Legislation creates incentives to build more ADU housing units within existing houses

(SAN FRANCISCO) The Housing Development Incentive Program legislation aiming to create more Accessory Dwelling Units (ADU) within the existing houses citywide was adopted by the Board of Supervisors last week.

Supervisor Gordon Mar, author of the legislation, encourages the residential property owners to apply and take advantage of the financial assistance under the program. The planning Department is scheduled to accept applications in September this year.

This is the second phase of Mar's legislation on the Housing Development Incentive Program. Mar proposed a pilot on the program in District 4 (Sunset) last year. The pilot program to assist the homeowners to add the ADU in their properties in Sunset District was conducted by the San Francisco Planning Department in collaboration with the nonprofit ASIAN, Inc. and Mar.

Last week on March 1, the Board of Supervisors approved the legislation and expanded the Housing Development Incentive Program to the entire city.

"The cost is always a concern for the homeowners to apply for ADU," said Mar in a press event last week in the ASIAN, Inc. office. "Housing is so expensive in San Francisco. The young generation can't afford to live in the City. It will be a more comprehensive program. It is important for the Chinese community."

"We like to see more families living together. The program can meet the multi-generational housing needs," said Lamar Heystek, President of the ASIAN, Inc. which is a non-profit organization to provide technical support and services in the program.

"ASIAN, Inc. has brought in the technical expertise to the ADU incentives pilot, as well as the language and cultural competency to engage low- to moderate income homeowners on their options to add dwelling units to their homes," said Heystek.

Based on the pilot program last year in the Sunset District, the cost for creating a new ADU to a single family house is approximately from $175,000 to $250,000.

Under the legislation, the program would include technical assistance to the homeowners through pre-development, construction, and property management, and financial assistance and streamlined permitting through pre-approved plans.

Greater financial incentives with grants and no interest loans would be provided for homeowners who commit to rent or sell new units at an affordable level for middle income families.

The eligible applicants are allowed to create up to four units on each single family lot as well as a lot split in urban areas, in accordance with the State Senate Bill 9 that took effect in January 2022.