Dive Brief:
- San Francisco Mayor Daniel Lurie on Thursday introduced a package of six proposed ordinances and more than $30 million in investments to address what he called a “rent emergency” in the city.
- The package includes measures to prevent sudden rent spikes and evictions as well as initiatives to provide tenants with legal tools.
- San Francisco median rents have surged more than 25% in the past year, outpacing all major cities, due largely to an influx of high-paying AI tech jobs.
Dive Insight:
As rents have increased in San Francisco, so have eviction proceedings. The city is on pace to record its highest number of eviction notices in more than a decade, with over 1,000 filed so far this year. About 25% are due to nonpayment.
The proposed reform package backs legislation that would halt evictions for nonpayment if a tenant owes less than one month’s worth of fair market rent set by the federal government. Rent increases would be capped at 10% annually.
The package dedicates $27 million to replace expiring federal housing vouchers for around 650 extremely low-income households as they transition to other federal rental subsidy programs this year. It would allocate an additional $3 million to provide full legal representation to 400 households facing eviction.
The package includes a proposed 25% increase in payments to tenants being displaced under the Ellis Act, which requires landlords transitioning away from renting to pay relocation expenses for tenants. The city will also invest $1 million and partner with private employers to create a “know your rights” campaign for renters.
The reforms aim to provide renters with “greater stability,” Lurie said in a news release.
“We have lived through booms before — this time, we have an opportunity to build a recovery that is broad-based and lasting, where San Franciscans can put down roots and participate in our city’s success,” Lurie said.
