South City aims for public housing measure

"We really have the opportunity to lead a paradigm shift," said Coleman, who believes public housing would allow "members of our community from all walks of life [to] share the same amenities, neighborhoods, school districts, parks."

Traditionally, both market-rate or affordable housing is constructed and operated by private developers. In the case of housing with below-market-rate rents that is restricted to those with incomes below the county median, nonprofit developers often fill the role.

But according to Coleman, even nonprofit developments "are not self-sustaining and usually require more government funding after 30 to 55 years," when deed restrictions expire. Coleman envisions public housing as not requiring additional government money after the initial build costs, as units with higher rents for higher earners would subsidize units with deeper affordability.

Other members of the council largely agreed with exploring the idea, agreeing there was a need to examine alternate means of housing production. Some pointed to other countries that house large portions of their population in public housing.

"This is a substantial commitment by the city," Councilmember Mark Addiego said. "I'm actually up for the challenge."

Vice Mayor Buenaflor Nicolas expressed some reservations, but said she would "support the idea if that is what the voters would like."

"I'm a little apprehensive about the business of owning it, we know this would be the city government's first try at this and there will be issues," she said.

Nell Selander, Economic and Community Development director, earlier this year said the creation of city-owned and operated units would likely cost the city up to three times as much as those constructed using the traditional method. The most recent 456 affordable units built in the city have come at a taxpayer cost of $27,000 per unit, she said.

The ballot measure, however, would also allow the city to acquire privately held buildings to convert to public housing, something for which Selander expressed more enthusiasm. She said the city could purchase "naturally affordable" buildings (those with low rents due to aging buildings or other reasons), and impose deed restrictions to preserve the low rents.

Deed restrictions that keep rents capped and units only available to low-income tenants often expire after 55 years. Councilmembers in the past have noted the need to preserve some units that could soon revert to charging market-rate rents.

Because of to a 1950 law added to the state Constitution, Article 34, jurisdictions must obtain voter approval before owning and operating their own housing. South San Francisco's initiative would seek approval, likely in November, to build an amount of public housing equal to 1% of the city's total stock, however, councilmembers indicated they may seek to increase that amount. South San Francisco has roughly 22,437 units of housing, according to the state Finance Department.

If passed, South San Francisco would join San Francisco, where voters in 2020 authorized the city to own and operate 10,000 units of housing.

corey@smdailyjournal.com

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