Rules Committee backs appraisal waiver for some affordable‑housing jurisdictional transfers

The Rules Committee voted to forward an ordinance asking to waive Chapter 23 appraisal‑update requirements for certain interdepartmental jurisdictional transfers that convey real property for 100% affordable housing. The committee moved the item to the full Board with a positive recommendation.

Lee Hepner, legislative aide to Supervisor Aaron Peskin, described the ordinance as follow‑up to earlier 2016 policy that revised appraisal-review rules, and said the change would allow transfers between city departments to proceed without a duplicative updated appraisal when a property is transferred at no cost for affordable housing.

Amy Chan of the Mayor’s Office of Housing and Community Development told the committee that interdepartmental transfers from non‑enterprise departments (for example DPW) frequently occur at no cost and an updated appraisal typically does not change the purchase price but does add time and cost. John Updike, Director of Real Estate, said appraisals generally take 30–45 days (potentially 60 for complex projects) and reviews add another 15–30 days; he estimated appraisal and review costs at roughly $5,000–$10,000 per appraisal. He said the waiver would not prevent an appraisal later if financing or tax‑credit applications require an updated valuation; lenders or developers would typically commission those appraisals.

Supervisor Yee moved to forward the ordinance with a positive recommendation, saying the waiver could prevent retroactive approvals and speed affordable‑housing projects; the item was ordered without objection.

The ordinance will now go to the full Board of Supervisors for consideration.