The SF Board of Supervisors voted unanimously Tuesday to reject an appeal to retroactively legalize a $5 million North Beach single-family home that was illegally converted from four rent-controlled units by a previous owner.

The final decision was made Tuesday to reject an appeal by a couple who bought their 3,700-square-foot “dream home” on Vallejo Street in North Beach, which had been illegally converted from four rent-controlled units, as 48 Hills reports.

As SFist previously reported, the case reached a deadlock before the SF Planning Commission last year at 3-3 before being passed along to the Board of Supervisors. Prior to the appeal, the planning commission had demanded the property be converted back into four separate units, as 48 Hills reported earlier this week.

While the previous owner, who’s suspected of illegally converting several nearby properties, was to blame for the conversion, the owners reportedly knew about it. Per SFist, the building is listed as "multi-family" on the property listing, and the current owners were said to have taken a "calculated risk" when they purchased the home.

According to 48 Hills, tenant advocates and most of the supervisors agreed Tuesday that legitimizing the conversion would send the wrong message and create a loophole for future illegal remodels. Supervisor Myrna Melgar emphasized that whether or not a property owner was aware a conversion was illegal when they purchased it, they still bear the responsibility.

“This was an illegal demolition of rent-controlled units,” said Stephen Torres, who works with the Tenants Union. “This is a dangerous precedent.”

Fred Sherburn Zimmer, director of the Housing Rights Committee, pointed out that allowing such conversions would make the thousands of tenants currently living in unpermitted units vulnerable to eviction, reminding the supervisors that the conversion goes against the Family Zoning Plan’s promise to avoid the demolitions of existing rent-controlled housing, per 48 Hills.  

“If we reward landlords and investors and say they can make mergers, you are encouraging [evictions under] the Ellis Act. We will see people we love getting pushed out,” he said.

Tuesday’s meeting began with Supervisor Danny Sauter proposing a compromise that would require the owners to convert the home into three units instead of the original four, which meant they could keep the existing building while adding two small studios to the site, which was ultimately shot down. Sauter and other moderate-leaning supervisors voted in favor, including Stephen Sherrill, Matt Dorsey, Bilal Mahmood, and the newly appointed Alan Wong, per 48 Hills.

In terms of penalizing the previous owner who did the original conversion, the issue would reportedly be a private, civil matter.

Previously: $5M Dream Home In North Beach Was Illegally Converted From Four Units; Board of Supes to Decide Its Fate

Image via MLS