On behalf of The Silicon Valley Organization (The SVO),  we are writing to urge the Council to adopt a 1-for-1 replacement policy of rent-controlled units for new residential projects under the Ellis Act. By way of background, The SVO is the Silicon Valley’s premier business advocacy organization representing nearly 1,200 companies that employ over 300,000 workers, and we represent our membership as the region’s largest Chamber of Commerce.

Any revisions to the Ellis Act re-control rules should preserve the existing supply of rent-controlled housing units, while avoiding unnecessary policies that would make residential projects infeasible for redevelopment opportunities. The city’s existing 50% re-control rules on new construction projects makes it extremely difficult for housing developers to obtain adequate financing to increase the city’s housing stock. The key to solving the housing crisis is to significantly accelerate housing production at all income levels – we must do everything we can to remove impediments to housing and the Council must not impose a 50% re-control rule that would be counterproductive to the city’s housing production goals.

According to a recent staff report on the Housing Crisis Work Plan, an average of 2,800 residential units were built between 2010 and 2017. There simply is not enough housing production to tackle the housing affordability crisis head-on. Furthermore, we are aware that the Housing Department is floating a proposal to exempt the 50% re-control provisions, but only for new residential projects that generate at least 7 times the number of original units on the existing site. Many small sites will be unable to meet this density requirement and this policy proposal essentially supports the status quo by denying redevelopment opportunities. By amending the Ellis Act re-control provisions to strictly a 1-for-1 replacement rule, we can remove obstacles to construction and start encouraging residential development that will address housing affordability in the region.

In closing, we strongly urge the Council to exempt new residential construction from the Ellis Act 50% re-control provisions.


More Posts

You Might Also Like

Blach Construction Celebrates Grand Opening of Tanforan Memorial Statue and Plaza
Blach Construction recently joined the Tanforan Assembly Center Memorial Committee (TACMC) to celebrate the unveiling of a historic memorial plaza and bronze statue to honor the 8,000 Bay Area residents of Japanese ancestry who were unjustly imprisoned at Tanforan “Assembly Center” during World War II.
Sep 7, 2022
Blach Construction
In Loving Memory and Honor of Norman Y. Mineta
In Loving Memory and Honor of Norman Y. Mineta – November 12, 1931 - May 3, 2022
May 3, 2022
Exporting: A Game Changing Strategy to Boost Your Business
Did you know that 95 percent of the world’s consumers live outside the United States? It’s time to grow your business by reaching the global market.
Mar 3, 2022
Export-Import Bank of the U.S.
COVID 19 Resource Center
Watch Our COVID-19 Business Resource Webinars
We are hosting various online webinars providing our SVO members access to business resources, as well as discuss upcoming policy changes that affect business operations. We have invited political and industry experts to lead our webinars to make you our members are up to speed with all of the legislative updates that relate to COVID-19. In case you miss one, you can watch our webinar recordings here!
Jun 23, 2021
The Silicon Valley Organization
Members News
Wanna Get Away Day
Southwest Airlines declares June 18 as Wanna Get Away Day to honor 50th anniversary of first flight
Jun 8, 2021
Southwest Airlines
Members News
Blach Construction Named “Best Place to Work in Bay Area;” Earns “Workplace Wellness” Award
Blach Construction (Blach), an award-winning full-service commercial contractor serving the Greater Bay Area and Monterey since 1970, is honored to be recognized by the Silicon Valley Business Journal and San Francisco Business Times (SVBJ/SFBT) as one of the "Best Places to Work in the Bay Area”.
May 26, 2021
Blach Construction
Explore ALl Posts