Panel advances change to student-housing master-lease term from five years to two

The Land Use and Transportation Committee forwarded an ordinance to the full Board that would amend the Planning Code to reduce the minimum master-lease term for student housing from five years to two years.

Andres Powers, representing Supervisor Scott Wiener’s office, said San Francisco faces an estimated shortfall of roughly 40,000 student beds and argued that the five-year master-lease requirement has been a barrier for smaller institutions. Powers said the ordinance does not change the existing prohibition on converting existing general-population housing to student housing and emphasized that if a student-housing project later reverts to market-rate use, the project would remain subject to inclusionary-housing requirements and related fees and interest.

Planning Department representative Aaron Starr reminded the committee that compliance is enforced through annual reporting under penalty of perjury and that planning retains enforcement authority for projects it originally entitled. Supervisors probed how enforcement works in practice and whether the two-year term might create a higher conversion risk; Powers and Starr said smaller institutions use master leases and that the shorter term aims to encourage their participation while preserving the conversion and fee requirements.

Tim Cohen of the Housing Action Coalition testified in support, saying smaller schools had told coalition staff they found the five-year commitment too risky and that a two-year option could spur more development.

Supervisor Paskin moved to forward the ordinance to the full Board with a recommendation; the motion passed without objection.