San Francisco Board of Supervisors Land Use and Transportation Committee Regular Meeting - July 24, 2023

The Land Use and Transportation Committee, chaired by Supervisor Mirna Melgar and joined by Vice Chair Dean Preston and President Aaron Peskin, convened on July 24, 2023, at 9:45 AM (UTC) to consider seven agenda items. The meeting covered acceptance of an avigation easement, street naming, small business fee waivers, a resolution supporting state transit funding legislation (SB 532), a package of development impact fee and inclusionary housing reforms, and a family housing opportunity special use district. Public comment was heard on each item. The committee voted on multiple items, with some advancing to the full board and one file duplicated for further discussion.

Consent Calendar

• Item 1 (230800): Resolution authorizing acceptance and recording of an avigation easement from SyNoor LLC for 410 Noor Avenue, South San Francisco, a 338-unit residential project within the 70 dB CNEL contour of SFO. No fiscal impact. Passed unanimously (3-0) with positive recommendation.
• Item 2 (230779): Resolution renaming a segment of Palo Alto Avenue to La Avanzada Street and another segment to Dellbrook Avenue to correct official maps. Unanimously passed (3-0).
• Item 3 (230559): Ordinance amending planning, building, and fire codes to codify annual fee waivers for awning replacement and business signs during May (2023 and 2024), with projected fiscal impact under $20,000 per year. Unanimously passed (3-0).

Public Comments & Testimony

• Items 5 & 6 (Development fees): Over 20 callers and several in-person speakers. Supporters (e.g., Building Trades Council, Housing Action Coalition, Iron Workers Local 377, Roofers Local 40, Plumbers Local 38, Strata Investment Group) argued the package would unlock entitled projects, create jobs, and improve feasibility. Opponents (e.g., Council of Community Housing Organizations, Mission Economic Development Agency, affordable housing advocates, tenants) contended the reductions would cut affordable housing funds, increase land costs, and fail to produce new units without broader market changes. Some called for a one-year sunset, geographic equity tiers, or stronger affordable housing commitments.
• Item 4 (SB 532): Speakers generally supported the resolution, citing the need to prevent transit service cuts. Some emphasized equity concerns for low-income drivers and urged faster implementation of mitigation measures. A few callers opposed the toll increase, arguing it burdened displaced workers.
• Item 7 (Family Housing SUD): Speakers included supporters (Chinatown Community Development Center, Tenants Union) who praised tenant protections and targeted approach. Opponents (e.g., Speak, Planning Association for the Richmond, individual residents) demanded more time for review, criticized the lack of affordable housing mandates, and raised concerns about speculative flipping and inadequate notice.

Discussion Items

• Items 5 & 6 (Housing Fee Reform Package): President Peskin presented the package, which includes reducing inclusionary housing rates (from current 20% to approximately 10% for rental and 12-16% for condo projects) and modifying development impact fee indexing (capping escalation at 2% annually, locking fees at project approval, reinstating fee deferral, and exempting certain retail/PDR/hospitality projects). The package is based on a Century Urban feasibility study and Technical Advisory Committee (TAC) process. Supervisor Preston questioned the lack of projections on new units produced and lost revenue; he noted the controller's study found minimal impact on housing production. He also highlighted the risk of inflating land costs. Supervisor Melgar supported the package as a temporary three-year measure, urging parallel affordable housing funding (e.g., a March 2024 bond). Supervisor Safai proposed amendments to extend reductions to smaller projects (Home SF and 10-24 unit projects), but these were not adopted on the original file. The committee voted 2-1 (Preston dissenting) to forward items 5 and 6 to the full board with positive recommendations. A duplicate file was created to continue discussions on Supervisor Safai's amendments and other issues; that duplicate was continued to the call of the chair.
• Item 4 (SB 532 Resolution): Supervisor Mandelman presented the resolution supporting SB 532, which would raise Bay Area bridge tolls by $1.50 for five years to generate $900 million for transit operations. SFMTA Director Jeffrey Tumlin and BART Board President Janice Lee testified that the state's $400 million for Bay Area transit covers only about one-third of the projected $2.5 billion shortfall. Without SB 532, Muni service cuts could begin in late 2024, and BART faces a cumulative $1.1 billion deficit. Equity mitigation measures are being developed. The committee unanimously voted (3-0) to forward the resolution to the full board.
• Item 7 (Family Housing Opportunity Special Use District): Supervisor Melgar introduced the ordinance to allow up to four units on lots in RH districts (on the West Side and other high-resource neighborhoods) with streamlined approvals, while prohibiting demolition of rent-controlled units and requiring public notice. Multiple amendments were adopted: capping density at four units per lot (striking the “greater of four or one per 1,000 sq ft” language), clarifying that projects with demolition of rent-controlled units are ineligible, adding a requirement that project sponsors certify under penalty of perjury regarding buyouts and vacancy history, and strengthening findings about the city’s housing goals (82,000 units, 46,598 affordable). The committee voted unanimously (3-0) to forward the ordinance as amended to the full board.

Key Outcomes

• Votes:
  • Item 1: Passed 3-0 (positive recommendation).
  • Item 2: Passed 3-0.
  • Item 3: Passed 3-0.
  • Item 4: Passed 3-0 (forward to full board).
  • Item 5: Passed 2-1 (Preston dissenting; forward to full board).
  • Item 6: Passed 2-1 (Preston dissenting; as amended, forward to full board).
  • Item 7: Passed 3-0 (as amended, forward to full board).
• Duplications and Continuations:
  • A duplicate file for Items 5 & 6 was created to consider Supervisor Safai’s amendments (extending fee reductions to Home SF and smaller projects). The motion to adopt those amendments failed (1-2, with Melgar in favor, Peskin and Preston opposed). The duplicate was continued to the call of the chair.
• Next Steps: Items 1-4, 5, 6, and 7 are expected to appear on the Board of Supervisors agenda on September 11, 2023, unless otherwise stated. The duplicate file for Items 5 & 6 will remain in committee for further deliberation.