Sausalito eases rule on affordable housing projects
Sausalito is waiving its affordable housing mandate for small-scale projects in its downtown commercial district.
The City Council voted 4-1 on Tuesday to exempt projects of four dwellings or fewer from its mandate that 20% of all new housing be affordable.
The Planning Commission had unanimously approved the change in mid-April.
Matthew Mandich, a city planner, said before the vote that the mandate “increases litigation risk and appeal potential” from landlords who cannot develop profitable projects. In practice, the affordability mandate has discouraged new housing in an area of the city that has few development options.
Housing projects of five or more dwellings must still be 20% affordable.
The city code changes also allow commercial district businesses to expand to the second floor under certain conditions. Previously, the city rules only allowed residences above the ground floor.
“This [law] also creates a lack of flexibility and hinders the use of historic structures for non-residential uses,” Mandich said.
The council vote came after a contentious debate where Councilmember Jill Hoffman criticized the city planners’ presentation and questioned the optics of Sausalito reducing its affordable housing options — especially after it has been criticized by state officials who police every municipality’s progress with meeting new housing goals.
“You’re changing it dramatically,” she said, referring to the housing regulations. “You’re changing the economic incentives for how a developer can exploit his property.”
“If anything, we’re probably actually encouraging more housing development on these second floors by eliminating this affordability requirement,” Mandich replied.
During public comments, Linda Fotsch, who is seeking to build a nine-story high-rise condo on the bayfront, criticized the mandate change.
“I agree with a lot of what Jill has spoken about this evening,” she said. “Basically, you have decreased the housing capacity in the heart of our city.”
During the discussion, Councilmember Melissa Blaustein expressed concern that longtime tenants might be evicted by greedy landlords if other affordable housing protections expire.
Hoffman wanted the council vote postponed. But council members Ian Sobieski and Steven Woodside said the city’s experts at the Planning Commission and inside City Hall all supported the changes and should be heeded.
Mayor Joan Cox called for a vote. The affordable housing mandate for small-scale projects was lifted with only Hoffman opposing.
Cox also instructed staff to draft an “anti-displacement” ordinance to protect vulnerable tenants. Those city officials said that they have been working on that.