Please read this article in Bloomberg about Barcelona and how landlords are being reprimanded for keeping rental homes vacant. It's a fantastic strategy: San Francisco's affordable housing problem has extended over a very long eight years since the tech industry flooded into our city and residents were given notice, a great number of those due to illegal evictions by landlords using the Ellis Act as bait/switch. With two thirds of the city's residents being tenants, the number of evictions rocketed and landlords bumped up rental prices that only the wealthy could afford. This ultimately led to the groundbreaking, first city ever adoption of Proposition F (free legal representation for all tenants) being passed in 2018 because the eviction epidemic required stabilizing.
Even though Prop F has been a relief booster for tenants, by the time the proposition came into effect, it was too late. The number of homeless in San Francisco hit the stratosphere in 2013 and continued to rise year on year. With the flood of tenants now leaving our great City by the Bay for cheaper homes, due to shelter in place validating working from home can mean any geographical location, empty apartments are adorning our 7 miles x 7 miles region and property prices have plummeted over 15% in the past month alone. It's a renters market once again.
Landlords are obviously waiting for shelter in place to lift, jack up rental rates and wait for the demand flood to inject our city...yet this time, it may not happen or so fast. Barcelona, on the other hand, has taken the helm providing a pressure cooker solution:
"This week, the city’s housing department wrote to 14 companies that collectively own 194 empty apartments, warning that if they haven’t found a tenant within the next month, the city could take
possession of these properties, with compensation at half their market
value. These units would then be rented out by the city as
public housing to lower-income tenants, while the companies in question
could also face possible fines of between €90,000 and €900,000
($103,000 and $1,003,000), according to Spanish news outlets."
It'd be a wonderful plan if San Francisco follows this Spanish city's rule of thumb. People that were evicted years ago tried to source affordable housing yet this became a massive problem, because affordable housing was given the back seat to luxury condos being built at record speed. Therefore, there just hasn't been enough affordable homes for residents and it's certainly resulted in a thorn in the city's side for nearly a decade. This time though, no one's being evicted thanks to 2020 laws stopping residents from being evicted if they're unable to pay rent due to Covid-19. This blog post is focusing solely on residents that are packing up from their own free will so apartments are sitting ducks, waiting to be occupied once again.
If our leaders could adopt Barcelona's blueprint and put pressure on landlords to rent empty apartments or face being converted into affordable homes, the number of homeless could easily drop by 15% within a month. Please share this blog post and @ tag your district supervisor, along with the @sfbos. The more we spread the word, the greater the chance that this tremendous problem of affordable housing is fixed and diversity leaps in abundance, once again. Please rise above the noise and help create more affordable homes with this incredibly simple yet effective innovation that Barcelona cooked up.
In the past month, San Francisco's seen a 96% increase of properties available. Homes are hitting the market left and right and it's spiking like crazy. This is alongside rental prices plummeting while residents pack up and head to cheaper pastures, validating that our beloved city is reaching it's decade pinnacle of a signature pattern that we like to call the 10 year switcheroo. Every decade or so, our stunning city drastically turns an epic corner and catapults into a new direction. The last encounter was with the tech tax break, causing an influx of high paid engineers to join our city which drove up property prices and strangled diversity. The prior switcheroo was the dot com bust when everyone and their landlord fled the city as the industry bottomed out. This came after the historic dot com boom with a mirror image reversal whereby San Fran was flooded with tech kids all wanting to desperately change the world.
Each time our city has a residential spring clean, a new wave of cultural changes hits our doorstep. Sometimes we appreciate some of these spring cleans and other times, we don't. In this current pandemic, the situation is bitter sweet: People have lost their jobs, yet thanks to government support, not their homes. Instead of the homeless jammed into the Tenderloin area, Covid-19 social distancing laws expanded the poverty geographical boundaries towards various district tent villages so they could enjoy a change of scenery, a home and guaranteed food. The Tenderloin hosted 420 tents a few months ago. Last week, that number was down to a congratulatory 47 tents. Beloved, long running businesses have permanently shut up shop including the iconic Tong Kiang, Zanze's, It's Tops, The Stud and St. Francis Fountain, to name but a few while new restaurants immediately started pivoting into charitable food ventures.
It's been five months of ups and downs that's now resulting in a residential exodus. But we do ask all the ones that are leaving our famous city one thing: When you're packing up and are ready to settle in new land, think about the clothing you don't want anymore. Instead of dumping them in your trash and assuming a homeless person may see them, offer them directly to someone living on the street, give them to the Emergency Design Collective or call your local Salvation Army to arrange a handover. Just because you're jumping ship during this switcheroo doesn't mean you can't have compassion and empathy for the ones left behind. Give away socks, underwear, jackets, scarves, gloves, sweaters, shirts, trousers and blankets.
Be kind, be sensible and please be the person that reaches out and pays forward, just before you sail off into the sunset.
For a long time in the prior century, San Francisco's Hayes Valley was the overflow go-to district for the nearby poverty stricken Market Street and Tenderloin homeless residents. Hayes Valley's main access freeway to the 101 was damaged in the 1989 Loma Prieta earthquake yet restored in 2005. That restoration inspired a change of scenery: The homeless frequented the area slightly less while the Valley's kooky residents grew in abundance, public victory gardens were adored and bars were packed thanks to drag queen entertainment.
Along came the next phase change when Mayor Ed Lee enticed Silicon Valley tech companies with gold plates of tax free incentives so they'd relocate to nearby Market Street, with the intention that the area would receive an economic boost. This idea bottomed out due to a few oversights: The tech industry refused to buy locally and therefore failed to help neighborhood businesses, their overpaid employees demanded nearby Hayes Valley homes therefore accelerating rental prices that current residents couldn't afford, and the division of obscene wealth vs. heart-wrenching poverty became as wide as the parting of the Red Sea. Sadly, Hayes Valley became an utter gentrified mess of beige and its quirky personality was stripped clean. Droves of new hipster stores opened overnight, from restaurants, bars and trendy outdoor truck cafes - it was standard to pay $10 for a golf ball size ice-cream scoop in a plastic cup that'd take 1000 years to decompose. The beige lasted for eight years. It was painful to watch the lack of diversity.
Then arose Covid-19.
With life coming full circle once again, the homeless decided to venture outside of their Tenderloin 'haven' and explore the rest of the city, a city they'd been elbowed from since the inception of the tax free tech days. After eight years of being cooped up and frowned upon for roaming around their stunning San Francisco, the homeless immediately headed right back to Hayes Valley. Tents popped up like daisies, just like they did a decade ago yet this naturally caused havoc for the locals. So much so, rattled and irate businesses have just announced a new initiative: Make Hayes Valley a Tent Free Zone. They demanded the mayor move every homeless person out of their perfect streets. The city complied yet the homeless returned a few days later, and rightly so. Over 5000 area businesses have closed since Covid-19, San Francisco property prices (for selling and renting) have dropped more than 10% in the last month alone and it's been reported that around 200,000 residents are moving to cheaper cities, especially since working from home means they can work from anywhere. Interestingly, with 200k less people and property values heavily dropping, the city's population and home valuations will revert back to its 2012 number.
With
irony in abundance, the
gentrified, the hipsters, the woke, the whiter than white, the cancel
culture crew that don't blink when they spend $5000 on a two day
glamping weekend are
disgusted by tents cropping up on their own street. They're so sickened
by the homeless, they're relocating to other cities. Ironically, they
initially moved to San Francisco to change the world yet those rules
clearly only apply within the work place, and not their home environment
where fixing the homeless crisis would certainly be marked as a world
changing achievement. More irony, the tent dwellers are most likely
camping outside the apartment they once lived in before the tech influx.
If rental properties keep dropping, maybe they'll be able to re-rent
their original home sooner than later.
In
every city, there are rich and poor. This is critical for the culture
of a region because it drives different thinking milestones, epic feats and historic
changes morphed from conflict and collaboration. With the gentrified leaving
in droves - being pushed out by tent residents that possibly once resided in the same building - the culture of true San
Francisco is already regaining a stronger pulse of diversity. Isn't life funny?
We read a fantastic article in Vox about MacKenzie Scott and her 'revolutionary' philanthropic efforts. In short, the feature stated that Jeff Bezos's ex. wife hit the ground running once she cash settled in her divorce from the planet's wealthiest man and is ploughing through donating her bank balance to charities, whether they've asked her or not.
Within just over a year after splitting from her ex., and the world's biggest divorce settlement, MacKenzie stated she's on a self, speed mission to see how quickly she can offload her enormous fortune, to help others. Usually, someone with a few million or billions under their belt, would hire a corporation to determine the best use of donating funds. MacKenzie decided that she'd not follow that route and by cutting straight to the chase, by eliminating the middle man or woman, within 12 months and advice from a few key players, she's offloaded over $1.7b to 116 nonprofit organizations that focus on varying issues.
Like manna falling from the sky during the Torah days, nonprofits started to receive donations - reiterating some nonprofits had zero interaction with MacKenzie and others never even submitted a grant request. She obviously decided that she'd dig around and self research into a: who really needed greens, and b: morphed with her philanthropic goals. And the donations then steamrolled towards these very surprised nonprofits. There were no strings attached on where MacKenzie wanted her donation to be injected into. Her stance was that she believed in what they were achieving and therefore had great faith they'd put the money to whatever good use they felt needed it. No micromanaging, no conditional grant giving and no question towards the nonprofit. It's been a case of 'I have buckets of cash, you need it, I trust you, spend it wisely and God speed.'
MacKenzie's fast and furious approach is refreshing, logical and screams common sense. Covid-19 has destroyed so many individuals and nonprofits livelihoods and grants have been taking too long to arrive at their destination. Accounting MacKenzie started her steamrolling rainy-day expedition six months before Covid-19 was a thing, it speaks volumes about her need to do good on the planet, regardless of whatever stage Earth is at, at any given moment. Hiring a vetting company to decide where the donor should spend their cash already makes a dent in the donation, since these vetting companies charge a small fortune for their expertise. Additionally, the interest MacKenzie is making on her stored banked cash will forever keep blowing through the roof i.e. for every $1.7b she donates, her interest just recovered the same amount within days and oddly, it may turn into a frustrating circle whereby the speed of offloading is rewarded with interest gains taking the phrase 'donor matching' to a very strange, new level. That pot of gold may never empty and she may never be short of cash but by gum, she's giving it all she has and we applaud her. With the most concentrated number of billionaires on the planet located in the Bay Area, these 75 rich list people have been so silent in helping others, we can actually hear crickets. MacKenzie is a breath of fresh air in contrast.
What we need are more MacKenzie's out there who trust, have faith, belief and want to help nonprofits. So they're going directly to the source and catapulting cash their way, instantly. No questions asked, no fanfare of a publicity circus in advance of donating to empower their egos, and complete disregard towards the norm of retaining grant experts who's salaries chomp away at the fund that's intended for recipients.
We must all be a MacKenzie. We don't need billions to achieve what she's doing. We just need to follow her rule of thumb: If you have something that will help the needy, give it to them. Whether it's $1, a pair of sneakers, socks, a sleeping bag or half a sandwich. And give it to them today. Don't dwell, don't overthink it. Just donate. Be a MacKenzie...
