Committee delays ordinance to let mixed‑income projects use state tax credits; changes would exempt some projects from nonpotable water rule

The San Francisco Board of Supervisors’ Land Use and Transportation Committee on Feb. 3 delayed consideration of an ordinance that would allow private market developers to use California debt limit allocation committee (CDLAC) tax‑exempt multifamily revenue bonds and tax credits allocated by the California Tax Credit Allocation Committee (TCAC) when a project provides additional on‑site affordable units beyond the current inclusionary requirement.

The committee approved two substantive amendments to the ordinance and voted to continue the item to the Feb. 10 meeting so the changes can be circulated and re‑noticed. The measure, as introduced, would update the Planning Code to permit the use of CDLAC/TCAC financing for certain projects that add affordable units or provide deeper affordability than required by the inclusionary housing ordinance.

The changes were brought forward to allow a mixed‑income project on Sutter Street — described repeatedly in testimony as a 303‑unit project at 1101–1123 Sutter that would include 101 affordable units — to move forward under state financing that requires documentation showing readiness to start construction by a hard state deadline. Supervisor Souder (District 3) said the project “would bring 300 new homes … a hundred of these units would be affordable; it represents a 33% affordable project” and called the opportunity “rare” and urgent because the development faces a March 17 deadline…