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Supervisor Kim says higher in-lieu fee at 181 Fremont will fund dozens more affordable units
Summary
Supervisor Kim described a negotiated $13.85 million in-lieu fee at 181 Fremont that would fund an estimated 69 affordable rental units off-site, arguing the higher fee yields more affordable units than an 11-unit on-site requirement.
San Francisco'14In remarks during the Board of Supervisors meeting, Supervisor Kim outlined a negotiated in-lieu fee for the 181 Fremont project in the Transbay area that she said would produce substantially more affordable rental units than the project's originally proposed on-site inclusionary units.
Kim said the developer—s original offer was 11 on-site Below-Market-Rate (BMR) units out of 74 total residential units, which under the city's in-lieu formula would have yielded about $5.5 million toward affordable housing. Kim said the Office of Community Investment and Infrastructure (OCII) negotiated a $13.85 million in-lieu payment, nearly three times the prior amount, which she said could fund approximately 69 affordable rental units in the Transbay area rather than 11 on-site units.
Kim argued that on-site units in a luxury condominium tower often carry homeowner association fees that make ownership BMR units unaffordable to many middle-income families; by contrast, the negotiated fee would subsidize rental units on Transbay Block 8 (Folsom between First and Fremont), producing a larger number of deeply affordable rentals. OCII has an exclusive negotiation agreement with Related Companies and Tenderloin Neighborhood Development Corporation for Block 8, Kim said.
Kim described the negotiated arrangement as setting a precedent for using market values to set higher off-site fees and argued it would result in more affordable housing overall. She said the proposal would be considered by the OCII commission and planning commissions as part of ongoing redevelopment-area actions.
