San Francisco housing development has slowed to a crawl, with no uptick in sight: ‘The costs are simply too high’
With new housing development in San Francisco slowed to a crawl, Mayor London Breed is looking into whether reducing affordable requirements or deferring fees might get residential building job sites up and running again.
On Friday, Breed’s office called for the reconvening of the “technical advisory committee” that is supposed to periodically revisit the city’s inclusionary affordable housing program — which requires market-rate developers to either include affordable units, pay a fee or dedicate land. The eight-person committee, which includes four mayoral and four Board of Supervisors appointees, has not met since February 2018.
Breed spokesman Jeff Cretan said that rising construction costs, high inflation and interest rates, along with a sluggish pandemic recovery “make it an absolutely appropriate time to look at our policies so we can ensure that we are building the most housing, including affordable housing, that is possible.”
Supervisor Aaron Peskin, who co-sponsored the most recent version of the city’s affordable housing mandates, said “it’s definitely time to reconvene” the committee.
The push comes as the city is seeing declines at all points in the housing production cycle. Fewer new buildings are opening. Active construction sites are way down. And applications for new projects are few and far between.
During the Planning Commission meeting on Thursday, city economist Ted Egan and Land Use Program Manager Joshua Switzky delivered a mostly grim outlook for future housing development as well as office occupancy in downtown San Francisco.
Edited by Victoria Watcher, 07 July 2022 - 02:09 AM.