Implementation of Ordinance #320-08
Back to topBackground
Between 1979 and 1988, building owners who converted their properties from apartments to condominiums were required by the City to set aside certain condominiums as below market rate units (BMR Units). These BMR Units are price-restricted under San Francisco Subdivision Code Sections 1341 and 1385 and continue to be made available at below market rates to households of low or moderate income, depending on how the property was originally designated. Condo Conversion Program BMR units are located in buildings citywide.
In December 2008, the Board of Supervisors adopted Ordinance No. 320-08 (the Ordinance) amending the San Francisco Subdivision Code related to the Condominium Conversion BMR Program (the Program). The Ordinance was intended to clarify the rules applicable to existing BMR Units and to provide updated standards for BMR units purchased on or after the effective date of the Ordinance. The Ordinance addressed standards in such areas as occupancy, marketing requirements, buyer and inheritance qualifications and monitoring the use of BMR units. The Board of Supervisors adopted the Ordinance on December 16, 2008 and the Mayor signed it on December 19, 2008. The effective date of the Ordinance is January 18, 2009 (30 days after being signed by the Mayor).
The Ordinance provides that current owners of individual BMR Units may elect to stay in the current Program under the rules for pre-legislation owners or may select one of the alternatives listed in the Ordinance. Owners must select and complete the transaction for options available under the Ordinance by January 18, 2011. Original Subdividers also have two options under the Ordinance. Please see Section IV below under "Available Options under the Ordinance" for information about each option.
Back to topProcess for developing final procedures and application deadline
The Ordinance allows 90 days after the effective date to develop and publish procedures for selecting one of the available options. The Mayor's Office of Housing and Community Development (MOHCD) published procedures according to the following schedule.
MOHCD posted draft documents on Friday, March 20, 2009. Members of the public were asked to comment on the drafts by March 30, 2009. All public comments were reviewed and incorporated to the extent possible in the final documents.
Beginning April 20, 2009, MOHCD will begin accepting and processing owner applications to be included in one of the available options. The Ordinance states that all agreements must be fully executed (signed by the City and the owner) and all relevant documents must be recorded against the property by January 18, 2011.
Application Deadline: In order to ensure that your submission can be processed in time, MOHCD must receive your complete application by December 1, 2010.
Back to topOwner categories
The Ordinance divides owners into four categories: pre-affidavit owners, pre-legislation owners, post-legislation owners and original subdividers. Please note that if you inherited the BMR unit or it was otherwise transferred to you, you will be in the owner category that matches the date title was transferred to you. The definitions of each owner category can be found in the Ordinance and are summarized below.
Back to topA. Pre-affidavit owners
Owners who purchased or acquired their BMR unit before December 1, 1992 are called "Pre-Affidavit Owners." Owners in this category have three choices under the Ordinance, as follows. Additional information and documents related to each option are provided in section IV(A) below under " Available Options under the Ordinance."
- Option 1: Continue to be Governed as a Pre-Legislation Owner (Stay on the Current Program)
- Option 2: Agree to be Governed as a Post-Legislation Owner (Opt Into the Updated Program)
- Option 3: Pay a Fee and be Released from the Program
B. Pre-legislation owners
Owners who purchased or acquired their BMR unit before January 18, 2009 (the effective date of the Ordinance) are called "Pre-Legislation Owners." Owners in this category have two choices under the Ordinance, as follows. Additional information and documents related to each option are provided in section IV(A) below under "Available Options under the Ordinance."
- Option 1: Continue to be Governed as a Pre-Legislation Owner (Stay on the Current Program)
- Option 2: Agree to be Governed as a Post-Legislation Owner (Opt Into the Updated Program)
C. Post-legislation owners
Owners who purchased or acquired their BMR unit on or after January 18, 2009 (the effective date of the Ordinance) are called "Post-Legislation Owners." Owners in this category are subject to the provisions of the Ordinance for post-legislation owners.
Back to topD. Original subdividers
Owners, or their successors in interest, who owned an apartment building at the time of conversion and have continued to rent their units under Subdivision Code Section 1341 are called "Original Subdividers." Original Subdividers have two options under the Ordinance. There is no time restriction for selecting one of these options. Additional information and documents related to each option are provided in section IV(B) below under "Available Options under the Ordinance."
- Option 1: Demonstrate a 20-year Affordable Rental History and be Released from the Program
- Option 2: Pay a Fee and be Released from the Program
Back to top
Available options under Ordinance #320-08
View options available under Ordinance #320-08.
Back to top