Building Inspection Commission backs one-year pilot to waive DBI fees for ADUs and 100% affordable projects

The San Francisco Building Inspection Commission on March 20 voted unanimously to send a one-year pilot ordinance (Supervisors' file no. 190,214) to the Board of Supervisors recommending waivers of specified Department of Building Inspection (DBI) fees for accessory dwelling units (ADUs) and projects in which 100% of the units are deed-restricted as affordable.

Sofia Kittler, a policy adviser to Mayor London Breed, told commissioners the pilot would waive DBI plan-review fees, inspection fees, records-retention fees and planning surcharge fees and would be retroactive to the date of introduction. "The legislation before you is a pilot program of just over 1 year to waive DBI plan review fees, inspection fees, records retention fees and planning surcharge fees for all accessory dwelling units and affordable housing projects," Kittler said.

Kittler gave commission members projected waiver figures: about $20,700 per single-family ADU application, an expected 90 ADU applications (roughly $200,000 in waived ADU fees), six new affordable-housing construction projects projected to yield about $150,000 each in waived DBI fees, and 15 small-site affordable projects with a median waiver of $12,000. Taken together, staff projected the pilot would cost roughly $1,400,000; Kittler said the mayor's office expects those costs can be absorbed through departmental efficiencies and noted DBI's roughly $40,000,000 contingency balance.

Commissioners pressed staff on two recurring concerns: (1) whether waivers should apply to ADUs created inside existing multifamily buildings when those units are not 100% affordable, and (2) whether fee deferrals (collecting fees at permit issuance or project close) across multiple departments would be more effective than waivers. Commissioner Walker noted the Code Advisory Committee suggested limiting waivers for ADUs in multifamily buildings unless they are 100% affordable, and Commissioner Wasser said waiving only DBI fees could cause confusion if other departments (planning, fire, public utilities commission, public works) still charge fees.

Kittler and DBI officials acknowledged the concerns and said the pilot includes a requirement for departments to submit a report two months before the pilot sunsets so the city can evaluate revenue impacts and whether the program increased housing production. Kittler said a fee deferral across departments is a suggestion they would consider for future legislation or as a modification after the pilot if the report shows success.

A motion to approve the Commission's action on the ordinance was made and seconded and passed on a roll-call vote with all commissioners recorded as "yes." Kittler said the measure will go next to the relevant committee and then the Board of Supervisors; she indicated it was tentatively scheduled for the first week in April.

Next steps: DBI and the mayor's office will collect implementation data during the pilot period, produce the required report two months before the sunset date, and the Board of Supervisors will consider the ordinance in its legislative process.