEPTEMBER 7

TUESDAY, SEPTEMBER 8

30 Notice of Intent to Vacate

Initial Inspection

11:30 a.m.

Final Move-Out/SDR

Lunch & Learn

Zoom Webinar System

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40

Lunch & Learn

Zoom Webinar System

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40

THURSDAY, SEPTEMBER 10

MONDAY, SEPTEMBER 21

Capital Improvement

TBD

Lunch & Learn Passthroughs

Zoom Webinar System

Board of Directors Mtg.

Lunch & Learn

Zoom Webinar System

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40

Virtual Member Meeting 1:00 p.m.

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40

48

AUGUST 2020 | SF APARTMENT MAGAZINE

join online at sfaa.org or call 415.255.2288

2020 join online at sfaa.org or call 415.255.2288

SAN FRANCISCO’S

RENT BOARD FEE

$25.00

Chapter 37A of San Francisco’s Administrative Code allows the city to collect a per-unit fee for each residential dwelling unit that is subject to the San Francisco Rent Ordinance. This fee defrays the entire cost of operation of the Rent Board.

This fee is billed to the landlord each year on the property tax statement sent in November, but the law permits landlords to collect a portion of the Rent Board fee from those tenants in occupancy as of November 1 of each year. A landlord is allowed to collect 50% of the cost of the fee from the tenant. If you have not collected Rent Board fees in the past, you can collect back to 1999.

ALLOWABLE RENT BOARD FEE COLLECTABLE FROM TENANTS 2019-2020

$25.00

2018-2019

$22.50

2017-2018

$22.50

2016-2017

$20.00

2015-2016

$18.50

SFAA’S

TENANT SCREENING SERVICE THROUGH INTELLIRENT STEP 1:

Create a free account at sfaa. myintellirent.com/agent-signup.

STEP 2:

Invite an applicant to apply via an online application customized to SFAA’s criteria.

You can also publish your available rental on Intellirent across mulitple ILSs. RATES

Intellirent is your free, online rental application and property marketing tool, partnered with Transunion to instantly return complete credit reports and nationwide eviction notices.

Renters pay the $40 application fee, which covers your costs.

For more information, simply create your free account or go to sfaa.org and choose the “Resources” tab. Then select “Tenant Screening.”

Please note that the maximum you can charge a tenant for screening services is $49.12.

CONTACT INTELLIRENT FOR MORE INFORMATION:

415-849-4400

CAPITAL IMPROVEMENTS

The capital improvement interest rates for 3/1/19 through 2/29/20 are listed below: AMORTIZATION

INT. RATE

MULTIPLIER

7 YEARS

2.8%

.01312

10 YEARS

2.9%

.00961

15 YEARS

3.0%

.00691

20 YEARS

3.0%

.00555

INTEREST ON DEPOSITS Deposits include all tenant monies that the owner holds, regardless of what they are called. At the landlord’s option, the payment may be made directly to the tenant or by allowing the tenant to deduct the amount of interest due from the rental payment.

INTEREST ON DEPOSITS PERIOD

AMOUNT

03/01/20 - 02/29/21

2.2%

03/01/19 - 02/29/20

2.2%

03/01/18 - 02/28/19

1.2%

03/01/17 - 02/28/18

0.6%

2014-2015

$18.00

03/01/16 - 02/28/17

0.2%

2013-2014

$14.50

03/01/15 - 02/29/16

0.1%

2012-2013

$14.50

03/01/14 - 02/28/15

0.3%

2011-2012

$14.50

03/01/13 - 02/28/14

0.4%

2010-2011

$14.50

03/01/12 - 02/28/13

0.4%

2009-2010

$14.50

03/01/11 - 02/29/12

0.4%

2008-2009

$14.50

03/01/10 - 02/28/11

0.9%

2007-2008

$13.00

2006-2007

03/01/09 - 02/28/10

3.1%

03/01/08 - 02/28/09

5.2%

$11.00

03/01/07 - 02/29/08

5.2%

2005-2006

$10.00

03/01/06 - 02/28/07

3.7%

2004-2005

$11.00

2003-2004

$21.50

2002-2003

$21.50

CONTACT THE SAN FRANCISCO RENT BOARD FOR MORE INFORMATION

ALLOWABLE RENT INCREASES

2020 – 2021: 1.8%

Effective March 1, 2020, through February 28, 2021, the allowable annual rent increase is 1.6%. This amount is based on 60% of the increase in the Consumer Price Index for all urban consumers in the Bay Area. A history of all allowable increases and their effective periods is provided.

ALLOWABLE RENT INCREASES PERIOD

AMOUNT

03/01/20 - 02/29/21

1.8%

03/01/19 - 02/29/20

2.6%

03/01/18 - 02/28/19

1.6%

03/01/17 - 02/28/18

2.2%

03/01/16 - 02/29/17

1.6%

03/01/15 - 02/29/16

1.9%

03/01/14 - 02/28/15

1.0%

03/01/13 - 02/28/14

1.9%

03/01/12 - 02/28/13

1.9%

03/01/11 - 02/29/12

0.5%

03/01/10 - 02/28/11

0.1%

03/01/09 - 02/28/10

2.2%

03/01/08 - 02/28/09

2.0%

03/01/07 - 02/29/08

1.5%

03/01/06 - 02/28/07

1.7%

SAN FRANCISCO RENT BOARD 25 Van Ness Avenue #320 San Francisco, CA 94102 415-252-4600 www.sfgov.org/rentboard

CONTACT THE SAN FRANCISCO RENT BOARD FOR MORE INFORMATION

415-252-4600 sfgov.org/rentboard

415-252-4600

& information

sfgov.org/rentboard

SF APARTMENT MAGAZINE | AUGUST 2020

49

the reason for the employee’s leave. Em-

soon as possible, to assure that all quali-

ployees who have a COVID-19 diagnosis,

fied time off is included as FMLA leave.

or who need to provide care for family

who have symptoms of COVID-19, or who

The first 10 days of Expanded FMLA leave

members. These programs remain avail-

are subject to a quarantine order must be

may be without pay. The employee may

able and may provide assistance to an

paid at the higher of (1) the employee’s

elect to use vacation, paid sick leave, or

employee who needs time off related to

regular rate of pay or (2) the applicable

other accrued paid time off. Thereafter,

Covid-19. For the balance of 2020, the

state or federal minimum wage. The FF-

the employee must be paid at the higher

two additional types of leave were made

CRA does not mention local minimum

of (1) 2/3 of the employee’s regular rate

available under the federal Families First

wage rates, which exist in many California

of pay or (2) 2/3 of the applicable state or

Coronavirus Response Act (FFCRA).

jurisdictions. For more highly compen-

federal minimum wage. However, these

sated employees, the maximum rate of pay

amounts are subject to a lower cap of

The first is paid sick leave and the second

required is $511.00 per day, or a total of

$200.00 per day, or a total of $2,000.00

is a modification of the leave available un-

$5,100.00 for the two-week period.

for the two-week period. The employer

A Brave New Workplace… continued from pg. 28

must maintain the employee’s group

der the federal Family and Medical Leave Act (FMLA). This is not your ordinary

FFCRA Paid Sick Leave must be provided

medical coverage during the Expanded

FMLA, as it applies to small employers. So,

to qualified employees immediately.

FMLA leave. If the employee normally

even if you are not normally required to

You may not require an employee to use

pays a portion of the insurance premium,

provide leave under the FMLA, you may

other paid leave, such as sick leave, paid

the employer may require the same level

be obligated to provide the new FMLA

time off, or vacation, before they use

of contribution during the Expanded

leave to qualified employees.

FFCRA Paid Sick Leave. Employers may

FMLA leave.

not change existing sick leave policies to The FFCRA requires employers with

avoid the additional paid sick leave obli-

Employee Screening Handout:

fewer than 500 employees to provide paid

gations under the FFCRA.

www.sfcdcp.org/wp-content/uploads/ 2020/05/COVID19-Personnel-Screen-

sick leave. Up to two weeks of paid sick

ingV2-Handout-FINAL-5.15.2020.pdf

leave is available for all employees who

The FFCRA also expands the Family and

are unable to work, or unable to telework,

Medical Leave Act (FMLA) to employers

for any of the following reasons:

with fewer than 500 employees. Small

Health and Safety Plan:

businesses with fewer than 50 employees

www.sfdph.org/dph/alerts/coronavirus-

may qualify for an exemption from the re-

health-directives.asp

• The employee is subject to a federal, state, or local quarantine or isolation order related to COVID-19.

• The employee has been advised by a health care provider (HCP) to self-quarantine due to COVID-19.

• The employee is experiencing symptoms of COVID-19 and is seeking a medical diagnosis.

• The employee is caring for an individual who is subject to federal, state, or local quarantine or isolation order related to COVID-19 or has been advised by a health care provider to self-quarantine.

• The employee is caring for the employee's child because the child's school or place of care is closed or is unavailable due to COVID-19 precautions.

• The employee is experiencing any other substantially similar condition specified by the Federal government.

quirement to provide leave due to school closings or child care unavailability if

Sample sign with face covering details:

providing the leave would jeopardize the

sf.gov/outreach-toolkit-coronavirus

business’ viability.

-covid-19

FMLA time off is available for all employ-

San Francisco’s cleaning and

ees who have worked for at least 30 days

disinfecting protocols:

and are unable to work, or unable to tele-

www.sfdph.org/dph/alerts/files/

work, for one of the following reasons:

COVID%E2%80%9019-MinimumEnvironmental-Cleaning-Standards.pdf

• The employee is caring for a person who is subject to a federal, state, or

Social distancing protocol and checklist:

local quarantine or isolation order

www.sfdph.org/dph/alerts/files/

related to COVID-19.

C19-07e-Appendix-A.pdf

• The employee is caring for the employ-

www.dol.gov/sites/dolgov/files/WHD/

child care provider is closed or is un-

posters/FFCRA_ Poster_WH1422

available due to COVID-19 precautions.

_ Non-Federal.pdf

Eligible employees may take Expanded FMLA for up to 10 weeks after exhausting their FCCPA Paid Sick Leave. Employers who learn that an employee is taking time

There are caps on paid sick leave under

that qualified for Expanded FMLA leave

the FFCRA, which vary depending upon

should provide the FMLA Leave notice as

50

AUGUST 2020 | SF APARTMENT MAGAZINE

FFCRA rights posters:

ee's child because the child's school or

Maggie Grover has worked with California employers, helping them to understand the complex state and federal laws governing the employment relationship, for more than 30 years.

She also conducts neutral investigations and mediates employment-related claims. She can be reached at mgrover@groverworkplacesolutions. com or 415-596-9433.

2020 Summer CCRM Webinar Series Schedule & Registration Course Course Name #

Date

PRICE

Time

Member

# of NonTotal Member Attendees

Series

Full CCRM Series (Value Savings)

PMR100

Introduction to Ethical Property Management

7/28/2020

1PM-3PM

$85.00

$100.00

PMR101

Renting the Property

7/30/2020

1PM-3PM

$85.00

$100.00

PMR102

Beginning and Maintaining the Tenancy

8/11/2020

1PM-3PM

$85.00

$100.00

PMR103

Renewal of Tenancy and Ending the Tenancy

8/13/2020

1PM-3PM

$85.00

$100.00

PMR104

Maintenance Management: Maintaining the Property

8/18/2020

1PM-3PM

$85.00

$100.00

PMR105

Liability & Risk Management

8/20/2020

1PM-3PM

$85.00

$100.00

PMR106

Budget Development and Implementation

8/25/2020

1PM-3PM

$85.00

$100.00

PMR107

Fair Housing: It’s the Law

8/27/2020

1PM-3PM

$85.00

$100.00

PMR108

Professional Skills for Supervisors

9/1/2020

1PM-3PM

$85.00

$100.00

EXAM

CCRM Final Exam

9/3/2020

1PM-3PM

FREE

Class Location Zoom Webinar System Upon registration the Zoom link will be emailed to the student Class is every Tuesday and Thursday

See schedule below

FREE

Total Due:

To Register

Online: www.sfaa.org Call: 415-255-2288 x.13 Email: stephanie@sfaa.org

(includes 9th Edition Managing Rental Housing textbook, CCRM binder and Welcome Packet; does not include the $75 CCRM application fee)

Attendee Information: o Member

Attendee Name: Title:

Company Name:

Address

City:

Phone:

Fax:

E-Mail:

Local Association ID Number:

Payment Information: o Credit Card

Zip:

o Mailing Check o Series Invoicing (members only benefit)

Credit card number: Signature:

o Non Member

Exp. Date Name printed:

Cancellation Policy: Cancellations must be made 72 hours in advance for a refund. SFAA does not provide refunds for No-Shows. Non-members must pay by credit card only!!! *Students requesting CalBRE Continuing Education Credits must show picture ID, immediately before admittance to the live offering.

CCRM Certification Renewal Policy: In order to keep the certification active, CCRMs must complete twelve hours of continuing education credits & submit a renewal application along with a renewal fee every other year (2 hours of these credits must be in Fair Housing)

caanet.org events@caanet.org 800.967.4222 • 980 Ninth Street, Suite 1430 • Sacramento, CA 95814

SF APARTMENT MAGAZINE | AUGUST 2020

51

sfaa professional

services directory 1031 TAX DEFERRED EXCHANGE SERVICES

FIRST AMERICAN EXCHANGE COMPANY 415-244-1339 www./firstexchange.com/ HERITAGE CAPITAL ADVISORS Eric Scaff 415-834-1031 www.heritagecap.com LAWYERS EQUITY EXCHANGE Brian Fogarty 415-701-1234 www.lex1031.com

ACCOUNTANTS

SHWIFF, LEVY & POLO LLP Elizabeth Shwiff 415-291-8600 x232 www.slpconsults.com

ALARM COMPANY

AEC ALARMS Michelle Rogers 408-298-8888 x123 www.aec-alarms.com/

ARCHITECTURE

OPENSCOPE STUDIO ARCHITECTS Mark Hogan 415-891-0954 www.openscopestudio.com Q ARCHITECTURE Dawn Ma www.que-arch.com

415-695-2700

ASSOCIATIONS

PROFESSIONAL PROPERTY MANAGEMENT ASSOCIATION J.J. Panzer www.ppmaofsf.org

ATTORNEYS

BORNSTEIN LAW Daniel Bornstein, Esq. www.bornstein.law CHONG LAW Dolores Chong DENNIS C. HYDE Dennis C. Hyde hydelaw@pacbell.net

415-490-9020

THE LAW OFFICE OF ED SINGER Edward Singer 650-393-5862 www.edsinger.net

FRIED & WILLIAMS LLP Clifford E. Fried www.friedwilliams.com

415-421-0100

LAW OFFICE OF KEVIN P. GREENQUIST Kevin Greenquist 415-977-0444x234 www.ztalaw.com

GOLDFARB & LIPMAN LLP Erica Williams 510-836-6336 eorcharton@goldfarblipman.com goldfarblipman.com

MASTROMONACO REAL PROPERTY LAW GROUP Leonard Mastromonaco 415-354-2702 len@mastrolawgroup.com

GOLDSTEIN, GELLMAN, ET AL, LLP Brett Gladstone 415-673-5600 x 238 www.g3mh.com

MCLAUGHLIN SANCHEZ, LLP Michael McLaughlin 415-655-9753 www.msllp.law

HERZIG & BERLESE Barbara Herzig bherzig@hbcondolaw.com

MILLAR AND ASSOCIATES, APLC James Millar 415-981-8100 x101 Millar-law.com

415-861-8800

JACOBSON LAW PC Isaac@jacobsonlawsf.com 415-421-0100 KAUFMAN, DOLOWICH, VOLUCK Ashley Klein 415-926-7612 aklein@kdvlaw.com LAW OFFICES OF FRANCISCO GUTIERREZ Francisco Gutierrez 415-805-6508 francisco@gtzlegal.com LAW OFFICE OF MICHAEL HEATH Michael Heath 415-931-4207 Mheath_law@sbcglobal.net THE LAW OFFICES OF KIMBALL, TIREY & ST. JOHN LLP Daniel Kimball 800-525-1690 www.kts-law.com LAW OFFICES OF DENISE A. LEADBETTER Denise Leadbetter 415-713-8680 www.leadbetterlaw.com

415-409-7611

LAW OFFICES OF SCOTT T. OKAMOTO Scott T. Okamoto 415-766-5871 www.scottokamotolaw.com

415-438-7807

LAW OFFICES OF DANIEL PICCININI Daniel Piccinini 415-345-8610 danielpiccinini@att.net

415-753-3811

DOWLING & MARQUEZ, LLP Jak S. Marquez 415-977-0444 x232 www.dowlingmarquez.com FRANK KIM ESQ., EVICTION ASSISTANCE Jo Biel 415-752-6070

52

FISHER & PHILLIPS, LLP Jason Gellar www.fisherphillips.com

AUGUST 2020 | SF APARTMENT MAGAZINE

LAW OFFICE OF JULIANA E. PISANI 415-800-7562 Juliana Pisani Juliana@jpisanilaw.com LAW OFFICES OF LAWRENCE M. SCANCARELLI Lawrence M. Scancarelli 415-398-1644 www.sfrealestatelaw.com

NICHOLAS GOLDMAN LAW Nicholas Goldman 415-350-8740 nicholas@nicholasgoldmanlaw.com O’GRADY LAW GROUP John O’Grady john@ogradylaw.com www.ogradylaw.com

415-986-8500

REUBEN, JUNIUS & ROSE, LLP Kevin Rose 415-567-9000 www.reubenlaw.com TOUR-SARKISSIAN LAW OFFICES Christine Tour-Sarkissian 415-626-7744 www.tslo.com TRN LAW ASSOCIATES Tiffany Norman tiffany@trnlaw.com

415-823-4566

WASSERMAN-STERN David Wasserman 415-567-9600 www.wassermanstern.com WIEGEL LAW GROUP Andrew J. Wiegel www.wiegellawgroup.com

415-552-8230

ZACKS, FREEDMAN & PATTERSON, P.C. Andrew M. Zacks 415-956-8100 www.zfplaw.com ZANGHI TORRES ARSHAWSKY, LLP John P. Zanghi 415-977-0444 www.zatlaw.com

BEDBUG DETECTION

CROWN & SHIELD PEST SOLUTIONSPREMIER Aurora Vidaca 888-970-1927 aurora@crownandshieldpestsolutions.com www.crownandshieldpestsolutions.com SCENT TEK Brent & Kevin Youngblood 415-933-0879 www.scent-tek.com

CLEANING SERVICES

OPTIMUS BUILDING SERVICES Claudia Giraldo 650-290-4607 optimusbuildingservices.com

CONSULTANTS: PERMITS & PLANNING

CENTER FOR SUSTAINABLE ENERGY Sarah Bliss 858-633-8099 sarah.bliss@energycenter.org EDRINGTON AND ASSOCIATES Steven Edrington 510-749-4880 steve@edringtonandassociates.com

CONTRACTORS

AGUILEAR CONSTRUCTION COMPANY Javier Aguilear 707-495-3932 javier@aguileraco.com SKYLIGHT REMODLING Josh Levitan contact@skylight.com www.skylight.com

800-961-2580

CORPORATE RENTALS AMSI Robb Fleischer www.amsires.com

415-447-2020

GOROVERGO Laura Ericson 832-977-6830 laura.ericson@echemail.com www.gorovergo.com

CREDIT REPORTING

INTELLIRENT Cassandra Joachim www.myintellirent.com

415-849-4400

ENERGY SERVICES / GAS & ELECTRIC

PACIFIC GAS & ELECTRIC COMPANY Sebastian Conn 415-972-5201 www.pge.com

ENVIRONMENTAL CONSULTING

A-1 CERTIFIED ENVIORNMENTAL TESTING/DUCT CLEANING Carl Gibbons 888-217-2719 chelseap60@hotmail.com a-1certifiedenvironmentalservices.com P.W. STEPHENS ENVIRONMENTAL Sheri Buenz 510-651-9506 sherib@pwsei.com

FIRE ESCAPE INSPECTION & MAINTENANCE ESCAPE ARTISTS Jabal Engelhard www.sfescapeartists.com

415-279-6113

GREAT ESCAPE FIRE ESCAPE SERVICE, INC. Rich Henderson 415-566-1479 www.greatescapeinc.com

FIRE PROTECTION CONTRACTORS

BATTALION ONE FIRE PROTECTION Tim Morse 510-653-8075 www.battaliononefire.com BELL FIRE AND LIFE SAFETY Marc Belluomin 650-580-5306 bellfire365@gmail.com COMMERCIAL FIRE PROTECTION, INC. Laine Sims 925-300-9534 www.fireprotected.com MAZZY’S FIRE PROTECTION Scott Mazzarella 415-665-5553 www.mazzysfire.com

FURNITURE RENTALS

BROOKFIELD FURNITURE-NORCAL Mary Baird 408-720-1252 www.bfr.com

GARBAGE COLLECTION SERVICES

RECOLOGY GOLDEN GATE RECYCLING Minna Tao 415-575-2423 recologysf.com RECOLOGY SUNSET SCAVENGER Dan Negron 415-330-2911 recologysf.com

HARDWARE GRAINGER Mark D. Sheddon

800-472-4643

INTERNET SERVICES PROVIDERS

COMCAST/XFINITY Michael Juliano www.xfinity.com

925-495-9922

LAUNDRY EQUIPMENT

WASH MULTIFAMILY LAUNDRY SYSTEMS Cathy Barsotti 650-340-8054 www.weblaundry.com

LENDING / FINANCIAL SERVICES

COUNTERPOINTE SRE David Snow 855-431-4000 www.counterpointeSRE.com FIRST FOUNDATION BANK Michelle Li www.ff-inc.com

415-794-2176

LENDING / FULL SERVICE BANKS

LUTHER BURBANK SAVINGS Gabriel Basso 510-601-2400 www.lutherburbanksavings.com

LENDING / INSTITUTIONS

CHASE APARTMENT LENDING Andre C. Ferrigno 415-644-2171 CHASE COMMERCIAL TERM LENDING Sharon Groenendyk 415-315-8464 www.chase.com/commercialbanking CHASE COMMERCIAL LENDING Ingrid Marlow 650-737-6212

LOCKSMITHS

CROWN LOCK & HARDWARE Joe Schoepp 415-221-9086 WARMAN SECURITY Peter Badertscher www.warmansecurity.com

415-775-8513

INSURANCE COMPANIES

MAINTENANCE REPAIR SERVICE

BARBARY INSURANCE BROKERAGE Gerald Becerra 415-788-4700 www.barbaryinsurance.com

MAVEN MAINTENANCE, INC. Craig Lipton 415-829-2207 www.mavenmaintenance.com

BIDDLE-SHAW INSURANCE SERVICES, INC Greg Holl 415-586-7200 www.biddleshaw.com

ONE STOP MAINTENANCE & PROPERTY SERVICES Lupe Villaloblos 408-829-0727 www.sf1stop.com

COMMERCIAL COVERAGE INSURANCE AGENCY Paul Tradelius 415-436-9800 www.comcov.com

WEST COAST PROPERTY MANAGEMENT Joseph Keng 415-885-6970 ext. 101 www.wcpm.com

ARM MULTI INSURANCE SERVICES Lisa Isom 866-913-6293 www.arm-i.com

GORDON ASSOCIATES INSURANCE SERVICES Dave Gordon, CLU 650-654-5555x6972 David.gordon@gordoninsurance.com

CITY REPAIR SERVICES Fernando Fonesca 415-602-6524 contact@citycarerepair.com

MEDIATION

THE BAR ASSOCIATION OF SAN FRANCISCO CONFLICT INTERVENTION SERVICE Matthew Tom 415-782-8940 mtom@sfbar.org

SF APARTMENT MAGAZINE | AUGUST 2020

53

MORTGAGE BROKER THE RINCON GROUP Casey Wright

415-622-7450

ORGANIC WASTE SOLUTIONS

ECOSAFE ZERO WASTE, INC. Daniel Redick 310-569-0624 ecosafezerowaste.com Daniel@EcoSafeZeroWaste.com

PAINTING CONTRACTORS KRUITPAINTING, INC. Pieter Kruit www.kruitpainting.com

415-254-7818

PAC WEST PAINTING INC. Brian Beaulieu 415-457-0724 www.pacwestpaintinginc.com PETERS PAINTING SERVICES Peter Pantazelos 415-647-4722 www.peterspainting.com TARA PRO PAINTING INC. Brian Layden www.tarapropainting.com

415-334-3277

PAINTING SUPPLIES SHERWIN-WILLIAMS Khuat Hoang Sw7276362@Sherwin.com

415-576-1043

property management The following members are SFAA Property Management Members. They fully support the organization and are dedicated to SFAA’s goals. For more information about the benefits of becoming a Property Management Member, contact Maria Shea at maria@sfaa.org or 415-255-2288 x 10.

PEST CONTROL

ATCO PEST & TERMITE CONTROL & HOME RESTORATION Richard Estrada 415-898-2282 www.atcopestcontrol.com CROWN & SHIELD PEST SOLUTIONS-PREMIER Aurora Vidaca 888-970-1927 aurora@crownandshieldpestsolutions.com

PLUMBING SERVICES

C.R. REICHEL ENGINEERING CO. INC. Tim Lordier 415-431-7100 www.crreichel.com R & L PLUMBING Larry Bustillos 415- 651-4977 larry@rl.plumbing www.rlplumbingsanfrancisco.com URGENT ROOTER AND PLUMBING INC. Albert Lee 415-387-8163 urgentrtr@sbcglobal.net

PROPERTY MANAGEMENT

ADVENT PROPERTIES, INC. Benjamin Scott, CCRM 510-289-1184 www.adventpropertiesinc.com ALEXANDERSON PROPERTIES Eric Alexanderson 415-285-3737 www.alexandersonproperties.com AMORE REAL ESTATE, INC Jerry Hsieh 415-567-4800 www.amoresf.com

ADVENT PROPERTIES, INC. Benjamin Scott, CCRM 510-289-1184 www.adventpropertiesinc.com

PONTAR REAL ESTATE Merri Pontar 415-421-2877 www.pontarrealestate.com

BORN PROPERTY MANAGEMENT Jason Born 650-271-7048 x 111 Jason@bornpm.com

AMERICAN MARKETING SYSTEMS INC. Robb Fleischer 415-447-2020 www.amsires.com

PROGRESSIVE PROPERTY GROUP Dace Dislere & Joe Gillach 415-515-4329

415-608-3050

BERENDT PROPERTIES Craig Berendt 415-608-3050 www.berendtproperties.com CITYWIDE PROPERTY MANAGEMENT Carol Cosgrove 415-552-7300 www.citywidesf.com DEWOLF William Talmage www.dewolfsf.com

415-221-2032

GAETANI REAL ESTATE Paul Gaetani 415-668-1202 www.gaetanirealestate.com GREENTREE PROPERTY MANAGEMENT 415-828-8757 www.greentreepmco.com

PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen 415-661-3860 www.propertymanagementsystems.net REAL MANAGEMENT COMPANY J.J. Panzer 415-821-3167 www.RMCsf.com S&L REALTY Robert Link www.slrealty-sf.com

415-386-3111

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com SUTRO PROPERTY MANAGEMENT, INC. Salman Shariat 415-341-8774 www.sutroproperties.com

J. WAVRO PROPERTY MANAGEMENT James Wavro 415-509-3456

WEST & PRASZKER REALTORS Michael Klestoff 415-661-5300 www.wprealtors.com

LINGSCH REALTY Natalie M. Drees www.lingschrealty.com

WEST COAST PROPERTY MANAGEMENT Eric Andresen 415-885-6970 www.wcpm.com

54

415-648-1516

members AUGUST 2020 | SF APARTMENT MAGAZINE

BERENDT PROPERTIES Craig Berendt craig.berendt@gmail.com

BROOKFIELD PROPERTY GROUPPRESIDIO LANDMARK Jon King 855-327-5376 jon.king@brookfieldproperties.com CHANDLER PROPERTIES Carolyn Chandler 415-921-5733 www.chandlerproperties.com CITYWIDE PROPERTY MANAGEMENT Carol Cosgrove 415-552-7300 www.citywidesf.com DEWOLF REALTY CO. INC. William A. Talmage www.dewolfsf.com

415-221-2032

DJA PROPERTIES Brian James brian@djaproperties.com www.djaproperties.com EBALDC Felicia Scruggs FScruggs@ebaldc.org

510-287-5353

EQUITY ONE Brenda M. Obra www.equity1sf.com

415-441-1200

GAETANI REAL ESTATE Paul Gaetani 415-668-1202 www.gaetanirealestate.com

GEORGE GOODWIN REALTY, INC. Chris Galassi 415-681-1265 www.goodwin-realty.com

REAL MANAGEMENT COMPANY J.J. Panzer 415-821-3167 www.RMCsf.com

GREENTREE PROPERTY MANAGEMENT Mike McCamish 415-828-8757 www.greentreepmco.com

ROCKAWAY RESIDENTIAL MANAGEMENT KristineAbbey 650-290-3084 kristine@rockawayresidential.com

GM GREEN REAL ESTATE INC. George Green (415) 608-6485 ggreen@gmgreen.com www.gmgreen.com

ROCKWELL PROPERTIES Mark Kaplan 415-398-2400 propertymanagement@rockwellproperties.com

HANFORD•FREUND & CO. J. Timothy Falvey www.hanfordfreund.com

415-981-5780

SC PROPERTY MANAGEMENT Robert Guglielmi 650-342-3030 bob.guglielmi@scpropsm.com

HOGAN & VEST INC. Simon Wong simon@wongsf.com

415-237-6240

SHARVEST PROPERTY MANAGEMENT, LLC Timothy D. Gilmartin 650-347-2020 tim@thegilmartins.com

INCOME PROPERTY SPECIALISTS Clayton Llewellyn 408-446-0848 www.ipsmanagement.cc JAMES D. MULLIN REAL ESTATE BROKER James D. Mullin 415-470-0450 jamesdmullinre@gmail.com JD MANAGEMENT GROUP, INC. Jonathan Davis 510-387-7792 jonathan.davis@jdmginc.com LINGSCH REALTY Natalie M. Dress www.lingschrealty.com

415-648-1516

MERIDIAN MANAGEMENT GROUP Randall Chapman 415-434-9700 www.mmgprop.com MW PROPERTY GROUP Marc Wilson 415-640-5807 marc@mwpropertygroupco.com MYND MANAGEMENT, INC. Stacy Winship 510-306-4440 www.mynd.co NEW GENERATION INVESTMENTS Jonathan Ng 415-735-8233 jtng.ngi@gmail.com PACIFIC UNION INTERNATIONAL PROPERTY MANAGEMENT Susan Lucas 415-722-4724 www.pacunionpm.com PILLAR CAPITAL REAL ESTATE Jonathan Ng (415) 885-9584 jonathan@thepillarcapital.com PONTAR REAL ESTATE Merri Pontar 415-421-2877 www.pontarrealestate.com PRIME METROPOLIS PROPERTIES, INC. Tom Chan 415-731-0303 tomchan@pmp1988.com PROGRESSIVE PROPERTY GROUP Dace Dislere 415-794-9727 www.progressivesf.com PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen, Broker, CCRM, MPM®, RMP® 415-661-3860 www.propertymanagementsystems.net RAMSEY PROPERTIES Brian E. Ramsey 415-474-5175 Brian@RamseyPropertiesSF.com

SIERRA PROPERTY PROFESSIONALS Sonali Herrera sierrappinc@gmail.com SKYLINE PMG, INC. Nicholas Bowers 415-968-9903 Nicholas@skylinepmg.com STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com SUTRO PROPERTY MANAGEMENT, INC. Salman Shariat 415-341-8774 salman@sutroproperties.com THRIVE PROPERTY MANAGEMENT, INC. Giovani Franco 650-296-3880 www.thrivecommunities.com/ W. PROPERTY MANAGEMENT Gary Petrison 707-545-6187 gary@wpropertymanagement.com WEST COAST PROPERTY MANAGEMENT Eric Andresen 415-885-6970 www.wcpm.com WEST & PRASZKER REALTORS Michael Klestoff 415-699-3266 www.wprealtors.com WOOD PARTNERS Melissa Rankin 628-251-1101 melissa.rankin@woodpartners.com

PROPERTY MANAGEMENT SOFTWARE HEMLANE, INC. Dana Dunford dana@hemlane.com

385-355-4361

STESSA Victor Perez www.stessa.com

626-524-4931

YARDI Kelly Krier kelly.krier@yardi.com

805-699-2040

YMPG MANAGEMENT Yelena Glezer 415-260-6325 yglezer@ympg-management.com

REAL ESTATE APPRAISALS HARPER & ASSOCIATES Jay Harper JHARPSF@att.net

415-674-9243

MARK WATTS COMMERCIAL APPRAISAL Mark Watts 415-990-0025 www.markwattscommercialappraisal.com

REAL ESTATE BROKERS & AGENTS

ALAIN PINEL INVESTMENT GROUP Mark Bonn 415-614-4354 mbonn@apr.com ALAIN PINEL INVESTMENT GROUP Jay Greenberg 415-593-8615 www.aprinvestmentgroup.com ALAIN PINEL INVESTMENT GROUP Mirella Webb 415-814-6699 mwebb@apr.com BAY AREA PREMIER PROPERTIES Peter Fisler 415-606-6621 www.bayareapremierproperties.com BIG TREE PROPERTIES Evan Matteo 415-305-4931 evan@bigtreeproperties.com COLDWELL BANKER COMMERCIAL NRT Steven Caravelli 415-229-1367 steven.caravelli@cbnorcal.com COLLIERS INTERNATIONAL- JAMES DEVINCENTI James Devincenti 415-288-7848 www.THEDLTEAM.com COLLIERS INTERNATIONAL Brian Leung 415-288-7881 www.brian-leung.com COLLIERS INTERNATIONAL Payam Nejad 415-288-7872 www.colliers.com/payam.nejad COMPASS COMMERCIAL BROKERAGE Adam Filly 415-516-9843 adam@adamfilly.com COMPASS COMMERCIAL BROKERAGE Chris J. Connor chris.oconnor@compass.com CORCORAN COMMERCIAL Jeremy Williams (415) 932-9846 jwilliams@CorcoranGL.com www.sfcommercialreal FERRIGNO REAL ESTATE Chris Ferrigno 415-641-0661 www.ferrignorealestate.com KILBY STENKAMP-VANGUARD PROPERTIES Kilby Stenkamp 415-370-7582 LESLIE BURNLEY Leslie Burnley leslie.j.burnley@gmail.com leslieburnley.com

415-717-8709

MARCUS & MILLICHAP David Nelson 415-312-2245 dnelson@MarcusMillichap.com MARCUS & MILLICHAP Sanford Skeie 415-625-2153 www.marcusmillichap.com NEWMARK KNIGHT FRANK Matthew C. Sheridan 415-273-2179 aptgroupsf.com PACIFIC UNION COMMERCIAL Stephen Pugh spugh@pacunion.com S&L REALTY Robert Link www.slrealty-sf.com

415-386-3111

SF APARTMENT MAGAZINE | AUGUST 2020

55

sfaa sfaa 2020 membership application

Thank you for joining the San Francisco Apartment Association. SFAA is dedicated to educating, advocating for and supporting the Rental Housing Community so that its members operate ethically, fairly and profitably. Please consult a tax preparer in advance to determine deductibility for your tax situation. Membership fees are subject to change.

MEMBERSHIP LEVEL & COST

REGULAR MEMBER DUES Units

Base Fee

Units Fee

1-50

$385 +

$6.45 per unit =

51-250

$475 +

$6.45 per unit =

251-500

$675 +

$6.45 per unit =

501-1,000

$875 +

$6.45 per unit =

1,001

$1,375 +

$6.45 per unit =

TOTAL UNIT AMOUNT:

Unit Fee

1-50

$485 +

$3.95 per unit =

51-250

$575 +

$3.95 per unit =

251-500

$775 +

$3.95 per unit =

501-1,000

$975 +

$3.95 per unit =

1,001

$1,475 +

URBAN GROUP REAL ESTATE Louis Cornejo 415-863-1775 louis@urbangroupsf.com

REFINISHING / RESURFACING SERVICE

MIRACLE METHOD OF SAN FRANCISCO Claire Gray 415-673-4211 www.miraclemethod.com

RENT BOARD PETITIONS

PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen 415-661-3860 www.propertymanagementsystems.net

ASSOCIATE MEMBER DUES: $495 CONTACT INFORMATION

REAL MANAGEMENT COMPANY Melinda Greene 415-230-8895 www.RMCsf.com

Contact Person Company/Title

RENT BOARD PASSTHROUGHS Kim Boyd Bermingham 415-333-8005 www.rentboardpass.com

Address State

Zip

RENTAL LISTING SERVICES

Mobile Phone Email Address

Website PAYMENT METHOD

Check

Amex

MC

Visa

3 Digit Security Code

Card #

Expiration Date

Cardholder Name

Billing Zip Code

Authorized Signature

Date HOW DID YOU HEAR ABOUT US?

Referral From

Postcard/Mailer

Magazine

Website

Rent Board

Other

San Francisco Apartment Association 265 IVY STREET | SAN FRANCISCO, CA | 94102 | PHONE 415-255-2288 | FAX 415-255-1112

56

AUGUST 2020 | SF APARTMENT MAGAZINE

ZEPHYR COMMERCIAL Terrence Jones 415-786-2216 terrence@terrencejonesSF.com www.terrencejones.com

MARCUS MILLICHAP Clinton C. Textor III 415-425-9123 www.marcusmillichap.com

TOTAL AMOUNT:

City

WEST & PRASZKER REALTORS Michael Klestoff 415-312-2245 klestoffmre@aol.com

ALAIN PINEL INVESTMENT GROUP Trigg Splenda 415-593-8616

$3.95 per unit =

TOTAL UNIT AMOUNT:

VANGUARD COMMERCIAL BROKERAGE Allison Chapleau 415-516-0648 www.allisonchapleau.com

REAL ESTATE INVESTMENTS

TOTAL AMOUNT:

Base Fee

STEELE PROPERTIES Ryan Steele 415-881-7762 www.steeleproperties.com

ZEPHYR REAL ESTATE Dawn Cusulos 415-678-8854 dawncusulos@zephyrre.com

MANAGEMENT COMPANY DUES Units

SHAMROCK REAL ESTATE COMPANY Trent Moore 415-359-2400 www.shamrocksf.com

AIRBNB Lorie McBrien lorie.mcbrien@airbnb.com www.airbnb.com

949-422-7166

APARTMENT LIST Alex Mashburn 678-467-0411 amashburn@apartmentlist.com MAZAL55 PROPERTIES Oren S. Bordo orenb55@gmail.com

(415) 279-2791

RESIDENTIAL LEASING

BERENDT PROPERTIES Craig Berendt 415-608-3050 www.berendtproperties.com HAMILTON FAMILY CENTER Mayo Lunt 510-763-8540 x230 www.hamiltonfamiles.org

J. WAVRO ASSOCIATES James Wavro www.jwavro.com

415-509-3456

LINGSCH REALTY Natalie M. Drees www.lingschrealty.com

415-648-1516

RELISTO Eric Baird www.relisto.com

415-236-6116

RENTALS IN S.F. Jackie Tom www.rentalsinsf.com

415-409-3263

RENTINGSF David Chesnosky dcrentsf@gmail.com

415-218-3700

RENTSFNOW Kathy Claussen kclaussen@veritasinv.com

415-762-0213

CONTRACTOR OR VENDOR?

ARCHITECTURE & DESIGN SERVICES

Openscope Studio ATTORNEYS

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com

SECURITY

ADT-MULTI FAMILY Jeanette Mendez jjmendez@adt.com www.adt.com/smart-

ad index NEED A PROFESSIONAL

562-712-7504

Dowling & Marquez Fried & Williams LLP

SEISMIC RETROFIT & STRUCTURAL ENGINEERING BAI CONSTRUCTION Behnam Afshar www.baiconstruction.com

510-595-1994

SGDM, LLC George Mak www.sgdmllc.com

415-462-0619

W. CHARLES PERRY Charles Perry www.wcharlesperry.com

650-638-9546

WEST COAST PREMIER CONSTRUCTION, INC. Homy Sikaroudi, PhD, PE 510-271-0950 www.wcpc-inc.com

58 43

BANKS & LENDING SERVICES CONSTRUCTION & RENOVATION SERVICES

One Stop Maintenance Pribuss Engineering W. Charles Perry West Coast Premier Construction FIRE ESCAPE SERVICE

Great Escape Fire Escape

MARINA SECURITY SERVICES, INC. Sam Tadesse 415-722-1168 stadesse@marinasecurities.com www.marinasecurities.com

45

LOCKSMITHS

Crown Lock & Safe Warman Security PAINTING CONTRACTORS

Pac West Painting Tara Pro Painting

PETITION SERVICES

Rent Board Passthroughs

59 59 62 61

60 47 50 47 50 59

REAL ESTATE BROKERS

Amore Real Estate 58 Coldwell Banker / Caravelli 29 Colliers / DeVincenti 2 Compass / Antonini 13 Compass / Bonn & Webb 35 Compass / Filly 11 Compass / Greenberg & Splenda 3 Compass / Pugh 25 Corcoran / Williams 21 Kay Properties & Investments, LLC 17 Marcus & Millichap 30-31 Newmark Knight Frank / Sheridan & Boersma 63 Vanguard Commercial / Chapleau 9 Vanguard Properties / Stack 24 Vanguard Properties / Kilby Stenkamp 60 Zephyr / Terrence Jones 15 UTILITIES BILLING SERVICES

Livable 41 Acceptance of an advertisement by this magazine does not necessarily constitute any endorsement or recommendation by SFAA, express or implied, of the advertiser or any goods or services offered. Advertisers in red are Associate Members of SFAA.

PROPERTY MANAGEMENT & MAINTENANCE & RESIDENTIAL LEASING

Berendt Properties 6 Gaetani Real Estate, Inc. 64 Maven Maintenance 41 Real Management Company 62 Rentals in SF 43 S&L Property Management 39 West Coast Property Management 45 Yardi 18-19

SUBMETERS

LIVABLE Daniel Sharabi www.livable.com

415-937-7283

TENANT PLACEMENT & LISTING REALPAGE Stacy Blackwell www.realpage.com

972-820-3015

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com ZUMPER INC. Diana James diana@zumper.com

949-702-1508

SF APARTMENT MAGAZINE | AUGUST 2020

57

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SF PUBLIC UTILITIES COMMISSION Chandra Johnson 415-554-0704 www.conserve.sfwater.org

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FIRE AND WATER DAMAGE RECOVERY Maria Neumann 800-886-1801 www.waterdamagerecovery.net

WATERPROOFING

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AUGUST 2020 | SF APARTMENT MAGAZINE

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59

Consider COPA… continued from page 34

TALENT. COLLABORATION. SUCCESS.

Downtown Neighborhoods Preservation Fund is another funding source, but those funds are currently on hold. They are dependent on the Oceanwide Center at 50 1st Street, but that project is uncertain at this time, so this source is not presently available.

What does this uncertain funding situation mean for now?

We spoke with Jeremy Williams, a broker at Corcoran GL Commercial who has successfully completed two sales with MEDA pre-COPA. He has heard there is no money for deals at this time for any QNP acquisitions.

KILBY STENKAMP

When we discussed the program with

kilby@vanguardsf.com

went into contract with a QNP before the

another broker who has a building that

415.370.7582

shelter-in-place order, he told us his seller

DRE# 01208585

decided to stick with extending the sale due to COVID-19, accept the uncertainty

sf.0319.great.escape.pdf

1

3/3/19

6:34 PM

vanguardproperties.com

of funding, and hope for the best. One of the first rules of being a broker is to make sure the buyer has proof of funds. With the COPA law and current COVID-19 environment, making sure the buyer has the money has become very difficult.

Keeping The San Francisco Bay Area Safe Since 1988

C

M

FIRE ESCAPE SERVICE & MAINTENANCE

Y

CM

MY

CY

We had a 39-unit SRO at 1515 California, a QNP expressed interest in May, and they wrote an offer 20% below the $10.6 million list price with a six-month close of escrow. The seller elected to pass and take the building to the open market. The QNP now has the right to match the best offer we generate in the market, but the QNP may or may not be able to show they can fund a deal of this size when we get to that stage of the sale.

Richard Hurlburt is a broker at IMPACT,

CMY

Safety is our Top Priority

K

which has closed 40 acquisitions under the Small Sites Program. Hurlburt represents tenant buyers and multiple COPA

FREE ESTIMATES

(415) 566-1479

QNPs. He told us, “So far, no QNP has invoked the right of first refusal under COPA, but we’ve gotten into contract on seven properties at the ‘first offer’ stage.

Four of those have closed and three are still in progress.”

www.greatescapeinc.com

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AUGUST 2020 | SF APARTMENT MAGAZINE

What do other brokers think about COPA? When the program started, the brokerage community was a bit irritated about the government intervention in the sales process. One of my respected broker colleagues, Clinton Textor, feels the process is not fair to sellers. He said, “Our job as a listing agent is to create a large market for our clients in order to generate the highest price. COPA requirements can harm sellers if they don’t endeavor to ensure a competitive sales process. We don’t offer a buy-side commission to agents representing a QNP in most cases. Instead, we offer that fee to any agent who has an accepted offer that is subsequently taken through a right of first refusal by a QNP. A seller should not pay a buy-side broker’s fee in a right of first offer scenario either, since a seller has no choice but to take the property to the QNPs before they can take it to anyone else. COPA can create an anti-competitive marketplace for a property if the agent isn’t mindful about protecting their client’s interests.”

What will the future hold for Small Site acquisitions?

That is the $150 million dollar question. We expect to see the bond that was passed eventually get funded with $30

License No. 797467

million for the Small Sites program. Those funds should be able to be leveraged with financing to about $150 million. Once the funds become available, the QNPs will be able to show legitimate proof of funds and make more deals. In the meantime, they will continue to look at all the offerings through COPA and do their best to preserve low-income housing and prevent displacement. In looking at this with our new knowledge and the post COVID-19 armchair quarterbacking, we see the importance of enacting laws that are actually executable. It seems that too often the legislators in San Francisco make a big splash in the news to get reelection votes, but make laws that do not stand alone as functional. COPA is a typical

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9/18/13 2020 12:32 61 PM SF APARTMENT MAGAZINE | AUGUST

VALUE-ADDED DEVELOPMENT

Contact : charles@wcharlesperry.com 415.509.2956

W. CHARLES PERRY & ASSOCIATES I N V E S T M E N T, D E S I G N A N D C O N S T R U C T I O N

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AUGUST 2020 | SF APARTMENT MAGAZINE

1876 GREEN ST - 4 UNITS - $2,950,000

Another Good One — Just Listed!

Classic Cow Hollow Victorian apartment house with

• 4 Units | 3 Vacant

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• Premier Cow Hollow Location

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the top floor and a large walkout basement that consists

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• Classic Victorian Apartment House

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• One Block from Union Street

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• ADU Potential

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MATTHEW C. SHERIDAN

415.273.2179 License 01390209 matthew.sheridan@ngkf.com

aptGroup

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