Can developer force us to lend the side yard for their constructions?

[Leatherneck2024]

A developer for affordable housing (AH) developer, Tenderloin Neighborhood Development Center (TNDC) is asking us to grant access of our San Francisco property (side yard) for them to build scaffolding for the construction of the 7-story AH next to the property line without setback. They claim that AH does not require setback to the property line per SB35. They offered to pay $25k for the inconvenience this will create for us. The construction will last 1.5-2 years. That means we would lost privacy for up to 2 years, while they have workers constantly access the scaffolding by our living room, bathroom, and bedroom windows. Since we are selling our house, we respectfully rejected their offer in writing from our real estate lawyer.

Question: Will the developer seek court order to force us to lend the side yard for their construction, since that may be the less expensive way for them to build the AH all the way to the property line without setback? I had suggested them to redesign to allow setback so they don’t have to come to my property, but they said that may be challenging, as they want the house as big as possible. I checked our title insurance report and there is no mention of easement between their and our property. Due to the AH to be built, so far 10/10 visitors like our house’s interior design and remodel, but all expressed concerns of the AH construction that will create unbearable noise and lowered the property value. So far after 3 weeks’ open house, not even one offer had come in. My realtor said if there were no AH next to it, our property would be sold for market value ($2.5M) within a week with multiple offers. Now, we may face 10-20% price reduction due to the AH to be built. I am stressed out everyday worrying that no one would buy our house, and the developer may pressure us again to lend our side yard for their use.

 

[quincy]

A developer for affordable housing (AH) developer, Tenderloin Neighborhood Development Center (TNDC) is asking us to grant access of our San Francisco property (side yard) for them to build scaffolding for the construction of the 7-story AH next to the property line without setback. They claim that AH does not require setback to the property line per SB35. They offered to pay $25k for the inconvenience this will create for us. The construction will last 1.5-2 years. That means we would lost privacy for up to 2 years, while they have workers constantly access the scaffolding by our living room, bathroom, and bedroom windows. Since we are selling our house, we respectfully rejected their offer in writing from our real estate lawyer.

Question: Will the developer seek court order to force us to lend the side yard for their construction, since that may be the less expensive way for them to build the AH all the way to the property line without setback? I had suggested them to redesign to allow setback so they don’t have to come to my property, but they said that may be challenging, as they want the house as big as possible. I checked our title insurance report and there is no mention of easement between their and our property. Due to the AH to be built, so far 10/10 visitors like our house’s interior design and remodel, but all expressed concerns of the AH construction that will create unbearable noise and lowered the property value. So far after 3 weeks’ open house, not even one offer had come in. My realtor said if there were no AH next to it, our property would be sold for market value ($2.5M) within a week with multiple offers. Now, we may face 10-20% price reduction due to the AH to be built. I am stressed out everyday worrying that no one would buy our house, and the developer may pressure us again to lend our side yard for their use.

There is no one here who can tell you if the developer will seek a court order to force you to let them use your property.

You could negotiate with them and, since you are selling your house anyway, offer them the house and property at its current sales price.

 

[Foamback]

A 1 1/2 to 2 year residential project is not the norm. We used to do five story wood frame on top of two floors concrete parking and commercial use in about ten months.

 

[quincy]

For the benefit of others, here is a link to 2024’s San Francisco Planning site, with information on SB423 (aka California Government Code §65913.4):

https://sfplanning.org/resource/sb423-application

 

[Foamback]

I looked at that quickly and didn’t see zero setback or requiring construction easements addressed.

 

[quincy]

I looked at that quickly and didn’t see zero setback or requiring construction easements addressed.

Leatherneck will want to inquire about that. I would be surprised if there is not a required setback … but San Francisco is sort of odd.

 

[Foamback]

I doubt there could be court enforced construction easements.

Every zero setback I’ve been around was built to be no maintenance, and the walls end up being a foot or two away from property line, after the trench, trench protection, footing drain and the foundation atop all that.

 

[quincy]

Leatherneck will have to accept that there will be construction going on next door, with or without the use of his property to facilitate the construction. The construction will more than likely affect the market value of his home. Probably adversely.

He can sit down with a real estate professional to discuss his various options and decide on which option stands to be the best for him financially - selling now at a lower price and leaving the construction chaos behind, negotiate with the developer and try to get more than $25,000 to better offset the probable loss in market value … whatever else can be thought up.

 

[Leatherneck2024]

Thank you for all the replies so far. FYI, in March 2023, the developer was forced to redesign their building by PGE to have 10 ft easement on the other side the building. Therefore, they changed design on my side to eliminate the original 3-4 ft setback. I had suggested selling my house to the developer then, so they can merge the lot (into a rectangular shape), as my house is the last puzzle in their land. However, they rejected and chose the hard way to build, i.e., digging trenching along the streets to bury utility lines underground. My architect friend told me if they purchased my house, would be able to build more units, with less height (5 stories vs 7 stories), and save $6.3M from tax payer money. However, because this is the first AH in our neighborhood, the developer did not want to compromise, instead, wasting tax payers money to make a statement that neighbors cannot affect their decision. We are not opposing AH, but want them to spend tax payers' money more wisely. Each of the unit in this AH will cost about $1M to build. That is what end up with them today, having an aggressive zero setback building design, and counting on us to give access for their construction. We are already going to lose about 10-20% of the market value without their access to our property, allowing them to set up scaffolding will mean no one will ever buy our house, unless we sell it at half price.

 

[quincy]

Thank you for all the replies so far. FYI, in March 2023, the developer was forced to redesign their building by PGE to have 10 ft easement on the other side the building. Therefore, they changed design on my side to eliminate the original 3-4 ft setback. I had suggested selling my house to the developer then, so they can merge the lot (into a rectangular shape), as my house is the last puzzle in their land. However, they rejected and chose the hard way to build, i.e., digging trenching along the streets to bury utility lines underground. My architect friend told me if they purchased my house, would be able to build more units, with less height (5 stories vs 7 stories), and save $6.3M from tax payer money. However, because this is the first AH in our neighborhood, the developer did not want to compromise, instead, wasting tax payers money to make a statement that neighbors cannot affect their decision. We are not opposing AH, but want them to spend tax payers' money more wisely. Each of the unit in this AH will cost about $1M to build. That is what end up with them today, having an aggressive zero setback building design, and counting on us to give access for their construction. We are already going to lose about 10-20% of the market value without their access to our property, allowing them to set up scaffolding will mean no one will ever buy our house, unless we sell it at half price.

Thank you for the additional information. It sounds like you already have explored the various options available to you. What you decide to do now is, of course, ultimately up to you.

Good luck.

 

[LdiJ]

Thank you for all the replies so far. FYI, in March 2023, the developer was forced to redesign their building by PGE to have 10 ft easement on the other side the building. Therefore, they changed design on my side to eliminate the original 3-4 ft setback. I had suggested selling my house to the developer then, so they can merge the lot (into a rectangular shape), as my house is the last puzzle in their land. However, they rejected and chose the hard way to build, i.e., digging trenching along the streets to bury utility lines underground. My architect friend told me if they purchased my house, would be able to build more units, with less height (5 stories vs 7 stories), and save $6.3M from tax payer money. However, because this is the first AH in our neighborhood, the developer did not want to compromise, instead, wasting tax payers money to make a statement that neighbors cannot affect their decision. We are not opposing AH, but want them to spend tax payers' money more wisely. Each of the unit in this AH will cost about $1M to build. That is what end up with them today, having an aggressive zero setback building design, and counting on us to give access for their construction. We are already going to lose about 10-20% of the market value without their access to our property, allowing them to set up scaffolding will mean no one will ever buy our house, unless we sell it at half price.

Personally, I would tell them no, and let the chips fall where they may. They may try taking you to court to try to force the issue, they may redesign to have a setback on your side, they may offer you a larger amount of compensation, or they may change their mind and buy your house. You won't know until you let things happen the way they are going to happen.

 

[quincy]

Is there any reason why you cannot delay the sale of your property until construction is completed?

 

[Leatherneck2024]

Is there any reason why you cannot delay the sale of your property until construction is completed?

My daughter is going to attend college at the other side of the Golden Gate Park, our work place are all on the other side. The traffic had become unbearable. We have planned to sell the house even last year, but was not able to find a suitable rental place that is close to our kids' school and our workplace until recently. It is just bad timing.

 

[quincy]

My daughter is going to attend college at the other side of the Golden Gate Park, our work place are all on the other side. The traffic had become unbearable. We have planned to sell the house even last year, but was not able to find a suitable rental place that is close to our kids' school and our workplace until recently. It is just bad timing.

Yes, it sounds like bad timing. That unfortunately happens, not only with something like the unexpected construction project that cropped up next door to your house but also with unfavorable interest rate hikes or depressed markets or pandemics or a whole assortment of other reasons.

Selling a house can be a headache even under the best of conditions.