Commission presses DBI for valuation and jurisdiction review after push to convert SROs
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Summary
After public testimony from tenants and advocates, the Building Inspection Commission ordered DBI staff to request a Department of Real Estate valuation and clarify director authority before conditional‑use hearings proceed on six SRO conversion applications affecting about 238 rooms.
The San Francisco Building Inspection Commission on Feb. 7 urged Department of Building Inspection staff to gather a valuation and legal analysis before planning moves ahead on permit applications to convert several single‑room occupancy hotels to tourist use.
The hearing produced lengthy public comment from tenants and advocacy groups, and a direct legal clarification from the City Attorney’s office about who decides conversions under the Administrative Code. Randy Shaw, a long‑time housing advocate, told the commission that the in‑lieu payments historically used for conversions were "200,000 a unit, not 20,000," and said applications before the commission appeared to offer far lower replacement values.
City Attorney staff said the ordinance delegates the initial decision to the DBI Director. "The determination or the decision to allow or deny a conversion is something that's done by the Director," John Malamud said, explaining that the director’s determination is appealable to the Board of Appeals.
DBI staff and commissioners discussed how the ordinance calculates replacement cost and in‑lieu fees. Malamud said the ordinance contemplates use of market data and noted that the Department of Real Estate can be asked to produce a per‑unit replacement valuation that typically aims to reach a percentage of construction plus site costs.
Tenants, labor and housing advocates urged caution. Cynthia Gomez of Unite Here Local 2 told the commission the six hotels named in public filings include "140 Ellis, 432 Geary, 54 Fourth Street, 447 Bush, 1412 Mission, and 972 Sutter" and said the group estimates those properties seek to remove roughly 238 rooms from the city's rent‑controlled SRO stock.
Commissioners directed the Director to request a valuation assessment from the Department of Real Estate, to notify Planning about the Commission’s review, and to return at a subsequent meeting with staff recommendations. President McCarthy and others emphasized the Commission can provide policy input but not substitute for the Director’s formal decision under the code.
The commission did not take a final vote on any conversion application at the meeting; rather, it asked staff for more information and signaled the item will return to the agenda with an analysis of valuation, process and options for interagency coordination.
