GOLD KEY

San Francisco Intermediate Length Occupancies (ILO) Legislation

This legislation would amend the Planning Code and create a new Residential Use Characteristic — Intermediate Length Occupancy (“ILO”) that is applicable only to Dwelling Units. This original ordinance placed an annual cap on corporate housing units to 500 in San Francisco proper.

The sponsor introduced a substitute ordinance on January 14, 2020. Changes included:

  • Increasing the cap to 1,000 units, Planning Commission could raise the cap at any time.
  • A grace period of two years for current operators to come into compliance.
  • Grandfathering in contracts made before April 1, 2020 (if not in BMR/rent controlled buildings).
  • Creating new CU process for the future 1,000 new units, with “ILO” as a code designation.
  • Allowing 20% of buildings with more than 10 units to be used as ILOs.
  • Allowing up to 25% of Dwelling Units in buildings with nine or fewer Units to be principally permitted.
  • The Supervisor is open to interim controls, while the City conducts its nexus study which can be up to 24 months though does not have to use that full timeframe.

Intermediate Length Occupancy: A Residential Use characteristic that applies to a Dwelling Unit offered for occupancy by a natural person for an initial stay, whether through lease, subscription, license, or otherwise, for a duration of greater than 30 consecutive days but less than one year.  This use characteristic is subject to the requirements of Section 202.10.

Ground Floor Public Affairs gathered member company input and concerns on the substitute ordinance, contacted the multiple lobbyists involved to find common ground on these issues and is pursuing what these ordinances mean for existing leases so as to advise member companies appropriately. CHPA has been providing information to the Budget & Legislative Office, who has been charged with preparing an industry to the San Francisco Board of Supervisors. 

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