Committee backs one‑time financing exception for Sutter Street affordable housing project

The Land Use and Transportation Committee on Feb. 10 recommended that the Board of Supervisors consider an ordinance allowing specific affordable housing projects to use California Debt Limit Allocation Committee (CDLAC) tax‑exempt bond financing and tax credits administered by the tax credit allocation committee. The ordinance, as described in committee, would apply when projects provide affordable units or “deeper affordability levels” than required by the inclusionary housing ordinance and would require the Mayor’s Office of Housing and Community Development to report on such projects. It also would exempt those projects from a local health code requirement that new buildings use alternate water sources for nonpotable uses.

District 3 Supervisor Nannie Sauter, a co‑sponsor, called the Sutter Street site “one of the largest, most significant housing opportunities we have in the Northern part of San Francisco” and said neighborhood support has grown. A public commenter, Rabbi Sophie Catherine Woodland Rothschild, urged approval, saying the site is vacant and “vital and needed.”

Chair Mirna Melgar moved that the committee forward the ordinance with a positive recommendation as a committee report. The motion passed on a roll‑call vote in which Vice Chair Cheyenne Chen, Supervisor Bilal Mahmood and Chair Melgar each voted in the affirmative.

Next steps: the item will be scheduled for the Board of Supervisors; the ordinance packet as introduced includes CEQA and planning‑consistency findings and a memo requesting the item be agendized for potential Board consideration on Feb. 11, 2025.

(Reporting note: direct quotes and attributions come from committee proceedings; planning and health‑code technical details referenced in committee materials were summarized in the clerk’s item description.)