Board Splits on Broderick Street Merger; Permit Upheld by Operation of Law

The Board considered a complex appeal of a consolidated permit and a dwelling-unit merger application at 2853 Broderick Street, a property with a lengthy history including fire damage, a 2011 rehabilitation plan, multiple enforcement notices and subsequent permit revisions.

Neighbors said the merger would permanently remove a rent-controlled unit and argued the application failed to meet updated Planning Code Section 3.17 merger criteria, including appraisal timing and affordability thresholds. Appellants emphasized policy changes and mayoral directives intended to prevent loss of affordable housing.

Permit-holders and their counsel argued substantial compliance with statutory requirements, noting Planning Commission discretionary review and a certified appraisal prepared Dec. 2, 2013 that, by the sponsors' appraisers calculations, showed the least-expensive unit exceeded the administrative-review threshold for being "demonstrably not affordable." A certified appraiser testified and explained three appraisal iterations (as-is, subject-to-completion, and an October 9 hypothetical to fit the six-month window) all exceeded the threshold applied by Planning staff.

After deliberation the Board considered a motion to deny the appeal (uphold the merger) but the vote was 2-2 and the motion failed to carry; under procedure the permit was therefore upheld by operation of law. Commissioners expressed differing views on strict six-month appraisal timing vs. administrative flexibility when departmental processing delays occur. The action leaves the consolidated permit intact and signals the Boards deference to Plannings administrative-review determinations in close valuation cases.

Speakers included appellant counsel Steve Williams, permit-holder counsel Eileen ****, certified appraiser Roger Ostrom and Planning staff Scott Sanchez. The item was heard as Item 9 on the April 29 agenda.