Mayor fears mass evictions in affluent S.F. neighborhoods

From today's San Francisco Business Times, "San Francisco Mayor Gavin Newsom said new mortgages that permit fractional tenants-in-common loans raise the prospect of tenants being evicted from the city's apartment buildings -- and a resulting political backlash."

"The mayor told the San Francisco Business Times that he has recently spoken to two real estate investors -- "speculators," he called them -- who are considering using the Ellis Act and the new TIC financing to convert rental units into owner-occupied housing."

""I respect property rights. But if we're going to have speculators come in and kick out 20 to 30 families, that's not what this city is about," Newsom said."

Hmmm... Seems like exactly what I've been warning about since they announced these new loans... Time to find a way to give developers a way to build some housing, or they'll find ways to create it themselves. This is just further proof that you cannot restrain a free market. The market will win every time.

*Reminder* I am not in favor of evictions of any type. I merely point this out in an "I told you so" fashion due to our current crop of Supervisors and tenant activists penchant to ignore reality in order to garner headlines. This one is about to come back and bite some of them in the ass.

There is really nothing that the city can do to prevent the Ellis Act; it's a state law which overrides local law. There's nothing they can do to stop people from joining together and purchasing property in whatever manner they see fit (i.e. as tenants in common). And there's nothing they can do to stop banks from seizing the opportunity that exists to capitalize on an emerging market. Now that the door is open, what will the 'supes do? I'll be curious to see what what they come up with. Their solution will, just like all of their past attempts, end being proven unconstitutional eventually, but they'll find a way to slow things down, I'm sure.

Ted Gullickson, are you listening? The free market is winning and your followers are going to look to you for help. Perhaps the time is right to do something intelligent, like support the creation of new housing?