After several weeks of delays, on September 13 the City Controller released a study assessing the impacts of Prop C’s increases in the affordable housing percentage requirements for market rate developments.
Whereas Prop C increased the required set-aside rate from 12 to 25 percent, the study recommends setting an initial on-site requirement of 14 to 18 percent for rental projects and 17 to 20 percent for ownership projects. The study, authorized by the Board of Supervisors in trailing legislation contingent on voters’ approval of Prop C in June, directed the Controller to assess the economic feasibility of current and increased inclusionary housing requirements under Prop C, and make recommendations in an advisory report. The Board of Supervisors will now consider the recommendations in setting the City’s inclusionary housing requirements.
The study also recommends setting a schedule for incrementally increasing the inclusionary housing rate by .5% annually and phasing in the requirements over a 15 year period, with a study every 5 years. The City Controller and the Technical Advisory Committee—a group of affordable housing developers, advocates, community representatives, lenders, and real estate developers appointed by the Mayor and Board of Supervisors—unanimously endorsed these recommendations.