§ 23A.8. DEVELOPMENT OF PROPERTY.

(a) All real property transferred to MOHCD under this Chapter 23A shall be used to create Affordable Housing, and may include housing designed for Homeless or formerly Homeless individuals. The Executive Director shall seek to maximize the amount of Affordable Housing throughout MOHCD's real estate portfolio, subject to the availability of funds, and nothing in this Chapter shall limit the total number of Affordable Housing units that can be developed on any real property. MOHCD shall solicit development proposals on a competitive basis and impose income restrictions on all housing created under this Chapter in accordance with MOHCD's standard procedures and practices and guided by the priorities set forth below and in accordance with housing needs and performance measures identified in the City's Consolidated Plan, including target populations for affordable housing production over the previous two years. Subject to any disposition priority required by State law and other limitations expressly set forth herein, the development of all Surplus and Underutilized Property should be guided by the following priorities:

(1) First, for the development of affordable housing for people who are Homeless and persons earning less than 20% of the Area Median Income, provided that:

(A) The housing shall remain affordable for the useful life of the project;

(B) Housing costs in such housing shall not exceed 30% of the resident's income;

(C) Projects in which people who are Homeless rehabilitate and renovate property in exchange for their tenancy or "sweat equity" in the property shall be encouraged.

(2) Second, for the development of very low and low income affordable housing for persons earning no more than 60% of the Area Median Income, provided that the housing shall remain affordable for the useful life of the project.

(3) Third, for the development of mixed income housing projects for extremely low, very low, low and moderate income Affordable Housing as defined in Section 23A.4; provided that for any rental project, not less than 15% of the units will be affordable to households earning 55% of the Area Median Income, and for any ownership project, not less than 15% of the units will be affordable to households earning 90% of the Area Median Income.

(b) Notwithstanding Section 23A.8(a), for sites with development capacity of 200 or more units as determined by the Executive Director, the Executive Director may propose to use the property for a mixed-income housing project, including Middle Income Housing, by a qualified developer selected on a competitive basis. The Executive Director shall select a developer or co-developer that has at least five years experience developing and maintaining housing for seniors, veterans, the disabled or low income families in San Francisco. Not less than 33% of the residential units developed on the property must be Affordable Housing, and (1) for any rental project, not less than 15% of the units affordable to households earning 55% of the Area Median Income, and for any ownership project, not less than 15% of the units affordable to households earning 90% of the Area Median Income, and (2) subject to financial feasibility, at least 50% of the residential units developed on the property affordable in furtherance of the November 2014 Proposition K affordable housing goals. All deed restricted housing developed as part of these projects shall remain affordable for the useful life of the project.

(c) If the Executive Director determines that any real property transferred to MOHCD under this Chapter 23A cannot be developed and used for Affordable Housing, the Executive Director shall prepare and submit to the Mayor and Board of Supervisors legislation either transferring jurisdiction over such property from MOHCD to another City department for such department's use or seeking to sell such property. It shall be City policy to encourage the sale of such property in accordance with the requirements of Administrative Code Section 23.3 and other applicable laws and to designate use of the net proceeds of such sales for the purpose of financing Affordable Housing in San Francisco.

(d) For any Property that is not transferred to MOHCD under this Chapter 23A but that the City sells for the development of 10 or more residential units, not less than 33% of the residential units developed on the property must be Affordable Housing, and (1) for any rental project, not less than 15% of the units affordable to households earning 55% of the Area Median Income, and for any ownership project, not less than 15% of the units affordable to households earning 90% of the Area Median Income, and (2) subject to financial feasibility, at least 50% of the residential units developed on the property affordable in furtherance of the November 2014 Proposition K affordable housing goals. All deed restricted housing developed as part of these projects shall remain affordable for the useful life of the project.

(Added by Ord. 227-02, File No. 011498, App. 11/26/2002; amended by Ord. 93-04, File No. 040537, App. 5/27/2004; , App. 11/3/2016)

SEC. 23A.9. [REPEALED.]

(Added by Ord. 93-04, File No. 040537, App. 5/27/2004; amended by Ord. 291-04, File No. 041316, App. 12/14/2004; repealed by Ord. , File No. 180217, App. 1/25/2019, Eff. 2/25/2019)