San Francisco’s “Housing Fee Reform Plan” Passes at Board of Supervisors, Awaits Mayor’s Signature

On September 5, the San Francisco Board of Supervisors finally passed on second reading two pieces of legislation, together referred to as the “Housing Fee Reform Plan.” The Plan, previously discussed on July 7, July 21, and July 31, plays a key role in implementing Mayor Breed’s “Housing For All” Executive Directive, reducing inclusionary housing requirements and development impact fees for both new and pipeline projects. The Plan also reactivates an expired fee deferral program, establishes a stable, 2% fee escalation rate, and locks in impact fee types and rates at the time of project approval.

The Inclusionary Housing Technical Advisory Committee (the “TAC”), together with the Controller, analyzed the feasibility of the City’s inclusionary housing requirements and provided a report informing the Plan’s new, reduced inclusionary housing requirements. Under the legislation, the TAC is required to convene again no later than January 1, 2026.

Although there is optimism that the Plan will help jumpstart both new and stalled housing projects, multifamily development feasibility still largely depends on market forces outside of City control, such as interest rates and construction costs.

The Mayor has 10 days to sign the Housing Fee Reform Plan, and the ordinances become effective 30 days thereafter.