Georgia Shutish criticizes fees for smaller builders at San Francisco meeting

The San Francisco City Council meeting on July 4, 2025, highlighted significant concerns regarding penalties for non-compliance with the Below Market Rate (BMR) housing program and issues surrounding demolition permits.

During the meeting, a council member expressed frustration over the uniformity of penalties applied to small contractors and larger projects. They shared an example of a first-time builder who faced a daily fine of $250 for failing to comply with the BMR program. This penalty was the same as that imposed on a much larger project with multiple units out of compliance, raising questions about fairness and proportionality in the enforcement of regulations. The council member emphasized the need for a differentiated approach to penalties based on the scale and experience of the project sponsors.

Additionally, discussions included concerns about the lack of thorough investigations into demolition projects that resulted in the loss of livable units. A specific case involving a project at 20 First Street was mentioned, where the absence of demolition calculations raised alarms. The council member called for more in-depth reviews of such cases to prevent future occurrences and ensure accountability.

The meeting concluded with a call for better oversight and a more nuanced understanding of the impacts of penalties and regulations on different types of projects. The council aims to address these issues in future discussions to foster a more equitable development environment in San Francisco.