The value at which a residential unit in San Francisco is now considered to be “demonstrably unaffordable and financially inaccessible” by the City’s Planning Department has just been raised to $1.63 million, up from $1.51 million and versus $1.34 million in 2013.
The demonstrably unaffordable mark, which is set at 80 percent of the combined land and structure values of the single-family homes in San Francisco, is the threshold at which a proposed demolition or merger of a residential unit in the city does not theoretically warrant a hearing.
That being said, an interim zoning control was adopted earlier this year which requires hearings for the merger of demonstrably unaffordable units through the end of 2016. And as we first reported yesterday, legislation to permanently do away with the ability to “price out” of a hearing has been drafted.
In light of the city’s current housing affordability crisis, and in an attempt to preserve the city’s “affordable” housing stock, the Planning Department’s current policy is to recommend the denial of any merger in buildings with three or more units where at least one of the proposed units to be merged is valued below the demonstrably unaffordable mark.