On Thursday, San Francisco Mayor London N. Breed announced a new proposal to waive development impact fees and inclusionary housing requirements for office-to-housing projects in an effort to revitalize the city’s downtown area. This initiative is part of her “30 x 30” plan, which aims to bring at least 30,000 residents and students downtown by 2030.
The impact fees and housing requirements are currently the biggest costs imposed by the city on conversion projects, adding an estimated $70,000-$90,000 per unit in development expenses. The proposed legislation would eliminate these fees for all commercial-to-residential conversions in downtown San Francisco. This builds upon a previous waiver of real estate transfer taxes for conversion projects that was implemented in March.
According to Mayor Breed: “San Francisco is evolving into a City of Yes where we remove any barriers or obstacles that hinder progress.” She believes that by waiving these fees, they are saying yes to change and yes to creating more housing opportunities while transforming Downtown into a vibrant neighborhood with round-the-clock activity.
This announcement marks another milestone towards achieving Mayor Breed’s goal of revitalizing Downtown San Francisco through innovative policies and initiatives.
