The redevelopment of a car wash in San Francisco’s Lower Haight neighborhood may move forward after years of delays. Supervisor Bilal Mahmood has introduced legislation that would allow development projects to use the building code standards in place at the time their application was filed, rather than those in effect when construction begins, according to the San Francisco Chronicle.
Irvine-based developer 4Terra Investments received approval for a 203-unit residential project at 400 Divisadero Street in 2017. “The original approvals were based on the building code standards of 2016,” Mahmood told the Chronicle. “They have to keep going back and changing the project.”
Currently, San Francisco requires developers to comply with updated building codes if their projects are delayed, which can lead to repeated redesigns. The Touchless Car Wash site project has been stalled for nine years, with building codes updating every three years. As a result, 4Terra Investments has had to repeatedly alter its plans.
Since 2017, changes in mechanical, electrical, plumbing, structural and energy codes have increased costs for such developments by an estimated five to seven percent. Using regulations from 2016 could save the developer about $4 million.
“We wanted to see if we could solve the housing death spiral in which each delay results in other delays, compounding the problem,” Mahmood said.
The proposed project would create six stories of housing with 203 units on the former car wash property, including about 20 affordable units. Mahmood’s legislation aims to lower barriers for starting construction.
“At a minimum what it does is gives us a little bit of relief in lower construction costs,” said Amir Massih, partner at 4Terra Investments. “Having somebody in City Hall advocating on your behalf is a welcome change from the past.”
Despite these efforts, challenges remain due to possible increases in construction costs from tariffs and hesitancy among equity partners considering investment. If Mahmood’s proposal is successful and allows adherence to original plans, groundbreaking could take place next year.
