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Committee backs amendments to steer small-project affordable-housing fees into local small-sites acquisitions
Summary
Supervisors recommended that fees from smaller market-rate residential projects be eligible for small-sites acquisition funding, with two amendments: limit use to the impacted neighborhood (not a 1-mile radius) and clarify eligibility to 24-unit projects to align with Prop C; MOHCD reported the small sites program has preserved 78 units to date and has $51.5M invested.
Supervisor David Campos and Mayor Lee jointly sponsored an ordinance to let developers of smaller market-rate residential projects direct inclusionary housing fees into the city’s small sites acquisition program so fees remain in the neighborhoods where development occurs. Campos offered two amendments: require fees be used within the immediate neighborhood (rather than the current 1-mile radius) and change eligible principal projects to 24 units rather than 25 to align with Prop C affordability tiers.
Ruby Harris (Mayor’s Office of Housing and Community Development) outlined the small sites program’s record: established in 2014, it has funded acquisition and rehabilitation of 13 buildings preserving 78 units, with nine additional buildings pending that would bring the program total to 132 units and an aggregate of $51,500,000 in city investment. Harris said the program stabilizes long-term tenants, including households facing Ellis Act proceedings.
Planning Department staff (Diego Sanchez) told the committee the planning commission unanimously recommended the ordinance with modifications reflected in the proposed amendments. Public commenters representing land trusts, community housing organizations, developer groups, and nonprofit affordable housing developers praised the approach as an effective anti-displacement tool and asked for clarity on neighborhood definitions and implementation rules. Diverse speakers—including the San Francisco Community Land Trust, Chinatown CDC, Mission Economic Development Agency, and the Residential Builders Association—expressed broad support while flagging practical questions about implementation and program guidelines.
Supervisor Peskin moved and the committee voted to advance the ordinance as amended to the full Board with a favorable recommendation. The committee record includes requests to staff to align program guidelines (for example, MOHCD grant rules and accessory-unit treatment) to avoid perverse incentives during acquisition and rehabilitation.
