Proposition C—the Commercial Rent Tax for Childcare and Early Education—is set to take effect on January 1, 2019, and increase the Gross Receipts Tax (“GRT”) on commercial rents in San Francisco.  As discussed in our previous post, Proposition C competed with Proposition D—the Housing For All Commercial Rent Tax—and prevailed with San Francisco voters in June. Continue Reading Update on Commercial Rent Tax: Tax For Childcare Passes, Faces Legal Challenge

Housing San FranciscoThe 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.

Continue Reading Inclusionary Housing Recommendations a Mixed Bag for Developers

San FranciscoWith rising housing costs remaining a priority concern for the region, affordable housing had a major presence on Bay Area ballots this November. As detailed below, voters in three municipalities and three counties across the Bay Area passed measures to increase affordable housing funding for low and moderate-income households. Taken together, these measures will yield about $2 billion in new housing funds.

Continue Reading Housing is Top of Mind: Results of Bay Area Affordable Housing and Rent Control Measures

San Francisco Ballot MeasuresPrior to the November 8 election, we reported on the long list of local propositions on the San Francisco ballot, including a number of measures impacting real estate taxes, land use and governance.  The results were of course eclipsed by national news, but there are some significant local developments, updated here.

Continue Reading San Francisco Election Results: Which Real Estate Measures Passed?

photo-1444212568492-d2799d30943bAfter several weeks of delays, on September 13 the City Controller released a study assessing the impacts of Prop C’s increases in the affordable housing percentage requirements for market rate developments.

Whereas Prop C increased the required set-aside rate from 12 to 25 percent, the study recommends setting an initial on-site requirement of 14 to 18 percent for rental projects and 17 to 20 percent for ownership projects. The study, authorized by the Board of Supervisors in trailing legislation contingent on voters’ approval of Prop C in June, directed the Controller to assess the economic feasibility of current and increased inclusionary housing requirements under Prop C, and make recommendations in an advisory report. The Board of Supervisors will now consider the recommendations in setting the City’s inclusionary housing requirements.

Continue Reading Update: City Controller Recommends Reduction in Prop C’s Affordable Housing Percentages

Map of Central SoMaThe Planning Department released the Central SoMa Plan on August 11, 2016, updating the framework for developing the 230-acre neighborhood.  The Plan focuses on increasing density in a transit-rich area while emphasizing economic, social, and environmental sustainability.

The full Plan is available here.

Many aspects of the Plan involve the most-debated and legislated issues in San Francisco development today, including affordable housing requirements, PDR space, and new office development – leaving the Plan subject to further evolution following this fall’s election.

Continue Reading Coming Into Focus – Draft Central SoMa Plan Released

photo-1423347673683-ccdb7f6a948fPublication of the much-anticipated feasibility study of the City’s new, heightened affordable housing requirements, originally due on July 31st, has been delayed until September. Nonetheless, on August 22nd the City Controller released draft recommendations concluding that increasing the new affordable housing set-aside to twenty five percent would reduce total housing production by twenty two percent as compared to the prior set-aside of twelve percent.

The draft states that an eighteen percent on-site set aside for apartments and a twenty percent on-site set aside for condos mark the upper bounds of economic feasibility.

Continue Reading City Controller’s Draft Report Finds New Affordable Housing Requirements May Be Economically Infeasible