October 2005

Means Testing Will Have to Wait
San Francisco is considering a Rent Ordinance add-on known as means testing, which exempts the rich from enjoying rent control. Gaining popularity nationwide, the legislation already exists in New York City and Boston, two cities proposed as study subjects in a Legislative Analyst's Report requested by Supervisor Sean Elsbernd in cooperation with the San Francisco Apartment Association. At a recent meeting, the Board of Supervisors delayed a scheduled vote on the request until early next year. Incorporated into rent ordinances, means testing provides for higher-earning tenants essentially to be barred from rent-control protections. Locally, if such an ordinance were to take hold, the line would be drawn at $250,000; in other words, those earning a quarter-million dollars or more per year would be exempted. Proponents of means testing claim that rent control in its current form does not serve its designated purpose—to keep the rental stock affordable and accessible to middle- and lower-income earners—because it assures cheaper shelter for even those who could afford market rates. A motion by Supervisor Chris Daly postponed voting on the proposal until next February.

SFAA Opposing Bond Measures
SFAA is poised to campaign against two bond measures slated for the November 8, 2005, ballot because they do not contain passthrough allowances. Proposition A would bring in $246 million for the Community College District; Proposition B is a street-repair bond for $208 million. SFAA had been assured that should the bonds make the ballot, both would include language specifying a 50-50 split of the resulting costs between property owners and tenants. Each bond is indeed on the ballot, but neither includes such passthrough provisions. “We told City Hall that if the language isn't in there, we will oppose all bonds and launch a campaign against them with other like-minded groups,” said SFAA Executive Director Janan New.

2005 Rental-Unit Fee
The amount of the rental fee for this year is $20, down from $22 last year. The fee for residential hotel rooms is $10. Landlords can collect 50% of the fee from tenants in residence on November 1, 2005. The new fee will appear on November's property-tax bill.

The annual rental-unit fee helps support the cost of operating the Rent Board and allows for the free filing of Rent Board petitions. Owner-occupied units are exempt from the fee unless there are also tenants residing in the owner's unit. Units where the rent is controlled or regulated by a governmental unit, agency or authority, are also exempt from payment of the fee. To avoid being erroneously billed, homeowners must file their exemptions with the Assessor's Office, 415-554-5515.

What's In a Name?
San Francisco Apartment Magazine is planning a feature story that will highlight local apartment buildings which have interesting names and, more important, the local lore behind those names. Was your property simply named after the corner on which it sits, or did some history, mystery or scandal spawn its moniker?

If your building's name has a great backstory—or you know of one that does—we want to hear from you. For consideration, submit the property's location, name and a brief summary of what you know or have heard about that name's origin to Editor Matthew Sheridan at matthew@blackpointpress.com.

Symposium Offers Insight on Triple-Net Investments
On Tuesday, October 18, Marcus & Millichap Real Estate Investment Brokerage Company will host a symposium on single-tenant, triple-net investment opportunities. The morning meeting will inform attendees of the benefits and risks of such an investment and offer examples of deals now for sale, ranging in cost from $400,000 to $20,000,000.
Combining such net-leased properties with a 1031 exchange is a portfolio-diversification strategy that has become “a very popular investment vehicle for owners tired of management and expenses, yet not willing to pay capital gains taxes on a sale,” said Jeff Mishkin, regional manager for Marcus & Millichap.

When: Tuesday, October 18, 9:30 a.m. – 11 a.m.
Where: Westin St. Francis, Georgian Room, Union Square, San Francisco

For more information or to register, contact Darlene Chavez at 415-391-9220 x 202 or dchavez@marcusmillichap.com.

Cal's Real Estate & Economics Conference
The Fisher Center for Real Estate and Urban Economics—part of UC Berkeley—has announced its 28th Annual Real Estate & Economics Symposium, to be held in San Francisco on November 16. The day-long program will examine current trends and critical issues in the real-estate market, particularly in California. This year's featured speaker will be Kenneth T. Rosen, the Fisher Center's chairman, who will share his current outlook on the economy and the U.S. real-estate markets. A complete roster of presenters and their specific topics will be announced soon, including national and local industry leaders who will present their ideas and respond to questions from the audience.

The seminar will also provide an opportunity to network with colleagues and presenters including real-estate entrepreneurs, brokers, financiers, investors, attorneys, accountants, developers and press.

The Fisher Center is sponsoring the conference in cooperation with Cal's Haas School of Business and the Berkeley Real Estate Associates. A leader in real-estate and financial research since its establishment at the university in 1950, the Fisher Center provides a forum for business leaders, government officials and academics. All proceeds from the symposium are used to support the center's education, fellowship and research functions.

When: Wednesday, November 16, 8 a.m. - 5 p.m.
Where: Westin St. Francis, Union Square, San Francisco

For more information or to register, visit www.haas.berkeley.edu/realestate or call 510-643-6109.