S.F. Mayor’s housing task force pushes new affordable housing policies

29 10 2014

By Cory Weinberg, SF Business Times, full story here.

Excerpt:

sf-city-hall 600xx3264-2176-0-136San Francisco has the least affordable housing market in the country. The number of rental housing units available in the city meets the needs of just half the 86,000 very- and extremely-low income households in San Francisco, according to a report this fall from the California Housing Partnership Corp. As of last spring, about 1,500 affordable units under the inclusionary housing law were in the pipeline to get built. The city already has about 16,000 affordable units. The real difficulty in delivering affordable units is the exorbitant cost of building any housing in San Francisco — affordable or market-rate — which clocks in at approximately $500,000 minimum per unit.

Under current law, developers who build market-rate residences in San Francisco have to help pay for or build housing that low- and middle-income residents can actually afford. Those developers have three options: build 12 percent of the below-market rate units on the same site as their market-rate project, build 20 percent of the units on a separate piece of land or pay a fee equivalent to 20 percent to the Mayor’s Office of Housing. More and more, developers are opting to pay the fee, slowing the pace of affordable housing construction.

“Part of the objective here is to find new avenues for developers to actually build units rather than just pay their fees,” Council of Community Housing Organizations co-director Peter Cohen said, a member of the mayor’s working group.


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