San Francisco Bill Targets Five-Person Housing Rule, Allowing Up to Nine Lease Agreements

San Francisco Supervisor Bilal Mahmood introduced the Shared Housing Reform Act on July 2, 2025, a legislative effort aimed at modernizing the city's housing code to better reflect contemporary living arrangements. The proposed bill seeks to eliminate an outdated 1970s ordinance that restricts the number of unrelated individuals living together to five. This reform is particularly significant for San Francisco, a city predominantly composed of renters.

The core of Mahmood's legislation involves replacing the term "family" in the planning code with "household," which would permit up to nine lease agreements within a single dwelling. This change is designed to accommodate various forms of "chosen families" and co-living arrangements, recognizing the evolving social dynamics and housing needs in the urban environment. The Supervisor stated in a tweet, > "Yesterday, I introduced the Shared Housing Reform Act, which recognizes that today’s families and chosen families come in many forms. San Francisco is a city of renters — it’s time that our city code reflect our inclusive values."

The current five-person rule has been cited as a barrier to creating more affordable and diverse housing options. Architects and builders have reportedly avoided developing co-living spaces due to concerns about violating the existing city regulations. While the Planning Department has issued only 14 enforcement actions related to this rule since January 2020, its presence creates uncertainty and can deter residents from requesting necessary repairs for fear of eviction.

This legislative push comes amidst a notable exodus of young people from San Francisco, with the proportion of residents in their 20s decreasing significantly between 2013 and 2023. Co-living spaces, despite the restrictive regulations, have seen overwhelming demand, with one Russian Hill building receiving 400 applications for available spots last year. The proposed act aims to address this demand and provide more flexible, community-oriented housing solutions.

Supervisor Mahmood, who was elected in 2024 on a platform focusing on housing and public safety, emphasized the need to bring San Francisco's housing code "forward from 1978 to 2025." The Shared Housing Reform Act is positioned as a crucial initial step to streamline housing approvals and support the city's diverse renter population, fostering an environment where more varied and affordable housing products can emerge.