Mayor's Office of Housing

San Francisco Affordable Housing Fact Sheet

The San Francisco Housing Stock San Francisco is the second most dense large city in the United States after New York. The majority of housing units are in multifamily structures

Building Type	1990 Total	Percent of Total
Single Family	107,140	32. %
Multi-Family 2-4 Units	78,889	24.0%
Multi-Family 5+ Units	137,969	42.0%
Other	6,463	2.0%
Total Units in 1990	328,471	100.0%
Net Change 1991-1998	6,614
Total Units in 1998	335,085

Sources: 1990 U.S. Census STF1, STF1A; San Francisco Planning Department; Bay Area Economics, 1999 An unusually large proportion, 65.5%, of the housing stock (200,087 units) was renter-occupied, and only 34.5% (105,497 units) owner-occupied in 1990. In the United States as a whole, only 35.8% of all households were renters in 1990.

Rental Housing Cost Market rate rent levels in San Francisco have increased substantially in recent years, due to the strong regional and city economy, a shortage of new construction, and the attraction of a well-known quality of life considered exceptional by many across the U.S. The occupancy rate in San Francisco increased from 96.9% in 1997 to 98.1% in 1999. As a result of these occupancy levels, rents on newly occupied units in San Francisco rose 64% between 1990 and 1997. Since then, they have risen another 7.3% from 1997 to 1998, and another 8.3% between January and September 1999.

San Francisco Rental Housing Market, September 1999: Average rent of newly rented units

Unit Type	Studio	1 br	2 br	3 br	2 br & 3 br twnhse	Totals
Number in sample	3,132	5,463	4,688	844	127	14,254
Percent of mix	22%	39%	33%	6%	1%	100%
1999 Average rent of vacant unit (a)	$1,352	$1,773	$2,204	$2,871	$3,849	$2,016

Note (a): Year to September 1999 data. Sources: RealFacts, Inc.; Bay Area Economics, 1999. Ownership Housing Cost The San Francisco residential real estate market is one of the most expensive in the U.S., with rapid price appreciation in the current economic cycle, making ownership of housing extremely difficult for many working people and families. In fact, according to a February 1999 report from the National Association of Realtors, San Francisco has the highest median price of existing homes in the United States, at $337,000. By November 1999, according to the California Association of Realtors, this figure had increased to $420,000. This figure represents an average of prices for single family homes and condominiums, with the latter typically more affordable. San Francisco Household Income Estimates, 1999


Income Ranges	Percent of Households	Housing Affordability at mid-point of income range
Income Ranges	Percent of Households	Affordable rent	Affordable purchase price
Less than $15,000	14.5%	$148	n.a.
$15,000 to $29,999	15.4%	$523	$61,500
$30,000 to $49,999	19.4%	$960	$123,500
$50,000 to $74,999	18.9%	$1,523	$203,500
$75,000 to $99,999	11.9%	$2,148	$291,000
$100,000 & Over	19.9%	$3,085¹	$423,500¹
Med. HH Income	$50,753	$1,229	$161,500

¹Calculated at $125,000. Sources: State of California Department of Finance; Claritas, Inc.; Bay Area Economics, 1999. Housing Affordability: Rental Housing

Federal affordability guidelines consider housing to "affordable" if households spend no more than 30% of their gross monthly income on all housing costs, including utilities. Many households at a wide range of income levels in San Francisco pay a greater percentage of their income for housing. Rents greater than 30% of income are a greater burden for larger family households and low-income households.

According to the 1990 Census, 104,789 San Francisco households (38.1%) at all income levels expended 30% or more of their gross income on housing costs. Among extremely-low income households, fully 75% paid more than 30% of their income for housing, and 55% paid more than 50% of their income for housing. The 1993 American Housing Survey shows 137,900 households that expend more than 30% of gross income on housing costs; this figure represents 45% of total households. Of this number, 61,700 San Francisco households (20% of total households) spent more than 50% of gross income on housing costs. There is little doubt that the percentages are significantly higher today. From 1989 to 1999, the median rent for a 2-bedroom unit has increased from $928 to $1,940, an increase of 109%. During the same period, median incomes rose only 52%. At the lowest income levels, single persons on General Assistance can only afford a rent of about $103 per month, including utilities, a rent level virtually non-existent in a non-assisted housing unit. Single persons on SSI can afford at most a rent of $207 a month and a single person working full-time at a minimum wage could only afford to pay $299 a month for rent. A family of three receiving public assistance through CalWORKS could only afford $188 per month in rent. Availability of Publicly Assisted Housing The need for affordable housing is much greater than the availability of public programs to address that need These programs consist of public housing, rent certificates or vouchers (given to tenants), financial assistance to non-profit developers which reduce building costs, and inclusionary zoning requirements which require for-profit developers to include below market units in larger multi-unit developments.

Publicly assisted rental housing programs currently provide:

About 6,500 units of public housing.
Rental subsidies to about 6,000 households through the HUD Section 8 program, the HOPWA program and the Shelter Plus Care program.
About 8,600 units and 880 beds in group housing produced by non-profit developers through state and local housing programs.
About 8,900 units in developments directly assisted with financing and rental assistance from the U.S. Department of Housing and Urban Development Of the last category, an estimated 3,000 units are at risk of conversion to market rate within the next five years through prepayment of HUD mortgages and termination of Section 8 assistance. v Eligibility for participating in these programs generally is limited to households below 50% to 80% of the metropolitan statistical area median income (depending on the program). Since there are probably over 100,000 households in San Francisco who could qualify for these programs, the 30,000 households currently assisted are only a small proportion of those who could benefit if sufficient resources were available.

Housing Cost: Ownership Housing In San Francisco, housing costs for homeowners vary dramatically depending mainly on how long they have owned their home. Longtime homeowners may have mortgage payments and other housing costs that are much lower than current rents for a comparable unit. Due to the high cost of ownership housing, however, even many long-time lower income homeowner households overpay.

First-time homebuyers find it extremely difficult to buy a home in San Francisco. For households earning the metropolitan statistical area median income ($74,900 for a household of four), affordable house prices range from $168,125 for a one person household to $248,586 for a four person household.

How many homes are sold which are affordable to these households? During the three month period from July 1 to October 1, 1999, sales data of 1,420 full, confirmed, and verified sales established that the median sales price was $390,000. Only 80 sales were for less than $200,000, and only 111 sales were for between $200,000 and $250,000. The substantial majority of market rate homes for sale in San Francisco are priced out of the reach of low and moderate income households.

New Funds Available for Affordable Housing Development in 2000

Source	Estimated Funds for 2000-01	Programs
Federal Sources:
HOME	$6,200,353	Supportive, Family Rental, Non-Profit Preservation
CDBG	5,500,000	Supportive, Family Rental, Non-Profit Preservation
CDBG Program Income	240,000	Single Family Rehab
Local Sources:
Hotel Tax Fund	4,900,000	Senior, Supportive Housing
Citywide Tax Increment (CTI)	19,275,000	Supportive, Family Rental, At-Risk Preservation, Homeownership
SOMA TI	10,000,000	Supportive, Family Rental, Homeownership
Western Addition TI	12,275,000	Supportive, Family Rental, At-Risk Preservation, Homeownership
Mission Bay	4,000,000	Family Rental
Bonds: Development Account	16,842,750	Supportive, Family Rental, Senior, Housing Opportunities
Bonds: Downpayment Assistance Account	2,969,700	Homeownership
TOTAL FUNDS	$82,203,803

Allocation of Capital Subsidies to Local Funding Programs in 2000

Funding Program	Funds for New Projects	Est. New Units/Beds Assisted
Supportive Housing	14,337,755	430
Family Rental Housing	19,124,988	512
Senior Housing	7,400,000	119
Single Family Rehabilitation	2,600,000	73
Non-Profit Owned Housing	3,000,000	127
Preservation of At-Risk Housing	21,732,111	435
Homeownership:
First-time Homebuyers	6,462,700	125
Citywide For Sale Resale	500,000	13
Single Family Infill	1,000,000	10
Housing Opportunities:		300-450
Citywide	4,212,378
Mission Bay	100,000
Central Freeway Sites	12,000,000
BVHP Town Center	1,000,000
6^th Street Corridor	10,700,000
Totals (Note 1):	$104,169,932	2,144-2,294

Note 1: Includes $21,966,129 in funds carried forward from 1999.