Proposed legislation which would allow developers in San Francisco to build up to three stories higher than currently zoned, depending upon the percentage of ‘affordable’ units included on-site, has been introduced to the Board of Supervisors by the Mayor and Supervisor Katy Tang.

In addition to enacting the State’s existing Density Bonus Law, which allows developers to build up to two stories higher in order to accommodate the building of more units on a parcel than Planning allows, the proposed Local Affordable Housing Bonus Program would allow developers of 100 percent below-market-rate developments to build up to three stories higher and developers of market-rate projects to build up to two stories higher than zoned if at least 30 percent of the units in the development are designated as affordable (versus 12 percent as currently required).

For 30 percent affordable projects with ten or more units, 12 percent of the units would need to be deemed affordable to households earning between 55 and 90 percent of the Area Median Income (AMI) while 18 percent of the units could target “Moderate and Middle” income households earning up to 120 and 140 percent of the AMI. For projects with fewer than ten units, the 30 percent could be affordable for those earning up to 140 percent of the Median.

The current AMI for San Francisco is $71,350 for an individual, $81,500 for a couple, and $91,700 for a family of three.

As mapped above, the Bonus Program would not apply to projects in areas zoned for single-family or two-unit buildings or for parcels within neighborhoods for which an Area Plan, such as the Western SoMa, Eastern Neighborhoods, or Market and Octavia Area Plan, has already been adopted.

And for projects to qualify for the Local Bonus Program, at least 40 percent of the units in the building must be two-bedrooms but without a minimum size.

Correction: While the Local Program requires 12 percent of the units to be affordable to “Low and Moderate” income households, the income threshold remains at 55 and 90 percent of the AMI, as is currently required under the City’s inclusionary housing program. We initially reported the upper bounds for Low and Moderate income households (which are 80 and 120 percent of the AMI).