Anna Tong

Two dozen of San Francisco’s top YIMBYs gathered in a spacious Bernal Heights backyard in September to discuss the movement founder’s latest venture: a $1 million cash reserve to take San Francisco to court should it stymie any new housing projects.

core/paragraph

<p>Two dozen of San Francisco’s top YIMBYs gathered in a spacious Bernal Heights backyard in September to discuss the movement founder’s latest venture: a $1 million cash reserve to take San Francisco to court should it stymie any new housing projects.</p>

YIMBY founder Sonja Trauss, who led a group discussion about the annals of housing policy while soothing her newborn baby, likened the Sue San Francisco Fund to a denial-of-service (DoS) attack on the city, referring to a type of cyber strike that paralyzes its target by blitzing it with an overwhelming number of requests.

<p>YIMBY founder Sonja Trauss, who led a group discussion about the annals of housing policy while soothing her newborn baby, likened the Sue San Francisco Fund to a denial-of-service (DoS) attack on the city, referring to a type of cyber strike that paralyzes its target by blitzing it with an overwhelming number of requests.</p>

“The denial-of-service portion is because we could send threatening letters for every single missed housing deadline,” Trauss said, describing the money as <a href="https://sfstandard.com/housing-development/woman-stockpiling-cash-to-sue-sf-over-housing/">ready-to-go ammunition</a> to sue San Francisco over housing deadlock.

<p>“The denial-of-service portion is because we could send threatening letters for every single missed housing deadline,” Trauss said, describing the money as <a href="https://sfstandard.com/housing-development/woman-stockpiling-cash-to-sue-sf-over-housing/">ready-to-go ammunition</a> to sue San Francisco over housing deadlock.</p>

The crowd of mostly male tech workers—the “<a href="https://books.google.com/books?id=aeUlEAAAQBAJ&amp;pg=PA138&amp;lpg=PA138&amp;dq=conor+dougherty+%22hoodie+caucus%22&amp;source=bl&amp;ots=1KRe-pnlN8&amp;sig=ACfU3U0DuAccYcX1Z4edv8L-PgDGyS8C-A&amp;hl=en&amp;sa=X&amp;ved=2ahUKEwjHpI35mIv7AhVgDkQIHWWWD0oQ6AF6BAgNEAM#v=onepage&amp;q=conor%20dougherty%20%22hoodie%20caucus%22&amp;f=false" target="_blank" rel="noreferrer noopener">hoodie caucus</a>,” in the words of one industry observer—rippled with excitement. This was a problem that could be solved with software and automation, which was squarely in their domain.

<p>The crowd of mostly male tech workers—the “<a href="https://books.google.com/books?id=aeUlEAAAQBAJ&amp;pg=PA138&amp;lpg=PA138&amp;dq=conor+dougherty+%22hoodie+caucus%22&amp;source=bl&amp;ots=1KRe-pnlN8&amp;sig=ACfU3U0DuAccYcX1Z4edv8L-PgDGyS8C-A&amp;hl=en&amp;sa=X&amp;ved=2ahUKEwjHpI35mIv7AhVgDkQIHWWWD0oQ6AF6BAgNEAM#v=onepage&amp;q=conor%20dougherty%20%22hoodie%20caucus%22&amp;f=false" target="_blank" rel="noreferrer noopener">hoodie caucus</a>,” in the words of one industry observer—rippled with excitement. This was a problem that could be solved with software and automation, which was squarely in their domain.</p>

“We could make it so that every time the city does something out of compliance, we automatically generate a lawsuit letter, kind of like DoNotPay,” offered one sandals-clad engineer, referring to a website that calls itself “the world’s first robot lawyer.”

<p>“We could make it so that every time the city does something out of compliance, we automatically generate a lawsuit letter, kind of like DoNotPay,” offered one sandals-clad engineer, referring to a website that calls itself “the world’s first robot lawyer.”</p>

For the rest of the evening, the group nerded out on one arcane housing acronym to the next. The mood was celebratory.

<p>For the rest of the evening, the group nerded out on one arcane housing acronym to the next. The mood was celebratory.</p>

Sonja Trauss speaks to YIMBY organizers and board members at an event in San Francisco, Calif., on Thursday, September 29, 2022. Trauss is the executive director and founder of YIMBY Law, an organization that enforces housing laws in California and facilitates community organizing around housing issues. | Juliana Yamada for The Standard


<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/10/YimbyMaturation090922_FEATURE.jpg" alt="" class="wp-image-88128"/><figcaption>Sonja Trauss speaks to YIMBY organizers and board members at an event in San Francisco on Sept. 29, 2022. | Juliana Yamada for The Standard</figcaption></figure>


core/image

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/10/YimbyMaturation090922_FEATURE.jpg" alt="" class="wp-image-88128"/><figcaption>Sonja Trauss speaks to YIMBY organizers and board members at an event in San Francisco on Sept. 29, 2022. | Juliana Yamada for The Standard</figcaption></figure>

YIMBYs—the “yes in my backyard” housing boosters—have reason to be optimistic.

<p>YIMBYs—the “yes in my backyard” housing boosters—have reason to be optimistic.</p>

To borrow a phrase from tech, their cause has been in hyper-growth mode. In about a decade, Trauss went from a lone dissenter facing off against neighborhood activists in San Francisco Planning Commission meetings to the figurehead for a sprawling <a href="https://www.brookings.edu/blog/the-avenue/2022/03/31/where-pro-housing-groups-are-emerging/" target="_blank" rel="noreferrer noopener">movement with 140 groups in 29 states</a> that goes toe-to-toe with local politicians and homeowners over housing construction.

<p>To borrow a phrase from tech, their cause has been in hyper-growth mode. In about a decade, Trauss went from a lone dissenter facing off against neighborhood activists in San Francisco Planning Commission meetings to the figurehead for a sprawling <a href="https://www.brookings.edu/blog/the-avenue/2022/03/31/where-pro-housing-groups-are-emerging/" target="_blank" rel="noreferrer noopener">movement with 140 groups in 29 states</a> that goes toe-to-toe with local politicians and homeowners over housing construction.</p>

But on their home turf, YIMBYs have watched their goals slip seemingly further and further out of reach. Last year, the city authorized <a href="https://sfplanning.org/sites/default/files/documents/reports/2021_Housing_Inventory.pdf" target="_blank" rel="noreferrer noopener">43% fewer units</a> than its 10-year average. The Board of Supervisors has recently thwarted projects like a high-rise on an empty parking lot, <a href="https://sfstandard.com/housing-development/happy-one-year-anniversary-to-sfs-peak-nimby-moment/">drawing protests</a>. In comparison, California as a whole has nearly tripled the number of annual housing permits issued in the last decade, according to the Census Bureau.

<p>But on their home turf, YIMBYs have watched their goals slip seemingly further and further out of reach. Last year, the city authorized <a href="https://sfplanning.org/sites/default/files/documents/reports/2021_Housing_Inventory.pdf" target="_blank" rel="noreferrer noopener">43% fewer units</a> than its 10-year average. The Board of Supervisors has recently thwarted projects like a high-rise on an empty parking lot, <a href="https://sfstandard.com/housing-development/happy-one-year-anniversary-to-sfs-peak-nimby-moment/">drawing protests</a>. In comparison, California as a whole has nearly tripled the number of annual housing permits issued in the last decade, according to the Census Bureau.</p>

core/html

core/columns

The San Francisco YIMBYs—many of whom are tech founders who got rich from thinking big—are fed up with incrementalism.

<p>The San Francisco YIMBYs—many of whom are tech founders who got rich from thinking big—are fed up with incrementalism.</p>

Forget trudging to City Hall to kiss politicians’ rings or sparring with neighborhood activists at planning meetings. YIMBYs and developers now believe that public support for housing, wealthy donors and state backing have created a perfect storm that will allow the building process to circumvent San Francisco city government entirely.

<p>Forget trudging to City Hall to kiss politicians’ rings or sparring with neighborhood activists at planning meetings. YIMBYs and developers now believe that public support for housing, wealthy donors and state backing have created a perfect storm that will allow the building process to circumvent San Francisco city government entirely.</p>

First up is Proposition D on the November ballot, where San Francisco voters will decide whether to streamline the construction of certain apartment projects, both affordable and market-rate. YIMBYs and their allies gathered signatures for the measure after the Board of Supervisors twice prevented Mayor London Breed’s attempt to get it passed. In a testament to their political might, the campaign has <a href="https://sfethics.org/ethics/2022/07/campaign-finance-dashboards-november-8-2022.html" target="_blank" rel="noreferrer noopener">raised over $2.3 million</a> so far.

<p>First up is Proposition D on the November ballot, where San Francisco voters will decide whether to streamline the construction of certain apartment projects, both affordable and market-rate. YIMBYs and their allies gathered signatures for the measure after the Board of Supervisors twice prevented Mayor London Breed’s attempt to get it passed. In a testament to their political might, the campaign has <a href="https://sfethics.org/ethics/2022/07/campaign-finance-dashboards-november-8-2022.html" target="_blank" rel="noreferrer noopener">raised over $2.3 million</a> so far.</p>


<h2 class="wp-block-heading">Birth of a Movement—and Its Critics</h2>


core/heading

<h2>Birth of a Movement—and Its Critics</h2>

Nowadays, San Francisco may be better known for its tech companies than political activism. But it was the city’s tech boom that laid the groundwork for what has become an unusually successful activist movement.

<p>Nowadays, San Francisco may be better known for its tech companies than political activism. But it was the city’s tech boom that laid the groundwork for what has become an unusually successful activist movement.</p>

A YIMBY writ large is a person who believes that rising rents, homelessness and inequality could be solved if cities allow for denser housing. The San Francisco of the past decade—when rising rents collided with fewer homes getting built—catalyzed the yes-in-my-backyard movement.&nbsp;

<p>A YIMBY writ large is a person who believes that rising rents, homelessness and inequality could be solved if cities allow for denser housing. The San Francisco of the past decade—when rising rents collided with fewer homes getting built—catalyzed the yes-in-my-backyard movement.&nbsp;</p>

In the eyes of many locals, the skyrocketing startup sector was to blame for the housing crisis: Techies were clogging their neighborhoods, driving up rents and turning the city into a gentrifying playground for the rich. Protestors <a href="https://www.vox.com/2014/4/2/11625220/splashy-tactics-tech-shuttle-protestor-vomits-on-yahoo-bus" target="_blank" rel="noreferrer noopener">vomited on a Yahoo corporate shuttle</a>, as graffiti reading “Die techie scum” sprouted in the Mission District.&nbsp;Many believed that the housing market had become so out of whack that there was no way new market-rate housing could be affordable.

<p>In the eyes of many locals, the skyrocketing startup sector was to blame for the housing crisis: Techies were clogging their neighborhoods, driving up rents and turning the city into a gentrifying playground for the rich. Protestors <a href="https://www.vox.com/2014/4/2/11625220/splashy-tactics-tech-shuttle-protestor-vomits-on-yahoo-bus" target="_blank" rel="noreferrer noopener">vomited on a Yahoo corporate shuttle</a>, as graffiti reading “Die techie scum” sprouted in the Mission District.&nbsp;Many believed that the housing market had become so out of whack that there was no way new market-rate housing could be affordable.</p>

Ten years ago, Trauss was new to the Bay Area and struggling to afford rent. But she saw the housing issues differently.

<p>Ten years ago, Trauss was new to the Bay Area and struggling to afford rent. But she saw the housing issues differently.</p>

She had just come from St. Louis and Philadelphia, two places that didn’t have enough jobs, and she had seen what too few jobs did to a city.

<p>She had just come from St. Louis and Philadelphia, two places that didn’t have enough jobs, and she had seen what too few jobs did to a city.</p>

“It was just so unbelievable for people to be like, &#8216;Our big civic issue is too many jobs,&#8217;” she said. “The problem was too little housing.”

<p>“It was just so unbelievable for people to be like, 'Our big civic issue is too many jobs,'” she said. “The problem was too little housing.”</p>

<p>“It was just so unbelievable for people to be like, &#8216;Our big civic issue is too many jobs,&#8217;” she said. “The problem was too little housing.”</p>

The real culprit, she said? It was NIMBYs—an acronym for “not in my backyard,” or neighbors who oppose housing construction—often the loudest voices in the room when city officials decided whether to approve new housing projects, according to Trauss.

<p>The real culprit, she said? It was NIMBYs—an acronym for “not in my backyard,” or neighbors who oppose housing construction—often the loudest voices in the room when city officials decided whether to approve new housing projects, according to Trauss.</p>

So in 2014, Trauss decided to take a day off work to go to San Francisco City Hall to counteract the NIMBYs, according to Golden Gates, a book documenting the rise of YIMBY. A few months later, she convinced a group of fellow millennials to speak in favor of housing developments, garnering coverage in the likes of The San Francisco Examiner, Vox and Bloomberg. By the year’s end, Yelp CEO Jeremy Stoppelman gave Trauss $10,000, enabling her to quit her teaching job to become a full-time activist.

<p>So in 2014, Trauss decided to take a day off work to go to San Francisco City Hall to counteract the NIMBYs, according to Golden Gates, a book documenting the rise of YIMBY. A few months later, she convinced a group of fellow millennials to speak in favor of housing developments, garnering coverage in the likes of The San Francisco Examiner, Vox and Bloomberg. By the year’s end, Yelp CEO Jeremy Stoppelman gave Trauss $10,000, enabling her to quit her teaching job to become a full-time activist.</p>

Over the next several years, Trauss’ activism evolved from City Hall gadfly-ism into real political clout. Laura Foote, a political organizer, joined forces with Trauss and assembled a foot army that helped then-Supervisor Scott Wiener get elected to the state Senate.

<p>Over the next several years, Trauss’ activism evolved from City Hall gadfly-ism into real political clout. Laura Foote, a political organizer, joined forces with Trauss and assembled a foot army that helped then-Supervisor Scott Wiener get elected to the state Senate.</p>

Foote said a lot of the movement’s organizational success revolved around fostering a community who clearly understood the organization’s goals, and then empowering them through a decentralized management structure. For example, the organization has 35 volunteer leads who don’t need approval from an official employee to carry out important tasks like sending out newsletters.

<p>Foote said a lot of the movement’s organizational success revolved around fostering a community who clearly understood the organization’s goals, and then empowering them through a decentralized management structure. For example, the organization has 35 volunteer leads who don’t need approval from an official employee to carry out important tasks like sending out newsletters.</p>

President Barack Obama chats with then San Francisco Mayor Gavin Newsom in 2010. Both politicians made increased housing a priority during their tenures.  | Mandel Ngan/AFP via Getty Images


<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/10/YIMBYmaturation_INLINED03.jpg" alt="" class="wp-image-88147"/><figcaption>President Barack Obama chats with then-San Francisco Mayor Gavin Newsom in 2010. Both politicians made increased housing a priority during their tenures.  | Mandel Ngan/AFP via Getty Images</figcaption></figure>


But there were major bumps in the road. In 2018, the YIMBYs ran a <a href="https://prop.yimbyaction.org/" target="_blank" rel="noreferrer noopener">failed ballot initiative</a> to streamline certain types of construction. Trauss ran to represent the SoMa district on the Board of Supervisors and got trounced by Matt Haney, who was then firmly aligned with the city’s progressive political faction. Once equating a lack of desire to build housing in the Mission to xenophobia, Trauss herself really pissed people off.&nbsp;

<p>But there were major bumps in the road. In 2018, the YIMBYs ran a <a href="https://prop.yimbyaction.org/" target="_blank" rel="noreferrer noopener">failed ballot initiative</a> to streamline certain types of construction. Trauss ran to represent the SoMa district on the Board of Supervisors and got trounced by Matt Haney, who was then firmly aligned with the city’s progressive political faction. Once equating a lack of desire to build housing in the Mission to xenophobia, Trauss herself really pissed people off.&nbsp;</p>

Since then, political winds have shifted dramatically: As San Francisco’s Downtown <a href="https://sfstandard.com/business/san-francisco-braces-for-epic-commercial-real-estate-crash/" target="_blank" rel="noreferrer noopener">emptied out during Covid</a>, the anti-tech narrative lost steam.

<p>Since then, political winds have shifted dramatically: As San Francisco’s Downtown <a href="https://sfstandard.com/business/san-francisco-braces-for-epic-commercial-real-estate-crash/" target="_blank" rel="noreferrer noopener">emptied out during Covid</a>, the anti-tech narrative lost steam.</p>

Today, politicians ranging from Gov. Gavin Newsom and former President Barack Obama to current President Joe Biden have made more housing a key initiative. And the movement succeeded in turning “NIMBY” into a derogatory term for selfish homeowners—often in wealthy communities—who don’t want new buildings, let alone people, in their backyards.

<p>Today, politicians ranging from Gov. Gavin Newsom and former President Barack Obama to current President Joe Biden have made more housing a key initiative. And the movement succeeded in turning “NIMBY” into a derogatory term for selfish homeowners—often in wealthy communities—who don’t want new buildings, let alone people, in their backyards.</p>

New pro-housing groups are forming at a strong clip, according to a recent <a href="https://www.brookings.edu/blog/the-avenue/2022/03/31/where-pro-housing-groups-are-emerging/" target="_blank" rel="noreferrer noopener">Brookings Institute study</a>. Of the 140 identified, 24 were in the Bay Area—the biggest and oldest of which is San Francisco-based YIMBY Action, with 10 full-time staff, nearly 2,500 dues-paying members and many more non-dues-paying members. Another group, the statewide California YIMBY, boasts 15 full-time staffers and 80,000 members after only five years in existence. California YIMBY has sponsored 17 statewide bills, which have been key in weakening local officials&#8217; ability to block construction.

<p>New pro-housing groups are forming at a strong clip, according to a recent <a href="https://www.brookings.edu/blog/the-avenue/2022/03/31/where-pro-housing-groups-are-emerging/" target="_blank" rel="noreferrer noopener">Brookings Institute study</a>. Of the 140 identified, 24 were in the Bay Area—the biggest and oldest of which is San Francisco-based YIMBY Action, with 10 full-time staff, nearly 2,500 dues-paying members and many more non-dues-paying members. Another group, the statewide California YIMBY, boasts 15 full-time staffers and 80,000 members after only five years in existence. California YIMBY has sponsored 17 statewide bills, which have been key in weakening local officials' ability to block construction.</p>

<p>New pro-housing groups are forming at a strong clip, according to a recent <a href="https://www.brookings.edu/blog/the-avenue/2022/03/31/where-pro-housing-groups-are-emerging/" target="_blank" rel="noreferrer noopener">Brookings Institute study</a>. Of the 140 identified, 24 were in the Bay Area—the biggest and oldest of which is San Francisco-based YIMBY Action, with 10 full-time staff, nearly 2,500 dues-paying members and many more non-dues-paying members. Another group, the statewide California YIMBY, boasts 15 full-time staffers and 80,000 members after only five years in existence. California YIMBY has sponsored 17 statewide bills, which have been key in weakening local officials&#8217; ability to block construction.</p>


<h2 class="wp-block-heading" id="h-stymied-in-san-francisco">Stymied in San Francisco</h2>


<h2 id="h-stymied-in-san-francisco">Stymied in San Francisco</h2>

Despite the momentum in recent years, San Francisco’s politicians have failed to authorize more housing.

<p>Despite the momentum in recent years, San Francisco’s politicians have failed to authorize more housing.</p>

A year ago, San Francisco politicians rejected a 495-unit high-rise in SoMa that was to be built on a parking lot, citing <a href="https://sfstandard.com/housing-development/supervisors-under-fire-vote-against-proposed-soma-apartment-building-sparks-furor-may-violate-state-law/">shadows and concern about gentrification</a>. Weeks before that, the same politicians unanimously rejected a 316-unit development in the Tenderloin—a project that was previously authorized by the Planning Department—over concerns that it <a href="https://therealdeal.com/sanfrancisco/2021/10/06/city-rejects-micro-homes-project-in-tenderloin/" target="_blank" rel="noreferrer noopener">would become a “tech dorm”</a> instead of family housing.

<p>A year ago, San Francisco politicians rejected a 495-unit high-rise in SoMa that was to be built on a parking lot, citing <a href="https://sfstandard.com/housing-development/supervisors-under-fire-vote-against-proposed-soma-apartment-building-sparks-furor-may-violate-state-law/">shadows and concern about gentrification</a>. Weeks before that, the same politicians unanimously rejected a 316-unit development in the Tenderloin—a project that was previously authorized by the Planning Department—over concerns that it <a href="https://therealdeal.com/sanfrancisco/2021/10/06/city-rejects-micro-homes-project-in-tenderloin/" target="_blank" rel="noreferrer noopener">would become a “tech dorm”</a> instead of family housing.</p>

An aerial of the parking lot at 469 Stevenson Street in  the Tenderloin District of San Francisco, Calif. on October 28, 2021. Local politicians rejected building housing on the location citing shadows to the adjacent neighbors and that it might encourage gentrification to the area. | The Standard


<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/10/YIMBYmaturation_INLINED04.jpg" alt="" class="wp-image-88153"/><figcaption>An aerial of the parking lot at 469 Stevenson St. in the SoMa District of San Francisco on Oct. 28, 2021 | The Standard</figcaption></figure>


Critics of the YIMBY movement say that they aren&#8217;t opposed to building housing, it&#8217;s that they believe the government needs to focus on getting below-market-rate housing built.

<p>Critics of the YIMBY movement say that they aren't opposed to building housing, it's that they believe the government needs to focus on getting below-market-rate housing built. </p>

<p>Critics of the YIMBY movement say that they aren&#8217;t opposed to building housing, it&#8217;s that they believe the government needs to focus on getting below-market-rate housing built. </p>

“It’s a fantasy that somehow more supply will start driving the price of housing down,” said Joseph Smooke, who in 2015 architected a failed ballot initiative to halt the construction of market-rate housing in the Mission, citing gentrification and displacement. “Could we embark on an accountable system for creating housing for people without relying on the market? Probably.”

<p>“It’s a fantasy that somehow more supply will start driving the price of housing down,” said Joseph Smooke, who in 2015 architected a failed ballot initiative to halt the construction of market-rate housing in the Mission, citing gentrification and displacement. “Could we embark on an accountable system for creating housing for people without relying on the market? Probably.”</p>

Critics also contend that YIMBYism is just a convenient way for the real estate industry to rebrand itself. Walk into any local YIMBY meeting, and the majority of attendees will be people who can afford luxury condos: white, male tech workers.

<p>Critics also contend that YIMBYism is just a convenient way for the real estate industry to rebrand itself. Walk into any local YIMBY meeting, and the majority of attendees will be people who can afford luxury condos: white, male tech workers.</p>

&#8220;It’s beyond absurd that YIMBY—the very folks who are fine with demolishing people’s homes, evicting people and minimizing affordable housing mandates in our City—would accuse me of being &#8216;anti-housing&#8217; &#8230; [YIMBYism] is not pro-housing, it is pro-developer, plain and simple,&#8221; said Supervisor Dean Preston, who regularly squabbles with YIMBYs on Twitter. He staunchly defends his housing record, citing his two decades as an eviction defense attorney and support of affordable housing.

<p>"It’s beyond absurd that YIMBY—the very folks who are fine with demolishing people’s homes, evicting people and minimizing affordable housing mandates in our City—would accuse me of being 'anti-housing' ... [YIMBYism] is not pro-housing, it is pro-developer, plain and simple," said Supervisor Dean Preston, who regularly squabbles with YIMBYs on Twitter. He staunchly defends his housing record, citing his two decades as an eviction defense attorney and support of affordable housing.</p>

<p>&#8220;It’s beyond absurd that YIMBY—the very folks who are fine with demolishing people’s homes, evicting people and minimizing affordable housing mandates in our City—would accuse me of being &#8216;anti-housing&#8217; &#8230; [YIMBYism] is not pro-housing, it is pro-developer, plain and simple,&#8221; said Supervisor Dean Preston, who regularly squabbles with YIMBYs on Twitter. He staunchly defends his housing record, citing his two decades as an eviction defense attorney and support of affordable housing.</p>


<h2 class="wp-block-heading">Bigger, Bolder Plans</h2>


The YIMBYs have all but given up on arguing their side in Planning Commission meetings, instead setting their sights on bigger plans.&nbsp;

<p>The YIMBYs have all but given up on arguing their side in Planning Commission meetings, instead setting their sights on bigger plans.&nbsp;</p>

Among their current targets is a statute in the annals of California housing law, <a href="https://twitter.com/CSElmendorf/status/1080250998549995520" target="_blank" rel="noreferrer noopener">re-surfaced on Twitter</a> by the UC Davis law professor Chris Elmendorf in 2019.

<p>Among their current targets is a statute in the annals of California housing law, <a href="https://twitter.com/CSElmendorf/status/1080250998549995520" target="_blank" rel="noreferrer noopener">re-surfaced on Twitter</a> by the UC Davis law professor Chris Elmendorf in 2019.</p>

Called the “builder’s remedy,” the statute kicks in when cities don’t have a state-approved housing plan to accommodate projected population growth. At that point, cities are powerless to stop certain types of construction.

<p>Called the “builder’s remedy,” the statute kicks in when cities don’t have a state-approved housing plan to accommodate projected population growth. At that point, cities are powerless to stop certain types of construction.</p>

Construction at the UC Hastings Student Housing at 198 McAllister St in Tenderloin-Hayes Point, 198 McAllister Street in San Francisco on Wednesday, Sep 21, 2022. The building is an example of a major residential development that made it through the lengthy San Francisco permitting process. | Felix Uribe Jr for The Standard


<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2022/10/YIMBYmaturation_INLINED06-2500x1667.jpg" alt="" class="wp-image-88157"/><figcaption>Construction at the UC Hastings Student Housing at 198 McAllister St. in Tenderloin-Hayes Point on Sept. 21, 2022 | Felix Uribe Jr. for The Standard</figcaption></figure>


Before this year, utilization of the builder’s remedy had only been attempted once, in 1991, Elmendorf said. But as state housing targets ramp up, a Santa Monica developer recently <a href="https://www.latimes.com/homeless-housing/story/2022-10-24/santa-monica-housing-apartment-boom" target="_blank" rel="noreferrer noopener">submitted a plan to build 4,500 units using the builder’s remedy,</a> which would be more housing than Santa Monica has built in the past decade. (A “stunned” <a href="https://www.latimes.com/homeless-housing/story/2022-10-24/santa-monica-housing-apartment-boom" target="_blank" rel="noreferrer noopener">Santa Monica councilmember called the plan “beyond the pale.”</a>)

<p>Before this year, utilization of the builder’s remedy had only been attempted once, in 1991, Elmendorf said. But as state housing targets ramp up, a Santa Monica developer recently <a href="https://www.latimes.com/homeless-housing/story/2022-10-24/santa-monica-housing-apartment-boom" target="_blank" rel="noreferrer noopener">submitted a plan to build 4,500 units using the builder’s remedy,</a> which would be more housing than Santa Monica has built in the past decade. (A “stunned” <a href="https://www.latimes.com/homeless-housing/story/2022-10-24/santa-monica-housing-apartment-boom" target="_blank" rel="noreferrer noopener">Santa Monica councilmember called the plan “beyond the pale.”</a>)</p>

San Francisco YIMBYs are already strategizing around the obscure law. If the city misses a key February deadline to get its housing plan, called the Housing Element, approved by the state, local developers <a href="https://sfstandard.com/housing-development/state-housing-probe-begins-as-sf-races-to-meet-key-deadline/">may have a window early next year to bypass city government in one fell swoop.</a>

<p>San Francisco YIMBYs are already strategizing around the obscure law. If the city misses a key February deadline to get its housing plan, called the Housing Element, approved by the state, local developers <a href="https://sfstandard.com/housing-development/state-housing-probe-begins-as-sf-races-to-meet-key-deadline/">may have a window early next year to bypass city government in one fell swoop.</a></p>

“All we need is for a billionaire like Sam Altman to propose building a 100-story tower on his Russian Hill property and create 100 new affordable units,” said Barak Gila, a software developer whose side passion is YIMBY activism.

<p>“All we need is for a billionaire like Sam Altman to propose building a 100-story tower on his Russian Hill property and create 100 new affordable units,” said Barak Gila, a software developer whose side passion is YIMBY activism.</p>

Builders increasingly don’t feel the need to play ball with city officials, Elmendorf said.

<p>Builders increasingly don’t feel the need to play ball with city officials, Elmendorf said.</p>

“There are now a variety of ways in which a developer does not need to rely on their close and possibly corrupt relations to build housing,” he said. “I’m hearing this anecdotally from lawyers who are saying they are starting to see developers who are moving towards ‘I’m going to stand on my rights’ and are comfortable going head-to-head with hostile city councils.”

<p>“There are now a variety of ways in which a developer does not need to rely on their close and possibly corrupt relations to build housing,” he said. “I’m hearing this anecdotally from lawyers who are saying they are starting to see developers who are moving towards ‘I’m going to stand on my rights’ and are comfortable going head-to-head with hostile city councils.”</p>


<h2 class="wp-block-heading">NIMBY to YIMBY Pipeline</h2>


Ironically, it might be the case that soon YIMBYs won’t even need to circumvent local politicians. For up-and-coming politicians, running on a pro-housing platform is starting to look like table stakes.

<p>Ironically, it might be the case that soon YIMBYs won’t even need to circumvent local politicians. For up-and-coming politicians, running on a pro-housing platform is starting to look like table stakes.</p>

Mayor London Breed speaks at a press conference promoting affordable housing in San Francisco at City Hall, on Oct. 29, 2022. Housing advocates and members of the Carpenters Union of San Francisco were there in support of Proposition D. | Camille Cohen/The Standard


<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2022/10/YIMBYmaturation_INLINED07.jpg" alt="" class="wp-image-88162"/><figcaption>Mayor London Breed speaks at a press conference promoting affordable housing at San Francisco City Hall on Oct. 29, 2022. Housing advocates and members of the Carpenters Union of San Francisco were there in support of Proposition D. | Camille Cohen/The Standard</figcaption></figure>


Earlier this year, former Supervisor Matt Haney—who had opposed various housing initiatives earlier on—adopted a pro-housing stance to trounce his opponent in a race for an open state Assembly seat. The candidates shared virtually identical platforms except on housing, and <a href="https://therealdeal.com/sanfrancisco/2022/04/20/pro-housing-stance-credited-for-haney-victory/" target="_blank" rel="noreferrer noopener">many credited that for his victory</a>.

<p>Earlier this year, former Supervisor Matt Haney—who had opposed various housing initiatives earlier on—adopted a pro-housing stance to trounce his opponent in a race for an open state Assembly seat. The candidates shared virtually identical platforms except on housing, and <a href="https://therealdeal.com/sanfrancisco/2022/04/20/pro-housing-stance-credited-for-haney-victory/" target="_blank" rel="noreferrer noopener">many credited that for his victory</a>.</p>

In the upcoming November election, candidates for city supervisor are beginning to follow suit. Sunset District representative Gordon Mar, who <a href="https://twitter.com/sfyimby/status/1202658381095268352">has been one of the loudest opponents of YIMBY legislation</a> in the past, says his views have evolved. He <a href="https://www.sfexaminer.com/news/housing-the-issue-roiling-san-franciscos-sunset-district/article_3c1bd46a-f3f5-11ec-9b03-fff825a383e3.html" target="_blank" rel="noreferrer noopener">pushed back against opposition to a 100% affordable</a> building proposal in his district, and <a href="https://yimbyaction.org/blog/2018/08/14/gordon-mar/" target="_blank" rel="noreferrer noopener">sought the local YIMBY endorsement</a> for his campaign.

<p>In the upcoming November election, candidates for city supervisor are beginning to follow suit. Sunset District representative Gordon Mar, who <a href="https://twitter.com/sfyimby/status/1202658381095268352">has been one of the loudest opponents of YIMBY legislation</a> in the past, says his views have evolved. He <a href="https://www.sfexaminer.com/news/housing-the-issue-roiling-san-franciscos-sunset-district/article_3c1bd46a-f3f5-11ec-9b03-fff825a383e3.html" target="_blank" rel="noreferrer noopener">pushed back against opposition to a 100% affordable</a> building proposal in his district, and <a href="https://yimbyaction.org/blog/2018/08/14/gordon-mar/" target="_blank" rel="noreferrer noopener">sought the local YIMBY endorsement</a> for his campaign. </p>

&#8220;I agree with the goal that they have, but I feel that their analysis is overly simplistic,  especially the belief that continuing to overproduce luxury condos in San Francisco will somehow result in the housing that’s needed for families, essential workers and seniors,&#8221; he said.

<p>"I agree with the goal that they have, but I feel that their analysis is overly simplistic,  especially the belief that continuing to overproduce luxury condos in San Francisco will somehow result in the housing that’s needed for families, essential workers and seniors," he said.</p>

<p>&#8220;I agree with the goal that they have, but I feel that their analysis is overly simplistic,  especially the belief that continuing to overproduce luxury condos in San Francisco will somehow result in the housing that’s needed for families, essential workers and seniors,&#8221; he said.</p>

Meanwhile in SoMa, where most of the city’s new housing is built, the <a href="https://sfstandard.com/politics/district-6-candidates-out-yimby-themselves-at-pro-housing-debate/">top two candidates are competing to out-YIMBY each other</a>.

<p>Meanwhile in SoMa, where most of the city’s new housing is built, the <a href="https://sfstandard.com/politics/district-6-candidates-out-yimby-themselves-at-pro-housing-debate/">top two candidates are competing to out-YIMBY each other</a>.</p>

For the YIMBYs, San Francisco’s housing gridlock had a silver lining attached, though: It gave their movement something to organize around.

<p>For the YIMBYs, San Francisco’s housing gridlock had a silver lining attached, though: It gave their movement something to organize around.</p>

“It makes people mad,” Trauss said. “It’s radicalizing, especially when San Francisco NIMBYs are unashamed and bold and making bad arguments.”

<p>“It makes people mad,” Trauss said. “It’s radicalizing, especially when San Francisco NIMBYs are unashamed and bold and making bad arguments.”</p>

YIMBYs ate the world—except for SF. Now its founders are up to new tricks

Kevin Truong

Sarah Wright

Based on social media rumblings, it seems like there’s a big appetite for converting now-empty San Francisco office buildings into housing. Using the Covid-induced vacancies to help solve the city’s housing affordability crisis and meet state mandates to plan for more than 80,000 new units appears to be a no-brainer.

<p>Based on social media rumblings, it seems like there’s a big appetite for converting now-empty San Francisco office buildings into housing. Using the Covid-induced vacancies to help solve the city’s housing affordability crisis and meet state mandates to plan for more than 80,000 new units appears to be a no-brainer.</p>

But while San Francisco’s downtown core appears rife with opportunity, with <a href="https://content.sfstandard.com/wp-content/uploads/2022/05/San-Francisco-Office-Figures-Q1-2022-FINAL_O4v7.pdf">a record 24%</a> of office space currently vacant—particularly within San Francisco’s bread-and-butter industry, tech—the city’s planning department currently has no pending applications for downtown office-to-housing conversions.

<p>But while San Francisco’s downtown core appears rife with opportunity, with <a href="https://content.sfstandard.com/wp-content/uploads/2022/05/San-Francisco-Office-Figures-Q1-2022-FINAL_O4v7.pdf">a record 24%</a> of office space currently vacant—particularly within San Francisco’s bread-and-butter industry, tech—the city’s planning department currently has no pending applications for downtown office-to-housing conversions.</p>

Turning offices into homes may seem like an obvious solution to the city’s housing crisis—<a href="https://sfstandard.com/business/elon-musk-twitter-san-francisco-hq-takeover/">Elon Musk even jumped into the fray</a> with a (presumably tongue-in-cheek) pitch to turn Twitter’s headquarters into a homeless shelter—but longtime housing developer Oz Erickson cautions that it’s not so simple.&nbsp;

<p>Turning offices into homes may seem like an obvious solution to the city’s housing crisis—<a href="https://sfstandard.com/business/elon-musk-twitter-san-francisco-hq-takeover/">Elon Musk even jumped into the fray</a> with a (presumably tongue-in-cheek) pitch to turn Twitter’s headquarters into a homeless shelter—but longtime housing developer Oz Erickson cautions that it’s not so simple.&nbsp;</p>

<strong>Behind the Scenes of a Successful Conversion&nbsp;</strong>


<h2 class="wp-block-heading" id="h-behind-the-scenes-of-a-successful-conversion"><strong>Behind the Scenes of a Successful Conversion&nbsp;</strong></h2>


<h2 id="h-behind-the-scenes-of-a-successful-conversion"><strong>Behind the Scenes of a Successful Conversion&nbsp;</strong></h2>

Erickson is chair of the San Francisco-based development firm Emerald Fund. His company’s 400-foot, 418-unit tower at 100 Van Ness is the most significant project in the last decade to successfully convert downtown office space into housing.&nbsp;

<p>Erickson is chair of the San Francisco-based development firm Emerald Fund. His company’s 400-foot, 418-unit tower at 100 Van Ness is the most significant project in the last decade to successfully convert downtown office space into housing.&nbsp;</p>

“It takes a really special building and you have to be willing to give up the current rent of the office space,” said Erickson. “We had an excellent skeleton and it was still quite costly, but way cheaper then than it would be now. It’s hard for me to believe anything pencils nowadays.”

<p>“It takes a really special building and you have to be willing to give up the current rent of the office space,” said Erickson. “We had an excellent skeleton and it was still quite costly, but way cheaper then than it would be now. It’s hard for me to believe anything pencils nowadays.”</p>

Erickson has built thousands of units across the city over his career, but the conversion posed its fair share of unique challenges. For one, the development team had to remove the massive stone facades that encased the former headquarters of the California State Automobile Association.&nbsp;

<p>Erickson has built thousands of units across the city over his career, but the conversion posed its fair share of unique challenges. For one, the development team had to remove the massive stone facades that encased the former headquarters of the California State Automobile Association.&nbsp;</p>

On the plus side for Erickson, the building’s relatively high standard of construction made it an attractive candidate for conversion. And, by reusing an existing structure, the Emerald Fund was able to skirt height limits for residential buildings and fit more units into the project, which raised their profit margin.

<p>On the plus side for Erickson, the building’s relatively high standard of construction made it an attractive candidate for conversion. And, by reusing an existing structure, the Emerald Fund was able to skirt height limits for residential buildings and fit more units into the project, which raised their profit margin.</p>

<strong>Where’s the City in All This?</strong>


<h2 class="wp-block-heading"><strong>Where’s the City in All This?</strong></h2>


<h2><strong>Where’s the City in All This?</strong></h2>

When it comes to conversion projects, it’s not the city’s planning process that’s getting in the way. Dan Sider, chief of staff at the San Francisco Planning Department, said a conversion with no complicated exemptions—an optimistic but not unrealistic scenario—wouldn’t even require a planning hearing and could take as little as three to six months to secure approvals. And even those requiring exemptions don’t face many added hurdles.

<p>When it comes to conversion projects, it’s not the city’s planning process that’s getting in the way. Dan Sider, chief of staff at the San Francisco Planning Department, said a conversion with no complicated exemptions—an optimistic but not unrealistic scenario—wouldn’t even require a planning hearing and could take as little as three to six months to secure approvals. And even those requiring exemptions don’t face many added hurdles.</p>

“The process through our office is fairly straightforward,” Sider said. “The controls are actually set up very well to accommodate housing in the downtown core.”

<p>“The process through our office is fairly straightforward,” Sider said. “The controls are actually set up very well to accommodate housing in the downtown core.”</p>

Jason Ward, a RAND Corporation economist who has studied the feasibility of commercial-to-residential conversions also pointed to an added advantage, particularly in a market like San Francisco: less community opposition.&nbsp;

<p>Jason Ward, a RAND Corporation economist who has studied the feasibility of commercial-to-residential conversions also pointed to an added advantage, particularly in a market like San Francisco: less community opposition.&nbsp;</p>

“It’s a lesser issue than we’re going to knock down these single-family homes and build a 60-unit building,” Ward said. “It’s already there, it usually has parking and it looks more or less the same as it did before.”

<p>“It’s a lesser issue than we’re going to knock down these single-family homes and build a 60-unit building,” Ward said. “It’s already there, it usually has parking and it looks more or less the same as it did before.”</p>

Case in point, developers of The Pacific in Pacific Heights were able to build a 76-unit condo building in a neighborhood with a history of anti-development activism by adapting a former medical office building.&nbsp;

<p>Case in point, developers of The Pacific in Pacific Heights were able to build a 76-unit condo building in a neighborhood with a history of anti-development activism by adapting a former medical office building.&nbsp;</p>

<strong>Why Aren’t Conversions Happening?</strong>


<h2 class="wp-block-heading"><strong>Why Aren’t Conversions Happening?</strong></h2>


<h2><strong>Why Aren’t Conversions Happening?</strong></h2>

Here’s the big “why not” when it comes to office-to-housing conversions: Gutting a building and rebuilding the inside as housing is expensive, especially in San Francisco and especially while construction costs are high.&nbsp;

<p>Here’s the big “why not” when it comes to office-to-housing conversions: Gutting a building and rebuilding the inside as housing is expensive, especially in San Francisco and especially while construction costs are high.&nbsp;</p>

Asking rents for downtown commercial leases have dropped around 15% from pre-pandemic peaks, but haven’t dipped further because of the relatively long lease terms signed by commercial tenants, as well as market optimism that the return to office will continue at a gradual pace.&nbsp;

<p>Asking rents for downtown commercial leases have dropped around 15% from pre-pandemic peaks, but haven’t dipped further because of the relatively long lease terms signed by commercial tenants, as well as market optimism that the return to office will continue at a gradual pace.&nbsp;</p>

Essentially, the city and the market aren&#8217;t convinced that empty offices downtown are here to stay.

<p>Essentially, the city and the market aren't convinced that empty offices downtown are here to stay.</p>

<p>Essentially, the city and the market aren&#8217;t convinced that empty offices downtown are here to stay.</p>

“People would need to believe that office uses are going away,” said Louis Cornejo, president and CEO of Urban Group Real Estate. “You talk to 10 people you get 10 different comments. Are we really going to take a chance on our economy based on: ‘Well, it worked for a year or two?’”&nbsp;

<p>“People would need to believe that office uses are going away,” said Louis Cornejo, president and CEO of Urban Group Real Estate. “You talk to 10 people you get 10 different comments. Are we really going to take a chance on our economy based on: ‘Well, it worked for a year or two?’”&nbsp;</p>

What gets built and what doesn’t comes down to a calculation of dollars and cents. The first issue that’s nearly always raised in discussions about office conversions is seismic retrofitting, which can quickly multiply construction costs.&nbsp;

<p>What gets built and what doesn’t comes down to a calculation of dollars and cents. The first issue that’s nearly always raised in discussions about office conversions is seismic retrofitting, which can quickly multiply construction costs.&nbsp;</p>

Older buildings would have to be gutted entirely. As compared to office space, housing requires more kitchens and bathrooms—and the plumbing and power that comes with them. And then there’s city code that requires that every apartment look out onto an open area and include access to open space like a deck or a rooftop. In the case of 100 Van Ness, the designers added a common rooftop for residents to use. These modifications, Sider said, can be difficult to achieve.

<p>Older buildings would have to be gutted entirely. As compared to office space, housing requires more kitchens and bathrooms—and the plumbing and power that comes with them. And then there’s city code that requires that every apartment look out onto an open area and include access to open space like a deck or a rooftop. In the case of 100 Van Ness, the designers added a common rooftop for residents to use. These modifications, Sider said, can be difficult to achieve.</p>

“Most modern office buildings would require a tremendous amount of work,” Sider said.

<p>“Most modern office buildings would require a tremendous amount of work,” Sider said.</p>

In some cases, adaptive reuse projects turn into money pits as developers open up the building and find structural issues, environmental damage and other challenges in bringing older buildings up to code. The <a href="http://www.ladowntownnews.com/news/as-rents-soar-brockman-aims-for-luxury-market/article_9fc8af34-8b40-11e1-ad29-0019bb2963f4.html">Brockman Lofts conversion</a> in downtown Los Angeles, for example, saw its budget balloon from $16 million to $40 million and took seven years to complete.&nbsp;

<p>In some cases, adaptive reuse projects turn into money pits as developers open up the building and find structural issues, environmental damage and other challenges in bringing older buildings up to code. The <a href="http://www.ladowntownnews.com/news/as-rents-soar-brockman-aims-for-luxury-market/article_9fc8af34-8b40-11e1-ad29-0019bb2963f4.html">Brockman Lofts conversion</a> in downtown Los Angeles, for example, saw its budget balloon from $16 million to $40 million and took seven years to complete.&nbsp;</p>

Trey Clark, the head of U.S. investments for Chinese developer Vanke, said the conversion process to residences also leads to less usable square footage because of the addition of corridors and other living spaces.&nbsp;

<p>Trey Clark, the head of U.S. investments for Chinese developer Vanke, said the conversion process to residences also leads to less usable square footage because of the addition of corridors and other living spaces.&nbsp;</p>

<strong>The Other Case for Conversion</strong>


<h2 class="wp-block-heading"><strong>The Other Case for Conversion</strong></h2>


<h2><strong>The Other Case for Conversion</strong></h2>

But the considerations of how and whether to rebuild downtown should not be strictly financial, and there are clear benefits to such projects beyond housing, said RAND’s Ward. There is also an environmental and social case for adaptive reuse projects that should be weighed by policymakers thinking through how—or if–they should incentivize these projects, he said.&nbsp;

<p>But the considerations of how and whether to rebuild downtown should not be strictly financial, and there are clear benefits to such projects beyond housing, said RAND’s Ward. There is also an environmental and social case for adaptive reuse projects that should be weighed by policymakers thinking through how—or if–they should incentivize these projects, he said.&nbsp;</p>

These include the environmental benefits of constructing more housing closer to job centers and the desire to activate the city’s downtown core into a more vibrant neighborhood with a greater mix of uses.&nbsp;

<p>These include the environmental benefits of constructing more housing closer to job centers and the desire to activate the city’s downtown core into a more vibrant neighborhood with a greater mix of uses.&nbsp;</p>

In order to tip the scales toward conversions, experts say developers would need to buy into a new vision of the future of downtown in the post-Covid world. It doesn’t appear the city is pivoting in that direction. Over the past few months, Mayor London Breed has made <a href="https://sfstandard.com/business/return-to-office-sf-london-breed-google/">bringing workers back downtown</a> a key part of her economic recovery strategy.&nbsp;

<p>In order to tip the scales toward conversions, experts say developers would need to buy into a new vision of the future of downtown in the post-Covid world. It doesn’t appear the city is pivoting in that direction. Over the past few months, Mayor London Breed has made <a href="https://sfstandard.com/business/return-to-office-sf-london-breed-google/">bringing workers back downtown</a> a key part of her economic recovery strategy.&nbsp;</p>

“In a way the effect of Covid on real estate prices has yet to fully play out. It’s going to be a while until we see what happens when people start trying to sell these buildings off or if they can’t bring in long-term leases,” Ward said. “In the long term these things will make a more favorable environment for (conversions) but it hasn’t happened as quickly as I might have expected initially.”

<p>“In a way the effect of Covid on real estate prices has yet to fully play out. It’s going to be a while until we see what happens when people start trying to sell these buildings off or if they can’t bring in long-term leases,” Ward said. “In the long term these things will make a more favorable environment for (conversions) but it hasn’t happened as quickly as I might have expected initially.”</p>

<strong>Some Spaces are Better Than Others</strong>


<h2 class="wp-block-heading"><strong>Some Spaces are Better Than Others</strong></h2>


<h2><strong>Some Spaces are Better Than Others</strong></h2>

So what structures would be the best candidates for conversion? Class A office spaces like Salesforce Tower and the Transamerica Pyramid are generally considered to be out of the question because of market demand and the high existing revenue they bring in.&nbsp;

<p>So what structures would be the best candidates for conversion? Class A office spaces like Salesforce Tower and the Transamerica Pyramid are generally considered to be out of the question because of market demand and the high existing revenue they bring in.&nbsp;</p>

That leaves lower-rise, older and less valuable offices with ideal characteristics like modern seismic safety engineering, repetitive floorplates and a narrow and rectangular form that makes it easier to meet light and air requirements for housing.&nbsp;&nbsp;

<p>That leaves lower-rise, older and less valuable offices with ideal characteristics like modern seismic safety engineering, repetitive floorplates and a narrow and rectangular form that makes it easier to meet light and air requirements for housing.&nbsp;&nbsp;</p>

YIMBYs ate the world—except for SF. Now its founders are up to new tricks

Turning downtown offices into housing isn’t the solution you think it is

Bodies in streets, parks, buses: The everyday horror of stumbling on an overdose victim

Dump Dean or embrace him? Sizing up the most polarizing man in city politics

How San Francisco makes it insanely hard to build housing

Search Results for: downtown condos

YIMBYs ate the world—except for SF. Now its founders are up to new tricks

Turning downtown offices into housing isn’t the solution you think it is

Bodies in streets, parks, buses: The everyday horror of stumbling on an overdose victim

Dump Dean or embrace him? Sizing up the most polarizing man in city politics

How San Francisco makes it insanely hard to build housing