How San Francisco Ran Out of Affordable Housing Funds, and What to Do About It

Analysis and policy recommendations from Bay Area-based think tank SPUR focuses on how poorly designed inclusionary zoning the exact opposite of the desired effect.

1 minute read

November 18, 2018, 9:00 AM PST

By James Brasuell @CasualBrasuell


San Francisco

Lerner Vadim / Shutterstock

"San Francisco is running out of funds to build affordable housing, and the city will need to make changes quickly to fix the problem," according to an article by Adhi Nagraj.

One question that must be asked in response to this reality: How did a city riding an economic boom get so short on funding to solve one of its most visible and morally troubling challenges? And another question: What can the city do about it?

To explain how the city got to this point, Nagraj has this to say: "Many factors are at play, but a look at data from the city indicates that a combination of rising construction costs and new requirements is slowing down new development and curtailing incoming funds from development fees.

And as for what to do about it, Nagraj shares five immediate suggestions endorsed by SPUR, including:

  1. Audit the building code to reduce costs.
  2. Support pre-fab construction outside of San Francisco.
  3. Set new inclusionary requirements.
  4. Allow more density bonuses.
  5. Pause increased inclusionary requirements.

The article includes a lot more detail on the how of San Francisco's funding shortage, as well as more detail on each of the five recommendations for what to do about it.

Thursday, November 8, 2018 in SPUR

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 25, 2025 - Diana Ionescu

Person wearing mask walking through temporary outdoor dining setup lined with bistro lights at dusk in New York City.

Restaurant Patios Were a Pandemic Win — Why Were They so Hard to Keep?

Social distancing requirements and changes in travel patterns prompted cities to pilot new uses for street and sidewalk space. Then it got complicated.

June 19, 2025 - Diana Ionescu

Map of Western U.S. indicating public lands that would be for sale under a Senate plan in yellow and green.

Map: Where Senate Republicans Want to Sell Your Public Lands

For public land advocates, the Senate Republicans’ proposal to sell millions of acres of public land in the West is “the biggest fight of their careers.”

June 19, 2025 - Outdoor Life

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1 - Honolulu Civil Beat

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1 - KQED

Tents inhabited by unhoused people lined up on sidewalk in Los Angeles, California in front of industrial building.

California Homeless Arrests, Citations Spike After Ruling

An investigation reveals that anti-homeless actions increased up to 500% after Grants Pass v. Johnson — even in cities claiming no policy change.

July 1 - Times of San Diego

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.