San Francisco voters approved Prop. C, a ballot measure that will more than double the city’s affordable housing requirement for new housing projects.
Housing developers and their supporters are now bracing for how to make future developments financially feasible in a city where building housing is already costly and takes several years.
“In a softening market, (Prop. C) will be the nail in the coffin” for some projects, said Lou Vasquez, founder and principal of development firm Build, which has plans to build 900 homes at India Basin along the city’s southern waterfront.
Supporters of the initiative said it would help produce more affordable housing in a city where home prices and rents have skyrocketed in recent years. Approximately 67 percent of voters embraced the measure while 33 percent rejected it.
But opponents argued that the policy will decrease the overall supply of housing by raising the cost of development.
Previously, the city’s policy required new projects to set aside 12 percent of units on-site as affordable housing, or build off-site units, pay a fee or donate land to fulfill the requirement. Under Prop. C, projects are required to have 25 percent on-site inclusionary housing or 33 percent off-site or paid as a fee… (more)