San Francisco wasted no time implementing AB 1505, which authorizes localities to adopt ordinances requiring developers to provide on-site inclusionary affordable housing units in rental projects, provided that there is an alternative means of compliance such as in-lieu fees or off-site inclusionary rental units.  As explained in our prior post on 2017’s 15-bill housing package, AB 1505 supersedes case law that deemed on-site inclusionary rental unit requirements an impermissible form of rent control under the state Costa-Hawkins Act.

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On September 29, 2017, Governor Brown signed into law a 15-bill housing package.  A few of the key components, including approval streamlining, are summarized below.  The housing package did not include AB 915, which would have authorized the City and County of San Francisco to impose local inclusionary requirements on bonus units created under the State Density Bonus Law. San Francisco adopted legislation in August that imposes inclusionary housing requirements on bonus units in the form of a fee, and the Legislature’s failure to pass AB 915 creates uncertainty about its enforceability.

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Summary Chart of Competing Inclusionary Housing Proposals

Barring any last-minute surprises, the Board of Supervisors will finally adopt compromise inclusionary housing legislation on July 18th that would, as shown in our summary comparison chart, make many major changes to the City’s existing program.  The key provisions of the legislation affecting large projects with 25 or more residential units can be found in our prior blog post on this topic.

Recent noteworthy changes, including an important change to existing grandfathering protections for certain pipeline projects, are summarized below.


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Comparing Inclusionary Housing Proposals_6.5.17The Land Use and Transportation Committee of the Board of Supervisors is now scheduled to consider compromise inclusionary housing legislation on June 12th, following a continuance at the Committee’s June 5th hearing. As shown in our summary comparison chart, the legislation would generally retain existing grandfathering protections as to the total percentage of affordable units for certain pipeline projects, but would make many other major changes to the City’s existing program.


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San Francisco and MapAs reported in our prior blog post, Assemblymember Phil Ting (D – San Francisco) introduced amendments to the State Density Bonus law (AB 915) that would specifically require all local jurisdictions to impose their local inclusionary housing requirements on density bonus units, unless the jurisdiction expressly exempts them by ordinance.

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california-state-flagWe reported in December that State Senator Scott Wiener marked his first day in state office by introducing legislation (SB 35) to address barriers to housing production. Senator Wiener has introduced amendments to SB 35 that would create a streamlined, ministerial (i.e., not triggering CEQA) approval process for certain infill projects in localities that (1) fall short on regional housing needs assessment (RHNA) production goals, or (2) fail to provide annual housing production reports to the State for two consecutive years before the infill project’s application. SB 35 has been passed by the Senate Transportation and Housing Committee, and is now before the Governance and Finance Committee for further consideration.

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TDM Overall ProcessOn February 7th, the San Francisco Board of Supervisors unanimously approved the implementing ordinance for San Francisco’s Transportation Demand Management (TDM) Program. Pending the Mayor’s approval, the TDM Program will take effect in March. What does this mean for project sponsors?

Developers must now incorporate TDM features into their projects, chosen from a menu of options in the City’s adopted TDM Program Standards. As the number of on-site parking spaces proposed for a project increases, developers must include more TDM features  such as bicycle parking and amenities, car-share parking, and vanpool programs.


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Production, Distribution, and Repair (PDR) space is a hot commodity in San Francisco.  Over the past few years, numerous organizations, policymakers, and elected officials have been engaged in efforts to preserve existing and create new PDR, community, and arts spaces, particularly in SoMa.  Supervisor Kim, who previously sponsored the moratorium on conversion of PDR space in SoMa that expired in October, has sponsored Proposition X for the November ballot.  Prop X would impose a conditional use and on-site replacement requirement for many new projects or changes of use that displace PDR, Institutional Community, or Arts Activities uses.

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