San Francisco benefits from housing law designed to streamline approval processes, addressing the city’s pressing housing crisis. With the introduction of Senate Bill 423, San Francisco aims to expedite housing development, ensuring the city meets its ambitious housing goals.
The Statewide Housing Plan: San Francisco Benefits from Housing Law
In 2022, California implemented a Statewide Housing Plan to tackle the housing crisis, mandating cities and counties to contribute to building 2.5 million new homes by 2031. San Francisco’s target is to develop 82,000 units within this timeframe. On Monday, state Sen. Scott Wiener and Mayor London Breed announced that San Francisco would be the first city subject to Senate Bill 423. This law is triggered if the state determines a city is lagging in its housing goals, directing governments to streamline permitting processes and bypass local obstacles.
Evolution from SB 35 to SB 423
The “new” law is an evolution of Senate Bill 35, which Wiener passed in 2017. SB 35 introduced a state-designed streamlined review process, resulting in over 3,600 homes receiving approval in San Francisco, with 88% being affordable at below-market rates. The critical difference with SB 423 is its expanded eligibility, allowing market-rate developments to benefit from the streamlined process. Previously, only projects with 50% or more affordable units could take advantage; now, it requires just 10%.
Impact on Market Rate Developments
Anne Yalon, spokesperson for the San Francisco Planning Department, highlighted the significant change SB 423 brings by including market-rate developers. Mayor Breed and Wiener emphasized that San Francisco will now have the shortest approval process in the state, freeing developers from local political hurdles.
“SB 423 is a rebranded SB 35,” Yalon said. “The big change is now market rate developments can take advantage of it, whereas before you could only take advantage if your project had 50% or more affordable units, and now it’s 10%.”
Concerns and Challenges
Despite these advancements, San Francisco Board of Supervisors President Aaron Peskin raised concerns about the real obstacles to building housing, primarily financing. Peskin warned that SB 423 might benefit speculators and developers building expensive units, unaffordable for most San Franciscans. He also noted the risk of widespread by-right demolitions in vulnerable neighborhoods, potentially leading to gentrification and displacement.
Discretionary vs. Ministerial Approval
Understanding the difference between discretionary and ministerial approval is crucial. Discretionary approval considers the impact of each project individually, allowing for community input on preserving neighborhood character. Ministerial approval, on the other hand, focuses on paperwork and compliance with building codes, minimizing delays and political interference.
Streamlined Approval Timeline
A UC Berkeley study found that, between 2014 and 2017, the median approval timeframe for multifamily housing in San Francisco was 26.6 months. With SB 423, city planning officials must issue final decisions on most new housing permits within six months, significantly reducing approval times.
San Francisco benefits from housing law changes designed to streamline the approval process, potentially accelerating housing development. While there are concerns about financing and the impact on vulnerable neighborhoods, SB 423 represents a significant step towards meeting the city’s housing goals.
