San Franciscos Inclusionary Housing Program

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San Franciscos Inclusionary Housing Program
Urban Studies 680

• James Akin
• CheyAnne Brown
• Aryeri Calderon
• Michael Schnell

Spring 2007
Client San Francisco Planning Department, Teresa
Ojeda
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What is Inclusionary Housing?

• A Program That Provides Affordable Units
• Percentage Varies By City
• Program Guidelines Vary By City
• Affordable Units are Available to Those with
  Income Restrictions

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Outline

• Objectives
• History
• Research Methods
• Findings
• Recommendations

Photography Aryeri Calderon
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Objectives

• Analyze San Franciscos Inclusionary Housing
  Program
• Survey Developers Participating in the Program
  from 1992-2007
• GIS Analysis of Developers Choices
• Analysis of Survey Data

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History

• 1992 Inclusionary Housing Program Created
• - Worked On
  Case-By-Case Basis
• - Incentive
  Based
• 2002 Becomes an Ordinance
• - Program is Adopted
  Into SFs Municipal Code
• - 10 Units or
  More 10 Affordable Units
• 2006 Amended
• - Stronger
  Regulations
• - 5 Units or
  More 15 Affordable Units

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Application Process

• Potential Homeowner Locates Available Units
• Application
• Applications Reviewed by Developer
• Lottery Held for Units
• Loan Process Completed by Potential Homeowner

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Income Restrictions
Income based on Area Median
Source Mayors Office of Housing
Photography Aryeri Calderon
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Research Methods

• Literature Review
• Developer Survey
• GIS Mapping
• Analysis of Data with SPSS

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Literature Review

• If Inclusionary Housing had been adopted in 1980
  throughout the nations 100 largest metropolitan
  areas, it would have generated more than 3.6
  million low- and moderate-income units by 2000.
  (Housing Policy In United States)
• An Inclusionary Housing law must be a win/win,
  helping meet both the communitys need for
  workforce housing and protecting the private
  homebuilders profitability. (Nine Lessons for
  Inclusionary Housing, David Rusk)

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Comparative Matrix
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Two Lists of Developers

• 1.) From Mayors Office of Housing (117
  developments)
• - No Contact Information
• - Useful For Analysis
• 2.) From Planning Department (258 developments)
• - Useful Contact Information
• - Used For Survey

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Mayors Office of HousingDevelopment List
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Survey Design

• Started with 258 Contacts
• Eliminated Duplicate Contacts
• Contacted Remaining 109 records
• Each Group Member Surveyed approx. 25
• Used Phone, E-mail, Website, and Fax
• Received Total of 7 Responses

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• Developers Survey
• Hi, my name is __________, and I am a
  senior in the Urban Studies program at San
  Francisco State University. For my senior
  project I am analyzing San Franciscos
  Inclusionary Housing Program and would like to
  ask you a few questions. Would you be the
  appropriate contact, or would there be someone
  that would be better able to respond. Is this a
  good time?
• What is the name and address of the
  currant or most recent project that your agency
  is working with?
• How many units? How many inclusionary
  units?
• As you know, there are three choices
  available to you when you applied for a building
  permit, which option did you chose and why?
• On-Site
  Off-Site In-Lieu Fee
• Was this the most feasible option for this
  project? Yes
  No
• Would you choose this option again? Yes
  No
• Have you worked on other projects where
  you have chosen a different option to fulfill the
  inclusionary housing requirement?
• Yes No If so, ask about at end of
  survey of project first.
• What is your opinion of the inclusionary
  housing requirement?

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Developer Survey Results
Total Contacted 109 Responses 7
14
0
86
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Findings

• Marketing of Units
• Communication between Planning Department and
  Mayors Office of Housing
• Developers would not participate in Inclusionary
  Housing if it was not mandatory
• Developers have chosen to build their affordable
  units on-site
• 80 from Mayors Office of Housing
• 86 from Developer Survey
• Program regulation percentages high compared to
  other cities

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Developers Comments

• On-site Inclusionary housing is being chosen for
  political reasons.
• Great idea, but projects infeasible which
  discourages development.
• Discourages rental housing which the city sorely
  needs.
• In-lieu fee is cheaper in the long run.

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Recommendations

• Mandatory On-site
• Liaison between MOH and Planning Department
• Assure proper interaction
• Help with Efficient Record Keeping

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References

• Nine Lessons for Inclusionary Zoning, Keynote
  Remarks of David Rusk to the National
  Inclusionary Housing Conference, Washington DC,
  10/5/2005
• Common Interest,Issue Brief 4, Inclusionary
  Housing in Montgomery County, MD
• Fairfax County Zoning Ordinance, article 2
  (General Regulations), part 8 (Affordable
  Dwelling Unit Program.)
• Chicago Department of Housing.
  lthttp//cityofchicago.orggt
• San Francisco Planning Department Plan Element
  Housinglthttp//www.sfgov.org/site/planning_index.
  asp?id41412gt
• San Diego Housing Commision. http//www.sdhc.net/g
  iinclusionaryhousing.shtml
• Schwartz, Alex F.. Housing Policy in the United
  States. 1st. NY Routledge, 2006

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Thank you!