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"content": "\u003cp>2024 was a slow year for the housing market.\u003c/p>\n\u003cp>Interest rates remained high, and despite cuts from the Federal Reserve, \u003ca href=\"https://www.kqed.org/news/12001621/interest-rate-cuts-wont-necessarily-help-bay-areas-notorious-housing-market\">mortgage rates haven’t responded\u003c/a>. That meant that more people opted to either continue renting or hold off on buying or selling a home in an uncertain and expensive market.\u003c/p>\n\u003cp>\u003ca href=\"https://www.nar.realtor/newsroom/in-the-news/do-elections-affect-the-housing-market-heres-what-experts-say-the-motley-fool\">Election years have historically meant that people wait to see\u003c/a> what happens before making a move, and 2024 was no exception. So, what does that mean for the housing market for 2025?\u003c/p>\n\u003cp>Housing experts aren’t sure yet. And as President-elect Donald Trump enters the White House, it’s not clear how his promises on the campaign trail to deport \u003ca href=\"https://www.kqed.org/news/12016037/california-is-a-sanctuary-state-how-much-protection-will-that-give-immigrants-from-trumps-deportation-plans\">undocumented immigrants en masse\u003c/a> and \u003ca href=\"https://www.npr.org/2024/12/20/g-s1-39118/trump-tariffs-free-trade-republicans-gop-ideology-china-europe\">impose more tariffs\u003c/a> could impact housing construction and mortgage rates.\u003c/p>\n\u003cp>“That’s the trillion dollar question,” said Steven Huang, president of the San Francisco Association of Realtors. “Some of his policies indicate that inflation will go back up and therefore interest rates will not be cut, or perhaps go up.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“On the other hand,” Huang continued, “the new president comes from the real estate industry and understands how crucial interest rates are for home buying.”\u003c/p>\n\u003cp>Amid all this uncertainty, here’s what we know — and what experts predict — for the housing market in 2025.\u003c/p>\n\u003ch2>Renters and landlords should expect more of the same in 2025\u003c/h2>\n\u003cp>According to experts, the future for Bay Area renters is looking fairly \u003ca href=\"https://www.politico.eu/article/boomers-internet-slang-gen-z-politics-mid-rizz-pick-me-vibes-simp/#:~:text=Mid:%20Saying%20something%20is%20%E2%80%9Cmid,to%20any%20huge%20world%20event.\">mid\u003c/a> — to put it in the parlance of Gen Z’ers.\u003c/p>\n\u003cp>While apartments in San Francisco and San Jose remain \u003ca href=\"https://www.zumper.com/#rent-report\">some of the most expensive \u003c/a>in the country, rents have steadied and even declined in cities like \u003ca href=\"https://www.sfchronicle.com/eastbay/article/apartment-rent-sf-oakland-19920159.php\">Oakland\u003c/a> and \u003ca href=\"https://www.redfin.com/news/college-grad-rent-burden-2024/\">Sacramento\u003c/a>, though not as steeply as in other parts of the country.\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">[aside label='Related Coverage' tag='housing']\u003c/span>\u003c/p>\n\u003cp>Nationwide, the \u003ca href=\"https://www.rent.com/research/average-rent-price-report/\">median asking rent dropped a little less than 1%\u003c/a> from Nov. 2023 to a year later. Some cities, including \u003ca href=\"https://www.pbs.org/newshour/economy/biggest-apartment-construction-boom-in-decades-likely-to-bring-renters-uneven-relief\">Austin, Nashville, Tampa\u003c/a> and \u003ca href=\"https://www.rentcafe.com/blog/rental-market/market-snapshots/new-apartment-construction/\">Raleigh,\u003c/a> saw a surge in apartment and condo construction between 2021 and 2023, which caused rents to drop as much as 12% as supply met demand.\u003c/p>\n\u003cp>But the Bay Area marches to the beat of its own drum. Igor Popov, chief economist for Apartment List, an online rental website, said construction locally has been slow, and there’s no sign of it picking up soon. Demand remains high, which means rent prices won’t fall much until more supply is added.\u003c/p>\n\u003cp>“The Bay Area has never been one for massive waves of construction, and it probably doesn’t surprise anyone that the Bay Area is also sitting out this wave,” he said.\u003c/p>\n\u003cp>What’s more, Popov said, the 2020 economy allowed many \u003ca href=\"https://www.kqed.org/news/11909141/sf-lost-more-than-116000-residents-during-pandemics-first-year\">high-income renters to leave the region\u003c/a> while working remotely — or, as he puts it, “untether from the Bay Area housing market, but stay attached to the Bay Area labor market.” That helped cool the market slightly, but not significantly.\u003c/p>\n\u003ch2>What about a ‘housing market crash’?\u003c/h2>\n\u003cp>While Popov and other analysts expect rent trends to stay largely steady in 2025, the Trump administration brings some uncertainty to how stable the country’s economy will be. \u003ca href=\"https://www.lendingtree.com/home/mortgage/housing-market-crash-risk-survey/\">A recent survey from mortgage broker LendingTree\u003c/a> found that 38% of consumers think the housing market is at risk of crashing under Trump.\u003c/p>\n\u003cp>That same survey found that more than a third of Americans actually want the housing market to crash because it might make home prices more affordable. But experts say a market crash could also lead to higher unemployment rates and stricter rules around lending.\u003c/p>\n\u003cp>Other experts are looking more favorably towards the future. Jonas Bordo, CEO of online rental marketplace Dwellsy, said 2025 could be a “goldilocks market” for landlords and renters as rents rise a little bit, but not too much.\u003c/p>\n\u003cp>“Renters won’t see increases as big compared to the increases they’ve seen in the past,” Bordo said. “Landlords will get a little bit of an increase in order to defray some of the additional costs that they’re facing. So, hopefully, it’s a reasonable balance.”\u003c/p>\n\u003cp>However, landlords will face a new set of rules in 2025 around how they \u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240ab2801\">handle security deposits\u003c/a> and \u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240ab2747\">report their tenants’ rent payments\u003c/a> to credit bureaus. Bordo said more regulations will make it harder for smaller landlords to stay compliant with the evolving laws.\u003c/p>\n\u003cp>“Most landlords in this state are not big, fancy companies that have lawyers and legal teams that can help keep them legal,” he said. “It is incredibly difficult to stay compliant, even for large companies.”\u003c/p>\n\u003cfigure id=\"attachment_12006179\" class=\"wp-caption alignnone\" style=\"max-width: 1999px\">\u003ca href=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed.jpg\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-12006179 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed.jpg\" alt=\"\" width=\"1999\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed.jpg 1999w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A ‘For Rent’ sign hangs in the window of an apartment building in San Francisco. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2>Homebuyers and sellers might be more ‘locked in’ with an uncertain political climate\u003c/h2>\n\u003cp>For homebuyers and sellers, the outlook appears more turbulent in the new year, according to Huang. He is seeing the “locked-in effect” play out as many property owners — who are enjoying low mortgage rates from pandemic-era interest rate cuts — hold off on moving while rates remain high.\u003c/p>\n\u003cp>The only people who are making moves to buy or sell are the people who have to, Huang said: “Whether they’re having kids or getting married — they just have to make a life decision” about moving to a new home.\u003c/p>\n\u003cp>“But until we see mortgage rates go down to perhaps 5% or less, we’re not going to see much sales volume,” he said.\u003c/p>\n\u003cp>Even as offices begin to call workers back into the office, Huang expects those employees looking to live closer to work to decide to rent instead of buy. While some major Bay Area employers, including \u003ca href=\"https://sfstandard.com/2024/07/17/salesforce-pressures-its-workers-back-to-the-office-as-layoffs-continue/\">Salesforce\u003c/a> and \u003ca href=\"https://fortune.com/2024/05/08/uber-ceo-dara-khosrowshahi-wants-more-workers-to-return-to-the-office/\">Uber\u003c/a>, have rolled back pandemic-era work-from-home policies, others have been slow to force employees back to city centers.\u003c/p>\n\u003cp>During the pandemic, many of those workers moved to the East Bay in search of affordable housing and more space. Because of that, cities like \u003ca href=\"https://www.sfgate.com/local/article/dublin-fastest-growing-california-city-17789467.php\">Dublin and Brentwood\u003c/a> saw high population growth. David Stark, a spokesperson for the Bay East Association of Realtors, said even though home prices in those cities are starting to rise, people still want to be homeowners.\u003c/p>\n\u003cp>“These other, much larger, fundamental issues of supply and demand are really driving the market conditions,” he said. “Where the rubber meets the road, people still want to be homeowners, particularly in the East Bay.”\u003c/p>\n\u003ch2>What other housing questions do you have for KQED?\u003c/h2>\n\u003cp>Housing is one of the most crucial — and contentious — issues in the Bay Area, and here at KQED, we have a whole team dedicated to exploring \u003ca href=\"https://www.kqed.org/housing\">stories about housing affordability\u003c/a>.\u003c/p>\n\u003cp>As part of our work, we also want to bring you explainers and guides about housing in the region, offering practical advice and insight for renters, homeowners and unhoused folks on a wide range of housing situations. We also want you to send us your story ideas and tips, share your personal experience with housing in the Bay Area or volunteer to be one of the KQED readers and listeners we consult about housing stories.\u003c/p>\n\u003cp>\u003cstrong>So tell us: What housing question should we answer next?\u003c/strong>\u003c/p>\n\u003cp>You can use the comment box below to submit your question about housing in the Bay Area or California more widely. Or, maybe there’s a housing program you want explained or investigated. Whatever’s on your mind, use the Google Form below to talk to us. The information you provide here will be shared with the folks who work on KQED’s housing coverage, and we may follow up with you directly through the contact details you provide. (We’ll never share your information outside of KQED without your permission.) We won’t be able to reply to everyone who submits a question, but what you tell us will make our reporting stronger on KQED.org, KQED Public Radio and our social media channels.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>https://docs.google.com/forms/d/e/1FAIpQLSfZ-ZKtuSHdeWqxooQwfEcr-oiOpdpJcf2RLZInU7aqjjQlRQ/viewform?embedded=true\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>2024 was a slow year for the housing market.\u003c/p>\n\u003cp>Interest rates remained high, and despite cuts from the Federal Reserve, \u003ca href=\"https://www.kqed.org/news/12001621/interest-rate-cuts-wont-necessarily-help-bay-areas-notorious-housing-market\">mortgage rates haven’t responded\u003c/a>. That meant that more people opted to either continue renting or hold off on buying or selling a home in an uncertain and expensive market.\u003c/p>\n\u003cp>\u003ca href=\"https://www.nar.realtor/newsroom/in-the-news/do-elections-affect-the-housing-market-heres-what-experts-say-the-motley-fool\">Election years have historically meant that people wait to see\u003c/a> what happens before making a move, and 2024 was no exception. So, what does that mean for the housing market for 2025?\u003c/p>\n\u003cp>Housing experts aren’t sure yet. And as President-elect Donald Trump enters the White House, it’s not clear how his promises on the campaign trail to deport \u003ca href=\"https://www.kqed.org/news/12016037/california-is-a-sanctuary-state-how-much-protection-will-that-give-immigrants-from-trumps-deportation-plans\">undocumented immigrants en masse\u003c/a> and \u003ca href=\"https://www.npr.org/2024/12/20/g-s1-39118/trump-tariffs-free-trade-republicans-gop-ideology-china-europe\">impose more tariffs\u003c/a> could impact housing construction and mortgage rates.\u003c/p>\n\u003cp>“That’s the trillion dollar question,” said Steven Huang, president of the San Francisco Association of Realtors. “Some of his policies indicate that inflation will go back up and therefore interest rates will not be cut, or perhaps go up.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“On the other hand,” Huang continued, “the new president comes from the real estate industry and understands how crucial interest rates are for home buying.”\u003c/p>\n\u003cp>Amid all this uncertainty, here’s what we know — and what experts predict — for the housing market in 2025.\u003c/p>\n\u003ch2>Renters and landlords should expect more of the same in 2025\u003c/h2>\n\u003cp>According to experts, the future for Bay Area renters is looking fairly \u003ca href=\"https://www.politico.eu/article/boomers-internet-slang-gen-z-politics-mid-rizz-pick-me-vibes-simp/#:~:text=Mid:%20Saying%20something%20is%20%E2%80%9Cmid,to%20any%20huge%20world%20event.\">mid\u003c/a> — to put it in the parlance of Gen Z’ers.\u003c/p>\n\u003cp>While apartments in San Francisco and San Jose remain \u003ca href=\"https://www.zumper.com/#rent-report\">some of the most expensive \u003c/a>in the country, rents have steadied and even declined in cities like \u003ca href=\"https://www.sfchronicle.com/eastbay/article/apartment-rent-sf-oakland-19920159.php\">Oakland\u003c/a> and \u003ca href=\"https://www.redfin.com/news/college-grad-rent-burden-2024/\">Sacramento\u003c/a>, though not as steeply as in other parts of the country.\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/span>\u003c/p>\n\u003cp>Nationwide, the \u003ca href=\"https://www.rent.com/research/average-rent-price-report/\">median asking rent dropped a little less than 1%\u003c/a> from Nov. 2023 to a year later. Some cities, including \u003ca href=\"https://www.pbs.org/newshour/economy/biggest-apartment-construction-boom-in-decades-likely-to-bring-renters-uneven-relief\">Austin, Nashville, Tampa\u003c/a> and \u003ca href=\"https://www.rentcafe.com/blog/rental-market/market-snapshots/new-apartment-construction/\">Raleigh,\u003c/a> saw a surge in apartment and condo construction between 2021 and 2023, which caused rents to drop as much as 12% as supply met demand.\u003c/p>\n\u003cp>But the Bay Area marches to the beat of its own drum. Igor Popov, chief economist for Apartment List, an online rental website, said construction locally has been slow, and there’s no sign of it picking up soon. Demand remains high, which means rent prices won’t fall much until more supply is added.\u003c/p>\n\u003cp>“The Bay Area has never been one for massive waves of construction, and it probably doesn’t surprise anyone that the Bay Area is also sitting out this wave,” he said.\u003c/p>\n\u003cp>What’s more, Popov said, the 2020 economy allowed many \u003ca href=\"https://www.kqed.org/news/11909141/sf-lost-more-than-116000-residents-during-pandemics-first-year\">high-income renters to leave the region\u003c/a> while working remotely — or, as he puts it, “untether from the Bay Area housing market, but stay attached to the Bay Area labor market.” That helped cool the market slightly, but not significantly.\u003c/p>\n\u003ch2>What about a ‘housing market crash’?\u003c/h2>\n\u003cp>While Popov and other analysts expect rent trends to stay largely steady in 2025, the Trump administration brings some uncertainty to how stable the country’s economy will be. \u003ca href=\"https://www.lendingtree.com/home/mortgage/housing-market-crash-risk-survey/\">A recent survey from mortgage broker LendingTree\u003c/a> found that 38% of consumers think the housing market is at risk of crashing under Trump.\u003c/p>\n\u003cp>That same survey found that more than a third of Americans actually want the housing market to crash because it might make home prices more affordable. But experts say a market crash could also lead to higher unemployment rates and stricter rules around lending.\u003c/p>\n\u003cp>Other experts are looking more favorably towards the future. Jonas Bordo, CEO of online rental marketplace Dwellsy, said 2025 could be a “goldilocks market” for landlords and renters as rents rise a little bit, but not too much.\u003c/p>\n\u003cp>“Renters won’t see increases as big compared to the increases they’ve seen in the past,” Bordo said. “Landlords will get a little bit of an increase in order to defray some of the additional costs that they’re facing. So, hopefully, it’s a reasonable balance.”\u003c/p>\n\u003cp>However, landlords will face a new set of rules in 2025 around how they \u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240ab2801\">handle security deposits\u003c/a> and \u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240ab2747\">report their tenants’ rent payments\u003c/a> to credit bureaus. Bordo said more regulations will make it harder for smaller landlords to stay compliant with the evolving laws.\u003c/p>\n\u003cp>“Most landlords in this state are not big, fancy companies that have lawyers and legal teams that can help keep them legal,” he said. “It is incredibly difficult to stay compliant, even for large companies.”\u003c/p>\n\u003cfigure id=\"attachment_12006179\" class=\"wp-caption alignnone\" style=\"max-width: 1999px\">\u003ca href=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed.jpg\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-12006179 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed.jpg\" alt=\"\" width=\"1999\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed.jpg 1999w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">A ‘For Rent’ sign hangs in the window of an apartment building in San Francisco. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2>Homebuyers and sellers might be more ‘locked in’ with an uncertain political climate\u003c/h2>\n\u003cp>For homebuyers and sellers, the outlook appears more turbulent in the new year, according to Huang. He is seeing the “locked-in effect” play out as many property owners — who are enjoying low mortgage rates from pandemic-era interest rate cuts — hold off on moving while rates remain high.\u003c/p>\n\u003cp>The only people who are making moves to buy or sell are the people who have to, Huang said: “Whether they’re having kids or getting married — they just have to make a life decision” about moving to a new home.\u003c/p>\n\u003cp>“But until we see mortgage rates go down to perhaps 5% or less, we’re not going to see much sales volume,” he said.\u003c/p>\n\u003cp>Even as offices begin to call workers back into the office, Huang expects those employees looking to live closer to work to decide to rent instead of buy. While some major Bay Area employers, including \u003ca href=\"https://sfstandard.com/2024/07/17/salesforce-pressures-its-workers-back-to-the-office-as-layoffs-continue/\">Salesforce\u003c/a> and \u003ca href=\"https://fortune.com/2024/05/08/uber-ceo-dara-khosrowshahi-wants-more-workers-to-return-to-the-office/\">Uber\u003c/a>, have rolled back pandemic-era work-from-home policies, others have been slow to force employees back to city centers.\u003c/p>\n\u003cp>During the pandemic, many of those workers moved to the East Bay in search of affordable housing and more space. Because of that, cities like \u003ca href=\"https://www.sfgate.com/local/article/dublin-fastest-growing-california-city-17789467.php\">Dublin and Brentwood\u003c/a> saw high population growth. David Stark, a spokesperson for the Bay East Association of Realtors, said even though home prices in those cities are starting to rise, people still want to be homeowners.\u003c/p>\n\u003cp>“These other, much larger, fundamental issues of supply and demand are really driving the market conditions,” he said. “Where the rubber meets the road, people still want to be homeowners, particularly in the East Bay.”\u003c/p>\n\u003ch2>What other housing questions do you have for KQED?\u003c/h2>\n\u003cp>Housing is one of the most crucial — and contentious — issues in the Bay Area, and here at KQED, we have a whole team dedicated to exploring \u003ca href=\"https://www.kqed.org/housing\">stories about housing affordability\u003c/a>.\u003c/p>\n\u003cp>As part of our work, we also want to bring you explainers and guides about housing in the region, offering practical advice and insight for renters, homeowners and unhoused folks on a wide range of housing situations. We also want you to send us your story ideas and tips, share your personal experience with housing in the Bay Area or volunteer to be one of the KQED readers and listeners we consult about housing stories.\u003c/p>\n\u003cp>\u003cstrong>So tell us: What housing question should we answer next?\u003c/strong>\u003c/p>\n\u003cp>You can use the comment box below to submit your question about housing in the Bay Area or California more widely. Or, maybe there’s a housing program you want explained or investigated. Whatever’s on your mind, use the Google Form below to talk to us. The information you provide here will be shared with the folks who work on KQED’s housing coverage, and we may follow up with you directly through the contact details you provide. (We’ll never share your information outside of KQED without your permission.) We won’t be able to reply to everyone who submits a question, but what you tell us will make our reporting stronger on KQED.org, KQED Public Radio and our social media channels.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"title": "San Francisco Developer Unveils Plans for New 22-Story Ocean Beach Project",
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"content": "\u003cp>A new developer has turned its attention to \u003ca href=\"https://www.kqed.org/news/tag/san-francisco\">San Francisco’s\u003c/a> Ocean Beach just months after a proposal to construct a 50-story apartment building on the 2700 Sloat Boulevard site was withdrawn.\u003c/p>\n\u003cp>The initial proposal was met with vehement pushback by Sunset District residents and local officials. It was slammed for its scale and density. Eventually, the developer, CH Planning LLC, withdrew its name from consideration.\u003c/p>\n\u003cp>Now, the San Francisco Housing Development Corporation has partnered with Housing America to submit an application on Tuesday for a 22-story, mixed-income building with senior housing.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The proposal envisions a 446-unit building spanning approximately 38,000 square feet, complete with a parking lot designed to accommodate both bicycles and cars. About half of the units, which range from studio apartments to condominiums, would be set aside as affordable senior housing.\u003c/p>\n\u003cp>The planning application estimates construction costs at $223 million and includes plans for amenities such as over 4,000 square feet of shared common spaces, electric vehicle charging stations, and both public and private parking.\u003c/p>\n\u003cfigure id=\"attachment_12018944\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12018944\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/OceanTowerRendering1.jpg\" alt=\"\" width=\"2000\" height=\"1125\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/OceanTowerRendering1.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/OceanTowerRendering1-800x450.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/OceanTowerRendering1-1020x574.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/OceanTowerRendering1-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/OceanTowerRendering1-1536x864.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/OceanTowerRendering1-1920x1080.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A rendering of the proposed development at 2700 Sloat Blvd. \u003ccite>(Courtesy of SCB and Bezier)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The building would appear to be somewhat split in two, according to Dan Sider, chief of staff of the city’s planning department. He described two conjoined buildings that form a cohesive structure, with one building facing the ocean and the other on a slight slant, facing the East.\u003c/p>\n\u003cp>Although CH Planning still legally owns the site, its manager, Raelynn Hickey, said that the company is in the process of selling to the new developers.\u003c/p>\n\u003cp>“We have nothing to do with their proposed project,” Hickey said in a written statement.\u003c/p>\n\u003cp>The new developers have submitted their application under state law AB 2011, which streamlines certain regulatory requirements typically required for development projects, such as full environmental reviews and prior approval from the planning commission.\u003c/p>\n\u003cp>[aside postID=news_12018466 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/20241217-UnhousedDemonstrations-JY-054-1020x679.jpg']\u003c/p>\n\u003cp>While the developers claim that the proposed project “exceeds” AB 2011’s standards, the application is still under review to determine if it qualifies for the expedited approval process granted by the law.\u003c/p>\n\u003cp>Sider noted that the proposal “hasn’t yet been assessed for Code compliance, but we remain hopeful that the project will be thoughtfully designed and adhere to all regulations.” He added that the location “has always been an ideal spot for new housing.”\u003c/p>\n\u003cp>The original plan for a 50-story, 712-unit high-rise was met with fierce opposition from city planners, residents and \u003ca href=\"https://www.kqed.org/news/tag/joel-engardio\">Supervisor Joel Engardio\u003c/a>, who represents the Sunset District, where the site is located.\u003c/p>\n\u003cp>Engardio called the initial proposal a “middle finger to the city” and dismissed it as a plan “no one would take seriously.”\u003c/p>\n\u003cp>Although the new proposal significantly reduces the building’s height, with only 22 stories, Engardio remains critical.\u003c/p>\n\u003cp>“Twenty-two stories is still far beyond what’s reasonable,” he said in an interview. “We need to stop dreaming up massive skyscrapers at the beach and focus on real housing that will meet the needs of real families.”\u003c/p>\n\u003cp>Engardio pointed out that the Coastal Commission will need to weigh in on the project and criticized the developers for not adhering to the Sunset District’s current zoning laws, which limit building heights to 10 stories.\u003c/p>\n\u003cp>“We need more housing for seniors and families in the Sunset and throughout San Francisco,” Engardio said. “But no one wants Ocean Beach to turn into Miami Beach.”\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The proposal envisions a 446-unit building spanning approximately 38,000 square feet, complete with a parking lot designed to accommodate both bicycles and cars. About half of the units, which range from studio apartments to condominiums, would be set aside as affordable senior housing.\u003c/p>\n\u003cp>The planning application estimates construction costs at $223 million and includes plans for amenities such as over 4,000 square feet of shared common spaces, electric vehicle charging stations, and both public and private parking.\u003c/p>\n\u003cfigure id=\"attachment_12018944\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12018944\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/OceanTowerRendering1.jpg\" alt=\"\" width=\"2000\" height=\"1125\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/OceanTowerRendering1.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/OceanTowerRendering1-800x450.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/OceanTowerRendering1-1020x574.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/OceanTowerRendering1-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/OceanTowerRendering1-1536x864.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/OceanTowerRendering1-1920x1080.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A rendering of the proposed development at 2700 Sloat Blvd. \u003ccite>(Courtesy of SCB and Bezier)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The building would appear to be somewhat split in two, according to Dan Sider, chief of staff of the city’s planning department. He described two conjoined buildings that form a cohesive structure, with one building facing the ocean and the other on a slight slant, facing the East.\u003c/p>\n\u003cp>Although CH Planning still legally owns the site, its manager, Raelynn Hickey, said that the company is in the process of selling to the new developers.\u003c/p>\n\u003cp>“We have nothing to do with their proposed project,” Hickey said in a written statement.\u003c/p>\n\u003cp>The new developers have submitted their application under state law AB 2011, which streamlines certain regulatory requirements typically required for development projects, such as full environmental reviews and prior approval from the planning commission.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>While the developers claim that the proposed project “exceeds” AB 2011’s standards, the application is still under review to determine if it qualifies for the expedited approval process granted by the law.\u003c/p>\n\u003cp>Sider noted that the proposal “hasn’t yet been assessed for Code compliance, but we remain hopeful that the project will be thoughtfully designed and adhere to all regulations.” He added that the location “has always been an ideal spot for new housing.”\u003c/p>\n\u003cp>The original plan for a 50-story, 712-unit high-rise was met with fierce opposition from city planners, residents and \u003ca href=\"https://www.kqed.org/news/tag/joel-engardio\">Supervisor Joel Engardio\u003c/a>, who represents the Sunset District, where the site is located.\u003c/p>\n\u003cp>Engardio called the initial proposal a “middle finger to the city” and dismissed it as a plan “no one would take seriously.”\u003c/p>\n\u003cp>Although the new proposal significantly reduces the building’s height, with only 22 stories, Engardio remains critical.\u003c/p>\n\u003cp>“Twenty-two stories is still far beyond what’s reasonable,” he said in an interview. “We need to stop dreaming up massive skyscrapers at the beach and focus on real housing that will meet the needs of real families.”\u003c/p>\n\u003cp>Engardio pointed out that the Coastal Commission will need to weigh in on the project and criticized the developers for not adhering to the Sunset District’s current zoning laws, which limit building heights to 10 stories.\u003c/p>\n\u003cp>“We need more housing for seniors and families in the Sunset and throughout San Francisco,” Engardio said. “But no one wants Ocean Beach to turn into Miami Beach.”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"content": "\u003cp>Groups of homeless rights advocates gathered at city halls across California and Washington state on Tuesday to protest the \u003ca href=\"https://www.kqed.org/news/12006541/sfs-homeless-sweeps-have-cleared-over-1200-tents-where-are-people-going\">rise in encampment sweeps\u003c/a> that followed a U.S. Supreme Court decision over the summer.\u003c/p>\n\u003cp>The coordinated demonstrations in San Francisco, Oakland, Vallejo, Fresno, Los Angeles and Seattle, hosted by advocacy groups Poor Magazine and Wood Street Commons, called on city leaders to stop the sweeps and instead focus on building more housing.\u003c/p>\n\u003cp>“What we’re dealing with right now is a way to criminalize people who are dealing with poverty, who are not able to afford rent,” homeless rights advocate Junebug Kealoha said outside San Francisco City Hall. “When someone is constantly swept, they are just shuffled and things get taken — it’s hard to stay on top of anything.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The demonstrations came roughly half a year after a June \u003ca href=\"https://www.kqed.org/news/11991340/supreme-court-says-laws-criminalizing-homeless-camping-do-not-violate-constitution\">Supreme Court ruling\u003c/a> expanded local governments’ authority to fine and jail people for sleeping outside, even if no shelter is available. About a month later, \u003ca href=\"https://www.kqed.org/news/11997352/newsom-orders-state-agencies-to-dismantle-homeless-encampments-across-california\">Gov. Gavin Newsom responded\u003c/a> by directing state agencies to crack down on encampments and urging local governments to do the same.\u003c/p>\n\u003cp>\u003ca href=\"https://www.kqed.org/news/12005898/fresno-rolls-out-one-of-californias-most-aggressive-camping-bans\">Fresno\u003c/a>, \u003ca href=\"https://www.kqed.org/news/12004348/berkeley-moves-to-expand-homeless-encampment-sweeps-in-more-aggressive-approach\">Berkeley\u003c/a> and a host of other cities implemented new rules, making it easier for local governments to clear sidewalk camps. In other cities, such as \u003ca href=\"https://www.kqed.org/news/11996234/sf-mayor-says-very-aggressive-encampment-sweeps-will-start-in-august\">San Francisco\u003c/a>, officials more aggressively enforced anti-camping laws already on the books.\u003c/p>\n\u003cfigure id=\"attachment_12018728\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12018728\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/20241217-UnhousedDemonstrations-JY-155.jpg\" alt=\"\" width=\"2000\" height=\"1332\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/20241217-UnhousedDemonstrations-JY-155.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/20241217-UnhousedDemonstrations-JY-155-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/20241217-UnhousedDemonstrations-JY-155-1020x679.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/20241217-UnhousedDemonstrations-JY-155-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/20241217-UnhousedDemonstrations-JY-155-1536x1023.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/20241217-UnhousedDemonstrations-JY-155-1920x1279.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Alvaro Tellez, a traditional Aztec dancer and Homefulness resident, attends a demonstration against the rise in encampment sweeps in front of City Hall in San Francisco on Tuesday, Dec. 17, 2024. \u003ccite>(Juliana Yamada/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>On Tuesday, demonstrators in San Francisco held signs saying “Make Housing A Human Right” and set up tents with the words “Where do we go?” painted in bright colors. As the wet, cold winter season starts, homeless rights advocates say they want cities to at least pause encampment sweeps.\u003c/p>\n\u003cp>“All we’re trying to do is get away from the elements, away from the rain and the winter,” said Miguel Muteado Silencio, a homeless rights advocate with experience living on the streets. “It’s sad that in places like San Francisco and Oakland, during the harshest time, when the most vulnerable people are having a hard time, they’re being swept up, and their belongings are being taken away.”\u003c/p>\n\u003cp>According to San Francisco’s Department of Emergency Management, city workers removed \u003ca href=\"https://www.kqed.org/news/12015125/tentless-amid-encampment-crackdown-unhoused-san-franciscans-storms\">more than 2,400 tents and structures\u003c/a> from city streets between Aug. 1 and Nov. 17.\u003c/p>\n\u003cp>[aside postID=news_12015125 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2024/11/241119-SFHomelessArrests-02-BL-1020x680.jpg']\u003c/p>\n\u003cp>Frank Noto, president of the San Francisco nonprofit Stop Crime Action, understands that housing is the ultimate, long-term solution to homelessness but said encampment sweeps should be part of the solution in the short term. “We can’t create supportive housing in a short period of time,” he said. “So, we try to muddle through, and we’re seeing a bunch of imperfect solutions.”\u003c/p>\n\u003cp>However, unhoused residents at Tuesday’s demonstration said they are worried about their future in the Bay Area as cities impose stricter rules.\u003c/p>\n\u003cp>In San Francisco earlier this month, policymakers capped the amount of time families could stay in city shelters, reducing the time from six months to 90 days.\u003c/p>\n\u003cp>And this month, supervisors reversed a policy change approved by city \u003ca href=\"https://www.kqed.org/news/12007425/san-francisco-bans-overnight-parking-for-rvs-on-most-city-streets\">transportation officials in October\u003c/a> that allowed oversized vehicles to be towed if the people living inside them reject offers of shelter, housing or services. The \u003ca href=\"https://www.kqed.org/news/12017544/sf-supes-reverse-citys-controversial-rv-parking-ban\">San Francisco Board of Supervisors rejected those restrictions\u003c/a> after receiving letters and appeals from homeless rights advocates and people living in RVs.\u003c/p>\n\u003cp>Maks Doulton, 63, was just placed in temporary subsidized housing a few months ago after living on San Francisco’s streets for a year. Though she has a roof over her head now, she fears she’ll become homeless again when her subsidy ends.\u003c/p>\n\u003cp>“What happens to me in a year?” she asked. “I won’t be able to afford rent in a year either — then what?”\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Groups of homeless rights advocates gathered at city halls across California and Washington state on Tuesday to protest the \u003ca href=\"https://www.kqed.org/news/12006541/sfs-homeless-sweeps-have-cleared-over-1200-tents-where-are-people-going\">rise in encampment sweeps\u003c/a> that followed a U.S. Supreme Court decision over the summer.\u003c/p>\n\u003cp>The coordinated demonstrations in San Francisco, Oakland, Vallejo, Fresno, Los Angeles and Seattle, hosted by advocacy groups Poor Magazine and Wood Street Commons, called on city leaders to stop the sweeps and instead focus on building more housing.\u003c/p>\n\u003cp>“What we’re dealing with right now is a way to criminalize people who are dealing with poverty, who are not able to afford rent,” homeless rights advocate Junebug Kealoha said outside San Francisco City Hall. “When someone is constantly swept, they are just shuffled and things get taken — it’s hard to stay on top of anything.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The demonstrations came roughly half a year after a June \u003ca href=\"https://www.kqed.org/news/11991340/supreme-court-says-laws-criminalizing-homeless-camping-do-not-violate-constitution\">Supreme Court ruling\u003c/a> expanded local governments’ authority to fine and jail people for sleeping outside, even if no shelter is available. About a month later, \u003ca href=\"https://www.kqed.org/news/11997352/newsom-orders-state-agencies-to-dismantle-homeless-encampments-across-california\">Gov. Gavin Newsom responded\u003c/a> by directing state agencies to crack down on encampments and urging local governments to do the same.\u003c/p>\n\u003cp>\u003ca href=\"https://www.kqed.org/news/12005898/fresno-rolls-out-one-of-californias-most-aggressive-camping-bans\">Fresno\u003c/a>, \u003ca href=\"https://www.kqed.org/news/12004348/berkeley-moves-to-expand-homeless-encampment-sweeps-in-more-aggressive-approach\">Berkeley\u003c/a> and a host of other cities implemented new rules, making it easier for local governments to clear sidewalk camps. In other cities, such as \u003ca href=\"https://www.kqed.org/news/11996234/sf-mayor-says-very-aggressive-encampment-sweeps-will-start-in-august\">San Francisco\u003c/a>, officials more aggressively enforced anti-camping laws already on the books.\u003c/p>\n\u003cfigure id=\"attachment_12018728\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12018728\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/20241217-UnhousedDemonstrations-JY-155.jpg\" alt=\"\" width=\"2000\" height=\"1332\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/20241217-UnhousedDemonstrations-JY-155.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/20241217-UnhousedDemonstrations-JY-155-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/20241217-UnhousedDemonstrations-JY-155-1020x679.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/20241217-UnhousedDemonstrations-JY-155-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/20241217-UnhousedDemonstrations-JY-155-1536x1023.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/20241217-UnhousedDemonstrations-JY-155-1920x1279.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Alvaro Tellez, a traditional Aztec dancer and Homefulness resident, attends a demonstration against the rise in encampment sweeps in front of City Hall in San Francisco on Tuesday, Dec. 17, 2024. \u003ccite>(Juliana Yamada/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>On Tuesday, demonstrators in San Francisco held signs saying “Make Housing A Human Right” and set up tents with the words “Where do we go?” painted in bright colors. As the wet, cold winter season starts, homeless rights advocates say they want cities to at least pause encampment sweeps.\u003c/p>\n\u003cp>“All we’re trying to do is get away from the elements, away from the rain and the winter,” said Miguel Muteado Silencio, a homeless rights advocate with experience living on the streets. “It’s sad that in places like San Francisco and Oakland, during the harshest time, when the most vulnerable people are having a hard time, they’re being swept up, and their belongings are being taken away.”\u003c/p>\n\u003cp>According to San Francisco’s Department of Emergency Management, city workers removed \u003ca href=\"https://www.kqed.org/news/12015125/tentless-amid-encampment-crackdown-unhoused-san-franciscans-storms\">more than 2,400 tents and structures\u003c/a> from city streets between Aug. 1 and Nov. 17.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Frank Noto, president of the San Francisco nonprofit Stop Crime Action, understands that housing is the ultimate, long-term solution to homelessness but said encampment sweeps should be part of the solution in the short term. “We can’t create supportive housing in a short period of time,” he said. “So, we try to muddle through, and we’re seeing a bunch of imperfect solutions.”\u003c/p>\n\u003cp>However, unhoused residents at Tuesday’s demonstration said they are worried about their future in the Bay Area as cities impose stricter rules.\u003c/p>\n\u003cp>In San Francisco earlier this month, policymakers capped the amount of time families could stay in city shelters, reducing the time from six months to 90 days.\u003c/p>\n\u003cp>And this month, supervisors reversed a policy change approved by city \u003ca href=\"https://www.kqed.org/news/12007425/san-francisco-bans-overnight-parking-for-rvs-on-most-city-streets\">transportation officials in October\u003c/a> that allowed oversized vehicles to be towed if the people living inside them reject offers of shelter, housing or services. The \u003ca href=\"https://www.kqed.org/news/12017544/sf-supes-reverse-citys-controversial-rv-parking-ban\">San Francisco Board of Supervisors rejected those restrictions\u003c/a> after receiving letters and appeals from homeless rights advocates and people living in RVs.\u003c/p>\n\u003cp>Maks Doulton, 63, was just placed in temporary subsidized housing a few months ago after living on San Francisco’s streets for a year. Though she has a roof over her head now, she fears she’ll become homeless again when her subsidy ends.\u003c/p>\n\u003cp>“What happens to me in a year?” she asked. “I won’t be able to afford rent in a year either — then what?”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"content": "\u003cp>San Francisco Mayor-elect \u003ca href=\"https://www.kqed.org/news/tag/daniel-lurie\">Daniel Lurie\u003c/a> announced Wednesday that he has selected a tech and finance veteran as chief of housing and economic development, a new position created by Lurie in his attempt to rework City Hall.\u003c/p>\n\u003cp>Ned Segal, who, like Lurie, has no prior government experience, will oversee some of San Francisco’s biggest challenges: meeting a state mandate to \u003ca href=\"https://www.kqed.org/news/11993388/new-state-law-slashed-sfs-housing-permit-timeline-will-builders-follow\">create nearly 80,000 housing units\u003c/a> as well as helping dig the city out of an economic slump. He’ll have to do so in the face of a more than \u003ca href=\"https://www.kqed.org/news/12017456/san-francisco-police-audit-finds-excessive-overtime-spending-since-2019\">$800 million budget deficit\u003c/a>.\u003c/p>\n\u003cp>“Ned embodies the kind of innovative leadership San Francisco desperately needs to tackle our most pressing challenges,” Lurie said. “With his strong background in the private sector, a deep love for San Francisco backed by extensive civic engagement, and a track record of delivering results, Ned is uniquely positioned to lead the revitalization of downtown, accelerate housing production, and drive economic growth in our City.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Segal previously served as Twitter’s chief financial officer and was among a group of \u003ca href=\"https://www.kqed.org/news/11930570/he-wants-attention-as-elon-musk-takes-over-twitter-this-tech-insider-has-some-thoughts\">top executives that Elon Musk ousted\u003c/a> shortly after purchasing the social media website in 2022 and rebranding it X. He and three other former Twitter executives sued Musk in March for more than $128 million in unpaid severance, alleging they were fired without cause.\u003c/p>\n\u003cp>Segal also sits on the board of Tipping Point Community, the anti-poverty nonprofit that Lurie founded and ran prior to running for mayor as \u003ca href=\"https://www.kqed.org/news/12013667/daniel-lurie-san-franciscos-next-mayor-what-will-that-look-like\">an “outsider” campaigning against career politicians\u003c/a> in City Hall who he said created the problems they were trying to solve. He has also served on the boards of large companies, including RingCentral, BostonGene and Beyond Meat.\u003c/p>\n\u003cp>[aside postID=news_12017884 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2024/11/241108-LURIEVICTORYPRESSER-07-BL-KQED-1020x680.jpg']\u003c/p>\n\u003cp>Segal is also an alum of Goldman Sachs, where he worked for nearly 17 years advising technology companies on mergers, acquisitions and other equity and debt financings.\u003c/p>\n\u003cp>He lives with his wife and three children in San Francisco, where he grew up and got one of his earliest jobs as a hot dog vendor at Candlestick Park from 1988–92.\u003c/p>\n\u003cp>“As a city known for its innovation and boundless potential, San Francisco has long been a beacon of creativity and growth,” Segal said in a statement. “Under the bold leadership of Mayor-elect Lurie, we have a mandate to reimagine what’s possible and I feel great urgency to deliver.”\u003c/p>\n\u003cp>The pick is Lurie’s first as he begins to round out a new group of \u003ca href=\"https://www.kqed.org/news/12017698/lurie-unveils-major-shakeup-san-francisco-mayors-office\">four policy directors who will report directly to him\u003c/a>, overseeing the city’s 56 agencies. They will work alongside the chief of staff rather than having a single chief of staff and one policy director reporting to the mayor.\u003c/p>\n\u003cp>In addition to Segal covering housing and economic development, the other three yet-to-be-named policy directors will oversee infrastructure, climate and mobility; public health and well-being; and public safety.\u003c/p>\n\u003cp>Lurie recently named \u003ca href=\"https://www.kqed.org/news/12017884/sf-mayor-elect-daniel-lurie-taps-former-giants-executive-lead-staff\">former Giants Vice President Staci Slaughter as his chief of staff\u003c/a>, as well as longtime City Hall staffer Matthew Goudeau, who served as a senior adviser on his campaign, as deputy chief of staff. And political strategist Han Zou, who worked on Lurie’s campaign this year as well as earlier campaigns for Assemblymember Matt Haney and Congresswoman-elect Lateefah Simon, will be director of public affairs.\u003c/p>\n\u003cp>\u003c/p>\n",
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"excerpt": "Ned Segal, who, like Lurie, has no government experience, was among a group of top executives that Elon Musk ousted shortly after purchasing the social media website in 2022.",
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"title": "Lurie Taps Ex-Twitter Exec to Tackle SF’s Housing Shortage and Economic Rebound | KQED",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>San Francisco Mayor-elect \u003ca href=\"https://www.kqed.org/news/tag/daniel-lurie\">Daniel Lurie\u003c/a> announced Wednesday that he has selected a tech and finance veteran as chief of housing and economic development, a new position created by Lurie in his attempt to rework City Hall.\u003c/p>\n\u003cp>Ned Segal, who, like Lurie, has no prior government experience, will oversee some of San Francisco’s biggest challenges: meeting a state mandate to \u003ca href=\"https://www.kqed.org/news/11993388/new-state-law-slashed-sfs-housing-permit-timeline-will-builders-follow\">create nearly 80,000 housing units\u003c/a> as well as helping dig the city out of an economic slump. He’ll have to do so in the face of a more than \u003ca href=\"https://www.kqed.org/news/12017456/san-francisco-police-audit-finds-excessive-overtime-spending-since-2019\">$800 million budget deficit\u003c/a>.\u003c/p>\n\u003cp>“Ned embodies the kind of innovative leadership San Francisco desperately needs to tackle our most pressing challenges,” Lurie said. “With his strong background in the private sector, a deep love for San Francisco backed by extensive civic engagement, and a track record of delivering results, Ned is uniquely positioned to lead the revitalization of downtown, accelerate housing production, and drive economic growth in our City.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Segal previously served as Twitter’s chief financial officer and was among a group of \u003ca href=\"https://www.kqed.org/news/11930570/he-wants-attention-as-elon-musk-takes-over-twitter-this-tech-insider-has-some-thoughts\">top executives that Elon Musk ousted\u003c/a> shortly after purchasing the social media website in 2022 and rebranding it X. He and three other former Twitter executives sued Musk in March for more than $128 million in unpaid severance, alleging they were fired without cause.\u003c/p>\n\u003cp>Segal also sits on the board of Tipping Point Community, the anti-poverty nonprofit that Lurie founded and ran prior to running for mayor as \u003ca href=\"https://www.kqed.org/news/12013667/daniel-lurie-san-franciscos-next-mayor-what-will-that-look-like\">an “outsider” campaigning against career politicians\u003c/a> in City Hall who he said created the problems they were trying to solve. He has also served on the boards of large companies, including RingCentral, BostonGene and Beyond Meat.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Segal is also an alum of Goldman Sachs, where he worked for nearly 17 years advising technology companies on mergers, acquisitions and other equity and debt financings.\u003c/p>\n\u003cp>He lives with his wife and three children in San Francisco, where he grew up and got one of his earliest jobs as a hot dog vendor at Candlestick Park from 1988–92.\u003c/p>\n\u003cp>“As a city known for its innovation and boundless potential, San Francisco has long been a beacon of creativity and growth,” Segal said in a statement. “Under the bold leadership of Mayor-elect Lurie, we have a mandate to reimagine what’s possible and I feel great urgency to deliver.”\u003c/p>\n\u003cp>The pick is Lurie’s first as he begins to round out a new group of \u003ca href=\"https://www.kqed.org/news/12017698/lurie-unveils-major-shakeup-san-francisco-mayors-office\">four policy directors who will report directly to him\u003c/a>, overseeing the city’s 56 agencies. They will work alongside the chief of staff rather than having a single chief of staff and one policy director reporting to the mayor.\u003c/p>\n\u003cp>In addition to Segal covering housing and economic development, the other three yet-to-be-named policy directors will oversee infrastructure, climate and mobility; public health and well-being; and public safety.\u003c/p>\n\u003cp>Lurie recently named \u003ca href=\"https://www.kqed.org/news/12017884/sf-mayor-elect-daniel-lurie-taps-former-giants-executive-lead-staff\">former Giants Vice President Staci Slaughter as his chief of staff\u003c/a>, as well as longtime City Hall staffer Matthew Goudeau, who served as a senior adviser on his campaign, as deputy chief of staff. And political strategist Han Zou, who worked on Lurie’s campaign this year as well as earlier campaigns for Assemblymember Matt Haney and Congresswoman-elect Lateefah Simon, will be director of public affairs.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"slug": "dramatic-insurance-spikes-could-tank-californias-affordable-housing-plans",
"title": "Dramatic Insurance Spikes Could Tank California's Homeless Housing",
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"content": "\u003cp>Dora Gallo is holding her breath for the next insurance quote.\u003c/p>\n\u003cp>Last year, premiums for the nonprofit she leads, A Community of Friends, rose nearly 200% — from $1.4 million to $3.8 million — to cover its portfolio of 47 properties. Spread across mostly urban neighborhoods in Los Angeles County, the roughly 2,000 apartments are reserved primarily for people exiting homelessness and who have a mental health disability.\u003c/p>\n\u003cp>The best Gallo can hope for, she said, is that premiums stay the same when it’s time to renew in January.\u003c/p>\n\u003cp>“We’ve depleted the operating reserves for six of our buildings. And we believe — if this renewal, even if it remains the same at $3.8 [million] — we’re likely to deplete the reserves of another three buildings,” she said. “We can’t keep doing that.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>A growing number of housing providers across the country are experiencing the same financial pain as A Community of Friends. Organizations that specialize in what’s known as \u003ca href=\"https://www.hudexchange.info/homelessness-assistance/coc-esg-virtual-binders/coc-program-components/permanent-housing/permanent-supportive-housing/\">permanent supportive housing\u003c/a> — housing that includes support services for people with disabilities or who have been chronically homeless — are reporting dramatic increases in insurance premiums, a reality they say is threatening their ability to continue operating.\u003c/p>\n\u003cp>Justine Marcus, Northern California policy director for the national nonprofit, Enterprise Community Partners, said that’s especially problematic for California, which, at last count, had more than \u003ca href=\"https://www.huduser.gov/portal/sites/default/files/pdf/2023-AHAR-Part-1.pdf\">181,000 homeless residents\u003c/a> and where state officials have \u003ca href=\"https://www.hcd.ca.gov/grants-funding/active-funding/docs/housing-first-fact-sheet.pdf\">made it a priority\u003c/a> to place those residents into permanent housing.\u003c/p>\n\u003cp>Those new apartments are often located in cities, where developers can maximize the size of the building and where residents can access services. But, Marcus said, insurers are increasingly telling providers this model is too risky.[aside label=\"Related Stories\" postID=\"news_12014632,news_12017695,news_11981767\"]“Those are the exact same things that are being cited as risk drivers,” she said. “Things like greater density, things like infill, things like serving folks at the lowest incomes.”\u003c/p>\n\u003cp>Industry experts say increasing premiums are the result of greater weariness on the part of insurance carriers to take on what they consider to be riskier properties, especially as they also confront higher rebuilding costs, more frequent losses from natural disasters, and other challenges.\u003c/p>\n\u003cp>“The industry has been unprofitable,” said Karen Collins, Vice President of Property and Environmental at the American Property Casualty Insurance Association. “So we are seeing premiums having to increase across the entire U.S.”\u003c/p>\n\u003cp>But, unlike other landlords, who can pass increased costs onto tenants, supportive housing providers face strict limits. Rents are typically capped at 30% of residents’ incomes; taxpayer subsidies cover the rest.\u003c/p>\n\u003cp>California’s Insurance Commission has only just begun to study the problem, said Tony Cignarale, Deputy Commissioner of Consumer Services and Market Conduct. He’s been meeting with supportive housing providers over the past few months, he said, to gather information and get a “broad picture to find a solution, either administrative or legislative.”\u003c/p>\n\u003cp>In the meantime, Marcus said some housing providers may not be able to wait for a solution that could be a year or more in the making.\u003c/p>\n\u003cp>“Insurance costs, especially in combination with other operational cost challenges, are posing an immediate financial — I would say existential — risk,” she said.\u003c/p>\n\u003ch2>\u003cstrong>A promising solution\u003c/strong>\u003c/h2>\n\u003cp>In many ways, Solomon Bukenya embodies the promise of permanent supportive housing.\u003c/p>\n\u003cp>He became homeless around 2007, living in cars and on the street in Texas and San Francisco. With high blood pressure and arthritis, his health was deteriorating.\u003c/p>\n\u003cp>One night about two years ago, when he had just arrived at 1066 Mission Street, a 100% supportive housing site for seniors in San Francisco’s South of Market neighborhood, his hands were so swollen and stiff that he couldn’t press the small button on the side of his prosthetic leg to remove it. He was alone and saw no other option but to call 911.\u003c/p>\n\u003cp>“I told them, ‘I can’t press this button. Please can you press it for me?’ And that’s all I wanted to do,” he said. “Imagine calling 911 for only that small thing?”\u003c/p>\n\u003cp>But in about two years of living at 1066 Mission Street, with access to regular health care and free meals, the now-65-year-old can walk, stand for long hours, and exercise regularly.\u003c/p>\n\u003cp>“I’m feeling [much] stronger,” Buckenya said. “I’m like a 20-, 25-year-old, the way I feel in my body.”\u003c/p>\n\u003cp>\u003cimg loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12018227\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-34-BL_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-34-BL_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-34-BL_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-34-BL_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-34-BL_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-34-BL_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-34-BL_qed-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003c/p>\n\u003cfigure id=\"attachment_12018242\" class=\"wp-caption aligncenter\" style=\"max-width: 2500px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12018242\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image.jpg\" alt=\"\" width=\"2500\" height=\"833\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image.jpg 2500w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-800x267.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1020x340.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-160x53.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1536x512.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2048x682.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1920x640.jpg 1920w\" sizes=\"auto, (max-width: 2500px) 100vw, 2500px\">\u003cfigcaption class=\"wp-caption-text\">Top: Solomon Bukenya in his room at the newly built supportive housing site at 1064 Mission Street on Nov. 14, 2024. Bottom left: Bukenya shows his prosthetic leg outside his room. Bottom right: Bukenya sits on his bed reading a book on self-discipline. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>\u003ca href=\"https://www.huduser.gov/portal/periodicals/em/spring-summer-23/highlight2.html\">Research consistently shows\u003c/a> supportive housing — like the kind Bukenya is receiving — leads not only to positive changes in residents’ lives, but to \u003ca href=\"https://www.urban.org/features/housing-first-breaks-homelessness-jail-cycle#:~:text=Denver%20SIB%20participants%20had%20%246%2C876,offset%20by%20other%20avoided%20costs.\">cost savings for taxpayers\u003c/a>, too.\u003c/p>\n\u003cp>“It’s so much more affordable in comparison to \u003ca href=\"https://www.prisonpolicy.org/blog/2023/09/11/housing-first/\">incarceration\u003c/a> or \u003ca href=\"https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3393008/pdf/hesr0047-0523.pdf\">long-term hospitalization\u003c/a> or literally the cost of one \u003ca href=\"https://jamanetwork.com/journals/jama/fullarticle/183842\">emergency room\u003c/a> visit,” said Travis Hamilton, associate director of housing services for Episcopal Community Services, which operates Bukenya’s building.\u003c/p>\n\u003cp>It’s why housing advocates have pushed for this model to grow. Across the country, the number of these supportive apartments have \u003ca href=\"https://files.hudexchange.info/reports/published/CoC_HIC_NatlTerrDC_2013.pdf\">risen nearly 40%\u003c/a> over the past decade to just under \u003ca href=\"https://files.hudexchange.info/reports/published/CoC_HIC_NatlTerrDC_2023.pdf\">400,000 housing units\u003c/a> in 2023. In California, they’ve nearly doubled.\u003c/p>\n\u003cfigure id=\"attachment_12018237\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12018237\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-07-BL_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-07-BL_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-07-BL_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-07-BL_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-07-BL_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-07-BL_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-07-BL_qed-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Travis Hamilton, Associate Director of Housing Services, and Zak Franet, Director of Policy and Public Affairs, walk through a courtyard at the newly built supportive housing site at 1064 Mission Street in San Francisco, run by Episcopal Community Services, on Nov. 14, 2024. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>But, as the number of these properties has grown, so, too, has the number of insurance claims, said Justin Dove, with the brokerage firm Gallagher. Dove said that’s why he thinks carriers are beginning to raise rates.\u003c/p>\n\u003cp>“There was a major influx of claim activity,” he said. “And, as most things happen in insurance, you have a high frequency period of claims, insurers start to retool, and they take action. Right? And so, their action has been increased premiums.”\u003c/p>\n\u003cp>But it isn’t just the volume of claims that have increased, it’s also the frequency of claims in supportive housing, compared to other forms of non-supportive affordable or market-rate housing, he said.\u003c/p>\n\u003cp>“We absolutely see a higher frequency of claims in those buildings,” Dove said.\u003c/p>\n\u003cp>A \u003ca href=\"https://www.insurance.wa.gov/sites/default/files/documents/Davies-group-presentation-housing-10232024.pdf\">draft study out of Washington state (PDF)\u003c/a> backs up his assessment. The authors, while noting some limitations in the data’s robustness, found “no evidence that current insurance rates in this segment are excessive, from an actuarial point of view.” That is to say, the authors found rates fairly reflected carriers’ risks.\u003c/p>\n\u003cfigure id=\"attachment_12018250\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12018250\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-22-BL_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-22-BL_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-22-BL_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-22-BL_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-22-BL_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-22-BL_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-22-BL_qed-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Resident Solomon Bukenya sits to read at his desk at the newly-built supportive housing site at 1064 Mission Street. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2>\u003cstrong>Unforeseen consequences\u003c/strong>\u003c/h2>\n\u003cp>On the day KQED visited Bukenya’s six-story apartment complex, evidence of that higher risk was on display: An elevator was out of service. A recent stove fire, while minor, had triggered the sprinkler system, sending water into the elevator shaft — causing an estimated $300,000 in damage.\u003c/p>\n\u003cp>Travis Hamilton, associate director of Housing Services at Episcopal Community Services, said it can be difficult for some residents — who have often spent a decade or more living outside — to transition to life inside an apartment.\u003c/p>\n\u003cp>“Folks take medication or they’re sleepy,” he said. “[They] leave the stove burner on, which can cause fires.”\u003c/p>\n\u003cfigure id=\"attachment_12018249\" class=\"wp-caption aligncenter\" style=\"max-width: 2500px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12018249\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1.jpg\" alt=\"\" width=\"2500\" height=\"833\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1.jpg 2500w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1-800x267.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1-1020x340.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1-160x53.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1-1536x512.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1-2048x682.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1-1920x640.jpg 1920w\" sizes=\"auto, (max-width: 2500px) 100vw, 2500px\">\u003cfigcaption class=\"wp-caption-text\">Left: An overdose emergency kit filled with Narcan hangs on the wall at the newly-built supportive housing site at 1064 Mission Street. Right: Bukenya stands near the elevator. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Over the past two years, Episcopal Community Services has had six fires and eight floods across the roughly 1,650 apartments it operates in San Francisco and Marin counties, according to executive director Beth Stokes. Each accident, even minor ones, can cause tens of thousands of dollars in damages — especially if, as was the case in Buckenya’s apartment complex, the water leaks to the elevator or lower floors.\u003c/p>\n\u003cp>Stokes said it’s for that reason the organization’s last insurance carrier refused to cover several of its buildings that were over five stories tall.\u003c/p>\n\u003cp>Nor does it help that the properties are often located in neighborhoods with higher crime rates. With all of that combined, Stokes said the organization saw overall insurance premiums rise 34% last year.\u003c/p>\n\u003cp>“We’re seeing higher premiums, higher deductibles, lower coverage,” she said. “And when you have lower coverage, that’s a real risk.”\u003c/p>\n\u003cp>Emily Cohen, a spokesperson for San Francisco’s Department of Homelessness Services and Housing, said supportive housing providers pay, on average, about 20% more for insurance premiums than other non-supportive affordable housing providers in the city. The department oversees \u003ca href=\"https://www.sf.gov/data/housing-inventory#housing-program-types\">more than 13,500 apartments and rental vouchers\u003c/a> throughout San Francisco.\u003c/p>\n\u003cp>\u003cimg loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12018252\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-06-BL_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-06-BL_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-06-BL_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-06-BL_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-06-BL_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-06-BL_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-06-BL_qed-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003c/p>\n\u003cfigure id=\"attachment_12018253\" class=\"wp-caption aligncenter\" style=\"max-width: 2500px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12018253\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2.jpg\" alt=\"\" width=\"2500\" height=\"833\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2.jpg 2500w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2-800x267.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2-1020x340.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2-160x53.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2-1536x512.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2-2048x682.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2-1920x640.jpg 1920w\" sizes=\"auto, (max-width: 2500px) 100vw, 2500px\">\u003cfigcaption class=\"wp-caption-text\">Top: A view of a courtyard at the newly-built supportive housing site at 1064 Mission Street. Bottom: Views from the entrance. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Those increased insurance costs are coming on top of already-higher expenses to operate supportive housing, Cohen said. The buildings are often older properties that have greater maintenance needs; they require an on-site property manager and more support staff; the units come furnished and residents don’t pay as much toward their security deposits as non-subsidized tenants, she said.\u003c/p>\n\u003cp>“So it gets to be a lot,” Cohen said. “And, we have very minimal rent revenue coming into the properties as the rents are always income-based.”\u003c/p>\n\u003ch2>\u003cstrong>Sustaining the model\u003c/strong>\u003c/h2>\n\u003cp>Insurers, meanwhile, say costs are piling up for them, too.\u003c/p>\n\u003cp>Collins, with the American Property Casualty Insurance Association, said inflation has \u003ca href=\"https://law.pepperdine.edu/surf-report/posts/effect-inflation-supply-chain-disruption-labor-shortages-real-estate-development-justin-wong.htm#:~:text=Since%20the%20start%20of%20the%20pandemic%20in,have%20risen%2035.6%%20(19.2%%20since%20April%202021).\">hit the construction industry particularly hard\u003c/a>, which has increased rebuilding costs. Add to that the \u003ca href=\"https://www.climate.gov/news-features/blogs/beyond-data/2023-historic-year-us-billion-dollar-weather-and-climate-disasters#:~:text=Adding%20the%202023%20events%20to,376%20events%20exceeds%20%242.660%20trillion.\">increase in natural disasters\u003c/a>, plus \u003ca href=\"https://www.wsj.com/real-estate/on-the-move-americans-are-unwitting-storm-chasers-43001f70\">construction growth in areas at higher risk of natural disasters\u003c/a>, and Collins said the industry has been stretched thin.\u003c/p>\n\u003cp>“This is a trend that we’re unfortunately seeing across a number of states,” Collins said.\u003c/p>\n\u003cp>California’s Insurance Commission \u003ca href=\"https://www.kqed.org/news/12014632/california-insurance-regulators-aim-ease-coverage-crisis-new-rules\">is in the process\u003c/a> of approving changes to \u003ca href=\"https://www.insurance.ca.gov/01-consumers/180-climate-change/SustainableInsuranceStrategy.cfm\">address some of the state’s climate-change related challenges\u003c/a>, including a change \u003ca href=\"https://www.insurance.ca.gov/0400-news/0100-press-releases/2024/release062-2024.cfm\">that went into effect on Friday,\u003c/a> allowing insurers to use \u003ca href=\"https://content.naic.org/insurance-topics/catastrophe-models-%28property%29#:~:text=Issue:%20A%20catastrophe%20model%20is,terrorism%2C%20and%20cyber%2Dattacks.\">catastrophe modeling\u003c/a> in exchange for promises to write more policies in risky wildfire areas.\u003c/p>\n\u003cp>But carriers won’t be able to put them into practice until they get their rates approved by the commission — a process that Collins said has historically taken, on average, \u003ca href=\"https://calmatters.org/economy/2024/05/california-insurance-crisis-2/\">more than a year\u003c/a>, though there are efforts by the commission to speed it.\u003c/p>\n\u003cfigure id=\"attachment_12018411\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12018411\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-27-BL_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-27-BL_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-27-BL_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-27-BL_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-27-BL_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-27-BL_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-27-BL_qed-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Bukenya holds a bracelet he made in his room at the newly-built supportive housing site at 1064 Mission Street, on Nov. 14, 2024. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Once the new rates are in place, Collins said that would help bring insurers back to the state, but may not lower costs for supportive housing providers.\u003c/p>\n\u003cp>“These insurance premiums today are not overcharging; they’re reflecting actuarially what that risk is,” she said.\u003c/p>\n\u003cp>What can help, Collins said, is better mitigation measures, such as more interior controls to prevent floods, fires and other resident-caused damages.\u003c/p>\n\u003cp>At Episcopal Community Services, some of those measures are already in place. The building at 1066 Mission Street, which opened in the fall of 2022, has an extra drain in the bathroom so water doesn’t pool on the floors, Hamilton said. And there are built-in timers to automatically shut off stove tops.\u003c/p>\n\u003cp>But, Stokes said, they could use additional staff, especially during nights and weekends, to provide more support to residents and respond more quickly when incidents do occur. And, additional operating subsidies from federal, state and local governments to account for the higher insurance premiums.\u003c/p>\n\u003cp>Without those subsidies, she said providers likely won’t be able to develop or manage new buildings for the tens of thousands of unhoused people waiting for a home — and may even risk losing the ones they already have.\u003c/p>\n\u003cp>“We all want more units, but not at the cost of losing units,” she said. “We’re all very concerned about the sustainability of the model.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"excerpt": "The premium increases have less to do with potential losses from wildfires or storms and more to do with who lives in that housing and the dense, urban neighborhoods where the properties are located. ",
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"title": "Dramatic Insurance Spikes Could Tank California's Homeless Housing | KQED",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Dora Gallo is holding her breath for the next insurance quote.\u003c/p>\n\u003cp>Last year, premiums for the nonprofit she leads, A Community of Friends, rose nearly 200% — from $1.4 million to $3.8 million — to cover its portfolio of 47 properties. Spread across mostly urban neighborhoods in Los Angeles County, the roughly 2,000 apartments are reserved primarily for people exiting homelessness and who have a mental health disability.\u003c/p>\n\u003cp>The best Gallo can hope for, she said, is that premiums stay the same when it’s time to renew in January.\u003c/p>\n\u003cp>“We’ve depleted the operating reserves for six of our buildings. And we believe — if this renewal, even if it remains the same at $3.8 [million] — we’re likely to deplete the reserves of another three buildings,” she said. “We can’t keep doing that.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>A growing number of housing providers across the country are experiencing the same financial pain as A Community of Friends. Organizations that specialize in what’s known as \u003ca href=\"https://www.hudexchange.info/homelessness-assistance/coc-esg-virtual-binders/coc-program-components/permanent-housing/permanent-supportive-housing/\">permanent supportive housing\u003c/a> — housing that includes support services for people with disabilities or who have been chronically homeless — are reporting dramatic increases in insurance premiums, a reality they say is threatening their ability to continue operating.\u003c/p>\n\u003cp>Justine Marcus, Northern California policy director for the national nonprofit, Enterprise Community Partners, said that’s especially problematic for California, which, at last count, had more than \u003ca href=\"https://www.huduser.gov/portal/sites/default/files/pdf/2023-AHAR-Part-1.pdf\">181,000 homeless residents\u003c/a> and where state officials have \u003ca href=\"https://www.hcd.ca.gov/grants-funding/active-funding/docs/housing-first-fact-sheet.pdf\">made it a priority\u003c/a> to place those residents into permanent housing.\u003c/p>\n\u003cp>Those new apartments are often located in cities, where developers can maximize the size of the building and where residents can access services. But, Marcus said, insurers are increasingly telling providers this model is too risky.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“Those are the exact same things that are being cited as risk drivers,” she said. “Things like greater density, things like infill, things like serving folks at the lowest incomes.”\u003c/p>\n\u003cp>Industry experts say increasing premiums are the result of greater weariness on the part of insurance carriers to take on what they consider to be riskier properties, especially as they also confront higher rebuilding costs, more frequent losses from natural disasters, and other challenges.\u003c/p>\n\u003cp>“The industry has been unprofitable,” said Karen Collins, Vice President of Property and Environmental at the American Property Casualty Insurance Association. “So we are seeing premiums having to increase across the entire U.S.”\u003c/p>\n\u003cp>But, unlike other landlords, who can pass increased costs onto tenants, supportive housing providers face strict limits. Rents are typically capped at 30% of residents’ incomes; taxpayer subsidies cover the rest.\u003c/p>\n\u003cp>California’s Insurance Commission has only just begun to study the problem, said Tony Cignarale, Deputy Commissioner of Consumer Services and Market Conduct. He’s been meeting with supportive housing providers over the past few months, he said, to gather information and get a “broad picture to find a solution, either administrative or legislative.”\u003c/p>\n\u003cp>In the meantime, Marcus said some housing providers may not be able to wait for a solution that could be a year or more in the making.\u003c/p>\n\u003cp>“Insurance costs, especially in combination with other operational cost challenges, are posing an immediate financial — I would say existential — risk,” she said.\u003c/p>\n\u003ch2>\u003cstrong>A promising solution\u003c/strong>\u003c/h2>\n\u003cp>In many ways, Solomon Bukenya embodies the promise of permanent supportive housing.\u003c/p>\n\u003cp>He became homeless around 2007, living in cars and on the street in Texas and San Francisco. With high blood pressure and arthritis, his health was deteriorating.\u003c/p>\n\u003cp>One night about two years ago, when he had just arrived at 1066 Mission Street, a 100% supportive housing site for seniors in San Francisco’s South of Market neighborhood, his hands were so swollen and stiff that he couldn’t press the small button on the side of his prosthetic leg to remove it. He was alone and saw no other option but to call 911.\u003c/p>\n\u003cp>“I told them, ‘I can’t press this button. Please can you press it for me?’ And that’s all I wanted to do,” he said. “Imagine calling 911 for only that small thing?”\u003c/p>\n\u003cp>But in about two years of living at 1066 Mission Street, with access to regular health care and free meals, the now-65-year-old can walk, stand for long hours, and exercise regularly.\u003c/p>\n\u003cp>“I’m feeling [much] stronger,” Buckenya said. “I’m like a 20-, 25-year-old, the way I feel in my body.”\u003c/p>\n\u003cp>\u003cimg loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12018227\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-34-BL_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-34-BL_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-34-BL_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-34-BL_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-34-BL_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-34-BL_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-34-BL_qed-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003c/p>\n\u003cfigure id=\"attachment_12018242\" class=\"wp-caption aligncenter\" style=\"max-width: 2500px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12018242\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image.jpg\" alt=\"\" width=\"2500\" height=\"833\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image.jpg 2500w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-800x267.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1020x340.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-160x53.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1536x512.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2048x682.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1920x640.jpg 1920w\" sizes=\"auto, (max-width: 2500px) 100vw, 2500px\">\u003cfigcaption class=\"wp-caption-text\">Top: Solomon Bukenya in his room at the newly built supportive housing site at 1064 Mission Street on Nov. 14, 2024. Bottom left: Bukenya shows his prosthetic leg outside his room. Bottom right: Bukenya sits on his bed reading a book on self-discipline. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>\u003ca href=\"https://www.huduser.gov/portal/periodicals/em/spring-summer-23/highlight2.html\">Research consistently shows\u003c/a> supportive housing — like the kind Bukenya is receiving — leads not only to positive changes in residents’ lives, but to \u003ca href=\"https://www.urban.org/features/housing-first-breaks-homelessness-jail-cycle#:~:text=Denver%20SIB%20participants%20had%20%246%2C876,offset%20by%20other%20avoided%20costs.\">cost savings for taxpayers\u003c/a>, too.\u003c/p>\n\u003cp>“It’s so much more affordable in comparison to \u003ca href=\"https://www.prisonpolicy.org/blog/2023/09/11/housing-first/\">incarceration\u003c/a> or \u003ca href=\"https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3393008/pdf/hesr0047-0523.pdf\">long-term hospitalization\u003c/a> or literally the cost of one \u003ca href=\"https://jamanetwork.com/journals/jama/fullarticle/183842\">emergency room\u003c/a> visit,” said Travis Hamilton, associate director of housing services for Episcopal Community Services, which operates Bukenya’s building.\u003c/p>\n\u003cp>It’s why housing advocates have pushed for this model to grow. Across the country, the number of these supportive apartments have \u003ca href=\"https://files.hudexchange.info/reports/published/CoC_HIC_NatlTerrDC_2013.pdf\">risen nearly 40%\u003c/a> over the past decade to just under \u003ca href=\"https://files.hudexchange.info/reports/published/CoC_HIC_NatlTerrDC_2023.pdf\">400,000 housing units\u003c/a> in 2023. In California, they’ve nearly doubled.\u003c/p>\n\u003cfigure id=\"attachment_12018237\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12018237\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-07-BL_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-07-BL_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-07-BL_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-07-BL_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-07-BL_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-07-BL_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-07-BL_qed-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Travis Hamilton, Associate Director of Housing Services, and Zak Franet, Director of Policy and Public Affairs, walk through a courtyard at the newly built supportive housing site at 1064 Mission Street in San Francisco, run by Episcopal Community Services, on Nov. 14, 2024. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>But, as the number of these properties has grown, so, too, has the number of insurance claims, said Justin Dove, with the brokerage firm Gallagher. Dove said that’s why he thinks carriers are beginning to raise rates.\u003c/p>\n\u003cp>“There was a major influx of claim activity,” he said. “And, as most things happen in insurance, you have a high frequency period of claims, insurers start to retool, and they take action. Right? And so, their action has been increased premiums.”\u003c/p>\n\u003cp>But it isn’t just the volume of claims that have increased, it’s also the frequency of claims in supportive housing, compared to other forms of non-supportive affordable or market-rate housing, he said.\u003c/p>\n\u003cp>“We absolutely see a higher frequency of claims in those buildings,” Dove said.\u003c/p>\n\u003cp>A \u003ca href=\"https://www.insurance.wa.gov/sites/default/files/documents/Davies-group-presentation-housing-10232024.pdf\">draft study out of Washington state (PDF)\u003c/a> backs up his assessment. The authors, while noting some limitations in the data’s robustness, found “no evidence that current insurance rates in this segment are excessive, from an actuarial point of view.” That is to say, the authors found rates fairly reflected carriers’ risks.\u003c/p>\n\u003cfigure id=\"attachment_12018250\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12018250\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-22-BL_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-22-BL_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-22-BL_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-22-BL_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-22-BL_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-22-BL_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-22-BL_qed-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Resident Solomon Bukenya sits to read at his desk at the newly-built supportive housing site at 1064 Mission Street. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2>\u003cstrong>Unforeseen consequences\u003c/strong>\u003c/h2>\n\u003cp>On the day KQED visited Bukenya’s six-story apartment complex, evidence of that higher risk was on display: An elevator was out of service. A recent stove fire, while minor, had triggered the sprinkler system, sending water into the elevator shaft — causing an estimated $300,000 in damage.\u003c/p>\n\u003cp>Travis Hamilton, associate director of Housing Services at Episcopal Community Services, said it can be difficult for some residents — who have often spent a decade or more living outside — to transition to life inside an apartment.\u003c/p>\n\u003cp>“Folks take medication or they’re sleepy,” he said. “[They] leave the stove burner on, which can cause fires.”\u003c/p>\n\u003cfigure id=\"attachment_12018249\" class=\"wp-caption aligncenter\" style=\"max-width: 2500px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12018249\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1.jpg\" alt=\"\" width=\"2500\" height=\"833\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1.jpg 2500w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1-800x267.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1-1020x340.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1-160x53.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1-1536x512.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1-2048x682.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-1-1920x640.jpg 1920w\" sizes=\"auto, (max-width: 2500px) 100vw, 2500px\">\u003cfigcaption class=\"wp-caption-text\">Left: An overdose emergency kit filled with Narcan hangs on the wall at the newly-built supportive housing site at 1064 Mission Street. Right: Bukenya stands near the elevator. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Over the past two years, Episcopal Community Services has had six fires and eight floods across the roughly 1,650 apartments it operates in San Francisco and Marin counties, according to executive director Beth Stokes. Each accident, even minor ones, can cause tens of thousands of dollars in damages — especially if, as was the case in Buckenya’s apartment complex, the water leaks to the elevator or lower floors.\u003c/p>\n\u003cp>Stokes said it’s for that reason the organization’s last insurance carrier refused to cover several of its buildings that were over five stories tall.\u003c/p>\n\u003cp>Nor does it help that the properties are often located in neighborhoods with higher crime rates. With all of that combined, Stokes said the organization saw overall insurance premiums rise 34% last year.\u003c/p>\n\u003cp>“We’re seeing higher premiums, higher deductibles, lower coverage,” she said. “And when you have lower coverage, that’s a real risk.”\u003c/p>\n\u003cp>Emily Cohen, a spokesperson for San Francisco’s Department of Homelessness Services and Housing, said supportive housing providers pay, on average, about 20% more for insurance premiums than other non-supportive affordable housing providers in the city. The department oversees \u003ca href=\"https://www.sf.gov/data/housing-inventory#housing-program-types\">more than 13,500 apartments and rental vouchers\u003c/a> throughout San Francisco.\u003c/p>\n\u003cp>\u003cimg loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12018252\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-06-BL_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-06-BL_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-06-BL_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-06-BL_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-06-BL_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-06-BL_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-06-BL_qed-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003c/p>\n\u003cfigure id=\"attachment_12018253\" class=\"wp-caption aligncenter\" style=\"max-width: 2500px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12018253\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2.jpg\" alt=\"\" width=\"2500\" height=\"833\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2.jpg 2500w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2-800x267.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2-1020x340.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2-160x53.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2-1536x512.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2-2048x682.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/Copy-of-KQED-side-by-side-downpage-image-2-1920x640.jpg 1920w\" sizes=\"auto, (max-width: 2500px) 100vw, 2500px\">\u003cfigcaption class=\"wp-caption-text\">Top: A view of a courtyard at the newly-built supportive housing site at 1064 Mission Street. Bottom: Views from the entrance. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Those increased insurance costs are coming on top of already-higher expenses to operate supportive housing, Cohen said. The buildings are often older properties that have greater maintenance needs; they require an on-site property manager and more support staff; the units come furnished and residents don’t pay as much toward their security deposits as non-subsidized tenants, she said.\u003c/p>\n\u003cp>“So it gets to be a lot,” Cohen said. “And, we have very minimal rent revenue coming into the properties as the rents are always income-based.”\u003c/p>\n\u003ch2>\u003cstrong>Sustaining the model\u003c/strong>\u003c/h2>\n\u003cp>Insurers, meanwhile, say costs are piling up for them, too.\u003c/p>\n\u003cp>Collins, with the American Property Casualty Insurance Association, said inflation has \u003ca href=\"https://law.pepperdine.edu/surf-report/posts/effect-inflation-supply-chain-disruption-labor-shortages-real-estate-development-justin-wong.htm#:~:text=Since%20the%20start%20of%20the%20pandemic%20in,have%20risen%2035.6%%20(19.2%%20since%20April%202021).\">hit the construction industry particularly hard\u003c/a>, which has increased rebuilding costs. Add to that the \u003ca href=\"https://www.climate.gov/news-features/blogs/beyond-data/2023-historic-year-us-billion-dollar-weather-and-climate-disasters#:~:text=Adding%20the%202023%20events%20to,376%20events%20exceeds%20%242.660%20trillion.\">increase in natural disasters\u003c/a>, plus \u003ca href=\"https://www.wsj.com/real-estate/on-the-move-americans-are-unwitting-storm-chasers-43001f70\">construction growth in areas at higher risk of natural disasters\u003c/a>, and Collins said the industry has been stretched thin.\u003c/p>\n\u003cp>“This is a trend that we’re unfortunately seeing across a number of states,” Collins said.\u003c/p>\n\u003cp>California’s Insurance Commission \u003ca href=\"https://www.kqed.org/news/12014632/california-insurance-regulators-aim-ease-coverage-crisis-new-rules\">is in the process\u003c/a> of approving changes to \u003ca href=\"https://www.insurance.ca.gov/01-consumers/180-climate-change/SustainableInsuranceStrategy.cfm\">address some of the state’s climate-change related challenges\u003c/a>, including a change \u003ca href=\"https://www.insurance.ca.gov/0400-news/0100-press-releases/2024/release062-2024.cfm\">that went into effect on Friday,\u003c/a> allowing insurers to use \u003ca href=\"https://content.naic.org/insurance-topics/catastrophe-models-%28property%29#:~:text=Issue:%20A%20catastrophe%20model%20is,terrorism%2C%20and%20cyber%2Dattacks.\">catastrophe modeling\u003c/a> in exchange for promises to write more policies in risky wildfire areas.\u003c/p>\n\u003cp>But carriers won’t be able to put them into practice until they get their rates approved by the commission — a process that Collins said has historically taken, on average, \u003ca href=\"https://calmatters.org/economy/2024/05/california-insurance-crisis-2/\">more than a year\u003c/a>, though there are efforts by the commission to speed it.\u003c/p>\n\u003cfigure id=\"attachment_12018411\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12018411\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-27-BL_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-27-BL_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-27-BL_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-27-BL_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-27-BL_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-27-BL_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241114-SupportiveHousingInsurance-27-BL_qed-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Bukenya holds a bracelet he made in his room at the newly-built supportive housing site at 1064 Mission Street, on Nov. 14, 2024. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Once the new rates are in place, Collins said that would help bring insurers back to the state, but may not lower costs for supportive housing providers.\u003c/p>\n\u003cp>“These insurance premiums today are not overcharging; they’re reflecting actuarially what that risk is,” she said.\u003c/p>\n\u003cp>What can help, Collins said, is better mitigation measures, such as more interior controls to prevent floods, fires and other resident-caused damages.\u003c/p>\n\u003cp>At Episcopal Community Services, some of those measures are already in place. The building at 1066 Mission Street, which opened in the fall of 2022, has an extra drain in the bathroom so water doesn’t pool on the floors, Hamilton said. And there are built-in timers to automatically shut off stove tops.\u003c/p>\n\u003cp>But, Stokes said, they could use additional staff, especially during nights and weekends, to provide more support to residents and respond more quickly when incidents do occur. And, additional operating subsidies from federal, state and local governments to account for the higher insurance premiums.\u003c/p>\n\u003cp>Without those subsidies, she said providers likely won’t be able to develop or manage new buildings for the tens of thousands of unhoused people waiting for a home — and may even risk losing the ones they already have.\u003c/p>\n\u003cp>“We all want more units, but not at the cost of losing units,” she said. “We’re all very concerned about the sustainability of the model.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"title": "Farmers Insurance to Step Up Coverage in California, a Sign Tide Is Turning",
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"content": "\u003cp>In a hopeful sign for California’s \u003ca href=\"https://www.kqed.org/science/1985175/insurance-in-california-is-changing-heres-how-it-may-affect-you\">beleaguered insurance market\u003c/a>, Farmers Insurance said this week that it would reopen some closed lines of coverage and start writing more homeowners policies.\u003c/p>\n\u003cp>Beginning Saturday, the state’s second-largest homeowners insurance carrier \u003ca href=\"https://newsroom.farmers.com/2024-12-11-Recognizing-an-Improved-Insurance-Marketplace-in-California,-Farmers-Insurance-R-to-Expand-Its-Coverage-Options-in-the-State\">said it will resume offering\u003c/a> several types of coverage that have been closed to new customers in California for more than a year, including renters and condominium insurance. It will also bump up the number of new homeowners insurance policies it accepts each month from 7,000 to 9,500.\u003c/p>\n\u003cp>Insurance experts said the move signals a reversal of the yearslong trend of insurers offering less and less coverage in California following catastrophic wildfires and spikes in inflation. It comes as insurance companies are anticipating \u003ca href=\"https://www.kqed.org/news/12014632/california-insurance-regulators-aim-ease-coverage-crisis-new-rules\">an overhaul of state regulations\u003c/a>, known as the Sustainable Insurance Strategy, to be implemented any day now.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Insurance broker and \u003ca href=\"https://podcasts.apple.com/us/podcast/insurance-hour-with-karl-susman/id1711713889\">podcast host\u003c/a> Karl Susman called it a “good-faith gesture on Farmers’ part” given the impending regulatory changes.\u003c/p>\n\u003cp>“I think that what we’re going to see is every other carrier start following suit,” Susman said. “And at some point — I would like to think by the middle of next year — we won’t have quotas per se at all. We’ll just have the free and open market again.”\u003c/p>\n\u003cp>As part of the new regulations, California will require insurers to increase the writing of comprehensive policies in “wildfire-distressed” areas and account for mitigation steps taken by homeowners, businesses and communities. In exchange, companies will be allowed to use forward-looking risk modeling that takes into account the effects of climate change when they are setting rates.\u003c/p>\n\u003cp>[aside postID=news_12017695 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/IMG_3372_qed-1020x680.jpg']\u003c/p>\n\u003cp>Michael Soller, a spokesperson for the California Department of Insurance, said Farmers’ move was a positive step forward and “a clear sign that our reforms are having an impact.”\u003c/p>\n\u003cp>The announcement from Farmers explicitly endorses the new regulations, which are awaiting final approval by the state Office of Administrative Law.\u003c/p>\n\u003cp>“Farmers Insurance has decided to take these steps to increase coverage availability for California consumers because we recognize that the state’s insurance marketplace has indeed improved,” Behram Dinshaw, president of personal lines for Farmers Insurance, said in a statement. “In addition, with the impending implementation of Commissioner Ricardo Lara’s Sustainable Insurance Strategy in the coming year, we want to be well-positioned to provide even more coverage options to residents in the state.”\u003c/p>\n\u003cp>Large carriers, including Allstate and State Farm, have dramatically \u003ca href=\"https://www.npr.org/2024/06/26/nx-s1-5015738/california-hopes-to-lure-insurance-companies-back-with-extreme-regulation-overhaul\">pulled back from offering new\u003c/a> or renewed coverage in California, seeking to limit their financial liability in a market with regulations they considered outdated and a threat to their bottom line.\u003c/p>\n\u003cp>After Farmers’ announcement, Susman said he’s also seeing other insurance companies slowly open up the taps and offer more coverage in California again, noting that Mercury Insurance is “aggressively writing property insurance.”\u003c/p>\n\u003cp>“And a lot of the less-known carriers that you might not recognize the names of, they’ve been writing fairly aggressively in California. They’re raising the limits of coverage that they were willing to take,” Susman said. “Maybe they were only taking coverage up to $1 million, and now they’re a million and a half or $2 million. So definitely … the tide is already turning.”\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>In a hopeful sign for California’s \u003ca href=\"https://www.kqed.org/science/1985175/insurance-in-california-is-changing-heres-how-it-may-affect-you\">beleaguered insurance market\u003c/a>, Farmers Insurance said this week that it would reopen some closed lines of coverage and start writing more homeowners policies.\u003c/p>\n\u003cp>Beginning Saturday, the state’s second-largest homeowners insurance carrier \u003ca href=\"https://newsroom.farmers.com/2024-12-11-Recognizing-an-Improved-Insurance-Marketplace-in-California,-Farmers-Insurance-R-to-Expand-Its-Coverage-Options-in-the-State\">said it will resume offering\u003c/a> several types of coverage that have been closed to new customers in California for more than a year, including renters and condominium insurance. It will also bump up the number of new homeowners insurance policies it accepts each month from 7,000 to 9,500.\u003c/p>\n\u003cp>Insurance experts said the move signals a reversal of the yearslong trend of insurers offering less and less coverage in California following catastrophic wildfires and spikes in inflation. It comes as insurance companies are anticipating \u003ca href=\"https://www.kqed.org/news/12014632/california-insurance-regulators-aim-ease-coverage-crisis-new-rules\">an overhaul of state regulations\u003c/a>, known as the Sustainable Insurance Strategy, to be implemented any day now.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Insurance broker and \u003ca href=\"https://podcasts.apple.com/us/podcast/insurance-hour-with-karl-susman/id1711713889\">podcast host\u003c/a> Karl Susman called it a “good-faith gesture on Farmers’ part” given the impending regulatory changes.\u003c/p>\n\u003cp>“I think that what we’re going to see is every other carrier start following suit,” Susman said. “And at some point — I would like to think by the middle of next year — we won’t have quotas per se at all. We’ll just have the free and open market again.”\u003c/p>\n\u003cp>As part of the new regulations, California will require insurers to increase the writing of comprehensive policies in “wildfire-distressed” areas and account for mitigation steps taken by homeowners, businesses and communities. In exchange, companies will be allowed to use forward-looking risk modeling that takes into account the effects of climate change when they are setting rates.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Michael Soller, a spokesperson for the California Department of Insurance, said Farmers’ move was a positive step forward and “a clear sign that our reforms are having an impact.”\u003c/p>\n\u003cp>The announcement from Farmers explicitly endorses the new regulations, which are awaiting final approval by the state Office of Administrative Law.\u003c/p>\n\u003cp>“Farmers Insurance has decided to take these steps to increase coverage availability for California consumers because we recognize that the state’s insurance marketplace has indeed improved,” Behram Dinshaw, president of personal lines for Farmers Insurance, said in a statement. “In addition, with the impending implementation of Commissioner Ricardo Lara’s Sustainable Insurance Strategy in the coming year, we want to be well-positioned to provide even more coverage options to residents in the state.”\u003c/p>\n\u003cp>Large carriers, including Allstate and State Farm, have dramatically \u003ca href=\"https://www.npr.org/2024/06/26/nx-s1-5015738/california-hopes-to-lure-insurance-companies-back-with-extreme-regulation-overhaul\">pulled back from offering new\u003c/a> or renewed coverage in California, seeking to limit their financial liability in a market with regulations they considered outdated and a threat to their bottom line.\u003c/p>\n\u003cp>After Farmers’ announcement, Susman said he’s also seeing other insurance companies slowly open up the taps and offer more coverage in California again, noting that Mercury Insurance is “aggressively writing property insurance.”\u003c/p>\n\u003cp>“And a lot of the less-known carriers that you might not recognize the names of, they’ve been writing fairly aggressively in California. They’re raising the limits of coverage that they were willing to take,” Susman said. “Maybe they were only taking coverage up to $1 million, and now they’re a million and a half or $2 million. So definitely … the tide is already turning.”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"title": "San Francisco Wants to Make It Cheaper for Developers to Build Housing Downtown",
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"content": "\u003cp>To spur housing development downtown, San Francisco planning commissioners on Thursday will consider slashing development impact fees.\u003c/p>\n\u003cp>The move comes as the city is experiencing record-high office vacancy rates after businesses ditched their leases during the pandemic, leaving more than a third of the city’s office buildings vacant. With some national media outlets labeling San Francisco as falling into a “doom loop,” city and state lawmakers are trying to revitalize its empty downtown by adding more housing.\u003c/p>\n\u003cp>“We’re all invested in really trying to make downtown a place where people want to live and work and having people to fill the buildings that will fill the sidewalks will enable that to happen,” said Lily Langlois, a spokesperson for the city’s planning department.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Over the past two years, local officials have attempted to remove the many legislative barriers developers say have deterred them from taking on conversion projects downtown.\u003c/p>\n\u003cp>San Francisco planning commissioners on Thursday will consider removing another of those barriers: impact fees for commercial-to-housing conversion projects that, according to the Mayor’s Office, can add about $70,000 to $90,000 per unit — though Langlois said fees vary widely depending on the size of the project. Supporters say doing so would effectively open office space for housing along Market Street and heading north on Embarcadero. The policy would then head to the Board of Supervisors and the mayor for approval.\u003c/p>\n\u003cp>The conversion of office spaces into housing has its drawbacks. The city earns business tax revenue from offices, but not from homes and apartments. The impact fees that could be axed fund a host of city services, including child care, schools, and affordable housing, some of which are imposed only on certain neighborhoods, and others that apply citywide.\u003c/p>\n\u003cp>San Francisco city officials were not able to immediately provide KQED with information about how much revenue impact fees have generated in the downtown area that would be impacted by this proposal.\u003c/p>\n\u003cp>According to the city’s affordable housing department, the fees it receives for affordable housing are “highly variable” from year to year. Anne Stanley, a spokesperson for the Mayor’s Office of Housing and Community Development (MOHCD), said before the pandemic the impact fees that specifically went to her department averaged about $75 million annually. This year, those same fees generated less than $3 million, she said.\u003c/p>\n\u003cp>“The reality is that the current revenue coming from impact fees is so low that it doesn’t have a meaningful impact on affordable housing construction,” Stanley said. “Our perspective is that this legislation offers an acceptable tradeoff to kickstart housing production in downtown which will ultimately have a net-positive impact on San Francisco’s economy while adding much needed new homes to the neighborhood.”\u003c/p>\n\u003cp>Some developers and housing advocates see San Francisco’s struggling downtown as a self-fulfilling prophecy of the city’s choice in the 2010s to dedicate many of the buildings downtown exclusively for tech office and commercial use. According to a 2021 New York Times analysis with CoStar, a commercial real estate research organization, 74% of San Francisco’s downtown was dominated by office buildings with most of the city’s total jobs located there, prior to the pandemic.\u003c/p>\n\u003cp>“That’s not a particularly resilient land use pattern,” said Jack Sylvan, a San Francisco developer. “Finding ways to create something that is a better mix of uses is actually really good for the city in the long run.”\u003c/p>\n\u003cp>Other big cities have already learned this lesson and put the solution into practice. During the Gulf War recession of the early 1990s, many office buildings in New York’s lower Manhattan became vacant and underused. In 1995, the city offered tax abatements and zoning changes to those buildings, incentivizing developers to turn that space into housing. More than 6,500 new homes were created.\u003c/p>\n\u003cp>Thursday’s proposal is the latest attempt by city leaders to take a similar tack. Last year, the city established a plan to make it easier to convert office buildings into housing. So far, two projects have been approved, which will convert more than 119,000 square feet of vacant offices into more than 160 new apartments and studios.\u003c/p>\n\u003cp>As part of that plan, city officials identified real estate transfer taxes, property taxes and development impact fees as barriers to office-to-residential conversations.[aside label=\"Related Stories\" postID=\"news_11997102,arts_13967182,news_12013983\"]To tackle those barriers, city leaders put forward a ballot measure, Proposition C, which voters approved in March, that waives the city’s real estate transfer tax — which can amount to as much as 6% for properties valued at $25 million or more — for office-to-residential conversion projects. And, in September, Gov. Gavin Newsom signed a bill, AB 2488, by Assemblymember Phil Ting (D-San Francisco), which gives property tax breaks to San Francisco developers who convert office buildings into housing. The city plans to enact that policy locally next year.\u003c/p>\n\u003cp>In its report to planning commissioners, planning department staff said the proposal to remove impact fees would take care of this remaining hurdle.\u003c/p>\n\u003cp>“It goes right to the heart of what we need to reduce the costs,” said Marc Babsin, principal of the Emerald Fund, a San Francisco-based development company. “The city can’t control construction costs and it can’t control rents, but there are some fees and taxes that it can control.”\u003c/p>\n\u003cp>Babsin led one of the city’s most successful conversion projects, transforming the 100 Van Ness tower into 418 apartments in 2015. He said, right now, housing development “is not financially feasible,” with high construction and borrowing costs. So, cities must step in.\u003c/p>\n\u003cp>But he and other developers caution these fee waivers are just one part of revitalizing the city’s downtowns. Big Bay Area employers including Salesforce and Uber have started to institute stricter in-office policies in recent years. San Francisco supervisors plan to continue hosting night markets to enliven neighborhoods around the city. Amid the negative coverage San Francisco has gotten by national media outlets, Sylvan said the city “needs wins.”\u003c/p>\n\u003cp>“Perception is really important for when people decide to locate their company or have a conference,” he said. “Anything we can do to signal to people that San Francisco is investing in its downtowns is going to shift into something that is more diverse and more resilient.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>To spur housing development downtown, San Francisco planning commissioners on Thursday will consider slashing development impact fees.\u003c/p>\n\u003cp>The move comes as the city is experiencing record-high office vacancy rates after businesses ditched their leases during the pandemic, leaving more than a third of the city’s office buildings vacant. With some national media outlets labeling San Francisco as falling into a “doom loop,” city and state lawmakers are trying to revitalize its empty downtown by adding more housing.\u003c/p>\n\u003cp>“We’re all invested in really trying to make downtown a place where people want to live and work and having people to fill the buildings that will fill the sidewalks will enable that to happen,” said Lily Langlois, a spokesperson for the city’s planning department.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Over the past two years, local officials have attempted to remove the many legislative barriers developers say have deterred them from taking on conversion projects downtown.\u003c/p>\n\u003cp>San Francisco planning commissioners on Thursday will consider removing another of those barriers: impact fees for commercial-to-housing conversion projects that, according to the Mayor’s Office, can add about $70,000 to $90,000 per unit — though Langlois said fees vary widely depending on the size of the project. Supporters say doing so would effectively open office space for housing along Market Street and heading north on Embarcadero. The policy would then head to the Board of Supervisors and the mayor for approval.\u003c/p>\n\u003cp>The conversion of office spaces into housing has its drawbacks. The city earns business tax revenue from offices, but not from homes and apartments. The impact fees that could be axed fund a host of city services, including child care, schools, and affordable housing, some of which are imposed only on certain neighborhoods, and others that apply citywide.\u003c/p>\n\u003cp>San Francisco city officials were not able to immediately provide KQED with information about how much revenue impact fees have generated in the downtown area that would be impacted by this proposal.\u003c/p>\n\u003cp>According to the city’s affordable housing department, the fees it receives for affordable housing are “highly variable” from year to year. Anne Stanley, a spokesperson for the Mayor’s Office of Housing and Community Development (MOHCD), said before the pandemic the impact fees that specifically went to her department averaged about $75 million annually. This year, those same fees generated less than $3 million, she said.\u003c/p>\n\u003cp>“The reality is that the current revenue coming from impact fees is so low that it doesn’t have a meaningful impact on affordable housing construction,” Stanley said. “Our perspective is that this legislation offers an acceptable tradeoff to kickstart housing production in downtown which will ultimately have a net-positive impact on San Francisco’s economy while adding much needed new homes to the neighborhood.”\u003c/p>\n\u003cp>Some developers and housing advocates see San Francisco’s struggling downtown as a self-fulfilling prophecy of the city’s choice in the 2010s to dedicate many of the buildings downtown exclusively for tech office and commercial use. According to a 2021 New York Times analysis with CoStar, a commercial real estate research organization, 74% of San Francisco’s downtown was dominated by office buildings with most of the city’s total jobs located there, prior to the pandemic.\u003c/p>\n\u003cp>“That’s not a particularly resilient land use pattern,” said Jack Sylvan, a San Francisco developer. “Finding ways to create something that is a better mix of uses is actually really good for the city in the long run.”\u003c/p>\n\u003cp>Other big cities have already learned this lesson and put the solution into practice. During the Gulf War recession of the early 1990s, many office buildings in New York’s lower Manhattan became vacant and underused. In 1995, the city offered tax abatements and zoning changes to those buildings, incentivizing developers to turn that space into housing. More than 6,500 new homes were created.\u003c/p>\n\u003cp>Thursday’s proposal is the latest attempt by city leaders to take a similar tack. Last year, the city established a plan to make it easier to convert office buildings into housing. So far, two projects have been approved, which will convert more than 119,000 square feet of vacant offices into more than 160 new apartments and studios.\u003c/p>\n\u003cp>As part of that plan, city officials identified real estate transfer taxes, property taxes and development impact fees as barriers to office-to-residential conversations.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>To tackle those barriers, city leaders put forward a ballot measure, Proposition C, which voters approved in March, that waives the city’s real estate transfer tax — which can amount to as much as 6% for properties valued at $25 million or more — for office-to-residential conversion projects. And, in September, Gov. Gavin Newsom signed a bill, AB 2488, by Assemblymember Phil Ting (D-San Francisco), which gives property tax breaks to San Francisco developers who convert office buildings into housing. The city plans to enact that policy locally next year.\u003c/p>\n\u003cp>In its report to planning commissioners, planning department staff said the proposal to remove impact fees would take care of this remaining hurdle.\u003c/p>\n\u003cp>“It goes right to the heart of what we need to reduce the costs,” said Marc Babsin, principal of the Emerald Fund, a San Francisco-based development company. “The city can’t control construction costs and it can’t control rents, but there are some fees and taxes that it can control.”\u003c/p>\n\u003cp>Babsin led one of the city’s most successful conversion projects, transforming the 100 Van Ness tower into 418 apartments in 2015. He said, right now, housing development “is not financially feasible,” with high construction and borrowing costs. So, cities must step in.\u003c/p>\n\u003cp>But he and other developers caution these fee waivers are just one part of revitalizing the city’s downtowns. Big Bay Area employers including Salesforce and Uber have started to institute stricter in-office policies in recent years. San Francisco supervisors plan to continue hosting night markets to enliven neighborhoods around the city. Amid the negative coverage San Francisco has gotten by national media outlets, Sylvan said the city “needs wins.”\u003c/p>\n\u003cp>“Perception is really important for when people decide to locate their company or have a conference,” he said. “Anything we can do to signal to people that San Francisco is investing in its downtowns is going to shift into something that is more diverse and more resilient.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>\u003cem>Updated 9:40 a.m. Wednesday\u003c/em>\u003c/p>\n\u003cp>The \u003ca href=\"https://www.kqed.org/news/tag/berkeley\">Berkeley\u003c/a> City Council is considering creating a new cultural district on the city’s west side, which — thanks to a recently passed state law — could also include affordable housing for artists.\u003c/p>\n\u003cp>“This is something I’ve been thinking about for a long time,” said City Council member Terry Taplin, who is also a poet. “The need for affordable housing is a big part of my vision for the city — you know, Berkeley being this place where people come to create opportunities in society that they want to see.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The council voted Tuesday night to study the creation of a cultural district under AB 812, which went into effect this year. The law allows cities to create state-approved cultural districts and designate 10% of any affordable housing in the area for artists.\u003c/p>\n\u003cp>It also comes eight years after the deadly Ghost Ship fire in Oakland, which killed 36 people. The unlawfully converted warehouse was home to many artists and shined a light on the lack of safe and affordable housing for artists in the Bay Area.\u003c/p>\n\u003cfigure id=\"attachment_12016381\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12016381\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0273-DMB.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0273-DMB.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0273-DMB-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0273-DMB-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0273-DMB-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0273-DMB-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0273-DMB-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">The 2000 block of Center Street in downtown Berkeley on Monday, Dec. 2, 2024. \u003ccite>(David M. Barreda/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Kim Anno, a retiring member of the Berkeley Civic Arts Commission and notable painter, photographer and video artist, is part of the team of artists working with the City Council to create a cultural district. Some of her students died in the 2016 fire.\u003c/p>\n\u003cp>“It’s in my mind for the rest of my life, so creating a daylight for the need for housing is the first step,” she said. “The whole idea is to make a mutually beneficial ecosystem of the city so that the people who work here also live here.”\u003c/p>\n\u003cp>According to a \u003ca href=\"https://berkeleyca.gov/sites/default/files/legislative-body-meeting-attachments/1.19.2022%20Civic%20Arts%20Commission%20Agenda%20and%20Attachments.pdf#page=9\">2021 survey commissioned by the Berkeley Civic Arts Commission\u003c/a>, more than half of the artists who lived in the city earned $69,000 or less per year, which qualified them as “low income” in Alameda County. Less than a third of the 163 artists surveyed were employed full-time as artists, while others paid their expenses with the help of part-time or contract work.\u003c/p>\n\u003cfigure id=\"attachment_12016379\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12016379\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0098-DMB.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0098-DMB.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0098-DMB-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0098-DMB-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0098-DMB-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0098-DMB-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0098-DMB-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">The 2000 block of Addison Street in downtown Berkeley, on Monday, Dec. 2, 2024. \u003ccite>(David M. Barreda/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Tuesday’s City Council vote is only a small step toward creating a cultural district. If the council decides to move forward, members of the Civic Arts Commission, local artists and residents will weigh in on any plans, and state officials will have to certify the district before any affordable housing could be offered.\u003c/p>\n\u003cp>[aside postID=arts_13957645 hero='https://cdn.kqed.org/wp-content/uploads/sites/2/2024/05/1687-Market-Street-1920x1920.png']\u003c/p>\n\u003cp>In the meantime, organizations like \u003ca href=\"https://www.vitalarts.org/\">Vital Arts\u003c/a>, founded to honor the victims of the Ghost Ship fire, offer displacement prevention grants for artists in Alameda County dealing with high rents or looming threats of eviction.\u003c/p>\n\u003cp>In Oakland, the Unity Council, a nonprofit community development organization, is pursuing plans to develop affordable housing on the site of the Ghost Ship warehouse.\u003c/p>\n\u003cp>The company purchased the property in 2023 and construction could start on the site as early as 2026, \u003ca href=\"https://maryalexanderlaw.com/victims-families-of-tragic-ghost-ship-warehouse-fire-welcome-new-affordable-housing-proposal-at-site/#:~:text=The%20proposed%2076%2C000%2Dsquare%2Dfoot,limited%20availability%20of%20affordable%20options.\">according to Mary Alexander & Associates,\u003c/a> a law firm that represented 13 victims of the fire.\u003c/p>\n\u003cp>Cameron Woo, a current member of Berkeley’s Civic Arts Commission, said there is a “certain amount of synergy” around the need for more affordable housing and the benefits of artists living within a city.\u003c/p>\n\u003cp>“There’s the economic benefit of the arts programs that contribute to the health and well-being of a community — not only financially but culturally as well,” he said. “We know this is not the magic wand, the solution to all the needs of this community, but it’s one step.”\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cem>Updated 9:40 a.m. Wednesday\u003c/em>\u003c/p>\n\u003cp>The \u003ca href=\"https://www.kqed.org/news/tag/berkeley\">Berkeley\u003c/a> City Council is considering creating a new cultural district on the city’s west side, which — thanks to a recently passed state law — could also include affordable housing for artists.\u003c/p>\n\u003cp>“This is something I’ve been thinking about for a long time,” said City Council member Terry Taplin, who is also a poet. “The need for affordable housing is a big part of my vision for the city — you know, Berkeley being this place where people come to create opportunities in society that they want to see.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The council voted Tuesday night to study the creation of a cultural district under AB 812, which went into effect this year. The law allows cities to create state-approved cultural districts and designate 10% of any affordable housing in the area for artists.\u003c/p>\n\u003cp>It also comes eight years after the deadly Ghost Ship fire in Oakland, which killed 36 people. The unlawfully converted warehouse was home to many artists and shined a light on the lack of safe and affordable housing for artists in the Bay Area.\u003c/p>\n\u003cfigure id=\"attachment_12016381\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12016381\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0273-DMB.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0273-DMB.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0273-DMB-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0273-DMB-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0273-DMB-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0273-DMB-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0273-DMB-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">The 2000 block of Center Street in downtown Berkeley on Monday, Dec. 2, 2024. \u003ccite>(David M. Barreda/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Kim Anno, a retiring member of the Berkeley Civic Arts Commission and notable painter, photographer and video artist, is part of the team of artists working with the City Council to create a cultural district. Some of her students died in the 2016 fire.\u003c/p>\n\u003cp>“It’s in my mind for the rest of my life, so creating a daylight for the need for housing is the first step,” she said. “The whole idea is to make a mutually beneficial ecosystem of the city so that the people who work here also live here.”\u003c/p>\n\u003cp>According to a \u003ca href=\"https://berkeleyca.gov/sites/default/files/legislative-body-meeting-attachments/1.19.2022%20Civic%20Arts%20Commission%20Agenda%20and%20Attachments.pdf#page=9\">2021 survey commissioned by the Berkeley Civic Arts Commission\u003c/a>, more than half of the artists who lived in the city earned $69,000 or less per year, which qualified them as “low income” in Alameda County. Less than a third of the 163 artists surveyed were employed full-time as artists, while others paid their expenses with the help of part-time or contract work.\u003c/p>\n\u003cfigure id=\"attachment_12016379\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12016379\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0098-DMB.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0098-DMB.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0098-DMB-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0098-DMB-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0098-DMB-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0098-DMB-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/12/241202-BerkeleyArtistHousing-0098-DMB-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">The 2000 block of Addison Street in downtown Berkeley, on Monday, Dec. 2, 2024. \u003ccite>(David M. Barreda/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Tuesday’s City Council vote is only a small step toward creating a cultural district. If the council decides to move forward, members of the Civic Arts Commission, local artists and residents will weigh in on any plans, and state officials will have to certify the district before any affordable housing could be offered.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>In the meantime, organizations like \u003ca href=\"https://www.vitalarts.org/\">Vital Arts\u003c/a>, founded to honor the victims of the Ghost Ship fire, offer displacement prevention grants for artists in Alameda County dealing with high rents or looming threats of eviction.\u003c/p>\n\u003cp>In Oakland, the Unity Council, a nonprofit community development organization, is pursuing plans to develop affordable housing on the site of the Ghost Ship warehouse.\u003c/p>\n\u003cp>The company purchased the property in 2023 and construction could start on the site as early as 2026, \u003ca href=\"https://maryalexanderlaw.com/victims-families-of-tragic-ghost-ship-warehouse-fire-welcome-new-affordable-housing-proposal-at-site/#:~:text=The%20proposed%2076%2C000%2Dsquare%2Dfoot,limited%20availability%20of%20affordable%20options.\">according to Mary Alexander & Associates,\u003c/a> a law firm that represented 13 victims of the fire.\u003c/p>\n\u003cp>Cameron Woo, a current member of Berkeley’s Civic Arts Commission, said there is a “certain amount of synergy” around the need for more affordable housing and the benefits of artists living within a city.\u003c/p>\n\u003cp>“There’s the economic benefit of the arts programs that contribute to the health and well-being of a community — not only financially but culturally as well,” he said. “We know this is not the magic wand, the solution to all the needs of this community, but it’s one step.”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"content": "\u003cp>If you’ve hunted for apartments recently and felt like all the rents were equally high, you’re not crazy: Many landlords now use a single company’s software — which uses an algorithm based on proprietary lease information — to help set rent prices.\u003c/p>\n\u003cp>Federal prosecutors say the practice amounts to “an unlawful information-sharing scheme,” and some lawmakers throughout California are moving to curb it. San Diego’s city council president is the latest to do so, proposing to prevent local apartment owners from using the pricing software, which he maintains is driving up housing costs.\u003c/p>\n\u003cp>San Diego’s proposed ordinance, now being drafted by the city attorney, comes after San Francisco supervisors in July enacted a similar, \u003ca href=\"https://sfgov.legistar.com/View.ashx?M=F&ID=13157163&GUID=BC67A1E5-F3C7-4EF9-929A-46203D6E63B1\">first-in-the-nation ban\u003c/a> on “the sale or use of algorithmic devices to set rents or manage occupancy levels” for residences. \u003ca href=\"https://www.mercurynews.com/2024/09/05/san-jose-may-consider-ban-on-rent-setting-software-after-antitrust-suit/\">San Jose is considering\u003c/a> a similar approach.\u003c/p>\n\u003cp>And California and seven other states have also joined the federal prosecutors’ \u003ca href=\"https://www.justice.gov/opa/media/1364976/dl?inline\">antitrust suit\u003c/a>, which targets the leading rental pricing platform, Texas-based RealPage. The complaint alleges that “RealPage is an algorithmic intermediary that collects, combines, and exploits landlords’ competitively sensitive information. And in so doing, it enriches itself and compliant landlords at the expense of renters who pay inflated prices…”\u003c/p>\n\u003cp>However, state lawmakers, this year, failed to advance \u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240sb1154?_gl=1*skqse8*_gcl_au*Nzk3MzE2MDMuMTczMTAyMjU2Mg..*_ga*Mjk2NjI4MjAxLjE3MzEwMjI1NjI.*_ga_5TKXNLE5NK*MTczMzE2MjY3Ny4xMy4xLjE3MzMxNjM1NDYuNjAuMC4w*_ga_DX0K9PCWYH*MTczMzE2MjY3Ny4xMy4wLjE3MzMxNjI2NzcuMC4wLjA.*_ga_GNY4L81DZE*MTczMzE2MjY3Ny4xMy4wLjE3MzMxNjI2NzcuMC4wLjA.\">legislation\u003c/a> by Bakersfield Democratic \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/melissa-hurtado-165039?_gl=1*skqse8*_gcl_au*Nzk3MzE2MDMuMTczMTAyMjU2Mg..*_ga*Mjk2NjI4MjAxLjE3MzEwMjI1NjI.*_ga_5TKXNLE5NK*MTczMzE2MjY3Ny4xMy4xLjE3MzMxNjM1NDYuNjAuMC4w*_ga_DX0K9PCWYH*MTczMzE2MjY3Ny4xMy4wLjE3MzMxNjI2NzcuMC4wLjA.*_ga_GNY4L81DZE*MTczMzE2MjY3Ny4xMy4wLjE3MzMxNjI2NzcuMC4wLjA.\">Sen. Melissa Hurtado\u003c/a> that would have banned the use of any pricing algorithms based on nonpublic data provided by competing companies. She said she plans to bring the bill back during the next legislative session because of what she described as ongoing harms from such algorithms.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“We’ve got to make sure the economy is fair and … that every individual who wants a shot at creating a business has a shot without being destroyed along the way, and that we’re also protecting consumers because it is hurting the pocketbooks of everybody in one way or another,” Hurtado said.\u003c/p>\n\u003cp>RealPage has been a major impetus for all of the actions. The company counts as its customers landlords with thousands of apartment units across California. Some officials accused the company of thwarting competition that would otherwise drive rents down, exacerbating the state’s housing shortage and driving up rents in the process.\u003c/p>\n\u003cp>“Every day, millions of Californians worry about keeping a roof over their head and RealPage has directly made it more difficult to do so,” California Attorney General Rob Bonta said in a written statement.\u003c/p>\n\u003cp>A RealPage spokesperson, Jennifer Bowcock, told CalMatters that a lack of housing supply, not the company’s technology, is the real problem — and that its technology benefits residents, property managers, and others associated with the rental market. The spokesperson later wrote that a “misplaced focus on nonpublic information is a distraction… that will only make San Francisco and San Diego’s historical problems worse.”\u003c/p>\n\u003cp>As for the federal lawsuit, the company called the claims in it “devoid of merit” and said it plans to “vigorously defend ourselves against these accusations.”\u003c/p>\n\u003cp>“We are disappointed that, after multiple years of education and cooperation on the antitrust matters concerning RealPage, the (Justice Department) has chosen this moment to pursue a lawsuit that seeks to scapegoat pro-competitive technology that has been used responsibly for years,” the company’s statement read in part. “RealPage’s revenue management software is purposely built to be legally compliant, and we have a long history of working constructively with the (department) to show that.”\u003c/p>\n\u003cp>The company’s challenges will only grow if pricing software becomes another instance in which California lawmakers lead the nation. Following San Francisco’s ban, the Philadelphia City Council \u003ca href=\"https://phlcouncil.com/weekly-report-democracy-in-action-during-this-weeks-philadelphia-city-council-session/\">passed a ban on algorithmic rental price-fixing\u003c/a> with a veto-proof vote last month. \u003ca href=\"https://newjerseymonitor.com/2024/10/24/lawmakers-advance-bill-to-ban-landlords-use-of-rent-setting-software/\">New Jersey has been considering\u003c/a> its own ban.\u003c/p>\n\u003cfigure id=\"attachment_12006179\" class=\"wp-caption aligncenter\" style=\"max-width: 1999px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12006179\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed.jpg\" alt=\"\" width=\"1999\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed.jpg 1999w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-1920x1280.jpg 1920w\" sizes=\"(max-width: 1999px) 100vw, 1999px\">\u003cfigcaption class=\"wp-caption-text\">A “For Rent” sign hangs in the window of an apartment building in San Francisco on July 29, 2021. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2>Is it price fixing — or coaching landlords?\u003c/h2>\n\u003cp>According to federal prosecutors, RealPage controls 80% of the market for commercial revenue management software. Its product is called YieldStar, and its successor is AI Revenue Management, which uses much of the same codebase as YieldStar but has more precise forecasting. RealPage told CalMatters it serves only 10% of the rental markets in both San Francisco and San Diego across its three revenue management software products.\u003c/p>\n\u003cp>Here’s how it works:\u003c/p>\n\u003cp>In order to use YieldStar and AIRM, landlords have historically provided RealPage with their own private data from their rental applications, rent prices, executed new leases, renewal offers and acceptances, and estimates of future occupancy, although a recent change allows landlords to choose to share only public data. This information from all participating landlords in an area is then pooled and run through mathematical forecasting to generate pricing recommendations for the landlords and their competitors.\u003c/p>\n\u003cp>The San Diego council president, Sean Elo-Rivera, explained it like this:\u003c/p>\n\u003cp>“In the simplest terms, what this platform is doing is providing what we think of as that dark, smoky room for big companies to get together and set prices,” he said. “The technology is being used as a way of keeping an arm’s length from one big company to the other. But that’s an illusion.”\u003c/p>\n\u003cp>In the company’s own words, from company documents included in the lawsuit, RealPage “ensures that (landlords) are driving every possible opportunity to increase price even in the most downward trending or unexpected conditions.” The company also said in the documents that it “helps curb (landlords’) instincts to respond to down-market conditions by either dramatically lowering price or by holding price.”\u003c/p>\n\u003cp>Providing rent guidance isn’t the only service RealPage has offered landlords. In 2020, \u003ca href=\"https://themarkup.org/locked-out/2020/05/28/access-denied-faulty-automated-background-checks-freeze-out-renters\">a Markup and \u003cem>New York Times\u003c/em> investigation\u003c/a> found that RealPage, alongside other companies, used faulty computer algorithms to do automated background checks on tenants. As a result, tenants were associated with criminal charges they never faced and denied homes.\u003c/p>\n\u003ch2>Impact on tenants\u003c/h2>\n\u003cp>Thirty-one-year-old Navy veteran Alan Pickens and his wife move nearly every year, “Because the rent goes up, it gets unaffordable, so we look for a new place to stay,” he said. The northeastern San Diego apartment complex where they just relocated has two-bedroom apartments advertised for between $2,995 and $3,215.\u003c/p>\n\u003cp>They live in an area of San Diego where the U.S. Justice Department said information-sharing agreements between landlords and RealPage have harmed or are likely to harm renters.\u003c/p>\n\u003cp>The department in August filed its antitrust lawsuit against RealPage, alleging the company, through its legacy YieldStar software, engaged in an “\u003ca href=\"https://www.justice.gov/opa/pr/justice-department-sues-realpage-algorithmic-pricing-scheme-harms-millions-american-renters\">unlawful scheme to decrease competition among landlords in apartment pricing.\u003c/a>” The complaint names specific areas where rents are artificially high. Beyond the part of San Diego where Pickens lives, those areas include South Orange County, Rancho Cucamonga, Temecula, and Murrieta and northeastern San Diego.\u003c/p>\n\u003cp>In the second quarter of 2020, the average rent in San Diego County was $1,926, reflecting a 26% increase over three years, \u003ca href=\"https://www.sandiegouniontribune.com/2023/09/11/san-diego-rents-are-cooling-off-heres-how-changes-break-down-by-area/#:~:text=In%20the%20second%20quarter%20of,was%20a%20few%20years%20ago.\">according to the \u003cem>San Diego Union-Tribune\u003c/em>\u003c/a>. Rents have since risen even more in the city of San Diego, to $2,336 per month as of November 2024 – up 21% from 2020, \u003ca href=\"https://www.rentcafe.com/average-rent-market-trends/us/ca/san-diego/\">according to RentCafe\u003c/a> and the \u003cem>Tribune\u003c/em>. That’s 50% higher than the national average rent.\u003c/p>\n\u003cp>The attorneys general of eight states, including California, joined the Justice Department’s antitrust suit, filed in the U.S. District Court for the Middle District of North Carolina.\u003c/p>\n\u003cp>The California Justice Department contends RealPage artificially inflated prices to keep them above a certain minimum level, department spokesperson Elissa Perez said. This was particularly harmful given the high cost of housing in the state, she added. “The illegally maintained profits that result from these price alignment schemes come out of the pockets of the people that can least afford it.”\u003c/p>\n\u003cp>Renters \u003ca href=\"https://www.ppic.org/blog/californias-renters/\">make up a larger share of households\u003c/a> in California than in the rest of the country — 44% here compared to 35% nationwide. The Golden State also has a higher percentage of renters than any state other than New York, according to the \u003ca href=\"https://data.census.gov/table/ACSST1Y2023.S1901?q=rent&g=010XX00US%240400000\">latest U.S. Census data\u003c/a>.\u003c/p>\n\u003cp>San Diego has the \u003ca href=\"https://www.sandiegouniontribune.com/2024/11/07/a-city-of-renters-san-diego-has-fourth-highest-percentage-of-renters-in-the-u-s/\">fourth-highest percentage of renters of any major city in the nation\u003c/a>.\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">[aside label='More Housing Coverage' tag='housing']\u003c/span>\u003c/p>\n\u003cp>The recent ranks of California legislators, however, have included few renters: As of 2019, CalMatters could \u003ca href=\"https://calmatters.org/politics/2019/04/california-legislature-lawmakers-who-are-landlords/\">find only one state lawmaker who did not own a home\u003c/a> — and found that more than a quarter of legislators at the time were landlords.\u003c/p>\n\u003cp>Studies show that rising rents impact low-income residents more heavily. Nationally, between 2000 and 2017, Americans without a college degree spent a higher percentage of their income on rent. That percentage ballooned from 30% to 42%. For college graduates, that percentage increased from 26% to 34%.\u003c/p>\n\u003cp>“In my estimation, the only winners in this situation are the richest companies who are either using this technology or creating this technology,” Elo-Rivera said. “There couldn’t be a more clear example of the rich getting richer while the rest of us are struggling to get by.”\u003c/p>\n\u003ch2>The state has invested in RealPage\u003c/h2>\n\u003cp>Private equity giant Thoma Bravo \u003ca href=\"https://www.sec.gov/Archives/edgar/data/1286225/000119312521011569/d52613dprem14a.htm\">acquired RealPage in January 2021\u003c/a> through two funds that have hundreds of millions of dollars in investments from California public pension funds, including the California Public Employees’ Retirement System, the California State Teachers’ Retirement System, the Regents of the University of California and the Los Angeles police and fire pension funds, according to the Private Equity Stakeholder Project.\u003c/p>\n\u003cp>“They’re invested in things that are directly hurting their pensioners,” said K Agbebiyi, a senior housing campaign coordinator with the Private Equity Stakeholder Project, a nonprofit private equity watchdog that \u003ca href=\"https://pestakeholder.org/wp-content/uploads/2024/07/PESP_Report_Helter_Shelter_2024.pdf\">produced a report about corporate landlords’\u003c/a> impact on rental hikes in San Diego.\u003c/p>\n\u003cp>RealPage argues that landlords are free to reject the price recommendations generated by its software. However, the U.S. Justice Department alleges that trying to do so requires a series of steps, including a conversation with a RealPage pricing adviser. The advisers try to “stop property managers from acting on emotions,” according to the department’s lawsuit.\u003c/p>\n\u003cp>If a property manager disagrees with the price the algorithm suggests and wants to decrease rent rather than increase it, a pricing adviser will “escalate the dispute to the manager’s superior,” prosecutors allege in the suit.\u003c/p>\n\u003cp>In San Diego, the Pickenses, who are expecting their first child, have given up their gym memberships and downsized their cars to remain in the area. They’ve considered moving to Denver.\u003c/p>\n\u003cp>“All the extras pretty much have to go,” Pickens said. “I mean, we love San Diego, but it’s getting hard to live here.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>“My wife is an attorney, and I served in the Navy for 10 years and now work at Qualcomm,” he said. “Why are we struggling? Why are we struggling?”\u003c/p>\n\n",
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"title": "More California Cities Are Banning Landlords From Using AI Software to Raise Rents | KQED",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>If you’ve hunted for apartments recently and felt like all the rents were equally high, you’re not crazy: Many landlords now use a single company’s software — which uses an algorithm based on proprietary lease information — to help set rent prices.\u003c/p>\n\u003cp>Federal prosecutors say the practice amounts to “an unlawful information-sharing scheme,” and some lawmakers throughout California are moving to curb it. San Diego’s city council president is the latest to do so, proposing to prevent local apartment owners from using the pricing software, which he maintains is driving up housing costs.\u003c/p>\n\u003cp>San Diego’s proposed ordinance, now being drafted by the city attorney, comes after San Francisco supervisors in July enacted a similar, \u003ca href=\"https://sfgov.legistar.com/View.ashx?M=F&ID=13157163&GUID=BC67A1E5-F3C7-4EF9-929A-46203D6E63B1\">first-in-the-nation ban\u003c/a> on “the sale or use of algorithmic devices to set rents or manage occupancy levels” for residences. \u003ca href=\"https://www.mercurynews.com/2024/09/05/san-jose-may-consider-ban-on-rent-setting-software-after-antitrust-suit/\">San Jose is considering\u003c/a> a similar approach.\u003c/p>\n\u003cp>And California and seven other states have also joined the federal prosecutors’ \u003ca href=\"https://www.justice.gov/opa/media/1364976/dl?inline\">antitrust suit\u003c/a>, which targets the leading rental pricing platform, Texas-based RealPage. The complaint alleges that “RealPage is an algorithmic intermediary that collects, combines, and exploits landlords’ competitively sensitive information. And in so doing, it enriches itself and compliant landlords at the expense of renters who pay inflated prices…”\u003c/p>\n\u003cp>However, state lawmakers, this year, failed to advance \u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240sb1154?_gl=1*skqse8*_gcl_au*Nzk3MzE2MDMuMTczMTAyMjU2Mg..*_ga*Mjk2NjI4MjAxLjE3MzEwMjI1NjI.*_ga_5TKXNLE5NK*MTczMzE2MjY3Ny4xMy4xLjE3MzMxNjM1NDYuNjAuMC4w*_ga_DX0K9PCWYH*MTczMzE2MjY3Ny4xMy4wLjE3MzMxNjI2NzcuMC4wLjA.*_ga_GNY4L81DZE*MTczMzE2MjY3Ny4xMy4wLjE3MzMxNjI2NzcuMC4wLjA.\">legislation\u003c/a> by Bakersfield Democratic \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/melissa-hurtado-165039?_gl=1*skqse8*_gcl_au*Nzk3MzE2MDMuMTczMTAyMjU2Mg..*_ga*Mjk2NjI4MjAxLjE3MzEwMjI1NjI.*_ga_5TKXNLE5NK*MTczMzE2MjY3Ny4xMy4xLjE3MzMxNjM1NDYuNjAuMC4w*_ga_DX0K9PCWYH*MTczMzE2MjY3Ny4xMy4wLjE3MzMxNjI2NzcuMC4wLjA.*_ga_GNY4L81DZE*MTczMzE2MjY3Ny4xMy4wLjE3MzMxNjI2NzcuMC4wLjA.\">Sen. Melissa Hurtado\u003c/a> that would have banned the use of any pricing algorithms based on nonpublic data provided by competing companies. She said she plans to bring the bill back during the next legislative session because of what she described as ongoing harms from such algorithms.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“We’ve got to make sure the economy is fair and … that every individual who wants a shot at creating a business has a shot without being destroyed along the way, and that we’re also protecting consumers because it is hurting the pocketbooks of everybody in one way or another,” Hurtado said.\u003c/p>\n\u003cp>RealPage has been a major impetus for all of the actions. The company counts as its customers landlords with thousands of apartment units across California. Some officials accused the company of thwarting competition that would otherwise drive rents down, exacerbating the state’s housing shortage and driving up rents in the process.\u003c/p>\n\u003cp>“Every day, millions of Californians worry about keeping a roof over their head and RealPage has directly made it more difficult to do so,” California Attorney General Rob Bonta said in a written statement.\u003c/p>\n\u003cp>A RealPage spokesperson, Jennifer Bowcock, told CalMatters that a lack of housing supply, not the company’s technology, is the real problem — and that its technology benefits residents, property managers, and others associated with the rental market. The spokesperson later wrote that a “misplaced focus on nonpublic information is a distraction… that will only make San Francisco and San Diego’s historical problems worse.”\u003c/p>\n\u003cp>As for the federal lawsuit, the company called the claims in it “devoid of merit” and said it plans to “vigorously defend ourselves against these accusations.”\u003c/p>\n\u003cp>“We are disappointed that, after multiple years of education and cooperation on the antitrust matters concerning RealPage, the (Justice Department) has chosen this moment to pursue a lawsuit that seeks to scapegoat pro-competitive technology that has been used responsibly for years,” the company’s statement read in part. “RealPage’s revenue management software is purposely built to be legally compliant, and we have a long history of working constructively with the (department) to show that.”\u003c/p>\n\u003cp>The company’s challenges will only grow if pricing software becomes another instance in which California lawmakers lead the nation. Following San Francisco’s ban, the Philadelphia City Council \u003ca href=\"https://phlcouncil.com/weekly-report-democracy-in-action-during-this-weeks-philadelphia-city-council-session/\">passed a ban on algorithmic rental price-fixing\u003c/a> with a veto-proof vote last month. \u003ca href=\"https://newjerseymonitor.com/2024/10/24/lawmakers-advance-bill-to-ban-landlords-use-of-rent-setting-software/\">New Jersey has been considering\u003c/a> its own ban.\u003c/p>\n\u003cfigure id=\"attachment_12006179\" class=\"wp-caption aligncenter\" style=\"max-width: 1999px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12006179\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed.jpg\" alt=\"\" width=\"1999\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed.jpg 1999w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/09/011_SanFrancisco_Housing_07292021_qed-1920x1280.jpg 1920w\" sizes=\"(max-width: 1999px) 100vw, 1999px\">\u003cfigcaption class=\"wp-caption-text\">A “For Rent” sign hangs in the window of an apartment building in San Francisco on July 29, 2021. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2>Is it price fixing — or coaching landlords?\u003c/h2>\n\u003cp>According to federal prosecutors, RealPage controls 80% of the market for commercial revenue management software. Its product is called YieldStar, and its successor is AI Revenue Management, which uses much of the same codebase as YieldStar but has more precise forecasting. RealPage told CalMatters it serves only 10% of the rental markets in both San Francisco and San Diego across its three revenue management software products.\u003c/p>\n\u003cp>Here’s how it works:\u003c/p>\n\u003cp>In order to use YieldStar and AIRM, landlords have historically provided RealPage with their own private data from their rental applications, rent prices, executed new leases, renewal offers and acceptances, and estimates of future occupancy, although a recent change allows landlords to choose to share only public data. This information from all participating landlords in an area is then pooled and run through mathematical forecasting to generate pricing recommendations for the landlords and their competitors.\u003c/p>\n\u003cp>The San Diego council president, Sean Elo-Rivera, explained it like this:\u003c/p>\n\u003cp>“In the simplest terms, what this platform is doing is providing what we think of as that dark, smoky room for big companies to get together and set prices,” he said. “The technology is being used as a way of keeping an arm’s length from one big company to the other. But that’s an illusion.”\u003c/p>\n\u003cp>In the company’s own words, from company documents included in the lawsuit, RealPage “ensures that (landlords) are driving every possible opportunity to increase price even in the most downward trending or unexpected conditions.” The company also said in the documents that it “helps curb (landlords’) instincts to respond to down-market conditions by either dramatically lowering price or by holding price.”\u003c/p>\n\u003cp>Providing rent guidance isn’t the only service RealPage has offered landlords. In 2020, \u003ca href=\"https://themarkup.org/locked-out/2020/05/28/access-denied-faulty-automated-background-checks-freeze-out-renters\">a Markup and \u003cem>New York Times\u003c/em> investigation\u003c/a> found that RealPage, alongside other companies, used faulty computer algorithms to do automated background checks on tenants. As a result, tenants were associated with criminal charges they never faced and denied homes.\u003c/p>\n\u003ch2>Impact on tenants\u003c/h2>\n\u003cp>Thirty-one-year-old Navy veteran Alan Pickens and his wife move nearly every year, “Because the rent goes up, it gets unaffordable, so we look for a new place to stay,” he said. The northeastern San Diego apartment complex where they just relocated has two-bedroom apartments advertised for between $2,995 and $3,215.\u003c/p>\n\u003cp>They live in an area of San Diego where the U.S. Justice Department said information-sharing agreements between landlords and RealPage have harmed or are likely to harm renters.\u003c/p>\n\u003cp>The department in August filed its antitrust lawsuit against RealPage, alleging the company, through its legacy YieldStar software, engaged in an “\u003ca href=\"https://www.justice.gov/opa/pr/justice-department-sues-realpage-algorithmic-pricing-scheme-harms-millions-american-renters\">unlawful scheme to decrease competition among landlords in apartment pricing.\u003c/a>” The complaint names specific areas where rents are artificially high. Beyond the part of San Diego where Pickens lives, those areas include South Orange County, Rancho Cucamonga, Temecula, and Murrieta and northeastern San Diego.\u003c/p>\n\u003cp>In the second quarter of 2020, the average rent in San Diego County was $1,926, reflecting a 26% increase over three years, \u003ca href=\"https://www.sandiegouniontribune.com/2023/09/11/san-diego-rents-are-cooling-off-heres-how-changes-break-down-by-area/#:~:text=In%20the%20second%20quarter%20of,was%20a%20few%20years%20ago.\">according to the \u003cem>San Diego Union-Tribune\u003c/em>\u003c/a>. Rents have since risen even more in the city of San Diego, to $2,336 per month as of November 2024 – up 21% from 2020, \u003ca href=\"https://www.rentcafe.com/average-rent-market-trends/us/ca/san-diego/\">according to RentCafe\u003c/a> and the \u003cem>Tribune\u003c/em>. That’s 50% higher than the national average rent.\u003c/p>\n\u003cp>The attorneys general of eight states, including California, joined the Justice Department’s antitrust suit, filed in the U.S. District Court for the Middle District of North Carolina.\u003c/p>\n\u003cp>The California Justice Department contends RealPage artificially inflated prices to keep them above a certain minimum level, department spokesperson Elissa Perez said. This was particularly harmful given the high cost of housing in the state, she added. “The illegally maintained profits that result from these price alignment schemes come out of the pockets of the people that can least afford it.”\u003c/p>\n\u003cp>Renters \u003ca href=\"https://www.ppic.org/blog/californias-renters/\">make up a larger share of households\u003c/a> in California than in the rest of the country — 44% here compared to 35% nationwide. The Golden State also has a higher percentage of renters than any state other than New York, according to the \u003ca href=\"https://data.census.gov/table/ACSST1Y2023.S1901?q=rent&g=010XX00US%240400000\">latest U.S. Census data\u003c/a>.\u003c/p>\n\u003cp>San Diego has the \u003ca href=\"https://www.sandiegouniontribune.com/2024/11/07/a-city-of-renters-san-diego-has-fourth-highest-percentage-of-renters-in-the-u-s/\">fourth-highest percentage of renters of any major city in the nation\u003c/a>.\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/span>\u003c/p>\n\u003cp>The recent ranks of California legislators, however, have included few renters: As of 2019, CalMatters could \u003ca href=\"https://calmatters.org/politics/2019/04/california-legislature-lawmakers-who-are-landlords/\">find only one state lawmaker who did not own a home\u003c/a> — and found that more than a quarter of legislators at the time were landlords.\u003c/p>\n\u003cp>Studies show that rising rents impact low-income residents more heavily. Nationally, between 2000 and 2017, Americans without a college degree spent a higher percentage of their income on rent. That percentage ballooned from 30% to 42%. For college graduates, that percentage increased from 26% to 34%.\u003c/p>\n\u003cp>“In my estimation, the only winners in this situation are the richest companies who are either using this technology or creating this technology,” Elo-Rivera said. “There couldn’t be a more clear example of the rich getting richer while the rest of us are struggling to get by.”\u003c/p>\n\u003ch2>The state has invested in RealPage\u003c/h2>\n\u003cp>Private equity giant Thoma Bravo \u003ca href=\"https://www.sec.gov/Archives/edgar/data/1286225/000119312521011569/d52613dprem14a.htm\">acquired RealPage in January 2021\u003c/a> through two funds that have hundreds of millions of dollars in investments from California public pension funds, including the California Public Employees’ Retirement System, the California State Teachers’ Retirement System, the Regents of the University of California and the Los Angeles police and fire pension funds, according to the Private Equity Stakeholder Project.\u003c/p>\n\u003cp>“They’re invested in things that are directly hurting their pensioners,” said K Agbebiyi, a senior housing campaign coordinator with the Private Equity Stakeholder Project, a nonprofit private equity watchdog that \u003ca href=\"https://pestakeholder.org/wp-content/uploads/2024/07/PESP_Report_Helter_Shelter_2024.pdf\">produced a report about corporate landlords’\u003c/a> impact on rental hikes in San Diego.\u003c/p>\n\u003cp>RealPage argues that landlords are free to reject the price recommendations generated by its software. However, the U.S. Justice Department alleges that trying to do so requires a series of steps, including a conversation with a RealPage pricing adviser. The advisers try to “stop property managers from acting on emotions,” according to the department’s lawsuit.\u003c/p>\n\u003cp>If a property manager disagrees with the price the algorithm suggests and wants to decrease rent rather than increase it, a pricing adviser will “escalate the dispute to the manager’s superior,” prosecutors allege in the suit.\u003c/p>\n\u003cp>In San Diego, the Pickenses, who are expecting their first child, have given up their gym memberships and downsized their cars to remain in the area. They’ve considered moving to Denver.\u003c/p>\n\u003cp>“All the extras pretty much have to go,” Pickens said. “I mean, we love San Diego, but it’s getting hard to live here.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“My wife is an attorney, and I served in the Navy for 10 years and now work at Qualcomm,” he said. “Why are we struggling? Why are we struggling?”\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>Santa Clara officials are betting on another major development plan to help drastically revamp the northern edge of the city near Levi’s Stadium.\u003c/p>\n\u003cp>The area has long been home to low-slung office parks, light industrial uses and the city’s convention center, along with California’s Great America and Mission College. However, a series of long-range city planning efforts and a slew of ambitious development proposals envision the area reshaped into a haven of housing, entertainment, offices, shopping and dining.\u003c/p>\n\u003cp>Demand for office space and hotels has been sluggish in the wide wake of the pandemic, and large-scale developments have faced financing challenges, in part causing some sites to languish for years, while one recently approved project might not take shape for a decade or up to a quarter century.\u003c/p>\n\u003cp>“We have a lot of potential, but we’ve been talking about potential for the last 20 years,” Councilmember Kevin Park told KQED News. “What I want to see now is execution.”\u003c/p>\n\u003cp>Last week, the city council unanimously approved a developer’s plan for 3 million square feet of office or R&D space, along with anywhere from 1,800 to 2,600 apartments, with 15% of them required to be below market rates. The development is also expected to have about 100,000 square feet of retail space, up to 7.6 acres of parks and 10,000 square feet of child care facilities, \u003ca href=\"https://santaclara.legistar.com/LegislationDetail.aspx?ID=7025923&GUID=ECE63577-0311-4348-818F-F5E2117CFCB6\">city reports\u003c/a> said.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The plan from Kylli, a Bay Area-based subsidiary of Chinese investment firm Genzon Group, is set to be built on a 48.6-acre site near the corner of Tasman and Old Ironsides drives, which Kylli owns and is largely made up of a parking lot currently used by Levi’s Stadium during events, along with four office buildings.\u003c/p>\n\u003cp>Mayor Lisa Gillmor called the project a “valuable lynchpin” toward the success of the northside during the Nov. 19 meeting where the plan was greenlit.\u003c/p>\n\u003cp>“This is going to bring a different dynamic to that area. Once you have residential development and the mixed-use, there’s a vibrancy that comes along with it,” Gillmor said.\u003c/p>\n\u003cp>While the project was supported widely by business advocates, residents and pro-housing coalitions, all the excitement may be on hold for a while.\u003c/p>\n\u003cp>The city and Kylli agreed to a contract that allows the developer 10 years to complete the project, with options for extending the development timeline to a total of 25 years if certain milestones are achieved or if the developer pays fees for unbuilt portions.\u003c/p>\n\u003cp>Santa Clara could be waiting for up to 10 years and receive nothing in return if the developer were to walk away from the project altogether, but officials are hoping the developer will follow through on its aims and say the agreement is necessary for such a large development in a rocky financing cycle.\u003c/p>\n\u003cp>“We can’t force it. Some people don’t understand that,” Gillmor told KQED. “When the market becomes available to finance these types of projects, believe me, they’re going to build. They will.”\u003c/p>\n\u003cp>Reena Brilliot, the city’s director of economic development and sustainability, said when crafting the agreement, the city had to consider that the large project would likely need to be built across multiple market cycles and that it includes a significant portion of new office space, for which there is little to no demand currently.\u003c/p>\n\u003cp>“We are aware that the office market is quite soft, and there isn’t a clear trajectory on when that’s going to change with remote work being still in flux,” Brilliot said.\u003c/p>\n\u003cp>The approval allows the developer to shrink some of its office space plans in exchange for more housing units to help boost the viability of the project and meet market demands if needed. The contract also asks the developer to build valuable community benefits first, such as 90 of the affordable apartments by 2031, and either the child care facilities or a grocery store by the 10-year mark.\u003c/p>\n\u003cp>If the developer meets those goals or chooses to pay a fee of $1 per square foot of unbuilt project square footage if it doesn’t, then it can request the first of three five-year extension options.\u003c/p>\n\u003cp>“We’re tying (the extensions) to the things that matter to us from a community benefit standpoint with the realization that they’re likely not going to build those in a standalone fashion,” Brilliot said.\u003c/p>\n\u003cp>Santa Clara is not new to big plans and indeed has laid out major growth blueprints all around the stadium. Just last week, the council approved the first 284 apartments of a potential 12,000 planned for a 74-acre area filled with offices that run along Patrick Henry Drive, sandwiched between Mission College and the Kylli development site.\u003c/p>\n\u003cp>The city’s major plans also include the Tasman East area, where some successes have already been notched. On the 45-acre plot just northeast of Levi’s, several developers are working on roughly 4,500 residential units, some of which are complete, some which are largely constructed and some are still in the pipeline, all following a 2018 plan approved by city leaders.\u003c/p>\n\u003cp>While the Tasman East work has moved along relatively smoothly, the city has also seen its share of unexpected delays throwing a wrench into much-ballyhooed plans for major developments.\u003c/p>\n\u003cp>The Related Companies, a massive New York City-based development firm, has long planned to build a landmark $8 billion project in Santa Clara directly across from Levi’s and Tasman East, known as Related Santa Clara, that was originally set to include a total of 9 million square feet of homes, offices, hotels and restaurants, all on 240-acres of city-owned land.\u003c/p>\n\u003cp>However, since its 2016 approval, some site work has been completed, but nothing has been built. The project faced lawsuits out of the gate from San José and later faced challenges about Related’s plan to pay workers less than prevailing wages, and requires careful environmental planning because much of it is being built on a former landfill site.\u003c/p>\n\u003cp>It has also contended with the same market forces shifting other projects. Related was able to secure nearly $700 million in financing to build two projects in the Tasman East area in recent years.\u003c/p>\n\u003cp>Challenges aside, some leaders have grown frustrated with the lack of construction over eight years for the large project, especially because of the developer’s size.[aside label=\"Related Stories\" postID=\"news_12012008,news_12014393,news_12014710\"]“They’re Related,” Park said. At some point, if they can’t make a plan to build this, then who?”\u003c/p>\n\u003cp>Related has, in the last year, submitted an alternate plan to replace millions of square feet of office space with industrial manufacturing uses on the site and consolidate some of the office space into other portions of the land, but the city is still reviewing that plan. The developer has continued to pay rent to the city annually during the delays.\u003c/p>\n\u003cp>A spokesperson for Related Santa Clara did not respond to a request for comment.\u003c/p>\n\u003cp>The long holdup for Related Santa Clara gives Park concern about the extended timeline options for Kylli and other potential similar agreements that might undergird developments aimed at renewing the city’s north end.\u003c/p>\n\u003cp>“I don’t like long timelines. With every long timeline you give, you hope it’s because it gives you a higher percentage of completion or possibility of completion,” he said.\u003c/p>\n\u003cp>Representatives for Kylli say the developer has every intention of building the project, though the company has paid attention to the bevy of challenges other developers are facing, informing how the development agreement was structured.\u003c/p>\n\u003cp>“Every developer and every project has its own story,” said Wendi Baker, the chief operating officer of Los Gatos-based Harmonie Park Development, who is working as a consultant on the Kylli project. “We saw all of those stories unfolding before us, and we really tried to create the best opportunity for success for all of us here, the developer, the city, the community.”\u003c/p>\n\u003cp>Despite concerns council members and others may have, Park and Gillmor said the city and its leaders need to keep pressing forward in planning for hubs that attract and benefit residents and visitors. The city is leaning on trust that developers will come through, like with past successes at Rivermark and Santa Clara Square, two major mixed-use developments in the city.\u003c/p>\n\u003cp>“If we can’t look at a developer and take them at face value and take them in good faith, if we try to be too clever, I just don’t think that’s a good thing,” Park said. “We can’t look at the possible downsides and not approve projects. We have to look at the possible upsides.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Santa Clara officials are betting on another major development plan to help drastically revamp the northern edge of the city near Levi’s Stadium.\u003c/p>\n\u003cp>The area has long been home to low-slung office parks, light industrial uses and the city’s convention center, along with California’s Great America and Mission College. However, a series of long-range city planning efforts and a slew of ambitious development proposals envision the area reshaped into a haven of housing, entertainment, offices, shopping and dining.\u003c/p>\n\u003cp>Demand for office space and hotels has been sluggish in the wide wake of the pandemic, and large-scale developments have faced financing challenges, in part causing some sites to languish for years, while one recently approved project might not take shape for a decade or up to a quarter century.\u003c/p>\n\u003cp>“We have a lot of potential, but we’ve been talking about potential for the last 20 years,” Councilmember Kevin Park told KQED News. “What I want to see now is execution.”\u003c/p>\n\u003cp>Last week, the city council unanimously approved a developer’s plan for 3 million square feet of office or R&D space, along with anywhere from 1,800 to 2,600 apartments, with 15% of them required to be below market rates. The development is also expected to have about 100,000 square feet of retail space, up to 7.6 acres of parks and 10,000 square feet of child care facilities, \u003ca href=\"https://santaclara.legistar.com/LegislationDetail.aspx?ID=7025923&GUID=ECE63577-0311-4348-818F-F5E2117CFCB6\">city reports\u003c/a> said.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The plan from Kylli, a Bay Area-based subsidiary of Chinese investment firm Genzon Group, is set to be built on a 48.6-acre site near the corner of Tasman and Old Ironsides drives, which Kylli owns and is largely made up of a parking lot currently used by Levi’s Stadium during events, along with four office buildings.\u003c/p>\n\u003cp>Mayor Lisa Gillmor called the project a “valuable lynchpin” toward the success of the northside during the Nov. 19 meeting where the plan was greenlit.\u003c/p>\n\u003cp>“This is going to bring a different dynamic to that area. Once you have residential development and the mixed-use, there’s a vibrancy that comes along with it,” Gillmor said.\u003c/p>\n\u003cp>While the project was supported widely by business advocates, residents and pro-housing coalitions, all the excitement may be on hold for a while.\u003c/p>\n\u003cp>The city and Kylli agreed to a contract that allows the developer 10 years to complete the project, with options for extending the development timeline to a total of 25 years if certain milestones are achieved or if the developer pays fees for unbuilt portions.\u003c/p>\n\u003cp>Santa Clara could be waiting for up to 10 years and receive nothing in return if the developer were to walk away from the project altogether, but officials are hoping the developer will follow through on its aims and say the agreement is necessary for such a large development in a rocky financing cycle.\u003c/p>\n\u003cp>“We can’t force it. Some people don’t understand that,” Gillmor told KQED. “When the market becomes available to finance these types of projects, believe me, they’re going to build. They will.”\u003c/p>\n\u003cp>Reena Brilliot, the city’s director of economic development and sustainability, said when crafting the agreement, the city had to consider that the large project would likely need to be built across multiple market cycles and that it includes a significant portion of new office space, for which there is little to no demand currently.\u003c/p>\n\u003cp>“We are aware that the office market is quite soft, and there isn’t a clear trajectory on when that’s going to change with remote work being still in flux,” Brilliot said.\u003c/p>\n\u003cp>The approval allows the developer to shrink some of its office space plans in exchange for more housing units to help boost the viability of the project and meet market demands if needed. The contract also asks the developer to build valuable community benefits first, such as 90 of the affordable apartments by 2031, and either the child care facilities or a grocery store by the 10-year mark.\u003c/p>\n\u003cp>If the developer meets those goals or chooses to pay a fee of $1 per square foot of unbuilt project square footage if it doesn’t, then it can request the first of three five-year extension options.\u003c/p>\n\u003cp>“We’re tying (the extensions) to the things that matter to us from a community benefit standpoint with the realization that they’re likely not going to build those in a standalone fashion,” Brilliot said.\u003c/p>\n\u003cp>Santa Clara is not new to big plans and indeed has laid out major growth blueprints all around the stadium. Just last week, the council approved the first 284 apartments of a potential 12,000 planned for a 74-acre area filled with offices that run along Patrick Henry Drive, sandwiched between Mission College and the Kylli development site.\u003c/p>\n\u003cp>The city’s major plans also include the Tasman East area, where some successes have already been notched. On the 45-acre plot just northeast of Levi’s, several developers are working on roughly 4,500 residential units, some of which are complete, some which are largely constructed and some are still in the pipeline, all following a 2018 plan approved by city leaders.\u003c/p>\n\u003cp>While the Tasman East work has moved along relatively smoothly, the city has also seen its share of unexpected delays throwing a wrench into much-ballyhooed plans for major developments.\u003c/p>\n\u003cp>The Related Companies, a massive New York City-based development firm, has long planned to build a landmark $8 billion project in Santa Clara directly across from Levi’s and Tasman East, known as Related Santa Clara, that was originally set to include a total of 9 million square feet of homes, offices, hotels and restaurants, all on 240-acres of city-owned land.\u003c/p>\n\u003cp>However, since its 2016 approval, some site work has been completed, but nothing has been built. The project faced lawsuits out of the gate from San José and later faced challenges about Related’s plan to pay workers less than prevailing wages, and requires careful environmental planning because much of it is being built on a former landfill site.\u003c/p>\n\u003cp>It has also contended with the same market forces shifting other projects. Related was able to secure nearly $700 million in financing to build two projects in the Tasman East area in recent years.\u003c/p>\n\u003cp>Challenges aside, some leaders have grown frustrated with the lack of construction over eight years for the large project, especially because of the developer’s size.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“They’re Related,” Park said. At some point, if they can’t make a plan to build this, then who?”\u003c/p>\n\u003cp>Related has, in the last year, submitted an alternate plan to replace millions of square feet of office space with industrial manufacturing uses on the site and consolidate some of the office space into other portions of the land, but the city is still reviewing that plan. The developer has continued to pay rent to the city annually during the delays.\u003c/p>\n\u003cp>A spokesperson for Related Santa Clara did not respond to a request for comment.\u003c/p>\n\u003cp>The long holdup for Related Santa Clara gives Park concern about the extended timeline options for Kylli and other potential similar agreements that might undergird developments aimed at renewing the city’s north end.\u003c/p>\n\u003cp>“I don’t like long timelines. With every long timeline you give, you hope it’s because it gives you a higher percentage of completion or possibility of completion,” he said.\u003c/p>\n\u003cp>Representatives for Kylli say the developer has every intention of building the project, though the company has paid attention to the bevy of challenges other developers are facing, informing how the development agreement was structured.\u003c/p>\n\u003cp>“Every developer and every project has its own story,” said Wendi Baker, the chief operating officer of Los Gatos-based Harmonie Park Development, who is working as a consultant on the Kylli project. “We saw all of those stories unfolding before us, and we really tried to create the best opportunity for success for all of us here, the developer, the city, the community.”\u003c/p>\n\u003cp>Despite concerns council members and others may have, Park and Gillmor said the city and its leaders need to keep pressing forward in planning for hubs that attract and benefit residents and visitors. The city is leaning on trust that developers will come through, like with past successes at Rivermark and Santa Clara Square, two major mixed-use developments in the city.\u003c/p>\n\u003cp>“If we can’t look at a developer and take them at face value and take them in good faith, if we try to be too clever, I just don’t think that’s a good thing,” Park said. “We can’t look at the possible downsides and not approve projects. We have to look at the possible upsides.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>The Santa Clara Valley Water District passed an encampment ban on Tuesday, \u003ca href=\"https://www.kqed.org/news/12009230/santa-clara-valley-water-district-hosts-summit-on-homelessness-ahead-of-encampment-ban-decision\">making it tougher for unhoused people to live near most rivers\u003c/a>, creeks and streams in the South Bay.\u003c/p>\n\u003cp>“We can’t allow our unhoused neighbors and our housed neighbors to face flood risks,” said Rick Callender, the district’s chief executive officer. “This has truly been a troubling path for staff to recommend such an ordinance, but it is a necessary path.”\u003c/p>\n\u003cp>Callender said the agency will prioritize an education-first approach, stating he wants to avoid “more people of color incarcerated.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Under the policy, staff will issue “a good faith attempt” to engage directly in conversation with “unsheltered” people before showing those “illegally occupying Valley Water property” how to connect with social services offering interim or permanent housing. The relocation process also aims to connect individuals to local government social services who are removed from its property. However, unhoused advocacy groups and at least one board member urged the district to rethink the ban.\u003c/p>\n\u003cp>Staff will also post a written notice in advance of a scheduled cleanup. After 72 hours, Valley Water and partnering agencies can clear the camp, which includes storing “identifiable personal belongings.” As a last resort, law enforcement can charge those who refuse to move with an infraction or misdemeanor with a fine not to exceed $500.\u003c/p>\n\u003cp>The ordinance goes into effect in 30 days, and enforcement starts on Jan. 2, 2025.\u003c/p>\n\u003cp>[aside postID=news_12015942 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2019/01/PowerPGEMissionDist-1020x666.jpg']\u003c/p>\n\u003cp>“We want people to be able to adhere to the encampment condition guidelines and remain a low priority for enforcement,” said Mark Bilski, an assistant officer in charge of the Good Neighbor program. “At the same time, urgent staff and public safety issues sometimes don’t allow this. If someone physically threatens staff, we need to be able to act immediately.”\u003c/p>\n\u003cp>The district also voted to prohibit the possession of firearms, ammunition and fireworks on lands owned by Valley Water.\u003c/p>\n\u003cp>District officials said encampments cause environmental harm when trash, food and other items flow into waterways. The debris can also cause blockages or pinch points in channels meant to help control flood waters. The district has also raised safety concerns for its workers, who claim to have been threatened or accosted by people living near waterways.\u003c/p>\n\u003cp>Barbara Keegan, Valley Water District 2 director, voted in favor of the ban, saying unhoused people who live on the banks of streams or rivers “are in the worst place under the worst possible circumstances, and it’s inhumane to leave them there.”\u003c/p>\n\u003cp>Daniel Hansen, who lives along San Francisquito Creek in Palo Alto, supports the decision. He thinks a permanent solution along waterways could include fencing blocking people from entering them.\u003c/p>\n\u003cp>“I think it strikes a good balance of notice, as well as a firm hand,” he said. “For 20 years, we’ve experienced a lot of the encampment issues, more so recently, this includes human waste, garbage, noise, open fires and crime.”\u003c/p>\n\u003cp>In a July listening session, the district reported that some stakeholders called the “approach backward,” saying it would shift unhoused people into neighborhoods and “will criminalize people, not behaviors.” The district reiterated it is “committed to harm-reduction approach” and that the district trains its field staff in “calming and de-escalation strategies.”\u003c/p>\n\u003cp>Rebecca Eisenberg, Valley Water District 7 director, voiced strong opposition to the plan. She argued the ordinance would end up protecting water district staff and further harm unhoused people.\u003c/p>\n\u003cp>“We need to focus on violent folks, not the nonviolent folks,” she said. “Giving unhoused people criminal records is going to push them backward, not forward.”\u003c/p>\n\u003cp>Jeremy Barousse, director of policy and organizing Amigos de Guadalupe Center for Justice and Empowerment, recommended that the district push the plan start date into the spring.\u003c/p>\n\u003cp>“Enforcing this ordinance shortly after the holidays is just cruel,” he said. “We recommend providing at least five days’ notice before encampment removal and three warnings before arrest or citation.”\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>The Santa Clara Valley Water District passed an encampment ban on Tuesday, \u003ca href=\"https://www.kqed.org/news/12009230/santa-clara-valley-water-district-hosts-summit-on-homelessness-ahead-of-encampment-ban-decision\">making it tougher for unhoused people to live near most rivers\u003c/a>, creeks and streams in the South Bay.\u003c/p>\n\u003cp>“We can’t allow our unhoused neighbors and our housed neighbors to face flood risks,” said Rick Callender, the district’s chief executive officer. “This has truly been a troubling path for staff to recommend such an ordinance, but it is a necessary path.”\u003c/p>\n\u003cp>Callender said the agency will prioritize an education-first approach, stating he wants to avoid “more people of color incarcerated.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Under the policy, staff will issue “a good faith attempt” to engage directly in conversation with “unsheltered” people before showing those “illegally occupying Valley Water property” how to connect with social services offering interim or permanent housing. The relocation process also aims to connect individuals to local government social services who are removed from its property. However, unhoused advocacy groups and at least one board member urged the district to rethink the ban.\u003c/p>\n\u003cp>Staff will also post a written notice in advance of a scheduled cleanup. After 72 hours, Valley Water and partnering agencies can clear the camp, which includes storing “identifiable personal belongings.” As a last resort, law enforcement can charge those who refuse to move with an infraction or misdemeanor with a fine not to exceed $500.\u003c/p>\n\u003cp>The ordinance goes into effect in 30 days, and enforcement starts on Jan. 2, 2025.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“We want people to be able to adhere to the encampment condition guidelines and remain a low priority for enforcement,” said Mark Bilski, an assistant officer in charge of the Good Neighbor program. “At the same time, urgent staff and public safety issues sometimes don’t allow this. If someone physically threatens staff, we need to be able to act immediately.”\u003c/p>\n\u003cp>The district also voted to prohibit the possession of firearms, ammunition and fireworks on lands owned by Valley Water.\u003c/p>\n\u003cp>District officials said encampments cause environmental harm when trash, food and other items flow into waterways. The debris can also cause blockages or pinch points in channels meant to help control flood waters. The district has also raised safety concerns for its workers, who claim to have been threatened or accosted by people living near waterways.\u003c/p>\n\u003cp>Barbara Keegan, Valley Water District 2 director, voted in favor of the ban, saying unhoused people who live on the banks of streams or rivers “are in the worst place under the worst possible circumstances, and it’s inhumane to leave them there.”\u003c/p>\n\u003cp>Daniel Hansen, who lives along San Francisquito Creek in Palo Alto, supports the decision. He thinks a permanent solution along waterways could include fencing blocking people from entering them.\u003c/p>\n\u003cp>“I think it strikes a good balance of notice, as well as a firm hand,” he said. “For 20 years, we’ve experienced a lot of the encampment issues, more so recently, this includes human waste, garbage, noise, open fires and crime.”\u003c/p>\n\u003cp>In a July listening session, the district reported that some stakeholders called the “approach backward,” saying it would shift unhoused people into neighborhoods and “will criminalize people, not behaviors.” The district reiterated it is “committed to harm-reduction approach” and that the district trains its field staff in “calming and de-escalation strategies.”\u003c/p>\n\u003cp>Rebecca Eisenberg, Valley Water District 7 director, voiced strong opposition to the plan. She argued the ordinance would end up protecting water district staff and further harm unhoused people.\u003c/p>\n\u003cp>“We need to focus on violent folks, not the nonviolent folks,” she said. “Giving unhoused people criminal records is going to push them backward, not forward.”\u003c/p>\n\u003cp>Jeremy Barousse, director of policy and organizing Amigos de Guadalupe Center for Justice and Empowerment, recommended that the district push the plan start date into the spring.\u003c/p>\n\u003cp>“Enforcing this ordinance shortly after the holidays is just cruel,” he said. “We recommend providing at least five days’ notice before encampment removal and three warnings before arrest or citation.”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"slug": "pge-rates-could-go-up-again-as-it-aims-to-spend-more-on-connecting-new-customers",
"title": "PG&E Rates Could Go Up Again as It Aims to Spend More on Connecting New Customers",
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"content": "\u003cp>Electricity rates could be going up again if \u003ca href=\"https://www.kqed.org/pge\">PG&E’s\u003c/a> most recent request for a spending increase is accepted by California regulators.\u003c/p>\n\u003cp>The request follows \u003ca href=\"https://www.kqed.org/news/12004361/yet-another-pge-rate-hike-could-be-coming-if-california-regulators-give-the-ok\">three temporary rate increases\u003c/a> over the past year and a much larger general rate adjustment approved in 2023. PG&E’s rates have doubled over the past decade, which it says is the result of its heightened need to mitigate wildfires and handle repairs after increasingly severe storms.\u003c/p>\n\u003cp>This time, the company says it is seeking to raise the caps on its capital costs to connect more new users to the energy grid, which could mean an additional charge on customers’ bills depending on how much they spend.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The California Public Utilities Commission sets the spending caps. PG&E’s current caps for 2025 and 2026 equal almost $1.3 billion combined, but the company is facing a backlog of connection requests, in part due to the additional work that extreme weather has created over the past few years.\u003c/p>\n\u003cp>Now, PG&E is asking permission to raise its spending limits by $3 billion over the next two years to increase its progress on new connections.\u003c/p>\n\u003cfigure id=\"attachment_11756926\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11756926\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/06/RS37873_GettyImages-1095654954-qut.jpg\" alt=\"PG&E may come out of bankruptcy sooner than expected.\" width=\"1920\" height=\"1260\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/06/RS37873_GettyImages-1095654954-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/06/RS37873_GettyImages-1095654954-qut-160x105.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/06/RS37873_GettyImages-1095654954-qut-800x525.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/06/RS37873_GettyImages-1095654954-qut-1020x669.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/06/RS37873_GettyImages-1095654954-qut-1200x788.jpg 1200w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">PG&E may come out of bankruptcy sooner than expected. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“What that’s going to do, if the PUC agrees with it, is it’s going to be another rate increase for PG&E customers,” says Lee Trotman, a spokesperson for the Utility Reform Network, or TURN.\u003c/p>\n\u003cp>PG&E says if its increases are approved, customers’ bills will only increase as its spending does, up to those caps. The company estimates that the end result will be a maximum rate hike of 1.8% — or $4.33 tacked onto the average customer’s monthly bill and $2.81 a month for lower-income households.\u003c/p>\n\u003cp>“PG&E will recover costs only for what it spends, and the CPUC will review spending to ensure it is just and reasonable,” the company says in a statement.\u003c/p>\n\u003cp>[aside postID=science_1950931 hero='https://cdn.kqed.org/wp-content/uploads/sites/35/2023/12/RS33945_111318_AW_CampFire_32-qut-1020x680-1-672x372.jpeg']\u003c/p>\n\u003cp>The additional spending would allow the company to bring thousands more customers onto the grid per year, according to PG&E. In 2023, nearly 10,000 new customers came onto the grid, though about 1,500 projects were delayed due to winter storms. That was up from roughly 8,000 connections added in 2022.\u003c/p>\n\u003cp>PG&E estimates that this year, it will bring 13,000 new schools, hospitals and homes onto its power grid. In its request to the PUC, it says the additional funding will allow it to more than double the amount of connection work that it can complete.\u003c/p>\n\u003cp>“Adding thousands of new connections will help spread fixed grid operations and maintenance costs across more customers,” the statement continues.\u003c/p>\n\u003cp>The rate hike — if it’s realized — could also be “balanced out” by other items or rates that will be dropped from people’s bills over the next few years, PG&E says. Trotman is more skeptical.\u003c/p>\n\u003cp>“PG&E can say this is for 2025 and 2026, and then by the time these rate hikes hit, we’ll have adjusted the rates, etc., etc., but have you ever seen rates go down?” he asked.\u003c/p>\n\u003cp>\u003cem>KQED’s \u003ca href=\"https://www.kqed.org/author/eromero\">Ezra David Romero\u003c/a> contributed to this report.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Electricity rates could be going up again if \u003ca href=\"https://www.kqed.org/pge\">PG&E’s\u003c/a> most recent request for a spending increase is accepted by California regulators.\u003c/p>\n\u003cp>The request follows \u003ca href=\"https://www.kqed.org/news/12004361/yet-another-pge-rate-hike-could-be-coming-if-california-regulators-give-the-ok\">three temporary rate increases\u003c/a> over the past year and a much larger general rate adjustment approved in 2023. PG&E’s rates have doubled over the past decade, which it says is the result of its heightened need to mitigate wildfires and handle repairs after increasingly severe storms.\u003c/p>\n\u003cp>This time, the company says it is seeking to raise the caps on its capital costs to connect more new users to the energy grid, which could mean an additional charge on customers’ bills depending on how much they spend.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The California Public Utilities Commission sets the spending caps. PG&E’s current caps for 2025 and 2026 equal almost $1.3 billion combined, but the company is facing a backlog of connection requests, in part due to the additional work that extreme weather has created over the past few years.\u003c/p>\n\u003cp>Now, PG&E is asking permission to raise its spending limits by $3 billion over the next two years to increase its progress on new connections.\u003c/p>\n\u003cfigure id=\"attachment_11756926\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11756926\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/06/RS37873_GettyImages-1095654954-qut.jpg\" alt=\"PG&E may come out of bankruptcy sooner than expected.\" width=\"1920\" height=\"1260\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/06/RS37873_GettyImages-1095654954-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/06/RS37873_GettyImages-1095654954-qut-160x105.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/06/RS37873_GettyImages-1095654954-qut-800x525.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/06/RS37873_GettyImages-1095654954-qut-1020x669.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/06/RS37873_GettyImages-1095654954-qut-1200x788.jpg 1200w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">PG&E may come out of bankruptcy sooner than expected. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“What that’s going to do, if the PUC agrees with it, is it’s going to be another rate increase for PG&E customers,” says Lee Trotman, a spokesperson for the Utility Reform Network, or TURN.\u003c/p>\n\u003cp>PG&E says if its increases are approved, customers’ bills will only increase as its spending does, up to those caps. The company estimates that the end result will be a maximum rate hike of 1.8% — or $4.33 tacked onto the average customer’s monthly bill and $2.81 a month for lower-income households.\u003c/p>\n\u003cp>“PG&E will recover costs only for what it spends, and the CPUC will review spending to ensure it is just and reasonable,” the company says in a statement.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The additional spending would allow the company to bring thousands more customers onto the grid per year, according to PG&E. In 2023, nearly 10,000 new customers came onto the grid, though about 1,500 projects were delayed due to winter storms. That was up from roughly 8,000 connections added in 2022.\u003c/p>\n\u003cp>PG&E estimates that this year, it will bring 13,000 new schools, hospitals and homes onto its power grid. In its request to the PUC, it says the additional funding will allow it to more than double the amount of connection work that it can complete.\u003c/p>\n\u003cp>“Adding thousands of new connections will help spread fixed grid operations and maintenance costs across more customers,” the statement continues.\u003c/p>\n\u003cp>The rate hike — if it’s realized — could also be “balanced out” by other items or rates that will be dropped from people’s bills over the next few years, PG&E says. Trotman is more skeptical.\u003c/p>\n\u003cp>“PG&E can say this is for 2025 and 2026, and then by the time these rate hikes hit, we’ll have adjusted the rates, etc., etc., but have you ever seen rates go down?” he asked.\u003c/p>\n\u003cp>\u003cem>KQED’s \u003ca href=\"https://www.kqed.org/author/eromero\">Ezra David Romero\u003c/a> contributed to this report.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"info": "Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. It asks: What if everything goes right for once? How can we get there? Each episode also includes a short fiction story generated by advanced AI GPT-4, serving as a thought-provoking springboard to speculate how humanity could leverage technology for good.",
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"soldout": {
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"title": "SOLD OUT: Rethinking Housing in America",
"tagline": "A new future for housing",
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