Affordable Housing Bonus Program (AHBP)

Learn more about where the Program does and does not apply.

Areas highlighted in blue on the map below illustrate the key residential and commercial corridors where the Affordable Housing Bonus Program applies in the City. 

Click on the map image to go to the interactive, searchable map, where the program applies by parcel in the City.

Where the Program Applies

The following zoning districts are within the program area. Learn more about these zoning districts by viewing the City’s Zoning Map.

Where the Program Does Not Apply

Parcels in RH-1(parcels with one housing unit per lot in Residential, House Character Districts) and RH-2 (parcels with two housing units per lot in Residential, House Character Districts) zoning districts are not eligible for this program.

Area Plans (such as the Eastern Neighborhoods Community Plan , Market and Octavia Area Plan, and Balboa Park Station Area Plan, among others) are not eligible for either Local or State AHBPs as they have recently adopted comprehensive plans. The City is currently studying how the State Density Bonus Law would be applied for future projects within these area plan boundaries.

Do you have a specific question regarding the City’s Zoning Map and a Planning Code?

Please contact the Public Information Counter.

Case reports, Ordinance, Motions, Resolutions and Public Hearings by publication date – for those following closely

What is a density bonus?

A density bonus is an increase in the number of housing units and possibly height that are currently allowed under a specific zoning regulation, in exchange for building more affordable housing units and helping the City meet its housing goals.

For example: Under the Affordable Housing Bonus Program (AHBP), if a residential development includes 20 percent affordable housing units on-site, then the development could be granted up to a 35 percent density bonus, allowing for more total housing units than currently allowed. This is also known as an increased density. Or more specifically, an AHBP residential development proposed on a site that currently allows 10 housing units would be permitted to have 14 total housing units on-site, provided at least three of those units are affordable.

What is the State Density Bonus Law?

In 1979, the State of California adopted the State Density Bonus Law, which requires all cities and counties to offer a density bonus and other incentives to housing developments that include at least one of the following options:

• Five percent of total housing units available to very low-income households
• Ten percent of total housing units available to low-income households
• Ten percent of total housing units available to moderate-income households
• A senior citizen or mobile home park that limits residency based on age requirements for older persons

In addition to a density bonus, incentives could include changes in development design requirements such as building setbacks or provided parking.

In 2013, the State Supreme court clarified that any residential development that provides affordable housing units on-site, including those provided to comply with local inclusionary programs, enable project sponsors to request a density bonus under the State Density Bonus Law.

Read the State Density Bonus Law in detail here. Learn more about the 2013 court case here.

What is the City’s Inclusionary Housing Program?

Inclusionary housing is defined as a program that requires a specific portion of new construction to be made affordable to households with low- to moderate- incomes. The City’s Inclusionary Housing Program (Section 415 of the SF Planning Code) requires all market-rate residential projects of 10 housing units or more to contribute to San Francisco’s affordable housing supply. This can happen by:

• Contributing to the City’s Affordable Housing fund commensurate with the number of total project units;
• Building 12 percent of the affordable housing units on-site to low- and moderate-income households; or
• Building 20 percent of the affordable housing units off-site to low- and moderate-income households.

Learn more about the Inclusionary Housing Program.

Due to the 2013 the State court ruling, housing developments in San Francisco that elect to comply with the Inclusionary Housing Ordinance by providing 12 percent affordable housing units on-site may seek a density bonus and other incentives. Learn more about the 2013 California appellate court ruling here.

Why create a Local and State Affordable Housing Bonus Program (AHBP) when the State already published the Density Bonus Law?

The State Density Bonus Law is not extensive enough to meet needs specific to San Francisco and does not incentivize middle-income housing. The AHBP was developed to go above and beyond the State requirements by incentivizing and supporting permanently affordable middle-income housing, while protecting the character of San Francisco’s neighborhoods.

How does the City’s Inclusionary Housing Ordinance work with the Local and State Affordable Housing Bonus Programs?

The Local and State AHBPs build on the existing Inclusionary Housing Ordinance. The chart below highlights the key differences between the Inclusionary Housing Ordinance and the AHBP Local and State Programs.

Click on image to enlarge.

Under the AHBP, affordable housing is for very low, low, moderate, and middle-income households. The chart above illustrates how these terms are defined and what professions tend to fall into each category.

• Very-low income households: Earn up to 55 percent of the Area Median Income in San Francisco
• Low-income households: Earn up to 80 percent of the Area Median Income in San Francisco
• Moderate-income households: Earn up to 120 percent of the Area Median Income in San Francisco
• Middle-income households: Earn up to 140 percent of the Area Median Income in San Francisco

Half of the households in San Francisco earn below the AMI while the other half of households earn above the City’s AMI. AMI is set each year by HUD and is based on household size and the income households earn in the area. The City uses these annually published income limits to inform its various housing programs.

The total of all salaries earned by all people living in the same home equals the household’s total annual income. Based on the 2010 American Community Survey (also known as the U.S. Census), the typical San Francisco household has approximately 2.4 people.

See the Mayor’s Office of Housing and Community Development for more information about who qualifies for affordable housing.

What will AHBP developments look like?

In keeping with the character of the neighborhood areas and commercial corridors, AHBP residential developments will be required to place a strong emphasis on ground floor retail (also known as mixed-use buildings). In addition, the AHBP team will develop specific design guidelines that require proposed projects to include elements such as:

• Commercial spaces with active ground floor uses
• Transparent and operable windows, awnings, and informational displays
• Attention to design detail, including variation in material use

Click here for an overview of the existing San Francisco Planning design review process.

The following photos are examples of mixed use-buildings.

What is the design review process for AHBP developments?

Staff will complete a design review for all projects that elect to participate in either the Local or State AHBP. This review will include the various dimensions of proposed projects, including height, relevant setbacks, and other standard design considerations. Projects will be required to apply design solutions, such as:

• Planting living walls or vines on property line walls
• Window detailing
• Varying the building façade materials and depth from the sidewalk
• Providing an active ground floor

These design elements, among others, will ensure developments blend with adjoining buildings to ensure consistency with neighborhood character.

Will AHBP developments need to pay development impact fees?

Yes. The City imposes impact fees on development projects in order to mitigate the impacts caused by new development on public services, infrastructure, and facilities. For example, new residential and commercial projects pay impact fees to offset burdens placed on transit systems and sidewalks. Some impact fees apply to various types of development projects throughout the City, while others apply only in certain neighborhoods.

Learn more about the City’s Development Impact Fees.

When will Affordable Housing Bonus Program legislation be introduced and what is the process?

The legislation is scheduled to be introduced in the fall of 2015. Once legislation is introduced it will be publicly available through the Clerk of the Board and San Francisco Planning. The proposed legislation will trigger changes to the Planning Code and will be reviewed by the:

• Planning Commission (one meeting)
• Land Use Committee of the Board of Supervisors (one meeting)
• Board of Supervisors (two meetings)
• Mayor Lee signs for final approval

These meetings will be publicly noticed. To learn more, please sign up on the AHBP mailing list by emailing: CPC.AHBP@sfgov.org or visit our website here to learn about meetings and events.

What other City programs encourage affordable housing?

San Francisco has several other programs designed to create new affordable housing, protect the existing housing supply, and encourage higher levels of affordable housing through development incentives, such as:

Other programs include:

• Housing Authority
• Hope SF
• LIHTC
• Citywide Inclusionary Housing Program
• Small Sites Program

See the Mayor’s Office of Housing and Community Development, the Office of Community Investment and Infrastructure, and the San Francisco Housing Authority for more information and a complete listing of all programs.

Other questions received
Have you submitted specific a specific question? These documents provide answers to questions about the Affordable Housing Bonus Program submitted by the public to the Planning Department between October 1, 2015 and February 23, 2016.

Older versions: Document #1 - posted 01/15/16 and Document #2 - posted 01/26/16
Questions from the Open House: Questions and Answers
Richmond: Public Questions and Answers
District 5: Public Questions and Answers
District 7: Community Event Questions and Answers

Learn about the State Density Bonus Law, the 2014 Housing Element, the Inclusionary Housing Ordinance and Proposition K.

State Density Bonus Law

In 1979, the State of California adopted the State Density Bonus Law, which requires all cities and counties to offer a density bonus and other incentives to housing developments that include at least one of the following options:

• Five percent of total housing units available to very low-income households
• Ten percent of total housing units available to low-income households
• Ten percent of total housing units available to moderate-income households
• A senior citizen or mobile home park that limits residency based on age requirements for older persons

A density bonus is an increase in the number of housing units than are currently allowed under a specific zoning regulation in exchange for building more affordable housing units and helping the City meet its housing goals. In addition to a density bonus, incentives could include changes in development design requirements such as building setbacks or provided parking.

In 2013, the State Supreme court clarified that any residential development that provides affordable housing units on-site, including those provided to comply with local inclusionary programs, enable project sponsors to request a density bonus under the State Density Bonus Law.  

Proposed Affordable Housing Bonus Program

The AHBP was developed to go above and beyond the State requirements by incentivizing and supporting permanently affordable middle-income housing, while protecting the character of San Francisco’s neighborhoods.

The proposed Affordable Housing Bonus Program:

• Implements the 2014 Housing Element
• Builds on the City’s Inclusionary Housing Ordinance
• Helps the City meet the housing goals mandated in Proposition K

2014 Housing Element

In April 2014, San Francisco Planning updated the City’s Housing Element. This recent update includes Implementation Measure 38b, recommending the development of an Affordable Housing Bonus Program.

Implementation Measure 38b: Planning will develop a density bonus program with the goal of increasing the production of affordable housing. The program will be structured to incentivize market rate projects to provide significantly greater levels of affordable housing than required by the existing City Programs.

Inclusionary Housing Ordinance

The AHBP builds on the existing Inclusionary Housing Ordinance to support the development of a greater number of on-site affordable units. The City’s Inclusionary Housing Ordinance (Section 415 of the SF Planning Code) requires all market-rate residential projects of 10 housing units or more contribute to San Francisco’s affordable housing supply. This can happen by:

• Contributing to the City’s Affordable Housing fund commensurate with the number of total project units;
• Building 12 percent of the affordable housing units on-site to low and moderate-income households; or
• Building 20 percent of the affordable housing units off-site to low and moderate-income households.

Proposition K

In November 2014, San Francisco voters passed Proposition K, which established an additional affordable housing policy goal of constructing or rehabilitating at least 30,000 housing units by 2020, 33 percent of which are to be affordable housing available to low and moderate‐income households. More than 50 percent of the affordable housing units will be available to middle-income households, with at least 33 percent affordable for low and moderate-income households.