Planning Commission approves 75‑unit Broadway housing project under CARS‑to‑Casas; 5‑2 vote

The Planning Commission on July 10 approved a revised proposal to demolish a commercial parking garage at 425 Broadway and build two mixed‑use buildings with about 75 dwelling units and roughly 8,000 square feet of ground‑floor retail in North Beach.

The project sponsor, represented by Steve Vettel, said the design is similar to an earlier 2021 approval but now uses the city’s CARS‑to‑Casas provision to convert auto‑oriented site capacity into housing. Vettel told the commission the plan increases homes from 42 to 75, eliminates office space, provides no off‑street parking and will pay an in‑lieu fee of over $3,800,000 to the city’s affordable housing fund rather than providing on‑site inclusionary units.

Why this matters: The proposal is located in a Priority Equity Geography and next to a single‑room occupancy (SRO) building whose tenants and advocates pressed the commission for on‑site affordable units and protections for light, ventilation and quality of life. Opponents argued that substituting in‑lieu fees for on‑site affordable units would not guarantee housing in the immediate neighborhood, while supporters said the project replaces an underused parking lot with housing, retail activation and a coin‑operated laundromat negotiated with the SRO tenants.

Department staff recommended approval, finding the project “on balance, consistent with the objectives and policies of the general plan” and noting design changes to mitigate impacts to the adjacent SRO (including enlarged light wells and an on‑site laundromat under a community benefits agreement with Chinatown Community Development Center). Speakers from community groups articulated sharply different views: Stan Hayes of Telegraph Hill Dwellers urged the commission not to approve the project “without on‑site affordable housing,” while Brianna Morales of Housing Action Coalition urged approval so the city captures new homes and revenue for affordable housing.

Commission discussion centered on tradeoffs between on‑site inclusionary units and a larger in‑lieu payment, neighborhood impacts to the adjacent Rex Hotel SRO at 401 Broadway, and activation of a gated courtyard and the Verdi Alley paseo. Commissioners who supported the project cited increased housing production, removal of parking as a land use, and the sponsor’s negotiated community benefits. Commissioners Williams and Imperial voted no, both citing concerns over loss of on‑site affordable housing in a Priority Equity Geography and potential impacts on adjacent SRO residents.

The motion to approve passed 5 to 2 (Ayes: Commissioner Campbell; Commissioner McGarry; Commissioner Braun; Commissioner Moore; Commission President So. Noes: Commissioner Williams; Commissioner Imperial). The zoning administrator also announced intent to grant the accompanying rear yard modification with standard conditions.

The applicant said the in‑lieu money goes to the mayor’s housing office; staff noted that the mayor’s office typically applies such funds toward 100% affordable rental projects delivered through subsidy programs, but that the office controls allocation decisions and the funds are not automatically earmarked for the immediate neighborhood.

Next steps: The commission’s approval allows the sponsor to proceed with required permit clearances and conditions of approval; the zoning administrator will finalize the rear yard modification and administrative conditions noted on the record.

Votes at the hearing: Motion to approve project (mover: Commissioner Campbell; second: not specified) — outcome: approved 5–2. Zoning administrator: intends to grant rear yard modification.