taken out of the San Francisco market; in the three following years, however, more than 300buildings and a thousand units in San Francisco were emptied of their tenants. 55Tenants in other Bay Area cities generally have fewer protections than those in SanFrancisco, and pressures on some of the surrounding urban rental markets are building to SanFranciscan levels. Oakland tenants in month-to-month leases can be evicted with a month’s notice,and no “just cause.” Vacancy rates are extremely low and rents remain high throughout themetropolitan area.The homeownership market is extremely strong, only exacerbating the pressures onaffordable Bay Area communities. The median home price in the Bay Area stood at $348,000 in1999, a 10.4 percent increase from 1998. While housing demand is very high, supply is severelyconstrained. Close-in communities around the Bay, such as Berkeley and many in Marin County,have lowered housing density limits, strictly limited new housing development, and some haveactually lost housing units in the past quarter century. But, San Francisco could build as many as anadditional 80,000 units on currently vacant land consistent with current zoning laws, according toPlanning Department staff. 56 One factor that limits multifamily production for market rate as well asaffordable housing is strident neighborhood opposition, or NIMBYism (as in, “not in my backyard”).2. Gentrification Dynamics: Some Bay Area ExamplesThe <strong>gentrification</strong> story in the Bay Area has added layers of complexity: Some communitiesthat face <strong>gentrification</strong> embrace it, while others abhor it. Some residents within these communitieswork to unite the resulting blend of old-timers and newcomers, while others fight the upper-incomeinflux guerrilla-style. Finally, public and private sector leaders throughout the metropolitan area arecoming to realize that unless the area can better manage growth, enhance housing opportunities,reduce the cost of living and improve quality of life, the region’s unprecedented economic growthand prosperity could be threatened. In a recent San Francisco Chronicle op-ed, the president of theBay Area Economic Forum, a corporation-led policy group, argued:The lack of housing, in turn, drives the region’s looming transportation crisis, as moreresidents are forced to commute longer distances to homes they can afford. When thathappens, our quality of life suffers.Because they affect the Bay Area’s ability to attract and retain the best faculty, engineers,researchers and workers, these constraints pose a serious threat to the region’s continued economicsuccess. 57a. The Mission District55 Rowen, Angela, “Pure Greed,” San Francisco Bay Guardian, January 19, 2000, p. 18.56 Matt Smith, p. 18. Oakland has approximately 150 acres of available land.57 Randolph, R. Sean, “Bay Area Must Keep Pace with Global Economy,” San Francisco Chronicle, March 15,2000, p. A19.44
San Francisco’s Mission neighborhood, which extends more than a mile between andbeyond two subway stations along Mission Street, is fast gentrifying. The home of Latino residentsduring the past two decades, the Mission was earlier home to Italian and Irish immigrants in SanFrancisco. The Mission has many amenities attractive to newcomers: the neighborhood gets a lot ofsun (rare in San Francisco), the BART stations are only one stop from city hall and three stops fromthe financial district, and there is easy access to major freeways to get to Silicon Valley. TheMission’s Latino population is particularly vulnerable to <strong>gentrification</strong> pressures: 84 percent arerenters, incomes are low, language barriers are high, and American citizenship is not universal.Over the past ten years, non-Latinos have very gradually moved into the area, drawn by itsaccessibility, its unique ethnic character, its growing club and restaurant scene, and its affordability.According to a recent San Francisco magazine story, these pioneers were followed by a majordeveloper of live/work lofts who fills the huge demand for downtown housing by replacing olderapartments with denser housing. 58 These simple-to-build units are taxed at a lower rate thanconventional residential housing, so they act as a drain on the city’s revenue stream, and its ability toserve the needs of its residents.Based on city data, The Mission Economic Development Association (MEDA) estimates 925households were evicted between 1990 and 1999 (the highest rate among city neighborhoods), andowner-move-in evictions accelerated from 112 between 1990 and 1996, to 350 between 1997 andMay of 1999. 59 MEDA also tracks the impact of commercial <strong>gentrification</strong>. Per square foot rents inthe Mission increased 41 percent in the Mission between 1997 and 1999, compared to an average15 percent across the city. Sales of businesses climbed over 50 percent during that time, while theyremained stable in San Francisco as a whole. 60 Eighty percent of Mission area businesses rent theirspace, and many have “shoddy” lease arrangements, including verbal agreements, according toMEDA staff. They point to four reasons for business displacement: sharp rent increases, newmarket competition, the regulatory environment, 61 and merchants’ inability to adapt to new marketopportunities.The Mission District has experienced another symptom of gentrifying neighborhoods—thedeclining viability of community institutions. As lower income residents in the Mission leave for otherparts of the metropolitan area, the neighborhood’s non-profit community is losing its constituency.Departing residents, in turn, could lose the support they received from those providers. Non-profitsare facing significant pressures; in one case, 20 small businesses and non-profit organizationsoperating out of a 10-story building on Mission Street were evicted to make room for a “dot-com”company. Citywide, Community Development Block Grant grantees face similar pressures.58 Slater, Dashka, “Neighborhood Bully,” San Francisco, February, 2000, p. 33.59 Mission Economic Development Association (MEDA), Small Business Displacement Hearing, September 16,1999, p. 5.60 MEDA, p. 2.61 Existing businesses face hurdles as they expand or relocate that new businesses do not. For example, aliquor store displaced from its original location could not get community sign-off at its new location; existing butmoving restaurants need health and safety code sign-offs from police while non-eateries avoid that layer ofpaperwork.45
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- Page 4 and 5: POLICYLINKSUMMARY OF RECENT PUBLICA
- Page 6 and 7: ABSTRACTThis paper serves as a prim
- Page 8 and 9: PREFACEThe Brookings Institution Ce
- Page 11 and 12: DEALING WITH NEIGHBORHOOD CHANGE:A
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- Page 21 and 22: uilt only 31,000 new homes. 18 The
- Page 23 and 24: created a $5,000 first-time homebuy
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- Page 31 and 32: sale. 42 The street’s mix of busi
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- Page 46 and 47: likely unproductive, although San F
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- Page 56 and 57: According to a recent survey, twent
- Page 58 and 59: developed among long-standing Afric
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- Page 68 and 69: The opening of the new Metro statio
- Page 70 and 71: 3. ConclusionOptimism about the cit
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- Page 76 and 77: BIBLIOGRAPHYAtkinson, Rowland, “M
- Page 78 and 79: Mission Economic Development Associ
- Page 80: Walker, Mary Beth, A Population Pro