Board grants dwelling‑unit merger at 2037–2039 Jefferson, orders utilities capped on second kitchen

The San Francisco Board of Appeals on Oct. 20 granted a dwelling‑unit merger (DUM) for 2037–2039 Jefferson St., allowing the property owners to convert two dwelling units into a single-family residence subject to a utility‑capping condition.

Planning staff had recommended denial because the project sponsor initially indicated the upper unit was rented (not owner-occupied), the application did not meet the code’s owner‑occupancy finding, and staff found no severe functional deficiency that would necessitate a merger. Scott Sanchez of the Planning Department explained that the property’s assessed value also placed it short of the section 3.17 threshold that could have exempted the proposal from discretionary review.

Michelle Banks, on behalf of the owners, said they intend to owner‑occupy the property following the merger, presented neighbor support letters and said the upper unit is a short‑term tenancy. Commissioners questioned whether the unit was in use, whether the unit was functionally deficient and whether capping utilities would preserve the option for the property to be converted back to two units.

The board overruled the department’s denial and voted to grant the permit on the condition that the second kitchen’s utilities be capped and maintained so the unit could potentially be re‑established later. Commissioners directed staff to draft findings to support the board’s action; the vote was 4–0.

Why it matters: Dwelling‑unit mergers reduce housing stock; the board exercised discretion after finding the department’s rental‑protection rationale did not apply in this instance.

What’s next: The permit will be granted with conditions; formal written findings will be prepared after the hearing.