San Francisco Single-Stair Housing Proposal Faces Scrutiny

San Francisco’s Department of Building Inspection has drafted guidelines that would allow qualifying four- to six-story apartment buildings to use one interior staircase alongside an additional exit. The proposal has drawn scrutiny from housing advocates over its approval requirements, fire-safety provisions and potential impact on residential development.

Key Takeaways

  • The proposed guidelines cover qualifying apartment buildings between four and six stories
  • Eligible projects would require approval to use one interior staircase with an additional exit
  • Four-story buildings could use a fire escape as the secondary means of exit
  • Five- and six-story buildings would require an exterior staircase extending to the roof
  • Housing advocates question whether administrative guidelines can provide meaningful flexibility without a formal building-code amendment

San Francisco Drafts Guidelines for Single-Stair Apartment Buildings

San Francisco’s Department of Building Inspection has proposed a permitting approach that would allow qualifying mid-rise apartment projects to request approval for one interior staircase paired with a secondary exit.

The draft establishes a case-by-case review process rather than automatically permitting single-interior-stair designs. Developers would need to demonstrate compliance with building-safety requirements and obtain departmental approval.

The proposal addresses a design constraint affecting smaller residential buildings, particularly those on narrow or irregular lots. Requiring two interior staircases can limit the space available for apartments and other building functions.

However, the proposed alternative would retain a second means of exit. Housing advocates have questioned whether the administrative approach offers sufficient flexibility to address the restrictions they want changed.

Proposed Rules Set Additional Exit Requirements by Building Height

The proposed single-stair apartment design rules establish different requirements for four-story buildings and those with five or six stories. Both configurations would retain an additional means of exit.

For qualifying four-story apartment buildings, a fire escape could serve as the secondary exit. This would provide an alternative to installing two interior staircases, subject to the department’s approval.

Five- and six-story buildings would face stricter requirements. Under the draft, these developments would need an exterior staircase extending to the roof, rather than relying on a fire escape as the additional exit.

The distinction could influence how architects arrange residential units, corridors and other building features. An exterior staircase may free up interior space, but its placement must still satisfy applicable safety and access requirements.

The guidelines would not eliminate existing fire-safety obligations or automatically qualify every project within the specified height range. Each development would remain subject to the relevant design standards and review procedures.

Housing Advocates Question the Scope of the Draft Guidelines

Housing advocates have questioned whether the proposed guidelines would provide the regulatory changes needed to make single-stair apartment designs more widely available.

Their criticism centers on the difference between administrative guidance and a formal building-code amendment. Guidelines can establish procedures for reviewing alternative designs, while an amendment changes the underlying legal requirements.

Under the proposed approach, developers would continue seeking individual approvals rather than receiving general authorization to use a single interior staircase. Advocates argue that this could limit the practical benefits of the proposal, particularly for smaller projects operating within tight design and financial constraints.

The distinction also affects expectations for housing production. Allowing developers to request alternative staircase arrangements does not establish that additional apartments will be built or that construction costs will decline.

Any benefits would depend on whether the approved configurations provide workable layouts, meet safety standards and improve the financial feasibility of individual projects.

Building Approval Procedures Remain Central to the Proposal

The Department of Building Inspection’s draft places project-specific review at the center of the proposed process. Developers would need to establish eligibility, submit their designs and obtain approval before using an alternative staircase arrangement.

San Francisco’s revised transit housing strategy addresses zoning and residential density near public transportation. The single-stair proposal concerns a different aspect of development: how qualifying buildings provide access and emergency exits.

For architects and developers, the proposed guidance could influence early design decisions. Four-story projects could consider a fire escape as an additional exit, while taller qualifying buildings would need space for an exterior staircase extending to the roof.

These configurations would still need to comply with other applicable requirements, including fire protection, accessibility and building permits. Approval of a staircase arrangement would not replace the remaining development review process.

The practical value of the proposal would depend on how consistently the department applies its criteria and whether qualifying buildings can accommodate the required exits without creating other design constraints.

Review Process Will Determine the Proposal’s Next Steps

The Department of Building Inspection scheduled the draft guidelines for consideration by a panel of building-industry professionals on October 14, 2026.

The review process provides an opportunity to examine the proposed safety provisions, eligibility conditions and procedures for approving alternative staircase designs. Consideration of the draft does not, by itself, amend the building code or establish a final implementation date.

Further departmental action would determine whether the guidelines are adopted, revised or subjected to additional review. A formal building-code amendment would require a separate process.

For residential developers, the outcome will determine which configurations may qualify for consideration and how applications would be evaluated. Until the final requirements and implementation procedures are established, the proposal remains distinct from a generally available authorization for single-interior-stair apartment buildings.

Frequently asked questions

What is San Francisco’s proposed single-stair housing policy?

It is a draft set of guidelines that would allow qualifying four- to six-story apartment buildings to request approval for one interior staircase with an additional exit. Projects would remain subject to safety requirements and departmental review.

Which apartment buildings could qualify under the draft guidelines?

The proposal covers qualifying four-, five- and six-story residential buildings. Eligibility would depend on building height, the proposed exit arrangement and compliance with applicable requirements.

What additional exit requirements would apply to eligible buildings?

Four-story buildings could use a fire escape as the additional exit. Five- and six-story buildings would require an exterior staircase extending to the roof.

How do the proposed guidelines differ from a formal building-code amendment?

The draft guidelines establish an administrative approach for reviewing alternative staircase configurations. A formal amendment would change the governing building-code requirements through the applicable legislative or regulatory process.

What approval steps remain for San Francisco’s proposed stairway rules?

The draft was scheduled for review on October 14, 2026. Further departmental action would determine the final guidelines, eligibility conditions and procedures for approving qualifying projects.

For Founders Paid in Equity, the Calendar Matters as Much as the Valuation

By: Dr. Tamara Patzer

In brief: A founder with a high valuation and little cash can still cross California’s top 1% income line the year the equity turns into money. Stock issued after July 4, 2025 can qualify for tiered exclusions at three, four and five years. This feature explains the timeline, its limits and the questions a New Orleans tax attorney says founders should settle early.

A founder can be worth a fortune on a term sheet and still wonder how to cover a down payment. That is how equity works. The day it turns into money, the same founder can land far above California’s income line for the top 1%, which a 2026 estimate sets at $987,325 of adjusted gross income1. Tax and estate attorney Todd M. Villarrubia, who practices in New Orleans and wrote Entrepreneurial B.E.A.S.T. Mode™, says the founders who do best are the ones who treated the calendar as part of the plan from the start.

How much income does it take to reach the top 1% in California?

About $987,325, in SmartAsset’s 2026 projection1. The figure moves 2022 IRS filing data forward to 2026 and describes filers rather than households1. By the same projection, Washington is at $903,303 and Texas at $817,1581.

For a founder paid mostly in equity, the line is a poor guide to ordinary years. Salary may sit far below it. The year of a sale, a tender offer or a secondary can sit far above it.

What changed for qualified small business stock?

For stock issued after July 4, 2025, Jones Day reports that a shareholder can exclude 50 percent of eligible gain after holding the stock three years, 75 percent after four and 100 percent after five2. The per-issuer gain cap rises from $10 million to $15 million, and the gross assets limit at issuance rises from $50 million to $75 million, with both amounts indexed for inflation starting in 20272. The expanded rules apply only to stock issued after that date2.

Those are the headline numbers. Whether a particular company’s stock qualifies depends on facts the source does not cover, including the type of business and the type of entity. A founder cannot assume the exclusion applies, and the assumption is exactly what a licensed attorney should test early.

Why does the clock start earlier than the exit?

Because the holding period runs from issuance, not from the day the founder starts thinking about a sale. Stock issued after July 4, 2025 has to be held three years to reach the first tier and five to reach the full exclusion2. A founder who gets stock now and receives an offer in eighteen months is on a different footing from one who waits.

Villarrubia’s book makes the general point about timing: “Advanced planning doesn’t begin at exit; it begins years before opportunity knocks.” He also ties it to structure. In his words, “Estate planning is more than just creating documents; it’s about strategically structuring ownership before opportunities arise.”

The same logic applies to ordinary gains. Long-term capital gains are taxed at 0, 15 or 20 percent, and an asset must be held more than one year to qualify3. The IRS lists a higher maximum rate of 28 percent for the taxable part of qualified small business stock3. Which rule governs a given sale is a question for a tax professional.

What else shows up in a sale year?

Investment income can carry a 3.8 percent Net Investment Income Tax once modified adjusted gross income passes $200,000 for single filers or $250,000 for joint filers4. For a founder whose income usually sits below that, a sale year can bring the surtax into play for the first time.

None of this is a reason to avoid a sale. It is a reason to model the year before the term sheet is signed, since some of the choices that shape the result cannot be made afterward.

What does the book say about the gap between paper and cash?

Villarrubia describes the problem in a single sentence: “It isn’t until a liquidity event that their wealth is fully realized; until then, it’s largely paper value.” A founder in a high-priced city may feel the gap daily, since the valuation does not pay the rent.

His response is not to rush a sale. It is to plan around the possibility of one: how the shares are held, who else owns them, what happens if a cofounder leaves and how the family would be affected. Those questions are easier to answer when no one is waiting on the answers.

What should a founder write down now?

A one-page timeline is enough to start:

  • The date each block of stock was issued, and who holds it.
  • Whether the company has tested its eligibility for any stock exclusion.
  • The estimated income in a sale year, compared with the thresholds above.
  • Who the founder’s advisers are, and whether the tax and legal advisers have met.
  • What the founder wants the money to do, for the family and for the company.

Why do cofounders and family matter to the timeline?

Because equity is rarely held by one person. If a cofounder leaves, a spouse has an interest or a trust holds some of the shares, the plan has to account for each holder. A tax result that works for one shareholder may not work for another. Villarrubia’s point is that the questions of who owns what, and under what agreement, should be settled while everyone is still on good terms.

What should a founder do the day after hitting a milestone?

Write down the date and the facts. When were the shares issued? What was the company’s size at issuance? Who signed? Memory fades, and paperwork that was easy to find in the first year can be hard to find in the fifth. A short note in the company’s minute book, copied to the tax professional, costs nothing and spares trouble later.

Common questions

Does every founder qualify for the stock exclusion? No. Eligibility depends on facts about the company and the stock that this article does not cover.

What if my stock was issued before July 4, 2025? The expanded rules in the source apply only to stock issued after that date2. Earlier stock may fall under different rules, and a licensed professional can say which.

Is the California line the same as being wealthy? No. It is an income threshold for one year, and net worth is separate1.

Sources

  1. SmartAsset, Income Needed to Be in the Top 1% in Every State (2026)
  2. Jones Day, Qualified Small Business Stock Benefits Expanded in New Tax Bill (July 2025)
  3. Internal Revenue Service, Topic no. 409, Capital Gains and Losses
  4. Internal Revenue Service, Topic no. 559, Net Investment Income Tax

About the author. Dr. Tamara Patzer is a publisher and former newspaper editor. She was on the staff of The Charlotte Sun when it was named a 2005 Pulitzer Prize finalist for its Hurricane Charley coverage.

About the source. Todd M. Villarrubia is an attorney with an LL.M. in Taxation and a Juris Doctorate. He is an Accredited Estate Planner, a Board Certified Expert in Estate Planning and Administration, and a Fiduciary Investment Advisor Representative. He is the author of Entrepreneurial B.E.A.S.T. Mode™. Wealth Planning Law Group, 101 W. Robert E. Lee Blvd., Ste 404, New Orleans, LA 70124. Phone: 504-982-8207; email: todd@lawealthplan.com; website: https://lawealthplan.com/?utm_source=newsanchored&utm_medium=san-francisco-post&utm_campaign=top-1pct

Attorney advertising. Sponsored feature written on behalf of Todd M. Villarrubia. This article is general information, not legal or tax advice, and reading it does not create an attorney-client relationship. Results vary.

Disclaimer: Sponsored feature written on behalf of Todd M. Villarrubia. This article is general information, not legal or tax advice, and reading it does not create an attorney-client relationship. Results vary.