Board approves first‑reading cap on market‑rate micro‑units after heated debate

The Board of Supervisors passed, on first reading, two companion ordinances to allow smaller “efficiency” dwelling units in new structures and to add planning code limits on market‑rate micro‑units, approving the measures as amended by a 10–1 roll call vote on Nov. 20.

Supervisor Scott Wiener, sponsor of the measures, said the legislation “will allow, for the creation of smaller efficiency units, also known as micro units,” and described them as an additional housing option that “will rent for less than one‑bedrooms.” He said the policy is intended to add flexibility to housing production amid San Francisco’s affordability crisis.

The package included a building code change (item 15) and a planning code amendment (item 39). Supervisor Wiener’s planning amendment sets a cap of 375 market‑rate micro‑units citywide; when 325 units are entitled the Planning Department must analyze the inventory and location of approvals and report back to the board, after which the board may choose whether to extend the program. The planning code cap excludes student housing, group housing and affordable housing from the numerical limit.

Supporters framed the measures as a limited pilot. Supervisor Campos said the cap “gives me some comfort” and supported proceeding with the caveat that planning’s analysis, once the threshold is reached, must be robust. Supervisor Kim (District 6), whose district includes South of Market, said she supported the measures but urged close study of neighborhood impacts, noting that “SoMa is a neighborhood that is already experiencing incredible density.”

Opponents voiced concerns about affordability outcomes and neighborhood impacts. Supervisor John Avalos said his family of four already lives in a cramped unit and that “this does not make a lot of sense to the San Francisco that I know,” and he opposed the legislation.

On the roll call vote for items 15 and 39 as amended, the board recorded: Supervisor Avalos — No; Supervisor Campos — Aye; President Chu — Aye; Supervisor Chu — Aye; Supervisor Cohen — Aye; Supervisor Elsburn — Aye; Supervisor Farrell — Aye; Supervisor Kim — Aye; Supervisor Mar — Aye; Supervisor Olague — Aye; Supervisor Weiner — Aye. The clerk announced “10 ayes and 1 no.” The ordinances passed on first reading.

Next steps: both measures were advanced on first reading; the Planning Department was directed (by the terms of the planning code amendment) to produce an analysis once entitlement activity reaches the cap thresholds.