The housing crisis is one of the most critical issues facing the Bay Area, with increasing rent prices displacing more and more people, especially those that are low-income.
Amid these housing concerns, some landlords in San Francisco have been using AI software, such as RealPage and Yardi, to increase rents. These software use rental data to give landlords suggestions of how high to set a unit's rent–or whether to keep it vacant.
On Tuesday, the San Francisco Board of Supervisors approved the first reading of a proposed ban on artificial intelligence software that advises landlords on rent pricing or occupancy levels of units in the city-- a practice which some say promotes unfair rent gouging.
If the legislation becomes law, San Francisco would become the first city in the nation to ban such software.
Under the proposed ban, entities selling such software or using it to set residential rent prices in San Francisco could face a civil action and charges of up to $1,000 per violation.
Often used by large landlords, the software has increased rates of rent, vacancy and eviction, according to the Board of Supervisor's agenda packet.
The packet also stated companies making the software, such as RealPage and Yardi, have faced lawsuits across the country alleging their products have enabled illegal rent-fixing.
About half of the city's 11 supervisors sponsored the legislation. Outlawing the software is still pending supervisors' final approval and their return from August recess.
