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February 2, 2024

SF To Ease Construction Bureaucracy

Hey there, Bay Area!

If you’ve been following the housing scene in San Francisco, you know it’s been a bit of a rollercoaster. For years, building in the city has been like navigating a maze with all the red tape. But guess what? Big changes might be on the horizon! Both San Francisco and Sacramento have waved their magic legislative wands to make it easier for developers to get new homes off the ground. Starting next year, SF will be fast-tracking projects, giving the green light without the usual marathon of hearings and appeals.

But before you start picturing a skyline filled with cranes, hold your horses. Despite the new laws, San Francisco is staring down the barrel of one of its toughest years for housing production. In 2023 the Planning Department authorized a little over 1,823 new housing units. Yep, you heard it right. It’s been a bit of a slump since the pandemic hit, and building permits took a nosedive. So, let’s dive into the nitty-gritty of what’s going on and why the city is facing this unexpected housing challenge

Legislation and Construction Growth

In a bid to shake off its reputation as a housing red tape labyrinth, San Francisco is gearing up for a significant transformation. Enter Senate Bill 423, crafted by state Sen. Scott Wiener, which takes a hard look at how cities are meeting their housing targets set every eight years under the Regional Housing Needs Assessment (RHNA). Building upon the foundations of Senate Bill 35 from 2017, this new legislation sets the stage for a game-changing shift in the city’s housing approval processes.

Starting this year, the tedious hurdles that often slow down housing approvals in San Francisco — think appeals, mandatory neighborhood meetings, and interventions by local lawmakers — might become a thing of the past. The amendment proposes automatic approval for housing projects that align with local codes in cities falling short of their housing targets.

Soooo? Let's start building?

Despite the optimism brought by the new legislation, the sluggish pace of housing development is anticipated to persist. High construction costs, interest rates, and a recovering but subdued real estate market are casting shadows on potential projects.

We Do Construction is experienced working within budgets and delivering successful construction projects on time.
We work to understand your needs and considerations to outline expectations.
We have direct relationships with suppliers to receive best rate available for your materials.

TLDR:

While the new legislation provides a breath of fresh air, it’s crucial to recognize that the journey toward revitalized housing production is multifaceted. Beyond the legal framework, economic factors continue to play a pivotal role.

Construction costs and rental market dynamics present ongoing challenges that demand strategic solutions. The commitment to meeting ambitious housing goals is commendable, but the city must navigate the intricate dance between policy adjustments and economic realities to usher a wave of new construction. Luckily We Do Construction has direct relationships with suppliers to pass on the savings to our clients.

Get in touch today!

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