Relocation benefits OK’d for some residents in South City

“[SROs] are also an older typology from a different era, and given the changing market conditions, they are ripe for redevelopment, which means that they also could lead to displacement risk for low-income households who may not have the time or resources to find options especially in such a tight and expensive market,” Housing Policy Analyst Pierce Abrahamson said.

Such units typically rent for about $700 to $1,200 monthly in the city, which is less than half the going rate for market-rate units — about $1,800 for studios and $2,500 for one-bedrooms in the city — he added.

Many of those living in the Treasure Island park own their homes, which is one of the few ways low-income residents can own property in the Bay Area, said Paola Arellano Rosales, community engagement and language justice lead, of the Housing Leadership Council.

“In the case that the [mobile home park] closes, especially given Treasure Island is the only one in the city, it would have a very big effect on vulnerable residents,” she said.

With the new ordinance, property owners have to adhere to a strict schedule of resident notification throughout the city approval process. Residents must also receive six months’ worth of rent, as well as a security deposit, a relocation counselor and right of first refusal — meaning they would receive priority to move back into the new development. If a tenant was relocated to a one-bedroom unit, the relocation benefits would likely max out around $27,000 per resident, Abrahamson estimated.

Prior to the adoption of the new ordinance, the city only required relocation benefits for those whose residences are red-tagged, or are in substandard living conditions.

The ordinances were passed unanimously on Jan. 8.

“We have to make sure that the residents who will be potentially displaced will be protected, at least by the relocation benefits,” Councilmember Flor Nicolas said.