San Francisco County officials are addressing the ongoing challenges in the housing market, particularly the impact of Homeowners Association (HOA) fees and rising interest rates on property sales. During a recent government meeting, discussions highlighted the pressing need for solutions to make housing more affordable and accessible for potential buyers.

A key focus was the relationship between HOA fees, interest rates, and the overall affordability of housing. Officials noted that high HOA dues and fluctuating interest rates are significant barriers for many prospective buyers. The current state of these financial factors is contributing to a stagnation in the housing market, making it difficult for homeowners to sell their properties.

To tackle these issues, the county has introduced a new manual for resale pricing that emphasizes affordability calculations. This approach will ensure that resale prices reflect the financial realities faced by buyers, taking into account HOA fees, property taxes, insurance, and other costs. The goal is to widen the pool of potential buyers by aligning prices with what households can realistically afford, which is defined as 33% of their gross income.

However, officials acknowledged that while these measures are a step in the right direction, they are not a comprehensive solution. The discussion revealed concerns about the lack of regulation on HOA fee increases, which can rise significantly without oversight. Recent legislation aimed at capping increases for new affordable housing projects has been implemented, but many existing properties remain unprotected from steep fee hikes.

The meeting underscored the urgency of addressing these financial barriers, particularly for 100% affordable housing projects that have historically delayed necessary fee increases, leading to inadequate funding for maintenance and repairs. As the county moves forward, officials are committed to finding effective strategies to enhance housing affordability and ensure that all residents have access to stable and sustainable living conditions.