Planning commission approves bedroom addition at 860 Folsom with $13,562.72 in-lieu affordable-housing fee

The Planning Commission approved on March 8 a conditional-use authorization under Planning Code Section 263.11 to allow a fourth-floor bedroom addition at 860 Folsom, increasing the building height from 40 to about 50 feet and adding roughly 500 square feet.

Planning staff recommended approval with conditions and proposed an amendment to require a proportional in-lieu fee to contribute to neighborhood affordability. Staff recommended—and the project sponsor accepted—an amended condition that removed the word “voluntary” and required the property owner to pay an in-lieu fee of $13,562.72 to the South of Market Stabilization Fund.

Michelle Glueckert, Planning Department staff, explained that under Section 263.11(e) the commission may impose conditions when granting a height exception, and that the Western SoMa Citizens Planning Task Force and the property owner had reached an agreement on the fee. Applicant John Strickland described the addition as a modest bedroom expansion designed to keep a family in the South of Market neighborhood and said neighbors and the task force supported the proposal.

Commissioners discussed the policy purpose of RSD (Residential Service District) zoning—how height exceptions relate to public benefits such as affordability—and asked staff for more information about how the stabilization fund is administered.

The motion to approve the project as conditioned passed unanimously.

Next steps: the owner will pay the in-lieu fee and planning staff will proceed with conditions monitoring and building-permit processing.