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.
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.
The 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.
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:
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.
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.