The city missed a Nov. 25 deadline to make changes that would streamline its permitting process, a deadline determined by the California Department of Housing and Community Development, or HCD.
The date was set after an extensive state-funded study of city practices was done earlier this year, known as the San Francisco Housing Policy and Practice Review.
The report from the study, published Oct. 25, includes a checklist of obligations to be completed within a month. On Tuesday, HCD sent San Francisco a warning letter with a final December deadline.
Since April, Mayor London Breed has worked with Supervisors Joel Engardio and Matt Dorsey to meet the new obligations in their Housing For All plan, which was presented to the Board of Supervisors as the Constraints Reduction Ordinance.
In Tuesday's letter, the state threatened to take punitive action if the changes are not adopted in time.
Supervisor Myrna Melgar said: "We are cutting it close."
In its warning letter to the city, the HCD listed potential punishments for non-compliance. They could withhold affordable housing and infrastructure grants. They could issue the city monthly fines of $10,000 to $100,000 or more over time. They even suggested a lawsuit.
In the end, the state is requiring the city to accommodate 82,000 new housing units by 2031.
