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San Francisco advances legislation to waive impact fees for housing conversions

June 05, 2023 | San Francisco County, California


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San Francisco advances legislation to waive impact fees for housing conversions
In a recent San Francisco County government meeting, officials gathered to discuss significant legislative changes aimed at revitalizing the downtown area and addressing the housing crisis. The meeting highlighted a proposal to waive impact fees for commercial to residential conversions, a move designed to encourage developers to transform underutilized office spaces into much-needed housing.

The discussion stemmed from a report commissioned last year by former supervisor Maher, which recommended various strategies to facilitate these conversions. Among the key suggestions was the reduction or elimination of impact fees, a point echoed by several stakeholders, including Gensler and the Urban Land Institute. The proposed legislation aims to remove these fees, except for those related to inclusionary housing, thereby lowering the financial barriers for developers.

City officials have been collaborating closely with the planning department and various community organizations, including SPUR and the Housing Action Coalition, to refine the legislation. The proposed amendments include expanding eligibility criteria for adaptive reuse projects and increasing the allowable additions to existing structures from 20% to 33% of the gross floor area.

The Planning Commission has already expressed support for these changes, emphasizing the importance of consistency in the criteria across related legislation. President Peskin suggested a sunset provision for the new measures, proposing that they be reviewed and potentially renewed by 2028, ensuring that the city can adapt to changing needs and circumstances.

As the meeting concluded, the atmosphere was one of cautious optimism. Officials expressed hope that these legislative efforts would not only ease the housing shortage but also breathe new life into San Francisco's downtown, creating vibrant communities where people can live and work. The collaborative spirit among city leaders and community advocates signals a proactive approach to tackling one of the city's most pressing challenges.

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