Kate Connor reviews California housing laws impacting San Francisco planning processes

The San Francisco City Council meeting on July 4, 2025, featured a comprehensive presentation by Kate Connor, the housing implementation program manager from the planning department. The focus of her presentation was on recent state housing legislation, particularly the state density bonus law, SB 35, AB 2011, and the Housing Crisis Act (SB 330).

Connor began by outlining the state density bonus law, which was established in 1979 to incentivize the development of affordable housing. This law allows projects with five or more residential or mixed-use units to receive a density bonus if they include affordable units on-site for at least 55 years. The amount of the density bonus is contingent upon the number of affordable units provided, with additional incentives available to reduce project costs.

She emphasized that the city's discretion in approving these incentives is limited. The city can only deny requests if they do not lead to cost reductions or pose specific adverse impacts on public health or safety. Connor also discussed the intersection of the state density bonus with San Francisco's inclusionary housing program, explaining how the city applies affordable housing fees to projects that qualify for density bonuses.

The presentation then shifted to SB 35, which provides a streamlined, ministerial review process for housing projects that meet certain affordability criteria. Connor noted that while San Francisco is meeting its housing production goals for above-moderate income units, it is falling short for units affordable to those earning below 80% of the area median income (AMI). SB 35 aims to expedite the approval process for projects that meet these affordability thresholds, eliminating the need for discretionary entitlements and CEQA review.

Connor also introduced AB 2011, which is set to take effect in July 2023. This legislation offers a similar ministerial review process but with different eligibility criteria. It allows for the development of both 100% affordable and mixed-income projects, with specific requirements for each. Notably, AB 2011 permits the demolition of existing housing and has fewer labor provisions compared to SB 35.

Finally, Connor discussed the Housing Crisis Act (SB 330), which aims to expedite housing development by suspending certain restrictions and streamlining the permitting process. This act includes provisions for replacing and relocating units that are demolished as part of new developments, ensuring that the number of housing units remains stable.

In conclusion, the meeting underscored the city's ongoing efforts to address its housing crisis through state legislation that promotes the development of affordable housing while navigating the complexities of local regulations. The planning department's implementation strategies for these laws will be crucial in shaping San Francisco's housing landscape in the coming years.