Commission delays vote on Family Zoning Plan rezoning after extensive public concern over small-business impacts

The San Francisco Small Business Commission continued consideration July 28 of the Family Zoning Plan, a major rezoning package the city says is required under the state housing element to create capacity for roughly 36,000 housing units. Planning Department staff briefed the commission on the rezoning's scope, the incentives available to developers under a new local program, and proposed small-business protections and incentives.

Lisa Chen, principal planner and project manager for the Family Zoning Plan, described the plan as a statewide requirement to create additional housing capacity in so-called well-resourced neighborhoods. Chen said the package includes a zoning map ordinance establishing base heights and an implementing planning-code ordinance that would set development controls and a local bonus menu.

Sarah Richardson, planning department staff, presented a small-business impact analysis. Richardson said the department's first-pass estimate identified roughly 4,295 businesses across 37 commercial corridors in the plan area. After filtering out parcels unlikely to redevelop (for example, those with existing residential units, historic landmark constraints, or institutional uses), that number fell to about 915 businesses; further limiting the analysis to lots of 8,000 square feet or more -- a conservative threshold often used by affordable-housing developers -- reduced the estimate to 207 businesses on parcels theoretically suitable for development.

Richardson cautioned that development historically occurs incrementally and tends to happen first on larger lots such as parking lots, gas stations and auto uses. "When storefronts are vacant, it doesn't help with the safety, or the feeling of comfort that residents have in the neighborhood," she said, but noted that past rezonings did not produce wholesale storefront loss. Planning staff also described draft measures intended to reduce harm, including tenant-notification requirements, a square-footage bonus for developments that relocate a displaced business or provide legacy-business space, incentives for micro-retail and proposals under consideration to offset tenant improvements for food uses.

Public comment was extensive and strongly oriented toward small-business protections. Speakers including neighborhood leaders and long-time small-business owners urged the commission to withhold support until stronger mitigation was included. Comments referenced the potential pace of development, the cost of relocating or rebuilding in San Francisco, and a desire for a right-to-return or direct relocation payments. Several speakers urged state-level advocacy because state laws (for example, AB 2011 was cited) limit local authority over commercial relocations.

After public comment and commissioner discussion the commission voted to continue the matter. Commissioner Dickerson moved to delay further action on the Family Zoning Plan; Commissioner Cornett seconded. In a roll-call vote Commissioners Benitez, Cornett, Dickerson, Herbert, President Huey and Vice President Zazunas voted to continue the item; Commissioner Ortiz Cartagena was absent. The motion passed.

Planning staff said the proposal remains on a timeline to reach adoption hearings at the Planning Commission in September and then the Board of Supervisors, with an overall state deadline to meet zoning-capacity requirements by Jan. 31, 2026. Planning staff and commissioners said they would use the additional time to clarify small-business protections and related companion proposals before returning the matter to the commission.