Board committee advances ordinance to regulate tenant buyouts after extended public testimony

A San Francisco Board of Supervisors Budget & Finance Committee on Oct. 8 advanced an ordinance aimed at regulating landlord "buyouts" — monetary offers to tenants to vacate — requiring disclosures, written contracts and limited rescission rights.

Sponsor Supervisor Campos told the committee the proposal targets a growing, under-the-radar form of displacement. "Buyouts are a loophole in our just cause eviction law," Campos said, and the ordinance would "require landlords to provide tenants with a disclosure of the tenants rights both before the landlord commences buyout negotiations and at the time that the buyout agreement is reduced to writing." Campos also said the bill "allows a tenant the ability to rescind a buyout agreement for up to 45 days after he or she signs an agreement." The measure would require buyout agreements to be filed with the Rent Board and made publicly searchable, and it extends condo-conversion restrictions in specified buyout cases.

The sponsor removed a proposed filing fee for landlords after consulting with stakeholders and proposed a separate technical amendment to change one procedural timeframe from 90 to 120 days at the Rent Board's request.

Public testimony was extensive and sharply divided. Tenant advocates and legal aid organizations described buyouts as "de facto evictions" that are often accompanied by intimidation, threats of Ellis Act evictions and pressure on vulnerable tenants. Tommy Avakoli Mecca of the Housing Rights Committee told supervisors: "Buyouts are de facto evictions." Scott Weaver, an attorney with West Bay Law, argued the city has a basis to tightly regulate buyouts because they are frequently used to evade eviction rules and condo-conversion restrictions.

Opponents included property-industry groups and some who said buyouts can benefit tenants. Janann New of the San Francisco Apartment Association warned the committee the city cannot simply make private contracts public and predicted legal challenges. Brooke Turner of the Coalition for Better Housing said she has seen buyouts that helped families, arguing that some transactions should remain voluntary.

The ordinance also moves primary enforcement authority from the Rent Board to private parties (nonprofits focused on tenant rights) and the City Attorney’s Office; sponsors said the Rent Board currently lacks capacity and a conflict-of-interest concern with administrative law judges. Campos said that change supported removing the landlord filing fee.

In committee debate, supporters said the measure levels the playing field, creates data and transparency about previously untracked buyouts and protects tenants with limited English proficiency. Chair Mark Farrell said he sympathized with victims of coercion but expressed concern the ordinance could be a blunt instrument and would not support it at the board level.

The committee held a roll-call vote: Supervisor Marr — Aye; Chair Farrell — No; Supervisor Avalos — Aye. The ordinance passed the Budget and Finance Committee 2–1. The committee directed clerical and technical changes and asked staff to provide the amended legislation per the clerk’s schedule.

Next steps: The ordinance will move to the full Board of Supervisors for further consideration; the committee did not record additional fiscal analysis in the hearing beyond the sponsor's and Rent Board requests for technical clarifications.