San Francisco is considering an amendment to its Planning Code to encourage the conversion of unused commercial spaces into residential housing. This would be a step to address the challenges posed by declining office space demand post-COVID-19 and the urgent need for more housing.
Key provisions include fee waivers, a program extension, and allowing previously approved projects to request a modification.
The amendment would waive development impact and inclusionary housing fees for eligible projects converting non-residential to residential use in certain downtown districts. Additionally, it removes the 2028 application deadline for the Commercial to Residential Adaptive Reuse Program, making it an ongoing initiative, and allows previously approved projects to request modifications to fee requirements and performance timelines under new rules.
The amendment's objective is threefold:
- Boost housing production: support San Francisco's RHNA (Regional Housing Needs Allocation) target of 82,069 housing units by 2031.
- Revitalize downtown: address the high office vacancy rates (a fivefold increase since 2019) while creating vibrant, mixed-use neighborhoods.
- Economic stimulus: encourage residential development to support local businesses, public transit, and tax revenue generation.
This proposal aims to transform downtown into a thriving, mixed-use environment that meets modern housing needs by removing economic and regulatory barriers.
