PRO & CONS – PROPOSITION C – JUNE 7, 2016

PROPOSITION C – AFFORDABLE HOUSING REQUIREMENTS

Charter Amendement

Placed on the ballot by the Board of Supervisors

Requires a simple majority of votes for passage

 

 

THE QUESTION:

Should the Board of Supervisors be authorized to update the Charter on inclusionary or affordable housing obligations for new housing development projects and authorize the Board of Supervisors to make changes to affordable housing requirements by ordinance?

BACKGROUND:

Over the past 10 years, San Francisco has built 4,300 units of affordable housing and has lost 3,200 housing units due to Ellis Act evictions and short-term rental speculation. Average rents continue to increase, with median rent for a one bedroom at $3,500 a month.

In response to the housing crisis, San Francisco voters passed The Affordable Housing Goals Declaration of Policy (Prop K) in 2014 and the Affordable Housing Bond (Prop A) in 2015.

Under current inclusionary or affordable housing laws, developers are required to either pay a fee for affordable housing units equal to 20% of the total units developed, create at least 12% of on-site housing for low-income families, or create off-site affordable housing units equal to 20% of the total units on the main development site. These requirements may be modified only by voter amendment of the Charter.

 

THE PROPOSAL:

This measure would amend the Charter to allow the City to change the minimum or maximum affordable housing obligations by ordinance and adopt definitions for affordable housing programs. Until the Planning Codes are amended by ordinance, Proposition C would set the following obligations for housing developments with more than 25 units as follows:

  • Fee increases for affordable housing calculated at 33% of the total units developed,
  • On-site affordable housing increased to 25% of the total units, with 15% for low income and 10% for middle income households, or
  • Off-site affordable housing increased to 33% of the total units on the principal project, with 20% for low income and 13% for middle-income households.

 

Under these proposed amendments the City would be able to meet housing needs across a broad range of household incomes, family sizes, and neighborhood conditions. The City would be allowed to set new fee calculations based on building types and set policies on converting conversion of rental units to ownership units.

A “YES” Vote Means:

You authorize the City to update inclusionary and affordable housing requirements for new housing development projects.

 

A “NO” Vote Means:

You do not authorize the City to make changes to the existing law.

ARGUMENTS IN FAVOR PROP C:

 

  • Proposition C will have an immediate impact on the housing crisis by requiring new housing developments to have a greater supply of low and middle income housing.
  • This measure is the first to propose affordable housing for middle-income families.
  • Proposition C allows the Board of Supervisors to adjust the affordable housing requirements either higher or lower, based on future economic conditions. This will ensure that the City can produce the maximum number of economically feasible affordable housing units.

ARGUMENTS AGAINST PROP C:

  • Proposition C will reduce the overall amount of housing built and increase displacement of residents.
  • Creating additional affordable housing will increase the cost of market-rate units.
  • San Francisco residents will pay higher rent to off-set the increases in construction fees and increased obligations by this measure.

READ PROPOSITION D