Developers cleared to switch to temporary reduced in‑lieu inclusionary fee; commission declines discretionary review of added stair penthouses

The Planning Commission on Oct. 26 approved a sponsor’s request to change the elected method of inclusionary compliance for the 770 Wolsey development from on‑site below‑market units to payment of an in‑lieu fee. Planning staff noted the project is a pipeline project and will be eligible for the temporary reduced in‑lieu fee that takes effect Nov. 1 (estimated ~16.4%), lowering the sponsor’s immediate affordability obligation compared with prior code requirements.

At the same hearing a member of the public filed a discretionary review asking that newly added stair penthouses—enclosures added late in site‑permit review to protect roof‑deck stairs from water intrusion—be removed or reconfigured. Neighbors said the penthouses altered the previously approved clean gabled massing and would be visible from Wayland Street and could block light and air. The sponsor said waterproofing and durability concerns (after heavy rain last winter) and contractor consultants led to the change; the team designed stepped back, sloped penthouses and sunken roof decks to minimize visibility.

Commission action: Commissioners approved the sponsor’s switch to the in‑lieu fee and voted not to take discretionary review of the stair penthouses. Commissioners urged the sponsor to continue outreach and explore hybrid on‑site/off‑site compliance possibilities where feasible. Both actions passed unanimously (6–0).

Why it matters: The decision lets the project utilize a temporary reduction in inclusionary requirements intended to revive stalled projects in the current construction/finance market; it also resolved a neighborhood design dispute by accepting technical mitigations (setbacks and sloped roofs) for stair enclosures.

Key vote: Motion to authorize the in‑lieu fee and to decline discretionary review passed 6–0 (Commissioners Braun, Diamond, Imperial, Coppell, Moore, President Tanner: aye).

Outcome and next steps: Sponsor plans to finalize first construction documents and coordinate BMR unit marketing with MOHCD; commissioners requested continued discussion with neighborhood groups about affordability options and community benefits.

Representative quote: “We can certainly look into a hybrid. If the fee is authorized today, a developer can go from fee to combination administratively,” a planning staff member said, encouraging the sponsor to continue exploring options.