Mayor Lee urges state changes to the Ellis Act, lists housing trust fund projects under way

Mayor Edwin Lee used the board’s monthly question time on Tuesday to press for changes to the state Ellis Act, which he said is being exploited by speculators, and to describe a set of affordable housing projects either under construction or budgeted to receive funds from the city's new housing trust fund.

"The Ellis Act is being abused by real estate speculators," Mayor Lee said, asking for the board’s support in urging Sacramento to change state law. He told supervisors his experience as an affordable‑housing advocate shaped his view that local action alone cannot stop Ellis Act evictions and that state action is required.

Why it matters: The Ellis Act is a California state law that allows landlords to exit the rental business and evict tenants in the process; supervisors and the mayor framed the issue as central to San Francisco’s affordability crisis, with particular concern for seniors and disabled tenants in the Richmond and other districts.

Housing trust fund projects and figures: Lee told the board the city’s 30‑year housing trust fund will provide $1.3 billion for affordable housing over the fund’s life and that this year’s appropriations will be combined with other financing to leverage additional funds — the mayor said nonprofit developers typically leverage about $4 from other sources for every city dollar. He listed several projects under construction or budgeted to receive trust fund allocations this fiscal year:

- A development near the Bridal site with 75 permanently affordable homes (concrete podium already up). - A project on Ocean Street delivering 71 homes for low‑income families and transitional‑age youth. - St. Anthony’s project in Mid‑Market building 90 homes for low‑income seniors. - Casa Navas in South Market: 120 units of supportive housing opening in December for formerly homeless adults (not funded by the trust fund). - Projects budgeted for Housing Trust Fund dollars this fiscal year: 55 Laguna Open House Senior (about 70 units for very low‑income seniors); Hugo Hotel at 200 Sixth Street (about 67 units for very low‑income families and developmentally disabled adults); Booker T. Washington (48 units for homeless transitional‑age youth and very low‑income families at 800 Presidio Avenue); and 1036 Mission (about 80 units for formerly homeless and very low‑income families, awaiting state funding awards).

Board follow‑up and questions: Supervisors asked how quickly trust fund‑supported projects will be built and what incentives will encourage market developers to build on‑site affordable units. Lee said construction had started or will start next year on several sites, and he pledged to work with supervisors on both building more housing and on state‑level changes to the Ellis Act.

Ending note: Lee framed the two tracks — pressing the state for reforms and using local funding to accelerate affordable housing production — as complementary parts of the city’s response to displacement and evictions.