The law establishes and heavily restricts a new type of rental called Intermediate Length Occupancy (ILO), defined as leases between 30 days and one year. These rentals, which were legal before, will now require City permits
San Francisco has banned leases ranging from one month to one year on all but 1,000 units, or 0.25% of the city’s housing stock
Residents who violate the law will be fined $100 per day, up to $1,000
It’s the fallout of a battle between the City and a rental startup called Sonder. In 2019, Sonder rented an entire 52-unit building at 2100 Market Street to turn into furnished corporate rentals. Back then, the rent was too damn high, and Sonder’s move, while technically legal, was seen as brazen and warranting punishment: “[Sonder] riled many who, despite recognizing intermittent stays as legal, felt victim of a misrepresentation of the project’s ultimate use,” a San Francisco Planning Department document states.