TENDERLOIN HOUSING CLINIC

126 Hyde Street 

San Francisco, CA 94102

(415) 771-9850

RANDALL M. SHAW 

CATHY MOSBRUCKER 

MARY JANE FORAN 

STEPHEN L. COLLIER 

ROGER STOLL

December 9, 1988

Bill Rumph 

Mayor’s Office of Housing 

100 Larkin Street 

San Francisco, CA 94102

Dear Bill:

I have set forth below a rough sketch of our proposal. Dan and other Board members may suggest some minor modifications when we meet next Thursday, but I wanted you to see the substance so that you can contact me regarding any concerns. If I do not hear from you a “final ” proposal will be submitted by December 16, 1988.

The North of Market Development Corporation (NOMDC) will dismiss its lawsuit against G & K Management, and request the City and County to award 108 Section 8 certificates to the Hamlin and Ritz Hotels. Further, following the resolution of its lawsuit with G & K Management the NOMDC will support the creation of a new regulatory agreement whose enforceability is the exclusive responsibility of the City and County of San Francisco.

The NOMDC’s agreement to the above is conditional on the following:

1. On or before January 1, 1997, title to the Dalt and William Penn Hotels shall be transferred — free and clear of debt and in a physical condition that satisfies applicable state and local housing, health and safety code standards– to the NOMDC or its assigns or successors.
2. G & K Management shall reimburse the North of Market Planning Coalition for all costs of suit incurred by the North of Market Planning Coalition in pursuing its lawsuit against G & K Management. In no event shall the amount required to be paid exceed $500.00.
3. A new regulatory agreement be created which contains but is not limited to the following terms:
4. All tenants in the four hotels (other than the Section 8 tenants) shall be protected by the rent increase limitations of the San Francisco Residential Rent Stabilization and Arbitration Ordinance (Chapter 37 of the San Francisco Administrative Code). Said tenants will also be protected by the “Just Cause” eviction protections contained in Section 37.9 of the Ordinance.
5. G & K Management shall have all units in all of the hotels available for rent to prospective tenants.
6. G & K Management shall not impose a security deposit requirement in excess of $100.00, and shall not require a total deposit amount — however denominated in excess of $100.00 per tenant. G & K shall not impose any deposit requirement for persons receiving General Assistance or SSI who are participants in a Modified Payment Program for the payment of rent.
7. Participants in a Modified Payment Program for the payment of rent shall be permitted to pay rent on the 1st and 15th of the month, rather than once a month. Lack of financial resources and/or income shall not be a factor in G & K Management’s denial of an application for tenancy from a G.A. or SSI recipient willing to participate in a Modified Payment Program for the payment of rent.
8. All units at the Ritz and Hamlin which will not be Section 8 units and which were vacant on December 1, 1988 or subsequently become vacant after that date shall have initial rents not in excess of $250.00 per month. At least 50% of the units at the Dalt and William Penn shall have initial rents not in excess of $250.00 per month. (Note: G & K Management is currently advertising its units for under $250.00. The $250.00 figure is thus reasonable by their own standar is)

I believe that this proposal gives G & K the desired freedom in running their hotels. The fact that our proposal contemplates no Specific regulation of their method of management is a concession we are granting to Ga K Management.

Feedback on this proposal is strongly desired. Our Board will have a brief meeting on Thursday, December 15, at the office of the Low Income Housing Fund, 605 Market Street, #709. Mark Aaronson will be attending to share his insights, and I believe it would be very helpful to the process if Jack Pizza and yourself attended this meeting.

Sincerely,

Randy Shaw

RS/wp