Thanks to the generosity of Seligman Western Properties, this year’s event will be held at The Transamerica Pyramid’s Penthouse Conference Center, 48th Floor, 600 Montgomery Street, with its panoramic city views! Our program includes keynote speaker, newly appointed District 4 Supervisor Katy Tang – and ... | Read More >]]> Please join Plan C board members and friends at our annual fundraiser on Wednesday, June 12, 2013 from 6pm to 8pm to learn more about this year’s achievements and our plans for the rest of 2013.

Thanks to the generosity of Seligman Western Properties, this year’s event will be held at The Transamerica Pyramid’s Penthouse Conference Center, 48th Floor, 600 Montgomery Street, with its panoramic city views! Our program includes keynote speaker, newly appointed District 4 Supervisor Katy Tang – and the presentation of the 2013 Quality of Life Hero Award to none other than Mike Sullivan, our esteemed co-founder and chair emeritus!

By joining us on June 12th, you can help us build upon our recent successes. We are still in the midst of hard negotiations on the condo bypass reform and critical waterfront developments are being threatened. As always, we can’t take this November’s Supervisorial races for granted. We cannot allow normally dependable District 4 to slip away from the moderate camp this year, the same way – almost unbelievably – District 7 did this past fall! Please help us remain vigilant and at the forefront of quality of life reforms.

Please join us as a sponsor for our 12th annual fundraiser on June 12.

Organizational and individual sponsors of $250 or more will be listed as co-hosts, hosts and premier hosts on event invitations, email reminders and signage. Hosts at all levels will receive tickets to the event, the quantity commensurate with donation level. Individual hosts at all levels will receive a one year paid Plan C membership with voting rights.

For more details about giving levels and benefits, click on this link below to sign up for our Host Committee today:

http://plancannualfundraiser.eventbrite.com

We must hear from you no later than Friday, May 17, 2013 to be listed as a “host” on the invitation that will be mailed to thousands of Plan C and partner organization members.

Or, send a check (together with address, employer and occupation information) to the following address, made out to Plan C San Francisco, with “6/12 Fundraiser” on the memo line:

Plan C San Francisco
P.O. Box 26286
San Francisco, CA 94126

Thanks for your support!

Currently, however, there are thousands of TIC owners caught in a lottery system that has failed to keep up with demand ... | Read More >]]> Plan C has long been a champion of expanding the opportunities for first-time and middle income home buyers in SF. We have always believed that the path to home ownership created through the TIC to Condo conversion process is good for renters that aspire to become home owners, good for middle income individuals seeking home-ownership, and good policy for SF.

Currently, however, there are thousands of TIC owners caught in a lottery system that has failed to keep up with demand despite being made more restrictive in the last decade (not since 2004 can buildings with an Ellis Act convert under the current lottery system). Some of these TIC owners will wait upwards of 18 years to convert their TIC units, the homes in which they live, into a condo. The Wiener/Farrell legislation as originally introduced sought to help these individuals, many of whom are paying high mortgages and are unable to refinance, while strengthening protections for tenants.

On April 15, 2013 Supervisors David Chiu and Norman Yee made amendments to the condo lottery bypass legislation first introduced by Supervisors Farrell and Wiener. The amendments are the product of many hours of ongoing dialogue between those groups both for and against the legislation as originally proposed. While Plan C is not supportive of all the amendments that were introduced, our organization continues to press for and work towards a compromise solution that will help the greatest number TIC owners who seek to achieve housing stability in San Francisco.

When the lottery resumes, it will no longer allow 5 or 6 unit TICs to participate. In addition the owner occupancy requirements will be increased to require 2 owner occupants to qualify a 3-unit building and 3 owner occupants to qualify a 4-unit building. (The length of owner occupancy would remain at 3 years).

We also need to alert you to some potentially very bad news relating to the bypass. Various tenant activist groups have recently been ... | Read More >]]> We have learned that the condo bypass legislation will not be heard at the Board of Supervisors Land Use Committee on March 25, 2013 at 1:30PM and will be postponed again. It is not necessary to come to City Hall on Monday. The hearing may be rescheduled for April 8th. We will keep you posted as we learn more.

We also need to alert you to some potentially very bad news relating to the bypass. Various tenant activist groups have recently been pushing some very bad ideas as part of a compromise on the legislation. These proposals include requiring virtually everyone, even those who do not participate in the bypass, to pay new additional fees up to $20,000. Other ideas would place onerous restrictions on those trying to enter the lottery in the future, or reduce the number of participants in the lottery to well under 100 per year.

These ideas would be bad for current TIC owners, and would permanently change the lottery for future generations – creating permanent barriers to first time homeownership. Even worse, there is a very real chance that these ideas could pass unless the supervisors hear from you.

We urgently need supporters of the bypass to contact the following Supervisors:

-Norman Yee-Norman.Yee@sfgov.org - phone: 415-554-6516
-David Chiu-David.Chiu@sfgov.org - phone: 415-554-7450
-Malia Cohen- Malia.Cohen@sfgov.org - phone: 415-554-7670

Please ask them to support the bypass, and most importantly, ask them to support the bypass without significant changes to the condo lottery that will make it more expensive and difficult for future participants.

We believe that compromise is possible on the bypass, and that a compromise can be had that will help those current TIC owners who are willing and able to join a bypass, without hurting others (current and future) who are unable to participate in or afford the condo bypass. The support of the supervisors identified above are the key to achieving that compromise.

Please take action now!

Petition #1 is sent directly as an email to the three supervisors we believe are key votes.

Petition #2 records your support but isn’t sent to the supervisors. We will compile this petition and deliver it to the supervisors in person.

Please sign both petitions!

Sign Petition #1 here.

Sign Petition #2 here.

Here are the three supervisors who need to hear from us the most. You should give them a call and email them directly, too:

-London Breed in ... | Read More >]]> Plan C has created two online petitions:

Petition #1 is sent directly as an email to the three supervisors we believe are key votes.

Petition #2 records your support but isn’t sent to the supervisors. We will compile this petition and deliver it to the supervisors in person.

Please sign both petitions!

Sign Petition #1 here.

Sign Petition #2 here.

Here are the three supervisors who need to hear from us the most. You should give them a call and email them directly, too:

-London Breed in District 5-London.Breed@sfgov.org – phone: 415-554-7630

-Malia Cohen in District 10- Malia.Cohen@sfgov.org – phone: 415-554-7670

-Norman Yee in District 7-Norman.Yee@sfgov.org – phone: 415-554-6516

The Condo Bypass legislation will allow small, predominately owner occupied TIC buildings that participated or could have participated in the 2012 lottery, to bypass the lottery by paying a fee of up to $20,000 per unit (depending on the number of years the building has been in the lottery).  The fees will be dedicated to the city’s affordable housing program. (link to the legislation)

What is a Tenancy In Common (TIC)?

In a TIC, a building is owned ... | Read More >]]> What is the Condo Bypass Legislation?

The Condo Bypass legislation will allow small, predominately owner occupied TIC buildings that participated or could have participated in the 2012 lottery, to bypass the lottery by paying a fee of up to $20,000 per unit (depending on the number of years the building has been in the lottery).  The fees will be dedicated to the city’s affordable housing program. (link to the legislation)

What is a Tenancy In Common (TIC)?

In a TIC, a building is owned by the TIC group in percentage shares, including the rights to occupy a particular unit.  In San Francisco only TIC buildings with 6 or fewer units are allowed to convert to condominiums.

How is a TIC different from a Condominium?

There are fewer financing options and higher interest rates on TICs.  Also, TIC owners are not eligible for the loan modification programs available to most Americans after the housing crash.

What is the Condominium Conversion Lottery?

Each year San Francisco allows just 200 units (from buildings that are 6 units or less in size) to be converted from owner occupied TICs to condominiums.  The lottery has strict eligibility rules and limits participants to owner occupied TIC buildings that have been established for at least 3 years, and that do not have a history of evictions. Approximately 2,500 units are eligible for the lottery and first time participants can now expect to wait 15 or more years before a successful condo lottery conversion.

Why do TICs exist in San Francisco?

TICs exist due to the demand from entry-level buyers to own their own home in San Francisco.  Over the past 20 years, TICs, a riskier form of holding ownership,gradually became one of the few options for working families and middle-income residents who wanted to own in The City.

Who are TIC Owners?

TIC owners are primarily first-time homeowners.  We are a diverse group including young families, yoga instructors, small business owners, government workers, downtown employees, retirees and teachers.

We pay property taxes and maintain our properties to high standards  We participate in our communities.  We’re so committed, that we took a riskier form of homeownership to make San Francisco our permanent home. 

I heard TIC Owners were just a bunch of rich developers?

That could not be further from the truth. Many TICs were created with renters and other interested owner/occupant buyers creating a group to purchase a small apartment building.  Where developers were involved, most never lived in the units and the current owners are entry-level buyers in San Francisco.

Why do TIC owners want to convert to condominiums?

The combination of higher loan costs, questionable liquidity and uncertainty puts San Francisco TIC owners in a worse situation than both residents of  rent-controlled apartments and conventional homeowners.

Why can’t TICs go through a standard loan modification process if they are underwater?

TIC owners do not qualify for federal and state programs available to other homeowners that allow them to modify their loans; their loans are not federally backed.  Instead local banks and “non-standard” products hold these mortgages.

Didn’t TIC owners sign up for this?

Yes, and no. Most TIC purchasers knew they would have to wait 3 years before entering the lottery, but the path to condominium conversion has lengthened considerably over time and now exceeds 18 years for new entrants.

Won’t this reward people who evicted renters or lead to more “Ellis Act” evictions?

It will not.  The Board of Supervisors passed legislation to deny condominium conversion to any building that completed an Ellis Act eviction from 2006 on. In addition, buildings that have a history of a single eviction of a “protected” tenant are disqualified.

Won’t this harm existing renters?

It will not.  The requirements for the bypass include that a majority of the units be owner-occupied.  Rental units remain covered by San Francisco rent control while under the ownership of the existing TIC owners. And most importantly, any unit that converts via the bypass will be required to extend a life-time lease (meaning full protections of rent and eviction control) to current tenants.

Will this legislation cause rental stock to be taken off of the market?

No. The majority of TIC units that will convert are already owned by their occupants. These owner occupants should be provided with the same opportunity to remain in their units for the long term as if they were renting them. In addition, the legislation gives lifetime rent control protections to any existing tenants. It will also lead to the creation of additional affordable housing units.

How much would the bypass fee be?

The condo conversion fee is $20,000 per unit, but is reduced for buildings that have participated 2 years or more in condo conversion lottery:

2 years of participation, 20% fee reduction per unit ($16,000)

3 years of participation, 40% fee reduction per unit ($12,000)

4 years of participation, 60% fee reduction per unit($8,000)

5 or more years of participation, 80% fee reduction per unit ($4,000).

Don’t TIC owners already pay a hefty fee to the city to convert? Why do they want to pay more?

They do pay about $10,000 in fees per building now. They are willing to pay the additional fee because of the uncertainty and variability of TIC mortgages, especially in the current economy. TIC owners should  be able to recover some of the costs through the longer-term, lower interest rate mortgages on their units once they are converted and refinanced.

How much money could the bypass raise?
The Condo Bypass fees could raise up to $20 million for the city’s affordable housing programs.

Why affordable housing?

The State closed its Redevelopment Association, a major source of financing for the City’s affordable housing program.  Projects for thousands of housing units are left scrambling for funds.  The fees from the Bypass legislation will create and renovate thousands of housing units and provide numerous construction jobs.

I heard the bypass will harm the local economy because large condominium developers will stop new construction because of the increased competition from TICs.

TICs are in older buildings that do not compete with new construction. They won’t complete with new construction as condominiums any more than they did as TICs. In fact, the economy will benefit from jobs created by the estimated $20 million in fees to go to affordable housing, the $6 million in processing fees to the city’s planning department and the $2 million in repairs and upgrades TICs will undergo to comply with the conversion requirements.

Who benefits?

1) San Francisco TIC owners can take advantage of the stability, flexibility and improved rates provided by a conventional mortgage.  2) The City retains more middle class residents and families as they have greater financial stability.   3) The affordable housing communityreplaces funds lost when the state closed the Redevelopment Agencies. 4) Construction workers gain jobs created with the affordable housing funding.

Who loses?

Banks with TIC loans may earn a lower rate of interest or lose their TIC customers to more competitive lenders.

Why would the city subsidize TIC owners?
It will not.  San Francisco subsidizes many, but not TIC owners.  In fact, TIC owners are penalized by paying higher loan costs, yet pay the same taxes and fees as every other property owner in the city. The Condo Bypass will allow mortgage savings to replace the funding recently taken from affordable housing programs.

This would be a “bailout” for TIC owners.

FALSE! A bailout for TIC owners would imply a cost to the tax payers. However, TIC owners are the ones paying a fee. How can they afford it? TIC owners will take the savings from lower interest rates and give that to affordable housing in San Francisco at a time when funding has been cut. Taking from the banks and giving to affordable housing — seems like something all of San Francisco should support.

Won’t this will encourage more TIC units?

There will always be interest in entry-level housing in San Francisco. TIC units will remain a viable option for first-time homeowners regardless of this bypass legislation.

What can I do to help?

Click here for the most current ways to get involved.

Make your voice heard!  1) Contact your Supervisor. 2) Participate in social media. 3) Talk to your neighbors. 4)  Get other owners involved. 4) Join Plan C.  This will not pass unless you make it happen!

Plan C has been one of the few groups advocating for first-time homeownership opportunities in San Francisco, speaking up for TIC owners and fighting for condo conversion reform. We know too well many of the issues faced by TIC owners, most of them first time homeowners, that struggle to stay in their homes. Below are the stories of  7 San Francisco TIC owners  that have shared why Condo Lottery ... | Read More >]]> Click Here for the most current information on the Condo Bypass Legislation.

Plan C has been one of the few groups advocating for first-time homeownership opportunities in San Francisco, speaking up for TIC owners and fighting for condo conversion reform. We know too well many of the issues faced by TIC owners, most of them first time homeowners, that struggle to stay in their homes. Below are the stories of  7 San Francisco TIC owners  that have shared why Condo Lottery Bypass legislation matters and what’s at stake for them. Please read their stories and tell us yours by sending a comment to us at the bottom of the page or to info@plancsf.org.

WHY TIC OWNERS ARE GETTING INVOLVED

• District 8 TIC Owner: I am an immigrant and a new citizen (got my citizenship in 2010). It’s harder than youthink to change countries and build a life in America when you’re on your own. I came to the US in 2000 with $6000 and a job offer; getting to home ownership in 2007, even if it was in a TIC, was a big step for me. My TIC partners include both a couple with a baby and a retiree living on Social Security.

• District 3 TIC Owner: We live in a 6-unit building. Some of the owners purchased at or near the peak and are would lose money if they sold today. We are all long-term San Francisco residents. We take care of our property, it is one of the best looking on our block. Every month we waste our money paying 7.25% to our TIC lender rather than a much lower payment. Its wasteful. We’d happily pay a fee that goes to affordable housing and improving our community rather than giving it away to the bank.

• District 5 TIC Owner: I am in a 3 unit TIC building we purchased from a retiring couple, so no evictions, and our original 3 owners are all still here. I was single with a roommate when I bought it, am now a single mother mother with a 3 year old daughter. I’d like the stability to stay in the city.

• District 8 TIC Owner: I live in a 3 unit building with separate entrances to the street. I have been in the building 5 years and have yet to win the lottery. I sit on the sidelines while my friends refinance their homes at 30 year 4.0 fixed rates. I have a 5 year Interest only loan that’s at 5.125 which means every month I spend close to $400 more than I need to and I haven’t even begun to touch the principal on my loan. I am basically renting my apartment from the Bank. The banks won’t change. That’s why I need government to change to make it fair. Yes, I am lucky enough after 30 years of working hard to afford to even own. But that is the dream of most hardworking Americans.

• District 2 TIC Owner:We have our original loan which is now variable each year. The rate is currently low but who knows when that will change, It can rise 2% a year, so it could get very unaffordable fast. We would love to refinance but the market makes that fairly difficult and expensive, so I’m not sure it’s possible for us. The fractional loans have interest rates that are far above market rates.

• District 10 TIC Owner: We live with our 10 month old daughter. We are TIC partners with friends and their 8 year old daughter. We bought the building in 2007 with a 20% down Payment. In 2011 we successfully refinanced after a great deal of pain. But to do so we needed to come up with a significant amount of money to complete the refinance as the requirements had changed and we needed 30% equity. We gathered savings and some support from family and were able to scrap through. This was a stretch for us to make but what about those who are unable to refi at all?

 • District 8 TIC Owner: As for our situation, I think our building is a good mix of what makes San Francisco. It isn’t as clear cut as teacher vs. investment banker, of course, and I hate to play to the idea that yoga teachers and paralegals are somehow more deserving of homeownership in SF, but I understand that is framed as “rich” vs. tenants. Our building is a 6-unit 60s box, definitely on the small side. Our ownership is a mix: writers, a robotics expert, a social worker, an architect, an energy conservation consultant, a marketing consultant. We were two families with young children, three single gay men, and one older landlord. Two sets of owners were originally tenants in the building (from 1995 and from 2003). Many of us are active in the community, supporting a multitude of causes with our time and our money. Our child attends the public school down the block, and we will throw ourselves into supporting the public schools as well.

Why does it matter that we’re stuck in TIC limbo? We’re sitting with 7+% financing and learned when we tried to refinance that the banks don’t understand TICs and don’t recognize fractional financing so are unwilling to offer condo rates—the difference amounts to thousands of dollars a year for each unit. I can’t believe that opponents of this measure would rather see all of our money going to Bank of Marin instead of being spent in our community. We have learned that every aspect of dealing with the assessment and property tax for a TIC is convoluted and expensive. I feel like we’re being punished for trying to be responsible by buying a TIC we could comfortably afford vs. buying a house that was a stretch and would have us making career decisions based solely on money. I am so frustrated by this mentality that somehow we became less-deserving, less-desirable members of this community the moment we saved enough to buy something and stop being tenants. Ownership roots us in the community.

 WHERE CAN I FIND MORE INFORMATION

At the Plan C Website  www.plancsf.org

WHAT CAN I DO TO MAKE A DIFFERENCE?

1. Tell others in your building, other TIC owners, or anyone who supports this legislation – to contact us at info@plancsf.org and to complete our form (click hereto do so yourself). It’s critical that we be able to contact and mobilize a large number of TIC owners who are suffering under the current lottery system.
2. If you’re on Facebook or Twitter, post on your Facebook page and Tweet about this issue. Like us on Facebook and “share” our updates. Make sure you  follow us on Twitter and “Retweet” us. You’ll find us and our action alerts: @plancsf
3. Sign our petition and spread it to others! Click here to sign the petition.
4. Distribute fliers to friends/contacts. Click here for an easy-to-print flier.
5. Email and call your supervisor (personal calls or emails to your supervisor are hugely important).   Click here for a list of supervisor names and contact info.  Calling a supervisor is easy – a volunteer will answer the phone and take down your position/views.
6. Email and call other supervisors.   Key supervisors to contact are Supervisors Malia Cohen, Christina Olague, Jane Kim and Eric Mar (Supervisor Mar is chair of the Land Use Committee, and Supervisor Cohen is a member of the committee).Key points to make in any call, email or visit to the supervisors:
   · Please support the “condo bypass” legislation
   · If you are a voter in the supervisor’s district, mention that
   · The condo bypass is personally very important to you (and explain why)
   · No one will be hurt – tenants are protected by “lifetime leases”, and buildings that have been cleared by evictions cannot participate
   · The condo bypass will raise $20-25 million for affordable housingSample email:

Below are Plan C’s formal endorsements that appear in our Plan C Voter Guide. Our endorsement process is based on votes by ... | Read More >]]> This November brings another important election to San Francisco.  In 2010 and 2011, moderates made significant progress at City Hall, swinging the political pendulum closer to the center. This year we again have a number of critical races in the November election, and we need your help to continue our momentum and promote common sense candidates and ballot measures.

Below are Plan C’s formal endorsements that appear in our Plan C Voter Guide. Our endorsement process is based on votes by our members, so if you are not a member already, we encourage you to join our cause. Additional discussion on local ballot measures can be found here.

Board of Supervisors:
District 1: David Lee
District 3: David Chiu*
District 5: No endorsement
District 7: Mike Garcia –First Choice, FX Crowley #Second Choice, Joel Engardio #Third Choice
District 9: No endorsement
District 11: No endorsement

Board of Education:
Jill Wynns*
Rachel Norton*
Sam Rodriguez
Beverly Popek

Community College Board:
Rodrigo Santos
Steven Ngo*
Natalie Berg*
Amy Bacharach

Ballot Measures:
Prop A: City College Parcel Tax – NO
Prop B: 2012 Clean and Safe Neighborhood Parks General Obligation Bond – YES
Prop C: Affordable Housing Trust Fund and Housing Production Incentives Charter Amendment – YES
Prop D – Consolidating Odd-year elections – YES
Prop E – Gross Receipts tax to replace Payroll Tax – YES
Prop F – Water Sustainability and Environmental Planning Act of 2012 – NO
Prop G – Declaration of Policy – Repealing Corporate Personhood Policy statement – NO POSITION

*Denotes Incumbent

Download the Plan C Voter Guide

Click here to download the Plan C Voter Guide. Take it with you to the polls on November 6, 2012 to make it easy. And, forward this guide to friends, family, and colleagues.