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that included formerly skeptical de,/eiopers. A
<br />detailed economic analysis of the po[entiai
<br />impact o1: a citywide ordinance convinced de,/e!-
<br />poets that the,/would be ~bje ~o do ousiness
<br />under the new [aw. '
<br /> The program. The oroinance requires
<br />residential de,/ei, opments of ten ,ar more units
<br />~o include a to percent affordaD[e housing
<br />component. The FUA is exempt ;:rom the
<br />,vide ordinance and will ,:an[inue to adhere
<br />[he ~992 FUA inclusionan/zoning frameworK.
<br /> Neither the [992 FUA inclusionary zoning
<br />ordinance or ~he 2003 citywide ordinance pro-
<br />',/ides de,/elopers ,Nith incentives or cost offsets
<br />~or buiidin§ affordaP[e units. The ,:ih/opted to not
<br />
<br />mad(et. ~he architects o(tlqe !aw were concerned
<br />that it might L{enerate substantial ~ees and little
<br />affordable housing, but db/staff are thus far
<br />pleased with ~he performam:e of ~he ordinance
<br />and say it has apl stifled de,/eiopmen{.
<br />
<br />Background. m tog2. S~n Francisco ~daoted a
<br />~imited JndusionaE/housJ~ )to,ram ~o
<br />~he 5hoKa~e of 3ffor~aoie housJn~ ~or
<br />and ~ow-income ~esidents. The ~99~ ordinance
<br />applied oniy ~o pianned unit developments
<br />(PUDs) and proiects re~uifln~ a conditional usa
<br />permit, neither o~which affeczed a substantial
<br />amoun~ of residential development in ~he city.
<br />
<br />zo percent of all new rental ]nd ,%r-sale
<br />dwelling ;n~ts For households earning' 85 per-
<br />,:eh{ nf the area meaian income (AMI).
<br />[)e,/eiopers nu%~ build a(fl)rdabJe uni[s
<br />because payment pta fee-indieu ~ not an
<br />uprion. ~ccordimj ~o '~an Diego planner 8iii
<br />L.~,/in, 'he FUA'~ mclusmnarv ~onin~ grogram
<br />
<br />:he ~:i JA. 7he ::',tV estirnates chat :..:po
<br />
<br />;:iOH;il irfolH~ibie 'Jnl~s ,,nil nt~ :3roduc~,J be(ore
<br />
<br />7~!e )rq~nl]llC:~ ,vas oas,?] ,)/1
<br />
<br />7UA pro,mm, me :'lsim( Jemana for 7, ffordaole
<br />
<br />offer cost offsets, such as fee waivers or density
<br />bonuses, because de,/e!opers can easily cover
<br />the cos[ of affordable units ~hrou§h the sale of
<br />mad(et-rate units, according to an economic
<br />anaivsi;s conducted for the housing commission.
<br /> Developers ,:an ,)pt to make a fee-m-lieu
<br />payment, Nhich is based on the _~ouare
<br />footage o( 3n .sffordab[e unit ::omoared ~o
<br />'~ros5 square footage of the entire projec~
<br />Upon .approval from the plan <ommission ]nd
<br />the city .:ouncfi. ~he inciusmnary housing
<br />requiremen[s atso ,:an be satisfied by provid~
<br />!n~ :he same ,lumber ]( units at snother si~e
<br />,vithm the same ,:ommunitv :_,-iannifl~ ~re~.
<br /> T~e result. Under ;he c:[vwide ~aw, zoo
<br />~ol'daole Jflit5 .are ,n qhe .Je,/e!oomen[
<br />:~ce!ine. and ~.oo.ooo ;n ]ges .sas been :oi-
<br />e.z:.?2. :~e,i2, use :,r lne 'COL]S[ ~:,-~li
<br />
<br /> in January 2oo2, the [nclusianary zon-
<br />ing ordinance ,Nas expanded [o include all
<br />residential proiects of ten units or more,
<br />mciudin§ ![ve-work dnits. Ti~e pro§ram's
<br />expansion came in response to the on§Pin§
<br />affordable housing crisis and political ores-
<br />sure ¢rom ,:ommunitv :Stoups :oncerned
<br />a0ou[ [t-he ,]isoiacement af ~owqncome
<br />households as a consequence ~o risin~
<br />property values and dnattainabie [ive-,,vork
<br />uni{5. Lb/e-work units s~ar[in~ at S;oo,ooo
<br />:.n the m[d-tg9os nad ~'e~cned 37oo.ooo
<br />;he end at(he ~ecade.
<br /> The program. Unoer ~he new 3rdinanc~.
<br />
<br />3pment )r ~en or more :sniPs
<br />
<br />iONING PRACT]Ci '.o.0,,
<br />
<br />
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