The San Francisco Board of Appeals on Wednesday reversed an earlier decision to chop a floor off a five-story development at 1050 Valencia Street.

In a unanimous vote the board will allow a fifth floor on the 12-unit development at Valencia and Hill streets but will require the architect to design the top floor with a 10 to 12-foot setback.

Both the developer and the opposition have 10 days to request a rehearing, according to Cynthia Goldstein, the executive director of the Board of Appeals. If neither side asks for a rehearing, Goldstein said, Wednesday’s vote will become final.

Steven Williams, an attorney for the neighbors, said that in the months that followed the December vote, the board “came under tremendous pressure,” from the “cheerleaders for development.”

On Wednesday, he said, the board “kind of split the baby in half” by agreeing to the fifth floor with setbacks.

Williams said the neighbors would consider settling with the developer to insure that affordable housing is built on site and that a car share space is added. They would also like an agreement that the new tenants not apply for residential parking, Williams said.

Stephen Antonaros, the architect, said they have already agreed to on-site affordable housing. While the developer, Mark Rutherford, still has the option to pay a fee instead of building on site, doing so would require him to go through another approval process with the Planning Department, Antonaros said.

Any change on the on-site affordable housing could present approval problems since some of those who spoke in favor of the development on Wednesday explicitly tied their support to the need for more affordable housing.

In terms of a space for a City CarShare vehicle or a Zipcar, Antonaros did not see any opposition, but wasn’t entirely sure what ADA or other requirements that would entail. He doubted, however, that the developer could legally restrict the rights of tenants to apply for parking permits.

Antonaros said he will redesign the 12-unit building to accommodate the setbacks and that those plans will be resubmitted to the Planning Department.

The decision was first reported on SocketSite.