OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

San Francisco Planning Commission Hearing on Inclusionary Housing and Impact Fee Reductions – May 28, 2026

Planning Commission — Thursday, May 28, 2026
BodySan Francisco, California
SessionPlanning Commission
DateThursday, May 28, 2026
StatusFILED
Video Record
0:00 / 1:54:58
Transcript — Verbatim
0:20

Okay, good afternoon and welcome to the San Francisco Planning Commission hearing for Thursday, May 28th, 2026.

0:29

When we reach the item you are interested in speaking to, we ask that you line up on the screen side of the room or to your right.

0:35

Each speaker will be allowed up to three minutes.

0:38

And when you have 30 seconds remaining, you will hear a chime indicating that your time is almost up.

0:44

When your allotted time is reached, there is a second chime, and I will announce that your time is up and take the next person cued to speak.

0:50

There is a very convenient timer on the podium where you can see how much time you have left and watch your time tick down.

0:56

Please speak clearly and slowly, and if you care to state your name for the record.

1:00

I ask that we silence any mobile devices that may sound off during these proceedings.

1:04

And finally, I will remind members of the public that the commission does not tolerate any disruption or outbursts of any kind.

1:11

At this time, I'd like to take roll.

1:13

Commission President Campbell.

1:15

Commission Vice President Moore.

1:17

Commissioner Braun.

1:18

Commissioner McGarry.

1:21

And Commissioner So.

1:23

Present.

1:23

And Commissioner Williams.

1:26

Thank you, Commissioners.

1:27

First, on your agenda is consideration of items proposed for continuance at the time of issuance and to date.

1:32

There are no items reposed for continuance.

1:34

We can move on to your consent calendar.

1:36

All matters listed here under constituted consent calendar are considered to be routine by the planning commission and may be acted upon by a single roll call vote.

1:45

There will be no separate discussion of these items unless a member of the commission, the public or staff so requests, in which event the matter shall be removed from the consent calendar and considered as a separate item at this or a future hearing.

1:56

Item one, case number 2026, 001024 CUA at 1569 Slope Boulevard, conditional use authorization, and item two, case number 2026, IP 002998 C UA at 2243 Mission Street, conditional use authorization.

2:13

Members of the public, this is your opportunity to request that either of these two consent calendar items be pulled off and heard under the regular calendar today or at a future hearing date.

2:23

You need to come forward.

2:25

Seeing none, public comment is closed, and your consent calendar is now before you, Commissioners.

2:34

Vice President Moore.

2:35

Move to approve.

2:36

Second.

2:38

Thank you, Commissioners.

2:39

On that motion to approve items on consent.

2:41

Commissioner McGarry.

2:43

Commissioner So.

2:44

Aye.

2:45

Commissioner Williams.

2:46

Commissioner Braun.

2:47

Aye.

2:48

Commissioner Moore.

2:50

And Commissioner President Campbell.

2:51

Aye.

2:52

So move Commissioners that motion passes unanimously six to zero, placing us under commission matters for item three, the land acknowledgement.

2:59

The commission acknowledges that we are on the unceded ancestral homeland of the Ramatish Alone, who are the original inhabitants of the San Francisco Peninsula.

3:07

As the indigenous stewards of this land and in accordance with their traditions, the Ramatishalone have never ceded, lost nor forgotten their responsibilities as the caretakers of this place, as well as for all peoples who reside in their traditional territory.

3:20

As guests, we recognize that we benefit from living and working on their traditional homeland.

3:26

We wish to pay our respects by acknowledging the ancestors, elders and relatives of the Ramatish Alone community and by affirming their sovereign rights as first peoples.

3:38

Thank you.

3:39

Item four commission comments and questions.

3:46

Thank you.

3:47

No.

3:48

Okay, seeing no requests to speak from members of the commission, we can move on to department matters.

3:53

Item five, director's announcements.

3:58

Commissioners, I don't think either Kate or I have much to report.

4:04

Is it on?

4:04

Yes.

4:05

I think neither Kate or I have much to report.

4:08

Very good.

4:09

And item six, review of past events at the Board of Supervisors, Board of Appeals, and Historic Preservation Commission.

4:16

No reports either.

4:18

So general public comment.

Discussion Breakdown — Share of Meeting
Affordable Housing█████████████████████████████████████████████89%
Land Use██3%
Procedural█2%
Public Comment█2%
Land Acknowledgement█1%
Community Engagement█1%
Finance And Debt█1%
Budget and Finance█1%
Summary of Proceedings

San Francisco Planning Commission Hearing on Inclusionary Housing and Impact Fee Reductions – May 28, 2026

On May 28, 2026, the San Francisco Planning Commission held a hearing that included approval of routine consent calendar items and an informational presentation on proposed updates to the Inclusionary Affordable Housing Program and development impact fees. The commission heard extensive public testimony and discussed the economic feasibility of housing development, legislative recommendations from the Technical Advisory Committee (TAC), and a companion charter amendment to expand the city's Housing Trust Fund. No formal vote was taken on the main item.

Consent Calendar

  • Unanimously approved two conditional use authorizations (Case Nos. 2026-001024 CUA at 1569 Slope Boulevard and 2026-002998 CUA at 2243 Mission Street) on a single roll call vote, 6-0.

Public Comments & Testimony

General Public Comment (prior to main item):

  • A speaker (unidentified) criticized the handling of a demolition at 248 Valley Street, arguing that a building permit (Form 3) was improperly used instead of a demolition permit (Form 6), despite the project exceeding demolition thresholds and being effectively a flat lot. The speaker expressed concern that the planning department is not ensuring proper permit issuance at intake, especially under the tenant protection ordinance.

Public Comment on Item 7 (Inclusionary Housing & Impact Fees):

  • Several members of the public spoke in support of the proposed amendments, representing organizations such as Abundant San Francisco, SPUR, and the Housing Action Coalition, as well as individual residents. Speakers generally emphasized that current inclusionary requirements and fees have made most market-rate projects financially infeasible, as shown by the Controller’s feasibility analysis, and that reducing these costs—paired with a stronger Housing Trust Fund—is essential to restart housing production, retain residents, and meet affordability goals. Specific speakers included Jugal Patel (District 8 resident), Nicholas Lowe (District 2), Alex Zerbel (District 5), Graham (District 8), Jules Lendry (District 5), Lori Drossi (SPUR housing and planning director), and Wood Turner (Housing Action Coalition). No one spoke in opposition to the proposal during the hearing.

Discussion Items

Item 7: Inclusionary Affordable Housing Program and Development Impact Fees (Informational Presentation)

  • Staff from the Planning Department, Mayor’s Office of Housing and Community Development (MOHCD), Controller’s Office, and Office of Economic and Workforce Development (OEWD) presented an overview of housing production trends and the results of the 2026 TAC feasibility study. Key findings included:
    • Market-rate unit production fell 70% from over 3,000 units in 2020 to only 924 units in 2025.
    • Inclusionary housing units make up only 9% of the total affordable housing portfolio, and since 2020, only 6% of affordable units came from the inclusionary program.
    • Annual inclusionary fee revenue dropped from an average of $31 million (FY 2017-18 to 2019-20) to $2.1 million post-pandemic.
    • The Controller's feasibility analysis found that for all rental prototypes and nearly all condominium prototypes, residual land values were negative even under a hypothetical 100% market-rate scenario with no inclusionary requirements, meaning projects are currently financially infeasible.
    • The TAC unanimously recommended reducing the on-site inclusionary rate to 5% if a consensus affordable housing funding measure is placed on the November 2026 ballot, or to 10% if not; reducing development impact fees by 67%; raising the applicability threshold from 10 units to 25 units; and simplifying and aligning rates across the city.
  • Staff also detailed the proposed charter amendment to expand the Housing Trust Fund from $50 million per year to $125 million per year over a 10-year ramp-up period, generating an estimated $3 billion in additional affordable housing funding over 30 years. The measure is co-sponsored by a majority of the Board of Supervisors and supported by the mayor.
  • Commissioners engaged in lengthy discussion, with many expressing support for the data-driven approach and the need to act before temporary inclusionary rates expire on November 1, 2026. Commissioner Braun noted that similar feasibility challenges exist across the region. Vice President Moore asked about safeguards regarding the ballot measure, the rationale for the 25-unit threshold, and the timing of trust fund increases. Commissioner Williams raised concerns about relying on market-rate development, potential gentrification in sensitive neighborhoods, and the loss of inclusionary units, particularly from projects under 25 units. Commissioner So emphasized the importance of restarting construction and asked about who could access Housing Trust Fund dollars and how to build capacity for smaller affordable housing developers. President Campbell wondered whether the proposed reductions go far enough given the severity of the feasibility data.

Key Outcomes

  • No action was taken on the main item as it was an informational presentation.
  • The commission is scheduled to consider the planning code amendment for adoption and delegation authority at a hearing on June 18, 2026.
  • The related legislation (Board File No. 260538) will also be heard by the Building Inspection Commission on June 17, 2026, and at the Board of Supervisors’ Land Use and Transportation Committee before the August recess.
  • Commissioners broadly signaled support for the proposed reductions and the companion Housing Trust Fund measure, while acknowledging the need to monitor market conditions and revisit rates in future TAC cycles.

Meeting Transcript

Okay, good afternoon and welcome to the San Francisco Planning Commission hearing for Thursday, May 28th, 2026. When we reach the item you are interested in speaking to, we ask that you line up on the screen side of the room or to your right. Each speaker will be allowed up to three minutes. And when you have 30 seconds remaining, you will hear a chime indicating that your time is almost up. When your allotted time is reached, there is a second chime, and I will announce that your time is up and take the next person cued to speak. There is a very convenient timer on the podium where you can see how much time you have left and watch your time tick down. Please speak clearly and slowly, and if you care to state your name for the record. I ask that we silence any mobile devices that may sound off during these proceedings. And finally, I will remind members of the public that the commission does not tolerate any disruption or outbursts of any kind. At this time, I'd like to take roll. Commission President Campbell. Commission Vice President Moore. Commissioner Braun. Commissioner McGarry. And Commissioner So. Present. And Commissioner Williams. Thank you, Commissioners. First, on your agenda is consideration of items proposed for continuance at the time of issuance and to date. There are no items reposed for continuance. We can move on to your consent calendar. All matters listed here under constituted consent calendar are considered to be routine by the planning commission and may be acted upon by a single roll call vote. There will be no separate discussion of these items unless a member of the commission, the public or staff so requests, in which event the matter shall be removed from the consent calendar and considered as a separate item at this or a future hearing. Item one, case number 2026, 001024 CUA at 1569 Slope Boulevard, conditional use authorization, and item two, case number 2026, IP 002998 C UA at 2243 Mission Street, conditional use authorization. Members of the public, this is your opportunity to request that either of these two consent calendar items be pulled off and heard under the regular calendar today or at a future hearing date. You need to come forward. Seeing none, public comment is closed, and your consent calendar is now before you, Commissioners. Vice President Moore. Move to approve. Second. Thank you, Commissioners. On that motion to approve items on consent. Commissioner McGarry. Commissioner So. Aye. Commissioner Williams. Commissioner Braun. Aye. Commissioner Moore. And Commissioner President Campbell. Aye. So move Commissioners that motion passes unanimously six to zero, placing us under commission matters for item three, the land acknowledgement. The commission acknowledges that we are on the unceded ancestral homeland of the Ramatish Alone, who are the original inhabitants of the San Francisco Peninsula. As the indigenous stewards of this land and in accordance with their traditions, the Ramatishalone have never ceded, lost nor forgotten their responsibilities as the caretakers of this place, as well as for all peoples who reside in their traditional territory. As guests, we recognize that we benefit from living and working on their traditional homeland. We wish to pay our respects by acknowledging the ancestors, elders and relatives of the Ramatish Alone community and by affirming their sovereign rights as first peoples. Thank you. Item four commission comments and questions. Thank you. No.

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