San Francisco Association of REALTORS®

A new San Francisco Ordinance going into effect on Wednesday, May 22, 2019 requires all Sellers and landlords of all real property (residential and commercial) located in areas of San Francisco at risk for 100-Year Storm Flood events to provide prospective buyers and tenants with a special disclosure statement. 

 

This new disclosure requirement, among other things, provides such transferees with notice of the existence of the updated San Francisco Public Utilities Commission's "100-Year Storm Flood Risk Map," which map can now be found as part of the NHD disclosures from the various service providers, such as JCP. 

 

The new mandatory disclosure form titled Flood Map Disclosure Statement is currently available on the SFAR Member website. It will become page 2 of a new Flood Map Advisory and Disclosure form, expected to be available in the SFCA library on zipForm by the end of May. Please See the Documents Here. 

 

SFAR recommends the use of the new Flood Map Disclosure Statement in every residential transaction (and lease). 

 

Further information can be obtained at the San Francisco Public Utilities Commission website, including access to its 100-Year Storm Flood Risk Map.

 

There is another new San Francisco Ordinance impacting sellers. It will: 

• Apply to 3 or more residential units (and lots on which 3 residential units may be constructed), including mixed use properties; 
• Give certain non-profit organizations "preemptive" rights to buy such properties from sellers before anyone else via a complicated statutory "right to first offer" and "right of first refusal" process that will cause delay, burden and risk; 
• Stop sellers of such properties from offering or accepting offers to sell from private buyers until they first notify such non-profits. 

 

Sellers violating this new law are subject to claims by such non-profits, including for damages and attorney's fees. Certain fines, penalties and other remedies may also be allowed, including against "a party that has willfully colluded" with a violating seller. 

Ø Sellers of such properties wishing to properly avoid this new law should consider entering into purchase and sale agreements before the close of business on June 1, 2019. Such agreements are expressly excluded. 

Before the Effective Date, the City is supposed to post a list of the eligible or "qualified" non-profits at the website for the Mayor's Office of Housing and Community Development so that sellers know who to notify in order to comply with this new law.

• No such list has been posted yet. It may not be ready until the June 2, 2019 Effective Date. 

Within 90 days after the Effective Date, the City is supposed to issue rules and regulations informing as to interpretation and implementation of the law. 

• No such rules and regulations are apparently in the works at this time. Until August 31, 2019, many questions thus may remain unanswered, including whether sellers of individual TIC units in 3+ unit apartment buildings must comply. 

For any questions or advice concerning this new law, Sellers should be advised to engage a qualified San Francisco Real Estate attorney. 

 

Updates from the Association will follow, including on this law's detailed notice and preemptive rights process before the Effective Date, along with a SFAR Advisory on topic. 

 

A legal challenge is anticipated. Whether or not implementation of the new law will be delayed depends upon later Court rulings. For now, plan on this law being in force June 2, 2019.