Board adopts revised determination to prioritize lottery buyers and set all eight BMRs at 55% AMI for 1145 Polk Street conversion

The San Francisco Board of Appeals on Wednesday approved an amended Letter of Determination for a 54-unit mixed-use building at 1145 Polk Street, resolving how a developer may convert a project from rental tenure to ownership while preserving affordability for the project’s eight on-site below-market-rate (BMR) units.

Attorney Scott Emblidge, representing one of the appellants, presented a redlined document negotiated with the developer’s counsel and city staff. The revision requires that all eight BMR units be offered at 55% of area median income (AMI) to eligible applicants on the existing lottery list. If the lottery produces fewer than eight eligible buyers, leftover units may be sold to the general public at 90% AMI with restrictions (and limited to studio size in the fallback scenario described). Aaliyah Gage of the mayor’s office of housing told the board the inclusionary restrictions would be deeded for the life of the project and that resale restrictions attach to the units to preserve affordability over time.

Zoning Administrator Corey Teague and planning staff said the revised language had been reviewed by city offices and was acceptable under the code and procedures that govern conversions of tenure. Project counsel said the compromise pushed the owner as far as feasible and that state law constrained additional conditions after pre-application. Some appellants said the negotiations left one lottery participant dissatisfied; the board acknowledged that tension but said the arrangement represents a substantial increase in affordability compared with the initial determination.

The board granted the appeals and adopted the revised Letter of Determination on the condition the redline be incorporated into the final document, finding the zoning administrator’s prior affordability decision should be revised accordingly. The vote was 5–0.