Update: Pay close attention to this statement “2 or more units built on one lot OR on adjacent lots”.   We are checking with our sources to translate what exactly that means. Answers

Supervisor McGoldrick is now proposing to include ALL housing
developments in the Residential Inclusionary Affordable Housing Program.  That means that all projects from a single family home up to multi-unit developments will be subject to Inclusionary Housing, no exceptions.

“Supervisor McGoldrick’s Proposal to Expand the Residential Inclusionary Affordable Housing Program

Planning Code Section 315

San Francisco currently requires developers of new housing projects of 5 or more units on one lot, or 10 or more units if on more two or more adjacent lots, to meet certain affordability guidelines of below-market rate units.  Supervisor McGoldrick is proposing legislation to expand the requirement to buildings of 2 or more units built on one lot or on adjacent lots. 

Timing:  These requirements go into effect as soon as the proposed legislation is passed and will apply to all projects of two or more units that have not yet received their first site or building permit. 

Permits and Timing:  You must be diligent in finishing your development once you get your permit, because if your new permit expires and you go to get a new permit, the new lower figures apply. 

Compliance via In-lieu Fee:  The in-lieu fee calculations have not changed, except they would apply to developments of 2-4 unit projects.  In-lieu fees for 2-4 unit projects will be calculated based on the fractional result of 20% of the project’s units rather than a higher number reached by rounding up to the closest whole number.  In other words, a developer of a four unit project would need to dedicate one whole unit to below-market housing (either on-site or off-site) if they opted to comply via construction, but would owe a fee equal to only 80% (4 x 20%) of the cost of construction of a unit if they opted to comply by paying an in-lieu fee.  In-lieu fee rates are displayed on the City website for the Mayor’s Office of Housing at www.sfgov.org/site/moh_page.asp?id=36090 and included here.

The fee is typically adjusted annually on July 1 of each year. However, the next fee schedule will be published as early as spring of 2007. “
–Editor’s Note: To fight this, please go to City Hall Room 263 at 1pm.