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Legal Alert

Supervisor Campos Initiates Market Rate Housing Moratorium

Supervisor Campos Initiates Market Rate Housing Moratorium

On June 2, 2015, the full Board of Supervisors will hear controversial legislation, proposed by Supervisor David Campos, that would create a moratorium on the creation of new market rate housing in a large portion of the Mission whenever a property owner builds five or more new units. The proposal will also put a ban on the issuance of any permit which would remove Production, Distribution and Repair (PDR) space to some other use. The Ordinance would exempt projects proposing 100% affordable housing units from the housing moratorium and permit the elimination of PDR uses when the removal of the PDR uses are necessary to permit 100% affordable housing projects.

The Ordinance affects properties within the area bounded by:

The north side of Cesar Chavez from the east side of Valencia to the west side of Potrero; the west side of Potrero from the north side of Cesar Chavez to the south side of 20th Street; the south side of 20th Street from the west side of Potrero to the west side of Bryant; the west side of Bryant from the south side of 20th Street to the south side of U.S. Route 101; the south side of U.S. Route 101 from the west side of Bryant to the east side of Valencia; the east side of Valencia from the south side of U.S. Route 101 to the north side of Cesar Chavez.

The moratorium would last for 45 days, but the sponsors will seek its extension as long as the law allows, which could be up to 18 to 24 months.

Since the legislation will not first be heard by a Board Committee, and instead voted on by the full Board as an “urgency matter”, nine out of the eleven Supervisors must approve the Ordinance. If approved, the Ordinance would be effective as soon as the Mayor signs the Ordinance. If the Mayor fails to sign the Ordinance or vetoes it, then the Ordinance becomes effective only if eight of the eleven members of the Board vote within 30 days to override the veto. Many believe the Mayor will not sign.

The Ordinance does not make an exception for projects that are in the pipeline and thus it would apply to projects that have not yet received a site permit, building permit or alteration permit.