Commission backs 181 Fremont deal to pay $13.85M for off‑site affordable housing

The Planning Commission on Oct. 23 recommended approval of a development agreement and downtown project authorization that will let the 181 Fremont sponsor pay an in‑lieu contribution rather than provide 11 on‑site below‑market‑rate (BMR) units.

OCII acting project manager Courtney Pash and staff explained that the project’s residential units are concentrated on the upper floors of a 700‑foot tower, with very high homeowners association (HOA) fees that would make on‑site ownership BMRs impracticable. OCII and the Mayor’s Office negotiated a $13,850,000 contribution to be used in the Transbay project area; staff estimates that the funds could support about 69 affordable units in the redevelopment area — a net gain of 58 units compared with the 11 on‑site units.

April Veneracion, representing Supervisor Kim, said the supervisor supported the variation because the sponsor’s fee would be applied to nearby affordable production and advance the Transbay 35% affordable goal. "This variation represents a genuine effort to make sure those in need of affordable units can actually partake in living in this area," Veneracion said.

Commissioners raised questions about fee calculations and whether the city’s in‑lieu fee schedules should be revisited; staff indicated the in‑lieu fee framework is updated annually and recommended the item as a case study for the mayor’s housing task force. The commission voted unanimously to approve the amendment and recommend Board of Supervisors approval.

Next steps: the commission’s recommendation moves to the Board of Supervisors and OCII will administer the contribution toward Transbay affordable housing projects.