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Planning staff and CAC press ahead on Market Octavia: inclusionary housing, parking CUs and transportation projects
Summary
At a follow‑up hearing, Planning staff and the Market Octavia Community Advisory Committee discussed affordable housing strategies (including a proposed land‑dedication alternative), parking conditional‑use guidelines, the limited take‑up of fee deferrals, and near‑term transportation projects such as Hayes Street two‑way and Haight two‑way.
Planning Department staff presented a follow‑up to the Market Octavia monitoring report on June 16, outlining areas for ongoing work in the plan area and highlighting Community Advisory Committee recommendations on affordable housing, parking conditional uses and transportation improvements.
Staff said recent state court rulings limit the City's ability to require on‑site inclusionary housing in some cases. As a response, staff said it will return with a proposed land‑dedication alternative (modeled on an Eastern Neighborhoods approach) as a mechanism to secure affordable units within the plan area and noted redevelopment parcels along the former Central Freeway corridor expected to yield roughly 450 affordable units.
The CAC and many commissioners urged the department to develop clearer guidance for when parking conditional uses (CUs) should be allowed in the plan area, and to produce empirical evidence supporting CU approvals (e.g., financing or feasibility studies). Staff acknowledged the concern and offered to work with the CAC to prepare clearer parameters for CU consideration.
On transportation, staff highlighted projects moving forward with available funding: a Hayes Street two‑way conversion between Van Ness and Gough, and a Haight Street two‑way project to improve bus operations and save travel time. Staff also summarized work on bicycle improvements and an MTC grant for environmental review in the central corridor.
CAC vice chair Jason Henderson and other CAC members commended the planning process and urged the Commission to remain firm on inclusionary housing requirements; they recommended staff and CAC produce concrete, publicly available guidance on parking CU criteria and parking management approaches such as car‑sharing, parking unbundling and pilot compact‑car parking strategies. Commissioners supported continued CAC‑staff collaboration and asked staff to explore middle‑income ownership tools in addition to lower‑income inclusionary approaches.
Next steps: staff to return with a land‑dedication alternative proposal, to continue outreach and to work with the CAC on CU criteria and parking‑management research; MTA and other implementing agencies will proceed with select two‑way and bike projects funded through impact fees and other sources.
