A Dose of Truth: San Francisco TIC Owners Aren’t Facing Foreclosure CrisisDean Prestonbyline‚ Feb. 12‚ 2013
Supervisor Scott Weiner claims that the condo bypass legislation he and Supervisor Farrell are pushing is needed because many TIC owners are “at serious risk of foreclosure.” But city foreclosure data belies this claim. Here’s why. The proposal targets 3-6 unit properties (two-unit, owner-occupied properties can already bypass the lottery). Yet in 2012, notices of default (the first step in the foreclosure process) were filed against only ten owner-occupied, 3-6 unit properties in the entire city. Of this small number, it is unclear how many, if any, involved TICs. In other words, the number of TICs “at serious risk of foreclosure” in 2012 can be counted on your fingers. That’s hardly a reason to eliminate rent control on thousands of units and incentivize future evictions.
Most of the foreclosure activity on owner-occupied properties in San Francisco involved single family homes and condominiums. The properties Weiner and Farrell are proposing to benefit with this legislation are not facing a foreclosure crisis and to suggest otherwise is wrong.