San Francisco has approved a housing reform package that aims to accelerate housing production in the city. The package includes proposals to reduce inclusionary housing requirements for development projects and reform impact fees based on data to ensure new housing is built more quickly. Here are the key points of the reform package:
- Temporary reduction in inclusionary housing requirements: The plan temporarily reduces inclusionary housing requirements on new and already approved development projects.
- Reform of impact fees: The reform package aims to reform impact fees based on data to ensure new housing is built more quickly.
- Accelerate housing production: The goal of the reform package is to accelerate housing production in the city by reducing barriers to development.
The Inclusionary Affordable Housing Program has been in effect in San Francisco since 2002 and requires new residential projects of 10 or more units to pay an Affordable Housing Fee or meet the inclusionary requirement by providing a percentage of the units as “below market rate” (BMR) units at a price that is affordable to low or middle-income households. The reform package aims to make it easier for developers to comply with these requirements and build more housing in the city.
In July 2023, the San Francisco Board of Supervisors voted to reduce the percentage of affordable rental apartments required in new developments from 25% to 18% . The new housing reform package builds on this decision and aims to further reduce barriers to development in the city.
The reform package has been met with mixed reactions. Supporters of the package argue that it will help to address the city’s housing crisis by making it easier and more affordable to build new housing. Critics, however, argue that the package does not go far enough and that more needs to be done to address the city’s housing shortage.
The approval of the housing reform package is a step towards addressing San Francisco’s housing crisis. By reducing barriers to development and making it easier for developers to comply with affordable housing requirements, the city can work towards increasing the supply of affordable housing for its residents.
