SAN FRANCISCO—The developer of a tower in San Francisco’s Transbay redevelopment project may receive a variance to the city’s affordable housing requirements and be allowed to pay cash rather than offer units in the development at below-market rates.
The website socketsite.com says the Jay Paul Company would pay $13.8 million into an affordable housing fund in order loosen the requirement for 11 low-cost units in the 74-unit development.
The project at 181 Fremont Street is expected to cost $71 million to develop. Under the Transbay redevelopment plan, developers with residential projects are required to set aside 15% of their units at below-market rates.
If the deal is approved by the Board of Supervisors, the condominiums atop the 800-foot tower are expected to sell for more than $2,000 per square foot. According to the report, the developer is willing to pay more than $1 million per unit to be able to sell all of the units at the highest possible market price.
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