Committee backs development agreement to advance 98 Franklin project and dedicate land for 100% affordable housing

SAN FRANCISCO — The Government Audit and Oversight Committee on July 13 voted to send to the full Board of Supervisors a development agreement intended to unblock a stalled mixed‑use project at 98 Franklin Street and to secure new affordable housing sites nearby.

Chair Dean Preston moved the committee report, which passed on a 3‑0 vote, sending the ordinance and accompanying development agreement to the full board. Preston described the package as “a rare quadruple win” that he said would produce a new high school site, add up to 671 homes across three projects and dedicate land for 100% affordable housing.

The agreement modifies prior 98 Franklin approvals to vest entitlements for a principal project described in the presentation as a roughly 400‑foot building that would include a five‑story campus for the French American International High School and about 385 housing units. The package also designates 600 McAllister Street to be conveyed to the city at no cost to fulfill affordable‑housing obligations; that site already has entitlements for 196 units. The developer would direct $1,000,000 in affordable‑housing fees to an existing Parcel K project in Hayes Valley to fund predevelopment work.

Leigh Lutensky, deputy director of joint development at the Office of Economic and Workforce Development, told supervisors the agreement “primarily enables the developer to dedicate a parcel of land to fulfill their affordable obligation… and directs $1,000,000 of affordable fee payments to the 100% affordable Parcel K project in Hayes Valley.”

Preston and OEWD staff said the three‑site package also includes projects at 600 McAllister and an earlier Van Ness site, with the move to 600 McAllister increasing the affordable‑unit entitlement by up to 28 additional units compared with the previously announced property. Preston said two of the three sites would be 100% affordable and that reallocating the parcels would bring additional affordable housing closer to the market‑rate site.

The clerk’s item description noted the ordinance would waive certain provisions of Administrative Code Chapter 56, adopt findings under the California Environmental Quality Act and find conformity with the general plan and Planning Code provisions cited in the file. The committee did not take public testimony in person on the item; the clerk reported callers were queued but no in‑chamber speakers addressed the item before the committee voted.

The committee vote: Vice Chair Katherine Stephanie, Supervisor Connie Chan and Chair Dean Preston each voted “Aye,” carrying the motion to forward the item to the Board of Supervisors for consideration on the July 18 agenda unless otherwise noted.

What’s next: The item will appear on the full board agenda for further consideration and final action. City staff said the land dedication of 600 McAllister is required before the principal project can obtain its site permit addendum and proceed to construction.