Inclusionary Affordable Housing Program

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What is the Inclusionary Housing Program?

San Francisco's Inclusionary Housing Program 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 at "below market rate" (BMR) units as a price that is affordable to low or middle income households, either “on-site” within the project, or “off-site” at another location in the City.

The Program is governed by Planning Code Section 415 and the Inclusionary Housing Program Procedures Manual, and is administered by the Mayor's Office of Housing and Community Development (MOHCD) and the Planning Department.  To be eligible to rent or purchase a BMR unit, a household must meet specific requirements, including income requirements. Read more from MOHCD.

What Changes Have Been Adopted?

The Inclusionary Housing Program has been in effect since 2002. On July 18, 2017, the Board of Supervisors unanimously approved legislation (Board File No. 161351) to significantly revise the key requirements and provisions contained in Section 415 of the Planning Code, including as they apply to “grandfathered” projects currently in the development pipeline. The legislation was signed into law by Mayor Ed Lee on July 27, 2017 and become effective on August 26, 2017.

In addition, this legislation also established new dwelling unit mix requirements for projects in residential districts outside of “form-based” zoning districts, generally located in Plan Areas. These new requirements are set forth in Section 207.7 of the Planning Code.

For more information please see the Planning Code Change Summary of the Section 415 amendments and the new requirements in Section 207.7. This Summary includes a two-page quick reference summary of the key provisions of the current Inclusionary Housing Program.  

Are Further Changes Expected?

The legislation requires that the Controller’s Office, in consultation with the Inclusionary Housing Technical Advisory Committee, conduct a study to develop an appropriate methodology for calculating and applying the Affordable Housing Fee. This study is required to be conducted no later than January 31, 2018 and the Board of Supervisors may consider any changes to the Affordable Housing Fee following the completion of this study.  

In addition, trailing legislation (Board File No. 170834) is pending before the Board of Supervisors that would make a handful of technical changes to Planning Code Section 415; including but not limited to the application of the Inclusionary Program in the Transbay Redevelopment Area and in certain areas including the Mission Plan Area, and how new requirements for feasibility studies of significant re-zoning actions will apply.

Background Documents

Contact

Have questions about the adopted changes and implementation of new requirements? Contact:

Jacob Bintliff 
(415) 575-9170
jacob.bintliff@sfgov.org

Carly Grob 
(415) 575-9138
carly.grob@sfgov.org