It’s Time to Develop Multi-Family Housing Despite the Economy
BY MIKE HILLIARD, AIA

Originally published in the "Letters to the Editor" section of the San Francisco Observer, July 2003

Dear Editor:
For anyone who owns land in San Francisco, now is the time to build multifamily housing. It’s not just that the need has never been greater — even with an economy hard-hit by the dot.com bust and a decrease in tourist dollars, limited new construction combined with a high quality-of-life have kept our rents well above what median income households can afford. But the financial and social climates are decidedly in developers’ favor.

HUD-insured loans have never had better terms or been easier to secure.

These loans are currently at fixed rates under 5.5 percent, and include 40-year fully-amortized non-recourse construction and permanent financing for one price. The agency provides some of the most comprehensive financing packages for pre-construction, building, and mortgages.

The loan insurance processes have been streamlined and simplified, making the programs easier to use and available to a wider range of developers for projects with at least 16 units. The city gives additional price-breaks to plots proximate to major transit by reducing parking minimums — that’s a savings of as much as $100,000 per space.

And with essential services workers including firemen, nurses, and teachers fleeing San Francisco for lower rents in outlying areas, neighborhoods are more open to the development of projects that combine market-rate, workforce, and affordable housing that keep our communities healthy.

This year’s respected PCBC building conference is hosting three days of sessions identifying trends in multifamily housing. Their focus should be seen as a call to action to all those with developable property in the city.

Mike Hilliard
President of Hilliard Architects, Inc. in San Francisco