A ballot measure designed to more than double the number of below-market-rate (BMR) units of housing that developers must provide or fund when building market-rate units in San Francisco is about to be formally proposed by Supervisors Jane Kim and Aaron Peskin.
While market-rate developments with ten or more units are currently required to provide 12 percent of the units at below market rates, build an equivalent of 20 percent of the units off-site, or pay into an affordable housing fund, the proposed ballot measure would increase the required on-site percentage to 25 percent, increase the off-site option to 33 percent, and increase the in-lieu of fee from 20 to 33 percent of the value of the required on-site units.
Of the required 25 percent of on-site units, 15 percent would be priced for low-income households earning up to 55 percent of the area median income for rentals, or up to 80 percent of the median for condo offerings. The other 10 percent would be priced for middle-income households with incomes up to 100 percent of the area median for rentals, up to 120 percent of the median for condos.
Developments with fewer than 25 units would initially be altogether exempt from having to provide any affordable units under the proposed charter amendment, but with the intent that a revised program for developments with 10 to 24 units would soon follow.
The Supervisors’ measure will likely compete with a ballot measure that’s being spearheaded by the Mayor, the specifics for which have yet to be defined but are likely to be more industry friendly.