Board overrules three zoning determinations in Mission inclusionary housing dispute; asks for findings and negotiations over in‑lieu payment

The Board of Appeals on Dec. 13 voted 4‑1 to overrule three zoning administrator determinations that certain Mission parcels should be treated as a single, phased housing project subject to the city’s inclusionary housing requirement. The appeals centered on whether near‑adjacent parcels that had been filed under consecutive permits — and that at one time had a conditional‑use filing for a consolidated project — should be counted together for the affordable‑housing obligation.

Zoning administrator Larry Badner argued the filings and earlier consolidated CEQA review supported treating the sites as a phased development and therefore triggering an inclusionary unit or in‑lieu payment. Appellants’ counsel Jared Igerman and permit‑holder counsel Brett Gladstone countered that the lots are not contiguous now, ownership changed, and there are no economies of scale or financing benefits typical of a single consolidated project. Commissioners wrestled with changed code thresholds (the in‑lieu trigger dropped from 10 to 5 units in July 2006), legislative intent, and fairness to later purchasers.

After debate, the board overruled the three determinations 4‑1 and directed that adoption of formal findings be prepared and filed later. During deliberations several parties signaled willingness to negotiate a voluntary in‑lieu payment; counsel for the project sponsors said their clients would consider a shared payment to the Mayor’s Office of Housing if the board agreed to overturn the determinations and adopt narrowly tailored findings.