State to review San Francisco housing policies over long approval process, high costs

Experts say renting may be better than buying in Bay Area's tough housing market

SAN FRANCISCO – State officials announced Tuesday that they will conduct a review of San Francisco's housing policies, amid concerns about the slow progress in constructing homes amid the ongoing affordability crisis.

According to the Department of Housing and Community Development (HCD), the review was prompted by data provided by the city showing it has the longest timelines in the state for advancing housing projects to construction. 

"This review will synthesize and update existing research with new data and examine discretionary decision-making patterns that lead to abnormally long housing delays," the agency said in a statement.

Along with the lengthy timelines, the city's housing and construction costs are also among the highest in California, and the department has received more complaints about San Francisco than any other local jurisdiction in the state.

"We will be working with the city to identify and clear roadblocks to construction of all types of housing, and when we find policies and practices that violate or evade state housing law, we will pursue those violations together with the Attorney General's Office. We expect the cooperation of San Francisco in this effort," HCD director Gustavo Velasquez said.

HCD noted a recent report by the San Francisco Chronicle which noted that since 2015, Austin, Texas and Seattle have both approved construction for three times as many units per person than San Francisco.

"In California, we are facing a housing crisis of epic proportions, and it's going to take all of us, working together, to solve it," said Attorney General Rob Bonta. "The California Department of Justice's Housing Strike Force is working closely with state and local partners to enforce and defend state housing laws and support California families wrestling with the high cost of housing."

Following the announcement, Mayor London Breed said in a statement that she backs the review.

"I welcome this review and look forward to cooperating with the state to implement solutions needed to get rid of barriers and bureaucracy that stand in the way of building new housing," Breed said on Twitter. "For years, San Francisco has made it too hard to approve and build new homes. That must change."

State Sen. Scott Wiener (D-San Francisco), who has introduced numerous measures in the legislature in regards to the housing shortage, also voiced his support. 

"The days of SF & other cities flouting state housing laws are over. Accountability is here," Wiener said on Twitter.

The review comes as San Francisco is in the midst of working on its housing element, a detailed housing plan required by the state from all cities and counties. All local jurisdictions are required every few years to determine how much housing needs to built, at various affordability levels, to accommodate projected population growth.

Earlier this week, HCD officials rejected a draft version of the city's housing element.

For San Francisco, the city needs to plan for 82,000 new housing units by 2031. The city is obligated under state law to have a compliant housing element by January 31, 2023.

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