You may have been following the case of the Telegraph Hill couple who purchased a single-family home that a previous owner had illegally converted from four units. After someone reported the building’s status, the city conducted a site visit and informed the new owners they would need to restore the property to four separate units. The owners appealed, and the case ultimately went before the Board of Supervisors for a final decision.
That decision came last week on April 7th, when the Board unanimously vetoed the owners’ appeal, as reported by SFist.
Everyone seems to have an opinion about this case, with some sympathizing with the owners and others believing that they took a risk that didn’t pay off.
To me, the outcome highlights the risks contractors, developers and homeowners take when they alter a multi-unit building to function as a single-family home. In my 23 years of selling real estate in the city, I’ve seen many such illegal conversions. The appeal is clear: Single-family homes typically command higher prices and attract a broader pool of buyers than three- or four-unit properties. But the flip side is that the city is highly protective of its housing stock and reluctant to lose units.
Anyone considering converting multiple units into a single home–or purchasing a property with a questionable permit history–should take note of this decision. It’s becoming increasingly difficult to fly under the radar, and the cost of correcting an illegal conversion can be significant in time and money.