Pricing and Marketing Inclusionary Units

All new inclusionary units offered as a part of a project's Inclusionary Housing Program or Office of Community Investment and Infrastructure (OCII) obligation must be priced and marketed through the Mayor's Office of Housing and Community Development. Developers and their agents should be aware of the fact that fair and open access to all eligible and targeted buyers or renters is very much a part of the community’s concerns and the City’s below market rate programs. Developers should select marketing agents who will be successful in representing the developer in this aspect.

All inclusionary units must be marketed and rented or sold at the same time as market rate units in the building or at the same time of any "off-site" principal project.  MOHCD recommends that the marketing process begin no later than 6 months prior to the receipt of the building’s first certificate of occupancy.  (Certain OCII BMR units may require a longer lead time in marketing per their regulatory agreement.)  Please note that the process of pricing inclusionary units and completing and reviewing a developer's marketing plan may take up to 60 days depending on the nature of the project.

(1) Review Restriction Documents

Developers and their agents should begin by reviewing the restrictions on their inclusionary units before beginning the pricing and marketing process.  Failing to review and update these documents when needed often leads to delays in the process.   

Inclusionary Housing Program Projects

All Inclusionary Housing Program units will have a Notice of Special Restrictions (NSR) for the building that references the Conditions of Approval for the project. The correct NSR will state the Planning Code Section 415 requirements and include floor plans that show the location of the inclusionary units.  If the developer does not have this NSR, or if the NSR is missing the required floor plans, the first step is to work with the Planning Department to record this NSR against the property. The inclusionary units that are designated in the NSR should match the pricing request that will be submitted by location of the units and unit name.  If the existing NSR is incorrect in any other way (the overall building unit mix has changed, rental units are now ownership, etc.), the developer must also work with the Planning Department to revise the NSR before asking for inclusionary unit pricing. 

Office of Community Investment and Infrastructure (OCII) Projects

All inclusionary units restricted through the Office of Community Investment and Infrastructure (OCII) will have a recorded Declaration of Restrictions or other agreement with OCII. Developers should review their agreement before approaching MOHCD for pricing. All OCII inclusionary units should be clearly identified on a set of plans. The units should match the pricing request that will be submitted.

(2) Review Program Rules

Inclusionary Housing Program

Office of Community Investment and Infrastructure (OCII) Programs 

(3) Submit Pricing Request
Developers and their agents will complete and submit a pricing request, provided by MOHCD, with supplemental materials. The pricing request can be sent to chandra.egan@sfgov.org.
  •  Pricing Request Form for New Inclusionary Housing Program or Limited Equity Program Ownership Units - Please contact chandra.egan@sfgov.org
  •  Pricing Request Form for New Inclusionary Housing Program Rental Units - Please contact chandra.egan@sfgov.org
(4) Submit Marketing Plan
Developers and their agents will complete and submit a marketing plan template provided by MOHCD with the pricing approval.  MOHCD will provide this plan once pricing is approved.
 
 Among other requirements, the marketing plan will require: 
  • A 45-day marketing period for ownership units and 21-day marketing period for rental units.
  • An information session to be held in conjunction with MOHCD.
  • At least 3 open houses. 
  • Listing the units on the MOHCD "DAHLIA" system. 
  • Ads placed in 5 local venues over at least a 3-week period. 
  • Ads placed in one citywide venue over a 2-week period. 
  • Ads placed on social media over the marketing period. 
  • Professional outreach flyer.
  • Professional postcard for Certificate of Preference Holders.
  • Intensive local outreach. 
  • Outreach to local Board of Supervisors member.  
  • Signage on the building. 
(5) Market Units and Collect Applications
Applications for ownership units will be collected by the developer and their agents by the application deadline.  Applications for rental units will either be submitted on the "DAHLIA" system or sent to a P.O. Box in paper form.  Developers and their agents will enter applicant information into an applicant tracking sheet provided by MOHCD. This list becomes the formal list for the lottery. This process is outlined in the MOHCD Housing Preferences and Lottery Procedures Manual 2018. 
(6) Conduct Lottery
MOHCD will hold a lottery for the units in partnership with the developer. This process is outlined in the MOHCD Housing Preferences and Lottery Procedures Manual 2018
(7) Review Applications
Post-lottery, developers will review and approve applications in partnership with MOHCD.  In the case of ownership units, MOHCD will conduct the primary application review. In the case of rental units, the developer and their agents will review applications according to the BMR Rental Application Review Guidelines and Process.  
(8) Rent or Sell Units 
In the case of ownership units, developers and their agents will coordinate the closing process for buyers in conjunction with the process outlined in their approved marketing plan.

In the case of rental units developed through the Inclusionary Housing Program only, developers must attach an Inclusionary Housing Program Lease Addendum to the lease for the BMR unit.  

(9) Retain Documents and Prepare for Monitoring

Both ownership and rental units will be subject to ongoing monitoring and must adhere to document retention policies as dictated by MOHCD and other applicable external regulatory bodies.