San Francisco Administrative Code § 47.2 Definitions

"City Affordable Housing Programs" shall mean, unless specified otherwise, all programs related to the provision of affordable housing administered or funded by MOHCD, including but not limited to Tax Exempt Bond Developments. "City Affordable Housing Programs" does not include programs or affordable housing units exclusively supported by the Department of Housing and Urban Development, the San Francisco Human Services Agency, the San Francisco Department of Public Health, or the San Francisco Housing Authority.

“Displaced Tenant” shall mean any person who applies to MOHCD and who MOHCD determines qualifies under any of the categories below. If a person disputes MOHCD’s determination that they do not qualify as a “Displaced Tenant” under this Section 47.2, such person shall have the right to a hearing conducted by a Rent Board

Administrative Law Judge (as defined in Administrative Code Section 37.2(f)), with MOHCD as the responding party:

Category 1: A tenant residing in San Francisco who on or after January 1, 2010 receives a Notice of Intent to Withdraw Rental Units (“Notice of Intent to Withdraw”) pursuant to the Ellis Act, California Government Code Sections 7060 et seq. , and corresponding provisions of the Rent Ordinance. MOHCD shall establish a process for a tenant to verify their status as a “Displaced Tenant” under Category 1 that, at a minimum, shall require a tenant to show: (a) the landlord filed with the Rent Board a Notice of Intent to Withdraw; and (b) the tenant either: (1) is listed on the Notice of Intent to Withdraw; (2) is listed on the lease for the unit in question; or (3) has other evidence sufficient to establish, in MOHCD’s reasonable discretion, that the tenant resided in the unit at the time the Notice of Intent to Withdraw was filed. If the Rent Board grants a landlord’s request to rescind the Notice of Intent to Withdraw before a tenant moves out of their unit, such tenant shall no longer qualify as a “Displaced Tenant.”

Category 2: A tenant residing in San Francisco who on or after January 1, 2010 receives a notice that their landlord plans to recover possession of the unit under Section 37.9(a)(8) of the Rent Ordinance. MOHCD shall establish a process for a tenant to verify their status as a “Displaced Tenant” under Category 2 that, at a minimum, shall require a tenant to show: (a) the landlord filed with the Rent Board the notice to vacate, as required under Rent Ordinance Section 37.9(c); and (b) the tenant either: (1) is listed on the notice to vacate; (2) is listed on the lease for the unit in question; or (3) has other evidence sufficient to establish, in MOHCD’s reasonable discretion, that the tenant resided in the unit at the time the notice to vacate was filed.

Category 3: A tenant residing in San Francisco who is required to vacate their unit by a public safety official due to fire, and who can provide sufficient evidence to MOHCD that demonstrates that they cannot return to the unit within a period of six months from the date of the order to vacate the unit. MOHCD shall establish a process for a tenant to verify their status as a “Displaced Tenant” under Category 3 that, at a minimum, shall require a tenant to show: (a) a public safety official provided an order to vacate the unit to such tenant or to the owner of the unit; and (b) the tenant either: (1) is listed on the order to vacate; (2) is listed on the lease for the unit in question; or (3) has other evidence sufficient to establish, in MOHCD’s reasonable discretion, that the tenant resided in the unit at the time the order was provided.

Category 4: A tenant residing in San Francisco who is vacating the tenant’s unit because MOHCD has verified that a multi-family residential property will no longer be restricted to ensure affordability based on income under any regulatory agreement (including a regulatory agreement based on the issuance of housing mortgage revenue bonds) or other affordable housing agreement and/or recorded instrument within five years, and the landlord of such property has leased unrestricted residential rental units in the same building at a market rent that is more than 40% of the tenant’s total annual gross household income. MOHCD shall establish a process for a tenant to verify the tenant’s status as a “Displaced Tenant” under Category 4 that, at a minimum, shall require the tenant to show: (a) documentation of the tenant’s total gross household income on a form provided by MOHCD in accordance with the Inclusionary Procedures Manual in effect at the time of application for a “Displaced Tenant” housing preference; (b) evidence that market rate rent in the tenant’s building will exceed 40% of the tenant’s current total annual gross household income; and (c) the tenant either: (1) is listed on the lease for the unit in question; or (2) has other evidence sufficient to establish, in MOHCD’s reasonable discretion, that the tenant resides in the unit at the time the landlord increased the tenant’s rent.

Category 5: A tenant residing in San Francisco who is vacating the tenant’s unit because MOHCD has verified that the tenant’s unit will be removed as an unlawful residential unit based on the determination by the Planning Commission. MOHCD shall establish a process for a tenant to verify their status as a “Displaced Tenant” under Category 5 that, at a minimum, shall require (a) MOHCD to obtain from the Planning Department the written approval by the Planning Commission to remove the residential unit through demolition, conversion, or merger of residential units, or denial by the Planning Commission of an application to legalize the unlawful unit, and (b) a tenant to provide the following: (1) due to such written approval by the Planning Commission of an application to remove the

residential unit through demolition, conversion, or merger of residential units, or denial by the Planning Commission of an application to legalize the unlawful unit, written documentation of either: (A) a notice to vacate, notice to quit, or other notice from the landlord that the tenant must relinquish their leasehold interest in the residential unit, or (B) tenant’s intent to relinquish their leasehold interest in the residential unit, and (2) either: (A) the tenant is listed on the lease for the unit in question; or (B) the tenant has other evidence sufficient to establish, in MOHCD’s reasonable discretion, that they resided in the unit at the time the landlord obtained approval from the Planning Commission to demolish, convert, or merge the residential unit, or denial of an application to legalize the residential unit.

"MOHCD" shall mean the Mayor's Office of Housing and Community Development or its successor. "Neighborhood" shall mean any one of the 11 Supervisorial Districts as defined and established in the San Francisco Charter, Appendix E plus a buffer such that for each unit or project that is part of a City Affordable Housing Program "Neighborhood" means the Supervisorial District in which the unit or project is located, plus a ½ mile buffer around the location of the unit or project.

"Neighborhood Resident" shall mean any person who has a primary residence in a certain Neighborhood at the time he or she applies for a unit or assistance. MOHCD shall establish a process for a person to verify status as a "Neighborhood Resident" for a particular Neighborhood, which, at a minimum, shall require a person to show: (a) that he or she is listed on the lease for a unit in that Neighborhood; or (b) other evidence sufficient to establish, in MOHCD's reasonable discretion, that the person resides in a unit in that Neighborhood. If a person disputes a MOHCD determination that he or she does not qualify as a "Neighborhood Resident" under this Section 47.2, such person shall have the right to a hearing conducted by a Rent Board Administrative Law Judge (as defined in Administrative Code Section 37.2(f)), with MOHCD as the responding party.

"Rent Board" shall mean the Residential Rent Stabilization and Arbitration Board.

"Rent Ordinance" shall mean the San Francisco Rent Stabilization and Arbitration Ordinance, Administrative Code Chapter 37.

"Residential Certificate of Preference Holders" shall mean a person who holds a Residential Certificate of Preference under the San Francisco Redevelopment Agency's Property Owner and Occupant Preference Program, as reprinted September 11, 2008 and effective October 1, 2008 and on file with the Clerk of the Board in File No. 080521.

"Tax Exempt Bond Development" shall mean any housing development financed through a tax-exempt bond issuance that imposes rent and occupancy restrictions as a condition of the financing.

“Veteran” shall mean any person who (i) served in the active military, naval, or air service, and was discharged or released therefrom under conditions other than dishonorable, and (ii) is recognized by the United States Department of Veterans Affairs to receive or qualify for benefits or assistance. MOHCD shall establish a process for a person to verify their status as a “Veteran,” which, at a minimum, shall require a person to show: (a) records or identification provided by the United States Department of Veterans Affairs, or (b) other evidence sufficient to establish, in MOHCD’s reasonable discretion, that the person is a Veteran. If a person disputes a MOHCD determination that they do not qualify as a “Veteran” under this Section 47.2, such person shall have the right to a hearing conducted by a Rent Board Administrative Law Judge (as defined in Administrative Code Section 37.2(f)), with MOHCD as the responding party.

(Added by Ord. 204-15 , File No. 150622, App. 12/3/2015, Eff. 1/2/2016; amended by Ord. 164-16 , File No. 151122, App. 8/11/2016, Eff. 9/10/2016; Ord. 210-17, File No. 170860, App. 11/3/2017, Eff. 12/3/2017, Retro. 9/10/2016; Ord. 120-19, File No. 190140, App. 6/28/2019, Eff. 7/29/2019; Ord. 137-21, File No. 210698, App. 8/4/2021, Eff. 9/4/2021, Retro. 1/1/2021; Ord. 175-22, File No. 220642, App. 8/4/2022, Eff. 9/4/2022; Ord. 94-23, File No. 230216, App. 5/26/2023, Eff. 6/26/2023, Retro. 2/16/2023)

SEC. 47.3. APPLICATION OF PREFERENCE.

Except to the extent prohibited by an applicable State or Federal funding source, MOHCD shall give, or require project sponsors or their successors in interest funded through MOHCD to give, preference in occupying units or receiving assistance under all City Affordable Housing Programs after any priority given under Administrative Code Section 39.4. If a Veteran has been verified by MOHCD as eligible for any preference enumerated below, said Veteran shall receive priority for the applicable preference over any other applicants eligible for the same preference in occupying units or receiving assistance under all City Affordable Housing Programs.

Each preference enumerated below shall be applied as of the effective date of the legislation establishing each preference. The City established preference for holders of Certificates of Preference in Ordinance No. 232-08, for Displaced Tenants, Category 1 in Ordinance No. 277-13, for Displaced Tenants, Category 2 and Neighborhood Residents in Ordinance No. 204-15, for Displaced Tenants, Category 3 and persons who live or work in San Francisco in Ordinance No. 164-16, for Displaced Tenants, Category 4 in Ordinance No. 120-19, and for Displaced Tenants, Category 5 in Ordinance No. 94-23. The preference requirements are intended to have prospective effect only, and shall not be interpreted to impair the obligations of any pre-existing contract entered into by the City. Notwithstanding the prior sentence, the preference requirements shall apply to contracts entered into by the City on or after the effective date of the legislation establishing each preference, including contracts materially amended on or after the effective date. Preference shall be given:

(a) First, to Residential Certificate of Preference Holders, who meet all of the qualifications for the unit or assistance. Preference under this subsection (a) shall be given in 100% of the units in all initial sales, re-sales, initial leases, and subsequent leases.

(b) Second, to any Displaced Tenant who meets all of the qualifications for the unit or assistance. For any Displaced Tenant displaced prior to the effective date of this Chapter 47, preference under this subsection (b) shall expire six years from the effective date of this Chapter 47. For any Displaced Tenant displaced after the effective date of this Chapter 47, preference under this subsection (b) shall expire, for Category 1, six years from the date the landlord filed with the Rent Board a Notice of Intent to Withdraw, for Category 2, six years from the date the landlord filed with the Rent Board the notice to vacate pursuant to the Rent Ordinance Section 37.9(c), or, for Category 3, six years from the date of the order to vacate. Preference under this subsection (b) shall be applicable to:

(1) 20% of the units in any new residential development that is part of a City Affordable Housing Program going through the initial occupancy or sale process; and

(2) units in all re-sales and subsequent leases until 20% of all units that are part of a City Affordable Housing Program in a building are occupied by tenants who have exercised this preference.

The Displaced Tenant's preference shall still apply even if such Displaced Tenant declines a unit offered through application of the preference, but upon accepting and occupying a unit obtained using the preference, such Displaced Tenant's preference terminates.

(c) Third, to a Neighborhood Resident, who meets all of the qualifications for the unit or assistance. Preference under this subsection (c) shall be given:

(1) for units located in the same Neighborhood as the person resides;

(2) only for any new residential development in that Neighborhood going through the initial occupancy or sale process, and only to 40% of the units in such development.

(d) Fourth, to any person who lives or works in San Francisco who meets all of the qualifications for the unit or assistance. Preference under this subsection (d) shall be applicable to:

(1) any unit in any new residential development that is part of a City Affordable Housing Program going through the initial occupancy or sale process; and

(2) units in all re-sales and subsequent leases.

(Added by Ord. 204-15 , File No. 150622, App. 12/3/2015, Eff. 1/2/2016; amended by Ord. 164-16 , File No. 151122, App. 8/11/2016, Eff. 9/10/2016; Ord. 287-19, File No. 191000, App. 12/20/2019, Eff. 1/20/2020; Ord. 137-21, File No. 210698, App. 8/4/2021, Eff. 9/4/2021, Retro. 1/1/2021; Ord. 175-22, File No. 220642, App. 8/4/2022, Eff. 9/4/2022; Ord. 94-23, File No. 230216, App. 5/26/2023, Eff. 6/26/2023, Retro. 2/16/2023)