Last week, Mayor Ed Lee announced a new Executive Directive that will fundamentally change the way housing is built in San Francisco.
The directive's goal is to increase annual housing production in San Francisco by 160%, to 5,000 new units every year. In comparison, the 30-year average for annual housing construction in the City has only been 1,967 units.
So how does the Mayor plan on reshaping the housing landscape in San Francisco? And does his Executive Directive live up to the hype? We break it down for you below:
What is an Executive Directive?
An Executive Directive is a direct order from the Mayor to City Departments to meet specific goals. The Mayor holds this authority as the Executive Branch of local government - all City Departments technically work for the Mayor (although sometimes, it really doesn't feel that way). An Executive Directive does not permanently change the law, but can force significant government action, and is an easy way for the Mayor to create change without going through the Board of Supervisors.
Deadlines, Deadlines, Deadlines
The Executive Directive mandates new, strict deadlines for the Planning Department to process all housing projects in the permitting pipeline. The new deadlines range from 6 - 22 months, depending on the size and complexity of the project. The deadlines reduce the permitting time of most housing projects by nearly 50%.
These deadlines form the backbone of the Executive Directive - they are a guarantee to housing developers that they will receive a Planning Commission decision on their project within 2 years of submitting their proposal. This is a huge shift in housing policy; it can currently take months, even years, for housing projects to move through City bureaucracy.
The deadlines are as follows:
a. For projects with no CEQA review: no more than 6 months;
b. For projects with a categorical exemption: no more than 9 months;
c. For projects with a Negative declaration, mitigated negative declaration, or community plan evaluation: no more than 12 months;
d. For projects with an environmental impact report (EIR): no more than 18 months;
e. For projects with a complex EIR: no more than 22 months.
The new deadlines will have the most significant impact on affordable housing projects. Senator Scott Wiener's SB 35 (recently signed into law by Governor Jerry Brown) exempts most affordable housing projects from CEQA review. Paired with the Mayor's new directive, those projects are now looking at a short 6-month permitting timeline.
And More Deadlines
The Executive Directive goes beyond the Planning Department and mandates that all other City Departments award permits to housing projects within one year of their approval by the Planning Commission.
This second deadline is almost as significant as the first - there are large housing projects across the City (Treasure Island, Hunter's Point Shipyard) who received their entitlement approval years ago, but are still waiting for their construction and building permits. The Business Times estimates that over 15,000 housing units have been delayed due to technical permits required by the City.
This second deadline impacts 11 different City Departments, including Department of Building Inspection, Department of Public Works, and the Fire Department.
Correcting The Calendar
Even with weekly meetings that run as long as 12 hours, the Planning Commission is notorious for delaying project hearings due to packed calendars or technical delays. A hearing that is continued at the Commission may push a project back by months.
The Executive Directive attempts to correct this by mandating the Planning Director to schedule housing projects on the Planning Commission's calendar within the deadlines listed above (6 - 22 months). If a project is not ready by the time of their scheduled hearing, the reasons for the delay must be publicly recorded and the project will be rescheduled to the earliest possible date.
Streamlining the Process
The Executive Directive orders city departments to develop and submit plans to streamline their permitting processes to meet the new deadlines. City departments must submit plans to the Mayor's office by the end of the year. The plans should include everything from moving decisions from the Commission-level to department staff, to cutting redundant hearings between multiple Commissions.
Look for the Planning Department in particular to start proposing legislation to the Board of Supervisors. Many of these new deadlines will require changes to the Planning Code, and Planning Director John Rahaim has said that he is ready to start drafting legislation. These ordinances will likely become new territory for Supervisors to spar over the next year.
Little Housing Czars
The 11 departments that deal with housing permitting and approvals (Office of Economic and Workforce Development, Mayor’s Office of Housing and Community Development, Planning Department, Office of Community Investment and Infrastructure, Department of Building Inspection, Department of Public Works, Port of San Francisco, Public Utilities Commission, Mayor’s Office on Disability, Fire Department and Municipal Transportation Agency) will each hire a staff member to coordinate and streamline new housing development. Each of those departments will also submit a quarterly report to the Mayor's office regarding housing approvals and permitting.
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