How Private Equity in the Rental Market Makes Housing Unaffordable, Unstable, and Unhealthy

By Alexander Ferrer, Research and Policy Analyst  : saje – excerpt (download pdf)

Beyond Wall Street Landlords

EXECUTIVE SUMMARY: Housing in the US has Experienced a Dramatic Corporate TakeoverSince 2000, the proportion of housing in corporate hands has increased dramatically. This trend started in the 1990s with the birth of the Real Estate Investment Trust (REIT) and the Limited Liability Company (LLC) and accelerated dramatically because of the 2008 foreclosure crisis. According to the U.S. Census Bureau, in 2000 individuals owned about 55% of the country’s rental stock, but by 2018 the share had fallen to just over 40%, and a plurality was owned by corporate vehicles for the first time in history. This consolidation of the rental housing stock into corporate hands affected all property types and threatens the stability of housing because integration into global financial circuits and the application of corporate management strategies and profit-making imperatives transform housing from home to investment. As this report demonstrates, this transformation is even more apparent in Los Angeles, where investment vehicles own 67% of rental housing…(more)

 

Will SF Spend New Federal Homeless Dollars on Tents, Shelters or Homes?

By Randy Shaw : beyondchron – excerpt

City Faces Moment of Truth in Combating Homelessness

The Democrats’ American Rescue Plan provides $32 billion for addressing homelessness and low-income rental assistance. The National Low Income Housing Coalition website—which offers a great city and state breakdowns— has San Francisco slated to get nearly $19 million in new homeless action grant funds (the Plan also erased the city’s $650 million budget deficit).

The question then emerges: will San Francisco use these new funds to house the unhoused or only seek band aid solutions?…(more)

Just Up-zoning the Suburbs Won’t Solve our Housing Problems

By Casey Maddren : citywatchla – excerpt

NEED MORE THAN SUBURBS–Anybody who pays attention to the news knows that there’s a heated, ongoing debate in LA, and across California, about how to solve our housing problems.

There are lots of different proposals floating around, but the message we hear most often from elected officials and the development community is that we have to up-zone to allow a whole lot more density. The argument goes that it’s just a matter of supply and demand. If we up-zone our cities and up-zone our suburbs, that will unleash the power of the free market and we’ll have plenty of cheap housing for everybody.

One idea that’s especially hot right now is the proposal to up-zone areas dominated by single-family homes (SFH). Some State legislators have embraced this approach, resulting in bills like SB 1120.

The City of LA hasn’t yet made a move to up-zone SFH areas, but the concept is popular among local progressives who believe we just need to build more housing. Heated debates have erupted over the topic on social media. At a recent hearing on the Hollywood Community Plan Update (HCPU) some members of the public expressed enthusiastic support for ending SFH zoning…

If the key issue is the lack of affordable housing, up-zoning by itself does nothing to solve the problem. As Patrick Condon points out in his book Sick City, when a city just increases allowable density, it’s really increasing the cost of the land, and that additional cost is ultimately paid by the household that’s renting or buying. The benefit goes to the landowner, not the renter or buyer. For a solution, Condon holds up Cambridge, Massachusetts, where city officials adopted an ordinance that allows increased density but only for the construction of permanently affordable units…

Casey Maddren is President of United Neighborhoods for Los Angeles (UN4LA [www.un4la.com]), a community group focused on better planning and better governance, and a CityWatch contributor.) Image: Curbed. Prepped for CityWatch by Linda Abram(more)

Cities Are Sinking Under the Weight of Urban Development

By Linda Poon : bloomberg – excerpt

A new study quantifies what big buildings are doing to the ground beneath San Francisco and other cities, as sea levels rise.

In late 2020, engineers began working on a $100 million project to stop San Francisco’s Millennium Tower from tilting and sinking further into the ground. Tenants of the beleaguered luxury condo had learned four years earlier that the 58-story high-rise had sunk some 16 inches in over a decade. But the tower’s predicament is only part of a larger problem, and not just for the Bay Area: Cities around the world are sinking under the weight of their own urban development — at the same time that sea levels are rising.

A new study seeks to quantify how much the sheer weight of the built environment contributes to the sinking of cities, a geological phenomenon known as land subsidence. While urbanization is just one small cause of this phenomenon among several, the paper in the journal AGU Advances estimates that its impact is only likely to grow as people move to cities in greater numbers. As a result, densely packed cities are likely to sink faster than less developed areas.

Study author Tom Parsons, an earthquake seismologist at the U.S. Geological Survey, looked at the San Francisco Bay Area as a case study of this impact. He estimates that the collective weight of all of the San Francisco region’s buildings is roughly 1.6 trillion kilograms, or 3.5 trillion pounds. That alone may have caused the land to sink by as much as 80 millimeters, or more than three inches, over time as the city grew. …(more)

 

UCSF’s Neighbors File CEQA Lawsuit

by Doug Comstock : westsideobserver – excerpt

Local residents oppose UCSF Parnassus expansion that would tower over the neighborhood and Golden Gate Park 

Neighborhood groups filed a Petition February 19th in Alameda County Superior Court challenging UC’s Environmental Impact Report for the massive UCSF Parnassus expansion proposal.

UC proposes a project that would add over 2 million square feet to the currently over-built campus — the equivalent of a Sales Force Tower and the TransAmerica Pyramid combined. The oversized project would be thrust between two mature neighborhoods – contrary to a 40-year commitment by the university to strictly adhere to the current envelope of the Parnassus complex. Neighborhood organizations and the San Francisco Bay Chapter of the Sierra Club as well as the Affordable Housing Alliance have concerns about the project’s effects on housing, transit, Golden Gate Park, and wildlife, as well as the failure to keep promises to the community it “serves.”…(more)

Building Department director tasked with reforming antiquated permitting process quits abruptly

By Joe Eskenazi : 48hills – excerpt

In a blow for those hoping to streamline, modernize and cleanse the Department of Building Inspection’s byzantine and hidebound permitting process, the director hired to oversee this move has abruptly resigned after just 2.5 months on the job.

Issam Shahrouri was hired in late 2020 from Oakland, where he was deputy director of its building department. His status as an outsider in a department renowned for its insularity was a source of pride and hope for reformers, who looked to move the Department of Building Inspection past its reputation for scleroticism and corruption. Shahrouri also came to San Francisco in good estimation, and was accredited as a “Certified Building Official” — purportedly making him the only “CBO” in the department after the hasty March 2020 departure of former director Tom Hui in the wake of a corruption investigation.

But department employees were on Tuesday stunned to receive a brief email from interim director Patrick O’Riordan announcing Shahrouri’s sudden departure…(more)

Supes call for investigation of Ferris Wheel money

By Tim Redmond : 48hills – excerpt

Revenue goes not to the city, but to a private entity that’s part of an FBI corruption probe…

The reason the Recreation and Parks Department wants to extend the run of the Ferris Wheel – according to Rec-Park documents – is that the St. Louis-based vendor that built it, SkyStar Partners, needs about 500,000 rides to make the roughly $9 million it was counting on.

And the private San Francisco Parks Alliance, which is a part of the FBI corruption investigation in SF, was counting on taking its share of about $500,000.

You can read the contract here. Not a penny of the revenue from this carnival ride will go to the city. It’s split between SkyStar and the Parks Alliance, which is supposed to use it to finance celebrations of the 150th anniversary of Golden Gate Park…(more)

Nobody likes to pay for parties more than Rec and Park and the Parks Alliance according to FBI investigations, and the City Attorney.

We were objecting to the fumes and noise from the generator that does not follow the logic for a city that is making ordinary citizens give up their gas generated heating systems and cooks give up their gas stoves. But, if there is also a question of funds and who gets them, it should be up to the Board of Supervisors to determine whether or not to sign the contract. That is, unless the Rec and Park Department have full authority to override City Hall on the matter.

California Cities Rethink the Single-Family Neighborhood

Now it’s one of a handful of cities in the country, and the latest in California, to challenge those rules as it seeks to tackle its housing affordability crisis and address decades of racial segregation in housing.

But housing researchers and advocates for low-income residents warn that just allowing more housing in single-family neighborhoods is no panacea. To achieve truly inclusive communities, they say zoning changes have to be coupled with strong renter protections and increased funding for affordable housing.

Berkeley Vice Mayor Lori Droste introduced the legislation earlier this month to change the city’s zoning rules, and make it easier to build fourplexes throughout the city.

The Sacramento City Council last month unanimously approved a draft plan to allow fourplexes throughout the city, becoming the first city in the state to begin the process of removing barriers to small, multifamily housing in all of its residential neighborhoods. Officials in San Francisco and San Jose are considering their own proposals…

But it could soon be a policy that touches the entire state. Senate Pro Tem Toni Atkins, D-San Diego, introduced a bill last year to allow up to two duplexes in most single-family neighborhoods. It passed both houses of the Legislature, but literally ran out of time before getting the final vote it needed to head to the governor’s desk. It’s back this year as Senate Bill 9(more)

Rumor has it that the State Senate, lead by Atkins and Wiener, have suspended the constitution to get their draconian housing bills passed after failing last year. They cut the time the public has to respond to the bills, not that they listen the pubic anyway.

Taking advantage of the pandemic to declare an emergency and suspend the constitutional rights of citizens to weigh in on the future of housing in the state may not sit well with citizens live in single family homes. This action will almost certainly be challenged in the courts.

The racial argument will fall on deaf ears for the many people of color who have built equity in their homes for generations.  They ability to pass their home on to their children was cut, and now the Democratic state legislature threatens to take their path of building security by building equity away from them.

70 Hotels Could House the Homeless, if San Francisco Buys

by : sfpublicpress – excerpt

Dozens of hotels could be sold to the city to house the homeless, advocates say. The recently renovated Minna Hotel in SoMa, with 72 rooms, is one of them.

More than 70 hotel owners have indicated they are willing to sell their properties to San Francisco, and now is the perfect time to buy some of them, homelessness activists said Wednesday.

News broke this month that San Francisco would receive a full reimbursement for its shelter-in-place hotels from the Federal Emergency Management Agency, dating back to January 2020. Previously, FEMA funded 75% of the costs. The city has requested $84.4 million in reimbursements from FEMA for 2020, the controller’s office said in an email.

Applying FEMA reimbursements toward hotel purchases offers a relatively quick and simple way to expand San Francisco’s stock of permanent supportive housing, advocates say… (more)

 

SPUR, Yimbys say stealth state laws can force more housing

By Zelda Bronstein : 48hills – excerpt

But what happens if developers don’t want to build anything but luxury condos — and maybe not even those?

On Friday, February 12, SPUR hosted a webinar entitled “Can Cities Use State Law to Overcome Housing Resistance?” The four panelists, all of the Yimby/Wiener persuasion, answered that question with a resounding Yes.

To anyone who’s depended on the mainstream media for an understanding of the current battle over California housing policy, that response must to be mind-boggling. The establishment press has claimed ad nauseam that the state has done little if anything to address California’s housing crisis.

Reporters have repeatedly memorialized the defeats of state Sen. Scott Wiener’s SB 827 (d. 2018) and SB 50 (d. 2019 and again in 2020) and the midnight-hour death of Assemblymember Toni Atkins’ SB 1120 in 2020, leaving the impression that these were the only housing bills or at least the only ones that mattered.

At Friday’s forum, the panelists told a different story. Since 2017, the state Legislature has enacted a slew of housing laws that, as former director of the Department of Housing and Community Development Ben Metcalf put it, “buil[t] out the power of the state” to overrule local land-use authority…(more)

The developer bills that force density on single family homes may be the governor’s downfall, as more people learn about his efforts to overthrow local jurisdiction and remove single family zoning all over he state. All it will take is a candidate who listens to what the voters want and, hopefully knows how to make it happen. Governor Newsom is really pushing his luck. He intends to included a new Housing Accountability Unit (HAU) in his proposed budget, to fund enforcement of the forced density bills.
See details on the bill and actions you may take to fight back. https://www.livablecalifornia.org/governor-newsoms-latest-executive-overreach-a-housing-accountability-unit-in-hcd/