CONDOMINIUM CONVERSION LOTTERY BYPASS LEGISLATION – HELP US and JUST SAY YES!!!!
At the end of this post find a link to all of the San Francisco City Supervisors, call or email in support of this important legislation to secure their votes and help your fellow homeowners realize their real estate dreams.
The current introduced legislation by Supervisors Mark Farrell and Scott Weiner which would enable tenancy in common owners who qualified for the 2012 condominium lottery to bypass the lottery by paying a per unit fee starting at $4,000 and increasing on a sliding scale basis dependent upon the number of years the building has entered the lottery. The legislation includes tenant protections which provide any tenants in occupancy will receive lifetime leases. In order for the legislation to pass it will require six votes from the Board of Supervisors.
MY STORY: I regularly place new homeowners into TIC’s as an entry level purchase that is affordable in San Francisco. Most cannot afford condominiums, are overqualified for the BMR offerings and MOH programs and hope to convert their TIC to condominium as an equity building perk of their ownership. The current condominium lottery process hinders these property owners from furthering their real estate ownership dreams.
A consensus must occur within a TIC group to persue condominium conversion as well as a % share of cost for the persuit. TIC owners are hard working, middle income earners. It’s not cheap to own a TIC – when the typical down payment is atleast 20% of the sale price. When a 2-6 unit conversion can take upwards of 6+ years to convert it dashes hope and stifles the desire for ownership of the TIC, and passes along an arduous process to the next owner. TIC’s are a frequently transferred type of home, with re-sale typically within 3-5 years, as an owners’ life circumstances, job, finances change. TIC’s are the most basic purchase of 1st Time Home Buyers that stimulate the real estate sales community to trade-up upon re-sale.
Many of these owners purchase with the idea of living in the home as a “starter home” and also an investment. Many want to make a 2nd home purchase in San Francisco within a few years, turning the TIC into rental/income housing which adds to the rental stock. Allowing condo conversion to occur quickly and prudently, further secures the perimeter for these owners to make that transition, and building real estate portfolio health in San Francisco.
Making this small step toward allowing the basic rights and freedom of home owners to improve their asset in San Francisco and stimulate TIC and condominium real estate transfers for move-up purchase and possible use as income property in San Francisco is good for its’ prospective and current TIC owners, the rental market, and just plain good business.
Click, Call or Email with your support as YES! for this important Condo Conversion ByPass Legislation: http://www.plancsf.org/contact-city-hall/
Thank You, Erika Burke, Realtor, Top Producer 415.321.7076 [email protected]