San Francisco's density bonus is being used by for-profit developers marketing condos designated for seniors -- albeit for a price.
The four-story, 32-unit mixed-use Frank Norris Place was built for active seniors many of whom are lifelong renters. "But don't expect any senior discounts. Prices range from $449,000 to $629,000 for the 521- to 806-square-foot units. That equals $780 to $861 per square foot. The 12 parking spots go for an additional $50,000 each."
"Frank Norris Place wasn't always planned as an age-restricted development. Developer Parker Sorg purchased the property in late 1999 -- around the time building material prices shot skyward. He quickly realized that building the 16 two-bedroom units for which the property was zoned would not be profitable. The fact that there was only room for 12 parking spots in the basement of the building further limited the number of condos he could build. (The city requires one-to-one parking in market-rate developments.)
Then Sorg discovered section 207.4(b) of the city Planning Code, known as the density bonus. This would allow him to double the density of the development to 32 one-bedroom units if the condos were designated for seniors. {Editor's note: see related link} . Although two-bedroom condos are often easier to sell, many single seniors and those looking to pay less than $500,000 aren't deterred by the size of the one-bedroom units.
Historically, nonprofit organizations and affordable-housing developers have employed this little-known code section in exchange for government assistance. Frank Norris Place appears to be the only for-profit development in San Francisco putting it to the test.
When the density bonus is used in for-profit developments, there are no mandates regarding prices or mortgage interest rates, and anyone can purchase them as long as one person who is 55 or older lives there. This enables children to purchase the units for their aging parents."
"Using the density code is a powerful tool for providing denser housing developments for seniors with less parking in transit-rich neighborhoods", said Scott Falcone, director of development for Citizen's Housing Corporation, a nonprofit affordable-housing developer.
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