San Francisco Land Use and Transportation Committee Regular Meeting - February 10, 2025
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San Francisco Land Use and Transportation Committee Regular Meeting - February 10, 2025
The Land Use and Transportation Committee of the San Francisco Board of Supervisors met on Monday, February 10, 2025, at 9:45 AM. Chair Mirna Melgar presided, joined by Vice Chair Cheyenne Chen and Supervisor Bilal Mahmoud. The committee considered four items: an affordable housing bond financing exemption, downtown office-to-residential conversion fee waivers, sunsetting of the accessible business entrance program, and interim housing in hotels. Public comment was heard on all items.
Item 1: Inclusionary Housing Ordinance and Non-Potable Water Exemption (File 240873)
- Discussion: This ordinance allows affordable housing projects using state tax-exempt bond financing to be exempt from inclusionary housing requirements and non-potable water mandates, provided they offer deeper affordability. It was continued from the previous week; Supervisor Nanny Sauter spoke in support, noting strong neighborhood excitement for a project on Sutter Street. Two sets of substantive amendments from Vice Chair Chen and Supervisor Mahmoud had been introduced.
- Public Comments: One speaker (Rabbi Rothschild) urged approval, emphasizing the need for housing.
- Key Outcomes: The committee voted 3-0 (Chen, Mahmoud, Melgar) to recommend the ordinance as a committee report to the full Board of Supervisors for consideration on February 11, 2025.
Item 2: Development Impact Fees and Requirements for Non-Residential to Residential Conversion Projects (File 240927)
- Discussion: Supervisor Matt Dorsey, joined by Supervisor Sauter, presented an ordinance to waive impact fees, including inclusionary housing fees, for downtown office-to-residential conversions in C-2 and C-3 zoning districts. The goal is to address a 37% office vacancy rate (32 million sq ft) and the state-mandated RHNA target of 82,000 units by 2031. Planning staff noted the Planning Commission recommended approval with modifications (including extended pipeline date to April 1, 2025). Supervisor Dorsey offered non-substantive amendments to clarify definitions and add a reporting requirement. Supervisor Mahmoud expressed concern about impacts on affordable housing funds and equity geographies but supported the amendments. Vice Chair Chen moved to continue the item to February 24 for more community engagement; the motion failed (1-2, Chen in favor, Mahmoud and Melgar opposed). The committee then voted 3-0 to adopt Dorsey’s amendments, and 2-1 (Chen dissenting) to recommend the amended ordinance to the full board.
- Public Comments: Many speakers supported the measure, including the Chamber of Commerce, building trades unions (Carpenters Local 22), developers (Emerald Fund, Build Group), Spur, and architects. They argued that current fees make conversions economically infeasible and that zero fees are better than zero housing. Opposition came from SOMCAN, Parent Voices, Soma Filipinas, and other community groups, who noted that the waiver would eliminate fees for affordable housing, childcare, parks, and schools, disproportionately impacting priority equity geographies and cultural districts. They requested that these areas be carved out. Several speakers highlighted that 16,000 businesses complied with the ABE program (Item 3), but 4,100 had not.
- Key Outcomes: The ordinance was recommended as amended (2-1). The amendments included clarifying gross floor area definitions, simplifying pipeline project modification language, and adding a requirement for the Inclusionary Housing Technical Advisory Committee to study the waiver’s impact.
Item 3: Disability Access Improvements for Places of Public Accommodation (File 240982)
- Discussion: Board President Rafael Mandelman introduced an ordinance to sunset enforcement of the Accessible Business Entrance (ABE) program, which required all primary entries to be accessible. He noted the program had successes (16,000 businesses in compliance, 2,800 with checklists) but 4,100 remained. The ordinance replaces it with “Beyond the Front Door,” a collaborative initiative among DBI, Office of Small Business, and Mayor’s Office of Disability, plus waives public-right-of-way fees for ADA improvements. President Mandelman emphasized that federal and state accessibility laws remain in effect.
- Public Comments: Over a dozen speakers, mostly small business owners and merchant associations (Chinatown, Valencia Corridor, North Beach, Tenderloin), strongly supported the sunset due to high costs (up to $30,000-$41,000 for upgrades), confusing departmental processes, and language barriers. One disability advocate (Walt Park) opposed, arguing the program provided a case-by-case hardship process and that technical assistance was lacking. Others urged the city to also provide grants for accessibility improvements.
- Key Outcomes: The committee voted 3-0 to recommend the ordinance to the full Board of Supervisors.
Item 4: Interim Housing in Hotels and Motels (File 241067)
- Discussion: The Mayor’s Office of Homeless and Supportive Housing requested a continuance to refine the proposal. The ordinance would allow tourist hotels to be used for interim housing without losing their hotel use classification.
- Public Comments: Sharky Laguana (Homeless Oversight Commission) supported creating flexibility for interim shelter. Cynthia Gomez (UNITE HERE Local 2) supported the continuance to address union concerns.
- Key Outcomes: The committee voted 3-0 to continue the item to the call of the chair.
Key Outcomes Summary
- Item 1: Recommended as committee report (3-0) for Board consideration on Feb 11.
- Item 2: Recommended as amended to the Board (2-1) with amendments to clarify definitions, pipeline projects, and TAC reporting.
- Item 3: Recommended to the Board (3-0).
- Item 4: Continued to call of chair.
- All items acted upon are expected on the Board of Supervisors’ agenda of February 25, 2025, unless otherwise noted.
Meeting Transcript
Good afternoon, everyone. This meeting will come to order. Welcome to the February 10th, 2025 regular meeting of the Land Use and Transportation Committee of the San Francisco Board of Supervisors. I am Supervisor Mirna Melgar, Chair of the Committee, joined by Vice Chair, Supervisor Cheyenne Chen, uh, and Supervisor Bilal Mahmoud. The committee clerk today is John Carroll, and I also want to say a special thank you to Kalina Mendoza at SFGov TV for covering this meeting and transmitting it to our residents. Um Mr. Clerk, do you have any announcements? Yes, thank you, Madam Chair. Please ensure that you've silenced your cell phones and other electronic devices you've brought with you into the chamber today. If you have any documents to include as part of any of today's files, you shall submit them to me, and I can meet you up front at the rail. We can pass them there. Public comment will be taken on each item on today's agenda. When your item of interest comes up and public comment is called, please line up to speak along your right hand side of the room. Alternatively, you may submit public comment in writing in either of the following ways. First, you may email your comments to me at J O H N period C A R R O L L at SFGO V dot O R G. Or you may send your written comments via US Postal Service to our office in City Hall. The address is one, Dr. Carlton B. Goodlake Place, Room 244, San Francisco, California 94102. If you submit your public comment in writing, I will forward your comment to the members of this committee and also include your comments as part of the official file on which you are speaking. And finally, Madam Chair, items acted upon today are expected to appear on the Board of Supervisors' agenda of February 25th, 2025, unless otherwise stated the question. Thank you so much, Mr. Clerk. Please call item number one. Agenda item number one is an ordinance amending the planning code to permit the use of California debt limit allocation committee tax exempt bond financing and tax credits under the tax credit allocation committee for certain affordable housing projects that provide affordable housing units or deeper affordability levels than required by the inclusion area housing ordinance and require the mayor's office of housing and community development to report on such projects. The ordinance also amends the health code to exempt such affordable housing projects from compliance with that requirement that new buildings be constructed, operated, and maintained using alternate water sources for non-potable uses. It affirms the planning department's secret determination and makes findings of public necessity, convenience, and welfare under planning code section 302 and findings of consistency with the general plan and the eight priority policies of planning code section 101.1. And finally, Madam Chair, I'm in receipt of a memo from your desk requesting that this matter be agendized as a committee report for potential consideration by the Board of Supervisors tomorrow, February eleventh, twenty twenty-five. Thank you so much, Mr. Clerk. Uh we are joined by District Three, Supervisor Nanny Sauter, who is co-sponsoring this item. Just to refresh uh everyone's memory, uh, this item was continued from last week, where we had two sets of amendments that were substantive and had to sit for a week. Uh and I will now thank you uh to Vice Chair Chen um and to Supervisor Mahmoud for introducing those amendments. And I am gonna turn it over now to uh Supervisor Soder for any remarks. Thank you, Chair Mogar. Um happy to join again today in in support of this. Um I think uh in the past week, um, as we've all learned more about this opportunity uh for housing on Sutter Street uh and learn more about how this is truly uh a one-time exception um that will not impact future projects. I think that the support and the excitement around this project has grown. Uh it is uh one of the largest, most significant housing opportunities we have uh in the northern part of San Francisco at the moment. Uh it is something that the Lower Knob Hill neighborhood is excited about, a project like this to transform uh a block that is frankly quite slow and vacant, uh a funeral home, uh a old auto repair space. Uh it is also in the last week we've learned it is a block away from the uh restaurant uh that uh Draymond Green will be opening. So uh it is uh again a lot of excitement in the neighborhood, uh, and I hope that uh this will move forward out of committee and be passed uh at the Board of Supervisors. Thank you. Thank you, Supervisor. Let's go to public comment on this item. Uh Mr. Clerk, please. Thank you, Madam Chair. Land use and transportation will now hear public comment on agenda item number one related to these changes to the planning code and health code for the inclusionary housing ordinance. If you have public comment for this item, please come forward to the lecture in at this time.
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