A Mercy Housing California site at 280 Beale St. is one of three units developed last year under the Office of Community Investment and Infrastructure. Six of the available 69 affordable units at the site were filled with people who hold a certificate of preference. (Jessica Christian/S.F. Examiner)

Final SF inclusionary housing report recommends split requirements for rentals, for-sale properties

San Francisco is moving closer to establishing new affordable housing requirements in certain developments — also called inclusionary housing — with the final recommendations for setting the mandate released by the Controller’s Office on Monday.

Currently, developers in San Francisco must include a certain number of affordable units on or off-site in the project, or pay a fee that is then used by The City to build affordable housing.

SEE RELATED: SF’s inclusionary housing rates look for ‘sweet spot’

Per the “Inclusionary Housing Working Group: Final Report” — created with input from a Technical Advisory Committee that included representatives appointed by the mayor and Board of Supervisors — The City should establish different affordable housing requirements for rental and for-sale properties.

Rental properties should include 14 to 18 percent affordable housing onsite, and ownership projects should include 17 to 20 percent, according to the report. There’s also a recommended fee option at 18 to 23 percent for rentals, and 25 to 28 percent for ownership.

Additionally, the report recommends The City commit to a 15-year schedule of 0.5 percent annual increases in the inclusionary housing rate, among other things.

The report followed the June 2016 passage of Proposition C, which requires developments with at least 25 homes to include 25 percent of those units at below market rate, including 15 percent for low-income residents and — for the first time — 10 percent for middle-income residents.

Prop. C also returned authority from voters to the Board of Supervisors to change inclusionary housing requirements and mandated the City Controller conduct feasibility studies of affordable housing requirements if and when the board adjusts the 25 percent inclusionary housing rate.

The Controller’s Office report released Monday may be used by the mayor and supervisors to prepare related legislation mandating certain affordable housing requirements.Planning

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