August 24, 2016
San Francisco’s requirement that new housing developments set aside 25% of units as affordable housing (passed as Prop C) may hinder housing development in the city, a group of consultants reported this week.
The committee working with the city’s controller’s office found the 25% requirement, up from a previous requirement of 12%, may reach too high. Using land values to determine at what point projects would pencil, the group found projects were feasible with up to 18% affordable housing required on apartment projects and 20% for condos, the San Francisco Business Times reports.
The committee will make a recommendation to the Board of Supervisors next month. Based on the study’s outcome, the board could vote to revise its requirements, as allowed under the measure. [SFBT]