San Francisco is currently facing significant challenges surrounding the balance between corporate interests and the pressing need for affordable housing. A critical situation has emerged regarding the Mosser Hotel, situated at 54 4th Street in the South of Market district. The property owners have requested authorization to convert 72 of its 81 residential hotel rooms into tourist accommodations, which would be in addition to the existing 78 tourist rooms already operating within the facility.

Impact on Affordable Housing

Community advocates fear that the proposed conversion will exacerbate the city’s affordable housing crisis, potentially displacing hotel workers and setting a precedent for other property owners to prioritize profit over housing stability.

In response to these concerns, the owners assert that they will compensate for the loss of residential units by providing replacements at 509 Minna Street. However, this location has been utilized for supportive housing since 2021, facilitating the transition of individuals from homelessness through a program endorsed by the city, including the Department of Public Health and Westside Community Services.

Misconceptions in the Planning Motion

There are inaccuracies in the Planning Department’s draft motion. It wrongly suggests that the 509 Minna Street site still operates with 72 tourist rooms; however, these have been converted into transitional housing since the onset of the pandemic. Consequently, this misrepresentation does not fulfill the city’s regulatory requirements for one-for-one replacement of lost residential units. Furthermore, the supportive housing at Minna caters to a specific demographic and does not mirror the general housing needs of the broader population.

Historical Context and Current Evans

This isn’t the first attempt by the Mosser to deviate from its responsibilities as a residential hotel. A similar conversion proposal was presented in 2017, with the hotel asserting a lack of demand for low-income housing despite ongoing displacement and homelessness in the city. Over the years, this property could have housed between 53 and 76 low-income individuals.

The rising vacancy rates among residential units raise serious questions about the city’s decision-making concerning these conversions. Approving such a permit would signal to other landlords that they may benefit financially from not renting out residential accommodations.

Job Implications for Hotel Workers

Alongside the conversion of units, the Mosser is seeking a Conditional Use Authorization permit to expand its tourist operations. This process involves a thorough assessment of potential impacts on housing, transportation, and community services. Currently, the hotel workers at the Mosser are not unionized, and the growth of tourist-focused services may create new jobs that do not provide livable wages, compelling employees to commute long distances from areas such as Modesto and Sacramento.

Economic Considerations

From an economic perspective, the rationale for the Mosser’s expansion appears weak. The market study suggesting a return to pre-pandemic visitor spending levels by 2024 has not materialized. The hotel’s current tourist occupancy rate is at 59%, consistent with citywide averages. Hence, transitioning more units for tourist use may simply redistribute business among existing hotels, potentially leading to reduced job opportunities within San Francisco’s hospitality sector.

Next Steps and Community Action

The Planning Commission is charged with evaluating the long-term implications of this project. In San Francisco, the conversion of residential units to tourist accommodations necessitates explicit city approval. The Commission has a responsibility to reject proposals that result in the loss of affordable housing, strain public services, and fail to offer meaningful economic benefits to the community.

To voice opposition against these conversions, community members are encouraged to join a discussion at City Hall (Room 400) on Thursday, the 20th at 1 PM.