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OCII adopts limited Ellis Act housing-preference policy for future agency-assisted projects

Office of Community Investment and Infrastructure (OCII) Commission · August 5, 2014
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Summary

OCII voted to adopt a temporary Ellis Act eviction preference (EAP) for qualifying displaced tenants in future OCII-assisted affordable housing projects, with limits: it applies after COP holders, only to projects with at least five affordable units, and to at most 20% of a project's affordable units; annual reporting and a three-year review were added.

The Office of Community Investment and Infrastructure on Aug. 5 adopted a resolution to include an Ellis Act eviction housing preference (referred to at the meeting as EAP) in future OCII-assisted affordable housing projects, subject to a set of operational limits and an amendment to require annual reporting and a three-year review.

Maria Benjamin of the Mayor's Office of Housing and Community Development (MOHCD) explained the program’s purpose and eligibility. "The Ellis Act is a way that a landlord who owns a rent-controlled building can go out of business in essence and evict the tenants," Benjamin said, describing large increases in Ellis Act evictions and the program’s goal of prioritizing long-term displaced tenants. MOHCD and OCII explained eligibility rules adopted by ordinance: applicants must generally have been in the unit for 10 years (or five years if disabled or if the tenant has a doctor-documented life‑threatening illness), and certificates issued by MOHCD currently cover evictions back to Jan. 1, 2012.

Staff described operational limits for project application: the preference would not apply to OCII-assisted projects with previous development approvals, it would only apply to projects with at least five affordable units, and it would apply to no more than 20 percent of the affordable units on a project-by-project basis. Staff emphasized that Certificate of Preference (COP) holders retain first priority in OCII and city-sponsored affordable housing.

Maria Benjamin said MOHCD had issued 82 EAP certificates and housed 10 households to date under the program that launched in April; staff noted not everyone who qualifies has applied and that certificates can be used once. Commissioners asked about outreach, documentation, language access and how the city would ensure eligible displaced tenants receive notice. Staff said landlords must provide notice to tenants and post building notices and MOHCD would provide application information in multiple languages and work with community-based organizations to reach affected tenants.

Chair Rosales offered a motion to adopt the resolution with a modification requiring an annual staff report in addition to a required three‑year program review. The motion was seconded and the Commission approved the amended resolution on a 3–0 roll call. Staff said they will return with annual reporting and a full program evaluation at three years to decide whether to continue, modify or end the preference.