Board passes ordinance banning certain landlord pass‑throughs of debt service and acquisition‑related property taxes

The San Francisco Board of Supervisors unanimously passed an ordinance May 22 amending the administrative code to bar landlords from seeking rent increases on existing tenants that are based solely on increases in debt service or property taxes that result from a change in ownership.

Sponsor Supervisor Carmen Chu Feuer (transcript spelling: "Feuer") framed the ordinance as closing a loophole that allowed speculators to pass acquisition financing and property tax increases onto tenants; she said other cities such as Oakland and San Jose have adopted similar rules. Feuer clarified the measure does not eliminate operating and maintenance pass‑throughs (for water, garbage, janitorial services) and noted an exception allowing landlords who purchased property on or before April 3, 2018 — and who relied on the pass‑through at the time of purchase — to seek relief from the rent board.

Supervisor Sheehy and others described tenant impacts from cost pass‑throughs, including alleged rent‑collection practices and construction practices that led to tenant displacement, and urged the ordinance’s passage as a first step to counteract building speculation. Other supervisors thanked Feuer and cosponsors and urged support.

The item was moved under “same house, same call” and passed unanimously. Supervisors described the measure as intended to protect rent‑controlled tenants from being charged for the cost of building acquisitions and related tax increases.

Ending: The ordinance passed on first reading with unanimous support; sponsors emphasized next steps would include implementation guidance and potential additional protections.