Committee adopts amendments to let certain West Side projects opt into rent control in lieu of BMR units

The Land Use and Transportation Committee on Dec. 1 adopted a set of amendments to an ordinance that would let project sponsors outside specified priority equity special-use districts meet inclusionary-housing obligations by opting to subject all units to rent control or by dedicating land that can accommodate at least 35% of potential units.

Chair Supervisor Mirna Melgar described the provision as a voluntary fourth compliance option intended to encourage rental-unit production on the West Side, where homeowner‑occupied structures prevail and rental stock is scarce. Melgar said the option would be limited to certain residential and mixed-use neighborhoods, would bar subdivision or condominium conversion of units produced under the rent-control opt‑in, and would require the Planning Department and Rent Board to coordinate so new units are reflected in the housing inventory.

Vice Chair Cheyenne Chen noted trade-offs: rent-control opt-in yields market-rate occupancy at initial move-in and therefore does not provide on‑day-one affordability in the way below-market-rate (BMR) units do, and she urged starting modestly and ensuring replacement funding strategies are identified.

Planning staff Veronica Flores reported Planning Commission recommendations including (1) prohibiting condominium conversion of new units (to ensure they remain rentals) and (2) requiring that land-dedication alternatives accommodate 35% of the potential units that could have been provided on-site.

There were no public speakers. The committee voted 3–0 to adopt the amendments and send the ordinance to the full Board with a positive recommendation.

Next steps: item will be on the Board agenda for further action.