City supervisors on both sides of a debate over inclusionary housing requirements in San Francisco said Monday they are close to reaching a consensus.
Supervisors Aaron Peskin and Jane Kim are expected to compromise with Supervisor Ahsha Safai and Board of Supervisors President London Breed by next week after delaying a vote Monday on the requirements at the Land Use and Transportation Committee.
“I am optimistic that a week from today we will have a final consensual version,” Peskin said Monday, adding that they wrangled over details last week and through the weekend.
The two sides have competing proposals that will determine who is eligible for affordable housing in San Francisco and how much affordable housing developers are required to build.
“We have been negotiating aggressively, we are working toward a final solution,” Safai said. “We have a really strong probability of having a really strong consensus deal for all San Franciscans.”
It is anticipated that developers would build more housing in San Francisco but fewer affordable units under the proposal from Safai and Breed, according to the Controller’s Office. The opposite may be true under the proposal from Kim and Peskin.
The Controller’s Office released an economic impact report Friday that compared each of the proposals with current inclusionary requirements under Proposition C.
Passed last June, the ballot measure raised the percentage of affordable units that developers of projects with at least 25 rental units have to build from 12 percent to 25 percent, with 15 percent of units for low-income residents.
Safai and Breed proposed lowering the percentage to 18 percent, offering units at 55 percent, 80 percent and 110 percent of the area median income.
A single person earning 110 percent of AMI makes $88,750, according to numbers for 2017 from the Mayor’s Office of Housing and Community Development.
Kim and Peskin proposed lowering the percentage to 24 percent, with 15 percent reserved for low-income earners making between 40 and 80 percent of the AMI and 9 percent for moderate-income earners making between 80 and 120 percent of AMI.
According to the report, Safai and Breed’s proposal “leads to the production of more housing relative to Proposition C, and lower prices for existing housing, at the cost of reducing the number of affordable units.”
The report estimates that the proposal from Kim and Peskin would result in developers building 2 to 4 percent more affordable housing units than projected under Prop C.
In comparison, the report estimates that developers would build 5 to 8 percent less affordable units under the proposal from Safai and Breed.
The Safai and Breed proposal is also estimated to increase the total number of housing units built by 4.7 percent to 7.1 percent, while the Kim and Peskin proposal is estimated to decrease the number by 0.1 percent to 0.2 percent.
Peskin said the inclusionary housing requirements are expected to reach the Board of Supervisors for a vote May 23.