Nov 2016: NO on Prop U - Affordable Housing Requirements for Market-Rate Projects

The City’s Charter generally requires developers of market-rate housing to provide affordable housing. A developer can meet this requirement in one of three ways:  

1. Pay a fee equal to 17% - 20% of the total units being developed;
2. Make at least 12% of the on-site housing units affordable; or
3. Build new affordable units off-site, equal to 17% - 20% of the total units.

A unit for sale counts toward the on-site requirement if it is affordable to households earning up to 90% of the area median income. A rental unit counts toward the on-site requirement if it is affordable to households earning up to 55% of the area median income.

The City uses federal income standards to determine the maximum allowable rent levels for the affordable units. Generally, a household living in an affordable housing unit pays no more than 30% of its total income on rent. Currently, the monthly rent for a one-bedroom affordable housing unit is $1,121, and the monthly rent for a two-bedroom affordable housing unit is $1,261.

Under Proposition U, a rental unit would count toward the affordable housing requirement if it is affordable to households earning up to 110% of the area median income, double the current cutoff. This means, a household could pay up to $2,241 for a one-bedroom affordable rental unit and up to $2,521 for a two-bedroom affordable rental unit.

As a result, developers would be tempted to rent only to households approaching 110% of the area median income to maximize their income, leaving out lower income households who need affordable housing the most.

The San Francisco League of Conservation Voters suggests NO on Prop U.

Nov 2016: NO on Prop P - Competitive Bidding for Affordable Housing Projects on City-Owned Property

The City provides financing to developers to build new affordable housing and rehabilitate existing affordable housing on City-owned property. The Mayor's Office of Housing and Community Development (MOHCD) administers most of these programs. MOHCD posts a description of the proposed project on its website and invites developers to submit proposals. Because building and managing affordable housing projects offer lower potential profits than market-rate projects, these projects attract proposals from fewer developers.

MOHCD describes the criteria they will use to select a proposal, which generally include the anticipated cost to the City, how much experience the developer has with similar projects, the feasibility of the developer’s proposal, the quality of the developer’s design, and the extent to which the proposal meets community needs. After the deadline for submissions, MOHCD applies the evaluation criteria to select a proposal.

Proposition P would require MOHCD to receive at least three proposals for the project and accept the proposal with the “best value.” Currently, MOHCD may select a qualified developer to proceed with an affordable housing project, even if it receives fewer than three proposals. If Prop P passes, the City could not proceed with an affordable housing project if MOHCD receives fewer than three proposals.

The San Francisco League of Conservation Voters believes that this requirement would reduce the development of affordable housing and make the city’s housing crisis worse. Please vote NO on Prop P.

Nov 2016: NO on Prop L - Charter amendment changing appointments to the MTA Board and MTA Budget approval

Currently, the Mayor appoints all 7 members of the Metropolitan Transportation Agency (MTA) Board and the Supervisors confirm these appointments. Proposition L amends the process such that 4 of the 7 members of the MTA Board would nominated by the Mayor and the remaining 3 by the Board of Supervisors, all of whom would still be confirmed by the Supervisors.

In addition, the amendment allows the Supervisors to reject but not modify the MTA's budget by simple majority, rather than by 7 of the 11, as now. If the Supervisors reject the budget, it would have to fund MTA sufficiently to maintain all operations at the level of June 30 of the prior fiscal year. The amendment does not otherwise change the budgetary or financial responsibilities or authority of the MTA Board. 

SFLCV has two major concerns about Prop L:

1. The MTA is constrained by many who do not want to give up lanes and parking spots for street changes that improve pedestrian, cyclist and motorist safety. Such improvements include sidewalk widening and curb extensions, Muni boarding platforms and protected bike lanes, which would contribute towards achieving Vision Zero reductions in deaths from collisions. District Supervisors represent local interests and are more likely to appoint those from their districts who rate parking places over safety changes. The Mayor reports to all San Franciscans and is more likely to appoint strong Board members.
2. Prop L would reduce the current requirement of a supermajority (7 of 11 Supervisors) to reject the MTA budget to a simple majority, thus making it easier for Supervisors to hold the MTA budget hostage to local interests.

Prop L would make transit planning more vulnerable to political meddling. The San Francisco League of Conservation Voters urges you to vote NO on Prop L.