In a recent San Francisco government meeting, officials discussed a significant ordinance aimed at addressing the city's high office vacancy rates and the pressing need for housing. With a staggering 37% vacancy rate, equating to approximately 32 million square feet of empty office space, the city is grappling with a challenging economic landscape. The ordinance, introduced by Mayor London Breed and Supervisor Dean Preston, seeks to facilitate the conversion of vacant office buildings into residential units as part of the downtown economic recovery strategy.

Jacob Blintliff from the Office of Economic and Workforce Development highlighted that the city anticipates it could take up to 18 years to return to a healthy vacancy rate of 6%. He noted that around 13 million square feet of office space is considered functionally obsolete, making it unlikely to attract tenants again. This situation has prompted city officials to explore ways to expedite the conversion of office spaces into housing.

The ordinance proposes waiving impact fees and affordable housing requirements specifically for downtown office-to-housing conversion projects. These fees, which can range from $70,000 to $90,000 per unit, significantly increase the cost of such projects, potentially deterring developers from moving forward. By eliminating these fees, the city aims to stimulate investment in downtown housing, thereby addressing two critical issues: the urgent need for more housing and the stabilization of the office market.

The meeting underscored the city's commitment to tackling its housing crisis while simultaneously revitalizing its downtown area. As the ordinance moves forward, city officials are optimistic that these measures will not only increase housing availability but also contribute to the overall economic recovery of San Francisco. The next steps will involve further discussions and potential adjustments to ensure the ordinance effectively meets its goals.