After much debate, several San Francisco supervisors have come up with a plan to reduce the affordable housing requirement. On Wednesday, supervisors London Breed, Aaron Peskin, Jane Kim, Ahsha Safai and Katy Tang agreed to a deal that would reduce the inclusionary housing requirement for new apartments from 25% to 18%, the San Francisco Business Times reports. The rate for condos under the proposal would decrease to 20%. The 11-member board of supervisors is expected to vote on the plan next week.
Voters approved the 25% level last June through the passage of Prop C, but the measure allowed the city to create a financial analysis and adjust the rate. A committee working with the city controller's office later said the new requirement would hinder construction and recommended the 18% apartment rate and 20% condo rate.
The new regulation says 10% of new apartment units must be made available to renters making up to 55% of the area median income, 4% reserved for renters with 80% of AMI and another 4% for renters with 110% of AMI. For new condos, 10% of units will be for buyers making 80% of AMI while 5% will be for buyers with 105% of AMI and another 5% will be set aside for buyers with 130% of AMI.
Under the new plan, the 18% rate for rentals would go into effect through the rest of this year. At the start of 2018, the rate would rise to 19% and then to 20% by 2019. The condo rate would rise to 21% in 2018 and 22% in 2019.
Developers choosing to build affordable units off-site will be required to maintain a ratio of 30% affordable units to market rate. This ratio will rise to 31% in 2018 and 32% in 2019. Developers also would have the option to pay a per-unit fee or donate land.
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