Committee advances code changes to require matching tenure and tighter deadlines for inclusionary housing

Supervisor Hillary Ronan introduced an ordinance to amend Planning Code Section 415 on Oct. 25, saying the changes are intended “to close significant loopholes and gaps in our planning codes requirements for affordable housing and new market rate residential development.” The Land Use and Transportation Committee voted to recommend the ordinance to the full Board.

Ronan told the committee the amendments aim to ensure below‑market‑rate (BMR) units match the tenure of the principal project — that is, rental BMRs in rental buildings and ownership BMRs in condominium projects — and to prevent developers from switching tenure or compliance methods after approvals in ways that delay or avoid on‑site affordable units. She cited two projects where post‑approval changes left promised on‑site affordable units vacant for years and said the city and residents suffered as a result.

Planning staff and the Mayor’s Office of Housing and Community Development (MOHCD) outlined three main components: clearer definitions of rental and ownership projects and a rule that BMR tenure match market‑rate tenure; a requirement that the Planning Commission hold a public hearing and make findings before approving post‑approval changes that would reduce on‑site or off‑site BMR units; and new timelines, marketing and monitoring requirements including deadlines for recording notices of special restrictions and for sponsors to submit pricing determinations to MOHCD.

Maria Benjamin of MOHCD said earlier notice to the city and housing counselors will help outreach and marketing. “Requiring a pricing request upfront… eight months out… is the tickler for when the marketing all starts,” she said, adding that the change will give housing counseling partners time to prepare and reach populations that have been underserved.

Ronan and planning staff described enforcement options, including withholding certificates of occupancy (TCOs) in cases where a sponsor fails to meet BMR marketing and recording deadlines. The presentation noted that marketing for affordable units often takes about seven months and that delays by sponsors can leave insufficient time to market BMRs concurrently with market‑rate units.

Public commenters supported the ordinance. Peter Papadopoulos of the Mission Economic Development Agency said the proposed timelines and Planning Commission reapproval would “significantly improve the outcomes.” Corey Smith of the Housing Action Coalition urged the committee to require that affordable homes come to market at the same time as market‑rate units.

On a motion to send the ordinance to the full Board with a positive recommendation, the committee recorded ayes from the three members present and the motion passed. The ordinance is scheduled to appear on the Board of Supervisors agenda on Nov. 2 unless otherwise stated.

Next steps: The item will go to the full Board for final consideration; the committee did not adopt additional substantive changes at this hearing.