Proposition C, which will initially double the required percentage of below market rate (BMR) units for newly proposed developments in San Francisco with 25 units or more, has passed with 67 percent of voters supporting the measure.
The Proposition will require developers of proposed projects that haven’t yet completed an environmental review to either provide 25 percent of the building’s units at below market rates or pay an in-lieu fee equivalent to providing 33 percent of the units at below market rates. The city’s Inclusionary Housing Program currently requires 12 percent on-site or an equivalent 20 percent fee.
But Proposition C also raises the income threshold for the designated affordable units, allowing roughly half the required below market rate units to be priced as affordable to middle-income households making up to 100 percent of the Area Median Income (AMI) for rental units or 120 percent of the AMI for condos.
In addition, San Francisco’s Board of Supervisors have been granted the right to alter the required percentage of BMR units, up or down, without the need for voter approval going forward.