Prior to the lawsuit, plaintiffs Peyman Pakdel and Sima Chegini were subject to a lifetime lease requirement imposed on their condominium as a condition of the Expedited Conversion Program. This lifetime lease requirement allegedly diminished the property value and plaintiffs claimed it resulted in an unconstitutional taking of their property.

Settlement of the lawsuit by paying Peyman Pakdel and Sima Chegini $450,000 and allowing the sale of the property to the current tenant in exchange for termination of the lifetime lease under the Expedited Conversion Program.

The impact of the proposed settlement will financially compensate the plaintiffs for their claimed loss in property value and end the legal dispute with the City and County of San Francisco. It also involves the removal of the lifetime lease requirement for the plaintiffs' condominium.

The rationale behind the proposed ordinance is to resolve the legal dispute where the plaintiffs claimed that the lifetime lease requirement constituted an unconstitutional taking of property, thereby avoiding further legal costs and proceedings.

Authorization by the Board of Supervisors of San Francisco, pursuant to Charter Section 6.102(5), to settle the lawsuit and approve the payment of the settlement sum.

The City Attorney is authorized to settle the action, with the settlement and payment being subject to oversight and recommendations by City officials, including the City Attorney, Interim Director of Public Works, and the Controller.