The name of the "loophole" is the Ellis Act. It was passed after the California Supreme Court declared that, under existing law, landlords had no right to evict renters if they wanted to exit the multitenant rental business. The Ellis Act has one purpose: to make legal the eviction of tenants if one wants to exit the multitenant rental business. That is not a side effect, bug, or unintended consequence of the law, it is the exact designed intent.

This eviction is an Ellis Act eviction. The reason for the eviction is that the landlord wishes to exit the multitenant rental business, in favor of a condo conversion, something which the Ellis Act was designed to allow. San Francisco tenants rights activists hate the Ellis Act, so they describe this as a "loophole."