San Francisco Makes Crucial Changes to Housing Policy to Earn Prohousing Designation

One year after being the subject of an unprecedented review of policies and practices impeding housing development, San Francisco has made critical changes to earn the Prohousing Designation, the California Department of Housing and Community Development (HCD) announced today.

Exactly one year ago today, HCD released the San Francisco Housing Policy and Practice Review (PPR). A first of its kind investigation into a local government's barriers to housing production, the PPR required San Francisco to implement 18 actions that resolve inconsistencies with state law and accelerate housing production.

In August, HCD reported on San Francisco's progress implementing several key reforms as a result of HCD's ongoing monitoring and technical assistance. Since then, San Francisco has continued to make critical changes, bringing the city up to date on the implementation of the PPR's required actions. As a result, San Francisco has met all threshold requirements and achieved a qualifying score to receive HCD's Prohousing Designation.

"I applaud the City of San Francisco for recognizing the critical importance of supporting communities by accelerating the development of housing for all income levels," said Business, Consumer Services and Housing Secretary Tomiquia Moss. "By leveraging the tools and technical assistance provided by HCD, San Francisco has shown a commitment to eliminating barriers to build affordable, transit-friendly housing options for all."

Increasing availability of housing statewide is critical to improving quality of life for all Californians-and to addressing a crisis of homelessness decades in the making. The Prohousing Designation Program recognizes cities and counties that demonstrate a commitment to policy that breaks down barriers to housing development. By earning the Prohousing Designation, communities receive access to Prohousing Incentive Program grants and additional points in the scoring of competitive housing, community development, and infrastructure funding programs administered by HCD. Fifty-one California communities have earned this distinction-nearly one tenth of California's cities and counties.

"The City and County has made significant progress in accelerating housing development and removing obstacles that delay approval," said HCD Director Gustavo Velasquez. "San Francisco has shown that it is serious about structural change, and I trust that-in collaboration with HCD-San Francisco will continue to take the steps necessary to produce and preserve housing for individuals and families at all income levels."

"We are proud that the state has recognized San Francisco as a Prohousing city," said Mayor London Breed. "This has taken a lot of work locally to change our laws and get to yes on housing, as well as a strong partnership with our state leaders to deliver on key reforms. Working together, we are showing how San Francisco can be a leader on building new housing and be a more affordable city for all."

In its Prohousing application, San Francisco demonstrated a commitment to building innovative housing types, reducing barriers to homeownership, and encouraging sustainable development. For example, to encourage smart growth, San Francisco has eliminated parking requirements for residential development. No parking minimums apply in any district or for any use type. All commercial districts within the city now permit residential and mixed uses, encouraging redevelopment of existing properties into additional housing. Finally, San Francisco passed legislation to allow the creation of Enhanced Infrastructure Financing Districts that can be used to finance the development of infrastructure necessary for large-scale housing projects. This legislation allows projects to proceed to development by bridging financing gaps and allowing underlying infrastructure to be built.

HCD is committed to continuing its partnership with San Francisco to ensure ongoing implementation of the PPR's required actions, Prohousing policies, housing element programs, and state housing laws to encourage housing development.

For more information about the Prohousing Designation Program, visit https://www.hcd.ca.gov/planning-and-community-development/prohousing-designation-program.