In order to promote the development of Student Housing in San Francisco, the City’s Planning Code provides a big incentive for developers to build for educational institutions.
While new developments with ten or more residential 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, developers are exempted from the City’s Inclusionary Housing requirements if the building will be either be owned or leased to an educational institution with a term of at least five years.
But as newly proposed by Supervisor Wiener, San Francisco’s Planning Code would be amended and the five-year lease term requirement would be shortened to two, “to encourage more partnerships and spur the creation of more student housing.”
UPDATE: Our original report was poorly worded.
To clarify, while Supervisor Wiener’s proposed amendment would shorten the required lease term an educational institution would need to sign in order to maintain a development’s exemption from the City’s Inclusionary Housing Program, any subsequent conversion to non-student housing would then require the building owner to meet the requirements of the Program, either by paying an in lieu fee or providing the requisite number of below market rate units onsite.