SF (finally) cuts affordable housing requirement from 15% to 5%
For decades, smart economists have watned that inclusionary zoning (such as SJ has) acts a hidden tax on new construction, raising market-rate prices, and slowing down the overall supply of housing. SF seems to be seeing the light. Mission Local explains, below.
The SF Board of Supervisors voted 9-2 last week to cut to 5 percent the percentage of units that developers of market-rate housing must set aside for affordable units in their projects. Mission Local explains, below.
Previously, the rate — called the “inclusionary housing” rate — was 15 percent citywide.
The ordinance was co-sponsored by Supervisors Myrna Melgar, Dorsey, Sherrill, Sauter, and Mayor Daniel Lurie.
The most recent report on city housing requirements concluded that market-rate housing development in San Francisco has slowed due to several factors — among them higher interest rates and increased cost of construction.
The memo concluded that even a 5 percent requirement might be too high. “Requirements significantly above 0% would further threaten feasibility,” the memo reads,” and would not create additional affordable housing.”
Read the whole thing here.
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