For the first time in over 20 years, San Francisco may get new rent-controlled housing. And not new in the sense that the units in question are being built to replace the destruction of previously rent-controlled units, but rather new in the sense that they will add to the city's stock of affordable housing. The Chronicle reports that a 103-unit development proposed for the Excelsior is set to include 51 permanently rent-controlled units at the developer's request, with the remaining 52 units to be rented below market rate.
“This is an historic agreement that will offer more than 100 families affordable housing in perpetuity,” Mayor Lee said in a press release. “The challenge working and middle class families have in finding affordable housing requires us to consistently look for opportunities with developers willing to work out-of-the-box. This is a unique situation where the City and a developer’s goal, to give back to the City and its residents, are aligned.”
And a unique situation it most certainly is. According to the paper, the project's developer, SST Investments, is not required to build these units — due to state law no units built after 1978 need to offer rent-control. However, in exchange for the ability to build an additional 24 units on site, the developer offered up the bargain.
Of course, the decision may be based on more than just business considerations. “The idea just hit me,” Siavash Tahbazof of SST Investments told the paper. “What if we went over and beyond for this one? What if we created a special place for 100 families in a neighborhood that so desperately needs new housing they can afford? This country, and San Francisco in particular, has done so much for my family since we arrived over 35 years ago... I came to this country with very little and was lucky to catch a few breaks that helped me succeed," added Tahbazof. "Hopefully, this building can be that break another young family needs to propel themselves to a better life.”
The Examiner reports that the building would replace what is currently a warehouse, and that the development is financed without public funds. According to the Mayor's office, the project still needs to go through the environmental review process and, if all goes well, should be put to the Planning Commission by winter of next year.
Related: Extremely SF Startup Negotiates Buyouts On Rent-Controlled Units