Rent Increase Set at 2.2%
As subject to the San Francisco Rent Ordinance, many residential properties may only increase the rents in accordance with the San Francisco Allowable Rent Increase. Effective March 1, 2009, to February 28, 2010, you will be able to increase your rent by 2.2%. You may also bank this amount. This new percentage represents a small increase from the 2% currently allowed.
At press time, SFAA had not been given the interest on security deposit percentage. Tune into this column to find out what the new percentage is when it is announced.
Eastern Neighborhoods Plan Finally Approved
After a decade of waiting and wrangling, the Eastern Neighborhoods plan was approved by the San Francisco Board of Supervisors. The plan allows for up to 10,000 new homes on San Francisco’s east side while preserving industrial land and affordable housing.
The rezoning scheme covers roughly one-quarter of the city and includes four neighborhoods: the Mission District, Potrero Hill, east SoMa and the central waterfront. More than 50 projects in the area have been on hold for the past two years, waiting for the city to complete the planning process. Developers will have an opportunity to build with great density in this area, but that opportunity will come with certain restrictions. Some projects will need to have a higher percentage of below-market rates than in other areas of the city, an estimated 31%. Also, developers will be forced to pay $8 per square foot for residential development and $6 per square foot for nonresidential construction for community improvements such as transportation, lights and parks.
Plus, some areas will still be off limits to housing and commercial development and kept as light industrial zoning. In what is considered an innovative move, the city has modified the definition of “light industry,” allowing industries that involve light-industrial work but also utilize office space, such as digital media companies. Traditional industries, such as auto repair, storage and shipping, will still be allowed.
Even with the protections, the neighborhoods are expected to lose about half of their industrial land. In its place, 7,500 to 10,000 new housing units and commercial space could be added over the next two decades.
In other redevelopment news, the San Francisco Redevelopment Agency and the Board of Supervisors recently approved the Lennar Corp. draft proposal for a massive redevelopment of Bayview/Hunters Point. The plan includes a new football stadium for the 49ers, up to 10,000 homes and 300 acres of parks and open space. Lennar would contribute $600 million to the $2 billion plan, including $100 million to the 49ers to help finance the cost of building a new stadium. The company says construction could be completed as early as 2013.
Turn It Down!
The Board of Supervisors recently passed a measure that will make it easier for the city to crack down on excessive noise.
The noise control ordinance will let city inspectors gauge the base level of ambient noise and establish restrictions on excessive sounds from commercial and residential sources. Noise violations would become infractions instead of misdemeanor offenses, which officials believe will make enforcement easier. The board heard testimony that San Francisco’s increased noise levels—from a growing density of people and cars—are not healthy.
SFAA worked with board members on this measure to make sure that property owners’ voices were heard.
Welcome Lisa Fricke
SFAA is happy to announce that Lisa Fricke is the organization’s new government affairs and community relations manager, replacing Sean Pritchard, who left last year. Some of you may have met Fricke last fall, as she has already begun tracking legislation, advocating on behalf of members and running the Community Education and Outreach Program. She comes to the Bay Area from Southern California, where she was also involved in the local apartment association.
Sign Up Now for CCRM
Are you ready to take the next step in your property management career? Then sign up for the California Certified Residential Manager series of courses. The series provides overall training in management, particularly in regard to the laws and regulations in California. Classes include “Preparing the Property for Market,” “Resident Issues and Ending the Tenancy” and “Ethics and Property Management.” For members, each class is $80 or $690 for the entire series, which begins January 29 and ends with a final exam on April 2. When you complete the series and pass the exam, you will have CCRM designation, which will help you stand apart as a knowledgeable asset to owners, management companies, residents and the community.
For more information on CCRM, contact Education and Events Director Vanessa Khaleel at 415-255-2288 or vanessa@sfaa.org. You can also find the CCRM registration form here.
Christmas Tree Pickup
The holidays are over, which means it’s time for you and your residents to get rid of your Christmas trees. Sunset Scavenger will pick up trees left on the sidewalk between January 5 and 9 on your regular collection day. Remove the base and all decorations. Trees with fake snow (“flocking”) will not be taken.
The recycled trees are sent through a wood chipper and used for mulch, placed under park benches and used to control weeds by the freeway.
New York Commissioner Chosen for HUD Post
President Barack Obama has chosen Shaun Donovan, a New York City housing commissioner, to be the secretary of housing in his cabinet and head the Department of Housing and Urban Development. Donovan worked for the agency as deputy assistant secretary for multifamily housing during the Clinton administration.
In New York, he promoted inclusionary zoning and helped create a $200 million fund to help nonprofits and small developers compete for private land sales. He also encouraged HUD to help nonprofit groups or tenants take over HUD-assisted buildings in foreclosure, rather than putting the properties up for auction.