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ALERT: Protect Your Client's Right to Repair and Renovate Their Home

City Hall has proposed Home Demolition Legislation which will take away a homeowner's right to make basic repairs and renovations to their home!
The Home Demolition Legislation (File No. 181216) will create incredibly restrictive construction requirements and cost-prohibitive bureaucratic hurdles, preventing homeowners from making several renovation and repair projects that are critical to giving families a livable home in San Francisco.
We need your help!
The Home Demolition Legislation is coming to the San Francisco Planning Commission this Thursday, June 20. 
Sign our petition today and tell City Hall to stop this misguided legislation from moving forward!
Legislation Details
The Home Demolition Legislation impacts several renovation and repair projects that are critical to giving families a livable home in San Francisco. The Legislation: 
  • Requires homeowners looking to make simple repairs, such as dry rot removal, to obtain Conditional Use authorization from the Board of Supervisors - adding thousands of dollars and months of time to critical projects.
  • Requires most repair and renovation projects that remove walls or floors to go before the Board of Supervisors for Conditional Use authorization, even if the removals are temporary.
  • Significantly increases the requirements the Board of Supervisors will enforce on homes applying for Conditional Use authorization - preventing many renovation and repair projects from being approved at all.
The Home Demolition Legislation is coming to the San Francisco Planning Commission this Thursday, June 20. Sign our petition now and tell the San Francisco Planning Commissioners to protect a homeowner's right to repair and renovate their home.
If you are able to make it to the San Francisco Planning Commission, the hearing is this Thursday, June 20, 10 a.m. at San Francisco City Hall, Room 400.
If you have any questions, please reach out to Jay Cheng (This email address is being protected from spambots. You need JavaScript enabled to view it.) or Mary Jung (This email address is being protected from spambots. You need JavaScript enabled to view it.).

COPA Implementation Postponed to September 3, 2019

If you work with owners of multi-unit residential buildings, we highly recommend you read the Mayor's Office of Housing and Community Development's new FAQs regarding the Community Opportunity to Purchase Act (COPA). Until the implementation date of September 3, property owners will not be required to apply any COPA requirements to the sale of their property.

Also, please download SFAR's COPA Advisory and Q&A here. 

Contact Jay Cheng (This email address is being protected from spambots. You need JavaScript enabled to view it.) or Mary Jung (This email address is being protected from spambots. You need JavaScript enabled to view it.) with any questions.

ALERT: COPA Notice and Interim Advisory

The City and County of San Francisco ("City") has enacted a new law impacting Sellers listing or privately selling buildings with 3 or more residential units (including TIC "units" in such buildings) whether or not mixed use, and lots zoned for such units. This new law is called the Community Opportunity to Purchase Act ("COPA").
 
            COPA goes into effect June 2, 2019.
 
But COPA appears to be unenforceable as the City has yet to publish a required list of "Qualified Nonprofit Organizations" (the "List"). Without the List, Sellers cannot comply with COPA as it is impossible for Sellers to provide such nonprofits with the "right of first offer" and "right of first refusal" notices required by this law. 
 
How long COPA will be unenforceable is unknown.
 
And it presently is unclear whether-once the List becomes available to the public--the City will require Sellers immediately to comply with COPA or grant some grace period to allow for compliance  following notice of the List's availability. The timing of the enforcement of COPA could impact pending listings, unaccepted offers or terminated purchase agreements, as further discussed in the "Q&A" below.

SFAR has prepared a Notice & Interim Advisory for Sellers of real property subject to COPA. This new form is linked here
 
The Mayor's Office of Housing and Community Development ("MOHCD") reportedly will provide an "FAQ" to the public on June 3, 2019 confirming COPA is presently unenforceable, elaborating on when the List likely will be available, and providing other important information. 
 
Sellers seeking advice or having any questions regarding COPA should engage a qualified San Francisco Real Property attorney.
 
Sellers of real property subject to this new law may also contact MOHCD with questions, including whether the List is available. The MOHCD is located at 1 South Van Ness, 5th Fl. San Francisco, CA 94103, and its staff can be reached at Tel: (415) 701-5500, Fax: (415) 701-5501 or This email address is being protected from spambots. You need JavaScript enabled to view it.. When the List is ready, MOCHD is required by COPA to print out the List upon request and post it at the MOHCD website.

NEW LAW ALERT: Starting on June 2, 2019 a New Law Requires Sellers of 3+ Residential Units to First Give Non-Profits the Opportunity to Buy

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. 
Effective Date: June 2, 2019
 
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.

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22 August 2019

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