Wednesday, January 11, 2006

SF TIC Conversion In Danger

If you own a TIC in San Francisco, it's time for you to get vocal with your Board of Supervisors. Supervisor Chris Daly has proposed two bills that will dramatically increase the difficulty of condo conversion for all TIC owners, even those who currently can bypass the Condominium Lottery.

This Chronicle article outlines the two Condo bills, which have both received initial approval from the Board of Supervisors. One bill would subject all TIC owners who want to convert to condominiums to a review and approval of the Planning Commission. Currently only buildings with five or more units must undergo this process. The second bill, designed to slow the conversion of multi-unit rental housing into TICs, would make property sellers disclose information about prior tenant evictions.

Granted, this is the type of scenario we Realtors try to explain to TIC buyers when talking about the larger degree of risk than other types of property ownership. If these bills pass, people who have purchased TICs with a certain expectation of how long it will take to convert to a condominium may see a dramatic change. How the outcome of these bills will impact the TIC and condominium markets remains to be seen.

Regardless, TIC owners who do not want want to see dramatic (negative) change in the conversion process, would best protect themselves by becoming incredibly vocal with their respective District Supervisors. Below is a contact list for District Supervisors.

District 1 Jake McGoldrick 554-7410
District 2 Michela Alioto-Pier 554-7752
District 3 Aaron Peskin 554-7450
District 4 Fiona Ma 554-7460
District 5 Ross Mirkarimi 554-7630
District 6 Chris Daly 554-7970
District 7 Sean Elsbernd 554-6516
District 8 Bevan Dufty 554-6968
District 9 Tom Ammiano 554-5144
District 10 Sophie Maxwell 554-7670
District 11 Gerardo Sandoval 554-6975

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