San Francisco Affordable Housing Setaside & Fee Calculator

Land Use and Zoning California 3 Minutes Read ยท published February 06, 2026 Flag of California

San Francisco, California developers must evaluate whether new residential projects deliver on-site affordable units or pay in-lieu fees under the citys inclusionary housing policies. This guide explains how to calculate setaside versus fee options, where decisions are recorded, who enforces compliance, and the practical steps to apply, pay, or appeal. Use this information to prepare applications, cost estimates, and compliance timelines for projects in San Francisco.

Overview of Setaside and Fee Options

San Franciscos approach gives developers options: provide affordable units on-site at required income levels and durations, or pay an in-lieu fee designed to support off-site affordable housing. Which option applies depends on project type, size, and zoning. Exact thresholds, percentages, and affordability periods are set in municipal instruments and program rules; where those figures are not stated on a single city page they are maintained by the planning and housing offices listed below.

Confirm the required affordability period and percentage early in entitlement to avoid cost surprises.

Penalties & Enforcement

Enforcement of inclusionary requirements and fee payment is carried out by the Mayors Office of Housing and Community Development (MOHCD) together with the City Planning Department and other enforcement offices as specified in applicable municipal code provisions and program guidance. Where the municipal code or program guidance does not specify numeric fines on a single page, the code and agency rules govern enforcement and remedies (see Resources).

  • Fine amounts: not specified on the cited page.
  • Escalation: first, repeat, or continuing offence ranges are not specified on the cited page.
  • Non-monetary sanctions: enforcement may include stop-work orders, requirements to build or dedicate units, recorded affordability covenants, or litigation to compel compliance.
  • Enforcer: MOHCD and City Planning perform compliance reviews and may refer violations to City Attorney or code enforcement.
  • Inspection & complaints: file compliance questions or complaints through MOHCD or Planning intake; see Resources for official contact pages.
  • Appeals: appeal routes and time limits are set by municipal code or administrative rules; specific time limits are not specified on the cited page and should be confirmed with the enforcing office.
If the municipal code does not list a fine, enforcement often proceeds through corrective orders and recorded covenants.

Applications & Forms

Developers generally submit affordability plans, fee calculation worksheets, and recorded affordability covenants as part of building permit or discretionary review. Specific form names or numbers are not specified on a single city page; contact MOHCD or Planning for the current submission checklist and the exact worksheet or agreement templates.

Practical Calculation Steps

  • Confirm applicable inclusionary percentage and unit-size rules for your projects zoning and permit type.
  • Estimate required affordable unit count based on total residential units or square footage.
  • Request the current in-lieu fee schedule or fee formula from MOHCD or Planning; fees may be assessed per square foot or per unit.
  • Compare the present-value cost of building on-site units (construction, ongoing management) with the in-lieu fee to decide which option is financially preferable.
  • Incorporate any required recorded covenant, monitoring fee, or long-term affordability administration cost into the pro forma.
Always request the latest fee schedule and calculation worksheet from MOHCD before finalizing a financing plan.

FAQ

Who decides if a project can pay a fee instead of providing on-site units?
Decision authority rests with the city program rules and the reviewing departments; MOHCD and Planning implement and approve alternatives during entitlement.
Are fee formulas and amounts published?
Fee formulas are maintained by city offices; specific fee amounts or per-square-foot rates should be obtained from MOHCD or Planning since they may be updated periodically.
How long must affordable units remain affordable?
Required affordability periods are set by municipal rules and recorded covenants; check MOHCD guidance for the exact duration that applies to your project.

How-To

  1. Gather project scope: total units, unit mix, and proposed square footage.
  2. Request the current inclusionary percentage and fee schedule from MOHCD or Planning.
  3. Calculate required affordable units and compute the comparable in-lieu fee using the official worksheet or formula provided by the city.
  4. Compare costs and decide whether to deliver on-site units or pay the fee; document the decision in entitlement submissions.
  5. Submit affordability plan, fee payment or covenant documents with permit or discretionary application and follow up with MOHCD for recorded instrument processing.

Key Takeaways

  • Early confirmation of percentages and fees with MOHCD reduces entitlement risk.
  • Compare long-term costs, not just initial fees, when choosing setaside versus fee.
  • Contact MOHCD or Planning for official worksheets and recorded covenant templates.

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