Planning Commission approves hybrid inclusionary plan for 55 Laguna, preserving senior LGBT housing

The San Francisco Planning Commission voted unanimously on Aug. 4, 2011, to approve a revised conditional use authorization for the mixed‑use project at 55 Laguna Street that permits a hybrid inclusionary housing approach combining on‑site below‑market‑rate (BMR) units with a developer fee.

Planning department staff said the modification would allow the market‑rate developer to provide a minimum of roughly 10 percent (about 32 units) and up to 15 percent (about 50 units) of the market‑rate component as on‑site BMR family rental units. If fewer than 15 percent are provided on site, the developer may pay an affordable housing fee of up to approximately $6,300,000 to comply with planning code section 415. The decision preserves the previously approved senior affordable component — about 110 units to be developed by Open House/Mercy Housing — and leaves that project 100 percent affordable, staff said.

The change was proposed after the Mayor's Office of Housing said it could not immediately fund the full subsidy committed to the senior affordable component. Under the approved approach the mayor's office has one year to try to secure the additional subsidy that would restore the original 50 on‑site family BMR units; the hybrid arrangement allows both senior and market‑rate pieces to move forward together while the MOH seeks financing.

Project counsel Steve Battle and Seth Kilborn, executive director of Open House (the organization leading senior LGBT housing), told the commission Wood Partners would prepay a portion of the housing fee if needed to synchronize ground‑lease payments and enable both market‑rate and senior projects to proceed. Staff noted broad community engagement: neighborhood meetings, letters and hundreds of postcards in support, and a Market and Octavia Community Advisory Committee resolution backing the compromise.

Public testimony was largely supportive. LGBT seniors and community advocates said the project responds to a pressing shortage of deeply affordable senior housing for LGBT older adults. Other speakers, including historic‑preservation advocates, urged careful review of potential demolition and full compliance with federal NEPA/NHPA procedures because the project uses HUD Section 202 funds and is located in a National Register historic district. Planning staff responded that substantive design changes would return to the commission and, if major changes occur, additional review would be required.

Commissioners praised the community process and urged staff and sponsors to return with any significant design changes. After discussion, Commissioner Ron Miguel moved the draft motion to modify conditions 20, 21 and 29 in motion number 17537 to permit a combination of on‑site BMR units and a fee; the motion was seconded and passed unanimously. The commission recessed for 10 minutes after the vote.

What happens next: the senior component remains subject to financing by the Mayor's Office of Housing; staff and the proponents said they expect to return if significant design or preservation issues arise. The commission’s action changes only the inclusionary compliance mechanism, not the approved physical project footprint, and it requires sponsors to return with any material modifications to the design or program that would alter the approvals.