Mayor Lurie Celebrates Board of Supervisors Passage of Legislation to Increase Capacity for Housing in Soma, East Cut Neighborhoods

SAN FRANCISCO – Mayor Daniel Lurie today celebrated the Board of Supervisors’ unanimous first reading vote to approve legislation to allow for more housing development in the SOMA and East Cut neighborhoods. Sponsored by Mayor Lurie and District 6 Supervisor Matt Dorsey, the legislation represents the latest step in the city’s efforts to meet its housing production goals and transform downtown into a 24/7 mixed-use neighborhood. The board will vote on the second and final reading next week.

“We need sensible changes to reflect the needs of downtown San Francisco today. Unlocking the potential for more homes and residents downtown will fuel San Francisco’s comeback and drive long-term growth and affordability,” said Mayor Lurie. “With this decisive action, we are charting a clear path toward meeting our housing goals and building a downtown that is dynamic and resilient.”

Last month, Mayor Lurie and the Board of Supervisors partnered to overwhelmingly pass legislation co-sponsored by the mayor, Supervisor Dorsey, and District 3 Supervisor Danny Sauter, making it easier and more financially feasible to convert empty offices and commercial buildings into much-needed housing. The board also approved legislation co-sponsored by Supervisor Sauter to advance a 300-unit housing project by Martin Building Co. on Sutter Street in Lower Nob Hill that will deliver 101 affordable homes with state funding, maximizing the impact of the City’s affordable housing funds and bringing much-needed new housing opportunities to the neighborhood. Also last month, Mayor Lurie and State Senator Scott Wiener introduced state legislation to bring new restaurants and bars that will boost nightlife downtown.

The legislation recalibrates zoning requirements to reflect the current needs of San Francisco’s downtown by removing requirements that previously mandated large developments to generally maintain a two-thirds commercial space to one-third residential space ratio. The commercial requirements were included in the Transbay and Central SOMA Plans, adopted in 2012 and 2018 respectively, to encourage additional office development near transit in a downtown office market that was, at the time, highly competitive and almost fully occupied, with a vacancy rate at the end of 2019 of around 5%.

In the post-pandemic climate, with the city facing an 36% office vacancy rate, these zoning requirements have become outdated and effectively limit possible housing production in these areas. The zoning change passed today will unlock thousands of additional residential units downtown, while still allowing for mixed-use commercial development, in areas that are well served by transit and primed to welcome more residents, workers, and visitors.

“This legislative package is a golden opportunity to transform downtown, make progress on our housing production goals, and deliver a robust package of community benefits in out transit rich, urbanist core that I am proud to represent,” said District 6 Supervisor Matt Dorsey. “The mayor and I are in lockstep on spurring downtown development and showing that San Francisco, and SOMA, is open for business.”

“This legislation will help unlock barriers that have stood in the way of Central SOMA welcoming more residents,” said District 3 Supervisor Danny Sauter. “This will enable thousands more homes to be built alongside our burgeoning new Central Subway transit corridor, linking our eastern neighborhoods.”

The legislation was amended in the Land Use and Transportation Committee last week by Supervisor Dorsey to ensure that key community benefits that had been contemplated in the Central SOMA Plan, including land for affordable housing, open space and community recreation centers, will still be provided on major development “key sites” identified in the plan. This reflects input from the SOMA community and the recommendations of the Planning Commission to ensure a vibrant neighborhood that serves current and future residents at all income levels.

“This is a commonsense amendment that unlocks the potential for thousands of new housing units in Central SOMA. It will also help speed the delivery of long-promised community benefits, including affordable housing, parks and community facilities,” said Jesse Blout, founding partner of Strada Investment Group. “This summer, Strada is opening The Quincy, a new 500-unit residential community in Central SOMA. This policy change should speed the transformation of key sites in the neighborhood, many of which have been stuck in neutral due to the restriction that is now being lifted.”

“The post-pandemic reality is that we have stalled housing projects and a large amount of empty offices while the mandates for more housing remain. In Yerba Buena alone, the Central SOMA Plan includes more than 1,000 planned residences that have stalled. Shifting the plan to eliminate office requirements and emphasize housing will bring in residents who fuel sustainable economic growth, vibrancy and diversity. Those residents will be a catalyst for a neighborhood that thrives around the clock,” said Scott Rowitz, executive director of the Yerba Buena Partnership. “Yerba Buena is a model for what diverse downtown growth can look like. It's a district that combines housing, arts, culture, schools and neighborhood businesses with job generating hotels, tourist attractions and conventions.”

The Yerba Buena neighborhood, emanating for several blocks around Yerba Buena Gardens, includes SFMOMA, Yerba Buena Center for the Arts, Moscone Center and other iconic attractions, and boasts the highest concentration of museums, galleries, and public art in the city. Yerba Buena is home to more than 11,000 residents and is also located within the larger Filipino Cultural Heritage District.

“This zoning change represents a crucial step in adapting to San Francisco’s evolving needs,” said Rich Hillis, director of the San Francisco Planning Department. “By removing outdated commercial requirements, we are unlocking the potential for thousands of new homes in the heart of our city—bringing much-needed housing to Central SOMA while still supporting a vibrant, mixed-use downtown. This forward-thinking approach allows us to respond to shifting market conditions and ensure that our planning policies continue to foster a dynamic and resilient urban core.”