San Francisco Explores Lower Affordable Housing Construction Costs – NMP Skip to main content

San Francisco Explores Lower Affordable Housing Construction Costs

Phil Hall
May 22, 2018
Affordable housing in San Francisco is costing too much money to build, according to Mayor Mark Farrell in an address to a special “cost summit” designed to lower construction expenses

Affordable housing in San Francisco is costing too much money to build, according to Mayor Mark Farrell in an address to a special “cost summit” designed to lower construction expenses.
 
The San Francisco Chronicle reports the costs to build affordable projects in San Francisco are an average of $750,000 per unit, 17 percent more than the average of $627,000 two years ago. Complicating matters is last year’s federal tax cuts, which reduced the corporate tax rate from 35 to 21 percent, resulting in fewer companies looking to buy the Low-Income Housing Tax Credits which have been used for years to finance affordable-housing construction financing.
 
The summit brought together 50 non-profit developers, architects, labor leaders and contractors invited by the mayor to join one of three working groups to explore a more cost-effective approach to affordable housing construction. The working groups—which will focus on labor costs and workforce development, government regulation reforms cost-effective design and materials—are being given a two-month timeline to produce suggestions.
 
“We cannot provide affordable homes for our families if we cannot afford to build these homes to begin with,” Farrell said. “Our teachers, janitors, nurses and other working-class residents cannot wait forever for the city to find ways to build homes quicker and cheaper.”

 
Published
May 22, 2018
Redfin 2Q Revenues Up, Profits Down

Company officials said that in the third quarter they expect total revenue between $590 million and $627 million.

Industry News
Aug 05, 2022
Mutual of Omaha Mortgage Announces Wholesale Division

Loans available through its own platform and in partnership with ReadyPrice, LenderPrice, and Loansifter.

Industry News
Aug 05, 2022
MISMO Seeks Public Comment On 3 eMortgage Resources

Updates proposed to MISMO Business Glossary, eMortgage Glossary, and eModification Reference Flyer.

Regulation and Compliance
Aug 05, 2022
Deal With Opendoor Allows Zillow Back Into iBuying Business

As it releases rough 2Q earnings report, Zillow announces partnership with former rival.

Tech
Aug 04, 2022
Rocket Companies' Earnings Plunge 94% In 2Q

Mortgage originations fell 59% year over year, while rate lock volume fell 65%.

Industry News
Aug 04, 2022
Remembering Steven Schnall, Quontic Bank CEO

Schnall died in a motorcycle accident while on his way back from a biking trip to Canada. 

Industry News
Aug 04, 2022