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Board advances ordinance to close corporate short‑term housing loophole; first reading passed
Summary
An ordinance to extend the apartment conversion ordinancerestrictions to business‑sponsored short‑term occupancies and to strengthen enforcement advanced on first reading; the measure aims to prevent corporate entities from leasing residential units for short‑term hotel‑style use and to create an administrative review process for complaints.
The board passed on first reading an ordinance amending the apartment conversion ordinance to extend restrictions to business‑sponsored short‑term occupancies, allow certain nonprofit entities to bring civil actions and revise enforcement procedures.
President Carmen Chu explained the 1981 apartment conversion ordinance made it illegal for residential properties with four or more units to be occupied for less than 30 days. The proposed amendment targets a practice in which corporate entities sign long‑term leases with property owners to place non‑San Francisco employees in units for planned stays under 30 days, which supervisors and tenant advocates say has created hotel‑like turnover in residential buildings and reduced housing availability for city residents.
The ordinance would clarify that corporate entities cannot use long‑term leases as a means to operate short‑term corporate housing, create an administrative hearing process at the Department of Building Inspection for complaints and allow residents to seek enforcement assistance through qualified nonprofit organizations. Chu said the measure is distinct from the separate issue of peer‑to‑peer short‑term rentals ("Airbnb" and similar services), which she said requires different policy work.
The board passed the ordinance on first reading by unanimous voice vote (same house, same call) and sent it forward in the legislative process.
