Matthew Kupfer

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On Thursday, Gov. Gavin Newsom issued an executive order calling for swift action to expand insurance coverage options for consumers. Hours later, California Insurance Commissioner Ricardo Lara <a href="https://sfstandard.com/2023/09/21/california-insurance-crisis-newsom-orders-prompt-regulatory-action-after-insurers-retreat/">outlined what he termed “the largest insurance reform” in decades</a>.

Insurance crisis: Newsom orders action that could raise rates

On Thursday, Gov. Gavin Newsom issued an executive order calling for swift action to expand insurance coverage options for consumers. Hours later, California Insurance Commissioner Ricardo Lara <a href="https://sfstandard.com/2023/09/21/california-insurance-crisis-newsom-orders-prompt-regulatory-action-after-insurers-retreat/">outlined what he termed “the largest insurance reform” in decades</a>.

The regulation, to be drafted by the end of 2024, would allow insurance companies to use controversial forward-looking modeling in setting rates in return for covering more Californians living in areas with the most wildfire risk.

The regulation, to be drafted by the end of 2024, would allow insurance companies to use controversial forward-looking modeling in setting rates in return for covering more Californians living in areas with the most wildfire risk.

The strategy took direct aim at a rapidly growing problem in the state and a serious liability for political leaders: dwindling access to homeowners insurance.

The strategy took direct aim at a rapidly growing problem in the state and a serious liability for political leaders: dwindling access to homeowners insurance.

Seven of the 12 largest writers of homeowners insurance—including <a href="https://sfstandard.com/2023/06/01/state-farm-asks-california-for-huge-insurance-rate-hike-as-home-coverage-halts/">State Farm</a>, Allstate, <a href="https://sfstandard.com/2023/07/07/farmers-insurance-state-farm-allstate-california/">Farmers</a>, <a href="https://sfstandard.com/2023/08/31/insurance-crisis-another-major-home-insurer-to-limit-business-in-california/">USAA</a> and others—have limited business in California or pulled out of the state entirely, <a href="https://sfstandard.com/2023/08/17/in-california-insurance-crisis-puts-homeownership-further-out-of-reach/">shrinking home insurance availability</a>.

State Farm asks California for huge insurance rate hike as home coverage halts

After State Farm&#8217;s and Allstate’s exits, Farmers Insurance sets limits in California

Insurance crisis: Another major home insurer to limit business in California

California insurance crisis: Housing costs likely to surge as companies retreat

Seven of the 12 largest writers of homeowners insurance—including <a href="https://sfstandard.com/2023/06/01/state-farm-asks-california-for-huge-insurance-rate-hike-as-home-coverage-halts/">State Farm</a>, Allstate, <a href="https://sfstandard.com/2023/07/07/farmers-insurance-state-farm-allstate-california/">Farmers</a>, <a href="https://sfstandard.com/2023/08/31/insurance-crisis-another-major-home-insurer-to-limit-business-in-california/">USAA</a> and others—have limited business in California or pulled out of the state entirely, <a href="https://sfstandard.com/2023/08/17/in-california-insurance-crisis-puts-homeownership-further-out-of-reach/">shrinking home insurance availability</a>.

“Can consumers get the insurance they need? Can they get it today?” Lara asked on Thursday. “And the answer, in all honesty, is no.”

“Can consumers get the insurance they need? Can they get it today?” Lara asked on Thursday. “And the answer, in all honesty, is no.”

But Lara’s reform—which is currently more of an outline or plan—won’t thrill all policyholders: Insurance rates are expected to increase as a result.

But Lara’s reform—which is currently more of an outline or plan—won’t thrill all policyholders: Insurance rates are expected to increase as a result.

That isn’t the only controversy.&nbsp;

Newsom took executive action after <a href="https://sfstandard.com/2023/09/12/california-insurance-crisis-lawmakers-fail-to-pass-bill-aimed-at-luring-insurers-back/">an 11th-hour bill to alleviate the state’s insurance woes died in the legislature</a> earlier this month.

California insurance crisis: Bill to lure insurance companies dies before vote

Newsom took executive action after <a href="https://sfstandard.com/2023/09/12/california-insurance-crisis-lawmakers-fail-to-pass-bill-aimed-at-luring-insurers-back/">an 11th-hour bill to alleviate the state’s insurance woes died in the legislature</a> earlier this month.

But the new strategy unveiled by Lara cannot legally alter California’s regulatory framework: Proposition 103, a powerful law passed by voters in 1988 that has governed insurance for over three decades. But it may undermine it.

But the new strategy unveiled by Lara cannot legally alter California’s regulatory framework: Proposition 103, a powerful law passed by voters in 1988 that has governed insurance for over three decades. But it may undermine it.

Insurance companies say that Prop. 103 has made it too difficult to increase rates and factor the effects of climate change into them.

Insurance companies say that Prop. 103 has made it too difficult to increase rates and factor the effects of climate change into them.

The law’s supporters say it has kept rates affordable and has given California likely the strongest protections for insurance consumers in the country.&nbsp;

The law’s supporters say it has kept rates affordable and has given California likely the strongest protections for insurance consumers in the country.&nbsp;

But even some of them are starting to have their doubts.

But even some of them are starting to have their doubts.

<h2 class="wp-block-heading" id="h-from-consumer-struggle-to-law">From Consumer Struggle to Law</h2>

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<h2 class="wp-block-heading" id="h-from-consumer-struggle-to-law">From Consumer Struggle to Law</h2>

Prop. 103 emerged from a period in the late 1980s that looked a lot like today: Insurance coverage was hard to find, premiums were out of control and consumers were frustrated.

Prop. 103 emerged from a period in the late 1980s that looked a lot like today: Insurance coverage was hard to find, premiums were out of control and consumers were frustrated.

California required drivers to have auto insurance, but people of color struggled to obtain it due to discrimination, according to Harvey Rosenfield, the founder of Consumer Watchdog.

California required drivers to have auto insurance, but people of color struggled to obtain it due to discrimination, according to Harvey Rosenfield, the founder of Consumer Watchdog.

“It was a full-fledged crisis, just like today,” he said.

“It was a full-fledged crisis, just like today,” he said.

That drove Rosenfield, then a young lawyer and protegé of consumer advocate and later presidential candidate Ralph Nader, to write the bill and lead a campaign for its passage.

That drove Rosenfield, then a young lawyer and protegé of consumer advocate and later presidential candidate Ralph Nader, to write the bill and lead a campaign for its passage.

Despite intense opposition from the insurance industry, the proposition passed in November 1988 with support from 51% of voters.

Despite intense opposition from the insurance industry, the proposition passed in November 1988 with support from 51% of voters.

Consumer advocate Ralph Nader points to a document as he testifies on California's insurance reform Proposition 103 before a House subcommittee on consumer protection on Capitol Hill, Tuesday, Dec. 6, 1988 in Washington. Looking on is Harvey Rosenfield, author of the proposition. They suggested that Congress enact a program of federal insurance reform.

<figure class="wp-block-image size-large"><img height="1651" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2023/09/AP8812060294.jpg?w=2500" alt="" class="wp-image-201760"/><figcaption class="wp-element-caption">Consumer advocate Ralph Nader points to a document as he testifies on California&#8217;s Proposition 103 before a House subcommittee on consumer protection on Capitol Hill in Washington on Dec. 6, 1988. Looking on is Harvey Rosenfield, author of the proposition.</figcaption></figure>

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<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/AP8812060294.jpg?w=2500" alt="" class="wp-image-201760"/><figcaption class="wp-element-caption">Consumer advocate Ralph Nader points to a document as he testifies on California's Proposition 103 before a House subcommittee on consumer protection on Capitol Hill in Washington on Dec. 6, 1988. Looking on is Harvey Rosenfield, author of the proposition.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/AP8812060294.jpg?w=2500" alt="" class="wp-image-201760"/><figcaption class="wp-element-caption">Consumer advocate Ralph Nader points to a document as he testifies on California&#8217;s Proposition 103 before a House subcommittee on consumer protection on Capitol Hill in Washington on Dec. 6, 1988. Looking on is Harvey Rosenfield, author of the proposition.</figcaption></figure>

The law had several key features: It required insurance companies to roll back rates by 20%, made the insurance commissioner an elected official and obligated auto insurers to offer consumers a “good driver” discount.

The law had several key features: It required insurance companies to roll back rates by 20%, made the insurance commissioner an elected official and obligated auto insurers to offer consumers a “good driver” discount.

It also required insurance companies to get prior approval from the California Department of Insurance before raising rates and mandated a public hearing for rate requests above a certain level.

It also required insurance companies to get prior approval from the California Department of Insurance before raising rates and mandated a public hearing for rate requests above a certain level.

That wasn’t even the most contentious part of the law.

That wasn’t even the most contentious part of the law.

“I knew when I wrote [Prop.] 103 that it doesn’t make a difference how good a law is,” Rosenfield said.&nbsp; “If it can’t be enforced or isn’t enforced, it’s useless.”&nbsp;

“I knew when I wrote [Prop.] 103 that it doesn’t make a difference how good a law is,” Rosenfield said.&nbsp; “If it can’t be enforced or isn’t enforced, it’s useless.”&nbsp;

So Rosenfield wrote in a provision unique to California.

So Rosenfield wrote in a provision unique to California.

That provision allows consumers or their representatives—termed “interveners”—to participate in rate hearings, independently scrutinize and challenge unjustified rates, and go to court to sue insurance companies. It also allows the interveners to get the costs of their participation paid by the insurance companies.

That provision allows consumers or their representatives—termed “interveners”—to participate in rate hearings, independently scrutinize and challenge unjustified rates, and go to court to sue insurance companies. It also allows the interveners to get the costs of their participation paid by the insurance companies.

To say that Prop. 103 is unpopular with insurance companies would be an understatement. But the latest moves by Newsom and Lara suggest they, too, believe the regulatory system is out-of-date.

To say that Prop. 103 is unpopular with insurance companies would be an understatement. But the latest moves by Newsom and Lara suggest they, too, believe the regulatory system is out-of-date.

Insurance companies argue that climate change contributed to more extreme wildfires, yet the law requires them to calculate risk based upon the past 20 years, not future projections. The cost of home and auto repairs has skyrocketed, increasing their costs.

Insurance companies argue that climate change contributed to more extreme wildfires, yet the law requires them to calculate risk based upon the past 20 years, not future projections. The cost of home and auto repairs has skyrocketed, increasing their costs.

And high inflation since 2021 has meant that, once an insurance company gets a rate increase approved, they often already need another one, according to Rex Frazier, president of the Personal Insurance Federation of California, an industry lobbying group.

And high inflation since 2021 has meant that, once an insurance company gets a rate increase approved, they often already need another one, according to Rex Frazier, president of the Personal Insurance Federation of California, an industry lobbying group.

“The pricing system we have can function in a low-inflation environment, but the deficiencies of strict price controls become very evident when there’s significant inflation,” Frazier told The Standard in July.

“The pricing system we have can function in a low-inflation environment, but the deficiencies of strict price controls become very evident when there’s significant inflation,” Frazier told The Standard in July.

A wildfire threatens a home in Ventura on Dec. 5, 2017.
New California data shows insurance companies declined to renew nearly 350,000 home insurance policies in areas at high risk for wildfire since the state began collecting data in 2015. Data released this week shows nearly 33,000 policies were not renewed by insurers in zip codes affected by major wildfires in 2015 and 2017. Insurance officials say many people likely found coverage elsewhere, though potentially at higher cost.

<figure class="wp-block-image size-large"><img height="1667" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2023/09/INLINED_Prop103Insurance.jpg?w=2500" alt="" class="wp-image-203963"/><figcaption class="wp-element-caption">A wildfire threatens a home in Ventura on Dec. 5, 2017.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/INLINED_Prop103Insurance.jpg?w=2500" alt="" class="wp-image-203963"/><figcaption class="wp-element-caption">A wildfire threatens a home in Ventura on Dec. 5, 2017.</figcaption></figure>

The rate hearings also can force insurers to reveal proprietary information to the public and their competitors, said Karl Susman, president of the Susman Insurance Agency in Los Angeles and a commentator on insurance issues.

The rate hearings also can force insurers to reveal proprietary information to the public and their competitors, said Karl Susman, president of the Susman Insurance Agency in Los Angeles and a commentator on insurance issues.

“That would be like telling McDonald’s and Burger King: You’ve got to sit down at the table and show us your secret sauces,” he told The Standard.

“That would be like telling McDonald’s and Burger King: You’ve got to sit down at the table and show us your secret sauces,” he told The Standard.

But these assessments of the problem are not universal.&nbsp;

But these assessments of the problem are not universal.&nbsp;

Rosenfield said he attributes the delays in rate approval not to the review process but to understaffing at the Department of Insurance and actions of insurance companies. He isn’t sympathetic to concerns about insurers having to share their “secret sauce.”

Rosenfield said he attributes the delays in rate approval not to the review process but to understaffing at the Department of Insurance and actions of insurance companies. He isn’t sympathetic to concerns about insurers having to share their “secret sauce.”

“I say, ‘too bad,’” he said. “That’s what the voters decided.”

“I say, ‘too bad,’” he said. “That’s what the voters decided.”

Consumer advocate Harvey Rosenfield speaks out against the actions of Insurance Commissioner Chuck Quackenbush's actions during a morning press conference on Thursday, May 4, 2000 in Devnoshire Village Condominiums in Northridge.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/GettyImages-569123917.jpg?w=1728" alt="" class="wp-image-201739"/><figcaption class="wp-element-caption">Consumer advocate Harvey Rosenfield speaks at a morning press conference on May 4, 2000, in Devonshire Village Condominiums in Northridge, California.</figcaption></figure>

There is one other complaint about Prop. 103 that both insurance professionals and Lara himself have vocalized.

There is one other complaint about Prop. 103 that both insurance professionals and Lara himself have vocalized.

In recent years, Consumer Watchdog has become the main intervener during rate hearings. That means the nonprofit has been able to receive millions of dollars in compensation, usually from the insurer, for its in-house expenses and the costs of bringing in outside witnesses.

In recent years, Consumer Watchdog has become the main intervener during rate hearings. That means the nonprofit has been able to receive millions of dollars in compensation, usually from the insurer, for its in-house expenses and the costs of bringing in outside witnesses.

Although he did not name Consumer Watchdog directly, Lara said on Thursday that the organization was “materially benefiting from a process that is meant for a broader public participation.”

Although he did not name Consumer Watchdog directly, Lara said on Thursday that the organization was “materially benefiting from a process that is meant for a broader public participation.”

Rosenfield called that “demonstrably false” and said efforts by a previous insurance commissioner to not pay interveners led to many others having to pull out of the process.

Rosenfield called that “demonstrably false” and said efforts by a previous insurance commissioner to not pay interveners led to many others having to pull out of the process.

He said Consumer Watchdog’s participation has led to $3.5 billion in savings for consumers since 2003.

He said Consumer Watchdog’s participation has led to $3.5 billion in savings for consumers since 2003.

“That’s money that we’ve kept in consumers’ pockets that would be in the industry’s pocket,” Rosenfield said. “The industry hates that.”

“That’s money that we’ve kept in consumers’ pockets that would be in the industry’s pocket,” Rosenfield said. “The industry hates that.”

<h2 class="wp-block-heading" id="h-change-needed">Change Needed?</h2>

Despite Rosenfield’s full-throated defense of Prop. 103, both industry representatives and, increasingly, politicians seem to believe something needs to change.

Despite Rosenfield’s full-throated defense of Prop. 103, both industry representatives and, increasingly, politicians seem to believe something needs to change.

Prior to Newsom and Lara’s announcements, insurance agent Susman said climate change had fundamentally altered insurance and that reform was needed. To respond to the changing reality, there needs to be more trust between consumer advocates and the industry, he told The Standard.

Prior to Newsom and Lara’s announcements, insurance agent Susman said climate change had fundamentally altered insurance and that reform was needed. To respond to the changing reality, there needs to be more trust between consumer advocates and the industry, he told The Standard.

California Governor Gavin Newsom, left, speaks with Assistant Region Chief for Cal Fire Curtis Brown, right, in downtown Greenville, Calif. on August 7, 2021. The Dixie fire has now burned more than 430,000 acres and is the largest single fire in California state history.

<figure class="wp-block-image size-large"><img height="1667" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2023/09/INLINED2_Prop103Insurance.jpg?w=2500" alt="" class="wp-image-203967"/><figcaption class="wp-element-caption">Gov. Gavin Newsom, left, speaks with Assistant Region Chief for Cal Fire Curtis Brown amid the ruins of the Dixie Fire in downtown Greenville on Aug. 7, 2021.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/INLINED2_Prop103Insurance.jpg?w=2500" alt="" class="wp-image-203967"/><figcaption class="wp-element-caption">Gov. Gavin Newsom, left, speaks with Assistant Region Chief for Cal Fire Curtis Brown amid the ruins of the Dixie Fire in downtown Greenville on Aug. 7, 2021.</figcaption></figure>

“We need to be at a place where, if an insurance company can show in math that a model makes sense, it’s nondiscriminatory, it can be justified by math and big numbers, it should be approved,” he said.

“We need to be at a place where, if an insurance company can show in math that a model makes sense, it’s nondiscriminatory, it can be justified by math and big numbers, it should be approved,” he said.

Lara’s reform appears to push the situation in that direction.

Lara’s reform appears to push the situation in that direction.

Last week, Newsom emphasized the gravity of California’s insurance crisis in a conversation with Politico.

Last week, Newsom emphasized the gravity of California’s insurance crisis in a conversation with Politico.

“This is not a yellow-flag issue,” he said during an event organized by the publication. “This is a waving red-flag issue.”&nbsp;

“This is not a yellow-flag issue,” he said during an event organized by the publication. “This is a waving red-flag issue.”&nbsp;

But Amy Bach, who leads the San Francisco-based nonprofit United Policyholders, said Prop. 103 has largely benefited consumers but there is no doubt that California faces big problems.

But Amy Bach, who leads the San Francisco-based nonprofit United Policyholders, said Prop. 103 has largely benefited consumers but there is no doubt that California faces big problems.

“From [Lara’s] perspective, he’s just trying to save the market here,” Bach said days before the announcement. “Competition is so weak right now. We have a very complicated problem on our hands.”

“From [Lara’s] perspective, he’s just trying to save the market here,” Bach said days before the announcement. “Competition is so weak right now. We have a very complicated problem on our hands.”

As for Rosenfield, he is waiting to see Lara and Newsom&#8217;s new strategy in writing to find out whether they will try to alter Prop. 103.

As for Rosenfield, he is waiting to see Lara and Newsom's new strategy in writing to find out whether they will try to alter Prop. 103.

As for Rosenfield, he is waiting to see Lara and Newsom&#8217;s new strategy in writing to find out whether they will try to alter Prop. 103.

“If they try,” he said, “we will sue them, and we will win.”

“If they try,” he said, “we will sue them, and we will win.”

California’s new home, auto insurance strategy is controversial. Here’s why

Astrid Kane

In late September, the wealthiest man in the world waded into San Francisco politics. Apparently upset by a measure being mulled by the Board of Supervisors that would restrict the use of weapons by private security guards, Elon Musk took direct aim at its author.&nbsp;

In late September, the wealthiest man in the world waded into San Francisco politics. Apparently upset by a measure being mulled by the Board of Supervisors that would restrict the use of weapons by private security guards, Elon Musk took direct aim at its author.&nbsp;

“Dean Preston should go to prison,” Musk <a href="https://twitter.com/elonmusk/status/1707725140618858935?s=20">wrote on X</a> to his 174 million followers.

“Dean Preston should go to prison,” Musk <a href="https://twitter.com/elonmusk/status/1707725140618858935?s=20">wrote on X</a> to his 174 million followers.

Musk also pledged to contribute $100,000 to unseat Preston—San Francisco’s lone Democratic Socialist and a tenants rights lawyer—in the November 2024 election, doubling Y Combinator founder Garry Tan’s offer of a $50,000 donation to oust Preston.&nbsp;&nbsp;

Musk also pledged to contribute $100,000 to unseat Preston—San Francisco’s lone Democratic Socialist and a tenants rights lawyer—in the November 2024 election, doubling Y Combinator founder Garry Tan’s offer of a $50,000 donation to oust Preston.&nbsp;&nbsp;

Though Musk has yet to pony up those six figures, the episode illustrated just how well-known, or perhaps infamous, Preston has become—not just in San Francisco but far beyond. Indeed, “Dump Dean” has become less of a call to oust a single supervisor and more of a meme—essentially, among the incumbent’s more vociferous online opponents, a synonym for fixing San Francisco itself.

Though Musk has yet to pony up those six figures, the episode illustrated just how well-known, or perhaps infamous, Preston has become—not just in San Francisco but far beyond. Indeed, “Dump Dean” has become less of a call to oust a single supervisor and more of a meme—essentially, among the incumbent’s more vociferous online opponents, a synonym for fixing San Francisco itself.

A picture of Dump Dean Preston’s page on Grow SF website lists 31 reasons why the oppose Supervisor Dean Preston on March 1, 2024.

<figure class="wp-block-image size-large"><img height="1668" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2024/03/deanprestonprofile-20.jpg?w=2500" alt="A computer screen displays a website with text &quot;Dump Dean Preston&quot; and a man's photo." class="wp-image-254670"/><figcaption class="wp-element-caption">A picture of the &#8220;Dump Dean&#8221; page on Grow SF&#8217;s website lists 31 reasons to oppose Preston.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/03/deanprestonprofile-20.jpg?w=2500" alt="A computer screen displays a website with text &quot;Dump Dean Preston&quot; and a man's photo." class="wp-image-254670"/><figcaption class="wp-element-caption">A picture of the "Dump Dean" page on Grow SF's website lists 31 reasons to oppose Preston.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/03/deanprestonprofile-20.jpg?w=2500" alt="A computer screen displays a website with text &quot;Dump Dean Preston&quot; and a man's photo." class="wp-image-254670"/><figcaption class="wp-element-caption">A picture of the &#8220;Dump Dean&#8221; page on Grow SF&#8217;s website lists 31 reasons to oppose Preston.</figcaption></figure>

To supporters, Preston is a principled lawmaker who has dedicated his entire career to keeping vulnerable people in their homes. During the pandemic, he pushed to extend a residential eviction moratorium and repurpose vacant hotels as shelter for unhoused residents. He was the driving force behind the Gaza cease-fire resolution in January and a 2022 ballot measure shifting mayoral races from odd-numbered years to higher turnout presidential years, which progressives hoped would work to their benefit. He recently introduced a no-turn-on-red bill, and he’s been a strong supporter of car-free Hayes Street.&nbsp;

To supporters, Preston is a principled lawmaker who has dedicated his entire career to keeping vulnerable people in their homes. During the pandemic, he pushed to extend a residential eviction moratorium and repurpose vacant hotels as shelter for unhoused residents. He was the driving force behind the Gaza cease-fire resolution in January and a 2022 ballot measure shifting mayoral races from odd-numbered years to higher turnout presidential years, which progressives hoped would work to their benefit. He recently introduced a no-turn-on-red bill, and he’s been a strong supporter of car-free Hayes Street.&nbsp;

To detractors, however, Preston is an ideologue more interested in lobbing rhetorical Molotov cocktails than in the nitty-gritty of constituent services. His interest in halting Muni’s fare increases by definition starves the beleaguered transit agency of necessary funding. His anti-incarceration stance leaves him open to the accusation that he’s actively abetting the fentanyl crisis and indifferent to his district’s top concerns. And his insistence on affordable housing makes him the city’s No. 1 NIMBY.

To detractors, however, Preston is an ideologue more interested in lobbing rhetorical Molotov cocktails than in the nitty-gritty of constituent services. His interest in halting Muni’s fare increases by definition starves the beleaguered transit agency of necessary funding. His anti-incarceration stance leaves him open to the accusation that he’s actively abetting the fentanyl crisis and indifferent to his district’s top concerns. And his insistence on affordable housing makes him the city’s No. 1 NIMBY.

As a wealthy man who lives in San Francisco’s tony Alamo Square, Preston has faced endless criticism of the “champagne socialist” stripe, along with accusations of hypocrisy when he opposes market-rate housing and police overtime. Consequently, he faces a tough reelection battle in November: Some $300,000 has been raised already to defeat him, by far the most well-funded campaign against any incumbent.

As a wealthy man who lives in San Francisco’s tony Alamo Square, Preston has faced endless criticism of the “champagne socialist” stripe, along with accusations of hypocrisy when he opposes market-rate housing and police overtime. Consequently, he faces a tough reelection battle in November: Some $300,000 has been raised already to defeat him, by far the most well-funded campaign against any incumbent.

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<figure class="wp-block-video alignwide"><video autoplay controls loop muted poster="https://content.sfstandard.com/wp-content/uploads/2024/03/120523_gazaresolution_bos-00_09_09_00-still020.jpg" src="https://content.sfstandard.com/wp-content/uploads/2024/03/20240227_deanprestonprofile_gaza_comments.mp4"></video><figcaption class="wp-element-caption">Preston became emotional when introducing a cease-fire resolution for the Israel-Hamas war at a Board of Supervisors meeting in December.</figcaption></figure>

To be sure, Preston has cultivated a reputation during his five years on the Board of Supervisors as a crusader. As the security-guard weapons measure showed, he is unafraid to tackle hot-button issues. He drafted the legislation after 24-year-old Banko Brown was shot and killed by a security guard at a downtown San Francisco Walgreens last April for allegedly stealing $15 worth of candy. The guard was arrested, but no charges were filed. Crowds protested, and elected officials sought, unsuccessfully, to have the state attorney general step in.&nbsp;

To be sure, Preston has cultivated a reputation during his five years on the Board of Supervisors as a crusader. As the security-guard weapons measure showed, he is unafraid to tackle hot-button issues. He drafted the legislation after 24-year-old Banko Brown was shot and killed by a security guard at a downtown San Francisco Walgreens last April for allegedly stealing $15 worth of candy. The guard was arrested, but no charges were filed. Crowds protested, and elected officials sought, unsuccessfully, to have the state attorney general step in.&nbsp;

&#8220;Property should never be placed above human life, and our laws should be crystal-clear on that,&#8221; Preston said at the time.&nbsp;

"Property should never be placed above human life, and our laws should be crystal-clear on that," Preston said at the time.&nbsp;

&#8220;Property should never be placed above human life, and our laws should be crystal-clear on that,&#8221; Preston said at the time.&nbsp;

Musk’s anger aside, Preston’s measure proved uncontroversial among his colleagues on the board. It passed 11-0, and Mayor London Breed signed it into law.&nbsp;&nbsp;

Musk’s anger aside, Preston’s measure proved uncontroversial among his colleagues on the board. It passed 11-0, and Mayor London Breed signed it into law.&nbsp;&nbsp;

Breed is facing a tough election fight in November as well. Although Supervisor Aaron Peskin is widely expected to enter the race, at present every major mayoral candidate is grouped among the city’s moderates. This makes Preston San Francisco’s most visible progressive at a time when the entire progressive project is under sustained assault.

Breed is facing a tough election fight in November as well. Although Supervisor Aaron Peskin is widely expected to enter the race, at present every major mayoral candidate is grouped among the city’s moderates. This makes Preston San Francisco’s most visible progressive at a time when the entire progressive project is under sustained assault.

Preston is at the center of the city’s political zeitgeist. And depending on how you feel about the state of San Francisco today, you probably either love him or hate him.

Preston is at the center of the city’s political zeitgeist. And depending on how you feel about the state of San Francisco today, you probably either love him or hate him.

<h2 class="wp-block-heading" id="h-from-greenwich-village-to-alamo-square">From Greenwich Village to Alamo Square</h2>

Born in 1969 in New York’s Greenwich Village, Preston grew up with two siblings in a grand, prewar apartment building opposite Washington Square, right near New York University. His mother, Linda, was a native New Yorker. His father, Kenneth, born Hans Albert Pressburger in Stuttgart, Germany, in 1931, fled the Nazis with his parents, arriving in New York in 1941. They founded a medical device distribution company, J. A. Preston, that was later assigned patents for rehabilitative instruments like a hand dynamometer to test grip strength.

Born in 1969 in New York’s Greenwich Village, Preston grew up with two siblings in a grand, prewar apartment building opposite Washington Square, right near New York University. His mother, Linda, was a native New Yorker. His father, Kenneth, born Hans Albert Pressburger in Stuttgart, Germany, in 1931, fled the Nazis with his parents, arriving in New York in 1941. They founded a medical device distribution company, J. A. Preston, that was later assigned patents for rehabilitative instruments like a hand dynamometer to test grip strength.

Preston’s education reflects a privileged upbringing. He graduated from New York’s prestigious Horace Mann School, an Ivy League preparatory academy where tuition today runs about $62,000 per year. Preston then enrolled at Bowdoin College, a small private school in Maine where he later met his wife, Jenckyn Goosby. He graduated magna cum laude in the Class of ’91 with a double major in anthropology and economics.&nbsp;

Preston’s education reflects a privileged upbringing. He graduated from New York’s prestigious Horace Mann School, an Ivy League preparatory academy where tuition today runs about $62,000 per year. Preston then enrolled at Bowdoin College, a small private school in Maine where he later met his wife, Jenckyn Goosby. He graduated magna cum laude in the Class of ’91 with a double major in anthropology and economics.&nbsp;

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<figure class="wp-block-pullquote"><blockquote>“I've never been a landlord in my entire life. I've never even represented a landlord.”<cite>Dean Preston</cite></blockquote></figure>

<figure class="wp-block-pullquote"><blockquote>“I&#8217;ve never been a landlord in my entire life. I&#8217;ve never even represented a landlord.”<cite>Dean Preston</cite></blockquote></figure>

Two years after graduating from Bowdoin, Preston moved to San Francisco with Goosby, who is part of a locally prominent Black family. Her grandfather, Dr. Zuretti Goosby, a dentist in private practice, was the first Black member of the San Francisco Board of Education, appointed in 1967. During his 12-year tenure, “Zoo” rose to become president of that body, helping shepherd the city’s schools out of the era of official racial segregation.&nbsp;

Two years after graduating from Bowdoin, Preston moved to San Francisco with Goosby, who is part of a locally prominent Black family. Her grandfather, Dr. Zuretti Goosby, a dentist in private practice, was the first Black member of the San Francisco Board of Education, appointed in 1967. During his 12-year tenure, “Zoo” rose to become president of that body, helping shepherd the city’s schools out of the era of official racial segregation.&nbsp;

Preston got his law degree from the University of California Hastings in 1996. Initially attracted to international human rights, Preston became a tenants rights lawyer.

Preston got his law degree from the University of California Hastings in 1996. Initially attracted to international human rights, Preston became a tenants rights lawyer.

He worked for seven years at the Tenderloin Housing Clinic, a taxpayer-funded supportive housing nonprofit that has long assisted marginal populations but whose properties <a href="https://sfstandard.com/2023/10/17/san-francisco-homeless-housing-drug-overdose-deaths/">have more recently been the site of fatal overdoses</a>. “What appealed to me,” Preston said to <a href="https://beyondchron.org/dean-preston-to-start-statewide-tenant-organization/">Beyond Chron</a> in 2007, “was doing cases that were about people—rather than paper.”

3 people die of drug overdoses every week in San Francisco supportive housing

He worked for seven years at the Tenderloin Housing Clinic, a taxpayer-funded supportive housing nonprofit that has long assisted marginal populations but whose properties <a href="https://sfstandard.com/2023/10/17/san-francisco-homeless-housing-drug-overdose-deaths/">have more recently been the site of fatal overdoses</a>. “What appealed to me,” Preston said to <a href="https://beyondchron.org/dean-preston-to-start-statewide-tenant-organization/">Beyond Chron</a> in 2007, “was doing cases that were about people—rather than paper.”

A flyer hangs outside of San Francisco District 5 Supervisor Dean Preston’s office in City Hall on Thursday, Dec. 21, 2023. Preston, a Democratic Socialist, will run for re-election next year for his second term.

<figure class="wp-block-image size-large"><img height="1668" width="2500" src="https://content.sfstandard.com/wp-content/uploads/2024/02/inlined02_20240105_deanprestonprofile.jpg?w=2500" alt="a sign in various colors and fonts thanks an elected official for helping people remain in their homes" class="wp-image-253707"/><figcaption class="wp-element-caption">Preston&#8217;s office contains a thank-you from constituents who view him as a leader in helping low-income people stay in their homes.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/02/inlined02_20240105_deanprestonprofile.jpg?w=2500" alt="a sign in various colors and fonts thanks an elected official for helping people remain in their homes" class="wp-image-253707"/><figcaption class="wp-element-caption">Preston's office contains a thank-you from constituents who view him as a leader in helping low-income people stay in their homes.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/02/inlined02_20240105_deanprestonprofile.jpg?w=2500" alt="a sign in various colors and fonts thanks an elected official for helping people remain in their homes" class="wp-image-253707"/><figcaption class="wp-element-caption">Preston&#8217;s office contains a thank-you from constituents who view him as a leader in helping low-income people stay in their homes.</figcaption></figure>

In 2008, Preston left the housing clinic and founded Tenants Together, which describes itself as California’s only statewide renters’ rights organization and which was instrumental in securing a right to an attorney for all San Franciscans facing eviction. It has also fought abuses of the Ellis Act, a controversial California law that enables landlords to clear a building of its tenants before putting it on the market.

In 2008, Preston left the housing clinic and founded Tenants Together, which describes itself as California’s only statewide renters’ rights organization and which was instrumental in securing a right to an attorney for all San Franciscans facing eviction. It has also fought abuses of the Ellis Act, a controversial California law that enables landlords to clear a building of its tenants before putting it on the market.

Meanwhile, the elder Prestons eventually followed Dean and his two siblings west, relocating to San Francisco. They bought a unit at 1333 Jones St., a mid-century apartment tower otherwise known as The Comstock. Linda Preston died in 2009, Kenneth in 2021. A year later, the two-bedroom co-op <a href="https://sfplanninggis.org/pim/?pub=true">sold for $2.6 million</a>.

Meanwhile, the elder Prestons eventually followed Dean and his two siblings west, relocating to San Francisco. They bought a unit at 1333 Jones St., a mid-century apartment tower otherwise known as The Comstock. Linda Preston died in 2009, Kenneth in 2021. A year later, the two-bedroom co-op <a href="https://sfplanninggis.org/pim/?pub=true">sold for $2.6 million</a>.

Preston and his wife own a single-family home in Alamo Square, where they live with their two daughters, and which Zillow estimates to be worth about $2.5 million—roughly three times what they paid for it in 1999. In 2022 and 2023 financial disclosure statements, Preston listed ownership in four blue-chip tech companies, including Apple and Cisco Systems, of between $100,001 and $1 million each. Separately, a Goosby family trust owns several buildings in San Francisco, but since its membership is private, it is unclear whether Jenckyn Goosby receives a portion of any rental income.

Preston and his wife own a single-family home in Alamo Square, where they live with their two daughters, and which Zillow estimates to be worth about $2.5 million—roughly three times what they paid for it in 1999. In 2022 and 2023 financial disclosure statements, Preston listed ownership in four blue-chip tech companies, including Apple and Cisco Systems, of between $100,001 and $1 million each. Separately, a Goosby family trust owns several buildings in San Francisco, but since its membership is private, it is unclear whether Jenckyn Goosby receives a portion of any rental income.

Opponents have pointed to his in-laws’ trust as proof that Preston is a closet landlord, an accusation he denies, adding that he has been part of a tenant lawyers’ organization that explicitly forbids members from owning rental property.

Opponents have pointed to his in-laws’ trust as proof that Preston is a closet landlord, an accusation he denies, adding that he has been part of a tenant lawyers’ organization that explicitly forbids members from owning rental property.

“I&#8217;ve never been a landlord in my entire life,” he said. “I&#8217;ve never even represented a landlord.”

“I've never been a landlord in my entire life,” he said. “I've never even represented a landlord.”

“I&#8217;ve never been a landlord in my entire life,” he said. “I&#8217;ve never even represented a landlord.”

<h2 class="wp-block-heading" id="h-the-only-democratic-socialist">The only Democratic Socialist</h2>

In person, Preston is soft-spoken, with a tendency toward defensiveness. More than casting oratorical thunderbolts down from Marxist Mount Olympus, he waded into the minutiae of city policy while pausing to greet supporters who interrupted to say hello during a recent interview at a Peet’s near City Hall.&nbsp;

In person, Preston is soft-spoken, with a tendency toward defensiveness. More than casting oratorical thunderbolts down from Marxist Mount Olympus, he waded into the minutiae of city policy while pausing to greet supporters who interrupted to say hello during a recent interview at a Peet’s near City Hall.&nbsp;

Online, though, he has been belligerent toward constituents, with a tendency to assign blame for multifaceted issues on capitalism. He has been called a mansplainer. Shortly after Musk tweeted for his imprisonment, he left the platform altogether.

Online, though, he has been belligerent toward constituents, with a tendency to assign blame for multifaceted issues on capitalism. He has been called a mansplainer. Shortly after Musk tweeted for his imprisonment, he left the platform altogether.

One’s opinion about Preston’s five years in office may be ascertained with a simple word-association exercise. If the term “socialism” evokes Copenhagen’s ample bike lanes and free health care in your mind, you probably like Dean Preston. If it suggests Caracas’ hyperinflation and breakdown of civil order, you’re maybe not such a fan.&nbsp;

One’s opinion about Preston’s five years in office may be ascertained with a simple word-association exercise. If the term “socialism” evokes Copenhagen’s ample bike lanes and free health care in your mind, you probably like Dean Preston. If it suggests Caracas’ hyperinflation and breakdown of civil order, you’re maybe not such a fan.&nbsp;

Perhaps more than his personality, it’s Preston’s affiliation with the 90,000-member strong Democratic Socialists of America that strongly colors opinions about him. To some, the organization’s anti-Zionist stance is disqualifying right out of the gate. To others, it’s a sign that a well-off Gen Xer grasps millennial and Gen Z anxieties about the future. Preston is undeterred.

Perhaps more than his personality, it’s Preston’s affiliation with the 90,000-member strong Democratic Socialists of America that strongly colors opinions about him. To some, the organization’s anti-Zionist stance is disqualifying right out of the gate. To others, it’s a sign that a well-off Gen Xer grasps millennial and Gen Z anxieties about the future. Preston is undeterred.

Supervisor Dean Preston joins DSA and other community groups in celebrating  that the empty homes Tax has enough petition signatures to qualify for the ballot, at San Francisco City Hall on Thursday, June 30, 2022. | Camille Cohen/The Standard

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/02/inlined03_20240105_deanprestonprofile.jpg?w=2500" alt="Dean Preston stands in profile with his hands clasped. He is wearing a blue dress shit and gray jacket and standing in front of a younger Latinx person holding a protest sign." class="wp-image-253708"/><figcaption class="wp-element-caption">Preston&#8217;s affiliation with the Democratic Socialists of America has brought him both admiration and scrutiny.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/02/inlined03_20240105_deanprestonprofile.jpg?w=2500" alt="Dean Preston stands in profile with his hands clasped. He is wearing a blue dress shit and gray jacket and standing in front of a younger Latinx person holding a protest sign." class="wp-image-253708"/><figcaption class="wp-element-caption">Preston's affiliation with the Democratic Socialists of America has brought him both admiration and scrutiny.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/02/inlined03_20240105_deanprestonprofile.jpg?w=2500" alt="Dean Preston stands in profile with his hands clasped. He is wearing a blue dress shit and gray jacket and standing in front of a younger Latinx person holding a protest sign." class="wp-image-253708"/><figcaption class="wp-element-caption">Preston&#8217;s affiliation with the Democratic Socialists of America has brought him both admiration and scrutiny.</figcaption></figure>

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