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Realtors Lie About Don Perata to Defeat Ellis Act Reform
As the State Senate plans to vote next week on SB 464 to prevent real estate speculators from abusing the Ellis Act, the San Francisco Association of Realtors recently sent a mass e-mail to its members stressing the need to “aggressively oppose any change” to the Ellis Act whatsoever.
The Realtors also claimed in the same e-mail that State Senate President Don Perata had “convened a meeting” with other legislators about SB 464 and was leading a “tag team” with Senator Sheila Kuehl (the bill’s sponsor) to get it passed. But Perata has not taken a position on SB 464, and Beyond Chron has learned from Perata’s staff (later confirmed by Perata himself) that there was no such meeting.
In an effort to whip up a hysterical frenzy to defeat SB 464, why would the San Francisco Association of Realtors blatantly lie to their own members about a basic fact?
The Ellis Act is a state law that allows property owners to evict an entire building of tenants when they want to “go out of business.” SB 464 is a modest but necessary reform that would limit the Ellis Act to landlords who have owned the building for more than five years. In San Francisco and Los Angeles, real estate speculators who never intended to become landlords have bought rental properties, used the Ellis Act to evict tenants within days, and then re-sold them at a massive profit. Average landlords who want to “go out of business” after years of renting out property would be unaffected by SB 464.
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