Revisions to the Inclusionary Affordable Requirements

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What is the Inclusionary Housing Program?

San Francisco's Inclusionary Housing Program requires developers of projects with 10 or more units to pay an Affordable Housing Fee, or to instead sell or rent a percentage of the units at a "below market rate" (BMR) price that is affordable to low or middle income households.

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?

On July 18, 2017, the Board of Supervisors unanimously approved legislation (Board File No. 161351) to significantly revise the Inclusionary Housing requirements contained in Section 415 of the Planning Code, including as they apply to “grandfathered” projects currently in the development pipeline. This legislation also established new dwelling unit mix requirements for projects in residential districts outside of Plan Areas. The legislation was signed into law by Mayor Ed Lee on July 27, 2017 and will become effective as of August 27, 2017.

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.  

On September 5, 2017 the Board of Supervisors is scheduled to hear a duplicated version of the legislation to consider two minor technical changes related to the application of the Inclusionary Program in the Transbay Redevelopment Area and to clarify how new requirements for feasibility studies of significant re-zoning actions will apply.

Background Documents


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

Jacob Bintliff 
(415) 575-9170