Information for inclusionary developers

San Francisco partners with private developers to produce inclusionary housing units. These are below-market-rate units spread throughout market-rate buildings. There are about 5,000 inclusionary housing units throughout San Francisco. These inclusionary units include rental and ownership.

San Francisco builds inclusionary housing units under the following programs:

Inclusionary Housing Program, under Planning Code Section 415

For new housing proposals with 10 or more units. Developers must either:

  • Reserve a percentage of units in the new building to be rented or sold at a below market rate, affordable to low or middle-income households.
  • Reserve a percentage of units in another building they build to be rented or sold at a below market rate, affordable to low or middle-income households.
  • Pay a fee.
  • In some cases, dedicate land or protect existing units that will become affordable housing.

Developers work with both the SF Planning Department and SFMOHCD to participate in the Inclusionary Housing Program:

Office of Community Investment & Infrastructure (OCII) Inclusionary Program

Office of Community Investment and Infrastructure (OCII) is the successor to the former San Francisco Redevelopment Agency.

There are existing agreements between developers and OCII in certain project areas. Under those agreements, developers sell or rent a percentage of units below market rate price.

Ownership units are monitored under the Limited Equity Program (LEP) at MOHCD. Rental units are monitored under the Inclusionary Housing Program procedures.

Developers work with both OCII and SFMOHCD to manage OCII inclusionary units:

  • OCII
    • Determines the number of BMR units required
    • Designates the BMR units
    • Records restrictions on the BMR units
    • Applies other rules under their affordable housing program
  • SFMOHCD