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Board advances temporary cuts to inclusionary housing requirements and development impact fees after heated debate
Summary
The Board of Supervisors voted July 25 to pass on first reading ordinances that temporarily lower inclusionary housing requirements and reduce certain development impact fees, approving the measures 10'1. Supervisors and public speakers debated whether the changes will increase housing production or simply reduce affordable housing funding.
On July 25 the San Francisco Board of Supervisors advanced two linked ordinances on first reading that adjust the city's inclusionary housing requirement and development impact fees. Items 66 and 67 were recommended by the Land Use and Transportation Committee and carried forward after an extended floor debate that included supervisors representing multiple districts and several public commenters.
Why it matters: The ordinances lower mandatory inclusionary on-site requirements and temporarily reduce some development impact fees. Supporters said the measures will incentivize housing construction for projects that are already entitled or ready to start; opponents warned the changes will reduce the amount of affordable housing produced and cut fees used to finance transit and parks.
Board action and vote - Items 66 and 67 (ordinances to amend planning and building codes for development impact fee indexing, deferral, and waivers; and amendments to development impact fee reductions / inclusionary housing reductions) were passed on first reading with a roll-call vote of 10 in favor and 1 opposed (Supervisor Preston voted no). The clerk read the titles and roll call on the floor.
Debate highlights - President Peskin (Board President) framed the package as the result of a technical advisory committee process and controller's review: "This is a significant haircut. It is going to move some projects," he said, noting the measure is temporary and will be revisited on a three-year cycle. - Supervisor Preston said he opposed the measures, arguing that there was "no showing" the changes would produce additional development and that the ordinances would reduce affordable housing revenue and funds for transit and parks. - Supervisor Melgar and others said that while the decision was difficult, time-limited reductions tied to an explicit end date could help move entitled projects forward and that the city should pursue additional revenue sources (bonds, regional/federal funding) to replace lost affordability requirements. - Supervisor Ronan urged a broader conversation about housing policy and housing stock usage, noting concerns about short-term rentals and investor ownership of units.
Scope and conditions - Sponsors said the reductions are time-limited (through November 2026 in committee language) and targeted to projects in the existing pipeline. The board agreed to built-in review and to revisit the policy after the temporary period.
What remains - The ordinances were adopted on first reading. They will return for the required second reading and further committee work and implementation details, including monitoring and reporting back on whether the changes spur additional construction.
Speakers quoted (from the meeting transcript) - "This is a significant haircut. It is going to move some projects, not all of the projects that are in the pipeline," President Peskin said, describing the technical analysis that led to the recommendation. - "There is no showing that the proposals here will lead to any additional development in our city," Supervisor Preston said in opposition.
Ending The board approved temporary changes to inclusionary requirements and fee reductions on first reading by a 10'1 vote. Supporters emphasized the time-limited nature of the measures and the need to monitor outcomes; opponents warned the changes could reduce affordable housing production and revenue for city services.
