Group housing developments have been on the rise in San Francisco lately. They provide two incentives for developers: smaller units mean more tenants/rental income and they have been exempt from San Francisco’s Inclusionary Housing Program, which requires developers to either pay money or create a specified number of below market rate units as a condition to creating the market-rate ones.
SocketSite reports that the City is now aiming to close that loophole. (At least one current developer of group housing units, Artthaus, says it would not be dissuaded from the business model as a result of an inclusionary housing requirement – and there seems to be a willingness to trade square footage for affordability, with a fair number of “Micro Units“.)
