In the spring of 2017, the San Francisco Board of Supervisors approved a major overhaul of the City’s inclusionary housing fee provisions.  At that time, we reported on a related bill introduced at the state level by Assemblymember Phil Ting.  The state legislation would have required San Francisco to impose its inclusionary housing requirements on units authorized under the State Density Bonus law (“State Density Bonus Units”), unless the Board exempted these units by ordinance. 

The Ting-sponsored bill, AB 915, died in Committee, but now the San Francisco Board of Supervisors is set to consider its own ordinance imposing the inclusionary fee on State Density Bonus Units.  The legislation, introduced by Supervisors Peskin and Kim, would amend the Planning Code to require all projects, regardless of environmental evaluation application date, to pay the inclusionary fee on any State Density Bonus Units.  The legislation was introduced on November 27, 2018 and was assigned under the 30-day rule to the Land Use and Transportation Committee on December 5, 2018.  Absent state authorizing legislation, it remains to be seen whether the fee will be challenged as inconsistent with State Density Bonus law.