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Committee backs one-year DBI fee-waiver pilot for 100% affordable projects and ADUs, seeks stronger ADU reporting

San Francisco Board of Supervisors  Government Audit and Oversight Committee · April 18, 2019
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Summary

Supervisors recommended a pilot to waive selected Department of Building Inspection fees for 100% affordable housing and accessory dwelling units (ADUs) for one year, with members seeking stronger reporting on ADU recipients— affordability and usage to ensure the subsidy supports intended households.

Supervisor Vallie Brown introduced ordinance language on April 18 to pilot a one-year waiver of specified Department of Building Inspection fees for 100% affordable housing projects and accessory dwelling units (ADUs). She said the waiver aims to reduce development costs and help small owners and affordable-housing projects proceed.

Brown described typical fee magnitudes: roughly $3,200 in DBI fees for a typical ADU and, for affordable housing projects, averages of about $150,000 for new construction projects (presented as estimates). DBI staff said they could help track some of the data but that additional agency coordination would be needed to capture applicant-level details and affordability outcomes.

Committee members supported the principle but asked for stronger reporting requirements to determine whether waived ADU fees produced affordable units, were claimed by individual owner-occupants or by corporations, or resulted in market-rate ADUs. Chair Supervisor Marr and other supervisors said they would work with the city attorney and DBI to draft amendments requiring DBI to report on ADU affordability, ownership type and whether ADUs are rented, owner-occupied or otherwise.

Public comment urged targeted subsidies and outreach to ensure fee waivers reach small owners and not speculative developers. The committee recommended the item to the full board with a positive committee recommendation and signaled amendments on reporting would be added at the full board hearing.

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