Board overturns Planning Commission, blocks demolition of two rent‑controlled units on Outer Clement

The San Francisco Board of Supervisors on Nov. 25 disapproved a Planning Commission decision that would have allowed demolition of a two‑unit, rent‑controlled building on the corner of Sixth Avenue and Clement Street and replacement with two new buildings containing six three‑bedroom units.

An appeal filed by neighbors and property owners argued the project would remove sound, affordable rent‑controlled units at a time when the city is losing rent‑controlled housing. Appellant Steve Williams said the Planning Department’s approval was inconsistent with the city’s priority policies and general plan and noted other recent Planning Department rulings that denied mergers because of the mayor’s directive to preserve affordable housing stock.

Planning Department staff and the project sponsor said the project would result in a net increase in housing—four additional units and a net gain of 15 bedrooms—and argued that the new three‑bedroom units provide family housing the city sorely needs. The department found the project met the mandatory conditional‑use criteria and the Planning Commission approved the authorization on a split vote.

The board’s debate focused on competing policy goals: preservation of existing rent‑controlled housing versus production of larger family units. Supervisors expressed concern that sound rent‑controlled units are effectively irreplaceable under existing law and that approving the demolition would accelerate loss of affordable housing. Several supervisors asked whether a condition could be imposed to preserve affordability—examples discussed included making replacement units permanently affordable or requiring below‑market units—but the city attorney advised the board that such approaches may require further legal review and could be more defensible if handled through development agreements.

Supervisor Marr, who moved to disapprove the conditional use authorization, said the project would remove rent‑controlled housing stock and urged the board to preserve those units. "Every demolition of sound, affordable, rent‑controlled units is a direct attack on tenants' rights and on the rent control system," he said. The motion to disapprove was seconded and carried by roll call vote, 10 ayes to 0.

The board also directed the clerk, working with the city attorney, to prepare findings related to the disapproval.

Several neighbors and city advocates, including the Tenants Union and the Sierra Club, spoke in favor of the appeal. Project supporters, including local residents and the project sponsors, testified in favor of new family‑sized units and said the proposal would be in keeping with neighborhood commercial‑district policy.

The Planning Department’s analysis, the project sponsor said, weighed the general plan’s objectives for both saving existing housing and producing new housing, and concluded that the net unit and bedroom increases weighed in favor of the project. The board, acting as the final discretionary review for the conditional use authorization, disagreed and disapproved the authorization.