San Jose moves toward ordinance limiting Section 8 discrimination

Landlords in San Jose would no longer be able to advertise that they don’t take rental vouchers.

San Jose took a step toward making it harder for landlords to turn away would-be tenants who use vouchers to help pay the rent.

This week, the San Jose City Council directed the city attorney’s office to draft an ordinance aimed at giving renters with subsidies, commonly known as Section 8 vouchers, a fair chance on the private rental market. The so-called source of income ordinance would not force landlords to take the vouchers, but it would ban them from judging potential tenants who use subsidies differently from those who don’t and from explicitly advertising “No Section 8” on apartment listings.

If everything goes according to plan, the council will vote on the ordinance in the spring.

While a number of landlords blasted the proposal, saying it would force property owners to navigate convoluted regulations and paperwork, the city’s Housing Department said an ordinance is necessary to make sure families are able to find affordable housing.

Right now, there’s no law that prevents landlords from turning away voucher holders, and a city survey found most do, leaving low-income families scrambling to find homes in one of the nation’s tightest housing markets. Several national studies suggest that when cities and states have such ordinances in place, the percentage of landlords turning away voucher holders goes down and more people with vouchers are able to find places to rent.

“Voucher discrimination is happening in San Jose,” said Jacky Morales-Ferrand, the city’s housing director.

Several landlords told horror stories about Section 8 voucher holders who left rental units in bad shape. But tenants and tenant advocates countered that there’s no evidence voucher users are any better or worse than people who don’t use subsidies.

“We can’t judge the actions of a few and put it on the majority of the people,” said Robert Aguirre, who has used vouchers. “Not all Section 8 holders destroy property or disrespect the people around them.”

“We see clients all the time who are not able to rent housing, have to move away from San Jose, have to live in cars. … it’s absolutely heartbreaking to see that and this ordinance would help,” said Nadia Aziz, an attorney with the Law Foundation of Silicon Valley.

 

 

Read more on East Bay Times

 

 

Owner who demolished Neutra house ordered to build exact replica

Ruling comes on the heels of the proposed Housing Preservation and Expansion Reform Act.

Designed in 1936 by Richard Neutra, the all-white, two-story Largent House in Twin Peaks was one of the few conceived by the noted architect in the Bay Area. For years it stood as a respected example of modernism, and as a dramatic and different construction when it went up during the Great Depression.

Today the house is no more. Over the years, the home suffered ill-advised renovations before falling victim to a demolition crew in early 2017 after it was purchased and illegally razed.

Now the city is fighting back.

According to a directive from the city’s Planning Commission, the owner must build an exact replica of the home.

“In a unanimous 5-0 vote late Thursday night, the commission also ordered that the property owner—Ross Johnston, through his 49 Hopkins LLC—include a sidewalk plaque telling the story of the original house designed by architect Richard Neutra, the demolition and the replica,” reports the San Francisco Chronicle.

Johnston explained to the San Francisco Planning Commission that, for $1.7 million, he had purchased the house “as a family home that would enable my family of six to move back to San Francisco.” He went on to say that he had been “stuck in limbo for over a year,” claiming that the property had already been renovated by former owners over the years, thus disqualify it from historic designation status.

No dice. The city wants to make an example out of Johnston.

 

 

Read more on Curbed SF

 

 

 

Trump is getting involved in Opportunity Zones, and experts think that’s a good thing

Opportunity zones have become the darling of real estate investors since their adoption last year, but the still-under-the-radar program is poised to receive a lot more attention, and possibly scrutiny after it was promoted in the Oval Office last week.

President Donald Trump’s signing of an executive order to push more federal resources into the Opportunity Zone program is a step in the right direction and could bolster the little-known tax incentive program and the distressed communities that benefit from investments, experts said.

“I think investors in the marketplace are going to be excited that there are going to be a number of new federal benefits aligned to these zones,” Develop founder Steve Glickman said.

Glickman is a former Obama administration official and one of the original architects of the Opportunity Zone program, which was enacted as part of the Tax Cuts and Jobs Act of 2017.

“Frankly, these zones need a lot more than private capital,” Glickman said. “They need infrastructure investment, they need to deal with crime, workforce training, and other strategies and dollars. Opportunity zones were always meant to stimulate that kind of holistic activity not just on a federal level, but on a state and local level.”

Erik Marks, a Seattle-based commercial real estate attorney and founder of Opportunity-Funds.com, a website that tracks opportunity zone funds and designated areas, said the executive order still does not address the current shortcomings and problems that are present from people trying to do opportunity zone deals now.

“I think the regulation may be useful, but this is not a problem-solving regulation,” Marks said. “I don’t know what his strategy is, but I think when there are opportunity zone successes, he has a clear opportunity to put himself and his Cabinet at the locations for the photo opportunity. I don’t mean to say that in a derogatory sense … This is to make sure [everyone knows] he’s still part of it.”

For the past year, the at-first unheralded Opportunity Zone program, passed last year as part of Trump’s $1.5 trillion Tax Cuts and Jobs Act, has flown under the mainstream radar.

The program’s goal is to generate economic development in the form of the redevelopment or the development of market-rate housing, affordable housing, new offices, retail buildings and businesses in these communities.

 

 

Read more on Bisnow

 

 

City passes plan for new SoMa homes

The San Francisco Board of Supervisors passed a sweeping, years-in-the-making plan to transform Central SoMa, potentially bringing thousands of new homes and tens of thousands of jobs to the area, and ending nearly a decade of wrangling over the ambitious package of zoning changes.

The city defines Central SoMa as the area south of Market Street, north of Townsend, and squeezed between Second and Sixth.

It’s a space that includes the San Francisco Museum of Modern Art (SFMOMA), swaths of low-income housing, nearly 30 landmark buildings, the Flower Mart, and, soon, a stretch of the Central Subway along Fourth Street.

The Central SoMa Plan changes zoning and height limits throughout the neighborhood to encourage more growth, more density, and more diversity of use in future development and redevelopment.

The final passage came as no surprise, after lawmakers unanimously voted in favor of the Central SoMa Plan the first time it came before the board in November.

But the ramifications of the proposal—which took eight years and ran over 1,600 pages in its final form—are so potentially profound as to generate an air of drama about the final vote all on their own.

 

 

Read more on Curbed SF

 

 

Bay Area blazes hit multifamily buildings

A late-night fire destroyed an under-development East Bay multifamily complex Monday night, hours after the San Francisco Fire Department got a fire in a downtown high-rise under control.

A West Oakland fire, which was first reported around 2 a.m. at West Grand Avenue and Filbert Street, burned six buildings under construction on the site — two that were near completion and four in early stages of construction, the San Francisco Chronicle reports. The project developer is City Ventures, which was planning 126 condos on the site.

Nearby residents were evacuated and power was cut off as a precautionary measure.

Another fire at a building on a construction site on the 3600 block of Peralta Street in the early morning hours was quickly extinguished, the Chronicle reports. The fire department is looking into the cause, which was deemed suspicious.

Monday evening, a 25-story building at 405 Davis Court in San Francisco’s Financial District caught fire, burning on the 12th through 16th floors.

No one was injured in the fire, which was first reported shortly after 5 p.m., according to the San Francisco Fire Department. While there were no injuries, multiple people had to be rescued. The cause of the fire is being investigated.

The fire burned for about 45 minutes.

 

 

Read more on Bisnow SF

 

 

 

SF considers ban on rent hikes for widows, widowers

Under existing state law, the death of a loved one may be followed by a mortal rent hike on a rent-controlled home.

On Tuesday, Supervisor Hillary Ronen announced that she will introduce a new law that would extend rent-control protections to bereaved family members—but only if California passes Proposition 10 in November.

Ronen’s office notes in a Tuesday press release:

As Costa Hawkins is currently written, landlords are free to raise the rent on a rent-controlled apartment to an unlimited amount when the “original occupant” no longer lives there.

The San Francisco Rent Ordinance is drafted to mirror that. So, any family members who were not original occupants—no matter how long they’ve lived in the home—are completely unprotected.

Ronen cites examples of Mission District residents who faced rent hikes of 300 to 700 percent after the deaths of their partners. She says that under the new legislation, which will be introduced at today’s Board of Supervisors meeting, the city would “extend the protections on rent-controlled units to spouses and family members” post-mortem.

Note that the announcement promises protections will extend to “nontraditional families” including domestic partners.

Under Ronen’s proposal, bereaved partners would only need to illustrate at least two years of occupancy to dodge a post-funeral rent hike.

 

 

Read more on Curbed SF

 

 

Bay Area tops U.S. in new office space, but lags in housing starts

 The Bay Area is a hot place to build cubicles, conference rooms, and office suites. But don’t look for as many hammers pounding out new homes, condos, and apartments.

The region is expected to open 18.2 million square feet of office space in 2018 — tops in the nation and more than New York City and Dallas combined — while home, condo and apartment building has grown only modestly.

More work space, more jobs and more people chasing a limited supply of homes is expected to add more steam to the pressure cooker of the Bay Area housing market.

“It’s encouraging that so many respected employers are investing in Bay Area jobs and immigration growth” said Carl Guardino, CEO of the business-backed Silicon Valley Leadership Group. “But we all recognize that jobs need a place to go home and sleep at night.”

The region created six times as many jobs as housing units between 2010 and 2015, according to a study by the leadership group and the Silicon Valley Community Foundation. The increased housing pressure has forced lower-income workers out of the region at much faster rates than higher paid workers, even as jobs go unfilled.

The run up in commercial development is led by major office openings in the South Bay, according to a survey from real estate data company Yardi Matrix. The big projects in 2018 include the official, complete opening of the 2.9 million square foot Apple Park in Cupertino, Park Tower at Transbay and The Exchange on 16th in San Francisco totaling 1.5 million square feet, and Facebook’s MPK 21, a half-million-square-foot campus designed by Frank Gehry in Menlo Park.

Other major developments underway include the Voyager property developed by Nvidia in Santa Clara, Microsoft and Google projects in Mountain View, the Stoneridge Mall Road project in Pleasanton, and Moffett Towers in Sunnyvale, according to Yardi Matrix.

The real estate data firm estimates that commercial openings in Santa Clara County are up 6.5 percent over the same period last year. The San Francisco and Oakland metro has seen three times as much commercial space open up this year compared to last year.

 

 

Read more on The Mercury News

 

 

NAI Northern California Represents $20.5M Sale of Developable Land in Downtown Redwood City

NAI Northern California, the Bay Area presence for NAI Global, the largest commercial real estate brokerage network in the world, is proud to announce the $20.5 million sale of 1180-90 Main Street in Redwood City.

Senior Investment Advisor Kevin Flaherty and Investment Advisor Derrick Reedy represented the seller, Lathrop PARC, LLC, on a lengthy and complicated escrow.

“This is the last piece of undeveloped land of any significance in downtown Redwood City and Premia Capital has a beautiful project they are planning to build. Premia was great to work with and they have a great team leading the charge for entitlements of the 110,000 sq. ft. office building, coming soon,” said Flaherty of NAI Northern California.

The 58,000 sq. ft. parcel of developable office property, in downtown Redwood City, has a 2.0 FAR for the office.

1180 Main Street is located at a key gateway bordering downtown and the El Camino Real corridor, and sits adjacent to the Caltrain corridor. The purposed office building will be designed and located with the intention to revitalize an existing culvert and to create a public park that will be an asset to both the occupants of the building as well as the general public. The outdoor space will be shared with the neighboring residential units.

Flaherty said, “This project will continue the expansion of Redwood City’s downtown office, retail and multi-family world-class real estate. We expect the leasing rate of the new building to rival all major metropolitan areas worldwide.”

About NAI Northern California

NAI Northern California is a full-service commercial real estate firm serving the Northern California Bay Area. Our team delivers technology-enabled commercial real estate services that create value for our clients, industry, and communities.

NAI Northern California is a partner of NAI Global, the largest commercial real estate brokerage network with more than 400 offices worldwide and over 7,000 professionals completing in excess of $20 billion in commercial real estate transactions globally.

Crane Watch update: More than 22,000 residential units have flooded into San Jose’s development pipeline

More than 22,000 new residential units have been proposed in the city of San Jose — the largest city in the housing-starved Bay Area — according to city records and Business Journal reporting over the past year.

Those number have been gathered over the past year and a half and detailed in the Silicon Valley Business Journal’s Crane Watch map, which is a compilation of every large development project that has arrived at the San Jose city hall.

When the Silicon Valley Business Journal’s Crane Watch map launched in 2017, it detailed 30 of the biggest projects in San Jose. But a little more than a year later, the number of projects we’re tracking has ballooned to 107 proposals. These include developments that are anywhere in the city’s development pipeline, from an early vision submitted to the city for feedback all the way to a recently completed structure.

Crane Watch shows industrial, office, residential, hotel, health care, education, retail and mixed-use proposals, and active projects that are 90,000 square feet in size or larger throughout the city of San Jose.

Read more on Silicon Valley Business Journal

 

 

 

More density and time for Brooklyn Basin development as proposed

With only 241 of the fully-entitled project’s 3,100 units of housing to rise on the Brooklyn Basin site along Oakland’s waterfront currently under construction, the Signature Development Group is now seeking approval to add another 600 apartments to the project’s total.

As proposed, the additional units could be “accommodated” within the building envelopes for the development as already approved, without any changes to heights, massings or setbacks. But if approved, the overall timeline to complete the Brooklyn Basin development, which was expected to be completed by 2029, would be extended to 2038.

In addition to the increased density, Signature’s proposed changes also include an additional 158 boat slips around the future Shoreline Park, a new water taxi loading dock, and the potential flexibility to shift the approved locations of the development’s five towers which are currently entitled to rise up to 240 feet apiece.

 

Read more on SocketSite