Developers frequently face lengthy and complex regulations for new projects or existing buildings—and San Francisco is no exception. To address this, Mayor Daniel Lurie signed an executive directive creating PermitSF to streamline the city’s permitting process, and this week he is building on that effort by introducing a legislative package with six ordinances designed to save developers both time and money.
A big measure includes erasing permits for chairs and tables on sidewalks, which could save small businesses anywhere between $300 and $2,500 each year. Another benefit is that small businesses will no longer need to obtain a permit to paint their brand name or market message on signs or buildings, which saves several hundred dollars.
Also, entertainment businesses looking to extend their hours won't need to have their permits inspected. Roughly 60 of these took around a month to process and cost a total of $12,000 during the last fiscal year. Additionally, routine tenant improvement permits are no longer necessary, such as new door installations. Moreover, Lurie wants to loosen ground-floor restrictions and allow for more commercial use. One example he listed was that businesses should be able to allow cafes or gyms to operate in buildings, while avoiding several months of delays and facing costs of as much as $150,000.
“For too long, permitting in San Francisco has been a bureaucratic maze, slowing down growth and opportunity. We can no longer afford to let outdated processes hold us back," District 2 Supervisor Stephen Sherrill, said in a statement.
"This legislation cuts through the red tape, making it easier for those who want to invest in our city’s future. “It’s time to empower those who are ready to contribute to our economy and create the vibrant city we all want to see.”
The action by San Francisco comes as California lawmakers are pushing to spur multifamily projects by incentivizing developers with state-backed public credits. However, it faces what appears to be a significant hurdle, as the electorate must pass a ballot initiative to amend California's constitution, as the legislation alone won't solve everything.
But California isn't the only state facing problems. Nationally, developers obtained just 12.4 multifamily housing units for every 10,000 people in the U.S during the past year, according to a report from Redfin. That's down 27.1 percent from the pandemic building boom and is 5.5 percent lower than in the years preceding the COVID-19 pandemic.
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