San Francisco Facing Builder’s Remedy Application

Builder’s remedy could be coming to San Francisco.

A new report from city economist Ted Egan suggests the city’s Family Zoning Plan will deliver only half the new housing required by the state and take twice as long to do it, suggesting a shortfall that could open the door for California’s so-called “builder’s remedy,” the San Francisco Standard reported.

If the rezoning plan does indeed slow down housing production to a point where it fails to meet mandates for new units laid out in the state’s “housing element,” then, builder’s remedy could be invoked to override the city’s zoning. As a result, most development proposals would be automatically greenlit, including those that break local height limits or threaten rent-controlled units.

The California Housing Defense Fund, which sues municipalities over noncompliant zoning, has already threatened legal action against the City of San Francisco. Pro-housing advocacy group YIMBY Action is urging the state’s Housing and Community Development Department to spell out what San Francisco must do to fix its plan to meet the state mandate, currently set at 82,000 new units by 2031.

If California’s Housing and Community Development Department mandates changes, it could help local elected officials look better to residents as the order comes down from the Capitol.

“It makes it a lot easier, if you’re a politician, to say, ‘I don’t love this, but Sacramento is making me do it,’” Natoli said.

That could help groups such as YIMBY Action as they push for revisions to San Francisco’s latest rezoning plan.

“It gives us cover to do more,” YIMBY Action organizing director Jane Natoli said. “[Egan’s] report, when you dig into it, says, ‘This is necessary but not sufficient.’”

San Francisco Planning Director Sarah Dennis Phillips noted that while Egan’s report claims the city risks state intervention and builder’s remedy, the Family Zoning Plan would bring rents down.

Still, the City has opened itself up to legal action that could force builder’s remedy down locals’ throats.

“I wouldn’t rule it out,” Natoli said of a possible lawsuit. “At a certain point, this issue is going to need to be litigated.”

— Chris Malone Méndez