San Francisco considers charter amendment for extended rent control on new housing projects

In a recent San Francisco County government meeting, discussions centered on a proposed charter amendment aimed at expanding rent control measures in the city. This initiative seeks to allow rent control on new housing projects that meet specific criteria, even in light of the Costa Hawkins Act, which previously limited such regulations.

For over fifty years, San Francisco has maintained rent control for units built before June 1979. However, recent findings revealed that rent control can still be applied to new developments through contractual agreements. This was previously demonstrated in projects like Park Merced and more recently with accessory dwelling units (ADUs) and multiplexes, which were included in legislation passed last week.

The proposed charter amendment would enable rent control for any project that does not face state preemption and allows for increased density and height. The rationale behind this approach is that today’s market-rate rents could become tomorrow’s affordable rents. A significant aspect of the amendment is the inclusion of a grace period of up to 15 years, allowing for a phased implementation of rent control, which aims to address concerns about immediate economic impacts.

Public comments during the meeting highlighted a mix of support and skepticism regarding the amendment. Some speakers emphasized the need for a comprehensive assessment of lost rent-controlled units, particularly in areas like Bayview-Hunters Point, where many units have transitioned to market rates. Critics argued that the proposed measures might deter developers from investing in new housing, as guaranteed returns could fall below inflation rates.

Supporters of the amendment pointed to the stabilizing effects of rent control on communities, noting that it helps maintain neighborhood character and allows residents to age in place. They argued that the amendment should be put to a public vote, allowing residents to weigh in on the future of housing policy in San Francisco.

As the board prepares to send the proposal to the full board for consideration, the outcome of this initiative could significantly impact the city’s housing landscape, addressing ongoing concerns about affordability and availability in a rapidly changing market. The discussions reflect a broader struggle within San Francisco to balance development needs with the preservation of affordable housing options for its residents.