San Francisco's innovative housing solution of $700-per-month sleeping pods has hit a bureaucratic wall. City officials rescinded their approval, citing noncompliance with the affordable housing program. Brownstone Shared Housing, the startup behind the project, had originally pitched these pods to answer the city's soaring rent prices, targeting a diverse demographic, including tech workers, artists, students, and service workers.
Despite their initial claims of approval from the Planning Department, it was revealed by The San Francisco Chronicle that the city has withdrawn its consent until Brownstone meets several requirements, including the payment of a $306,058.19 fee. The city's ruling hinges on a clause that mandates that residential projects with ten or more units must offer a percentage of units at below-market rates or pay a fee. This fee is deemed "massive" by Brownstone CEO James Stallworth, who refuses to pay, according to a San Francisco Standard report.
Stallworth's vision for affordable housing, captured by converting a former bank into a dwelling with 30-bed pods, has faced numerous hurdles. The city's Department of Building Inspection flagged the conversion as illegal and unsafe, prompting a yearlong negotiation to rectify zoning and safety issues. This ongoing saga has included the prospect of Brownstone limiting the complex to nine units, circumventing the affordable housing regulations that apply to larger projects.
A potential bailout for the pod project could come from legislation proposed by outgoing Mayor London Breed to waive inclusionary housing requirements for office-to-housing conversions. If enacted, Brownstone hopes to embark on another building next year, Stallworth told The Standard, as they have investors and prospective tenants ready. However, a path forward is contingent upon bypassing the space and fee requirements.
Meanwhile, the city takes a firm stand on the importance of safety. "We’re all-in on new housing so long as it is constructed safely," said Dan Sider, the Planning Department's chief of staff, in a statement obtained by the SF Standard. Sider also expressed concern over potential hazards, such as additional fire sprinklers or a larger fire escape, suggesting that further building modifications might be necessary.
