Board amends relocation payments, hardship rules for Ellis Act evictions; ordinance passes first reading

The San Francisco Board of Supervisors on April 8 passed on first reading an ordinance that raises relocation assistance for tenants displaced when buildings are withdrawn from the rental market under the Ellis Act and adds procedures to consider landlord hardship in relocation calculations.

The ordinance drew more than an hour of debate and several competing amendments before the board approved a version that excludes certain asset categories from landlord hardship calculations while otherwise preserving the expanded tenant relocation payments. Supervisor David Campos, the ordinance author, said the measure “gives San Franciscans a fighting chance to stay in the city.”

Why it matters: The ordinance responds to rising Ellis Act evictions and a broader affordability crisis in San Francisco by increasing mandatory relocation fees for displaced tenants and setting a formal hardship review so landlords can request lower payments in limited circumstances. Supporters said the changes will help seniors and long-term residents stay in the city; opponents warned of unintended loopholes that could be exploited by speculators.

What the board debated: Several competing amendments were offered and voted on. An amendment offered by Supervisor Bridal failed (4 ayes, 7 noes). Supervisor Wiener offered substitute language narrowing the categories of assets considered in landlord hardship reviews; that version passed by a 6–5 vote. Wiener then offered a further modification that removed a subsection addressing real property; that second modification also passed 6–5. After the amendments were adopted, the full ordinance as amended passed on a roll-call vote, 9 ayes to 2 noes.

Landlord hardship and assets: Debate centered on which assets may be considered when a landlord seeks a hardship exemption. Wiener’s amendments were framed to align landlord hardship review more closely with how tenant hardship is evaluated by the Rent Board: exclude retirement accounts and other nonliquid personal property from automatic inclusion in hardship determinations and limit consideration of real property in narrowly defined owner-occupied, small-building situations. Supervisor John Avalos and Supervisor Campos argued some language risked creating incentives for speculators; Wiener and supporters said the changes protect small, owner-occupied landlords from having to liquidate retirement savings.

Rent Board testimony and practice: Dean Wolff, executive director of the Rent Board, told the board the Rent Board already examines a landlord’s whole financial picture in hardship cases and that, historically, repayment schedules or other arrangements have been used to balance tenant restitution and landlord solvency. He said landlord hardship applications are rarer than tenant hardship claims but that administrative judges have addressed such claims case-by-case.

Votes and next steps: The board recorded the final roll call at the end of the debate; the ordinance passed on first reading as amended (9–2). The ordinance will return for further readings as required under the city process before becoming final.

Context and reaction: Supporters framed the ordinance as one of several tools needed to address displacement; Supervisor Yee and others pressed for follow-up work clarifying retirement-account limits and potential loopholes. Opponents warned the changes could be gamed to lower tenant payments or encourage preemptive evictions. The Rent Board and city departments will continue work on implementing the new hardship criteria and related forms and guidance.

The measure’s passage on first reading follows extensive public and board-level debate about eviction, relocation assistance, and how to balance tenant protections with legitimate landlord hardship claims.