SEC. 1388. TENANT INTENT TO PURCHASE.
§ 1388
Conversion of rental buildings to condominiums requires that at least 40 percent of tenants submit written intent-to-purchase forms, with any inducements the subdivider offers disclosed and made binding conditions of approval. Tenant intent forms become irrevocable once signed, though the Director may invalidate forms obtained through coercion, fraud, duress, misrepresentation, or threats.
Before a landlord can convert an apartment building to condos for sale, at least 40 out of every 100 tenants must sign a form saying they want to buy their unit. If the landlord offers tenants special deals or benefits to sign these forms, those offers have to be written down and become public record—and the landlord has to follow through on them if the conversion is approved. Once a tenant signs the form, they can't take it back, unless the landlord used pressure, lies, tricks, or threats to get them to sign.
- Controversial:Tenant right-of-first-refusal and conversion requirements are actively debated in San Francisco housing policy, with tenants' advocates and housing groups having strong positions on protections.
- Could be simpler:The section could clarify whether the 40 percent threshold applies to occupied units only, units with valid leases, or all deed-restricted units, as the language about renewable lifetime leases adds calculation complexity.
AI-generated · claude-haiku-4-5 · informational only, not legal advice.
Official text
No application for conversion shall be approved unless there are substantial numbers of tenants who have indicated their intent to purchase their rental unit. This intent shall be evidenced by the submittal in writing by no less than 40 percent of the tenants of intent to purchase forms, as provided by the Department of Public Works. In obtaining or soliciting intent to purchase forms from tenants, subdividers shall comply with any restrictions set forth in the California Business and Professions Code and Regulations of the Real Estate Commissioner. In calculating the total number of units necessary to satisfy this provision, there shall be included in the 40 percent requirement any units in which the occupant qualified for and has expressed an intent to obtain a renewable lifetime lease pursuant to Section 1391(c).
Any tenant intent to purchase forms obtained by way of an inducement of the subdivider to provide benefits to that tenant beyond those established by the Code shall be so identified and the specific representations of the subdivider shall be set forth in detail. All such intent to purchase forms shall become a matter of public record and the subdivider shall be required to comply with his or her representations as conditions of approval.
The intent to purchase forms, once signed by a tenant, shall be irrevocable by said tenant, for purposes of compliance with this Section, provided, however, that the Director shall invalidate any such form upon a determination that the subdivider has used coercion, fraud, duress, misrepresentation or threat in connection with obtaining or soliciting such form.
(Amended by Ord. 161-01, File No. 010891, App. 7/9/2001; Ord. 281-04, File No. 041353, App. 12/1/2004)