finally posted in full, because it’s not that easy to find online, and because SRO (single room occupancy hotel) is such a focus these days
updated 2025, this is an example of how the original intent of this SRO demolition law has been abused to the point of fraud
The original intent was to preserve low income housing. Instead, it has displaced over 10,000 low income tenants and replaced them with imported drug addicts and criminals. Randy Shaw inserted non profit exemptions into the law in 1990 without voter approval which then enabled this large scale fraud and resulted in entire downtown neighborhoods gutted in a permanent doom loop
This is San Francisco Administrative Code, Section 41, originally passed in 1980. This was essentially written by Randy Shaw
for history’s sake, this ordinance was largely prompted by demolitions for the Moscone Center and more famously the International Hotel riots of 1977
Includes all of the updates throughout the years
373028492-Sf-Sro-Demolition-Ordinancethe exemption that Randy Shaw granted to himself and other non profits in 1990, long after this was voted into law. What is never mentioned is that in order to accomplish these challenges, Randy Shaw had to literally label tourists a nuisance in court
It’s ironic because it’s those tourist dollars that helps pay for his own non profit to sue
We sued on that tenant’s behalf and got the hotel returned to residential status. In 1985 I was able to get the city to give nonprofit groups like THC the power to file administrative challenges to illegal conversions, but not lawsuits (the legislation was narrowed as the full Board was about to vote). We eventually got a full nonprofit standing provision as part of our complete overhaul of the law in 1990 under Mayor Agnos.
(Added by Ord. 121-90, App. 4/12/90)
BookmarkSEC. 41.5. APPLICABILITY OF THIS CHAPTER.The provisions of this Chapter shall not apply to:
(a) The change in use of a residential unit where the unit has been found to be unfit for human habitation prior to November 23, 1979 and ordered to be vacated by the Department of Public Health; or
(b) A hotel wherein 95 percent of the guest rooms were tourist units on September 23, 1979; or
(c) A unit which rented for over $1,000 per month on September 23, 1979; or
(d) A hotel in which 95 percent of the total number of guest rooms rented for more than $1,000 per month on September 23, 1979; or
(e) A building which was unlawfully converted to a rooming house or hotel in violation of the provisions of the City Planning Code; or
(f) A building which meets the requirements of Section 41.7(c) below for a claim of exemption for partially-completed conversions; or
(g) A building which meets the requirements of Section 41.7(b) below for a claim of exemption for low-income housing; or
(h) A building which is lawfully approved by the City after September 23, 1979, and is not a replacement unit pursuant to Section 41.13 herein, so long as it is operated by a public entity or a nonprofit organization as a jail, health facilities as defined by Section 1250 of the Health and Safety Code, asylum, sanitarium, orphanage, prison, convent, rectory, residential care facility for the elderly as defined in Section 1569.2 of the Health and Safety Code, residential facilities as defined in Section 1502 of Health and Safety Code, or other institution in which human beings are housed or detained under legal restraint.
and
(Added by Ord. 121-90, App. 4/12/90; amended by Ord. 134-01, File No. 001926, App. 7/6/2001)
BookmarkSEC. 41.8. REQUIREMENTS FOR NONPROFIT ORGANIZATIONS.(a) Initial Unit Usage Report. Within 90 days of the adoption of this amended Chapter, the Department of Building Inspection shall notify all nonprofit organizations operating hotels that the nonprofit organization must comply with the Initial Status Determination provisions of Section 41.6 herein.
(b) Annual Unit Usage Report. All nonprofit organizations operating hotels with residential units shall comply with the provisions of Section 41.10 herein in the event that the status of the units in the hotel changes from the designation contained in the Initial Unit Usage Report.
(c) One-for-One Replacement. If a nonprofit organization seeks to demolish residential units or remove residential units from housing use, or sells or otherwise transfers the building containing residential use, it shall comply with the provisions of Section 41.13 of this Chapter.
(d) Applicability of this Chapter. This chapter shall not apply to a hotel which has a certificate of use for all residential units but contained no permanent residents on September 23, 1979, provided that the hotel is owned, leased or operated by a nonprofit organization at the time this exemption is sought. The owner, operator or lessee of such a hotel must file with the Director of the Department of Building Inspection evidence to support such exemption. If the exemption is approved, the Director shall issue a certificate of use designating all the hotel’s units as tourist units; provided, however, that the certificate shall not be issued until the hotel owner, operator or lessee has paid any penalties imposed under Section 41.6(e) or Section 41.10(f) or (g), or released any liens imposed under Section 41.20(d).