Developers of 'pipeline projects', which comprise tens of thousands of units approved but not constructed, have faced cost escalations and rising interest rates that deterred construction phase commencement.

A temporary amendment of the Inclusionary Housing Ordinance by November 1, 2023, reducing inclusionary obligations and other development impact fees, to incentivize construction of approved projects within 30 months of obtaining the first construction document.

The ordinance aims to rapidly advance 'pipeline projects' into construction, thereby providing the market with much needed rate and inclusionary units more swiftly.

To encourage the construction of residential and live/work development projects finally approved before November 1, 2023, that have not yet acquired a First Construction Document, by offering temporary reductions in affordable housing fees and obligations and extending the time to obtain a site permit post-approval.

Included within legislative amendments to the Planning Code (specifically the addition of Section 415A). A review of the economic feasibility of the City’s inclusionary housing obligations is mandated by the TAC no later than January 1, 2026.

Conditions set for projects approved after November 1, 2026, unless amended earlier. Requirements for developers to adhere to modified approval criteria, commit to reduced inclusionary housing fee percentages, and comply with restricted modifications until November 1, 2026.