Having trouble keeping up with the seemingly endless torrent of new housing laws? You are not alone. Here is our summary of the key pending State and San Francisco legislation aimed at increasing housing/affordable housing production:
The State Density Bonus law has been in effect for almost 40 years, but it has required a prolonged housing crisis to push San Francisco to adopt a local implementing ordinance. Last year the Board of Supervisors adopted the 100 Percent Affordable Housing Program for affordable housing projects, but was unable to agree on a program for market-rate projects. Supervisor Katy Tang has now introduced legislation that would consolidate existing and add new density bonus programs to local law.
The Affordable Housing Bonus Program (AHBP) renames the existing 100 Percent Affordable Housing Program and adds three new components: 1) the HOME-SF Program; 2) the Analyzed State Density Bonus Program (ADSBP), and 3) the Individually Requested Bonus Program (IRBP).
We 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.
Assemblymember Phil Ting (D – San Francisco) introduced new amendments to the State Density Bonus law on March 15, 2017 that would specifically require local jurisdictions to impose their local inclusionary housing requirements on density bonus units, unless the jurisdiction expressly exempts them by ordinance.
Is the City another step closer to sorting out inclusionary housing requirements and implementation of Proposition C? Board of Supervisors members have introduced two competing ordinances that seek to call the question regarding the City’s inclusionary housing priorities and requirements.
The City is one step closer to sorting out inclusionary housing requirements and local implementation of the State Density Bonus law now that the City Controller has released its final recommendations to the Board of Supervisors. The good news for developers is that recommended on-site and in-lieu fee percentages are below Proposition C levels. On the other hand, an “in-lieu” fee for density bonus units is now being contemplated.
On 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.
As we previously reported, on November 8, 2016, the voters of the City and County of San Francisco passed Proposition W (Real Estate Transfer Tax on Properties Over $5 Million) increasing real property transfer taxes. Effective December 27, 2016, the Real Property Transfer Tax is raised as follows:
- From the current rate of 2% to 2.25% for properties with a value or consideration of at least $5,000,000 and less than $10,000,000;
- From the current rate of 2.50% to 2.75% for properties with a value or consideration of at least $10,000,000 and less than $25,000,000; and
- From the current rate of 2.50% to 3% for properties with a value or consideration of at least $25,000,000 or more.
Download a copy of the Transfer Tax Affidavit here.
The San Francisco Planning Commission took a major step on December 8, 2016, by approving the first market rate housing project to utilize the State Density Bonus law.
The State law, which has been in effect for almost 40 years, incentivizes developers to construct more affordable housing by providing density bonuses of up to 35 percent for projects that incorporate on-site affordable units. The amount of the density bonus varies depending on the level of affordability and the number of affordable units. Continue Reading State Density Bonus Law Debuts in San Francisco
Shortly after being sworn in as California State Senator on Monday, former San Francisco Supervisor Scott Wiener introduced SB 35, placeholder legislation addressing barriers to housing production. The legislation currently consists of a one paragraph intent statement, focusing on streamlining and providing incentives for creation of housing, and removing local barriers to creating affordable housing and complying with regional housing needs obligations.