Publications

San Francisco’s HOME-SF Density Bonus Program: Three Key Changes Important to Developers

8/2/2018 Articles

On July 31, 2018, San Francisco’s Board of Supervisors approved changes to the City’s local density bonus program, known as HOME-SF. Introduced by Supervisors Katy Tang and Ahsha Safai, the new ordinance seeks to induce more sponsors to participate in HOME-SF (rather than the state density bonus program) by making the program more flexible. 

Three key aspects of the new amendments likely to be of most interest to developers are tiered bonuses tied to a range of affordability requirements, expedited processing and approval of HOME-SF projects, and new appeal procedures that avoid the Board of Supervisors.

HOME-SF’s New Tiered System

Under the new changes, HOME-SF will now operate as a three-tiered system that ties height increases to the percentage of affordable housing provided by a project. Specifically, those projects that have submitted an Environmental Evaluation Application on or before December 31, 2019, and elect to use the HOME-SF program to increase density are provided with the following three options:

Tier One: A project providing 23% affordable units is relieved from all density controls – i.e. the project is limited only by other physical controls in the Planning Code, such as height, bulk, and setbacks.

Tier Two: A project providing 25% affordable units is eligible for the advantages of Tier One, plus a 10-foot (or one story) height bonus.

Tier Three: A project providing 30% affordable units is eligible for the advantages of Tier One, plus a 20-foot (or two story) height bonus.

The benefits provided by HOME-SF from a design standpoint also include exceptions to other physical controls, such as setbacks, rear yard, and dwelling unit exposure, but only if such exceptions do not increase the overall building envelope. 

New Rules on Expedited Processing

The new HOME-SF amendments also include enhanced priority processing. Prior to these amendments, HOME-SF projects were given priority status, but there were no deadlines imposed by the ordinance. Now, the HOME-SF program includes an expedited processing period with a specific deadline – the Planning Commission must hold a hearing on any HOME-SF project within 180-days from submission of a complete project application. The question remains what the remedy for project sponsors will be if the 180-day period is not met; the amendments are silent on that issue.

Changes to Appeals

An important aspect of the new HOME-SF amendments is a change to the appeals process. Prior to enacting these amendments, challenges to HOME-SF project approvals went to the Board of Supervisors for hearing; now, such challenges will go directly to the Board of Appeals. This provision also applies to any HOME-SF project that would otherwise require Conditional Use Authorization. Such projects will now be processed under a new Planning Code Section 328, which allows the Planning Commission to impose conditions but will not be subject to appeal to the Board of Supervisors.

Additional changes to the HOME-SF program are included in the new ordinance, and project sponsors are encouraged to carefully review the new procedures when considering whether to utilize HOME-SF for their project.

Firm Highlights

Publication

San Francisco Planning Commission Endorses Ordinances to Incentivize Adaptive Reuse in Downtown

The San Francisco Planning Commission unanimously recommended approval on May 4 of two ordinances aimed at revitalizing the City’s Downtown, South of Market Street, and Union Square districts. Vacant Office and Commercial Building Conversion...

Read More
Publication

Office-to-Housing Conversion: State and Local Efforts to Revitalize the Downtown

Originally published in The Registry . As office vacancies soar in traditional downtown areas like San Francisco’s Financial District, state and local officials are moving quickly to adopt incentives they hope will bring people...

Read More
Publication

California Court Issues First Decision Addressing Builder’s Remedy; Decision on Related Lawsuit Pending

The first California court decision to issue declaratory relief to a developer under the “builder’s remedy” appears to be on the horizon. The builder’s remedy has garnered significant attention over the past two years...

Read More
Publication

San Francisco Board of Supervisors Passes Housing Fee Reform Legislation

The San Francisco Board of Supervisors took the first of two votes to approve housing fee reform legislation last week. The legislation reduces by as much as a third the affordable housing fees and...

Read More
Publication

Housing Fee Reform Legislation

San Francisco officials have introduced a number of new policies they hope will jump start the construction of new housing in San Francisco, which has largely stalled due to high construction costs, rising interest...

Read More
Publication

Downtown San Francisco Adaptive Reuse Legislation Slated To Go Into Effect

As we alerted you on May 9 , legislation to incentivize office and commercial building conversions to housing had begun working its way through the Board of Supervisors after approval by the San Francisco...

Read More
News

Affordable Housing Outlook: What Challenges Will 2024 Pose?

Real estate partner CJ Higley provided expert commentary in the Multi-Housing News article "Affordable Housing Outlook: What Challenges Will 2024 Pose?" The article is available here .

Read More
Publication

AB 1633: The Housing Accountability Act

The Housing Accountability Act (HAA) requires local agencies to approve housing projects that meet objective zoning, general plan, subdivision, and design standards unless there is a specific, adverse impact upon public health and safety...

Read More