Commission Rebuffs Deeper Affordability Rules for Demolitions in Equity Areas

San Francisco's Planning Commission voted 5-2 on Nov. 5, 2026, to recommend that supervisors reject the core of an ordinance requiring deeper affordability when homes are demolished in the city's Priority Equity Geographies, despite hours of testimony from tenants and housing groups. The recommendation now heads to the Board of Supervisors, where Supervisor Cheyenne Chen has said she will not drop the measure's central affordability requirement. The same commissioners also approved the city's first adult sex venue under a 2022 code change, legalized a Millennium Tower penthouse merger and split 4-3 on a neighbor fight that reopened questions about discretionary review.

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• 5-2 vote recommends disapproval unless modified for demolition-replacement rules in Priority Equity Geographies
• Dozens of tenants and housing groups from Chinatown, the Mission, SoMa and Bayview backed the ordinance
• 40 12th Street adult sex venue approved 7-0, the first authorized since the 2022 code change
• Divided 4-3 vote declines discretionary review of an 18th Street addition and approves a modified design
• Millennium Tower penthouse merger legalized 6-1 over no-net-loss concerns

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Equity Areas Lose Bid for Deeper Replacement Rules

The basics: Planning Code Section 317.2, created by the Tenant Protections Ordinance effective Feb. 6, 2026, codifies state SB 330 replacement and tenant protections. When a project demolishes housing and tenant incomes are unknown, citywide CHAS data set the affordable share of replacement units at about 51%. The look-back period is five years. Area median income (AMI) is the benchmark for those affordability tiers.

Why it matters: Supervisor Cheyenne Chen's ordinance (Board File 260836) would have used neighborhood-specific CHAS data in the Priority Equity Geographies Special Use District (PEG SUD). That change would raise the replacement requirement to about 69% affordable, with a 30% AMI tier covering about 41% of units in rental projects. Advocates called it the first real use of the equity designation.

Where things stand: The proposal would also have:

• Extended the look back to seven years citywide
• Replaced moderate-income rent-controlled units with deed-restricted 80% AMI units
• Added about 30 blocks south of Ocean Avenue to the PEG SUD

Staff, led by Veronica Flores of the Planning Department, recommended disapproval unless modified. Staff cited financial feasibility, pointing to Controller and Technical Advisory Committee analyses and the June cut of inclusionary requirements to about 5%. Staff also raised concerns about a possible shift from rental to ownership projects, the loss of right of return for moderate-income tenants, the difficulty of extremely low income units in unsubsidized market-rate buildings, map precedent and complexity. Staff supported the MOHCD income-limit and cleanup amendments.

Staff also said demolitions are rare. The city has averaged about 18 demolished units per year from 2012 to 2025, and it has received eight applications since February 2026, none in the PEG SUD.

The other side: Cheyenne Chen, Supervisor, District 11, framed the bill as more than a technical fix. "But this is a strong signal that the city is moving into also protecting our existing community," she said. Commissioner McDonald argued "that a citywide standard is not an equitable standard."

"I will continue to support development and also think it's critical when we have these opportunities to try to preserve our affordability, especially for our renters," said Commissioner Chavez.

Decisions and stakeholder impacts: The majority cited existing protections, the rarity of demolitions, feasibility concerns and the new Proposition C Housing Trust Fund. "But the good intentions have to produce good outcomes," said Commissioner Lydia So, who proposed having the Controller and the Technical Advisory Committee study deeper PEG affordability. "We really have to start building in this town because only then are there options," said Commissioner Sean McGarry.

Supervisor Chen agreed to a five-year look back and to dropping the map amendment. She would not agree to removing the PEG-specific affordability requirement. The adopted motion follows all three staff modifications and encourages the board to increase protections for extremely low income tenants.

• For (5): Commissioner Chen, Commissioner McGarry, Commissioner So, Vice President Koppel and President Amy Campbell
• Against (2): Commissioner Chavez and Commissioner McDonald
• Absent: 0

Commissioner Chen, who sits on the commission and is distinct from the supervisor, had said she was "inclined to support the staff recommendation." Vice President Koppel, who seconded the motion, said: "But today I'm gonna line up with the staff's recommendation."

What's next: "We do need to transmit your final action and your recommendation to the clerk by December 17th," Flores said. Missing that deadline would result in a de facto disapproval. The Board of Supervisors will decide the contested affordability piece.

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Tenant Coalition Packs the Hearing

Why it matters: Dozens of single-room occupancy (SRO) tenants, immigrant families and service providers turned out in an organized show of support. Groups included SOMCAN, MEDA, Young Community Developers, SF Communities Against Displacement, United to Save the Mission, RepSF, the Chinese Progressive Association and the Community Tenant Association.

Where things stand: Yu Mao, a Chinatown SRO resident of 16 years, said families cannot afford higher rents. Guo Rong Wong, vice president of the Community Tenant Association, said the group has more than 3,000 members and urged deeply affordable housing for displaced seniors and families.

The coalition rebutted staff point by point:

• "This is a narrow targeted intervention," said Jessica Rubio, policy director of the Mission Economic Development Agency.
• "Inclusionary housing requirements and replacement housing requirements are two distinct obligations," said Zach Weisenberger of Young Community Developers. He added that the Controller's analysis did not test this adjustment.
• "We are not seeing balanced outcomes in an ongoing fashion," said Peter Papadopoulos of United to Save the Mission.

The coalition's red line: Avi of SF Communities Against Displacement said the groups could accept most staff amendments, but not deletion of the PEG-specific requirement. "Removing that means gutting and amending this legislation," he said.

Earlier, during general public comment, Zachary Friel of SOMCAN presented a survey of 485 people. Respondents reported displacement fears and called for stronger rent control, eviction protections and affordable housing funding.

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Divided Commission Spares 18th Street Addition

Where things stand: The project at 3837 18th Street, near Dolores Park, adds "a 950-square-foot third floor vertical addition at rear of a 2-story single family home," said Trent Greenan, Planning Staff Architect. Mediation had already produced a sloped roof, a lower ceiling and a lower parapet. Staff recommended against taking discretionary review because the project complies with the Planning Code and design guidelines.

The other side: Neighbor Amy Silverstein, the discretionary review requester at 3833 18th Street, said the addition blocks light and boxes in her home. "My ask is that the addition be set back only 3 feet from the side of the property line," she said. Sponsor Garrett Mitchell responded: "We ask you to follow Planning's recommendation and approve the modified design."

Decisions and stakeholder impacts: Commissioner Chen preferred restoring the pre-discretionary review design. Commissioner McGarry instead moved to approve the project as modified, which Silverstein said she could accept.

• For (4): Commissioner Chavez, Commissioner McGarry, Commissioner McDonald and Vice President Koppel
• Against (3): Commissioner Chen, Commissioner So and President Campbell
• Absent: 0

What's next: Commissioners and staff discussed creating a range of possible outcomes so that discretionary review is not a one-way ratchet. Commissioners invited staff to take a firmer line on code-compliant projects.

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SoMa Adult Venue Wins Unanimous Approval

Where things stand: Sanctum Baths will convert a 7,516-square-foot building at 40 12th Street into an adult sex venue. Staff described it as the first such venue authorized since the 2022 code change, framing it as a safe, identity-affirming space after the 1980s closures. Sponsor Kevin Bourne described professional management, de-escalation training, defibrillators and security. He said operating hours are in flux and may be 24 hours.

"This project is necessary, compatible, and highly desirable," said Jonathan Ohinaga, a board member of the Leather and LGBTQ Cultural District and a nearby bar owner.

Decisions and stakeholder impacts: The conditional use passed 7-0 on a motion by Vice President Koppel. Commissioners asked the sponsor to manage any 24-hour operation carefully for residents. Staff noted code conditions on lighting and security.

The project also needed a variance because not all windows will be fully transparent. Zoning Administrator Corey Teague supported it because the glazing is retained and the space could be reused later. "I do think in this case, this is a project that does meet the requirements for the variance, and I do intend to grant it," Teague said.

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Millennium Tower Merger Legalized Over Dissent

Where things stand: Penthouse units PH 4 and PH 5 at 301 Mission Street were merged without a permit shortly after the building was completed in 2008-2009. The units were only ever owner-occupied and sold as a single unit in 2022. Representative John Kevlin said owner Dr. Neil Cohen relied on the seller and the assessor's office. "The department believes that the project would be desirable for and compatible with the surrounding neighborhood and recommends approval with conditions," said Elizabeth Mau of the Planning Department.

Decisions and stakeholder impacts: Commissioner McGarry saw no real loss of housing. Commissioner So said she was torn but opposed the merger because it reduces the housing stock.

• For: 6
• Against: 1 (Commissioner So)

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Minor Items

• Consent calendar passed 7-0: It includes a formula retail cannabis legalization at 3326 Mission Street, a massage establishment at 4444 Geary Blvd. and a yard-structures Planning Code amendment (BF 260963).
• Measure F merger: The Planning Director said voter approval lets the Planning Department and the Department of Building Inspection finish merging. The director projected a fee surplus that could hold fees flat or lower them.
• Board of Appeals: The board voted 3-1 to maintain a full permit suspension at 3829 25th Street after unauthorized demolition. The project will return for conditional use.
• 3832 18th Street: A sponsor previewed a three-unit project under SB 423 ministerial review, scaled back from a 44-unit plan. No action was taken.
• Withdrawn: Discretionary reviews at 32 Ellert St. and 116 18th Ave. were withdrawn.

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Looking Ahead

The commission's recommendation on Board File 260836 must reach the clerk of the Board of Supervisors by Dec. 17. The department also plans a joint budget and a possible joint hearing with the Building Inspection Commission. The Planning Department and Permit Center will be closed Wednesday, Nov. 11.