March, 2006 -- A few weeks ago, Supervisors Maxwell, Peskin, Amiano, Mirkarimi, and Daly voted to place a new anti-TIC bill on the June ballot. This measure -- called Proposition B -- would make it unlawful for a landlord when offering a property for sale that includes two or more residential units to knowingly fail to disclose in writing to any prospective purchaser:

1.) The specific legal ground(s) for the termination of the tenancy of each residential unit to be delivered vacant at the close of escrow; and, 2.) whether the unit was occupied by an elderly or disabled tenant at the time the tenancy was terminated. This disclosure would be required to be made up front to prospective buyers presumably through advertising and marketing materials.

Sound familiar? In February, Supervisor Chris Daly proposed the exact same bill but could not muster enough votes to override a Mayoral veto. On the outset, this bill appears quite reasonable. Every prospective buyer is legally entitled to this important information. However, upon closer inspection, the bill is seriously flawed, unnecessary, and is being misrepresented to the voters of San Francisco. The voters of San Francisco must now decide. We need your help to fight this misleading proposition.

Our position: The SF TIC Coalition has always been a strong advocate of disclosing eviction history as part of the industry-proven, homeownership purchase process. We understand that eviction history will affect property values and prospective buyers need to be protected. As such, the current system has always disclosed significant information about a property -- including evictions, termites, foundation cracks, etc. -- and has consistently protected prospective buyers.

Why is this proposition on the ballot if the process is already working? If we follow Proposition B's logic, why not also publicize information about a cracked foundation or termites within a "for-sale" marketing brochure?

Proposition B is a vendetta against buildings that have utilized the Ellis Act is being misrepresented to the public. The SF TIC Coalition has consistently maintained that it is against all unnecessary Ellis Act evictions. However, there are better ways to address the Ellis Act eviction problem than with an unnecessary and misleading Proposition at taxpayer expense.

The misleading nature of this bill can be best summarized by its two major backers: The Tenants Union and Supervisor Chris Daly. Why are two advocates that have publicly and consistently proposed anti-homeownership proposals suddenly trying to protect homeowners and claiming that they need this disclosure protection when it already exists? During the hearings for the vetoed bill, Chris Daly and the Tenants Union could not produce one homeowner claiming that they were duped into purchasing a property with an eviction history. As a result, we believe the timing of the current disclosure process is working and protecting prospective buyers when purchasing properties with an eviction history.

More importantly, the mechanics of Proposition B are seriously flawed. As most homeowners will attest, purchasing a home follows a formal and legal process to protect both buyers and sellers. All disclosures must be presented from the seller and acknowledged by the buyer whenever an offer is submitted. Under Daly’s plan, how can buyers and sellers achieve compliance and acknowledge receipt of eviction disclosures when it just has to be casually “available” on a brochure or newspaper ad?

As a practical alternative, Supervisor Dufty recently proposed an exact same measure as Supervisor Daly’s bill. However, in Dufty’s bill the delivery of the disclosure would occur within three days after acceptance of an offer to purchase. This bill beefs up the current disclosure process which doesn’t include details such as evictions of a protected tenant. We support this approach and timing.

This Proposition affects TIC owners and must be defeated for two significant reasons:

1. We need to defeat this Proposition to send a strong message that a pro-homeownership environment is important to San Franciscans.

2. We need to defeat this Proposition to send a strong message that San Franciscans support the practical homeownership approach that balances the rights of renters and homeowners advocated by Supervisors Dufty, Alioto-Pier, Ma and Elsbernd and Mayor Newsom.

A victory for this Proposition will be viewed as a referendum by Chris Daly and others on the Board of Supervisors to pass more restrictive TIC legislation. Please forward this email to your friends and tell them to oppose Proposition B on the June ballot. Ask them to join the SF TIC Coalition for news and updates on Proposition B. Most importantly, get out and vote in June!

Randy Brasche
President, San Francisco TIC Coalition