Brown Backs Controls On Treasure Island Rent
Rebecca Smith, Chronicle Staff Writer
Thursday, March 11, 1999
©1999 San Francisco Chronicle
San Francisco Mayor Willie Brown urged the Treasure Island Development Authority yesterday to follow the city's rent control law, even though it is exempt as a city agency.
The mayor asked board members to follow the ordinance voluntarily ``to provide additional security'' to renters in a tight housing market.
The exhortation followed a story in Saturday's Chronicle that explored the exemption of Treasure Island rentals from the ordinance and the uneasiness of tenants rights advocates with that waiver.
``I am determined to help ease the minds of San Francisco renters fearful of losing their homes through large monthly rent increases,'' Brown said. Extending rent control to the Treasure Island units ``will provide additional security to those who eventually move to the island,'' he said.
Brown appoints all the members of the development authority board. It is not known when it will take up his proposal.
In May, the development authority plans to begin the process of renting 766 refurbished two-, three-, and four-bedroom apartments on the former naval base at rents ranging from $1,560 to $2,160 a month. The property will be managed by John Stewart Co. under a long-term lease from the development authority and the Navy.
Among other things, the city's rent control ordinance caps rent hikes this year to 1.7 percent, based on the cost of living. It also prohibits evictions unless there is ``just cause,'' such as nonpayment of rent, and restricts owners' ability to evict and occupy units in multiunit buildings.
Units with rents set by government agencies are exempt from rent control under the city's 1979 law.
Tenants advocates reacted positively to news that the mayor is backing protections.
``The value of rent control isn't just that it caps rents, but that it gives tenants peace of mind they can't be dealt with unfairly,'' said Randy Shaw, an attorney who offers legal assistance to low-income tenants.
``This is very positive news.''
Shaw said rent control is worthwhile even for tenants leasing units from a benign landlord, as the city says it will be.
The development authority has said that it has no plans to raise rents, even though the prices are regarded as below market, especially in a city with a 1 percent vacancy rate.
Stewart Co., a subsidiary of Edison Capital and affiliate of Southern California Edison, recommended that Treasure Island rental rates be set at roughly 30 percent of the median monthly income for Bay Area households. The authority approved that rate schedule.
The company said it will be two years before all units are refurbished and leased. The city is expected to net $50 million from the housing during the next seven years. It is in talks with the Navy to obtain the deed to the island.