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Planning Commission approves 2152–2154 Market condo conversion amid short-term rental worries

San Francisco Planning Commission · January 15, 2015

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Summary

The Planning Commission approved converting two 3-unit buildings at 2152–2154 Market into six condominiums despite public pleas to bar short-term rentals; staff said CC&Rs often prohibit short-term rentals and the citywide short-term rental rules treat condominium units as dwelling units.

The San Francisco Planning Commission on Jan. 15 approved a condominium conversion at 2152–2154 Market Street, certifying a proposal to convert two 3-unit buildings into six residential condominium units.

Todd Kennedy of the Planning Department presented the project and recommended approval, saying the conversion meets the subdivision code and the city's priority planning policies. After staff presentation, members of the public raised concerns about housing preservation and short-term rentals.

Sue Hester, a longtime Eureka Valley resident, urged the commission to seek legal advice and impose conditions that would prevent the converted units from becoming short-term rentals. “There should be conditions that these units cannot be short term rentals, period,” she said. Cam Perridge, a project representative, replied that the proposal is consistent with other 5- and 6-unit conversions the department approves and that CC&Rs often include clauses that prohibit short-term rentals.

Deputy City Attorney Susan Cleveland Knowles told the commission that, under the short-term rental legislation taking effect Feb. 1, dwelling units and condominium units are treated the same for the purposes of the ordinance. Staff and commissioners also noted competing interpretations in public remarks over allowed unhosted days (staff and the city attorney cited 90 days unhosted in one exchange; earlier remarks referenced other day limits), underscoring ongoing enforcement and implementation questions.

Commissioners debated whether the commission could impose project-level conditions to bar short-term rentals. Planning staff cautioned that condominium conversions are reviewed for consistency with the general plan and subdivision code — not as discretionary conditional-use actions — which limits the commission’s authority to attach restrictions of that type. Commissioner Antonini said the legislation enabling certain TIC conversions was intended to expand homeownership opportunities but acknowledged it constrains the commission’s ability to add conditions to conversions.

After discussion, the commission approved the conversion by roll-call vote; the motion passed unanimously (7–0).

The commission recorded that CC&Rs can and sometimes do limit short-term rentals but that, because condominium conversions are not discretionary conditional uses, adding city-imposed short-term-rental prohibitions on a single conversion would require careful legal review or separate legislation. The department noted short-term-rental enforcement and CC&R practice will continue to be topics for future policy work by the commission and the Board of Supervisors.