San Francisco City Zoning Code
ARTICLE 4
DEVELOPMENT IMPACT FEES AND PROJECT REQUIREMENTS THAT AUTHORIZE THE PAYMENT OF IN-LIEU FEES
SEC. 401A. FINDINGS.
(a) General Findings. The Board makes the following findings related to the fees imposed under Article 4.
(1) Application. The California Mitigation Fee Act, Government Code Section 66000 et seq. may apply to some or all of the fees in this Article 4. While the Mitigation Fee Act may not apply to all fees, the Board has determined that general compliance with its provisions is good public policy in the adoption, imposition, collection, and reporting of fees collected under this Article 4. By making findings required under the Act, including the findings in this Subsection and findings supporting a reasonable relationship between new development and the fees imposed under this Article 4, the Board does not make any finding or determination as to whether the Mitigation Fee Act applies to all of the Article 4 fees.
(2) Timing of Fee Collection. For any of the fees in this Article 4 collected prior to the issuance of the certificate of occupancy, the Board of Supervisors makes the following findings set forth in California Government Code Section 66007(b): the Board of Supervisors finds, based on information from the Planning Department in Board File No. 150149, that it is appropriate to require the payment of the fees in Article 4 at the time of issuance of the first construction document because the fee will be collected for public improvements or facilities for which an account has been established and funds appropriated and for which the City has adopted a proposed construction schedule or plan prior to the final inspection or issuance of the certificate of occupancy or because the fee is to reimburse the City for expenditures previously made for such public improvements or facilities.
(3) Administrative Fee. The Board finds, based on information from the Planning Department in Board File No. 150149, that the City agencies administering the fee will incur costs equaling 5% or more of the total amount of fees collected in administering the funds established in Article 4. Thus, the 5% administrative fee included in the fees in this Article 4 do not exceed the cost of the City to administer the funds.
(b) Specific Findings. The Board of Supervisors has reviewed the San Francisco Citywide Nexus Analysis (“Nexus Analysis”) and the San Francisco Infrastructure Level of Service Analysis (“Level of Service Analysis”), both on file with the Clerk of the Board in File No. 230764 and adopts the findings and conclusions of those studies, specifically the sections of those studies establishing levels of service for and a nexus between new development and four infrastructure categories: Recreation and Open Space, Childcare, Complete Streets, and Transit Infrastructure. The Board of Supervisors finds that, as required by California Government Code Section 66001, for each infrastructure category analyzed, the Nexus Analysis and Infrastructure Level of Service Analysis: identify the purpose of the fee; identify the use or uses to which the fees are to be put, including a reasonable level of service; determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed; determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed; and determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the facility attributable to the development. Specifically, as discussed in more detail in and supported by the Nexus Analysis and Infrastructure Level of Service Analysis the Board adopts the following findings:
(1) Recreation and Open Space Findings.
(A) Purpose. The fee will help maintain adequate park capacity required to serve new service population resulting from new development.
(B) Use. The fee will be used to fund projects that directly increase park capacity in response to demand created by new development. Park and recreation capacity can be increased either through the acquisition of new park land, or through capacity enhancements to existing parks and open space. Examples of how development impact fees would be used include: acquisition of new park and recreation land; lighting improvements to existing parks, which extend hours of operation on play fields and allow for greater capacity; recreation center construction, or adding capacity to existing facilities; and converting passive open space to active open space including but not limited to through the addition of trails, play fields, and playgrounds.
(C) Reasonable Relationship. As new development adds more employment and/or residents to San Francisco, it will increase the demand for park facilities and park capacity. Fee revenue will be used to fund the acquisition and additional capacity of these park facilities. Each new development project will add to the incremental need for recreation and open space facilities described above. Improvements considered in the Nexus Study are estimated to be necessary to maintain the City's effective service standard.
(D) Proportionality. The new facilities and costs allocated to new development are based on the existing ratio of the City’s service population to acres of existing recreation and open space. The scale of the capital facilities and associated costs are proportional to the projected levels of new development and the existing relationship between service population and recreation and open space. The cost of the deferred maintenance required to address any operational shortfall within the City’s recreation and open space provision will not be financed by development fees.
(2) Childcare Findings.
(A) Purpose. The fee will support the provision of childcare facility needs resulting from an increase in San Francisco's residential and employment population.
(B) Use. The childcare impact fee will be used to fund capital projects related to infant, toddler, and preschool-age childcare. Funds will pay for the expansion of childcare slots for infant, toddler, and preschool children.
(C) Reasonable Relationship. New residential and commercial development in San Francisco will increase the demand for infant, toddler and preschool-age childcare. Fee revenue will be used to fund the capital investment needed for these childcare facilities. Residential developments will result in an increase in the residential population, which results in growth in the number of children requiring childcare. Commercial development results in an increase of the employee population, which similarly require childcare near their place of work. Improvements considered in this study are estimated to be necessary to maintain the City's provision of childcare at its effective service standard.
(D) Proportionality. The costs allocated to new development are based on the estimated childcare demand generated by future development 1 Capital costs required to provide these childcare spaces to accommodate the new population are based on the City’s cost of funding new childcare facilities and assigned to new housing units and new non-residential development on a per-square-foot basis. The scale of the capital facilities and associated costs are directly proportional to the expected levels of new development and the corresponding increase in childcare demands.
(3) Complete Streets Findings.
(A) Purpose. “Complete Streets” encompass sidewalk improvements, such as lighting, landscaping, and safety measures, and sustainable street elements more broadly, including bike lanes, sidewalk paving and gutters, lighting, street trees and other landscaping, bulb-outs, and curb ramps. The primary purpose of the Complete Streets impact fee is to fund capital investments in bicycle, streetscape, and pedestrian infrastructure to accommodate the growth in street activity.
(B) Use. The Complete Streets fees will be used to implement the Better Streets Plan (2010), on file in Board File No. 230764, including enhancement of the pedestrian network in the areas surrounding new development – whether through sidewalk improvements, construction of complete streets, or pedestrian safety improvements – and development of new premium bike lanes, upgraded intersections, additional bicycle parking, and new bicycle sharing program stations..1
(C) Reasonable Relationship. New residential and non-residential development brings an increased demand for new or expanded and improved Complete Streets infrastructure. This relationship between new development, an influx of residents and workers, and a demand for complete streets infrastructure provides the nexus for an impact fee. Complete Streets impact fees, imposed on new development, fund the construction of new and enhanced complete streets infrastructure for the additional residents and workers directly attributable to new development.
(D) Proportionality. The fees allocated to new development are based on the existing ratio of the City’s service population to a conservative estimate of its current Complete Streets infrastructure provision to date – in the form of square feet of Complete Streets sidewalk per thousand service population units. The costs associated with this level of improvement are drawn from the cost per square foot associated with constructing Complete Streets elements based on data from the San Francisco Planning Department, Department of Public Works, Public Utilities Commission, and Municipal Transportation Agency. Due to the locational variation in the cost of building Complete Street elements, the fee calculation includes a 20 percent markup for the downtown area..1
The scale of the capital facilities and associated costs are directly proportional to the expected levels of new development and the existing relationship between service population and Complete Streets infrastructure. The cost of the deferred maintenance required to address any operational shortfall is not allocated to be funded by new development.
(4) Transit Infrastructure Findings.
(A) Purpose. Transit Infrastructure funds will be used to meet the demand for transit capital maintenance, transit capital facilities and fleet, and pedestrian and bicycle infrastructure generated by new development in the City.
(B) Use. Transit Infrastructure fees will fund transit capital maintenance and transit capital facilities to maintain the existing level of service. Revenues for capital maintenance operating costs will improve vehicle reliability to expand transit services. Revenues for capital facilities will be used for transit fleet expansion, improvements to increase SFMTA transit speed and reliability, and improvements to regional transit operators. Though the fees are calculated based on transit maintenance and facilities, fee revenues may be used for pedestrian and bicycle improvements to complement revenue from the Complete Streets fee, including Area Plan complete street fees.
(C) Reasonable Relationship. The Transit Infrastructure fee is reasonably related to the financial burden that development projects impose on the City. As development generates new trips, the SFMTA must increase the supply of transit services and therefore capital maintenance expenditures to maintain the existing transit level of service. Development also increases the need for expanded transit facilities due to increased transit and auto trips.
(D) Proportionality. The existing level of service for transit capital maintenance is based on the current ratio of the supply of transit services (measured by transit revenue service hours) to the level of transportation demand (measured by number of automobile plus transit trips). The fair share cost of planned transit capital facilities is allocated to new development based on trip generation from new development as a percent of total trip generation served by the planned facility, including existing development. The variance in the fee by economic activity category based on trip generation, and the scaling of the fee based on the size of the development project, supports proportionality between the amount of the fee and the share of transit capital maintenance and facilities attributable to each development project.
(5) Additional Findings. The Board finds that the Nexus Analysis and Level of Service Analysis establish that the fees are less than the cost of mitigation and do not include the costs of remedying any existing deficiencies. The City may fund the cost of remedying existing deficiencies through other public and private funds. The Board also finds that the Nexus Analysis and Level of Service Analysis establish that the fees do not duplicate other City requirements or fees. The Board further finds that there is no duplication in fees applicable on a Citywide basis and fees applicable within an Area Plan. Moreover, the Board finds that these fees are only one part of the City’s broader funding strategy to address these issues. Residential and non-residential impact fees are only one of many revenue sources necessary to address the City’s infrastructure needs.
(Added by Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; amended by Ord. 188-15
, File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 200-15
, File No. 150790, App. 11/25/2015, Eff. 12/25/2015; Ord. 222-15
, File No. 155521, App. 12/18/2015, Eff. 1/17/2016; Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023)
AMENDMENT HISTORY
Nonsubstantive changes; Ord. 188-15
, Eff. 12/4/2015. Division (b) amended; new division (b)(5) added; former division (b)(5) redesignated as (b)(6) and amended; Ord. 200-15
, Eff. 12/25/2015 and Ord. 222-15
, Eff. 1/17/2016. Divisions (b), (b)(1)(D), (b)(2)(D), (b)(3)-(b)(3)(D) amended; (b)(4)-(b)(4)(D) deleted; (b)(5)-(6) amended as (b)(4)-(5); Ord. 193-23, Eff. 10/16/2023.
CODIFICATION NOTE
1. So in Ord. 193-23.
SEC. 402. PROCEDURE FOR PAYMENT AND COLLECTION OF DEVELOPMENT FEES.
(a) Collection by the Development Fee Collection Unit. Except as otherwise authorized in Section 411.9, all development impact and in-lieu fees authorized by this Code shall be collected by the Development Fee Collection Unit at DBI in accordance with Section 107A.13 of the San Francisco Building Code.
(b) Required Department Notice to Development Fee Collection Unit; Request to Record Notice of Fee.
(1) Required Notice. When the Planning Department determines that a development project is subject to one or more development fees or development impact requirements as set forth in Section 402(e), the Department shall send written or electronic notification to the Development Fee Collection Unit at DBI, and also to MOH, MTA or other applicable agency that administers an applicable development fee or development impact requirement, that:
(i) identifies the development project,
(ii) lists which specific development fees and/or development impact requirements are applicable and the legal authorization for their application,
(iii) specifies the dollar amount of the development fee or fees that the Department calculates is owed to the City or that the project sponsor has elected to satisfy a development impact requirement through the provision of physical or "in-kind" improvements, and
(iv) lists the name and contact information for the staff person at each agency or department responsible for calculating the development fee or monitoring compliance with the development impact requirement for physical or in-kind improvements.
(2) Amended Notices. The Department shall send an amended notice to the Development Fee Collection Unit, and also to any department or agency that received the initial notice, if at any time subsequent to its initial notice:
(i) any of the information required by subsection (1) above is changed or modified, or
(ii) the development project is modified by the Department or Commission during its review of the project and the modifications change the dollar amount of the development fee or the scope of any development impact requirement.
(3) Optional Recordation of Notice of Special Restrictions Prior to Issuance of Building or Site Permit. Prior to issuance of a building or site permit for a development project subject to a development fee or development impact requirement, the Department may request the Project Sponsor to record a notice with the County Recorder that a development project is subject to a development fee or development impact requirement. The County Recorder shall serve or mail a copy of such notice to the persons liable for payment of the fee or satisfaction of the requirement and the owners of the real property described in the notice. The notice shall include:
(i) a description of the real property subject to the development fee or development impact requirement,
(ii) a statement that the development project is subject to the imposition of the development fee or development impact requirement, and
(iii) a statement that the dollar amount of the fee or the specific development impact requirement to which the project is subject has been determined under Article 4 of this Code and citing the applicable section number.
(c) Process for Revisions of Determination of Development Impact Fee(s) or Development Impact Requirement(s). In the event that the Department or the Commission takes action affecting any development project subject to this Article and such action is subsequently modified, superseded, vacated, or reversed by the Board of Appeals, the Board of Supervisors, or by court action, the building permit or building permit application for such development project shall be remanded to the Department to determine whether the development project has been changed in a manner which affects the calculation of the amount of development fees or development impact requirements required under this Article and, if so, the Department shall revise the requirement imposed on the permit application in compliance with this Article within 30 days of such remand and notify the project sponsor in writing of such revision or that a revision is not required. The Department shall notify the Development Fee Collection Unit at DBI if the revision materially affects the development fee requirements originally imposed under this Article so that the Development Fee Collection Unit update the Project Development Fee Report and re-issue the associated building or site permit for the project, if necessary, to ensure that any revised development fees or development impact requirements are enforced.
(d) Timing of Fee Payments. All impact fees are due and payable to the Development Fee Collection Unit at DBI consistent with the provisions of Section 107A.13.3 of the Building Code.
(e) Amount and Applicability of Impact Fees. When the Planning Department determines that a project is subject to development impact fees established in the Planning Code, with the exception of the Inclusionary Housing Fee as set forth in Section 415 et seq., the assessment shall be based on the types of fees and the rates of those fees in effect at the time of Final Approval. After Final Approval, the City shall not impose subsequently established development impact fees or increase the rate of existing fees on the development project, including annual inflation adjustments pursuant to Section 409, except as provided in subsections (e)(1)-(e)(2) of this Section 402. The Planning Department shall transmit the fee assessment to the Development Fee Collection Unit at DBI in accordance with this Section 402.
(1) Modification, Renewal, Extension for Projects. After the Final Approval, if a development project requires a modification to, renewal, or extension of a previously approved Development Application, the Planning Department shall reassess development impact fees pursuant to subsection (e)(2). For the purposes of this subsection (e)(1), a “modification” shall not include a legislatively-authorized reduction or waiver of fees, including any waivers pursuant to Section 406.
(2) Amount of Reassessment. For any development project that requires a modification to, renewal, or extension pursuant to subsection (e)(1), the Planning Department shall reassess fees as follows:
(A) Modified Projects. For projects increasing Gross Floor Area of any use, the Planning Department shall assess the new or increased Gross Floor Area by applying the types of impact fees in effect at the time of Final Approval at the rates in effect at the time of modification. For projects reducing Gross Floor Area, the Planning Department shall assess the types and rates of fees in effect at the time of Final Approval only on the remaining Gross Floor Area. If the modified project would result in a new type of fee or a different rate based on applicable thresholds in effect at the time of Final Approval, the entire project square footage is subject to the new type of fee or different rate in effect at the time of modification. The City shall refund fees, if any, without interest, based on the fees in effect at the time of Final Approval.
(B) Renewal and Extended Projects. For projects receiving a renewal or extension, the Planning Department shall reassess fees for the entire project’s Gross Floor Area based on the type of fees and rates of those fees in effect at the time of renewal or extension.
(3) Projects Approved Prior to Effective Date of Ordinance in Board File No. 230764. For projects that have obtained a Final Approval, but that have not yet obtained a first site or building permit prior to the effective date of the ordinance in Board File No. 230764, the assessed types and rates of impact fees shall not be increased after that effective date, unless such project requires a modification, extension, or renewal pursuant to subsection (e)(1)-(2) of this Section 402. For projects that have obtained a Final Approval and a site or building permit prior to the effective date of the ordinance in Board File No. 230764, the types and rate of fees are those assessed at the time of site or building permit issuance, subject to legislative reduction or waiver of fees, unless such project requires a modification, extension, or renewal pursuant to subsection (e)(1)-(2) of this Section 402.
(4) Applicability to Development Agreements.
(A) For projects subject to development agreements executed prior to the effective date of the ordinance in Board File No. 230764, the Planning Department shall assess the applicable fees pursuant to the development agreement and no later than the earlier of site or building permit issuance.
(B) Except as may otherwise be agreed to by the parties, for a project subject to a development agreement executed on or after the effective date of the ordinance in Board File No. 230764, the Planning Department shall assess the applicable fees at the earlier of site or building permit issuance.
(C) The procedures set forth in subsection (e)(1)-(2) shall govern the modification, renewal, or extension of a project subject to a development agreement.
(D) In the event of a conflict between this Section 402(e) and the terms of a development agreement, the terms of the development agreement shall apply, unless the development agreement is modified pursuant to the terms of that agreement.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 55-11, File No. 101523, App. 3/23/2011; Ord. 247-12
, File No. 120523, App. 12/18/2012, Eff. 1/17/2013; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020; Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023; Ord. 196-25, File No. 250657, App. 10/24/2025, Eff. 11/24/2025)
AMENDMENT HISTORY
SEC. 403. PAYMENT OF DEVELOPMENT FEE(S) OR SATISFACTION OF DEVELOPMENT IMPACT REQUIREMENT(S) AS A CONDITION OF APPROVAL; TEMPORARY FEE REDUCTION PROGRAM.
In addition to any other condition of approval that may otherwise be applicable, the Department or Commission shall require as a condition of approval of a development project subject to a development fee or development impact requirement under this Article 4 that such development fee or fees be paid consistent with the timing set forth in Building Code Section 107A.13.3, in proportion to the amount required for each building if there are multiple buildings, with an option for the project sponsor to defer payment of 85% of the fees, or 80% of the fees if the project is subject to a neighborhood infrastructure impact development fee, to prior to issuance of the first certificate of occupancy, as provided by Section 107A.13.3.1 of the San Francisco Building Code (“Fee Deferral Program”). The Fee Deferral Program shall not apply to fees that must be deposited in the Citywide Affordable Housing Fund (Administrative Code Section 10.100-49). Projects subject to development agreements executed pursuant to Chapter 56 of the Administrative Code shall be eligible for the Fee Deferral Program, except as may otherwise be agreed to by the parties to the development agreement. The Department or Commission shall also require as a condition of approval that any development impact requirement imposed on a development project under this Article shall be satisfied prior to issuance of the first certificate of occupancy for any building or buildings within the development project, in proportion to the amount required for each building if there are multiple buildings.
Temporary Fee Reduction Program. The following development fees assessed on or before November 1, 2026 shall be reduced by 33% for (1) projects that receive a First Construction Document, as defined in Building Code Section 107A.13.1, within 30 months of Final Approval, as defined in Section 415A.2; and (2) for Pipeline Projects as defined in Section 415A.2, if such Pipeline Projects receive a First Construction Document on or before May 1, 2029. Projects approved pursuant to a development agreement under Chapter 56 of the Administrative Code shall not be eligible for a fee reduction under this Section 403. Upon receipt of a First Construction Document, the Planning Department shall determine whether the project is eligible for the Temporary Fee Reduction Program, and update the fees assessment as applicable. If the project is found eligible, the following fees shall be reduced:
(1) The Transportation Sustainability Fee (Section 411A);
(2) The Downtown Park Fee (Section 412);
(3) The Jobs Housing Linkage Program (Section 413);
(4) The Childcare Requirement for Office and Hotel Development Projects (Section 414);
(5) The Childcare Requirements for Residential Projects (Section 414A);
(6) Market and Octavia Area Plan and Upper Market Neighborhood Commercial District Affordable Housing Fee (Section 416);
(7) Eastern Neighborhoods Area Plan Affordable Housing Requirement (Section 417);
(8) Rincon Hill Community Improvements Fund and SOMA Community Stabilization Fund (Section 418);
(9) Visitation Valley Community Facilities and Infrastructure Fee and Fund (Section 420);
11 Balboa Park Community Improvements Fund (Section 422);
12 Eastern Neighborhood Impact Fees and Public Benefits Fund (Section 423);
13 Van Ness & Market Affordable Housing and Neighborhood Infrastructure Fee and Program (Section 424);
15 Van Ness and Market Community Facilities Fee and Fund (Section 425);
17 Public Art Fee (Section 429);
18 Bicycle Parking fee (Section 430);
19 Central SOMA Community Services Facilities Fees and Fund (Section 432);
20 Central SOMA Infrastructure Fee and Fund (Section 433);
21 Union Square Park, Recreation, and Open Space Fee (Section 435);
Fees eligible for reduction under this section, including the amount with a reduction, shall be included in the Controller’s Citywide Development Fee and Development Impact Requirements Report described in Section 409(a).
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 55-11, File No. 101523, App. 3/23/2011; amended by Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023; Ord. 201-23, File No. 230855, App. 10/12/2023, Eff. 11/12/2023, Oper. 11/1/2023; Ord. 196-25, File No. 250657, App. 10/24/2025, Eff. 11/24/2025)
AMENDMENT HISTORY
Division (b) deleted; section header and section amended; Ord. 193-23, Eff. 10/16/2023. Section header amended; second and final undesignated paragraphs added; divisions (1)-21 added; Ord. 187-23, Eff. 10/15/2023, and Ord. 201-23, Eff. 11/12/2023. First undesignated paragraph amended; Ord. 196-25, Eff. 11/24/2025.
CODIFICATION NOTE
SEC. 404. PROJECT DEVELOPMENT FEE REPORT; RESOLUTION OF DEVELOPMENT FEE DISPUTE; APPEAL TO BOARD OF APPEALS; PUBLIC NOTICE; FINDINGS SUPPORTING FEE COLLECTION.
(a) Project Development Fee Report. Under Section 107A.13.7 of the San Francisco Building Code, prior to issuance of the building or site permit for a development project subject to any development fees or development impact requirements, the Development Fee Collection Unit at DBI shall prepare and provide to the project sponsor, or any member of the public upon request, a Project Development Fee Report.
(b) Resolution of Development Fee or Development Impact Requirement Dispute; Appeal to Board of Appeals. If a dispute or question arises concerning the accuracy of the final Project Development Fee Report, including the calculation of any development fee listed thereon, the dispute shall be resolved or appealed to the Board of Appeals in accordance with Section 107A.13.9 of the San Francisco Building Code. The jurisdiction of the Board shall be strictly limited to determining the accuracy of the Report and the mathematical calculation of the development fee or scope of the physical or "in-kind" requirement. The Board has no jurisdiction to: (1) review the scope or amount of the development fee or requirement established by the Code, (2) reduce, adjust, or waive a development fee or requirement on the ground that there is no reasonable relationship or nexus between the impact of development and either the amount of the fee charged or the physical requirement, (3) reduce or waive the development fee or requirement based on housing affordability, duplication of fees, or any other issue related to fairness or equity, or (4) review the nexus studies that support the development fee or requirement and the City's legal authority to impose it.
(c) Public Notice of the Project Development Fee Report. Any public notice issued by the Department of an approval action on a development project that is subject to a development fee or a development requirement under this Article shall notify the public of a right to request a copy of the Project Development Fee Report from the Development Fee Collection Unit at DBI. In addition to this notice, DBI shall provide final notice of the availability of the Project Development Fee Report as part of its standard notice of the issuance of a building or site permit for any project and of the right to appeal the accuracy of the Project Development Fee Report to the Board of Appeals as part of the underlying building or site permit in accordance with Section 107A.13.9 of the San Francisco Building Code.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015)
AMENDMENT HISTORY
SEC. 405. DEVELOPMENT FEE REFUND WHEN BUILDING PERMIT IS CANCELLED OR EXPIRES PRIOR TO COMPLETION OF WORK AND COMMENCEMENT OF OCCUPANCY.
If a project sponsor cancels or withdraws a building or site permit prior to completion of work and commencement of occupancy of a development project, or a building or site permit expires prior to completion of work and commencement of occupancy so that it will be necessary to obtain a new permit to carry out any new work on the development project, any obligation to comply with this Article shall be cancelled, and any development fee previously paid to the Development Fee Collection Unit at DBI shall be refunded to the project sponsor. If and when the project sponsor applies for a new building or site permit, the procedures set forth in this Article shall be followed for the new development project.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
SEC. 406. WAIVER, REDUCTION, OR ADJUSTMENT OF DEVELOPMENT PROJECT REQUIREMENTS.
(a) Waiver or Reduction Based on Absence of Reasonable Relationship.
(1) The sponsor of any development project subject to a development fee or development impact requirement imposed by this Article may appeal to the Board of Supervisors for a reduction, adjustment, or waiver of the requirement based upon the absence of any reasonable relationship or nexus between the impact of development and either the amount of the fee charged or the on-site requirement.
(2) Any appeal authorized by this Section shall be made in writing and filed with the Clerk of the Board no later than 15 days after the date the Department or Commission takes final action on the project approval that assesses the requirement. The appeal shall set forth in detail the factual and legal basis for the claim of waiver, reduction, or adjustment.
(3) The Board of Supervisors shall consider the appeal at a public hearing within 60 days after the filing of the appeal. The appellant shall bear the burden of presenting substantial evidence to support the appeal, including comparable technical information to support appellant's position. The decision of the Board shall be by a simple majority vote and shall be final.
(4) If a reduction, adjustment, or waiver is granted, any change in use within the project shall invalidate the waiver, adjustment, or reduction of the fee or inclusionary requirement. If the Board grants a reduction, adjustment or waiver, the Clerk of the Board shall promptly transmit the nature and extent of the reduction, adjustment or waiver to the Development Fee Collection Unit at DBI and the Unit shall modify the Project Development Fee Report to reflect the change.
(b) Waiver or Reduction, Based on Housing Affordability.
(1) An affordable housing unit shall receive a waiver from the Rincon Hill Community Infrastructure Impact Fee, the Market and Octavia Community Improvements Impact Fee, the Eastern Neighborhoods Infrastructure Impact Fee, the Balboa Park Impact Fee, the Visitacion Valley Community Facilities and Infrastructure Impact Fee, the Transportation Sustainability Fee, the Residential Child Care Impact Fee, the Central South of Market Infrastructure Impact Fee, and the Central South of Market Community Facilities Fee if:
(A) the affordable housing unit is affordable to a household earning up to 120% of the Area Median Income (as published by HUD), including units that qualify as replacement Section 8 units under the HOPE SF program;
(B) the affordable housing unit will maintain its affordability for a term of no less than 55 years, as evidenced by a restrictive covenant recorded on the property’s title;
(C) the Project Sponsor demonstrates to the Planning Department staff that a governmental agency will be enforcing the term of affordability and reviewing performance and service plans as necessary, and
(D) all construction workers employed in the construction of the development that includes the affordable housing unit are paid at least the general prevailing rate of per diem wages for the type of work and geographic location of the development, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the Labor Code, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate under the terms and conditions of Labor Code Section 1777.5.
(2) Projects that meet the requirements of this subsection are eligible for a 100 percent fee reduction until an alternative fee schedule is published by the Department.
(3) Projects that are located within a HOPE SF Project Area are eligible for a 100 percent fee reduction from the TSF, applicable both to the affordable housing units and the market-rate units within such projects, and to any Non-Residential or PDR uses. Projects within a HOPE SF Project Area are otherwise subject to all other applicable fees per Article 4 of the Planning Code.
(4) Residential uses within projects where all residential units are affordable to households at or below 150% of the Area Median Income (as published by HUD) shall not be subject to the TSF. Non-residential and PDR uses within those projects shall be subject to the TSF. All uses shall be subject to all other applicable fees per Article 4 of the Planning Code.
(c) Waiver for Homeless Shelters. A Homeless Shelter, as defined in Section 102 of this Code, is not required to pay the Rincon Hill Community Infrastructure Impact Fee, the Transit Center District Impact Fees, the Market and Octavia Community Improvements Impact Fee, the Eastern Neighborhoods Infrastructure Impact Fee, the Balboa Park Impact Fee, the Visitacion Valley Community Facilities and Infrastructure Impact Fee and the Transportation Sustainability Fee.
(d) Waiver Based on Duplication of Fees. The City shall make every effort not to assess duplicative fees on new development. In general, project sponsors are only eligible for fee waivers under this Subsection if a contribution to another fee program would result in a duplication of charges for a particular type of community infrastructure. The Department shall publish a schedule annually of all known opportunities for waivers and reductions under this clause, including the specific rate. Requirements under Section 135 and 138 of this Code do not qualify for a waiver or reduction. Should future fees pose a duplicative charge, such as a Citywide open space or childcare fee, the same methodology shall apply and the Department shall update the schedule of waivers or reductions accordingly.
(e) Waiver or Reduction of Fees for a Public Park in the Central SoMa Plan Area. A development project may elect to provide land and other resources in order to construct a public park on an approximately 40,000 square-foot portion of Block 3777 as called for in the Central SoMa Plan, and in doing so may be eligible for a waiver against all or a portion of fees otherwise applicable to such development as set forth in this subsection 406(e). As part of the approval process for such a project, the Planning Commission may waive all or a portion of the Eastern Neighborhoods Infrastructure Impact Fee, the Central SoMa Infrastructure Impact Fee, the Transit Impact Development Fee, and the Transit Sustainability Fee, and may specify how such waiver would be distributed among the aforementioned fees, provided such total amount does not exceed the value of the park, which shall be calculated based on actual costs to acquire the land.
(f) Waiver Based on Calamity. The replacement of existing Residential, Non-Residential, or PDR uses on a lot subject to, and meeting all the provisions of, Planning Code Section 188(b) for the replacement of buildings damaged or destroyed by fire or other calamity, or by Act of God or the public enemy, shall not be considered in the determination of applicability of any impact fee in Article 4 of this Code and new Gross Floor Area within a building subject to and meeting all the provisions of Section 188(b) shall not be subject to any impact fee in Article 4. However, any additional land uses or addition of Gross Floor Area beyond what is needed to replace the damaged or destroyed building(s) shall be subject to any applicable Article 4 impact fees.
(g) Waiver for Projects in PDR Districts. In a PDR District, a development project that meets the eligibility criteria in subsection (g)(1) of this Section 406 shall receive a waiver from any development impact fee or development impact requirement imposed by this Article.
(1) Eligibility. To be eligible for the waiver in this subsection (g), the project shall:
(A) be located in a PDR District;
(B) contain a Retail Use or PDR Use and no residential uses;
(C) propose the new construction of at least 20,000 square feet of Gross Floor Area and no more than 200,000 square feet of Gross Floor Area;
(D) be located on a vacant site or site improved with buildings with less than a 0.25 to 1 Floor Area Ratio as of the date a complete Development Application is submitted;
(E) submit a complete Development Application on or before December 31, 2026, including any projects that have obtained Final Approval prior to the effective date of the ordinance in Board File No. 230764 that have not already paid development impact fees.
(2) Extent of Waiver. The waiver in this subsection (g) shall be limited to development impact fees or development impact requirements for the establishment of any new Gross Floor Area of PDR or Retail Use.
(3) Sunset. This subsection (g) shall expire by operation of law on December 31, 2026, unless the duration of the subsection has been extended by ordinance effective on or before that date. Upon expiration, the City Attorney shall cause subsection (g) to be removed from the Planning Code.
(h) Waiver for Projects in the C-2 and C-3 Districts. In the C-2 and C-3 Districts, a development project that meets the eligibility criteria in subsection (h)(1) of this Section 406 shall receive a waiver from any development impact fee or development impact requirement imposed by this Article.
(1) Eligibility. To be eligible for the waiver in this subsection (h), the project shall:
(A) be located in a C-2 or C-3 District;
(B) contain any of the following uses: Hotel, Restaurant, Bar, Outdoor Activity, or Entertainment;
(C) submit a complete Development Application on or before December 31, 2026, including any projects that have obtained Final Approval prior to the effective date of the ordinance in Board File No. 230764 that have not already paid development impact fees.
(2) Extent of Waiver. The waiver in this subsection (h) shall be limited to development impact fees or development impact requirements for the establishment of any new Gross Floor Area of the Hotel, Restaurant, Bar, Outdoor Activity, or Entertainment Use.
(3) Sunset. This subsection (h) shall expire by operation of law on December 31, 2026, unless the duration of the subsection has been extended by ordinance effective on or before that date. Upon expiration, the City Attorney shall cause subsection (h) to be removed from the Planning Code.
(i) Conditional Waiver or Reduction of Fees for Central SoMa Plan Area Projects Impacted by the Downtown Rail Extension. A development project that enters into an agreement with the Transbay Joint Powers Authority to construct foundation and shoring systems that will reduce the lateral force from the project onto the tunnel and not encroach on the tunnel alignment required for the Downtown Rail Extension, which agreement is to the satisfaction of the Department of Building Inspection, and submits a building or site permit application that includes the agreed-upon foundation and shoring systems, may be eligible for a conditional waiver of the Transportation Sustainability Fee (Sections 411A et seq.) and the Eastern Neighborhoods Infrastructure Impact Fee (Sections 423 et seq.), as set forth in this subsection (i). As part of the approval process for such a project, the Planning Commission may conditionally approve waiver of all or a portion of the Transportation Sustainability Fee and of the Eastern Neighborhoods Infrastructure Impact Fee, provided that such waiver is conditioned on the satisfaction of the actions in the preceding sentence. If the final approved building permit or site permit foundation addendum includes the agreed-upon foundation and shoring systems, the project shall receive a waiver of those fees in an amount commensurate with the net increase in cost of the agreed-upon foundation and shoring system as compared to a baseline foundation system, as calculated by the Planning Department. If the final approved building permit or site permit foundation addendum does not include the agreed upon foundation and shoring systems, the City shall withhold issuance of the first certificate of occupancy until the conditionally waived fees are paid.
(j) Waiver for Certain Non-Residential to Residential Conversion and Replacement Projects. This subsection 406(j) provides eligible Non-Residential or Production, Distribution, and Repair (PDR) to Residential conversion and replacement projects with a waiver of any Development fee or Development impact requirement imposed by this Article 4, as specified in this subsection.
(1) Eligible Projects. To be eligible for the waiver, a project must replace Gross Floor Area of existing PDR uses or Non-Residential uses, other than a Hotel use, with Gross Floor Area established as Residential use, whether as part of a change of use of existing Gross Floor Area, or through the demolition of Non-Residential Gross Floor Area and construction of new Gross Floor Area for Residential use. For purposes of this subsection 406(j), any Gross Floor Area established as Live/Work use shall be considered as Residential use. Projects must be located in a C-3 district, or a C-2 district east of or fronting Franklin Street/13th Street and north of Townsend Street.
(2) Waiver Amount. Eligible projects shall be entitled to a waiver from any applicable Development fee or Development impact requirement imposed by this Article 4 on any net new Gross Floor Area of Residential use in an amount up to 110% of the Gross Floor Area of Non-Residential use or PDR use converted to Residential use. Converted Non-Residential or PDR Gross Floor Area shall be calculated as the net reduction of Non-Residential Gross Floor Area resulting from the project.
(3) Calculation of Space. In a mixed-use project with Residential and Non-Residential or PDR uses, the Gross Floor Area of Residential use shall be calculated based on the definition of Gross Floor Area in Planning Code Section 102, in the proportion that such areas serve the Residential use to the total square feet of Gross Floor Area served by such areas.
(4) Limitation of Waiver. Any portion of a project’s Gross Floor Area that is not entitled to this waiver shall be subject to the otherwise applicable Development fees and Development impact requirements of this Article 4, including the Inclusionary Housing Program. Applicable Development fees and Development impact requirements shall be calculated based solely on the proportion of the project that is not entitled to this waiver, and not on the project as a whole. In the event the project provides On-site or Off-site Affordable Units to satisfy the requirements of Section 415.1 et seq., the equivalency, minimum size, and distribution of any such Affordable Units shall be based on consideration of the project as a whole, and the requirements of the Inclusionary Housing Program shall apply.
(5) Modification of Previously Approved Projects. Projects that received a Final Approval prior to January 1, 2025, and have not been issued a First Construction Document shall be entitled to request a modification to the project’s Development fees and Development impact requirements under this subsection 406(j).
(7) Reporting. The Department shall provide a written report of projects that receive a waiver of Development fees and Development impact requirements under this subsection 406(j) to the Inclusionary Housing Technical Advisory Committee established by Administrative Code Chapter 5 Article XXIX in conjunction with the triennial economic feasibility analysis of the City’s inclusionary affordable housing obligations pursuant to Planning Code Section 415.10.
(8) Cap on the Total Square Footage Subject to a Development Fee Waiver. The waiver in this subsection 406(j) shall apply only to the first 7,000,000 square feet of Gross Floor Area that replaces Gross Floor Area of existing PDR uses or Non-Residential uses, other than a Hotel use, with Gross Floor Area established as Residential use associated with Eligible Projects in the order that the projects receive a Final Approval. If an Eligible Project does not receive a building or site permit within five years of the Final Approval, the project shall forfeit any rights to the approved waiver, and any Gross Floor Area associated with such project shall no longer be counted against the 7,000,000 square foot limit set forth in this subsection 406(j)(8).
(k) Waiver of Fees for Projects in the Market and Octavia Area Plan.
(1) Development projects located within the Market and Octavia Area Plan that have received Final Approval prior to January 1, 2026, and have not been issued a First Construction Document as of that date shall be entitled to a waiver of all development impact fee requirements under Sections 416, 421, 424, and 425 of this Code.
(2) Development projects located within the Market and Octavia Area Plan that have received Final Approval prior to January 1, 2026, and that have been issued a First Construction Document as of that date shall be entitled to a waiver of any portion of the development impact fee requirements under Sections 416, 421, 424, and 425 of this Code that has been deferred and not yet paid pursuant to Building Code Section 107A.13.3.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 3-11, File No. 101247, App. 1/7/2011; Ord. 47-11, File No. 110009, App. 3/16/2011; Ord. 14-15
, File No. 141210, App. 2/13/2015, Eff. 3/15/2015; Ord. 200-15
, File No. 150790, App. 11/25/2015, Eff. 12/25/2015; Ord. 222-15
, File No. 155521, App. 12/18/2015, Eff. 1/17/2016; Ord. 2-16
, File No. 150793, App. 1/19/2016, Eff. 2/18/2016; Ord. 26-18, File No. 171193, App. 2/23/2018, Eff. 3/26/2018; Ord. 296-18, File No. 180184, App. 12/12/2019, Eff. 1/12/2019; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020; Ord. 47-21, File No. 201175, App. 4/16/2021, Eff. 5/17/2021; Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023; Ord. 248-23, File No. 230446, App. 12/14/2023, Eff. 1/14/2024; Ord. 39-24, File No. 231164, App. 3/7/2024, Eff. 4/7/2024; Ord. 20-25, File No. 240927, App. 3/7/2025, Eff. 4/7/2025; Ord. 124-25, File No. 250542, App. 8/1/2025, Eff. 9/1/2025; Ord. 188-25, File No. 250680, App. 10/6/2025, Eff. 11/6/2025)
AMENDMENT HISTORY
New division (c) added and former division (c) redesignated as (d); Ord. 14-15
, Eff. 3/15/2015. Division (b)(1) amended; new divisions (b)(3) and (4) added and former division (b)(3) redesignated as (b)(5); division (c) amended; Ord. 200-15
, Eff. 12/25/2015 and Ord. 222-15
, Eff. 1/17/2016. Divisions (b)(1) and (b)(1)(B) amended; Ord. 2-16
, Eff. 2/18/2016. Division (b)(1)(B) amended; Ord. 26-18, Eff. 3/26/2018. Division (e) added; Ord. 296-18, Eff. 1/12/2019. Division (b)(1)(B) amended; division (f) added; Ord. 63-20, Eff. 5/25/2020. Division (b)(1) amended; Ord. 47-21, Eff. 5/17/2021. Divisions (g)-(h)(3) added; Ord. 193-23, Eff. 10/15/2023. Divisions (b)(1), (b)(1)(A), and (b)(5) amended; divisions (b)(1)(B)-(C) deleted; new divisions (b)(1)(B)-(D) added; Ord. 248-23, Eff. 1/14/2024. New division (i) added; Ord. 39-24, Eff. 4/7/2024. Divisions (j)-(j)(8) added; Ord. 20-25, Eff. 4/7/2025. Divisions (j)-(j)(3) and (j)(8) amended; Ord. 124-25, Eff. 9/1/2025. Divisions (k)- (k)(2) added; Ord. 188-25, Eff. 11/6/2025.
SEC. 407. NOTICE; FAILURE TO GIVE NOTICE.
Any notice required by this Article to be given to a project sponsor or owner shall be sufficiently given or served upon the sponsor or owner for all purposes hereunder if: (a) personally served upon the sponsor or owner, or (b) deposited, postage prepaid, in a post office letterbox addressed in the name of the sponsor or owner at the official address of the sponsor or owner maintained by the Tax Collector for the mailing of tax bills, or if no such address is available, to the sponsor at the address of the development project, and (c) to the applicant for the site or building permit at the address on the permit application. Any failure of the Department or the City to give any notice required under this Article shall not relieve the project sponsor of its obligations under this Article.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
SEC. 408. LIEN PROCEEDINGS.
(a) Except in the case of a project for which MTA is responsible for the determination and collection of the TIDF under Section 411.9(d) of this Article, if a first construction document or first certificate of occupancy, whichever applies, is inadvertently or mistakenly issued prior to the project sponsor paying all development fees due and owing, or prior to the sponsor satisfying any development impact requirement, DBI shall institute lien proceedings to recover the development fee or fees, plus interest and any Development Fee Deferral Surcharge, under Section 107A.13.15 of the San Francisco Building Code.
(b) (1) Where MTA is responsible for determination and collection of the TIDF under Section 411.9(d) of this Article, MTA has made a final determination of TIDF due under that Section, and the amount due from the project sponsor remains unpaid following 30 days from the date of mailing of the additional notice of payment due under that Section, MTA may initiate lien proceedings in accordance with Article XX of Chapter 10 of the San Francisco Administrative Code to make the entire unpaid balance of the fee that is due, including interest at the rate of one and one-half percent per month or fraction thereof on the amount of unpaid fee, a lien against all parcels used for the development project.
(2) MTA shall send all notices required by Article XX to the owner or owners of the property and to the project sponsor if different from the owner. MTA shall also prepare a preliminary report, and notify the owner and sponsor of a hearing by the Board of Supervisors to confirm such report at least ten days before the date of the hearing. The report shall contain the owner and project sponsor's names, a description of the development project, a description of the parcels of real property to be encumbered as set forth in the Assessor's Map Books for the current year, a description of the alleged violation of Sections 411.1 et seq., and shall fix a time, date, and place for hearing. MTA shall transmit this report to the sponsor and each owner of record of the parcels of real property subject to the lien.
(3) Any notice required to be given to an owner or project sponsor shall be deemed sufficiently served for all purposes in this Section if
(A) personally served upon the owner or project sponsor, or
(B) if deposited, postage prepaid, in the U.S. Mail addressed to the owner or project sponsor at the official address of the owner or project sponsor maintained by the Tax Collector for the mailing of tax bills or, if no such address is available, to the sponsor at the address of the development project and to the applicant for the site or building permit at the address on the permit application.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 247-12
, File No. 120523, App. 12/18/2012, Eff. 1/17/2013)
AMENDMENT HISTORY
Formerly undesignated material amended and designated as division (a); division (b) added; Ord. 247-12
, Eff. 1/17/2013.
SEC. 409. CITYWIDE DEVELOPMENT FEE REPORTING REQUIREMENTS AND COST INFLATION FEE ADJUSTMENTS.
(a) Citywide Development Fee and Development Impact Requirements Report. In coordination with the Development Fee Collection Unit at DBI and the Director of Planning, the Controller shall issue a report within 180 days after the end of each even-numbered fiscal year that provides information on all development fees established in the Planning Code collected during the prior two fiscal years organized by development fee account and all cumulative monies collected over the life of each development fee account, as well as all monies expended. The report shall include: (1) a description of the type of fee in each account or fund; (2) the beginning and ending balance of the accounts or funds including any bond funds held by an outside trustee; (3) the amount of fees collected and interest earned; (4) an identification of each public improvement on which fees or bond funds were expended and amount of each expenditure; (5) an identification of the approximate date by which the construction of public improvements will commence; (6) a description of any inter-fund transfer or loan and the public improvement on which the transferred funds will be expended; and (7) the amount of refunds made and any allocations of unexpended fees that are not refunded. The report shall also provide information on the number of projects that elected to satisfy development impact requirements through the provision of "in-kind" physical improvements, including on-site and off-site BMR units, instead of paying development fees. The report shall also include any annual reporting information otherwise required pursuant to the California Mitigation Fee Act, Government Code 66001 et seq.The report shall be presented by the Director of Planning to the Planning Commission and to the Land Use & Transportation Committee of the Board of Supervisors. The report shall also contain information on the Controller’s annual construction cost inflation adjustments to development fees described in subsection (b) below, as well as information on MOHCD’s separate adjustment of the Inclusionary Affordable Housing Fee described in Section 415.5(b)(3).
(b) Annual Development Fee Inflation Adjustments. Prior to issuance of the Citywide Development Fee and Development Impact Requirements Report referenced in subsection (a) above, the Controller shall review the amount of each development fee established in the Planning Code and, with the exception of the Inclusionary Affordable Housing Fee in Section 415 et seq., shall adjust the dollar amount of any development fee by two percent on an annual basis every January 1 in order to maintain a reasonably conservative connection between construction costs and development fees for the next calendar year for a mix of public infrastructure and facilities in San Francisco. The Planning Department and the Development Fee Collection Unit at DBI shall provide notice of the Controller’s development fee adjustments, and MOHCD’s separate adjustment of the Inclusionary Affordable Housing Fee on the Planning Department and DBI websites and to any interested party who has requested such notice at least 30 days prior to the adjustment taking effect each January 1. The Inclusionary Affordable Housing Fee shall be adjusted under the procedures established in Section 415.5(b)(3).
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 55-11, File No. 101523, App. 3/23/2011; Ord. 263-13, File No. 130549, App. 11/27/2013, Eff. 12/27/2013; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 188-15
, File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 251-19, File No. 190548, App. 11/15/2019, Eff. 12/16/2019; Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023)
AMENDMENT HISTORY
SEC. 410. COMPREHENSIVE FIVE-YEAR EVALUATION OF ALL DEVELOPMENT FEES AND DEVELOPMENT IMPACT REQUIREMENTS.
Commencing on July 1, 2011, and every five fiscal years thereafter in conjunction with the Annual Citywide Development Fee and Development Impact Requirements Report described in Section 409, above, the Director and the Controller shall jointly prepare and publish a comprehensive report on the status of compliance with this Article, compliance of any development fees in this Article with the California Mitigation Fee Act, Government Code section 66001 et seq., including making specific findings regarding any unexpended funds, the efficacy of existing development fees and development impact requirements in mitigating the impacts of development projects, and the economic impacts of existing development fees and development impact requirements on the financial feasibility of projects and housing affordability in particular, taking into account, to the extent possible, the feasibility of the fees in different areas of the City. In such report, the Director and Controller may recommend any changes in the formulae or requirements or enforcement of any area-specific or Citywide development fee or development impact requirement in this Code, prepare additional economic impact studies on such changes or recommend that additional nexus studies or financial feasibility analyses be done, to improve the efficacy of such fees or requirements in mitigating development impacts or to reduce any unintended deleterious economic or social effects associated with such fees or requirements. In making their joint report and recommendations, the Director and the Controller shall consult with the Directors of OEWD, MOH, the MTA, or other agency whose fees are affected and shall coordinate the report required by this Section with any other development fee evaluations and reports that this Article requires to be performed. The Director and the Controller shall present the Report to the Commission at a public hearing and to the Land Use & Economic Development Committee of the Board of Supervisors at a separate public hearing.
AMENDMENT HISTORY
[TRANSIT IMPACT DEVELOPMENT FEE]
SEC. 424.8. TRANSIT CENTER DISTRICT MELLO ROOS COMMUNITY FACILITIES DISTRICT PROGRAM.
(a) Purpose. New construction that increases the density of the downtown area, and the C-3-O(SD) district in particular, will require the City to invest in substantial new infrastructure and services. By increasing height limits, relieving density and floor area ratio limitations, reducing requirements for acquisition of Transferrable Development Rights, and making other regulatory changes to the C-3-O(SD) district, the Transit Center District Plan, confers substantial benefits on properties in the district. In order to exceed base densities in the district, the City will require sufficient funding to supplement other applicable impact fees for infrastructure, improvements and services as described in the Transit Center District Implementation Document, including but not limited to the Downtown Extension of rail into the Transit Center, street improvements, and acquisition and development of open spaces.
(b) Requirement. Any development on any lot in the C-3-O(SD) district that meets the applicability criteria of subsection (c) below shall participate in the Transit Center District Mello Roos Community Facilities District ("CFD") and successfully annex the lot or lots of the subject development into said CFD prior to the issuance of the first Temporary Certificate of Occupancy for the development.
(c) Applicability. A development on any lot in the C-3-O(SD) District meeting any one of the following criteria shall be subject to the requirements of this Section 424.8.
(1) The proposed project causes the development on the subject lot to exceed a floor area ratio of 9:1; or
(2) The proposed project would create a structure that exceeds the height limit that was applicable to the subject lot prior to the effective date of this Ordinance.
(d) Notwithstanding Subsection (c) above, net additions of less than 20,000 gross square feet to existing buildings shall be exempt from the requirements of this Section, unless said addition results in a lot that exceeds a floor area ratio of 18:1.
[VAN NESS & MARKET COMMUNITY FACILITIES FEE AND FUND]
SEC. 426. PAYMENT FOR REQUIRED NON-RESIDENTIAL OPEN SPACE NOT PROVIDED IN THE EASTERN NEIGHBORHOODS MIXED USE AND C-3-O(SD) DISTRICTS.
(The effective date of these provisions shall be either December 19, 2008, the date that they originally became effective, or the date a subsequent modification, if any, became effective.)
(a) Eastern Neighborhoods Mixed Use Districts. In the Eastern Neighborhoods Mixed Use Districts, except for any parcels within the Central SoMa Special Use District, the usable open space requirement of Section 135.3 may be satisfied through payment of a fee of $76 for each square foot of usable open space not provided. In the Central SoMa Special Use District, the usable open space requirement of Section 135.3 may be satisfied through payment of a fee of $890 for each square foot of required usable open space not provided, and the POPOS requirement of Section 138 may be satisfied through a payment of a fee of $890 for each square foot of required open space not provided. Any square footage for which the Planning Commission grants an exception to design standards pursuant to Section 329(e) other than standards related to required square footage shall be considered as meeting the requirements of Sections 135.3 and 138 for purposes of this Section 426. These fees shall be adjusted in accordance with Section 423.3 of this Article. These fees shall be paid into the Recreation and Open Space subset of the Eastern Neighborhoods Community Improvements Fund, as described in Section 423 of this Article.
(b) C-3-O(SD) District. In the C-3-O(SD) District, if a project sponsor chooses to pay the in-lieu fee described in Section 138(j)(4), a fee of $1,410 shall be required for each square foot of usable open space not provided. This fee shall be adjusted in accordance with Section 409. This fee shall be paid into the Transit Center District Open Space Fund, as described in Sections 424.6 et seq. of this Article 4. Said fee shall be used for the purpose of acquiring, designing, and improving public open space, recreational facilities, and other open space resources, which are expected to be used solely or in substantial part by persons who live, work, shop, or otherwise do business in the Transit Center District.
(c) C-3-O District, C-3-S District, and C-3-G District. In the C-3-O, C-3-S, and C-3-G Districts, if a project sponsor chooses to pay the in-lieu fee described in Section 138(j)(4), a fee of $1,410 shall be required for each square foot of usable open space not provided. The amount of this fee shall equal the fee payable under this subsection (b)1
and shall be adjusted in accordance with Section 409. This fee shall be paid into the Downtown Park Fund, as described in Section 412 of this Article 4. Said fee shall be used for the purpose of acquiring, designing, and improving public open space, recreational facilities, and other open space resources, which are expected to be used solely or in substantial part by persons who live, work, shop, or otherwise do business Downtown.
(d) C-3-R District. In the C-3-R Districts, if a project sponsor chooses to pay the in-lieu fee described in Section 138(j)(4), a fee shall be required for each square foot of usable open space not provided. The amount of this fee shall equal the fee payable under this subsection (b)1
and shall be adjusted in accordance with Section 409. This fee shall be paid into the Union Square Park, Recreation, and Open Space Fee, as described in Sections 434 of this Article 4. Said fee shall be used for the purpose of acquiring, designing, and improving public open space, recreational facilities, and other open space resources, which are expected to be used solely or in substantial part by persons who live, work, shop, or otherwise do business Downtown.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019; Ord. 47-21, File No. 201175, App. 4/16/2021, Eff. 5/17/2021; Ord. 122-23, File No. 230371, App. 7/5/2023, Eff. 8/5/2023; Ord. 159-23, File No. 230732, App. 7/28/2023, Eff. 8/28/2023)
AMENDMENT HISTORY
Section header and section amended; Ord. 296-18, Eff. 1/12/2019. Section header amended; formerly undesignated paragraph amended and designated as division (a); division (b) added; Ord. 47-21, Eff. 5/17/2021. Nonsubstantive amendment to division (b); divisions (c) and (d) added; Ord. 122-23, Eff. 8/5/2023, and Ord. 159-23, Eff. 8/28/2023.
CODIFICATION NOTE
SEC. 427. PAYMENT IN CASES OF VARIANCE OR EXCEPTION FOR REQUIRED RESIDENTIAL OPEN SPACE IN THE EASTERN NEIGHBORHOODS MIXED USE AND C-3-O(SD) DISTRICTS.
(a) Eastern Neighborhoods Mixed Use Districts. In the Eastern Neighborhoods Mixed Use Districts, except for the Central SoMa Special Use District, any project that obtains a Variance pursuant to Section 305, or an exception pursuant to Section 329, to provide less usable open space than otherwise required by Section 135 shall pay a fee of $327 for each square foot of usable open space not provided. In the Central SoMa Special Use District, any project that obtains a Variance pursuant to Section 305, an exception pursuant to Section 329, or chooses the in-lieu option pursuant to Section 135(d)(5)(B)(ii) shall pay a fee of $890 for each square foot of required useable open space not provided. These fees shall be adjusted in accordance with Section 423.3 of this Article. These fees shall be paid into the Recreation and Open Space subset of the Eastern Neighborhoods Community Improvements Fund, as described in Section 423 of this Article.
(b) C-3-O(SD) District. In the C-3-O(SD) District, if a Variance or Planning Commission exception is granted to reduce the amount of open space required for any use pursuant to Section 135, a fee of $1,410 shall be required for each square foot of usable open space not provided. This fee shall be adjusted in accordance with Section 409. This fee shall be paid into the Transit Center District Open Space Fund, as described in Sections 424.6 et seq. of this Article. Said fee shall be used for the purpose of acquiring, designing, and improving public open space, recreational facilities, and other open space resources, which are expected to be used solely or in substantial part by persons who live, work, shop or otherwise do business in the Transit Center District.
AMENDMENT HISTORY
[DIVISADERO STREET NCT AFFORDABLE HOUSING FEE]
SEC. 428A. [REPEALED.]
(Ord. 270-10, File No. 100917, App. 11/5/2010; repealed by Ord. 71-14
, File No. 131205, App. 5/23/2014, Eff. 6/22/2014)
[PUBLIC ART FEE]
SEC. 430. BICYCLE PARKING IN LIEU FEE.
(a) Application of Fee. A project sponsor may satisfy some or all of the requirement to provide Class 2 bicycle parking under this Code by paying the Bicycle Parking In Lieu Fee provided in this Section.
(1) The sponsor may elect to pay an in lieu fee to satisfy up to 50 percent of the Class 2 bicycle parking requirement for the uses specified in Table 155.2, provided that no more than 20 required Class 2 bicycle parking spaces are satisfied through the in lieu payment under this subsection.
(2) Notwithstanding subsection (a)(1), the sponsor may elect to pay an in lieu fee to satisfy up to 100 percent of the requirement for uses required by Table 155.2 to provide four or fewer Class 2 bicycle parking spaces.
(b) Amount of Fee. The amount of the in lieu fee shall be $400 per Class 2 bicycle parking space. This fee shall be adjusted pursuant to Section 409 of this Code.
(c) Department Notice to Development Fee Collection Unit at the Department of Building Inspection ("DBI"). If the project sponsor has elected to pay the Bicycle Parking In Lieu Fee to satisfy some or all required Class 2 bicycle parking spaces, the Department shall immediately notify the Development Fee Collection Unit at DBI of its determination, in addition to the other information required by Section 402(b) of this Article.
(d) Collection of Bicycle Parking in Lieu Fee. The Bicycle Parking In Lieu Fee shall be paid to DBI for deposit into the Bicycle Parking Fund at the time required by Section 402(d).
(e) Process for Revisions or Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to this Section 430 and such action is subsequently modified, superseded, vacated, or reversed by the Board of Appeals, the Board of Supervisors, or by court action, the Department shall determine any revisions of the bicycle parking requirement, including the in lieu fee, as applied to the project, following the procedures of Section 402(c) of this Article.
AMENDMENT HISTORY
SEC. 430.1. BICYCLE PARKING FUND.
There is hereby established a separate fund set aside for a special purpose entitled the Bicycle Parking Fund ("Fund"). This fund shall be administered by the San Francisco Municipal Transportation Agency. DBI shall deposit in the Fund all monies it collects under Section 430. The City shall use all monies deposited in the Fund solely to install and maintain bicycle parking in areas of the City with inadequate public short-term bicycle parking facilities.
SEC. 431. SEVERABILITY.
In the event that a court or agency of competent jurisdiction holds that federal or state law, rule or regulation invalidates any clause, sentence, paragraph or section of this Article or the application thereof to any person or circumstances, it is the intent of the Board of Supervisors that the court or agency sever such clause, sentence, paragraph or section so that the remainder of this Article shall remain in effect.
[CENTRAL SOMA COMMUNITY SERVICES FACILITIES FEE AND FUND]
SEC. 436. WELL-RESOURCED NEIGHBORHOODS INCLUSIONARY HOUSING ORDINANCE WAIVER AND ADDITIONAL INCLUSIONARY HOUSING OPTIONS.
This Section 436 provides for a waiver of the requirements in the Inclusionary Housing Ordinance, Section 415 et seq., for specified Housing Projects in certain districts in Well-Resourced Neighborhoods. This Section 436 also allows Housing Projects in those districts to comply with the Inclusionary Housing Ordinance through a land dedication. As used in this Section 436, Well-Resourced Neighborhoods means those areas outside the Priority Equities Geographies Special Use District (SUD), Section 249.97.
(a) Eligibility. This Section 436 shall apply to Housing Projects in Residential – House (RH), Residential Mixed (RM), Neighborhood Commercial or Named Neighborhood Commercial Districts with a height limit of 65 feet or less located in Well-Resourced Neighborhoods.
(b) Additional Inclusionary Housing Options.
(1) Rent Control. If an eligible Housing Project is a Rental Project and agrees to subject all units in the project to the San Francisco Rent Stabilization and Arbitration Ordinance (Chapter 37 of the Administrative Code for the Life of the Project, the project shall not be subject to the Inclusionary Housing Ordinance, Planning Code Section 415 et seq., pursuant to this Section 436.
(A) Regulatory Agreement. Project Sponsors of Housing Projects that agree to subject all units in the Housing Project to the San Francisco Rent Stabilization and Arbitration Ordinance (Chapter 37 of the Administrative Code) pursuant to this subsection (a)1
shall enter into a regulatory agreement with the City, as a condition of approval of the project (“Regulatory Agreement”). At a minimum, the Regulatory Agreement shall contain the following: (A) a statement that none of the units in the project are subject to the Costa-Hawkins Rental Housing Act (California Civil Code Sections 1954.50 et seq.) because, consistent with California Civil Code Section 1954.52(b), the property owner has entered into and agreed to the terms of an agreement with the City in consideration for a direct financial contribution or other form of assistance specified in California Government Code Sections 65915 et seq.; (B) a statement that the units will be rented for the Life of the Project because, consistent with Government Code Section 7060.1(a), the property owner has entered into and agreed to the terms of an agreement with the City, in consideration for a direct financial contribution specified in Section 7060.1(a); (C) a statement that all units subject to the Regulatory Agreement shall be held as an undivided ownership and will not be subdivided; (D) a calculation of the direct financial contribution or form of assistance provided to the property owner in the form of the fee waiver; and (E) a description of the remedies for breach of the agreement and other provisions to ensure implementation and compliance with the agreement. The property owner and the Planning Director or the Director’s designee, on behalf of the City, may execute the Regulatory Agreement, which shall be reviewed and approved as to form by the City Attorney’s Office. The Regulatory Agreement shall be executed prior to the City’s issuance of the First Construction Document for the project, as defined in Section 107A.13.1 of the San Francisco Building Code. Following execution of the Regulatory Agreement by all parties, the Regulatory Agreement or a memorandum thereof shall be recorded to the title records in the Office of the Assessor-Recorder against the property and shall be binding on all future owners and successors in interest.
(B) Procedures Manual. If a Housing Project subject to this Section 436 includes Rental Units subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower income in compliance with any state law, those units shall comply with the timing, type, and marketing requirements of Section 415.6(e), (f), and (g), and the Procedures Manual, as amended from time to time.
(2) Land Dedication Alternative. In lieu of Section 415 et seq., the Project Sponsor of any Housing Project outside the Priority Equity Geographies SUD, may comply with the Land Dedication Alternative requirements in Section 419.5(a)(2), except that in lieu of the Land Dedication Alternative requirements of Table 419.5, projects may satisfy the requirements of Section 415.5 by dedicating land for affordable housing if the dedicated land could accommodate a total amount of units that is equal to or greater than 35% of the units that are being provided on the principal development site, as determined by the Planning Department. Any land dedicated pursuant to this Section 436 shall be provided outside the Priority Equity Geographies SUD.
(Added by Ord. 260-25, File No. 250815, App. 12/23/2025, Eff. 1/23/2026)
CODIFICATION NOTE
ARTICLE 5:
[RESERVED]
[RESERVED]
A
“Affordable Price.” The price at which the Owned Unit would be Affordable to Qualifying Households.
“Affordable Unit” or “Affordable Housing Unit.” A unit that is Affordable to Qualifying Households under Section 415 et seq.
"Affordable to a household" shall mean a purchase price that a household can afford to pay based on an annual payment for all housing costs, as defined in California Code of Regulations ("CCR") Title 25, Section 6920, as amended from time to time, of 33 percent of the combined household annual gross income, assuming a down payment recommended by the Mayor's Office of Housing in the Procedures Manual, and available financing, or a rent that does not exceed 30 percent of a household's combined annual gross income. Where applicable, the purchase price or rent may be adjusted to reflect the absence or existence of a parking space(s), subject to the Department's policy on unbundled parking for affordable housing units as specified in the Procedures Manual and amended from time to time.
“Affordable to Qualifying Households.”
(A) With respect to Owned Units, the average purchase price on the initial sale of all Owned Units in a housing project shall not exceed the allowable average purchase price. Each unit shall be sold:
(i) Only to first-time homebuyer households, as defined in this Section;
(ii) Only to households with an annual gross income equal to or less than the qualifying income limits for a household of moderate income, adjusted for household size, except for the exceptions set forth in Section 415.8(a)(4)(C), (D), and (E);
(iii) Only to households that meet the household size requirements, as defined in the Procedures Manual;
(iv) On the initial sale, at or below the maximum purchase price, as defined in this Section;
(v) On subsequent sales at or below the prices to be determined according to the formula specified in the Procedures Manual in place at the time of the purchase of the Owned Unit, as amended from time to time, such that the units remain affordable for the life of the project. The formula in the Procedures Manual shall permit the seller to include certain allowable capital improvements in the new maximum purchase price. The formula shall include a per unit cap on capital improvements of 10% of the resale price in order to maintain affordability. Special Assessments shall be added to the resale price at an uncapped rate. Capital improvement requests shall be evaluated by the Mayor’s Office of Housing according to the formula specified in the Procedures Manual.
(B) With respect to Rental Units, the average annual rent shall not exceed the allowable average annual rent. Each unit shall be rented:
(i) Only to households with an annual gross income equal to or less than qualifying limits for a household of lower income adjusted for household size, as defined in this Section, except for the exceptions set forth in Section 415.8(a)(4)(A) and (B);
(ii) Only to households that meet the household size requirements, as defined in the Procedures Manual;
(iii) At or less than the maximum annual rent.
“Allowable average purchase price.” A price for all Owned Units of the size indicated below that are affordable to a household of median income as defined in this Section, adjusted for the household size indicated below as of the date of the close of escrow, except for Single Room Occupancy units and Group Housing units that are less than 350 square feet (both as defined in Section 102), which shall be 75% of the maximum purchase price level for studio units, and, where applicable, adjusted to reflect the Department's policy on unbundled parking for affordable housing units as specified in the Procedures Manual and amended from time to time:
Number of Bedrooms (or, for live/work units square foot equivalency) | Number of Persons in Household |
0 (Less than 600 square feet) | 1 |
1 (601 to 850 square feet) | 2 |
2 (851 to 1,100 square feet) | 3 |
3 (1,101 to 1,300 square feet) | 4 |
4 (More than 1,300 square feet) | 5 |
“Allowable average annual rent.” Annual rent for a Rental Unit of the size indicated below that is 30% of the annual gross income of a household of low income as defined in this Section, adjusted for the household size indicated below except for Single Room Occupancy units and Group Housing units that are less than 350 square feet (both as defined in Section 102), which shall be 75% of the maximum rent level for studio units, and, where applicable, adjusted to reflect the Department's policy on unbundled parking for affordable housing units as specified in the Procedures Manual and amended from time to time:
Number of Bedrooms (or, for live/work units square foot equivalency) | Number of Persons in Household |
0 (Less than 600 square feet) | 1 |
1 (601 to 850 square feet) | 2 |
2 (851 to 1,100 square feet) | 3 |
3 (1,101 to 1,300 square feet) | 4 |
4 (More than 1,300 square feet) | 5 |
At no time can a rent increase, or can multiple rent increases within one year, exceed the percentage change in Maximum Monthly Rent levels as published by MOHCD from the previous calendar year to the current calendar year.
"Area Median Income" or "AMI." The unadjusted median income levels derived from the Department of Housing and Urban Development ("HUD") on an annual basis for the San Francisco area, adjusted solely for household size, but not high housing cost area.
“Annual gross income.” Gross income as defined in CCR Title 25, Section 6914, as amended from time to time, except that MOHCD may, in order to promote consistency with the procedures of the San Francisco Redevelopment Agency, develop an asset test that differs from the State definition if it publishes that test in the Procedures Manual.
"Annual net income." Net income as defined in Title 25 of the California Code of Regulations Section 6916.
"Area Plan Impact Fee" shall mean a development impact fee collected by the City to mitigate impacts of new development in the Area Plans of the San Francisco General Plan, under Article 4 of the Planning Code.
“Average annual rent.” The total annual rent for the calendar year charged by a housing project for all Rental Units in the project of an equal number of bedrooms divided by the total number of Affordable Units in the project with that number of bedrooms.
“Average purchase price.” The purchase price for all Owned Units in an affordable housing project of an equal number of bedrooms divided by the total number of Affordable Units in the project with that number of bedrooms.
B
"Balboa Park Community Improvements Fund." The fund into which all fee revenue the City collects from the Balboa Park Impact Fee is deposited.
"Balboa Park Community Improvements Program." The program intended to implement the community improvements identified in the Balboa Park Area Plan, as articulated in the Balboa Park Community Improvements Program Document on file with the Clerk of the Board in File No. 090179.
"Balboa Park Impact Fee." The fee collected by the City to mitigate impacts of new development in the Balboa Park Program Area, as described in the findings in Section 422.1.
"Balboa Park Program Area." The Balboa Park Plan Area in Figure 1 of the Balboa Park Station Area Plan of the San Francisco General Plan.
"Base service standard." The relationship between revenue service hours offered by the Municipal Railway and the number of automobile and transit trips estimated to be generated by certain non-residential uses, expressed as a ratio where the numerator equals the average daily revenue service hours offered by MUNI and the denominator equals the daily automobile and transit trips generated by non-residential land uses as estimated by the TIDF Study, the TIDF Update Report, or as updated under Section 410 of this Article.
"Base service standard fee rate." The TIDF that would allow the City to recover the estimated costs incurred by the Municipal Railway to meet the demand for public transit resulting from new development in the economic activity categories for which the fee is charged, after deducting government grants, fare revenue, and costs for non-vehicle maintenance and general administration.
C
“Change of Use.” A change from one land use to another land use. For purposes of calculating any impact fees, credits, or waivers under Article 4, if the Gross Floor Area to be changed has no legally established use, the change of use shall consider the last legal use.
“Child-care provider.” A provider as defined in California Health and Safety Code Section 1596.791.
“Community apartment.” As defined in San Francisco Subdivision Code Section 1308(b).
"Condominium." As defined in California Civil Code Section 783.
"Cultural/Institution/Education (CIE)." An economic activity category subject to the TIDF that includes, but is not limited to, Schools and Post-Secondary Educational Institutions; Child Care Facilities; museums and zoos considered Public Facilities; and Community Facilities and Private Community Facilities, as defined in Section 102.
D
"Dedicated." Legally transferred to the City and County of San Francisco, including all relevant legal documentation, at no cost to the City.
"Dedicated site." The portion of site proposed to be legally transferred at no cost to the City and County of San Francisco under the requirements of this section.
“Designated affordable housing zones.” For the purposes of implementing the Eastern Neighborhoods Community Improvements Fund, shall mean the Mission Street NCT defined in Section 754.
Designated Child Care Unit. As defined in Section 102.
"Development Application" shall mean any application for a building permit, site permit, Conditional Use, Variance, Large Project Authorization, or any application pursuant to Planning Code Sections 309, 309.1, or 322
or any application to the Planning Department for ministerial approval pursuant to state law, including but not limited to California Government Code Sections 65913.4, 65650 et seq., or 65912.100 et seq.
"Development fee." Either a development impact fee or an in-lieu fee. It shall not include a fee for service or any time and material charges charged for reviewing or processing permit applications.
"Development Fee Collection Unit" or "Unit." The Development Fee Collection Unit at DBI.
"Development impact requirement." A requirement to provide physical improvements, facilities or below market rate housing units imposed on a development project as a condition of approval to mitigate the impacts of increased demand for public services, facilities or housing caused by the development project that may or may not be governed by the California Mitigation Fee Act (California Government Code Section 66000 et seq.).
"Development project." Any change of use within an existing structure, addition to an existing structure, or new construction, which includes any occupied floor area.
"Director of Transportation." The Director of Transportation of the MTA or his or her designee(s).
E
“Eastern Neighborhoods Community Improvements Fund.” The fund into which all fee revenue collected by the City from the Eastern Neighborhoods Impact Fee is deposited.
"Eastern Neighborhoods Infrastructure Impact Fee." The fee collected by the City to mitigate impacts of new development in the Eastern Neighborhoods Program Area, as described in the Findings in Section 423.1
"Eastern Neighborhoods Program Area." The Eastern Neighborhoods Plan Area in Map 1 (Land Use Plan) of the Eastern Neighborhoods Area Plan of the San Francisco General Plan.
"Eastern Neighborhoods Public Benefits Program." The program intended to implement the community improvements identified in the five Area Plans affiliated with the Eastern Neighborhoods (Central Waterfront, East SoMa, Western SoMa, Mission, and Showplace Square/Potrero Hill), as articulated in the Eastern Neighborhoods Public Benefits Program Document, on file with the Clerk of the Board in File No. 081155, and the Western SoMa Public Benefits Program Document, on file with the Clerk of the Board in File No. 130004.)
"Economic activity category." Under the TIDF, one of the following six categories of non-residential uses: Cultural/Institution/Education (CIE), Management, Information and Professional Services (MIPS), Medical and Health Services, Production/Distribution/Repair (PDR), Retail/Entertainment, and Visitor Services.
"Entertainment use." For the purposes of this Section shall mean space within a structure or portion thereof intended or primarily suitable for or accessory to the operation of Nighttime Entertainment, General Entertainment, Adult Businesses, and Movie Theater uses as defined in Section 102 regardless of the zoning district that the use is located in.
F
“Final Approval.” For the purposes of this Section 401 shall mean (1) approval of a project’s first Development Application, unless such approval is appealed; or (2) if a project only requires a building permit, planning approval of the first site or building permit, unless such permit is appealed; or (3) if the first Development Application or first site or building permit is appealed, then the final decision upholding the Development Application, or first site or building permit, on the appeal by the relevant City Board or Commission.
"First Certificate of Occupancy." Either a temporary Certificate of Occupancy or a Certificate of Final Completion and Occupancy as defined in San Francisco Building Code Section 109A, whichever is issued first.
"First construction document." As defined in Section 107A.13.1 of the San Francisco Building Code.
"First-time homebuyer household." At a minimum, shall be a household in which no member of the qualifying household may have owned any interest in a dwelling unit for a three-year period prior to applying to qualify for purchase of a unit restricted as affordable under the Inclusionary Housing Program. The Procedures Manual may contain additional requirements as necessary.
G
"Gross Floor Area." The total area of each floor within the building's exterior walls, as defined in Section 102 of this Code, except for areas devoted to off-street parking and except that for the purposes of determining the applicability of the TIDF, the exclusion from this definition set forth in Subsection (b)(13) of the definition of Gross Floor Area shall not apply. The provision for certain projects in the Van Ness Special Use District set forth in Subsection (b)(20) of the definition shall apply.
"Gross square feet of use." The meaning set forth in Section 102 of this Code, except for areas devoted to off-street parking and with the exception of the TIDF. With respect to the TIDF, the total square feet of gross floor area in a building and/or space within or adjacent to a structure devoted to all uses covered by the TIDF, including any common areas exclusively serving such uses and not serving residential uses. Where a structure contains more than one use, areas common to two or more uses, such as lobbies, stairs, elevators, restrooms, and other ancillary spaces included in gross floor area that are not exclusively assigned to one uses shall be apportioned among the two or more uses in accordance with the relative amounts of gross floor area, excluding such space, in the structure or on any floor thereof directly assignable to each use.
H
"Hope SF Project Area" shall mean an area owned by or previously owned by the San Francisco Housing Authority that is currently undergoing, or planned to undergo redevelopment, whereby existing affordable dwelling units will be replaced, new affordable housing units will be constructed, and market-rate units may be constructed as a means to cross-subsidize newly needed infrastructure and affordable units. Hope SF Project Area shall include the Hunters View project, which is located within the Hunters View Special Use District, the Potrero Terrace and Annex Project, which includes Assessor's Block 4367, Lots 004 and 004A; Block 4220A, Lot 001, Block 4222, Lot 001; and Block 4223, Lot 001; and the Sunnydale/Velasco Project, which includes Assessor's Block 6310, Lot 001; Block 6311, Lot 001; Block 6312, Lot 001; Block 6313, Lot 001; Block 6314, Lot 001; and Block 6315, Lot 001.
"Household." Any person or persons who reside or intend to reside in the same housing unit.
"Household of low income." For purposes of Section 415 et seq., a household whose combined annual gross income for all members does not exceed 55 percent of AMI.
"Household of median income." For purposes of Section 415 et seq., a household whose combined annual gross income for all members does not exceed 90 percent of AMI.
"Household of moderate income." For purposes of Section 415 et seq., a household whose combined annual gross income for all members does not exceed 110 percent of AMI.
"Housing developer." Any business entity building housing units which receives a payment from a sponsor for use in the construction of the housing units. A housing developer may be
(a) the same business entity as the sponsor,
(b) an entity in which the sponsor is a partner, joint venturor, or stockholder, or
(c) an entity in which the sponsor has no control or ownership.
“Housing project.” Any development which includes a Residential Use as defined in Section 102 of this Code, including but not limited to Dwellings, Group Housing, Single Room Occupancy Units, independent living units, and other forms of development which are intended to provide long-term housing to individuals and households. “Housing project” shall not include that portion of a development that qualifies as an Institutional Use under the Planning Code. “Housing project” for purposes of the Inclusionary Housing Program shall also include the development of Live/Work units as defined by Section 102. Housing project for purposes of the Inclusionary Housing Program shall mean all phases or elements of a multi-phase or multiple lot residential development.
"Housing unit" or "unit." A residential use in a Housing project. For the purposes of the Inclusionary Affordable Housing Program, Planning Code Section 415 et seq., and corresponding definitions in this Section 401, the use of the word "unit" will also mean bedrooms where a Group Housing or other Housing project is measured by number of bedrooms.
I
"Improvements Fund." The fund into which all revenues collected by the City for each Program Area's impact fees are deposited.
"Infrastructure." Open space and recreational facilities; public realms improvements such as pedestrian improvements and streetscape improvements; public transit facilities; and community facilities such as libraries, child care facilities, and community centers.
"Institutional use." Space within a structure or portion thereof intended or primarily suitable for or accessory to the operation of an Institutional use as defined in Code Section 102, regardless of the zoning district that the use is located in.
"Interim Guidelines." The Office Housing Production Program Interim Guidelines adopted by the Planning Commission on January 26, 1982, as amended.
L
"Life of the project." The time during which the development authorized by the Planning Department or Commission, or any modification of such development, remains in existence in or upon the subject property and thereby confers benefit upon the subject property.
"Low income." For purposes of this Article, up to 80% of median family income for the San Francisco PMSA, as calculated and adjusted by the United States Department of Housing and Urban Development (HUD) on an annual basis, except that as applied to housing-related purposes such as the construction of affordable housing and the provision of rental subsidies with funds from the SOMA Stabilization Fund established in Section 418.7, it shall mean up to 60% of median family income for the San Francisco PMSA, as calculated and adjusted by HUD on an annual basis.
M
"Market and Octavia Community Improvements Fund." The fund into which all fee revenue collected by the City from the Market and Octavia Community Improvements Fee is deposited.
"Market and Octavia Community Improvements Impact Fee." The fee collected by the City to mitigate impacts of new development in the Market and Octavia Program Area, as described in the findings in Section 421.1.
“Market and Octavia Community Improvements Program.” The program intended to implement the community improvements identified in the Market and Octavia Area Plan, as articulated in the Market and Octavia Community Improvements Program Document on file with the Clerk of the Board in File No. 071157, and as updated in the revised Market and Octavia Community Improvements Program Document, identified as part of the amendments to the Market and Octavia Area Plan for the area known as the Hub, on file with the clerk of the board in File No. 200559.
“Market and Octavia Program Area.” The Market and Octavia Plan Area in Map 1 (Land Use Plan) of the Market and Octavia Area Plan of the San Francisco General Plan, which includes those districts zoned RTO, NCT, or any neighborhood specific NCT, a few parcels zoned RH-1 or RH-2, and those parcels within the Van Ness and Market Downtown Residential Special Use District (VMDRSUD). The Program Area shall also include the entirety of the Upper Market NCT District, including any portions of such District that fall outside of the Market and Octavia Plan Area.
"Market rate housing." Housing constructed in the principal project that is not subject to sales or rental restrictions.
"Maximum annual rent." The maximum rent that a housing developer may charge any tenant occupying an affordable unit for the calendar year. The maximum annual rent for an affordable housing unit of the size indicated below shall be no more than 30% of the annual gross income for a household of low income as defined in this Section, as adjusted for the household size indicated below, except in the case of Single Room Occupancy units and Group Housing units that are less than 350 square feet (both as defined in Section 102), which shall be 75% of the maximum rent level for studio units, as of the first date of the tenancy:
Number of Bedrooms (or, for live/work units square foot equivalency) | Number of Persons in Household |
0 (Less than 600 square feet) | 1 |
1 (601 to 850 square feet) | 2 |
2 (851 to 1,100 square feet) | 3 |
3 (1,101 to 1,300 square feet) | 4 |
4 (More than 1,300 square feet) | 5 |
At no time can a rent increase, or can multiple rent increases within one year, exceed the percentage change in Maximum Monthly Rent levels as published by MOHCD from the previous calendar year to the current calendar year.
“Maximum purchase price.” The maximum purchase price for an Owned Unit of the size indicated below except in the case of Single Room Occupancy units and Group Housing units that are less than 350 square feet (both as defined in Section 102), which shall be 75% of the maximum purchase price level for studio units, that is affordable to a household of moderate income, adjusted for the household size indicated below, assuming an annual payment for all housing costs of 33 percent of the combined household annual gross income, a down payment recommended by MOHCD and set forth in the Procedures Manual, and available financing:
Number of Bedrooms (or, for live/work units square foot equivalency) | Number of Persons in Household |
0 (Less than 600 square feet) | 1 |
1 (601 to 850 square feet) | 2 |
2 (851 to 1,100 square feet) | 3 |
3 (1,101 to 1,300 square feet) | 4 |
4 (More than 1,300 square feet) | 5 |
“Mayor’s Office of Housing” or “MOH.” The Mayor’s Office of Housing and Community Development or its successor.
“Medical and Health Services.” An economic activity category under the TIDF that includes, but is not limited to, Hospital use and Social Service and Philanthropic Facility uses.
"Middle Income Household." Except as used in Section 415 et seq., a household whose combined annual gross income for all members is between 120 percent and 150 percent of the local median income for the City and County of San Francisco, as calculated by the Mayor's Office of Housing using data from the United States Department of Housing and Urban Development (HUD) and adjusted for household size or, if data from HUD is unavailable, as calculated by the Mayor's Office of Housing using other publicly available and credible data and adjusted for household size.
“MOH.” The Mayor’s Office of Housing, or the Mayor’s Office of Housing and Community Development, or its successor.
“MOHCD.” The Mayor’s Office of Housing and Community Development, or its successor.
"MTA." The Municipal Transportation Agency, or its successor.
"Municipal Railway; MUNI." The public transit system owned by the City and under the jurisdiction of the MTA.
"Museum." A permanent institution open to the public, which acquires, conserves, researches, communicates and exhibits the heritage of humanity or the environment.
N
"Nonprofit child-care provider." A child-care provider that is an organization organized and operated for nonprofit purposes within the provisions of California Revenue and Taxation Code Sections 23701-23710, inclusive, as demonstrated by a written determination from the California Franchise Tax Board exempting the organization from taxes under Revenue and Taxation Code Section 23701.
"Nonprofit organization." An organization organized and operated for nonprofit purposes within the provisions of California Revenue and Taxation Code Sections 23701-23710, inclusive, as demonstrated by a written determination from the California Franchise Tax Board exempting the organization from taxes under Revenue and Taxation Code Section 23701.
O
“Off-site Unit.” A unit Affordable to Qualifying Households constructed pursuant to this Article on a site other than the site of the Principal Project. If a Housing Project is constructed in multiple phases or consists of multiple buildings, Affordable Units may be constructed in one building or phase.
“On-site Unit.” A unit Affordable to Qualifying Households constructed pursuant to this Article on the site of the principal project. If a Housing Project is constructed in multiple phases or consists of multiple buildings, Affordable Units shall be distributed proportionally throughout the building or phase.
“Owned Unit.” A unit Affordable to Qualifying Households that is a condominium, stock cooperative, community apartment, or detached single-family home. The owner or owners of an Owned Unit must occupy the unit as their primary residence.
"Owner." The record owner of the fee or a vendee in possession.
“Owner Occupied.” A qualified-income owner lives in the affordable unit as his or her principal residence and resides in the unit for a minimum period of time set forth in the Procedures Manual.
P
"Principal project." A housing development on which a requirement to provide affordable housing units is imposed.
"Principal site." The total site proposed for development, including the portion of site proposed to be legally transferred to the City and County of San Francisco.
“Procedures Manual.” The City and County of San Francisco Inclusionary Affordable Housing Program Monitoring Procedures Manual issued by the Mayor’s Office of Housing and Community Development, as amended from time to time.
Q
“Qualifying Income.” The income at which a household meets the income eligibility requirements for a particular BMR Unit. The Qualifying Income may be higher than the maximum income limit or income range required in the Notice of Special Restrictions or other document establishing affordability restrictions for the BMR Unit.
R
"Rent" or "rental." The total charges for rent, utilities, and related housing services to each household occupying an affordable unit.
“Rental Unit.” A unit Affordable to Qualifying Households that is not a condominium, stock cooperative, or community apartment.
“Replacement of use.” The total amount of Gross Floor Area, as defined in Section 102 of this Code, to be demolished and reconstructed by a development project. For purposes of calculating any impact fees, credits, or waivers under Article 4, if the Gross Floor Area to be demolished has no legally established use, the replacement of use shall consider the last legal use.
"Research and development use." Space within any structure or portion thereof intended or primarily suitable for or accessory to the operation of uses defined in San Francisco Planning Code Section 890.52, regardless of the zoning district that the use is located in.
“Retail/entertainment.” An economic activity category under the TIDF that includes, but is not limited to, a Retail Use, except those Retail Uses which are also PDR Uses; an entertainment use as defined in this section; and Massage Establishments.
"Retail use." For the purposes of this Section, space within any structure or portion thereof intended or primarily suitable for or accessory to the operation of uses contained in the definition of Retail Sales and Services in Section 102, excluding any use that is also considered a PDR Use per Section 102, regardless of the zoning district that the use is located in.
"Revenue services hours." The number of hours that the Municipal Railway provides service to the public with its entire fleet of buses, light rail (including streetcars), and cable cars.
"Rincon Hill Community Improvements Fund." The fund into which all fee revenue collected by the City from the Rincon Hill Community Infrastructure Impact Fee is deposited.
"Rincon Hill Community Infrastructure Impact Fee." The fee collected by the City to mitigate impacts of new development in the Rincon Hill Program Are, as described in the findings in Section 418.1.
"Rincon Hill Program Area." Those districts identified as the Rincon Hill Downtown Residential (RH DTR) Districts in the Planning Code and on the Zoning Maps.
S
"Section 6932." Section 6932 of Title 25 of the California Code of Regulations as such section applies to the County of San Francisco.
"Significant increase in residential development potential" shall mean, for purposes of Charter Section 16.110(h) and the implementation of the Inclusionary Affordable Housing Program, for areas subject to a change in zoning enacted after November 6, 2012 that affects 40 or more acres or greater and results in a significant increase in residential development potential, where the area is not also encompassed by a Special Use District adopted after November 6, 2012:
(a) a 20% or greater increase in developable residential gross floor area, as measured by a change in height limits, Floor Area Ratio limits, or use, over prior zoning, or
(b) a change in use permitting Residential Uses (either as a principally permitted use or with a Conditional Use authorization) where Residential Uses were not previously principally permitted or permitted with a Conditional Use authorization, or
(c) For parcels with an existing residential development capacity of 10 units or greater, the lesser of
1. a 50% or greater increase in residential densities over prior zoning, or,
2. an increase in density of at least 15 additional units over the number of units allowed under prior zoning.
3. For the purposes of determining residential development capacity, the Planning Department shall use unit sizes and efficiency ratios typical (or the subject area at the time of the rezoning.
Small Family Daycare Home. A Small Family Daycare Home is defined by California Health & Safety Code Section 1596.78(c), as amended from time to time.
"SOMA." The area bounded by Market Street to the north, Embarcadero to the east, King Street to the south, and South Van Ness and Division to the west.
"SOMA Community Stabilization Fee." The fee collected by the City to mitigate impacts on the residents and businesses of SOMA of new development in the Rincon Hill Program Area, as described in the findings in Section 418.1.
"SOMA Community Stabilization Fund." The fund into which all fee revenue collected by the City from the SOMA Community Stabilization Fee is deposited.
"Sponsor" or "project sponsor." An applicant seeking approval for construction of a development project subject to this Article, such applicant's successor and assigns, and/or any entity which controls or is under common control with such applicant.
"Stock cooperative." As defined in California Business and Professions Code Section 11003.2.
T
"TIDF; Transit Impact Development Fee." The development fee that is the subject of Section 411.1 et seq. of this Article.
"TIDF Study." The study commissioned by the San Francisco Planning Department and performed by Nelson/Nygaard Associates entitled "Transit Impact Development Fee Analysis - Final Report," dated May 2001, including all the Technical Memoranda supporting the Final Report and the Nelson/Nygaard update materials contained in Board of Supervisors File No. 040141.
"TIDF Update Report." The study commissioned by MTA and performed by Cambridge Systematics, Inc. and Urban Economics entitled "Transit Impact Development Fee Update Draft Final Report," dated February, 2011, and contained in Board of Supervisors File No. 120523.
"Total developable site area." That part of the site that can be feasibly developed as residential development, excluding land already substantially developed, parks, required open spaces, streets, alleys, walkways or other public infrastructure.
"Treasurer." The Treasurer for the City and County of San Francisco.
"Trip generation rate." The total number of automobile and Municipal Railway trips generated for each 1,000 square feet of development in a particular economic activity category as established in the TIDF Study, the 2011 TIDF update report, or pursuant to the five-year review process established in Section 410 of this Article.
V
"Visitacion Valley." The area bounded by Carter Street and McLaren Park to the west, Mansell Street to the north, Route 101 between Mansell Street and Bayshore Boulevard to the northeast, Bayview Park to the north, Candlestick Park and Candlestick Point Recreation Area to the east, the San Francisco Bay to the southeast, and the San Francisco County line to the south.
"Visitor services." An economic activity category under the TIDF that includes, but is not limited to, Hotel use; Motel use, as defined in Section 102 of this Code; and time-share projects, as defined in Section 11003.5(a) of the California Business and Professions Code.
W
"Waiver Agreement." An agreement acceptable in form and substance to the City Attorney and the Planning Department under which the City agrees to waive all or a portion of the Community Improvements Impact Fee.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 321-10, File No. 101095, App. 12/21/2010; Ord. 3-11, File No. 101247, App. 1/7/2011; Ord. 25-11, File No. 101464, App. 2/24/2011; Ord. 196-11
, File No. 110786, App. 10/4/2011, Eff. 11/3/2011; Ord. 188-12
, File No. 111374, App. 9/11/2012, Eff. 10/11/2012; Ord. 247-12
, File No. 120523, App. 12/18/2012, Eff. 1/17/2013; Ord. 42-13
, File No. 130002, App. 3/28/2013, Eff. 4/27/2013; Ord. 62-13
, File No. 121162, App. 4/10/2013, Eff. 5/10/2013; Motion M13-097, File No. 130647, Ad. 7/23/2013, Eff. 8/22/2013; Ord. 22-15, File No. 141253, App. 2/20/2015, Eff. 3/22/2015; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 52-15
, File No. 141266, App. 4/30/2015, Eff. 5/30/2015; Ord. 164-15
, File No. 150348, App. 9/23/2015, Eff. 10/23/2015, Retro. 5/20/2015; Ord. 188-15
, File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 200-15
, File No. 150790, App. 11/25/2015, Eff. 12/25/2015; Ord. 222-15
, File No. 155521, App. 12/18/2015, Eff. 1/17/2016; Ord. 2-16
, File No. 150793, App. 1/19/2016, Eff. 2/18/2016; Ord. 83-17, File No. 170003, App. 3/24/2017, Eff. 4/23/2017; Ord. 202-18, File No. 180557, App. 8/10/2018, Eff. 9/10/2018; Ord. 296-18, File No. 180184, App. 12/12/2019, Eff. 1/12/2019; Ord. 7-19, File No. 180917, App. 1/25/2019, Eff. 2/25/2019; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020; Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021; Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023; Ord. 258-24, File No. 240802, App. 11/14/2024, Eff. 12/15/2024; Ord. 124-25, File No. 250542, App. 8/1/2025, Eff. 9/1/2025; Ord. 188-25, File No. 250680, App. 10/6/2025, Eff. 11/6/2025)
AMENDMENT HISTORY
Definition amended; Ord. 196-11
, Eff. 11/3/2011. Definition amended; definitions deleted; Ord. 188-12
, Eff. 10/11/2012. Definitions added, amended, and deleted; Ord. 247-12
, Eff. 1/17/2013. Definition amended; Ord. 42-13
, Eff. 4/27/2013. Definitions amended; Ord. 62-13
, Eff. 5/10/2013. Definition added; Motion M13-097, Eff. 8/22/2013. Definitions amended; Ord. 22-15, Eff. 3/22/2015. See individual definitions for subsequent history notes.
Editor's Note:
Ordinance 155-15 (File No. 150348, App. 8/6/2015, Eff. 9/5/2015) purported to amend this section. At the direction of the Office of the City Attorney, Ord. 155-15 was never codified (and accordingly is not referenced in the history notes above). Its provisions effectively were superseded by Ord. 164-15 (File No. 150348, App. 9/23/2015, Eff. 10/23/2015, Retro. 5/20/2015).
Ordinance 155-15 (File No. 150348, App. 8/6/2015, Eff. 9/5/2015) purported to amend this section. At the direction of the Office of the City Attorney, Ord. 155-15 was never codified (and accordingly is not referenced in the history notes above). Its provisions effectively were superseded by Ord. 164-15 (File No. 150348, App. 9/23/2015, Eff. 10/23/2015, Retro. 5/20/2015).
SEC. 411.1. FINDINGS.
(a) In 1981, the City enacted an ordinance imposing a Transit Impact Development Fee on new office development in the Downtown area of San Francisco. The TIDF was based on studies showing that the development of new office uses places a burden on the Municipal Railway, especially in the downtown area of San Francisco during commute hours, known as "peak periods." The TIDF was based on two cost analyses: one by the Finance Bureau of the City's former Public Utilities Commission, performed in 1981, and one by the accounting firm of Touche-Ross, performed in March 1983 to defend a legal challenge to the TIDF.
(b) In 2000, the Planning Department, with assistance from the Municipal Transportation Agency, commissioned a study of the TIDF. In 2001, the Department selected Nelson/Nygaard Associates, a nationally recognized transportation consulting firm, to perform the study. Later in 2001, Nelson/Nygaard issued its final report ("TIDF Study"). Before issuing the TIDF Study, Nelson/Nygaard prepared several Technical Memoranda, which provided detailed analyses of the methodology and assumptions used in the TIDF Study.
(c) The TIDF Study concluded that new non-residential uses in San Francisco will generate demand for a substantial number of auto and transit trips by the year 2020. The TIDF Study confirmed that while new office construction will have a substantial impact on MUNI services, new development in a number of other land uses will also require MUNI to increase the number of revenue service hours. The TIDF Study recommended that the TIDF be extended to apply to most non-residential land uses. The TIDF Study found that certain types of new development generate very few daily trips and therefore may not appropriately be charged a new TIDF.
(d) The TIDF Study further recommended that the City enact an ordinance to impose transit impact fees that would allow MUNI to maintain its base service standard as new development occurs throughout the City. The proposed ordinance would require sponsors of new development in the City to pay a fee that is reasonably related to the financial burden imposed on MUNI by the new development. This financial burden is measured by the cost that will be incurred by MUNI to provide increased service to maintain the applicable base service standard over the life of such new development.
(e) Subsequently, the City selected Cambridge Systematics, Inc. to prepare a TIDF Update Report, including an updated nexus study for the TIDF. This Report was completed in 2011, and in accordance with the applicable provisions of this Code, used updated data to calculate base service standard fee rates for the Economic Activity Categories subject to the TIDF. The Report also analyzed trip generation rates for these Economic Activity Categories using updated data, and divided the Retail/Entertainment and Cultural/Institution/Education categories into subcategories in order to reflect the comparative diversity of trip generation rates among these land uses.
(f) Based on projected new development over the next 20 years, the TIDF will provide revenue to MUNI that is significantly below the costs that MUNI will incur to mitigate the transit impacts resulting from the new development.
(g) The TIDF is the most practical and equitable method of meeting a portion of the demand for additional Municipal Railway service and capital improvements for the City caused by new non-residential development.
(h) Based on the above findings and the nexus studies performed, the City determines that the TIDF satisfies the requirements of the Mitigation Fee Act, California Government Code Section 66001, as follows:
(1) The purpose of the fee is to meet a portion of the demand for additional Municipal Railway service and capital improvements for the City caused by new nonresidential development.
(2) Funds from collection of the TIDF will be used to increase revenue service hours reasonably necessary to mitigate the impacts of new non-residential development on public transit and maintain the applicable base service standard.
(3) There is a reasonable relationship between the proposed uses of the TIDF and the impact on transit of the new developments on which the TIDF will be imposed.
(4) There is a reasonable relationship between the types of new development on which the TIDF will be imposed and the need to fund public transit for the uses specified in Section 411.6 of this Code.
(5) There is a reasonable relationship between the amount of the TIDF to be imposed on new developments and the impact on public transit from the new developments.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 247-12
, File No. 120523, App. 12/18/2012, Eff. 1/17/2013)
AMENDMENT HISTORY
New division (e) added and former divisions (e) through (g) redesignated as current divisions (f) through (h) accordingly; division (h)(4) amended; Ord. 247-12
, Eff. 1/17/2013.
SEC. 411.2. DEFINITIONS.
(a) "Final TIDF Determination." The written notice sent by the MTA to a project sponsor in cases where the MTA is responsible for calculation of the TIDF under Section 411.9 of this Article informing the project sponsor of MTA's final calculation of the TIDF.
(b) "New development." Any new construction, or addition to or conversion of an existing structure under one or more building or site permits (1) issued on or after September 4, 2004 but on or before January 31, 2013 that cumulatively results in 3,000 gross square feet or more of a use covered by the TIDF or (2) issued on or after February 1, 2013 that cumulatively result in 800 gross square feet or more of a use covered by the TIDF. In the case of mixed use development that includes residential development, the term "new development" shall refer to only the non-residential portion of such development. For purposes of this definition. "existing structure" shall include a structure for which a sponsor already paid a fee under the prior TIDF ordinance, as well as a structure for which no TIDF was paid.
(c) "Preliminary TIDF Notice." The written notice sent by the MTA to a project sponsor in cases where the MTA is responsible for imposition and collection of the TIDF under Section 411.9 of this Article informing the project sponsor of MTA's initial calculation of the TIDF due and requesting that the project sponsor provide MTA with information about the new development, including but not limited to, the gross square feet of use of the new development.
(d) For additional definitions, see Section 401 of this Article.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 247-12
, File No. 120523, App. 12/18/2012, Eff. 1/17/2013)
AMENDMENT HISTORY
SEC. 411.3. APPLICATION OF TIDF.
(a) Application. Except as provided in Subsections (1) and (2) below, the TIDF shall be payable with respect to any new development in the City for which a building or site permit is issued on or after September 4, 2004. In reviewing whether a development project is subject to the TIDF, the project shall be considered in its entirety. A sponsor shall not seek multiple applications for building permits to evade paying the TIDF for a single development project.
(1) The TIDF shall not be payable on new development, or any portion thereof, for which a TIDF has been paid, in full or in part, under the prior TIDF Ordinance (former Chapter 38 of the Administrative Code as amended through June 30, 2010), except where
(A) Gross Square Feet of use is being added to the building; or
(B) the TIDF rate for the new development is in an economic activity category with a higher fee rate than the current rate for the economic activity category under which the TIDF was originally paid, as set forth in Section 411.3(e).
(2) No TIDF shall be payable on the following types of new development.
(A) New development on property owned (including beneficially owned) by the City, except for that portion of the new development that may be developed by a private sponsor and not intended to be occupied by the City or other agency or entity exempted under Section 411.1 et seq., in which case the TIDF shall apply only to such non-exempted portion. New development on property owned by a private person or entity and leased to the City shall be subject to the fee, unless the City is the beneficial owner of such new development or unless such new development is otherwise exempted under this Section. Nothing in this Section shall interfere with the exclusive jurisdiction of the City's charitable trust departments under Article V of the Charter or impose the TIDF on new development by private nonprofit supporting organizations, beneficiaries, tenants, or licensees of said departments, on property under the exclusive jurisdiction of said departments. The exception established under Subsection 411.3(a)(2)(A) for new development on property beneficially owned by the City shall only be applicable where a project sponsor for a new development has filed an application for environmental evaluation, a categorical exemption or a preliminary project assessment on or before the effective date of Ordinance No. 18-14 or, for new development subject to a redevelopment plan, development agreement, interagency cooperation agreement, or other agreement entered into by the City, the project sponsor submits proof that the sponsor has submitted to the Successor Agency to the Redevelopment Agency of the City and County of San Francisco documentation comparable to that required for an application for environmental evaluation, a categorical exemption or a preliminary project assessment for the project on or before the effective date of Ordinance No. 18-14.
(B) Any new development to the extent application of this Section 411.3 to that development would violate the terms of a redevelopment plan, development agreement, interagency cooperation agreement, or other agreement entered into by the City that is valid and effective on the date that TIDF payments are due under Section 411.3(b). If any such redevelopment plan, development agreement, interagency cooperation agreement or other agreement permits some, but not all, of the TIDF to apply to a development, then the TIDF shall apply to the extent permitted.
(C) New development located on property owned by the United States or any of its agencies to be used exclusively for governmental purposes.
(D) New development located on property owned by the State of California or any of its agencies to be used exclusively for governmental purposes.
(E) New development for which a project sponsor filed an application for environmental evaluation or a categorical exemption prior to April 1, 2004, and for which the City issued a building permit or site permit on or before September 4, 2008; provided however, that such new development may be subject to the TIDF imposed by Ordinance No. 224-81, as amended through June 30, 2004, except that the administration, imposition, review and collection of any such fee shall be conducted in accordance with the administrative procedures set forth in Section 411.9. DBI and MTA shall make the text of Ordinance No. 224-81, as amended through June 30, 2004, available on their websites and shall provide copies of that ordinance upon request.
(F) The following types of new developments, except to the extent that any such new development is also captured under a more specific use under this Code that is not otherwise exempt:
(i) Public Facility, Internet Service Exchange and Utility Installation uses, as defined in Section 102 of this Code, except that this exclusion shall not apply to new development on property owned by a private person or entity and leased to the City;
(ii) Agricultural and Non-Commercial Entertainment and Recreation uses, as defined in Section 102 of this Code;
(iii) Private and Public Auto Parking Garages and Lots, as defined in Section 102 of this Code;
(iv) Automotive services, which includes Public and Private Parking Lots, Public and Private Parking Garages, Parcel Delivery Services, Ambulance Services, Vehicle Storage Lots and Garages, and Truck Terminals as defined in Section 102 of this Code, that are in a new development, where the project sponsor has met the deadline established in Section 411.3(a)(3);
(vi) Mortuary, Public Facility, Utility Installation, Public Transport Facility, Wireless Telecommunications Services Facility, Temporary Uses, Waterborne Commerce, and Internet Service Exchange Uses as defined in Section 102 of this Code, as well as Any use that is permitted as a principal use in any other C, M, or PDR District without limitation as to enclosure within a building, wall or fence.
(3) The exclusions from TIDF set forth in Section 411.3(a)(2)(F)(iv) and (v) (Automotive Services and Wholesale Storage) shall only apply where a project sponsor for a new development has filed an application for environmental evaluation, a categorical exemption or a preliminary project assessment for the project on or before the effective date of Ordinance No. 18-14, or, for new development subject to a redevelopment plan, development agreement, interagency cooperation agreement, or other agreement entered into by the City, the project sponsor submits proof that the sponsor has submitted to the Successor Agency to the former Redevelopment Agency of the City and County of San Francisco documentation comparable to that required for an application for environmental evaluation, a categorical exemption or a preliminary project assessment for the project, on or before the effective date of Ordinance No. 18-14.
(b) Timing of Payment. The TIDF shall be paid at the time of and in no event later than issuance of the first construction document, with an option for the project sponsor to defer payment until prior to issuance of the first certificate of occupancy upon agreeing to pay a deferral surcharge in accordance with Section 107A.13 of the San Francisco Building Code. Under no circumstances may any City official or agency, including the Port of San Francisco, issue a certificate of final completion and occupancy for any new development subject to the TIDF until the TIDF has been paid.
(c) Calculation of TIDF.
(1) The TIDF shall be calculated on the basis of the number of gross square feet of new development, multiplied by the square foot rate in effect at the time of issuance of the first construction document for each of the applicable economic activity categories within the new development, as provided in Subsection 411.3(e) below. An accessory use shall be charged at the same rate as the underlying use to which it is accessory, except that where any underlying use other than Residential is exempt from the TIDF under this Section, the fee shall nonetheless be charged for the accessory use unless such accessory use is otherwise exempt. Whenever any new development or series of new developments cumulatively creates more than 3,000 gross square feet of covered use within a structure, in the case of a building or site permit issued on or before January 31, 2013, or more than 800 gross square feet of covered use within a structure, in the case of a building or site permit issued on or after February 1, 2013, the TIDF shall be imposed on every square foot of such covered use (including any portion that was part of prior new development below the applicable square foot threshold).
(2) When calculating the TIDF for a development project in which there is a change of use such that the rate charged for the new economic activity category is higher than the rate charged for the existing economic activity category, the TIDF per square foot rate for the change of use shall be the difference between the rate charged for the new use and the existing use.
(3) Where a new development is subject to a redevelopment plan, development agreement, interagency cooperation agreement, or other agreement entered into by the City, and under the terms of that plan or agreement, calculation of the TIDF for the development would be different from the calculation under subparagraph (2) above, the TIDF shall be calculated in accordance with the requirements of the applicable plan or agreement.
(d) Credits. When determining the number of gross square feet of use to which the TIDF applies, the Department shall provide the following credits:
(1) Prior Use Credits. There shall be a credit for prior uses eliminated on the site. The credit shall be calculated according to the following formula:
(A) There shall be a credit for the number of gross square feet of use being eliminated by the new development, multiplied by an adjustment factor to reflect the difference in the fee rate of the use being added and the use being eliminated. The adjustment factor shall be determined by the Department as follows:
(i) The adjustment factor shall be a fraction, the numerator of which shall be the fee rate which the Department shall determine, in consultation with the MTA, if necessary, applies to the economic activity category in the most recent calculation of the TIDF Schedule approved by the Board or Supervisors for the prior use being eliminated by the project.
(ii) The denominator of the fraction shall be the fee rate for the use being added, as set forth in the most recent calculation of the TIDF Schedule approved by the Board of Supervisors.
(B) A credit for a prior use may be given only if the prior use was active on the site within five years before the date of the application for a building or site permit for the proposed use.
(C) As of September 4, 2004, no sponsor shall be entitled to a refund of the TIDF on a building for which the fee was paid under the former Chapter 38 of the San Francisco Administrative Code.
(D) Notwithstanding the foregoing, the adjustment factor shall not exceed one.
(2) Policy Credits. Development projects that meet the criteria outlined in Subsection 411.3(d)(2)(B) may receive Policy Credits, subject to the following limitations:
(A) Limit on Available Policy Credits. When making a determination under this Article for the amount of TIDF owed, the Department shall allocate available Policy Credits, described in Section 411.3(d)(2)(B), as follows:
(i) No development project shall receive a Policy Credit under Section 411.3(d)(2)(B) if the total amount of credits received by development projects under that section would exceed 3% of the total anticipated TIDF revenue for the current Fiscal Year. To the extent Policy Credits allowed in any Fiscal Year are not allocated, the unallocated amount shall be carried over to the next Fiscal Year. The amount to be carried over to the next Fiscal Year shall be calculated based upon 3% of the sum of the actual TIDF revenues collected during the current Fiscal Year and the total amount of policy credits granted during the current Fiscal Year.
(ii) In no event shall the Policy Credits for a single development exceed 100% of the total TIDF that would otherwise be due.
(B) The Planning Department shall maintain and shall make available on the Planning Department's website, a list showing:
(i) All development projects receiving Policy Credits under Section 411.3(d)(2)(C) of this Article, and, if applicable, the date(s) of approval and the issuance of any building or site permit;
(ii) The total amount of Policy Credits received with respect to each listed development project;
(iii) Any Policy Credits allocated to a development project the site permit for which is modified, cancelled, revoked, or has expired;
(iv) Such other information as the Department may determine is appropriate.
(C) Available Policy Credits. The following development projects may receive Policy Credits, subject to the limitations set forth in Section 411.3(d)(2)(A):
(i) Small Businesses. Businesses that either occupy or expand any preexisting non-residential space, provided that: (a) the gross square footage of such non-residential space is not greater than 5,000 square feet, and (b) the business is not formula retail, as defined in this Code. Only the gross square footage dedicated to such business shall be eligible for the Policy Credit.
(ii) Reduced Parking Developments. In zoning districts that set a parking maximum, development projects that provide a lower number, or ratio, of off-street parking than permitted on an as-of-right basis without conditional use authorization in Table 151.1 of this Code. The credit shall be determined by the Department as follows:
Max. Allowed in Planning Code Table 151.1 | 50% of Max. or less | More than 50% but less than 60% of Max. | 60% or more but less than 75% of Max. | 75% or more but less than 90% of Max. | 90% of Max. or more |
TIDF Credit | 90% | 80% | 50% | 20% | 0% |
(D) Process for Allocation of Policy Credits. The Policy Credits described in this Section shall be allocated to qualifying development projects by the Zoning Administrator at the moment their first entitlement is approved by the Planning Commission or the Planning Department. In addition, the following considerations shall apply:
(i) If a development project is modified for any reason after it is first approved, and such modification would result in a potential increase in the amount of Policy Credits allocated to it, the development project shall maintain the credits allocated on the list described in Section 411.3(d)(2)(B). Any additional credit may only be allocated at the time such modification is approved, subject to the limits of Section 411.3(d)(2)(A)(i).
(ii) If a development project is modified for any reason after it is first approved, and such modification would result in a potential decrease in the amount of Policy Credits allocated to it, the remainder Policy Credits shall become available for other qualifying development projects during the approval period on account of such a modification.
(iii) The maximum amount of Policy Credits available for the approval period shall be increased by the amount of Policy Credits allocated to a development project for which an issued site or building permit has been finally cancelled or revoked, or has expired, with the irrevocable effect of preventing construction of the development.
(3) Limitation. In no event shall the combined Policy Credits and Prior Use Credits for a single development exceed 100% of the total TIDF that would otherwise be due.
(e) TIDF Schedule. The TIDF Schedule shall be as follows:
Economic Activity Category or Subcategory | TIDF Per Gross Square Foot of Development |
Economic Activity Category or Subcategory | TIDF Per Gross Square Foot of Development |
Cultural/Institution/Education | |
Day Care/Community Center | $13.30 |
Post-Secondary School | $13.30 |
Museum | $11.05 |
Other Institutional | $13.30 |
Management, Information and Professional Services | $12.64 |
Medical and Health Services | $13.30 |
Production/Distribution/Repair | $6.80 |
Retail/Entertainment | $13.30 |
Visitor Services | $12.64 |
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 55-11, File No. 101523, App. 3/23/2011; Ord. 196-11
, File No. 110786, App. 10/4/2011, Eff. 11/3/2011; Ord. 247-12
, File No. 120523, App. 12/18/2012, Eff. 1/17/2013; Ord. 18-14
, File No. 130938, App. 3/5/2014, Eff. 4/4/2014; Ord. 22-15, File No. 141253, App. 2/20/2015, Eff. 3/22/2015; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 188-15
, File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 166-16
, File No. 160477, App. 8/11/2016, Eff. 9/10/2016)
AMENDMENT HISTORY
Division (a)(2)(F)(vi) amended; Ord. 196-11
, Eff. 11/3/2011. Divisions (a)(1), (a)(2)(A), (a)(2)(E), (a)(2)(F), (a)(2)(F)(i), and (a)(2)(F)(iv)-(vi) amended; division (a)(3) added; former division (c) redesignated as division (c)(1) and amended; division (c)(2) added; division (d) amended; new division (d)(1) added; former division (d)(1) redesignated as division (d)(1)(A) and all subdivisions thereof redesignated accordingly; divisions (d)(1)(A)(i) and (ii) amended; divisions (d)(2) and (d)(3) added; division (e) amended; Ord. 247-12
, Eff. 1/17/2013. Divisions (a)(2)(A), (a)(2)(B), (a)(3), and (c)(1) amended; division (c)(3) added; Ord. 18-14
, Eff. 4/4/2014. Divisions (a)(2)(F)(i)-(vi), (a)(3), (b), and (d)(2)(D)(i) amended; Ord. 22-15, Eff. 3/22/2015. Division (b) amended; Ord. 50-15
, Eff. 5/24/2015. Division (a)(2)(B) amended; other nonsubstantive changes; Ord. 188-15
, Eff. 12/4/2015. Division (a)(2)(F)(vi) amended; Ord. 166-16
, Eff. 9/10/2016.
SEC. 411.4. IMPOSITION OF TIDF.
(a) Determination of Requirements.
(1) Except for projects where the building or site permit was issued prior to July 1, 2010, the Department shall determine the applicability of Section 411.1 et seq. to any development project requiring a first construction document and, if Section 411.1 is applicable, shall impose any TIDF owed as a condition of approval for issuance of the first construction document for the development project. The project sponsor shall supply any information necessary to assist the Department in this determination. The Zoning Administrator may seek the advice and consent of the MTA regarding any interpretations that may affect implementation of this section.
(b) Department Notice to Development Fee Collection Unit at DBI of Requirements. After the Department has made its final determination regarding the application of the TIDF to a development project under Section 411.1 et seq., it shall immediately notify the Development Fee Collection Unit at DBI of any TIDF owed in addition to the other information required by Section 402(b) of this Article.
(c) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Section 411.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) of this Article shall be followed.
AMENDMENT HISTORY
Former division (a) redesignated as division (a)(1) and amended; division (a)(2) added; division (b) amended; Ord. 247-12
, Eff. 1/17/2013.
SEC. 411.5. PRINCIPLES IN CALCULATING FEE.
The following principles have been and shall in the future be observed in calculating the TIDF:
(a) Actual cost information provided to the National Transit Database shall be used in calculating the fee rates. Where estimates must be made, those estimates shall be based on such information as the Director of Transportation or his or her delegate considers reasonable for the purpose.
(b) The rates shall be set at an actuarially sound level to ensure that the proceeds, including such earnings as may be derived from investment of the proceeds and amortization thereof, do not exceed the capital and operating costs incurred to maintain the applicable base service standard in light of the demands created by new development subject to the fee over the estimated useful life of such new development. For purposes of Section 411.1 et seq. of this Code, and any Comprehensive Five Year Evaluation of the TIDF under Section 410, the estimated useful life of a new development is 45 years.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 247-12
, File No. 120523, App. 12/18/2012, Eff. 1/17/2013)
AMENDMENT HISTORY
Section header amended; former division (a) deleted; designation of former division (b) deleted and division retained as undesignated introductory paragraph; former divisions (b)(1) and (b)(2) redesignated as divisions (a) and (b) and amended; Ord. 247-12
, Eff. 1/17/2013.
SEC. 411.6. TIDF FUND.
Money received from collection of the TIDF, including earnings from investments of the TIDF, shall be held in trust by the Treasurer of the City and County of San Francisco under Section 66006 of the Mitigation Fee Act (Cal. Gov. Code § 60000 et seq.) and shall be distributed according to the fiscal and budgetary provisions of the San Francisco Charter and the Mitigation Fee Act, subject to the following conditions and limitations. TIDF funds may be used to increase revenue service hours reasonably necessary to mitigate the impacts of new non-residential development on public transit and maintain the applicable base service standard, including, but not limited to: capital costs associated with establishing new transit routes, expanding transit routes, and increasing service on existing transit routes, including, but not limited to, procurement of related items such as rolling stock, and design and construction of bus shelters, stations, tracks, and overhead wires; operation and maintenance of rolling stock associated with new or expanded transit routes or increases in service on existing routes; capital or operating costs required to add revenue service hours to existing routes; and related overhead costs. Proceeds from the TIDF may also be used for all costs required to administer, enforce, or defend Section 411.1 et seq.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
SEC. 411.7. RULES AND REGULATIONS.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 247-12
, File No. 120523, App. 12/18/2012, Eff. 1/17/2013)
AMENDMENT HISTORY
SEC. 411.8. CHARITABLE EXEMPTIONS.
(a) When the property or a portion thereof will be exempt from real property taxation or possessory interest taxation under California Constitution, Article XIII, Section 4, as implemented by California Revenue and Taxation Code Section 214, then the sponsor shall not be required to pay the TIDF attributed to the new development in the exempt property or portion thereof, so long as the property or portion thereof continues to enjoy the aforementioned exemption from real property taxation. This exemption from the TIDF shall not apply to the extent that the non-profit organization is engaging in activities falling under the Retail/Entertainment or Visitor Services economic activity categories in the new development that would otherwise be subject to the TIDF.
(b) The TIDF shall be calculated for exempt structures in the same manner and at the same time as for all other structures. Prior to issuance of the first construction document for the development project, the sponsor may apply to the Department for an exemption under the standards set forth in subsection (a) above. If the Department determines that the sponsor is entitled to an exemption under this Section, it shall cause to be recorded a notice advising that the TIDF has been calculated and imposed upon the structure and that the structure or a portion thereof has been exempted from payment of the fee but that if the property or portion thereof loses its exempt status during the 10-year period commencing with the date of the imposition of the TIDF, then the building owner shall be subject to the requirement to pay the fee.
(c) If within 10 years from the date of the issuance of the Certificate of Final Completion and Occupancy, the exempt property or portion thereof loses its exempt status, then the sponsor shall, within 90 days thereafter, be obligated to pay the TIDF, reduced by an amount reflecting the duration of the charitable exempt status in relation to the useful life estimate used in determining the TIDF for that structure. The amount remaining to be paid shall be determined by recalculating the fee using a useful life equal to the useful life used in the initial calculation minus the number of years during which the exempt status has been in effect. After the TIDF has been paid, the Department shall record a release of the notice recorded under subsection (b) above.
(d) If a property owner fails to pay a fee within the 90-day period, a notice for request of payment shall be served by the Development Fee Collection Unit at DBI under Section 107A.13 of the San Francisco Building Code. Thereafter, upon nonpayment, a lien proceeding shall be instituted under Section 408 of this Article and Section 107A.13.15 of the San Francisco Building Code.
AMENDMENT HISTORY
SEC. 411.9. IMPOSITION AND COLLECTION OF TIDF DUE UNDER FORMER LAW.
(a) Ordinance No. 224-81 originally enacted the TIDF in 1981, codified in Chapter 38 of the Administrative Code. Chapter 38 was amended several times between 1981 and 2004. In 2004, Ordinance No. 199-04 repealed and replaced the existing Chapter 38, which was subsequently amended, and then repealed in 2010 by Ordinance 108-10, which relocated the TIDF from the Administrative Code to this Code. In determining the applicable TIDF due for a project under this Section 411.9, MTA shall calculate the TIDF based upon the law in effect on the date of issuance of the first building or site permit for the project. Subsequent references to "former Administrative Code Chapter 38" in this section 411.9 shall be intended to refer to that Chapter as it read on the date of issuance of the first building or site permit for the project in question.
(b) MTA shall be responsible for determining the TIDF to the City for new development for which the City issued a building or site permit prior to July 1, 2010. In such cases, MTA shall determine the TIDF as follows:
(1) Where MTA has determined that such new development may be subject to the TIDF, the Director of Transportation or his or her designee may cause the County Recorder to record a notice that the new development is potentially subject to the TIDF under this Article. Such notice shall identify the development project and state that MTA is evaluating whether the project is subject to the TIDF as well as the amount of any potential liability. The notice shall also state that if MTA subsequently determines that a TIDF is due on the project and the amount due is not paid, MTA may impose a lien on the property in accordance with this Article. Where the Director of Transportation or his or her designee has caused this notice to be recorded and subsequently concludes that the project is not subject to the TIDF, the Director of Transportation or his or her designee shall promptly record a notice identifying the project and stating that the agency has determined that the project is not subject to the TIDF.
(2) MTA shall send a Preliminary TIDF Notice to the project sponsor informing the project sponsor of MTA's proposed determination that TIDF is due for the project and requesting that the sponsor file with MTA, on such form as MTA may develop, a report indicating the number of gross square feet of use of the new development and any other information that MTA may require to determine the project sponsor's obligation to pay the TIDF.
(3) The Preliminary TIDF Notice shall:
(A) identify the development project;
(B) state the legal authority for imposing the TIDF;
(C) specify the preliminary amount of the fee that MTA calculates the sponsor owes based on the information available to the agency, which amount MTA shall calculate on the basis of the number of gross square feet of new development, multiplied by the square foot rate in effect at the time of building or site permit issuance for each of the applicable economic categories within the new development under former Administrative Code Chapter 38, and taking into account any exceptions or credits provided therein; and
(D) list the name and contact information for the staff person at MTA responsible for calculating the TIDF.
(4) When calculating the TIDF for a development project in which there is a change of use such that the rate charged for the new economic activity category is higher than the rate charged for the existing economic activity category, the TIDF per square foot rate for the change of use shall be the difference between the rate charged for the new use and the existing use.
(5) The project sponsor shall submit the report of gross square feet of use to MTA not later than 15 calendar days from the date of mailing of the Preliminary TIDF Notice.
(6) After receiving the report of gross square feet of use, or if no response is received from the project sponsor within 15 calendar days from the date of mailing of the Preliminary TIDF Notice, MTA shall prepare a Final TIDF Determination for the project by determining the fee under Subsection 411.9(b)(3)(C), taking into account any additional information received from the project sponsor since the Preliminary TIDF Notice. The Final TIDF Determination shall also contain the information required by Subsection 411.9(b)(3)(A), (B) and (D) and inform the project sponsor of the sponsor's right to seek review of the determination in accordance with either Section 411.9(c) or (d).
(7) MTA shall cause the Final TIDF Determination to be addressed to the project sponsor and deposited in the U.S. Mail on the date of issuance of that Report. In addition, MTA shall transmit the Final TIDF Determination to DBI in the case of projects subject to Section 411.9(c).
(c) Where the City issued a building or site permit prior to July 1, 2010 and the City has not issued the First Certificate of Occupancy for that development, DBI shall be responsible for collection of the fee due consistent with the otherwise applicable requirements set forth in this Article and the San Francisco Building Code. For purposes of this paragraph, the Final TIDF Determination shall be treated as a Project Development Fee Report.
(d) Notwithstanding any provisions to the contrary in the San Francisco Building Code, where the TIDF may be owed to the City for new development for which the City issued a building or site permit prior to July 1, 2010, and the City issued the First Certificate of Occupancy for the new development on or before the effective date of this Section 411.9, MTA shall be responsible for the collection of the fee due in accordance with the procedures set forth in this Subsection 411.9(d).
(1) Recording of Fee. Once MTA has prepared the Final TIDF Determination, the Director of Transportation or his or her designee may cause the County Recorder to record a notice that the development is subject to the TIDF. The County Recorder shall serve or mail a copy of such notice to the project sponsor and the owners of the real property described in the notice. The notice shall include (i) a description of the real property subject to the fee; (ii) a statement that the development is subject to the fee; and (iii) a statement that the MTA has determined the amount of the fee to which the project is subject under this Section and related provisions of this Article. Where the Director of Transportation or his or her designee has caused this notice to be recorded and the Final TIDF Determination is either paid or subsequently revised or reversed following review under paragraphs 411.9
(d)(2) or (3) of this Section, the Director of Transportation or his or her designee shall promptly cause the County Recorder to record a notice stating that either (i) the agency has revised the amount of TIDF due; (ii) the agency has determined that the project is not subject to the TIDF; or (iii) that the fee has been paid. The County Recorder shall also serve or mail a copy of such notice to the project sponsor and the owners of the real property described in the notice.
(2) Dispute Resolution. If the project sponsor disputes the accuracy of the Final TIDF Determination, including the mathematical calculation of the number of gross square feet subject to the fee, the project sponsor may request a review of the Final TIDF Determination by the Director of Transportation. The project sponsor shall submit any request for review not later than 15 calendar days after the date of issuance of the Final TIDF Determination. The Director of Transportation shall attempt to resolve the dispute in consultation with the project sponsor, and may request additional information from either MTA staff or the project sponsor. The Director of Transportation shall issue his or her decision in writing to the project sponsor not later than 30 calendar days from receipt of the review request, unless the project sponsor and the Director of Transportation mutually agree to extend this period. The Director of Transportation shall cause the decision to be placed in the U.S. Mail on the date of issuance.
(3) Appeal to MTA Board of Directors.
(A) The project sponsor may appeal the decision of the Director of Transportation on the Final TIDF Determination to the MTA Board of Directors by submitting a written notice of appeal, accompanied by payment of the full amount of the contested fee, to the Secretary of the MTA Board not later than 15 calendar days after the date of issuance of the Director of Transportation's decision. Any portion of the fee that is not upheld upon appeal to the MTA Board of Directors shall be refunded as set forth in subparagraph (D) below.
(B) In order to appeal to the MTA Board of Directors under this Section, a project sponsor appellant must first have attempted to resolve the dispute or question by following the procedure in Section 411.9
(d)(2). The MTA Board Secretary may not accept an appeal for filing under this subsection unless the appellant submits written evidence of this prior attempt.
(C) In hearing any appeal of the Final TIDF Determination, the MTA Board's jurisdiction is strictly limited to determining whether the mathematical calculation of the TIDF is accurate and resolving any technical disputes over the use, occupancy, floor area, unit count and mix, or other objective criteria upon which the applicable provisions of law dictated the calculation.
(D) The MTA Board shall schedule the appeal for hearing within 90 calendar days of the date of submission of the appeal, and shall issue a decision within 60 days of hearing the appeal. Within five business days of the MTA Board's decision, the MTA Board Secretary shall cause the decision of the MTA Board to be placed in the U.S. Mail addressed to the appellant. The decision shall be accompanied by any refund of the TIDF paid due to appellant following the MTA Board's decision. Any amount refunded shall bear interest at the rate of 2/3 of 1 percent per month or fraction thereof, or the average rate of interest computed over the preceding 6-month period obtained by the San Francisco Treasurer on deposits of public funds at the time the refund is made, whichever rate is lower, and shall be computed from the date of payment of the fee to the date of refund plus interest.
(4) Payment and Collection.
(A) Payment of TIDF. The TIDF shall be due and payable to the MTA not later than 30 days after the date of mailing of the Final TIDF Determination unless the project sponsor has timely requested review by the Director of Transportation under Section 411.9
(d)(2) or initiated an appeal to the MTA Board of Directors under Section 411.9
(d)(3), in which case any TIDF shall be due and payable to MTA on the earlier of 30 days after the date of the Director of Transportation's decision under Section 411.9
(d)(2) or at the time of submission of the written notice of appeal to the MTA Board of Directors under Section 411.9
(d)(3)(A) above.
(B) Payment of the TIDF imposed under this section is delinquent if (i) in the case of a fee not payable in installments, the fee is not paid by the dates set forth in the preceding paragraph; or (ii) in the case of a fee for Integrated PDR subject to Section 428A of this Code, any installment of the fee is not paid within 30 days of the date fixed for payment. In such case, MTA shall mail an additional request for payment to the project sponsor stating that:
(i) If the amount due is not paid within 30 days of the date of mailing of the additional request and notice, interest at the rate of one and one-half percent per month or portion thereof shall be assessed upon the fee due and shall be computed from the date of delinquency until the date of payment; and
(ii) If the account is not current within 30 days of the date of mailing of the additional request and notice, MTA shall institute lien proceedings in accordance with Section 408(b).
[TRANSPORTATION SUSTAINABILITY FEE]
SEC. 411A.1. FINDINGS.
(a) In 1981, San Francisco ("the City") enacted Ordinance No. 224-81, imposing a Transit Impact Development Fee ("TIDF") on new office development in the downtown area. The TIDF was based on studies showing that the development of new office uses places a burden on the City's transit system, especially in the downtown area of San Francisco during commute hours, known as "peak periods."
(b) The City later amended the TIDF, and made it applicable to non-residential Development Projects citywide, recognizing that development has transportation impacts across the City's transportation network.
(c) Starting in 2009, the City and the San Francisco County Transportation Authority worked to develop the concept of a comprehensive citywide transportation fee and supporting nexus study (the "TSF Nexus Study"). The fee would offset impacts of Development Projects, both residential and non-residential, on the City's transportation network, including impacts on transportation infrastructure that support pedestrian and bicycle travel. The Nexus Study is on file with the Clerk of the Board of Supervisors in File No. 150790, and is incorporated herein by reference.
(d) The TSF Nexus Study concluded that all new land uses in San Francisco will generate an increased demand for transportation infrastructure and services, and recommended that the TSF apply to both residential and non-residential Development Projects in the City. While the Nexus Study found that all new land uses in San Francisco will generate this increased demand for transportation, the Board finds that it is in the public interest to exempt some uses from payment of the fee, in order to promote other important City policies and priorities, such as affordable housing, small businesses and charitable organizations. The Board finds that Hospital and Health Service projects, however, are generally of such scope and size that they create a substantial demand for transportation infrastructure and services, and therefore, they should contribute to the TSF to meet this demand.
(e) In accordance with the TSF Nexus Study, Section 411A imposes a citywide transportation fee, the TSF, which will allow the San Francisco Municipal Transportation Agency ("SFMTA") and other regional transportation agencies serving San Francisco to meet the demand generated by new development and thus maintain their existing level of service. Section 411A will require sponsors of Development Projects in the City to pay a fee that is reasonably related to the financial burden such projects impose on the City. This financial burden is measured by the cost that will be incurred by SFMTA and other transportation agencies serving San Francisco to meet the demand for transit capital maintenance, transit capital facilities and fleet, and pedestrian and bicycle infrastructure (also referred to as "complete streets" infrastructure) created by new development throughout the City.
(f) The TSF Nexus Study justifies charging fee rates higher than those Section 411A imposes. The rates imposed herein take into consideration the recommendations of a TSF Economic Feasibility Study that the City prepared in conjunction with TSF. The TSF Economic Feasibility Study took into account the impact of the TSF on the feasibility of development, throughout the City. The TSF Economic Feasibility Study is on file with the Clerk of the Board of Supervisors in File No. 150790,1
and is incorporated herein by reference.
(g) The fee rates charged herein are no higher than necessary to cover the reasonable costs of providing transportation infrastructure and service to the population associated with the new Development Projects, such as residents, visitors, employees and customers. The TSF will provide revenue that is significantly below the costs that SFMTA and other transit providers will incur to mitigate the transportation infrastructure and service needs resulting from the Development Projects.
(h) The TSF is an efficient and equitable method of providing funds to mitigate the transportation demands imposed on the City by new Development Projects.
(i) More recently, the City adopted the San Francisco Citywide Nexus Analysis (“Nexus Analysis”) and the San Francisco Infrastructure Level of Service Analysis, both on file with the Clerk of the Board in File No. 230764. The Nexus Analysis evaluated the TSF, in addition to other transportation impact fees. In Section 401A, the Board adopted the findings and conclusions of those studies and the general and specific findings in that Section, specifically including the Transit Infrastructure Findings, and incorporates those by reference herein to support the imposition of the fees under this Section.
AMENDMENT HISTORY
Former divisions (i)-(i)(5) deleted; new division (i) added; Ord. 193-23, Eff. 10/16/2023.
CODIFICATION NOTE
SEC. 411A.2. DEFINITIONS.
SEC. 411A.3. APPLICATION OF TSF.
(a) Except as provided in Subsection (b), the TSF shall apply to any Development Project in the City that results in:
(1) More than twenty new dwelling units;
(2) New group housing facilities, or additions of 800 gross square feet or more to an existing group housing facility;
(3) New construction of a Non-Residential use in excess of 800 gross square feet, or additions of 800 gross square feet or more to an existing Non-Residential use; or
(4) New construction of a PDR use in excess of 1,500 gross square feet, or additions of 1,500 gross square feet or more to an existing PDR use; or
(5) Change or Replacement of Use, such that the rate charged for the new use is higher than the rate charged for the existing use, regardless of whether the existing use previously paid the TSF or TIDF.
(6) Change or Replacement of Use from a Hospital or a Health Service to any other use.
(b) Exemptions. Notwithstanding Subsection (a), the TSF shall not apply to the following:
(1) City Projects. Development Projects on property owned by the City, except for that portion of a Development Project that may be developed by a private sponsor and not intended to be occupied by the City or other agency or entity exempted under Section 411A, in which case the TSF shall apply only to such non-exempted portion. Development Projects on property owned by a private person or entity and leased to the City shall be subject to the fee, unless such Development Project is otherwise exempted under Section 411A.
(2) Redevelopment Projects and Projects with Development Agreements. Development Projects in a Redevelopment Plan Area or in an area covered by a Development Agreement in existence at the time a building or site permit is issued for the Development Project, to the extent payment of the TSF would be inconsistent with such Redevelopment Plan or Development Agreement.
(3) Projects of the United States. Development Projects located on property owned by the United States or any of its agencies to be used exclusively for governmental purposes.
(4) Projects of the State of California. Development Projects located on property owned by the State of California or any of its agencies to be used exclusively for governmental purposes.
(6) Small Businesses. Each Change of Use from PDR to Non-Residential, or expansion of an existing PDR or Non-Residential use through an addition that adds new gross floor area to an existing building, shall be exempt from the TSF, provided that: (A) the gross square footage of the resulting individual unit of PDR or Non-Residential use is not greater than 5,000 gross square feet, and (B) the resulting use is not a Formula Retail use, as defined in Section 303.1 of this Code. This exemption shall not apply to new construction or Replacement of Use.
(7) Charitable Exemptions.
(A) The TSF shall not apply to any portion of a project located on a property or portion of a property that will be exempt from real property taxation or possessory interest taxation under California Constitution, Article XIII, Section 4, as implemented by California Revenue and Taxation Code Section 214. However, any Hospital or Health Service that requires an Institutional Master Plan under Section 304.5 of the Planning Code shall not be eligible for this charitable exemption, and shall as of the effective date of this Ordinance* be subject to the TSF, as set forth in Section 411A.4 and 411A.5, below.
(B) Any project receiving a Charitable Exemption shall maintain its tax exempt status, as applicable, for at least 10 years after the issuance of its Certificate of Final Completion. If the property or portion thereof loses its tax exempt status within the 10-year period, then the property owner shall be required to pay the TSF that was previously exempted. Such payment shall be required within 90 days of the property losing its tax exempt status.
(C) If a property owner fails to pay the TSF within the 90-day period, a notice for request of payment shall be served by the Development Fee Collection Unit at DBI under Section 107A.13 of the San Francisco Building Code. Thereafter, upon nonpayment, a lien proceeding shall be instituted under Section 408 of this Article and Section 107A.13.15 of the San Francisco Building Code.
(D) The Zoning Administrator shall approve and order the recordation of a Notice in the Official Records of the Recorder of the City and County of San Francisco for the subject property prior to the issuance of a building or site permit. This Notice shall state the amount of the TSF exempted per this subsection (b)(7). It shall also state the requirements and provisions of subsections (b)(7)(B) and (b)(7)(C) above.
(c) Timing of Payment. The TSF shall be paid consistent with the timing set forth in Section 107A.13.3 of the San Francisco Building Code.
(2) Projects that have filed a Development Application or environmental review application on or before July 21, 2015, and have not received approval of any such application, shall be subject to the TSF as follows, except as described in subsection (3) below:
(A) Residential Uses subject to the TSF shall pay 50% of the applicable residential TSF rate, as well as any other applicable fees.
(3) Projects that have not filed a Development Application or environmental review application before July 22, 2015, and file the first such application on or after July 22, 2015, and have not received approval of any such application, as well as projects within the Central SoMa Special Use District that have a Central SoMa Fee Tier of A, B, or C, as defined in Section 423.2, regardless of the date filed of any Development Application, shall be subject to the TSF as follows:
(A) Residential Uses subject to the TSF shall pay 100% of the applicable residential TSF rate, as well as any other applicable fees.
(B) The Non-residential or PDR portion of any project shall pay 100% of the applicable Non-residential or PDR TSF rate, as well as any other applicable fees.
(e) Effect of TSF on TIDF and Development Subject to TIDF.
(A) Section 411 et seq. shall remain operative and effective with respect to any Redevelopment Plan, Development Agreement, Interagency Cooperation Agreement, or any other agreement entered into by the City, the former Redevelopment Agency or the Successor Agency to the Redevelopment Agency, that is valid and effective on the effective date of Section 411A, and that by its terms would preclude the application of Section 411A, and instead allow for the application of Section 411 et seq.
(2) Notwithstanding subsection (e)(1) above, if the City Attorney certifies in writing to the Clerk of the Board of Supervisors that a court has determined that the provisions of Section 411A are invalid or unenforceable in whole or substantial part, the provisions of Section 411 shall no longer be suspended and shall become operative as of the effective date of the court ruling. In that event, the City Attorney shall cause to be printed appropriate notations in the Planning Code indicating that the provisions of Section 411A are suspended, and the provisions of Section 411 are no longer suspended.
(3) The City Attorney's certification referenced in subsection (e)(2) above shall be superseded if the City Attorney thereafter certifies in writing to the Clerk of the Board of Supervisors that the provisions of Section 411A are valid and enforceable in whole or in substantial part because the court decision referenced in subsection (e)(2) has been reversed, overturned, invalidated, or otherwise rendered inoperative with respect to Section 411A. In that event, the provisions of Section 411A shall no longer be suspended and shall become operative as of the date the court decision no longer governs, and the provisions of Section 411 shall be suspended except as specified in Section 411A. Further, the City Attorney shall cause to be printed appropriate notations in the Planning Code indicating the same.
AMENDMENT HISTORY
SEC. 411A.4. CALCULATION OF TSF.
(See Interpretations related to this Section.)
(a) Calculation. The TSF shall be calculated on the basis of the amount of new gross square feet created by the Development Project, multiplied by the TSF rate in effect at the issuance of the First Construction Document for each of the applicable land use categories within the Development Project, as provided in the Fee Schedule set forth in Section 411A.5, except as provided in subsections (b)-(e), below. An accessory use shall be charged at the same rate as the underlying use to which it is accessory. In reviewing whether a Development Project is subject to the TSF, the project shall be considered in its entirety. A project sponsor shall not seek multiple applications for building permits to evade paying the TSF for a single Development Project.
(b) Change or Replacement of Use. When calculating the TSF for a development project in which there is a Change or Replacement of Use such that the rate charged for the new land use category is higher than the rate charged for the category of the existing legal land use, the TSF per square foot rate shall be the difference between the rate charged for the new and the existing use.
(c) Calculation Method for Residential Uses. Areas of Residential use within a project that creates no more than 99 dwelling units shall pay the fee listed in Table 411A.5. When a project creates more than 99 dwelling units, the fees for areas of Residential use shall be calculated as follows: The number of dwelling units greater than 99 shall be divided by the total number of dwelling units created to determine the proportion of the project represented by those dwelling units. The resulting quotient shall be multiplied by the total gross floor area of Residential use in the project. The resulting product represents the number of gross square feet of Residential use in the project that is subject to the higher fee rate in Table 411A.5 for dwelling units above 99. The remainder of gross square feet of Residential use in the project is subject to the lower fee rate in Table 411A.5 for dwelling units at or below 99.
(d) Calculation Method for Hospitals. For any project creating a new Hospital use, or expanding an existing Hospital use, as defined in Section 102 of this Code, the number of Gross Square Feet that shall be used to calculate the TSF shall be calculated by the following formula:
GSF of New Hospital Use | × ( | Net increase of licensed inpatient beds in the City and County of San Francisco created by the proposed Hospital use for the associated licensed hospital operator | ) |
Total number of existing licensed inpatient beds in the City and County of San Francisco for the associated licensed hospital operator |
This formula calculates the number of gross square feet of the new Hospital use, multiplied by the ratio of the net increase of licensed inpatient beds in the City and County of San Francisco resulting from the proposed Hospital use for the associated licensed hospital operator to the total number of existing licensed inpatient beds in the City and County of San Francisco, including licensed beds at one or more locations, for the associated licensed hospital operator. The gross square feet resulting from this formula shall be subject to the TSF rate set forth in Table 411A.5.
(e) Calculation Method for Changes or Replacements of Use, from a Hospital to Any Other Use. If a Hospital use that was previously subject to the TSF undergoes a Change or Replacement of Use to any other use, the rate applicable to the new use shall be applied to any gross square feet of previous Hospital use that was excluded from the fee calculation per the formula established in Section 411A.4(d).
SEC. 411A.5. TSF SCHEDULE.
(a) Development Projects subject to the TSF shall pay the following fees, as adjusted annually in accordance with Planning Code Section 409(b).
Land Use Categories | TSF |
Residential, 21-99 units | $7.74 for all gsf of Residential use in the first 99 dwelling units (see Section 411A.4(c) above). |
Residential, all units above 99 units | $8.74 for all gsf of Residential use in all dwelling units at and above the 100th unit (see Section 411A.4(c) above). |
Non-Residential, except Hospitals and Health Services, 800-99,999 gsf | $18.04 for all gsf of Non-Residential uses less than 100,000 gsf. |
Non-Residential, except Hospitals and Health Services, all gsf above 99,999 gsf, in all areas of the City except the Central South of Market Area Plan | $24.04 for all gsf of Non-Residential use greater than 99,999 gsf. |
Non-Residential, except Hospitals and Health Services, all gsf above 99,999 gsf, in the Central South of Market Area Plan | $21.04 for all gsf of Non-Residential use greater than 99,999 gsf. |
Hospitals | $18.74 per calculation method set forth in Section 411A.4(d). |
Health Services, all gsf above 12,000 gsf | $11.00 for all gsf above 12,000 gsf |
Production, Distribution and Repair | $7.61 |
(b) Development Projects in the Market & Van Ness Residential Special Use District may propose to pay their TSF in kind, as set forth in Section 249.33.
(Added by Ord. 200-15
, File No. 150790, App. 11/25/2015, Eff. 12/25/2015 andOrd. 222-15
, File No. 155521, App. 12/18/2015, Eff. 1/17/2016; amended by Ord. 138-18, File No. 180117, App. 6/20/2018, Eff. 7/21/2018, Oper. 7/21/2018 and 1/12/2019; Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020)
AMENDMENT HISTORY
SEC. 411A.6. TSF EXPENDITURE PROGRAM.
As set forth in the Nexus Analysis, on file with the Clerk of the Board of Supervisors File No. 230764, TSF funds may only be used to reduce the burden imposed by Development Projects on the City’s transportation system. Expenditures shall be allocated as follows, giving priority to specific projects identified in the different Area Plans:
Table 411A.6A. TSF Expenditure Program | |
Transit Capital Maintenance Subtotal | 61% |
Transit Service Expansion & Reliability Improvements - San Francisco Subtotal | 32% |
Transit Service Expansion & Reliability Improvements - Regional Transit Providers Subtotal | 2% |
Complete Streets (Bicycle and Pedestrian) Improvements Subtotal | 3% |
Program Administration | 2% |
Total | 100.0% |
Transit Capital Maintenance Subtotal | 61% |
Transit Service Expansion & Reliability Improvements - San Francisco Subtotal | 35% |
Transit Service Expansion & Reliability Improvements - Regional Transit Providers Subtotal | 2% |
Complete Streets (Bicycle and Pedestrian) Improvements Subtotal | 0% |
Program Administration | 2% |
Total | 100.0% |
AMENDMENT HISTORY
Undesignated introductory paragraph amended; Ord. 193-23, Eff. 10/16/2023.
SEC. 411A.7. TSF FUND.
Money received from collection of the TSF, including earnings from investments of the TSF, shall be held in trust by the Treasurer of the City and County of San Francisco under California Government Code Section 66006 of the Mitigation Fee Act. It shall be distributed according to the fiscal and budgetary provisions of the San Francisco Charter and the Mitigation Fee Act, subject to the following conditions and limitations. As reasonably necessary to mitigate the impacts of new development on the City's public transportation system, TSF funds may be used to fund transit capital maintenance projects, transit capital facilities and fleet, and complete streets (pedestrian and bicycle) infrastructure. These expenditures may include, but are not limited to: capital costs associated with establishing new transit routes, expanding transit routes, and increasing service on existing transit routes, including, but not limited to, procurement of related items such as rolling stock, and design and construction of bus shelters, stations, tracks, and overhead wires; capital or maintenance costs required to add revenue service hours or enhanced capacity to existing routes; capital costs of pedestrian and bicycle facilities, including, but not limited to, sidewalk paving and widening, pedestrian and bicycle signalization of crosswalks or intersection, bicycle lanes within street right-of-way, physical protection of bicycle facilities from motorized traffic, bike sharing, bicycle parking, and traffic calming. Proceeds from the TSF may also be used to administer, enforce, or defend Section 411A.
SEC. 411A.8. THREE YEAR REVIEW OF ECONOMIC FEASIBILITY STUDY.
Every three years, or sooner if requested by the Mayor, the Planning Commission, or the Board of Supervisors, the SFMTA shall update the TSF Economic Feasibility Study. This update shall analyze the impact of the TSF on the feasibility of development, throughout the City. This update shall be in addition to the five-year evaluation of all development fees mandated by Section 410 of this Code.
SEC. 411A.9. FURTHER STUDY OF ECONOMIC FEASIBILITY.
The Controller and the Planning Department shall study the feasibility of creating a variable impact fee structure based on economic feasibility of projects in different areas of the City, and report back to the Board of Supervisors within six months of the effective date of this Ordinance No. 200-15
.1
CODIFICATION NOTE
[DOWNTOWN PARK FEE]
SEC. 412.1. PURPOSE AND FINDINGS SUPPORTING DOWNTOWN PARK FEE.
(a) Purpose. Existing public park facilities located in the downtown office districts are at or approaching capacity utilization by the daytime population in those districts. The need for additional public park and recreation facilities in the downtown districts will increase as the daytime population increases as a result of continued office development in those areas. While the open space requirements imposed on individual office and retail developments address the need for plazas and other local outdoor sitting areas to serve employees and visitors in the districts, such open space cannot provide the same recreational opportunities as a public park. In order to provide the City and County of San Francisco with the financial resources to acquire and develop public park and recreation facilities which will be necessary to serve the burgeoning daytime population in these districts, a Downtown Park Fund shall be established as set forth herein.
(b) Findings. The Board of Supervisors has reviewed the San Francisco Citywide Nexus Analysis (“Nexus Analysis”), and the San Francisco Infrastructure Level of Service Analysis, both on file with the Clerk of the Board in File No. 230764 and, under Section 401A, adopts the findings and conclusions of those studies and the general and specific findings in that Section, specifically including the Recreation and Open Space Findings, and incorporates those by reference herein to support the imposition of the fees under this Section.
AMENDMENT HISTORY
SEC. 412.2. DEFINITIONS.
See Section 401 of this Article.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
SEC. 412.3. APPLICATION.
Section 412.1 et seq. shall apply to a proposed office development project within the C-3-O, C-3-O (SD), C-3-R, C-3-G or C-3-S Use Districts that results in a net addition of gross floor area of office use. These requirements are in addition to any applicable requirements set forth in Section 138 of this Code.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
SEC. 412.4. IMPOSITION OF DOWNTOWN PARK FEE REQUIREMENT.
(a) Determination of Requirements. The Department shall determine the applicability of Section 412.1 et seq. to any development project requiring a first construction document and, if Section 412.1 et seq. is applicable, the number of gross square feet of office use subject to its requirements, and shall impose this requirement as a condition of approval for issuance of the first construction document for the development project to address the need for additional public park and recreation facilities in the downtown districts. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Amount of Fee. The amount of the fee shall be $2 per square foot of the Net Addition of Gross Floor Area of Office Use to be constructed as set forth in the final approved building or site permit.
(c) Department Notice to Development Fee Collection Unit at DBI. After the Department has made its final determination of the net addition of gross floor area of office use subject to Section 412.1 et seq. and the dollar amount of the Downtown Park Fee required, the Department shall immediately notify the Development Fee Collection Unit at DBI of its determination, in addition to the other information required by Section 402(b) of this Article.
(d) Process for Revisions of Determination of Requirement. In the event that the Department or the Commission takes action affecting any development project subject to Section 412.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) of this Article shall be followed.
AMENDMENT HISTORY
SEC. 412.5. DOWNTOWN PARK FUND.
There is hereby established a separate fund set aside for a special purpose entitled the Downtown Park Fund ("Fund"). All monies collected by DBI pursuant to this Section 412.1 et seq. shall be deposited in the Fund. All monies deposited in the Fund shall be used solely to acquire and develop public recreation and park facilities for use by the daytime population of the C-3 Use Districts, except that $100,000 of the monies from the fund shall be used to fund a nexus study, under the direction of the General Manager of the Recreation and Park Department, to examine whether the Downtown Park Fee should be imposed on uses other than office and on geographic areas of the City other than C-3 use districts. No Downtown Park Fee monies shall be expended on improvements for Ferry Park (generally Assessor's Block 202, Lots 6, 14 and 15, and Assessor's Block 203, Lot 14) until such time as this nexus study is completed unless use of such Downtown Park Fee monies is approved by a financial committee of the Board of Supervisors.
The Fund shall be administered jointly by the Recreation and Park Commission and the Planning Commission. The two Commissions shall conduct business related to their duties under this Section at joint public hearings, which hearings may be initiated by either the Recreation and Park Commission or the Planning Commission. A joint public hearing shall be held by the Commissions to elicit public comment on proposals for the acquisition of property using monies in the Fund. Notice of any joint public hearings shall be published in an official newspaper at least 20 days prior to the date of the hearing, which notice shall set forth the time, place, and purpose of the hearing. The hearing may be continued to a later date by a majority vote of the members of both Commissions present at the hearing. At a joint public hearing, a quorum of the membership of both Commissions may vote to allocate the monies in the Fund for acquisition of property for park use and/or for development of property for park use. The Recreation and Park Commission shall alone administer the development of the recreational and park facilities on any acquired property designated for park use by the Board of Supervisors, using such monies as have been allocated for that purpose at a joint hearing of both Commissions.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
SEC. 412.6. COLLECTION OF FEE.
The Downtown Park Fee shall be paid to DBI for deposit into the Downtown Park Fund at the time required by Section 402(d).
AMENDMENT HISTORY
[JOBS-HOUSING LINKAGE PROGRAM]
SEC. 413.1. FINDINGS.
The Board hereby finds and declares as follows:
(a) Large-scale entertainment, hotel, office, laboratory, and retail developments in the City have attracted and continue to attract additional employees to the City, and there is a causal connection between such developments and the need for additional housing in the City, particularly housing affordable to households of lower and moderate income. Such commercial uses in the City benefit from the availability of housing close by for their employees. However, the supply of housing units in the City has not kept pace with the demand for housing created by these new employees. Due to this shortage of housing, employers will have difficulty in securing a labor force, and employees, unable to find decent and affordable housing, will be forced to commute long distances, having a negative impact on quality of life, limited energy resources, air quality, social equity, and already overcrowded highways and public transport.
(b) There is a low vacancy rate for housing affordable to persons of lower and moderate income. This low vacancy rate is due in part to large-scale commercial developments, which have attracted and will continue to attract additional employees and residents to the City. Consequently, some of the employees attracted to these developments are competing with present residents for scarce, vacant affordable housing units in the City. Competition for housing generates the greatest pressure on the supply of housing affordable to households of lower and moderate income. In San Francisco, office or retail uses of land generally yield higher income to the owner than housing. Because of these market forces, the supply of these affordable housing units will not be expanded. Furthermore, Federal and State housing finance and subsidy programs are not sufficient by themselves to satisfy the lower and moderate income housing requirements of the City.
(c) The City has consistently set housing production goals to address the regional and citywide forecasts for population, households, and employment. Although San Francisco has seen increased housing production each successive decade since the 1970s, the City has not been able to close the gap between its housing production goals and actual production.
(d) There is a continuing shortage of low- and moderate-income housing in San Francisco. It is desirable to impose the cost of the increased burden of providing housing necessitated by large-scale commercial development projects directly upon the sponsors of the development projects by requiring that the project sponsors contribute land or pay a fee to the City to subsidize housing development as a condition of the privilege of development and to assist the community in solving those of its housing problems generated by the development.
(e) The Bay Area has seen dramatic increases in land acquisition costs for housing, the cost of new housing development and the affordability gap for low to moderate income workers seeking housing. Commute patterns for the region have also changed, with more workers who work outside of San Francisco seeking to live in the City, thus increasing demand for housing and decreasing housing availability.
(f) As the regional job center, San Francisco has historically had the highest ratio of jobs-to-housing units in the Bay Area.
(g) The required housing exaction shall be based upon formulas derived in a periodic jobs housing nexus analysis. Consistent with the requirements of the California Mitigation Fee Act, the jobs housing nexus analysis shall demonstrate the validity of the nexus between new, large scale entertainment, hotel, office, laboratory, and retail development and the increased demand for housing in the City, and the numerical relationship between such development projects and the formulas for the provision of housing set forth in Section 413.1 et seq.
(h) The Board of Supervisors has reviewed the Jobs Housing Nexus Analysis (“Jobs Housing Nexus Analysis”), which is on file with the Clerk of the Board in Board File No. 190548, and adopts the findings and conclusions of that study, and incorporates the findings by reference herein to support the imposition of the fees under Section 413.1 et seq.
AMENDMENT HISTORY
Former divisions A.–C. and K. amended and redesignated as divisions (a)-(c) and (e); former divisions D. and F. amended and combined as division (d); former divisions E., G.–J., L., and M. deleted; new divisions (f)-(h) added; Ord. 251-19, Eff. 12/16/2019. Division (h) amended; Ord. 193-23, Eff. 10/16/2023.
SEC. 413.2. DEFINITIONS.
See Section 401 of this Article.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
SEC. 413.3. APPLICATION.
(a) With the exception of uses listed below in subsection (b), Sections 413.1 et seq. shall apply to any development project:
(1) that increases by 25,000 or more gross square feet the total amount of any combination of the following uses; entertainment, hotel, Integrated PDR, office, research and development, retail, and/or Small Enterprise Workspace, and
(2) whose environmental evaluation application for the development project was filed on or after January 1, 1999.
(1) Any development project other than a development project described in Subsection (a) of this Section, including those portions of a development project consisting of the net addition of square feet of any type of space not described in Subsection (a) of this Section;
(2) Those portions of a development project described in Subsection (a) of this Section located on property owned by the United States or any of its agencies or leased by the United States or any of its agencies for a period in excess of 50 years, with the exception of such property not used exclusively for a governmental purpose;
(3) Those portions of a development project described in Subsection (a) of this Section located on property owned by the State of California or any of its agencies, with the exception of such property not used exclusively for a governmental or educational purpose;
(4) Those portions of a development project described in Subsection (a) of this Section located on property under the jurisdiction of the San Francisco Redevelopment Agency or the Port of San Francisco where the application of Section 413.1 et seq. is prohibited by California or local law;
(5) Any office development project approved by the Commission prior to August 18, 1985 that was not subject to the Interim Guidelines; or
(6) Any office development project approved by the Commission prior to August 18, 1985 that was subject to the Interim Guidelines. If the action of the Commission affecting such office development project is thereafter modified, superseded, vacated, or reversed by the Board of Appeals, the Board of Supervisors, or by court action in a manner affecting the amount of housing required under the Interim Guidelines, the permit application on remand to the Commission shall remain subject to the Interim Guidelines.
(7) Any major phase or development project in Mission Bay North or South to the extent application of Section 413.1 et seq. would be inconsistent with the Mission Bay North Redevelopment Plan and Interagency Cooperation Agreement or the Mission Bay South Redevelopment Plan and Interagency Cooperation Agreement, as applicable.
(8) Any of the following free-standing uses. For purposes of this subsection (b)(8), the term “free-standing” shall mean an independent building or structure used exclusively by a single use and any Accessory Uses, and that is not part of a larger development project on the same environmental evaluation application.
(A) any free-standing Pharmacy use which does not exceed more than 50,000 square feet of retail or other space; or
(B) any free-standing General Grocery use which does not exceed more than 75,000 square feet of retail or other space; or
(C) any mixed-use space consisting of Residential space and Pharmacy retail space not exceeding 50,000 square feet, or General Grocery retail space not exceeding 75,000 square feet.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 270-10, File No. 100917, App. 11/5/2010; amended by Ord. 202-18, File No. 180557, App. 8/10/2018, Eff. 9/10/2018)
AMENDMENT HISTORY
Divisions (a)-(a)(2), (b), and (b)(8)-(b)(8)(C) amended; Ord. 202-18, Eff. 9/10/2018.
SEC. 413.4. IMPOSITION OF HOUSING REQUIREMENT.
(a) Determination of Requirements. The Department shall determine the applicability of Section 413.1 et seq. to any development project requiring a first construction document, and if Section 413.1 et seq. is applicable, the number of gross square feet of each type of space subject to its requirements, and shall impose these requirements as a condition of approval for issuance of the first construction document for the development project to mitigate the impact on the availability of housing which will be caused by the employment facilitated by the development project. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Department Notice to Development Fee Collection Unit at DBI. After the Department has made its final determination of the net addition of gross square feet of each type of space subject to Section 413.1 et seq., it shall immediately notify the Development Fee Collection Unit at DBI of its determination in addition to the other information required by Section 402(b) of this Article.
(c) Sponsor’s Choice to Fulfill Requirements. Prior to issuance of a building or site permit for a development project subject to the requirements of Section 413.1 et seq., the sponsor shall elect one of the options listed below to fulfill any requirements imposed as a condition of approval and notify the Department of their choice of the following:
(2) Pay an in-lieu fee to the Development Fee Collection Unit at DBI according to the formula set forth in Section 413.5; or
(3) Combine the above options pursuant to Section 413.7.
(e) Development Fee Collection Unit Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the first certificate of occupancy for any development project subject to Section 413.1 et seq. that has elected to fulfill all or part of the requirements with an option other than payment of an in-lieu fee. If the Department notifies the Unit at such time that the sponsor has not satisfied the requirements, the Director of DBI shall deny any and all certificates of occupancy until the subject project is brought into compliance with the requirements of Section 413.1 et seq.
(f) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Section 413.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) shall be followed.
AMENDMENT HISTORY
Divisions (c)-(c)(3) amended; Ord. 251-19, Eff. 12/16/2019.
SEC. 413.5. COMPLIANCE BY PAYMENT OF IN-LIEU FEE.
(a) The amount of the fee which may be paid by the sponsor of a development project shall be determined by the following formulas for each type of space proposed as part of the development project and subject to this Article 4.
(1) For applicable projects (as defined in Section 413.3), any net addition shall pay per the Fee Schedule in Table 413.5A, and
(2) For applicable projects (as defined in Section 413.3), any replacement or change of use shall pay per the Fee Schedule in Table 413.5B.
Use | Fee per Gross Square Foot |
Use | Fee per Gross Square Foot |
Entertainment | $18.62 |
Hotel | $14.95 |
Institutional | $0 |
Office (50,000 gsf and above) | See subsection (c) below. |
Office (up to 49,999 gsf) | See subsection (d) below. |
PDR | $0 |
Laboratory | See subsection (e) below. |
Residential | $0 |
Retail | $18.62 |
Small Enterprise Workspace | $15.69 |
Previous Use | New Use | Fee per Gross Square Foot |
Entertainment, Hotel, Office, Laboratory, Retail, or Small Enterprise Workspace | Entertainment, Hotel, Office, Retail, or Small Enterprise Workspace | $0 |
PDR which received its First Certificate of Occupancy on or before April 1, 2010 | Entertainment, Hotel, Office, Laboratory, Retail, or Small Enterprise Workspace | Use Fee from Table 413.5A minus $14.09 |
Institutional which received its First Certificate of Occupancy on or before April 1, 2010 | Entertainment, Hotel, Office, Laboratory, Retail, or Small Enterprise Workspace | $0 |
Institutional or PDR which received its First Certificate of Occupancy on or before April 1, 2010 | Institutional, PDR, Laboratory, Residential | $0 |
Institutional or PDR which received its First Certificate of Occupancy after April 1, 2010 | Any | Use Fee from Table 413.5 |
Residential | Entertainment, Hotel, Office, PDR, Laboratory, Retail, or Small Enterprise Workspace | Use Fee from Table 413.5 |
(c) Office Fees for Large Capital Projects. Notwithstanding any other provision of this Code, fees for the net addition of 50,000 gross square feet and above of Office Use shall be paid as follows:
(1) For any project that (1) received an approval from the Planning Commission or Planning Department on or before September 10, 2019, stating that the project shall be subject to any new, changed, or increased Jobs Housing Linkage Fee adopted prior to that project’s procurement of a Certificate of Occupancy or Final Completion, and (2) has not procured a Certificate of Occupancy or Final Completion as of the effective date of the ordinance in Board File No. 190548, amending this Section 413.5, such project shall pay the difference between the amount of the fees assessed at the time of site permit issuance and any additional amounts due under the new, changed, or increased fee up to $52.20 before the City may issue a Certificate of Occupancy or Final Completion.
(2) For any project that has submitted a complete Preliminary Project Assessment on or before September 10, 2019, and has not had its building or site permit issued as of the effective date of this ordinance in Board File No. 190548, such project, regardless of when it submitted its complete Development Application, shall pay $52.20 per gross square foot. Any fees shall be assessed and paid consistent with this Article 4.
(3) For any project that has submitted a complete Development Application between the dates of September 11, 2019, and January 1, 2021, and has not had its building or site permit issued as of the effective date of this ordinance in Board File No. 190548, such project shall pay $60.90 per gross square foot. Any fees shall be assessed and paid consistent with this Article 4.
(d) Office Fees for Small Capital Projects. Notwithstanding any other provision of this Code, fees for the net addition up to 49,999 gross square feet of Office Use shall be paid as follows:
(1) For any project that has submitted a complete Preliminary Project Assessment on or before September 10, 2019, and has not had its building or site permit issued as of the effective date of this ordinance in Board File No. 190548, such project, regardless of when it submitted its complete Development Application, shall pay $46.98 per gross square foot. Any fees shall be assessed and paid consistent with this Article 4.
(2) For any project that has submitted a complete Development Application between the dates of September 11, 2019, and January 1, 2021, and has not had its building or site permit issued as of the effective date of this ordinance in Board File No. 190548, such project shall pay $54.81 per gross square foot. Any fees shall be assessed and paid consistent with this Article 4.
(3) Any project that has submitted a complete Development Application after January 1, 2021, shall pay $62.64 per gross square foot. Any fees shall be assessed and paid consistent with this Article 4.
(e) Laboratory Fees. Notwithstanding any other provision of this Code, fees for the net addition of Laboratory Use shall be paid as follows:
(1) For any project that has submitted a complete Preliminary Project Assessment on or before September 10, 2019, and has not had its building or site permit issued as of the effective date of this ordinance in Board File No. 190548, such project, regardless of when it submitted its complete Development Application, shall pay $31.43 per gross square foot. Any fees shall be assessed and paid consistent with this Article 4.
(2) For any project that has submitted a Development Application between the dates of September 11, 2019, and January 1, 2021, and has not had its building or site permit issued as of the effective date of this ordinance in Board File No. 190548, such project shall pay $34.90 per gross square foot. Any fees shall be assessed and paid consistent with this Article 4.
(Added as Sec. 413.6 by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; Ord. 55-11, File No. 101523, App. 3/23/2011; Ord. 263-13, File No. 130549, App. 11/27/2013, Eff. 12/27/2013; Ord. 50-15, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; redesignated and amended by Ord. 251-19, File No. 190548, App. 11/15/2019, Eff. 12/16/2019; Ord. 63-20, File No. 200077, App. 4/24/2024, Eff. 5/25/2020; Ord. 136-21, File No. 210674, App. 8/4/2021, Eff. 9/4/2021; Ord. 196-25, File No. 250657, App. 10/24/2025, Eff. 11/24/2025)
(Former Sec. 413.5 added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 270-10, File No. 100917, App. 11/5/2010; repealed by Ord. 251-19, File No. 190548, App. 11/15/2019, Eff. 12/16/2019)
AMENDMENT HISTORY
Undesignated paragraph preceding division (c) amended; Ord. 263-13, Eff. 12/27/2013. Division (c) amended; Ord. 55-11, Eff. 5/24/2015. Section redesignated; section header amended; undesignated paragraph deleted; divisions (a)- (a)(2) and Tables 413.5A and 413.5B amended; former division (c) redesignated as (b); new divisions (c)-(e)(3) added; Ord. 251-19, Eff. 12/16/2019. Division (b) amended; Ord. 63-20, Eff. 5/25/2020. Division (d)(3) amended; Ord. 136-21, Eff. 9/4/2021. Division (b) amended; Ord. 196-25, Eff. 11/24/2025.
CODIFICATION NOTE
1. So in Ord. 251-19.
Editor’s Note:
SEC. 413.6. COMPLIANCE BY LAND DEDICATION.
(a) Controls. Projects may satisfy all or a portion of the requirements of Section 413.1 et seq. via dedication of land to the City for the purpose of constructing units Affordable to Qualifying Households. Projects may receive a credit against
such requirements up to the value of the land donated, calculated pursuant to subsection (b) below.
(b) Requirements.
(1) The value of the dedicated land shall be determined by the Director of Property pursuant to Chapter 23 of the Administrative Code, but shall not exceed the actual cost of acquisition by the project sponsor of the dedicated land in an arm’s length transaction. Prior to issuance by DBI of the first site or building permit for a development project subject to Section 413.1 et seq. the sponsor shall submit to the Department, with a copy to MOHCD and the Director of Property, documentation sufficient to substantiate the actual cost of acquisition by the sponsor in an arm’s length transaction of any land to be dedicated by the sponsor to the City, and any additional information that would impact the value of the land.
(2) Projects are subject to the requirements of Section 419.5(a)(2)(A) and (C)-(J).
(Former Sec. 413.6 added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; Ord. 55-11, File No. 101523, App. 3/23/2011; Ord. 263-13, File No. 130549, App. 11/27/2013, Eff. 12/27/2013; Ord. 50-15, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; redesignated as Sec. 413.5 and amended by Ord. 251-19, File No. 190548, App. 11/15/2019, Eff. 12/16/2019)
AMENDMENT HISTORY
SEC. 413.7. COMPLIANCE BY COMBINATION OF PAYMENT OF IN-LIEU FEE AND LAND DEDICATION.
With the written approval of the Director of MOHCD, the sponsor of a development project subject to Section 413.1 et seq. may elect to satisfy its housing requirement by a combination of contributing land to the City under Section 413.6 and paying a partial amount of the in-lieu fee to the Development Fee Collection Unit at DBI under Section 413.5. In the case of such election, the sponsor must pay a sum such that each gross square foot of net addition of each type of space subject to Section 413.1 et seq. is accounted for in either the contribution of land to the City under Section 413.6 or the payment of a fee to the Development Fee Collection Unit. All of the requirements of Section 413.1 et seq. shall apply, including the requirements with respect to the timing of issuance of site and building permits, first construction documents, and certificates of occupancy for the development project and payment of the in-lieu fee.
(Former Sec. 413.7 added by Ord. 108-10, File No. 091275, App. 5/25/2010; repealed by Ord. 71-14, File No. 131205, App. 5/23/2014, Eff. 6/22/2014)
AMENDMENT HISTORY
Section redesignated; section header and section amended; Ord. 251-19, Eff. 12/16/2019.
SEC. 413.8. LIEN PROCEEDINGS.
A project sponsor’s failure to comply with the requirements of Sections 413.5 and 413.6 shall be cause for the Development Fee Collection Unit at DBI to institute lien proceedings to make the in-lieu fee, as adjusted under Section 413.5, plus interest and any deferral surcharge, a lien against all parcels used for the development project, in accordance with Section 408 of this Article 4 and Section .13.15 of the San Francisco Building Code.
(Added as Sec. 413.9 by Ord. 108-10, File No. 091275, App. 5/25/2010; redesignated and amended by Ord. 251-19, File No. 190548, App. 11/15/2019, Eff. 12/16/2019)
SEC. 413.9. CITYWIDE AFFORDABLE HOUSING FUND.
(a) Use of Fees. All monies contributed pursuant to the Jobs Housing Linkage Fee Program in Section 413.1 et seq. shall be deposited in the Citywide Affordable Housing Fund (“Fund”), established in Administrative Code Section 10.100-49. The receipts in the Fund collected under Section 413.1 et seq. shall be used solely to increase the supply of housing Affordable to Qualifying Households subject to the conditions of this Section 413.9. The fees collected under this Section may not be used, by way of loan or otherwise, to pay any administrative, general overhead, or similar expense of any entity. MOHCD shall develop procedures such that, for all projects funded by the Citywide Affordable Housing Fund, MOHCD requires the project sponsor or its successor in interest to give preference in occupying units as provided for in Administrative Code Chapter 47.
(1) Preservation and Acquisition Funds.
(A) Designation of Funds. MOHCD shall designate and separately account for 10% of all fees that it receives under Section 413.1 et seq. that are deposited into the Fund to support the acquisition and rehabilitation of rent restricted affordable rental housing.
(B) Use of Preservation and Acquisition Funds. The funds shall be used exclusively to acquire and preserve existing housing with the goal of making such housing permanently affordable, including but not limited to acquisition of housing through the City’s Small Sites Program. Units supported by monies from the Fund shall be designated as housing affordable to qualified households for the life of the project. Properties supported by the Preservation and Acquisition Funds must be:
(i) rental properties that will be maintained as rental properties;
(ii) vacant properties that were formerly rental properties as long as those properties have been vacant for a minimum of two years prior to the effective date of the ordinance in Board File No. 190548, amending this Section 413.9;
(iii) properties that have been the subject of foreclosure; or
(iv) a Limited Equity Housing Cooperative as defined in Subdivision Code Sections 1399.1 et seq. or a property owned or leased by a non-profit entity modeled as a Community Land Trust.
(C) Annual Report. At the end of each fiscal year, MOHCD shall issue a report to the Board of Supervisors regarding the total amount of Preservation and Acquisition Funds received, and how those funds were used.
(b) Accounting of Funds in Central SoMa Special Use District. Pursuant to Section 249.78(e)(1), all monies contributed pursuant to the Jobs-Housing Linkage Program and collected within the Central SoMa Special Use District shall be paid into the Citywide Affordable Housing Fund, but the funds shall be separately accounted for. Consistent with the allocations in subsection (a), such funds shall be expended within the area bounded by Market Street, the Embarcadero, King Street, Division Street, and South Van Ness Avenue.
(Added as Sec. 413.10 by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 277-13, File No. 130968, App. 12/18/2013, Eff. 1/17/2014; Ord. 143-15, File No. 150568, App. 8/6/2015, Eff. 9/5/2015; Ord. 204-15, File No. 150622, App. 12/3/2015, Eff. 1/2/2016; Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019; redesignated and amended by Ord. 251-19, File No. 190548, App. 11/15/2019, Eff. 12/16/2019; amended by Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021)
AMENDMENT HISTORY
Section amended; Ord. 277-13, Eff. 1/17/2014. Section amended; Ord. 143-15, Eff. 9/5/2015. Section amended; Ord. 204-15, Eff. 1/2/2016. Second undesignated paragraph added; Ord. 296-18, Eff. 1/12/2019. Section redesignated; undesignated paragraphs amended and designated as divisions (a) and (b); new divisions (a)(1)-(a)(2) added; Ord. 251-19, Eff. 12/16/2019. Division (a) amended; Ord. 210-21, Eff. 12/20/2021.
CODIFICATION NOTE
1. So in Ord. 251-19.
SEC. 413.11. EVALUATION OF FEE.
(a) If, in the discretion of the Director of Planning, there has been a substantial change in the San Francisco and/or regional economies since the effective date of the requirements of Section 413.1 et seq., the Director may recommend to the Commission, the Board of Supervisors, and the Mayor that Section 413.1 et seq. be amended or rescinded to alleviate any undue burden on commercial development in the City that Section 413.1 et seq. may impose.
(b) At the next comprehensive evaluation of all development fees and development impact requirements, pursuant to Section 410, the Controller, in consultation with the Department, and MOHCD and any necessary consultants, consistent with the civil service provisions of the Charter, and every five years thereafter, shall commission an update to the Jobs-Housing Nexus Analysis. The comprehensive evaluation of the Jobs-Housing Linkage Fee, pursuant to Section 410, shall include an evaluation of office projects in a range of sizes and an assessment of the availability of office allocation.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 251-19, File No. 190548, App. 11/15/2019, Eff. 12/16/2019)
AMENDMENT HISTORY
Section header amended; undesignated paragraph designated as division (a) and amended; division (b) added; Ord. 251-19, Eff. 12/16/2019.
[CHILD CARE REQUIREMENTS FOR OFFICE AND HOTEL DEVELOPMENT PROJECTS]
SEC. 414.1. PURPOSE AND FINDINGS SUPPORTING CHILDCARE REQUIREMENTS FOR OFFICE AND HOTEL DEVELOPMENT PROJECTS.
(a) Purpose. Office, hotel, and other new commercial developments in the City are benefitted by the availability of childcare for persons employed in such developments close to their place of employment. However, the supply of childcare in the City has not kept pace with the demand for childcare created by new employees. Due to this shortage of childcare, employers will have difficulty in securing a labor force, and employees unable to find accessible and affordable quality childcare will be forced either to work where such services are available outside of San Francisco or leave the work force entirely, in some cases seeking public assistance to support their children. In either case, there will be a detrimental effect on San Francisco's economy and its quality of life.
The San Francisco General Plan encourages "continued growth of prime downtown office activities so long as undesirable consequences of such growth can be avoided" and requires that there be the provision of "adequate amenities for those who live, work and use downtown." In light of these provisions, the City should impose requirements on developers of certain commercial projects designed to mitigate the adverse effects of the expanded employment facilitated by such projects. To that end, the Commission is authorized to promote affirmatively the policies of the General Plan through the imposition of special childcare development or assessment requirements. It is desirable to impose the costs of the increased burden of providing childcare necessitated by such commercial development projects directly upon the sponsors of new development generating the need. This is to be done through a requirement that the sponsor construct childcare facilities or pay a fee into a fund used to foster the expansion of and to ease access to affordable childcare as a condition of the privilege of development.
(b) Findings. The Board of Supervisors has reviewed the San Francisco Citywide Nexus Analysis (“Nexus Analysis”), and the San Francisco Infrastructure Level of Service Analysis, both on file with the Clerk of the Board in File No. 230764 and, under Section 401A, adopts the findings and conclusions of those studies and the general and specific findings in that Section, specifically including the Childcare Findings, and incorporates those by reference herein to support the imposition of the fees under this Section.
AMENDMENT HISTORY
SEC. 414.2. DEFINITIONS.
See Section 401 of this Article.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
SEC. 414.3. APPLICATION.
(a) Section 414.1 et seq. shall apply to office and hotel development projects proposing the net addition of 25,000 or more gross square feet of office or hotel space.
(b) Section 414.1 et seq. shall not apply to:
(1) Any development project other than an office or hotel development project, including that portion of an office or hotel development project consisting of a retail use;
(2) That portion of an office or hotel development project located on property owned by the United States or any of its agencies;
(3) That portion of an office or hotel development project located on property owned by the State of California or any of its agencies, with the exception of such property not used exclusively for a governmental purpose;
(4) That portion of an office or hotel development project located on property under the jurisdiction of the Port of San Francisco or the San Francisco Redevelopment Agency where the application of this Section is prohibited by State or local law; and
(5) Any office or hotel development project approved by the Commission prior to the effective date of Section 414.1 et seq.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 2-16
, File No. 150793, App. 1/19/2016, Eff. 2/18/2016)
AMENDMENT HISTORY
SEC. 414.4. IMPOSITION OF CHILD CARE REQUIREMENT.
(a) Determination of Requirements. The Department shall determine the applicability of Section 414.1 et seq. to any development project requiring a first construction document and, if Section 414.1 is applicable, the number of gross square feet of each type of space subject to its requirements, and shall impose these requirements as a condition of approval for issuance of the first construction document for the development project to mitigate the impact on the availability of child-care facilities which will be caused by the employees attracted to the proposed development project. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Department Notice to Development Fee Collection Unit at DBI. After the Department has made its final determination of the net addition of gross square feet of each type of space subject to Section 414.1 et seq., it shall immediately notify the Development Fee Collection Unit at DBI of its determination in addition to the other information required by Section 402(b) of this Article.
(c) Sponsor’s Choice to Fulfill Requirements.
(1) Except as otherwise specified in this subsection, prior to issuance of a building or site permit for a development project subject to the requirements of Section 414.1 et seq., the sponsor shall elect one of the six options listed below to fulfill any requirements imposed as a condition of approval and notify the Department of its choice of the following:
(A) Provide a child-care facility on the premises of the development project for the life of the project pursuant to Section 414.5; or
(B) In conjunction with the sponsors or one or more other development projects subject to Section 414.1 et seq. located within ½ mile of one another, provide a single child-care facility on the premises of one of their development projects for the life of the project as set forth in Section 414.6; or
(D) Pay an in-lieu fee to the Development Fee Collection Unit at DBI pursuant to Section 414.8; or
(E) Combine payment of an in-lieu fee to the Child Care Capital Fund with construction of a child-care facility on the premises or providing child-care facilities near the premises, either singly or in conjunction with other sponsors pursuant to Section 414.9; or
(F) Enter into an arrangement pursuant to which a nonprofit organization shall provide a child-care facility at a site within the City pursuant to Section 414.10.
(d) Department Notice to Development Fee Collection Unit of Sponsor's Choice. After the project sponsor has notified the Department of their choice to fulfill the requirements of Section 414.1 et seq., the Department shall immediately notify the Development Fee Collection Unit at DBI of the sponsor's choice.
(e) Development Fee Collection Unit Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the first certificate of occupancy for any development project subject to Section 414.1 et seq. that has elected to fulfill all or part of its requirement with an option other than payment of an in-lieu fee. If the Department notifies the Unit at such time that the sponsor has not satisfied the requirements, the Director of DBI shall deny any and all certificates of occupancy until the subject project is brought into compliance with the requirements of Section 414.1 et seq.
(f) Process for Revisions of Determination of Requirements. In the event that the Department or Commission takes action affecting any development project subject to Section 414.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) of this Article shall be followed.
AMENDMENT HISTORY
Divisions (c)-(c)(6) redesignated as (c)-(c)(1)(F); current division (c)(1) amended; new division (c)(2) added; Ord. 296-18, Eff. 1/12/2019.
SEC. 414.5. COMPLIANCE BY PROVIDING AN ON-SITE CHILD-CARE FACILITY.
The sponsor of a development subject to Section 414.1 et seq. may elect to provide a child-care facility on the premises of the development project for the life of the project to meet the requirements of Section 414.1 et seq. The sponsor shall, prior to the issuance of the first certificate of occupancy by DBI for the development project, provide proof to the Department that:
(A) A space on the premises of the development project has been provided to a nonprofit child-care provider without charge for rent, utilities, property taxes, building services, repairs, or any other charges of any nature, as evidenced by a lease and an operating agreement between the sponsor and the provider with minimum terms of three years;
(B) The child-care facility is a licensed child-care facility;
(C) The child-care facility has a minimum gross floor area of 3,000 square feet or an area determined according to the following formula, whichever is greater:
Net add. gross sq. ft. off. or hotel space | × .01 = | sq. ft. of child-care facility |
In the event that the net addition of gross square feet of office or hotel of the development project is less than 300,000 square feet, the child-care facility may have a minimum gross floor area of 2,000 square feet or the area determined according to the above formula, whichever is greater; and
(D) A notice of special restriction has been recorded stating that the development project is subject to Section 414.1 et seq. and is in compliance herewith by providing a child-care facility on the premises.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019)
AMENDMENT HISTORY
Undesignated introductory paragraph amended; Ord. 296-18, Eff. 1/12/2019.
SEC. 414.6. COMPLIANCE IN CONJUNCTION WITH THE SPONSORS OF OTHER DEVELOPMENT PROJECTS TO PROVIDE AN ON-SITE CHILD-CARE FACILITY AT ONE OF THE PROJECTS.
The sponsor of a development project subject to Section 414.1 et seq. in conjunction with the sponsors of one or more other development projects subject to Section 414.1 et seq. located within one-half mile of one another may elect to provide a single child-care facility on the premises of one of their development projects for the life of the project to meet the requirements of Section 414.1 et seq. The sponsors shall, no later than six months after the issuance of the first certificate of occupancy by DBI for any one of the development projects complying with this part, provide proof to the Department that:
(A) A space on the premises of one of their development projects has been provided to a nonprofit child-care provider without charge for rent, utilities, property taxes, building services, repairs, or any other charges of any nature, as evidenced by a lease and an operating agreement between the sponsor in whose project the facility will be located and the provider with minimum terms of three years;
(B) The child-care facility is a licensed child-care facility;
(C) The child-care facility has a minimum gross floor area of 3,000 square feet or an area determined according to the following formula, whichever is greater:
Combined net add. gross sq. ft. office or hotel space of all participating dev. projects | × .01 = | sq. ft. of child-care facility |
In the event that the net addition of gross square feet of office or hotel space of all participating projects is less than 300,000 square feet, the child-care facility may have a minimum gross floor area of 2,000 square feet or the area determined according to the above formula, whichever is greater; and
(D) A written agreement binding each of the participating project sponsors guaranteeing that the child-care facility will be provided for the life of the development project in which it is located, or for as long as there is a demonstrated demand, as determined under Section 414.12, has been executed and recorded in the chain of title of each participating building. The property owner must submit a copy of the agreement to the Planning Department upon finalization to demonstrate compliance with this Section 1
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 136-21, File No. 210674, App. 8/4/2021, Eff. 9/4/2021)
AMENDMENT HISTORY
Introductory paragraph and division (D) amended; Ord. 136-21, Eff. 9/4/2021.
CODIFICATION NOTE
SEC. 414.7. COMPLIANCE IN CONJUNCTION WITH THE SPONSORS OF OTHER DEVELOPMENT PROJECTS TO PROVIDE A CHILD-CARE FACILITY WITHIN ONE MILE OF THE DEVELOPMENT PROJECTS.
Except as specified in Section 249.78, the sponsor of a development project subject to Section 414.1 et seq., either singly or in conjunction with the sponsors of one or more other development projects subject to Section 414.1 et seq. located within ½ mile of one another, may elect to provide a single child-care facility to be located within one mile of the development project(s) to meet the requirements of Section 414.1 et seq. Subject to the discretion of the Department, the child-care facility shall be located so that it is reasonably accessible to public transportation or transportation provided by the sponsor(s). The sponsor(s) shall, prior to the issuance of the first certificate of occupancy by DBI for any development project complying with this part, provide proof to the Department that:
(A) A space has been provided to a nonprofit child-care provider without charge for rent, utilities, property taxes, building services, repairs, or any other charges of any nature, as evidenced by a lease or sublease and an operating agreement between the sponsor(s) and the provider with minimum terms of three years;
(B) The child-care facility is a licensed child-care facility;
(C) The child-care facility has a minimum gross floor area of 3,000 square feet or an area determined according to the following formula, whichever is greater:
Combined net add. gross sq. ft. office or hotel space of all participating dev. projects | × .01 = | sq. ft. of child-care facility |
In the event that the net addition of gross square feet of office or hotel space of all participating projects is less than 300,000 square feet, the child-care facility may have a minimum gross floor area of 2,000 square feet or the area determined according to the above formula, whichever is greater; and
(D) A written agreement binding each of the participating project sponsors, with a term of 20 years from the date of issuance of the first certificate of occupancy for any development project complying with this part, guaranteeing that a child-care facility will be leased or subleased to one or more nonprofit child-care providers for as long as there is a demonstrated demand under Section 414.12 has been executed and recorded in the chain of title of each participating building.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019)
AMENDMENT HISTORY
Undesignated introductory paragraph amended; Ord. 296-18, Eff. 1/12/2019.
SEC. 414.8. COMPLIANCE BY PAYMENT OF AN IN-LIEU FEE.
Net add. gross sq. ft. office or hotel space × $1.57 = Total Fee
(b) The in-lieu fee shall be paid to DBI for deposit into the Child Care Capital Fund at the time required by Section 402(d).
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 2-16
, File No. 150793, App. 1/19/2016, Eff. 2/18/2016; amended by Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020)
AMENDMENT HISTORY
SEC. 414.9. COMPLIANCE BY COMBINING PAYMENT OF AN IN-LIEU FEE WITH CONSTRUCTION OF A CHILD-CARE FACILITY.
The sponsor of a development project subject to Section 414.1 et seq. may elect to satisfy its child-care requirement by combining payment of an in-lieu fee to the Child Care Capital Fund with construction of a child-care facility on the premises or providing child-care facilities near the premises, either singly or in conjunction with other sponsors. The child-care facility to be constructed on-site or provided near-site under this election shall be subject to all of the requirements of whichever of Sections 414.5, 414.6 and 414.7 is applicable, and shall have a minimum floor area of 3,000 gross square feet. If the net addition of gross square feet of office or hotel space of all participating projects is less than 300,000 square feet, the minimum gross floor area of the facility shall be 2,000 square feet. The in-lieu fee to be paid under this election shall be subject to all of the requirements of Section 414.8 and shall be determined by the Commission according to the following formula:
[ | Net. add. Gross sq. ft. space subject project | - | Net. add. Gross sq. ft. space subject project | × | Sq. ft. child care facility | × 100 | ] | × $1.00 | = | Total Fee for Subject Project |
Net. add Gross sq. ft. space all participating projects |
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
SEC. 414.10. COMPLIANCE BY ENTERING INTO AN ARRANGEMENT WITH A NON-PROFIT ORGANIZATION.
The sponsor of a development project subject to this Section may elect to satisfy its child-care requirement by entering into an arrangement pursuant to which a nonprofit organization will provide a child-care facility at a site within the City. The sponsor shall, prior to the issuance of the first certificate of occupancy by the Director of DBI for the development project, provide proof to the Director of Planning that:
(a) A space for a child-care facility has been provided by the nonprofit organization, either for its own use if the organization will provide child-care services, or to a nonprofit child-care provider without charge for rent, utilities, property taxes, building services, repairs, or any other charges of any nature, as evidenced by a lease or sublease and an operating agreement between the nonprofit organization and the provider with minimum terms of three years;
(b) The child-care facility is a licensed child-care facility;
(c) The child-care facility has a minimum gross floor area of 3,000 square feet or an area determined according to the following formula, whichever is greater:
Net add. gross sq. ft. office or hotel space × .01 = sq. ft. of child-care facility
In the event that the net addition of gross square feet of office or hotel space is less than 300,000 square feet, the child-care facility may have a minimum gross floor of 2,000 square feet or the area determined according to the above formula, whichever is greater;
(d) The nonprofit organization has executed and recorded a binding written agreement, with a term of 20 years from the date of issuance of the first certificate of occupancy for the development project, pursuant to which the nonprofit organization guarantees that it will operate a child-care facility or it will lease or sublease a child-care facility to one or more nonprofit child-care providers for as long as there is a demonstrated need under Section 414.12, and that it will comply with all of the requirements imposed on the nonprofit organization under Section 414.10 and imposed on a sponsor under Sections 414.4.
(e) To support the provision of a child-care facility in accordance with the foregoing requirements, the sponsor has paid to the nonprofit organization a sum which equals or exceeds the amount of the in-lieu fee which would have been applicable to the project under Section 414.8.
(f) The Office of Early Care and Education, or any successor entity has determined that the proposed child-care facility will help meet the needs identified in the San Francisco Child Care Needs Assessment and will be consistent with the San Francisco Citywide Plan for Early Care and Education and Out of School Time; provided, however, that this Paragraph (f) shall not apply to any office or hotel development project approved by the Planning Commission prior to December 31, 1999.
Upon compliance with the requirements of this Section, the nonprofit organization shall enjoy all of the rights and be subject to all of the obligations of the sponsor, and the sponsor shall have no further rights or obligations under Section 414.1 et seq.
AMENDMENT HISTORY
CODIFICATION NOTE
SEC. 414.11. SPONSOR REPORTS TO THE DEPARTMENT.
In the event that a sponsor elects to satisfy its child-care requirement under Section 414.5, 414.6, 414.7, or 414.9 by providing an on-site or near-site child-care facility, the sponsor shall submit a report to the Department in January of each year for the life of the child-care facility. The report shall have attached thereto a copy of the license issued by the California Department of Social Services permitting operation of the child-care facility, and shall state:
(1) The address of the child-care facility;
(2) The name and address of the child-care provider operating the facility;
(3) The size of the center in terms of floor area;
(4) The capacity of the child-care facility in terms of the maximum number of children for which the facility is authorized to care under the license;
(5) The number and ages of children cared for at the facility during the previous year; and
(6) The fees charged parents for use of the facility during the previous year.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
SEC. 414.12. APPLICATION TO ELIMINATE THE CHILD-CARE FACILITY OR REDUCE THE FLOOR AREA.
In the event that a sponsor elects to satisfy its child-care requirement under Sections 414.5, 414.6, 414.7 or 414.9 by providing an on-site or near-site child-care facility, or under Section 414.10 by agreement with a non-profit organization, the sponsor, or in the case of a facility created pursuant to Section 414.10 the non-profit organization, may apply to the Department to eliminate the facility or to reduce the floor area of the facility in any amount, providing, however, that the gross floor area of a reduced facility is at least 2,000 square feet. The Department shall schedule a public hearing on any such application before the Commission and provide notice pursuant to Section 306.3(a) of this Code at least two months prior to the hearing. The application may be granted only where the sponsor has demonstrated that there is insufficient demand for the amount of floor area then devoted to the on-site or near-site child-care facility. The actual reduction in floor area or elimination of the child-care facility shall not be permitted in any case until six months after the application is granted. Such application may be made only five years or more after the issuance of the first certificate of occupancy for the project. Prior to the reduction in floor area or elimination of the child care facility, the sponsor shall pay an in-lieu fee to the Development Fee Collection Unit at DBI to be computed as follows:
(20 - No. of years since issuance of first construction document or first certificate of occupancy, whichever applies) | × | Net reduction gross sq. ft. child-care facility | × $100 | = | Total Fee |
20 |
Upon payment of the fee in full to the Development Fee Collection Unit and upon request of the sponsor, Development Fee Collection Unit shall issue a certification that the fee has been paid. The sponsor shall present such certification to the Director prior to the reduction in the floor area or elimination of the child care facility.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
SEC. 414.13. AFFORDABILITY REQUIREMENT.
The child care provider operating any child care facility pursuant to Sections 414.5, 414.6, 414.7 or 414.9 shall reserve at least 10 percent of the maximum capacity of the child care facility as determined by the license for the facility issued by the California Department of Social Services to be affordable to children of households of low income. The Department shall adopt rules and regulations to determine the rates to be charged to such households at the same time and following the procedures for the adoption of rules and regulations under Section 414.14.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
SEC. 414.14. CHILD CARE CAPITAL FUND.
There is hereby established a separate fund set aside for a special purpose called the Child Care Capital Fund ("Fund"). All monies contributed pursuant to the provisions of Section 414.1 et seq., and all other monies from the City's General Fund or from contributions from third parties designated for the fund shall be deposited in the Fund. All monies in the fund shall be used solely to increase and/or improve the supply of child care facilities affordable to households of low and moderate income; except that monies from the fund shall be used by the Director to fund in a timely manner any nexus study required to demonstrate the relationship between commercial development projects and child care demand as described in Section 414.1. The Fund shall be administered by the Director, who shall adopt rules and regulations governing the disposition of the Fund which are consistent with Section 414.1 et seq. Such rules and regulations shall be subject to approval by resolution of the Board of Supervisors.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 55-11, File No. 101523, App. 3/23/2011)
SEC. 414.15. DECREASE IN CHILD CARE FORMULAE AFTER STUDY.
If the Commission determines after review of an empirical study that the formulae set forth in Sections 414.5 through 414.9 impose a greater requirement for child care facilities than is necessary to provide child care for the number of employees attracted to office and hotel development projects subject to Section 414.1 et seq., the Commission shall, within three years of making such determination, refund that portion of any fee paid or permit a reduction of the space dedicated for child care by a sponsor consistent with the conclusions of such study. The Commission shall adjust any sponsor's requirement and the formulae set forth in Sections 414.5 through 414.9 so that the amount of the exaction is set at the level necessary to provide child care for the employees attracted to office and hotel development projects subject to Section 414.1 et seq.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 55-11, File No. 101523, App. 3/23/2011)
[CHILD CARE REQUIREMENTS FOR RESIDENTIAL PROJECTS]
SEC. 414A.1. PURPOSE AND FINDINGS.
(a) Purpose. Residential developments in the City are benefitted by the availability of childcare for persons residing in such developments. However, the supply of childcare in the City has not kept pace with the demand for childcare created by new residents. Due to this shortage of childcare, residents unable to find accessible and affordable quality childcare will be forced either to live where such services are available outside of San Francisco or leave the work force, in some cases seeking public assistance to support their children. In either case, there will be a detrimental effect on San Francisco's economy and its quality of life.
The San Francisco General Plan requires that the City "balance housing growth with adequate infrastructure that serves the city's growing population." In light of this provision, the City should impose requirements on developers of certain residential projects designed to mitigate the adverse effects of the increase in population facilitated by such projects.
(b) Findings. The Board of Supervisors reviewed the San Francisco Citywide Nexus Analysis (“Nexus Analysis”), and the San Francisco Infrastructure Level of Service Analysis, both on file with the Clerk of the Board of Supervisors in File No. 230764. The Board of Supervisors reaffirms the findings and conclusions of those studies as they relate to the impact of residential development on childcare and hereby readopts the General Findings in Section 401A(a) of the Planning Code and the Specific Findings in Section 401A(b) of the Planning Code relating to childcare.
AMENDMENT HISTORY
Division (b) amended; Ord. 193-23, Eff. 10/16/2023.
SEC. 414A.2. DEFINITIONS.
SEC. 414A.3. APPLICATION OF RESIDENTIAL CHILD CARE IMPACT FEE.
(a) Application.
(A) At least one net new dwelling unit;
(B) Additional space in an existing dwelling unit of more than 800 gross square feet;
(C) At least one net new group housing facility or residential care facility; or
(D) Additional space in an existing group housing or residential care facility of more than 800 gross square feet.
(A) That portion of a residential development project consisting of a retail use;
(B) That portion of a residential development project located on property owned by the United States or any of its agencies;
(C) That portion of a residential development project located on property owned by the State of California or any of its agencies, with the exception of such property not used for a governmental purpose;
(D) That portion of a residential development project located on property under the jurisdiction of the Port of San Francisco or the San Francisco Office of Community Investment and Infrastructure where the application of Sections 414A.1 et seq. is prohibited by State or local law; and
(E) Any residential development project that has obtained its First Construction Document prior to the effective date of Sections 414A.1 et seq.
AMENDMENT HISTORY
Divisions (a)(1)-(a)(1)(B), (a)(2), and (a)(2)(D)-(E) amended; Ord. 7-19, Eff. 2/25/2019.
SEC. 414A.4. IMPOSITION OF RESIDENTIAL CHILD CARE IMPACT FEE REQUIREMENT.
(a) Determination of Requirements. The Department shall determine the applicability of Section 414A to any development project requiring a First Construction Document and, if Section 414A is applicable, the number of gross square feet of space subject to its requirements, and shall impose these requirements as a condition of approval for issuance of the First Construction Document for the development project to mitigate the impact on the availability of child-care facilities that will be caused by the residents attracted to the proposed development project. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Department Notice to Development Fee Collection Unit at DBI. After the Department has made its final determination of the net addition of gross square feet of the space subject to Section 414A.1 et seq., it shall immediately notify the Development Fee Collection Unit at the Department of Building Inspection (DBI) of its determination in addition to the other information required by Section 402(b) of this Article.
(c) Timing of Fee Payments. The Residential Child Care Impact Fee shall be paid to DBI for deposit into the Child Care Capital Fund at the time required by Section 402(d).
(d) Development Fee Collection Unit Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the First Certificate of Occupancy for any development project subject to this Section 414A whether the project sponsor has paid the required Residential Child Care Impact Fee. If the Department notifies the Unit at such time that the sponsor has not paid this fee in full, the Director of DBI shall deny any and all Certificates of Occupancy until the subject project is brought into compliance with the requirements of this Section 414A.
(e) Process for Revisions of Determination of Requirements. In the event that the Department or Commission takes action affecting any development project subject to Section 414A, and such action is subsequently modified, superseded, vacated, or reversed by the Board of Appeals, the Board of Supervisors, or by a court, the procedures of Section 402(c) of this Article 4 shall be followed.
AMENDMENT HISTORY
Division (c) amended; Ord. 63-20, Eff. 5/25/2020.
SEC. 414A.5. CALCULATION OF THE RESIDENTIAL CHILD CARE IMPACT FEE.
(a) For development projects for which the Residential Child Care Impact Fee is applicable:
(1) Any net addition of gross square feet shall pay per the Fee Schedule in Table 414A.5A; and
(2) Any replacement of gross square feet or change of use shall pay per the Fee Schedule in Table 414A.5B.
TABLE 414A.5A FEE SCHEDULE FOR NET ADDITIONS OF GROSS SQUARE FEET | |
Residential projects of 10 or more units | Residential Projects of up to 9 units |
$1.83/gsf | $0.91/gsf |
TABLE 414A.5B FEE SCHEDULE FOR REPLACEMENT OF USE OR CHANGE OF USE | |||
Residential Use to Residential Use | Non-Residential to Residential | PDR to Residential | |
Residential projects of 10 or more units | $0/gsf | $0.26/gsf | $0.26/gsf |
Residential Projects of up to 9 units | $0/gsf | $0.13/gsf | $0.13/gsf |
(b) Credit for On-Site Childcare Facilities. A project may be eligible for a credit for on-site Childcare Facilities: The project sponsor must apply to the Planning Department to receive a credit for on-site child care facilities. To qualify for a credit, the facility shall be open and available to the general public on the same terms and conditions as to residents of the residential development project in which the facilities are located. Subject to the review and approval of the Planning Commission, the project sponsor may apply for a credit up to 100% of the required fee. The City shall enter into an In-Kind Agreement with the Project Sponsor under the conditions described for In-Kind Agreements in Section 421.3(d), subsections (2) through (5).
SEC. 414A.6. OPTION TO PROVIDE SMALL FAMILY CHILD CARE HOME IN LIEU OF FEE.
(a) Election to Provide Designated Child Care Units in Lieu of Residential Child Care Impact Fee. Consistent with the timing to elect the option to provide On- or Off-site Units under Section 415.5(g), the sponsor of a development project subject to the requirements of Sections 414A.1 et seq., may elect to fulfill all or a portion of the Residential Child Care Impact Fee requirement by creating one or more Designated Child Care Units in the project, as follows:
(1) The number of Designated Child Care Units in a project subject to this Section 414A shall be as follows:
Residential Project Size | Maximum allowable Designated Child Care Units |
25-100 Dwelling Units | 1 Unit |
101-200 Dwelling Units | 2 Units |
201 or more Dwelling Units | 3 Units
|
(2) A Designated Child Care Unit shall have two or more bedrooms and shall be 1,000 square feet or more;
(3) A Designated Child Care Unit shall be offered only for rent and only to a tenant who agrees to operate a State-licensed Small Family Child Care Home in the Unit;
(4) A Designated Child Care Unit shall be reserved for a period of at least ten years from the date the Designated Unit is first leased to a tenant for use as a State-licensed Small Family Child Care Home; and
(5) A Designated Child Care Unit may not be an On-site or Off-site Unit, as defined in Planning Code Sections 415 et seq. establishing the Inclusionary Affordable Housing Program.
(b) Calculation of Value of Designated Child Care Unit in Lieu of Residential Child Care Impact Fee. For purposes of determining the value of a Designated Child Care Unit to calculate a waiver of the Child Care Fee, the City shall use the following formula:
Total number of gross square feet of the unit or units designated as Child Care Units * Residential Child Care Impact Fee * 20.
This value shall be deducted from the amount of the Residential Child Care Impact Fee owed.
(c) Development of Procedures. Within nine months of the Effective Date of the ordinance in Board File No. 180917 amending this subsection (c), the Office of Early Care and Education, in consultation with the Mayor’s Office of Housing and Community Development, will provide program regulations for Designated Child Care Units. The program regulations shall include the eligibility and occupancy requirements, the application process and assignment of the units, and the roles and responsibilities of the agencies in enforcing the program regulations.
(1) The Office of Early Care and Education shall:
(A) develop a set of written procedures, standards, and eligibility requirements for selecting State-licensed Small Family Child Care Home operators for these Designated Child Care Units;
(B) provide outreach and information to the early care and education community about the availability of Designated Child Care Units; and
(C) monitor Designated Child Care Units for program compliance listed in subsection (d) as Responsibilities of Operators of Small Family Child Care Homes and refer any instances of noncompliance as a child care provider to the Planning Department for enforcement.
(2) MOHCD shall:
(A) publish program regulations on its website and update from time to time; and
(B) screen applicants for income and household eligibility and perform annual income certification consistent with the Inclusionary Affordable Housing Monitoring and Procedures Guidelines as updated from time to time.
(d) Responsibilities of Operators of Small Family Child Care Homes in Designated Child Care Units. A tenant of any Designated Child Care Unit shall agree to operate a State-licensed Small Family Child Care Home in the unit for a minimum of ten years as follows:
(1) If, in the determination of the Office of Early Care and Education, the tenant does not begin to operate a State-licensed Small Family Child Care Home in the unit within nine months of occupying the unit, or if the tenant ceases to operate a State-licensed Small Family Child Care Home at any point in time within ten years from the date the Designated Child Care Unit is first leased to a tenant to operate a State-licensed Small Family Child Care Home, all tenants in the Unit shall be required to vacate the unit within 180 days, provided that if a Small Family Child Care Home has operated in the unit for ten years or more, a tenant who operated a Small Family Child Care Home in the unit will not be required to vacate the unit after such 10-year period;
(2) At least one-third of the children served by the Small Family Child Care Home shall be from Households of Low- or Moderate-income, as defined in Section 401; and
(3) The Small Family Child Care Home established in any Designated Child Care Unit shall serve at least four children of whom the operator of the Small Family Child Care Home is not a parent or guardian, based on an average over the previous 12 months.
(e) Option to Provide Designated Child Care Units in the Ground Floor on Commercial Street Frontages. On street frontages where ground floor commercial uses are required pursuant to Section 145.4 of this Code, a Designated Child Care Unit may be considered an Active Commercial Use if the unit meets all of the following requirements:
(1) The Dwelling Unit is a Rental Unit, as defined in Planning Code Section 401;
(2) The Designated Child Care Unit shall have two or more bedrooms and shall be 1,000 square feet or more;
(3) If a Designated Child Care Unit is being added to an existing building in the ground floor commercial space, and it is not physically possible to provide two code-complying bedrooms, such Designated Child Care Unit shall have one bedroom and shall be 1,000 square feet or more;
(4) No more than one Designated Child Care Unit shall be permitted in each building;
(5) The Dwelling Unit is eligible to be designated a below market rate unit affordable to moderate-income households, which shall have an affordable rent set at 80% of Area Median Income or less, with households earning from 65% to 90% of Area Median Income eligible to apply for such dwelling unit, but the Dwelling Unit may not be an On-site or Off-site Affordable Housing Unit, as required by Planning Code Sections 415 et seq. establishing the Inclusionary Affordable Housing Program;
(6) A State-licensed Small Family Child Care Home is provided in such Dwelling Unit and complies with the applicable requirements set forth in Planning Code Section 414A.6(d) for a Designated Child Care Unit;
(7) If a Designated Child Care Unit no longer provides a State-licensed Small Family Child Care Home in the unit, the owner of the project in which the unit is located shall provide notice to the Mayor’s Office of Housing and Community Development (MOHCD) and the Office of Early Care and Education within 30 days. All tenants in the Unit shall be required to vacate the unit within 180 days. The owner of the project in which the Designated Child Care Unit is located shall allow MOHCD, as assisted by the Office of Early Care and Education, to attempt to fill that unit with a Tenant eligible under the Inclusionary Affordable Housing Program who is also an eligible operator of a Small Family Child Care Home. If, in the determination of the Office of Early Care and Education, the tenant fraudulently did not intend to operate a State-licensed Small Family Child Care Home in the unit within nine months of occupying the unit, all tenants in such unit shall be required to vacate the unit within 60 days. MOHCD shall use its best efforts to fill such vacated unit with a Tenant registered with the Office of Early Care and Education and licensed to provide Small Family Child Care Home who also meets the Income restrictions for a Designated Unit; and
(8) The Designated Child Care Unit shall provide a State-licensed Small Family Child Care Home in the Designated Child Care Unit for a minimum of 15 years. In the event one or more tenants has provided such child care in the Designated Child Care Unit for 15 years, the existing tenant who has provided a State-licensed Small Family Child Care Home in the Designated Child Care Unit shall not thereafter be obligated to vacate the unit if such tenant ceases to provide a State-licensed Small Family Child Care Home in the Designated Child Care Unit, and shall be permitted to remain in the Unit until such tenant elects to vacate or fails to comply with the laws applicable to occupancy of the Unit. Upon such vacation, the Unit shall not be designated a below market rate unit, and the owner may rent the Unit at market rate.
AMENDMENT HISTORY
Divisions (a), (a)(3)-(5), and (b) amended; table amended and designated as Table 414A.6A; division (c) amended and redesignated as divisions (c), (c)(1)(C), and (d); new divisions (c)(1)- (c)(1)(B) and (c)(2)(A)-(B) added; former divisions (c)(1)-(3) amended and redesignated as (d)(1)- (d)(3); divisions (e)-(e)(8) added; Ord. 7-19, Eff. 2/25/2019.
SEC. 414A.7. USE OF FEES.
SEC. 414A.8. NOTICE OF AVAILABLE DESIGNATED UNITS.
Whenever a Designated Unit becomes available for rent, within 5 business days, the owner of the Unit shall notify governmental and nonprofit entities that can assist in publicizing the availability of the Unit, including, at a minimum, the following entities: the Office of Early Care and Education, the Family Child Care Association of San Francisco, the Children's Council, and Wu Yee Children's Services.
[INCLUSIONARY AFFORDABLE HOUSING PROGRAM]
SEC. 415.1. FINDINGS.
Affordable Housing: The findings in former Planning Code Section 315.2 of the Inclusionary Affordable Housing Ordinance are hereby readopted and updated as follows:
(a) Affordable housing is a paramount statewide concern. In 1980, the California Legislature declared in Government Code Section 65580:
(1) The availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every California family is a priority of the highest order.
(2) The early attainment of this goal requires the cooperative participation of government and the private sector in an effort to expand housing opportunities and accommodate the housing needs of Californians of all economic levels.
(3) The provision of housing affordable to low-and moderate-income households requires the cooperation of all levels of government.
(4) Local and state governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community.
(b) The Legislature further stated in Government Code Section 65581 that:
It is the intent of the Legislature in enacting this article:
(1) To assure that counties and cities recognize their responsibilities in contributing to the attainment of the state housing goal.
(2) To assure that counties and cities will prepare and implement housing elements which will move toward attainment of the state housing goal.
(3) To recognize that each locality is best capable of determining what efforts are required to contribute to the attainment of the state housing goal.
(c) The California Legislature requires each local government agency to develop a comprehensive long-term general plan establishing policies for future development. As specified in the Government Code (at Sections 65300, 65302(c), and 65583(c)), the plan must (1) "encourage the development of a variety of types of housing for all income levels, including multifamily rental housing"; (2) "[a]ssist in the development of adequate housing to meet the needs of low- and moderate-income households"; and (3) "conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public or private action."
(d) The Board of Supervisors adopted San Francisco's General Plan Housing Element in March 2015, and the California Housing and Community Development Department certified it on May 29, 2015. The Housing Element states that San Francisco's share of the regional housing need for years 2015 through 2022 includes 10,873 housing units for very-low and low-income households and 5,460 units for moderate/middle-income households, and a total production of 28,870 net new units, with almost 60% to be affordable for very-low, low- and moderate/middle-income San Franciscans.
(Added as Sec. 315.2 by Ord. 37-02, File No. 001262, App. 4/5/2002; amended by Ord. 213-06, File No. 051668, App. 8/2/2006; Ord. 219-06, File No. 051685, App. 8/10/2006; Ord. 101-07, File No. 060529, App. 5/4/2007; Ord. 198-07, File No. 070444, App. 8/10/2007; redesignated and amended by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 76-16
, File No. 160255, App. 5/13/2016, Eff. 6/12/2016)
AMENDMENT HISTORY
Former division A.1. redesignated as divisions (a)-(c); new division (d) added; former divisions A.2.-A.14. deleted; Ord. 76-16
, Eff. 6/12/2016.
SEC. 415.4. IMPOSITION OF REQUIREMENTS.
(a) Determination of Requirements. The Department shall determine the applicability of Section 415.1
et seq. to any development project requiring a first construction document and, if Section 415.1 is applicable, shall impose any such requirements as a condition of approval for issuance of the first construction document. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Notice to Development Fee Collection Unit of Requirements. After the Department has made its final determination regarding the application of the affordable housing requirements to a development project pursuant to Section 415.1 et seq., it shall immediately notify the Development Fee Collection Unit at DBI in addition to the other information required by Section 402(b) of this Article.
(c) Payment of Affordable Housing Fee or Project Sponsor’s Selection of Alternative. Prior to issuance of first construction document for a development project subject to the requirements of Section 415.1 et seq., the sponsor of the development project shall pay the Affordable Housing Fee set forth in Section 415.5 or shall select one of the options listed in Section 415.5(f).
(d) Department Notice to Development Fee Collection Unit of Sponsor's Choice. After the sponsor has filled out a Declaration of Intent and, if necessary, an Affidavit of Eligibility for an Alternative to the Affordable Housing Fee indicating how it will fulfill the affordable housing requirements of Section 415.1 et seq., the Department shall immediately notify the Development Fee Collection Unit at DBI of the sponsor's choice.
(e) Development Fee Collection Unit Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the first Certificate of Occupancy for any development project subject to Section 415.1 et seq. that has elected to fulfill all or part of its requirement with an option other than payment of the Affordable Housing Fee. If the Department notifies the Unit at such time that the sponsor has not satisfied the requirements, the Director of DBI shall deny and all Certificates of Occupancy until the subject project is brought into compliance with the requirements of Section 415.1 et seq.
(f) Process for Revisions of Determination of Program Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Section 415.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) shall be followed.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 26-18, File No. 171193, App. 2/23/2018, Eff. 3/26/2018)
AMENDMENT HISTORY
Division (c) amended; Ord. 26-18, Eff. 3/26/2018.
SEC. 415.7-1. SMALL SITES AFFORDABLE HOUSING ALTERNATIVE.
A project sponsor of a principal project comprised of 24 or fewer residential units may elect under Section 415.5(g) to meet its Inclusionary Affordable Housing requirement by designating its payment of the Affordable Housing Fee due under Section 415.5 for a Small Sites program that MOHCD shall establish for this purpose. Affordable Housing Fees designated for this program shall not be considered part of the designated funds specified by Section 415.5(f). MOHCD shall expend the program funds from a principal project on a Small Sites Project that meets the requirements set forth in Section 415.5(f)(2)(B) and that is within the same neighborhood as the principal project. The neighborhood of the principal project shall be determined by the Planning Department’s Neighborhood Groups Map. If MOHCD is unable to identify and apply the fee to a qualifying Small Sites Project within the same neighborhood as the principal project within two years of the payment of the fee, such fee shall be released into the Affordable Housing Fund to fund other qualifying Small Sites Projects in San Francisco.
(Added by Ord. 7-17, File No. 161157, App. 1/20/2017, Eff. 2/19/2017)
SEC. 415.8. DURATION AND MONITORING OF AFFORDABILITY.
(a) For any units permitted under the Program:
(2) Units shall not remain vacant for a period exceeding 60 days without the written consent of MOHCD.
(4) The income levels specified in the Notice of Special Restrictions and/or conditions of approval for the project shall be the required income percentages for the life of the project. Notwithstanding the foregoing sentence, if approved by MOHCD and as provided in the Procedures Manual, an exception to the required income percentage may be made in the following cases:
(A) a rental unit that converts to an Owned Unit with Qualifying Income up to a maximum of 150% of AMI and a sales price established pursuant to Section 415.8(b)(5);
(B) where there is an existing tenant who has undergone re-certification as defined in the Procedures Manual, the existing tenant’s household income may increase up to a maximum of 200% of AMI;
(C) new Owned Units where the project sponsor has used good faith efforts to secure a contract with a qualified buyer but is unable to secure such a contract in a timely manner from the initiation of marketing;
(D) resale Owned Units where the owner has used good faith efforts to secure a contract with a qualified buyer but is unable to secure a buyer contract at a maximum resale price specified by MOHCD in a timely manner;
(E) the Qualifying Income level for new or resale Owned Units may be set at 20% above the income level stated in the Notice of Special Restrictions or conditions of approval; or
(F) resale Owned Units where the owner has requested an adjustment to the maximum income limit stated in the existing Notice of Special Restrictions or other document establishing affordability requirements for the unit and/or has requested an increase to the Qualifying Income level, pursuant to subsection (b)(9).
(5) The Commission or the Department shall require all housing projects subject to Section 415.1 et seq. to record a Notice of Special Restrictions in the official records of the City and County of San Francisco. The Notice of Special Restrictions must incorporate the affordability restrictions. All projects described in Section 415.3(a) must incorporate all of the requirements of this Section 415.8
into the Notice for Special Restrictions, including any provisions required to be in the conditions of approval for housing projects described in Section 415.3(a). These Section 415.3(a) projects which are housing projects that go through the conditional use or planned unit development process shall have conditions of approval. The conditions of approval shall specify that project applicants shall adhere to the marketing, monitoring, and enforcement procedures outlined in the Procedures Manual, as amended from time to time, in effect at the time of project approval. The Commission shall file the Procedures Manual in the case file for each project requiring inclusionary housing pursuant to this Program. The Procedures Manual will be referenced in the Notice of Special Restrictions for each project.
(b) For any units permitted to be Owned Units under the Program, the MOHCD shall:
(1) Establish and implement a process for reselling an affordable unit in the Procedures Manual.
(2) Provide that owners may not change title on the unit without review and approval by MOHCD and according to guidelines published in the Procedures Manual, as amended from time to time.
(3) Provide that owners must comply with refinancing procedures and limitations as published in the Procedures Manual, as amended from time to time.
(4) Provide that, in order to retain all units restricted as affordable under this Program within the City’s affordable housing stock, the specific procedures for passing an affordable unit through inheritance are contained in the Procedures Manual. All transfers through inheritance must be reviewed and approved by MOHCD and, in all cases, the heir must acknowledge and agree to the provisions of the Program. The following households may inherit the ability to occupy a unit restricted under this Program: (i) a spouse or registered domestic partner, regardless of income; or (ii) a child of the owner if the child is a qualifying household for the unit. If the heir qualifies under one of these categories, the heir must occupy the unit or the heir must market and sell the unit at the restricted price through a public lottery process and retain the proceeds from the sale. If the heir does not qualify to occupy the unit, the heir must market and sell the unit at the restricted price to a qualified buyer through a public lottery process. The heir would retain the proceeds of such sale.
(5) Require that affordable Rental Units permitted by the Commission to be converted to Owned Units satisfy the requirements of the Procedures Manual, as amended from time to time, including that the units shall be sold at restricted sales prices to households meeting the income qualifications specified in the Notice of Special Restrictions or conditions of approval, with a right of first refusal for the occupant(s) of such units at the time of conversion. If the current tenant qualifies for and purchases the unit, the unit shall be sold at a sales price corresponding to the affordability level required for the unit as a Rental Unit as specified in the Notice of Special Restrictions or conditions of approval, with a maximum allowable Qualifying Income level up to 150% of AMI. If the unit is sold to a buyer who is not a current tenant, the sales price shall correspond to the affordability level required for the unit as an Owned Unit as specified in the Notice of Special Restrictions or conditions of approval. Upon conversion to ownership, the units are subject to the resale and other restrictions of this Program for the life of the project, as defined in the Notice of Special Restrictions or conditions of approval for the Project.
(6) For Owned Units approved pursuant to Sections 415.6 or 415.7, the Notice of Special Restrictions or conditions of approval will include provisions restricting resale prices and purchaser income levels according to the formula specified in the Procedures Manual, as amended from time to time. All amenities and parking spaces that were purchased with the initial sale of the Owned Unit must be sold with the Owned Unit upon resale and shall be included in the resale price. In the event subordination of the Affordability Conditions contained in a recorded Notice of Special Restrictions may be necessary to ensure the project applicant’s receipt of adequate construction and/or permanent financing for the project, or to enable first-time home buyers to qualify for mortgages, the project applicant may follow the procedures for subordination of affordability restrictions as described in the Principal Project’s conditions of approval or in the Procedures Manual. A release following foreclosure or other transfer in lieu of foreclosure may be authorized if required as a condition to financing pursuant to the procedures set forth in the Procedures Manual.
(7) Purchasers of Affordable Units shall secure the obligations contained in the Notice of Special Restrictions or conditions of approval by executing and delivering to the City a promissory note secured by a deed of trust encumbering the applicable affordable unit as described in the Procedures Manual or by an alternative means if so provided for in the Procedures Manual, as amended from time to time.
(8) Procedures for Units Unable to Resell. The Board of Supervisors finds that certain requirements of this Program and the Procedures Manual may create hardship for owners of Affordable Units restricted under this Program. However, the Board also recognizes that the requirements of this Program are important to preserve the long-term affordability of units restricted under the Program. In order to allow some relief for owners of Affordable Units during a time of economic downturn, but to provide the maximum protection for the long-term affordability of the units, the Board directs MOHCD to analyze the following issues and, if it deems appropriate, to propose amendments to the Procedures Manual to address the issues:
(A) Waiver of Resale Requirements and Maximum Qualifying Income Level for New Buyers of Resale BMR Units. The Board recognizes that the risk to low- and moderate-income homeowners during times of economic downturn can increase the risk of default and foreclosure of units restricted under this Program. The Board directs MOHCD to study ways to reduce such risks in the below market rate unit context and, if it deems appropriate, to make recommendations to the Planning Commission to amend the Procedures Manual to allow MOHCD discretion, in certain limited circumstances, to waive requirements for owners of Affordable Units who have used good faith efforts to secure a contract with a qualified buyer but are unable to resell their unit in a timely manner. Such amendments to the Procedures Manual may include, but are not limited to, authorizing MOHCD to make one or more allowances for owners of Affordable Units unable to resell, such as: (i) a one-time waiver of the first-time homebuyer rule for the purchasing household; (ii) a one-time waiver of qualifying household size requirements for the purchasing household; (iii) a one-time waiver of owner occupancy rules to allow a temporary rental; (iv) a one-time modification of the asset test for the new buyer household; and (v) allowing MOHCD discretion to increase the Qualifying Income level for the unit by up to 20% above the maximum income limit currently allowed by the Use Restrictions for the unit but at no time higher than 150% of AMI. MOHCD and the Commission shall set forth criteria for granting such allowances such as establishing a minimum time that the units must have been advertised by MOHCD without selling; establishing criteria related to unusual economic or personal circumstances of the owner; providing a maximum percentage for the increase above the maximum income limit currently allowed; providing that the increase may only be granted on a one-time basis; and requiring the owner to clearly establish that the BMR unit is being resold at the maximum resale price specified in the Procedures Manual, as amended from time to time.
(B) Waiver of Maximum Qualifying Income Level for New Buyers of Initial Sale BMR Units. The Board of Supervisors recognizes that the current Program provides that the income of a new buyer of a below market rate household cannot exceed the maximum income stated in the Planning Approval or Notice of Special Restrictions for the BMR Unit. Due to less desirable developments or geographic areas, a project sponsor is sometimes unable to find a buyer for a BMR Unit within the maximum income stated in the Planning Approval or Notice of Special Restrictions for the unit. This situation makes it difficult, if not impossible, for certain current owners of below market rate units to resell their units. In order to minimize this situation, the Board of Supervisors directs MOHCD to study ways to address this issue and, if it deems appropriate, to make recommendations to the Planning Commission to amend the Procedures Manual to allow MOHCD to assist project sponsors who have used good faith efforts as determined by MOHCD to secure a contract with a qualified buyer but who are unable to secure such a contract in a timely manner from the initiation of marketing. Such amendments may include allowing MOHCD discretion to increase the Qualifying Income level for the unit by up to 20% above the maximum income limit currently allowed by the Use Restrictions for the unit but at no time higher than 150% of AMI. MOHCD and the Planning Commission shall establish limits to this or a similar proposal such as: providing a maximum percentage for the increase above the maximum income limit currently allowed; requiring that a certain period without securing a buyer would pass before such an allowance would be made; and providing that the increase may only be granted on a one-time basis.
(9) Adjustment of Pricing and Income Limits for Owned Units Purchased at a Price Above the Affordable Price Determined at the Time of Resale.
(A) Findings and Purposes. The Board of Supervisors finds that the requirements of this Program and the Procedures Manual may create financial hardship for certain Owners of Affordable Units who could suffer a financial loss if said Owners sold their units at a price in compliance with the existing Notice of Special Restrictions or other affordability restrictions for the unit. However, the Board also recognizes that the requirements of this Program are important to preserve the long-term affordability of units restricted under the Program. To provide flexibility while protecting the long-term affordability of the Affordable Units and viability of the Program, this subsection (b)(9) provides options to allow some relief for Owners of Affordable Units that are re-selling at a time when the Affordable Price would be lower than the price at which they originally purchased their Affordable Unit.
(B) Authorization to Reset Pricing and Income Limits. The Board authorizes MOHCD to adjust the Affordable Price at the time of resale and to establish the corresponding maximum income limit or income range for eligible Owned Units, as further specified and limited in this subsection (b)(9). This authorization and adjustment procedure shall be available only once per eligible Owned Unit and shall result in an Affordable Price that is based on a permanent increase to the restrictions on Affordable Price and maximum income limit for the Owned Unit. For the resale and any subsequent resale of the Owned Unit, the Maximum Purchase Price shall be determined by MOHCD based on the new, increased maximum percentage of AMI established pursuant to this subsection (b)(9).
(C) Eligibility. An Owned Unit is eligible for an increase in the Affordable Price and corresponding maximum income limit or income range for the Owned Unit if: 1) the Owner purchased the unit at a price above the Affordable Price at the time of resale, which Affordable Price shall be determined by MOHCD based on the existing Notice of Special Restrictions or other document establishing affordability requirements for the unit at the time MOHCD processes the Owner’s resale request; and 2) the Owner submits a resale request for the unit to MOHCD within three years from the effective date of the ordinance in Board File No. 240802, enacting this subsection (b)(9). The Owner is not required to attempt to sell the unit prior to the adjustment described in this subsection (b)(9) to qualify for said adjustment.
(D) Maximum Allowable Adjustment. For the resale of an Owned Unit eligible for an adjustment under this subsection (b)(9), MOHCD may establish an adjusted Affordable Price up to the original purchase price paid by the current Owner. MOHCD may increase the maximum income limit or income range for the unit to reflect the adjusted Affordable Price, up to a maximum of 130% AMI. In addition, once per eligible Owned Unit, MOHCD may increase the maximum Qualifying Income level for the unit by up to 20% above the maximum income limit or income range in the new Notice of Special Restrictions or other document establishing affordability requirements for the unit, provided that the increased maximum Qualifying Income level does not exceed 150% of AMI. The ultimate resale price may be lower or higher than the adjusted Affordable Price. Nothing in this subsection (b)(9) ensures or entitles an Owner to a resale price equal to the adjusted Affordable Price when reselling their Owned Unit.
(E) Procedures.
(i) MOHCD shall propose policies and procedures for implementing price and AMI level adjustments consistent with this subsection (b)(9) to the Planning Commission for inclusion in the Procedures Manual.
(ii) MOHCD may establish an adjusted Affordable Price and increase the maximum AMI level consistent with this subsection (b)(9) for the purposes of processing the resale, including marketing the Affordable Unit. If approved pursuant to subsections (b)(9)(E)(iii) through (vi), the increased maximum AMI level shall be established for all other purposes by the recording of a new Notice of Special Restrictions upon closing the resale of the Owned Unit that reflects the increased AMI level. As a condition of MOHCD’s approval of the adjustments under this subsection (b)(9), the Owner shall execute and authorize the recordation of the new Notice of Special Restrictions in senior lien priority upon closing the resale of the Owned Unit.
(iii) For units in principal projects that required Planning Commission approval, the Planning Commission, in consultation with MOHCD, may modify any original conditions of approval for the principal project related to the maximum price or income levels consistent with this subsection (b)(9), including, but not limited to, modification to the required terms of a Notice of Special Restrictions recorded or to be recorded against the project or the Owned Unit. If the Planning Commission has delegated its authority to the Planning Department to review and approve requests for pricing and AMI level adjustments, such adjustments shall be reviewed and considered for approval by the Director of the Planning Department, and the Planning Commission shall not hold a public hearing for discretionary review.
(iv) For units in principal projects that required Planning Department approval but not Planning Commission approval, the Planning Department, in consultation with MOHCD, may modify any original conditions of approval for the principal project related to the maximum price or income levels including but not limited to modification to the required terms of a Notice of Special Restrictions recorded or to be recorded against the project or the Owned Unit.
(v) For units in principal projects that did not require Planning Commission or Planning Department approval, the Planning Department, in consultation with MOHCD, may modify the required terms of a Notice of Special Restrictions recorded or to be recorded against the project or the Owned Unit.
(vi) Any other City approval required prior to modifying the terms of a Notice of Special Restrictions, such as amending a development agreement, shall be obtained.
(F) Reporting. MOHCD shall provide a report to the Inclusionary Housing Technical Advisory Committee, Planning Commission, and Board of Supervisors or a committee thereof after 10 adjustments are approved under this subsection (b)(9), and after every tenth adjustment approved thereafter. In addition, MOHCD shall provide a report to the Inclusionary Housing Technical Advisory Committee, Planning Commission, and Board of Supervisors or a committee thereof within twelve months from the effective date of the ordinance in Board File No. 240802 enacting this subsection (b)(9), and every twelve months thereafter. The Board of Supervisors or a committee thereof shall hold a public hearing on the first annual report; accordingly, that report must be accompanied by a draft resolution for the Board to accept the report. Each report provided pursuant to this subsection (F) shall include at least the following information for each approved adjustment:
(i) The location of the Affordable Unit;
(ii) The date the adjustment was approved; and
(iii) Pricing and AMI level information before and after the adjustment.
(G) Expiration of this Subsection and Related Subsection. This subsection (b)(9), and the related subsection (a)(4)(F), shall expire by operation of law four years from the effective date of the ordinance in Board File No. 240802 enacting those two subsections. Upon expiration of those subsections, the City Attorney is authorized to cause their removal from the Planning Code, which removal may include as appropriate nonsubstantive modifications in subsection lettering, numbering, punctuation, and language.
(c) For any units permitted to be Rental Units under the Program, MOHCD shall establish:
(1) restrictions on lease changes and propose such restrictions to the Commission for inclusion in the Procedures Manual.
(2) additional eligibility criteria for sub-leasing and propose such restrictions to the Commission for inclusion in the Procedures Manual.
(3) criteria for continued eligibility for occupied rental units and propose such restrictions to the Commission for inclusion in the Procedures Manual.
(4) criteria for homeownership status and propose such restrictions to the Commission for inclusion in the Procedures Manual.
(5) criteria for granting affordable rental households the right of first refusal in purchasing an Affordable Unit that is converted from a Rental Unit to an Owned Unit and propose such restric- tions to the Commission for inclusion in the Procedures Manual.
(6) that at no time shall an annual increase exceed the actual allowable increase for that year. In cases where the rent has decreased, the tenant’s rent must be decreased. In cases where the annual adjustments have not been applied year to year, the Project Owner may not take advantage of any increases that were not applied until the Unit is vacant and re-rented.
(Added as Sec. 315.7 by Ord. 37-02, File No. 001262, App. 4/5/2002; amended by Ord. 101-07, File No. 060529, App. 5/4/2007; Ord. 198-07, File No. 070444, App. 8/10/2007; redesignated and amended by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 62-13
, File No. 121162, App. 4/10/2013, Eff. 5/10/2013; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021; Ord. 258-24, File No. 240802, App. 11/14/2024, Eff. 12/15/2024)
AMENDMENT HISTORY
Division (a)(4) amended and divisions (a)(4)(A) through (E) added; division (b)(5) amended; division (b)(8) amended and divided into divisions (b)(8) and (b)(8)(A)1
; divisions (b)(8)(B) and (c)(6) added; Ord. 62-13
, Eff. 5/10/2013. Divisions (a)(1)- (a)(4)(A), (a)(4)(C)-(E), (b)-(b)(8)(B), (c), and (c)(5) amended; Ord. 210-21
, Eff. 12/20/2021. Divisions (a)(1), (a)(4)-(a)(4)(B), (a)(4)(D)-(E), (a)(5), (b)(1)-(6), (b)(8)-(b)(8)(B) amended; divisions (a)(4)(F) and (b)(9)-(b)(9)(G) added; Ord. 258-24
, Eff. 12/15/2024.
SEC. 415.9. ENFORCEMENT PROVISIONS AND MONITORING OF PROGRAM.
(a) A first construction document or first Certificate of Occupancy, whichever applies, shall not be issued by the Director of DBI to any unit in the Principal Project until all of the affordable housing requirements of Sections 415.1 et seq. are satisfied.
(b) If, after issuance of the first Certificate of Occupancy, the Commission or Department determines that a project sponsor has failed to comply with any requirement in Section 415.1 et seq. or any reporting requirements detailed in the Procedures Manual, or has violated the Notice of Special Restrictions, the Commission, Department, or DBI may, until the violation is cured, (1) revoke the Certificate of Occupancy for the Principal Project or required Affordable Units, (2) impose a penalty on the project pursuant to Section 176(c) of this Code, and/or (3) the Zoning Administrator or MOHCD may enforce the provisions of Section 415.1 et seq. through any means provided for in Section 176 of this Code.
(c) The Department shall notify MOHCD of any housing project subject to the requirements of Section 415.1 et seq., including the name of the project sponsor and the number and location of the Affordable Units, within 30 days of the Department’s approval of a building or site permit for the project. MOHCD shall provide all project sponsors with information concerning the City’s first time homebuyer assistance programs and any other related programs MOHCD shall deem relevant to the Inclusionary Affordable Housing Program.
(d) The Department shall, as part of the annual Housing Inventory, report to the Board of Supervisors on the results of Section 415.1 et seq. including, but not limited to, a report on the following items:
(1) The number of, location of, and project applicant for, housing projects which came before the Commission for a Conditional Use Authorization or Planned Unit Development, and the number of, location of, and project applicant for, housing projects which were subject to the requirements of Section 415.1 et seq.;
(2) The number of, location of, and project sponsor for, housing projects which applied for a waiver, adjustment, or reduction from the requirements of Section 415.1 et seq. pursuant to Section 406 of this Article, and the number of, location of, and project sponsor for, housing projects which were granted such a waiver, adjustment, or reduction and, if a reduction, to what percentage; and
(3) The number of, location of, and project sponsor for, every housing project to which Section 415.1 et seq. applied and the number of market rate units and the number of affordable on- and off-site units provided, including the location of all of the affordable units.
(e) A study is authorized to be undertaken under the direction of MOHCD approximately every five years to update the requirements of Section 415.1 et seq. MOHCD shall make recommendations to the Board of Supervisors and the Commission regarding any legislative changes. MOHCD shall specifically evaluate the different inclusionary housing requirements for developments of over 120 feet approximately five years from the enactment of the requirement or as deemed appropriate by MOHCD. MOHCD shall coordinate this report with the five-year evaluation by the Director of Planning required by Section 410 of this Article.
(f) Annual or Bi-annual Monitoring.
(1) MOHCD shall monitor and require occupancy certification for Owned Units and Rental Units on an annual or bi-annual basis, as outlined in the Procedures Manual.
(2) MOHCD may require the owner of a Rental Unit, the owner’s designated representative, or the tenant in an affordable unit to verify the income levels of the tenant on an annual or bi-annual basis, as outlined in the Procedures Manual.
(Added as Sec. 315.8 by Ord. 37-02, File No. 001262, App. 4/5/2002; amended by Ord. 219-06, File No. 051685, App. 8/10/2006; Ord. 101-07, File No. 060529, App. 5/4/2007; Ord. 198-07, File No. 070444, App. 8/10/2007; redesignated and amended by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 62-13
, File No. 121162, App. 4/10/2013, Eff. 5/10/2013; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021; Ord. 155-22, File No. 220262, App. 7/21/2022, Eff. 8/21/2022)
AMENDMENT HISTORY
SEC. 415.10. REPORTING TO BOARD OF SUPERVISORS.
(a) Findings.
San Francisco continues to experience a housing crisis that requires a broad spectrum of land use and financing tools to address. The 2022 Housing Element Update of the City’s General Plan calls for 40% of all new housing production to be affordable for lower income
households below 80% of area median income and 17% of new housing affordable to be built for moderate/middle income households up to 120% of area median income. San Francisco’s inclusionary housing program, which requires housing developers to provide affordable units as part of their projects, is a critical component of the City’s programs to expand affordable housing options. The Inclusionary Housing program is one of the City’s tools for increasing affordable housing dedicated to lower income San Franciscans without using public subsidies, and in particular it is a useful tool for creating any affordable housing to meet the growing need of moderate/middle income households.
The City adopted an Inclusionary Housing ordinance in 2002 that set requirements on market rate development to include affordable units at 12% of the total for the first time. The inclusionary program has successfully resulted in more than 3,330 units of below-market, permanently affordable housing since its adoption. The City prepared a Nexus Study in 2007 in support of the program, which was updated in 2016. The reports demonstrated the necessary affordable housing in order to mitigate the impacts of market rate housing1 The City’s inclusionary housing requirements, which have been set at various levels since 2002 in response to changing economic conditions, are codified in Section 415 of the Planning Code.
The purpose of this Section 415.10 is to provide for the ongoing study of how to set inclusionary housing obligations in San Francisco at the maximum economically feasible amount in market rate housing development to create housing for low and moderate/middle income households, at the income levels set forth in Section 415.10(d), and with guidance from the City’s Nexus Study, which shall be periodically updated.
(b) Triennial Economic Feasibility Analysis. With the support of independent con- sultants as deemed appropriate by the Controller and with advice on setting qualifications and criteria for consultant selection from the Inclu- sionary Housing Technical Advisory Committee established in Administrative Code Chapter 5, Article XXIX, the Controller, in consultation with relevant City Departments and the Inclusionary Housing Technical Advisory Committee, shall conduct a feasibility study of the City’s inclusion- ary affordable housing obligations set forth in Planning Code Section 415 et seq., including but not limited to the affordable housing fee and On- site and Off-site Alternatives, and shall submit a report to the Board of Supervisors by July 31, 2016 and by October 31 for subsequent years. Thereafter, the Controller, in consultation with the Department and the Inclusionary Housing Technical Advisory Committee, shall repeat this process at least every 36 months, or more fre- quently as deemed necessary by the Controller in response to a significant shift in economic or market conditions.
(c) Elements of the Economic Feasibility Analysis. The economic feasibility analysis required by subsection (b) of this Section 415.10 shall include sensitivity analyses of key economic parameters that can vary significantly over time, such as, but not limited to: interest rates; capitalization rates; equity return rates; land prices; construction costs; project scale, available state and federal housing finance programs including Low Income Housing Tax Credits readily available for market rate housing; tax-exempt bond financing; Federal Housing Administration and U.S. Department of Housing and Urban Development mortgage insurance; available City or local housing finance programs, such as Enhanced Infrastructure District (EIFD) and tax increments; zoning changes that increase or decrease development potential; variable City exactions, including community benefit fees, capacity charges, community facilities districts; the value of state density bonus, concessions and incentives under California Government Code Section 65915 and any other state law that confers value to development and which project sponsors may attempt to avail themselves of and public-private partnership development agreements where applicable and other factors as deemed reasonably relevant.
(d) Report to Board of Supervisors. The Board of Supervisors may review the feasibility analyses, as well as the periodic updates to the City’s Nexus Study evaluating the necessary af- fordable housing in order to mitigate the impacts of market rate housing. The Board of Supervisors will review the feasibility analyses within three months of completion and may consider legislative amendments to the City’s Inclusionary Housing in-lieu fees, On-site or Off-site Alternatives, and in so doing will seek consultation from the Planning Commission, adjusting levels of inclusionary or affordable housing obligations and income levels up to maximums as defined in Section 415.2, based on the feasibility analyses, with the objective of maximizing affordable Inclusionary Housing in market rate housing production, and with guidance from the City’s Nexus Study. Any adjustment in income levels shall be adjusted commensurate with the percentage of units required so that the obligation for inclusionary housing is not reduced by any change in income levels. The Board of Supervisors may also utilize the Nexus Study in considering legislative amendments to the Inclusionary Housing requirements. Updates to the City’s Inclusionary Housing requirements shall address affordable housing fees, On-site affordable housing and Off-site affordable housing, as well as the provision of affordable housing available to low-income households at or below 55% of Area Median Income for Rental Units and up to 80% of Area Median Income for Owned Units, and moderate/middle-income households from 80% to 120% of Area Median Income.
(Added by Ord. 76-16
, File No. 160255, App. 5/13/2016, Eff. 6/12/2016; amended by Ord. 158-17, File No. 161351, App. 7/27/2017, Eff. 8/26/2017; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021; Ord. 187-23, File No. 230769, App. 9/14/2023, Eff. 10/15/2023, Oper. 11/1/2023; Ord. 201-23, File No. 230855, App. 10/12/2023, Eff. 11/12/2023, Oper. 11/1/2023)
AMENDMENT HISTORY
SEC. 415.11. SEVERABILITY.
If any subsection, sentence, clause, phrase, or word of Sections 415.1 et seq., or any application thereof to any person or circumstance, is held to be invalid or unconstitutional by a decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions or applications of the Section. The Board of Supervisors hereby declares that it would have passed Sections 415.1 et seq. and each and every subsection, sentence, clause, phrase, and word not declared invalid or unconstitutional without regard to whether any other portion of Sections 415.1 et seq. or application thereof would be subsequently declared invalid or unconstitutional.
(Added by Ord. 158-17, File No. 161351, App. 7/27/2017, Eff. 8/26/2017)
SEC. 415A.1. PURPOSE.
In order to encourage the construction of residential and live/work development projects that have been Finally Approved prior to November 1, 2023, but have not procured a First Construction Document, the City hereby establishes a temporary program to: (1) reduce certain inclusionary affordable housing fees and obligations; (2) extend the time such developments have to obtain a site permit after project approval; and (3) allow the modification of certain findings required by Planning Code Section 206.6 (“State Density Bonus Program: Individually Requested.”)
SEC. 415A.2. DEFINITIONS.
The following terms shall have the following definitions:
“Pipeline Project” means a residential or live/work project that (1) is subject to the Inclusionary Affordable Housing Ordinance, Planning Code Section 415.1 et seq., and (2) was Finally Approved prior to November 1, 2023, and (3) has not been issued a First Construction Document prior to November 1, 2023.
“Finally Approved” or “Final Approval” shall mean (1) approval of a project’s first Development Application, unless such approval is appealed; or (2) if a project only requires a building permit, planning approval of the first site or building permit, unless such permit is appealed; or (3) if the first Development Application or first site or building permit is appealed, then the final decision upholding the Development Application, or first site or building permit, on the appeal by the relevant City Board or Commission. “Finally Approved” or “Final Approval” shall not include any modification of the approval under Section 415A.5.
AMENDMENT HISTORY
Definition of “Finally Approved” amended; Ord. 68-24, Eff. 5/5/2024.
SEC 415A.3. APPLICATION.
This Section 415A shall apply to Pipeline Projects. This Section 415A shall not apply to (1) any mixed-use project that has entered into a development agreement executed pursuant to Chapter 56 of the Administrative Code or other similar binding agreement with the City on or before November 1, 2023, or (2) projects that have chosen to comply with affordable housing requirements by dedicating land, including but not limited to projects meeting the requirements set forth in Sections 419.5(a)(2) or 249.33(b)(16), or (3) projects that have paid development impact fees, including inclusionary impact fees, on or before November 1, 2023.
SEC. 415A.4. MODIFICATION OF PIPELINE PROJECTS.
On or before November 1, 2026, project sponsors of Pipeline Projects shall be entitled to request a modification under Section 415A.5 to that project’s conditions of approval, conditions on a project permit, notice of special restrictions, or other requirements related to: (1) specified requirements of the Inclusionary Affordable Housing Program, Planning Code Section 415.1 et seq., or other applicable inclusionary housing requirement; (2) conditions that require a project sponsor to obtain a site permit within a certain timeframe after project approval; and (3) findings required by Planning Code Section 206.6. Except as specifically set forth herein, or as modified under the procedure set forth in subsection 415A.5, Pipeline Projects shall comply with all other conditions of approval, conditions on a project permit, or notice of special restrictions and any applicable requirements of the Planning Code, including the requirements set forth in Sections 415.1 through 415.11. Project sponsors may request the following modifications:
(a) Affordable Housing Fee. If a project sponsor of a Pipeline Project elected to pay the inclusionary housing fee pursuant to Section 415.5, the project shall be entitled to a modification of the inclusionary housing requirements set forth in Section 415.5(b)(1)(A), 415.5(b)(1)(B) or 415.5(b)(1)(C), or if applicable 415.3(b)(2)(A) through (2)(C), as follows:
(1) For Ownership or Rental Housing Pipeline Projects consisting of 10 units or more, the applicable percentage shall be 16.4%.
(2) For any Pipeline Project consisting of 10 units or more located in an area with a specific affordable housing requirement set forth in a Special Use District, Area Plan, or in any other section of the Code, including 415.3(d), 419, or 428, the applicable percentage shall be 54.5% of the rate for Rental Housing Projects in the specific area, rounded to the nearest tenth of one percent. This reduction shall not apply to fees subject to the Temporary Fee Reduction Program set forth in Section 403.
(3) Notwithstanding subsection (2), in no case shall a Pipeline Project be entitled to a modification of an affordable housing fee that would result in an applicable percentage lower than 16.4%.
(b) On-site Affordable Housing Alternative. If a project sponsor of a Pipeline Project elected to provide on-site affordable units pursuant to Section 415.5(g), the development project shall be entitled to the following modifications to the on-site percentages in Sections 415.6(a)(1), 415.6(a)(2), or 415.6(a)(3), or if applicable, the on-site percentages set forth in Sections 415.3(b)(1)(A) to (b)(1)(D), or Section 206.3:
(1) For Pipeline Projects consisting of 10 units or more, but less than 25 units, the applicable percentage shall be 12%.
(2) For Pipeline Projects consisting of 25 units or more, the number of Affordable Units constructed on-site shall be 12% of all units constructed on the project site. Such projects shall ensure that a minimum of 8% of the units are affordable to low-income households, 2% are affordable to moderate-income households, and 2% are affordable to middle-income households.
(3) For any Pipeline Project consisting of 10 units or more that is located in an area with a specific affordable housing on-site requirement set forth in a Special Use District, Area Plan, or in any other section of the Code, including Sections 415.3(b)(1)(E), 415.3(d), 419, or 428, the applicable percentage shall be 54.5% of the rate for Rental Housing Projects in that specific area, rounded to the nearest tenth of one percent. For any Pipeline Project consisting of 10 units or more that was approved pursuant to Section 206.3, the applicable percentage shall be 54.5% of the rate in Section 206.3(f).
(4) Notwithstanding subsection (3), in no case shall a Pipeline Project be entitled to a modification of an on-site affordable housing obligation that would result in an applicable percentage lower than 12%.
(1) For Pipeline Projects consisting of 25 units or more, the applicable percentage shall be 16.4%. Such projects shall ensure that a minimum of 9.4% of the units are affordable to low-income households, 4% are affordable to moderate-income households, and 3% are affordable to middle-income households.
(2) For any Pipeline Project consisting of 25 units or more located in an area or Special Use District or in any other section of the Code, including Sections 415.3(d), 419, and 428 with a specific affordable housing requirement, the applicable percentage shall 54.5% of the rate for Rental Housing Projects in the specific area, rounded to the nearest tenth of one percent.
(3) Notwithstanding subsections (1) and (2), in no case shall a Pipeline Project be entitled to a modification of the off-site affordable housing alternative that would result in a percentage lower than 16.4%.
(d) Site Permit and First Construction Document Timing Requirements; Conditions of Approval.
(1) Notwithstanding any contrary provision in this Code, project sponsors of Pipeline Projects shall be entitled to a modification under Section 415A.5 of any conditions of approval or conditions on a project permit, requiring procurement of a site permit within a specified time, but in no event may such a deadline be extended past May 1, 2029.
(2) Notwithstanding any contrary provision in this Code, any modification under Section 415A.5 shall require as a condition that the project sponsor procure a First Construction Document on or before May 1, 2029. Failure to meet this condition shall invalidate the modification. Pipeline Projects that fail to procure a First Construction Document on or before May 1, 2029 shall be subject to the Inclusionary Affordable Housing requirements in effect on May 1, 2029 that are applicable to a project at the same location, size, and tenure.
(e) Density Bonus Projects: Affordability Levels, Concessions, Incentives and Waivers. If a Pipeline Project elected to proceed under the State Density Bonus law, Government Code section 65915 and/or Planning Code section 206.6. 1
(State Density Bonus Program: Individually Requested), the project sponsor may request the following modifications to a condition of approval or regulatory agreement pursuant to Section 415A.5, provided that the project continues to meet the requirements of the State Density Bonus law and/or Section 206.6:
(1) the number of units to be restricted as affordable units and the affordability levels of those units;
(2) the number and type of concessions, incentives, and waivers granted under 206.6(e).
AMENDMENT HISTORY
Section re-added; divisions (a)-(b), (b)(1)-(3), and (c)(1)-(3) amended as (a)-(b), (b)(2)-(4), and (c)(2)-(4); new divisions (b)(1) and (c)(1) added; Ord. 201-23, Eff. 11/12/2023.
CODIFICATION NOTE
SEC. 415A.5. PROCESS FOR MODIFICATION OF INCLUSIONARY AFFORDABLE HOUSING PROGRAM REQUIREMENTS.
The purpose of this Section 415A.5 is to provide for the efficient review and approval of requests for modifications to conditions of approval, conditions on a project permit, or notice of special restrictions, for projects eligible for such modifications under Section 415A. The Planning Commission shall be responsible for reviewing and approving such requests, or may delegate those functions to the Planning Director.
(a) Planning Commission Review. Notwithstanding Section 415A.5(b), any modification of the conditions of approval, conditions on a project permit, or notice of special restrictions consistent with Section 415A that would result in the significant modification of approved plans shall require review and approval by the Planning Commission under the modification process otherwise applicable to the project, including but not limited to Planning Code Sections 303(e), 309(j) or 329(f)(7))1
. All modifications pursuant to this subsection 415A.5(a), including any appeal of such modifications, shall be granted prior to November 1, 2026. A significant modification shall include, but is not limited to:
(1) a change in the number of Residential or Group Housing units by more than 20%, or a change of more than 10% in Gross Floor Area; or,
(2) a change of use from Dwelling Units to Group Housing.
(b) Administrative Modifications. Notwithstanding Section 415A.5(a), if the Planning Commission has delegated its authority to the Planning Department to review and approve requests for modifications consistent with Section 415A.5, the following modifications shall be reviewed and approved by the Director of the Planning Department, and the Planning Commission shall not hold a public hearing for discretionary review. Modifications under this subsection 415A.5(b) shall not be subject to review under Planning Code sections 303(e), 309(f), 309(j) or 329(f)(7). Any modifications pursuant to this Section 415A.5(b) must be granted prior to November 1, 2026. If so delegated, the Planning Director shall be authorized to modify:
(1) the applicable inclusionary fee required consistent with Section 415A.4(a).
(2) the applicable percentage of off-site units required consistent with Section 415A.4(b).
(3) the applicable percentage of on-site units required, consistent with Section 415A.4(c).
(4) for projects that elected to develop using the State Density Bonus Law, Government Code section 65915 or State Density Bonus Program: Individually Requested, under Planning Code section 206.6, the number of on-site Affordable Units, and the affordability levels of those units if such levels require modification for the project to continue to qualify for the same amount of density bonus previously approved, and findings required by Section 206.6(e) related to eligibility for a density bonus, concessions and incentives and/or waivers of development standards, consistent with Section 415A.4(e). Notwithstanding the previous sentence, modifications to a density bonus project that are significant as set forth in subsection (a), shall be reviewed by the Planning Commission.
(5) performance standards consistent with Section 415A.4(d), including the time of validity, expiration and renewal.
(c) Additional Conditions. Any modification to conditions of approval under this Section 415A.5 shall include a condition that a project must secure a First Construction Document on or before May 1, 2029 and if a project sponsor fails to secure a First Construction Document on or before May 1, 2029, the inclusionary requirements applicable to the project shall be those requirements in place at the time a First Construction Document is secured applicable to a project of the same size, location, and tenure.
CODIFICATION NOTE
SEC. 415A.6. SUNSET PROVISION.
This Section 415A shall expire by operation of law on May 1, 2029, unless extended by an ordinance effective on or before that date. Upon expiration of this Section 415A, the City Attorney shall cause the section to be removed from the Planning Code.
(Added by Ord. 187-23, File No. 230769, App. 9/14/2023, Eff. 10/15/2023, Oper. 11/1/2023; Ord. 201-23, File No. 230855, App. 10/12/2023, Eff. 11/12/2023, Oper. 11/1/2023)
SEC. 416.1. FINDINGS.
The Board of Supervisors hereby finds that:
A. The additional affordable housing requirements of this Section are supported by the Nexus Study performed by Keyser Marston and Associates referenced in Section 415.1(11) and found in Board File No. 081152. The Board of Supervisors has reviewed the study and staff analysis and report of the study and, on that basis, finds that the study supports the current inclusionary affordable housing requirements combined with the additional affordable housing fee. Specifically, the Board finds that the study: (1) identifies the purpose of the additional fee to mitigate impacts on the demand for affordable housing in the City; (2) identifies the use to which the additional fee is to be put as being to increase the City's affordable housing supply; and (3) establishes a reasonable relationship between the use of the additional fee for affordable housing and the need for affordable housing and the construction of new market rate housing. Moreover, the Board finds that the current inclusionary affordable requirements combined with the additional fee are less than the cost of mitigation and do not include the costs of remedying any existing deficiencies. The Board also finds that the study establishes that the current inclusionary affordable requirements and additional fee do not duplicate other City requirements or fees.
B. Furthermore, the Board finds that generally an account has been established, funds appropriated, and a construction schedule adopted for affordable housing projects funded through the Inclusionary Affordable Housing program. The Affordable Housing Fee will reimburse the City for expenditures on affordable housing that have already been made.
C. A major Market and Octavia Area Plan objective is to direct new market rate housing development to the area. That new market rate development will greatly outnumber both the number of units and potential new sites within the plan area for permanently affordable housing opportunities. The City and County of San Francisco has adopted a policy in its General Plan to meet the affordable housing needs of its general population and to require new housing development to produce sufficient affordable housing opportunities for all income groups, both of which will not be met by the projected housing development in the plan area. In addition, the "Draft Residential Nexus Analysis City and County of San Francisco" of December 2006 indicates that market rate housing itself generates additional lower income affordable housing needs for the workforce needed to serve the residents of the new market rate housing proposed for the plan area. In order to meet the demand created for affordable housing by the specific policies of the Plan and to be consistent with the policy of the City and County of San Francisco it is found that an additional affordable housing fee need be included on all market rate housing development in the Plan Area with priority for its use being given to the Plan area.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 312-10, File No. 100046, App. 12/23/2010)
SEC. 416.2. DEFINITIONS.
See Section 401 of this Article.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 312-10, File No. 100046, App. 12/23/2010)
SEC. 416.3. APPLICATION OF AFFORDABLE HOUSING FEE REQUIREMENT.
(a) Amount of Fee. Development projects that are subject to the Residential Inclusionary Affordable Housing Program shall pay an additional affordable housing fee per the fee schedule in Table 416.3A, except as provided under Section 406(k).
Van Ness and Market Special Use District | NCT | RTO | |
Net addition of residential use or change of use to residential use | $7.20/gross square foot | $3.60/gross square foot | $0.00/gross square foot |
Replacement of, or change of use from, non-residential to residential use | $3.80/gross square foot | $0.20/gross square foot | $0.00/gross square foot |
Replacement of, or change of use from, PDR to residential use | $5.50/gross square foot | $1.90/gross square foot | $0.00/gross square foot |
(b) Other Fee Provisions. This additional affordable housing fee shall be subject to the inflation adjustment provisions of Section 409 and the waiver and reduction provisions of Section 406. This additional affordable housing fee may not be met through the in-kind provision of community improvements or Community Facilities (Mello Roos) financing options of Sections 421.3(d) and (e). Pursuant to Section 249.33, in the Van Ness & Market Residential Special Use District this fee may be paid in any of the Alternatives set forth in Section 415.5(g).
(c) Exemption for Affordable Housing. A project applicant shall not pay a supplemental affordable housing fee for any square foot of space designated as a below market rate unit under Section 415.1 et seq., the Citywide Inclusionary Affordable Housing Program, or any other residential unit that is designated as an affordable housing unit under a Federal, State, or local restriction in a manner that maintains affordability for a term no less than 50 years.
(d) Timing of Fee Payments. The Market and Octavia Plan Area and Upper Market NCD Affordable Housing Fee shall be paid to DBI for deposit into the Citywide Affordable Housing Fund at the time required by Section 402(d).
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 25-11, File No. 101464, App. 2/24/2011; Ord. 55-11, File No. 101523, App. 3/23/2011; Ord. 56-13
, File No. 130062, App. 3/28/2013, Eff. 4/27/2013; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 83-17, File No. 170003, App. 3/24/2017, Eff. 4/23/2017; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020; Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021; Ord. 188-25, File No. 250680, App. 10/6/2025, Eff. 11/6/2025)
AMENDMENT HISTORY
Table 416.3A amended; Ord. 56-13
, Eff. 4/27/2013. Division (d) amended; Ord. 50-15
, Eff. 5/24/2015. Introductory paragraph amended; Ord. 83-17, Eff. 4/23/2017. Division (d) amended; Ord. 63-20, Eff. 5/25/2020. Division (b) amended; Ord. 126-20, Eff. 8/31/2020. Division (b) amended; Ord. 210-21, Eff. 12/20/2021. Introductory paragraph and division (a) amended; Ord. 188-25, Eff. 11/6/2025.
SEC. 416.4. IMPOSITION OF AFFORDABLE HOUSING FEE REQUIREMENT.
(a) Determination of Requirements. The Department shall determine the applicability of Section 416.1 et seq. to any development project requiring a first construction document and, if Section 416.1 et seq. is applicable, shall impose any such requirements as a condition of approval for issuance of the first construction document. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Department Notice to Development Fee Collection Unit of Fee Requirements. After the Department has made its final determination regarding the application of the affordable housing requirements to a development project pursuant to Section 416.1 et seq., it shall immediately notify the Development Fee Collection Unit at DBI of the applicable affordable housing fee amount in addition to the other information required by Section 402(b) of this Article.
(c) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Section 416.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) of this Article shall be followed.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 312-10, File No. 100046, App. 12/23/2010)
SEC. 416.5. USE OF FUNDS.
The additional affordable housing requirement specified in this Section 416.5 for the Market and Octavia Plan Area and the Upper Market NCT District shall be paid into the Citywide Affordable Housing Fund, established in Administrative Code Section 10.100-49, but the funds shall be separately accounted for. MOHCD shall expend the funds according to the following priorities: First, to increase the supply of housing Affordable to Qualifying Households in the Market and Octavia Plan Area and the Upper Market NCT District; second, to increase the supply of housing Affordable to Qualifying Households within one mile of the boundaries of the Plan Area and the Upper Market NCT District; third, to increase the supply of housing affordable to qualifying households in the City and County of San Francisco. The funds may also be used for monitoring and administrative expenses subject to the process described in Section 415.5(f)
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 25-11, File No. 101464, App. 2/24/2011; Ord. 143-15
, File No. 150568, App. 8/6/2015, Eff. 9/5/2015; Ord. 83-17, File No. 170003, App. 3/24/2017, Eff. 4/23/2017; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021)
AMENDMENT HISTORY
[AFFORDABLE HOUSING: EASTERN NEIGHBORHOODS AREA PLAN]
SEC. 417.1. FINDINGS.
The Board of Supervisors hereby finds that:
A. The fee provisions of this Section are equivalent to or less than the fees for developments of over 20 units previously adopted by the Board in Ordinance No. 051685 and 060529 and are also supported by the Nexus Study performed by Keyser Marston and Associates referenced in Section 415.1(11) and found in Board File No. 081152. The Board of Supervisors has reviewed the study and staff analysis prepared by the MOH dated July 24, 2008 in Board File No. 081152 and, on that basis, finds that the study supports the current proposed changes to the inclusionary housing requirements for projects of 20 units or less in the Eastern Neighborhood Area Plan. Specifically, the Board finds that the study and staff memo: (1) identifies the purpose of the additional fee to mitigate impacts on the demand for affordable housing in the City; (2) identifies the use to which the additional fee is to be put as being to increase the City's affordable housing supply; and (3) establishes a reasonable relationship between the use of the additional fee for affordable housing and the need for affordable housing and the construction of new market rate housing. Moreover, the Board finds that the new inclusionary affordable housing requirements are less than the cost of mitigation and do not include the costs of remedying any existing deficiencies. The Board also finds that the study establishes that the inclusionary requirements do not duplicate other City requirements or fees.
B. Furthermore, the Board finds that generally an account has been established, funds appropriated, and a construction schedule adopted for affordable housing projects funded through the Inclusionary Affordable Housing program and the in lieu fees will reimburse the City for expenditures on affordable housing that have already been made.
C. The Board finds that small scale development faces a number of challenges in the current development climate, including limited access to credit and often, a higher land cost per unit for the small sites on which they develop. Because of these and other variations from larger-scale development, they operate under a somewhat unique development model which cannot be fully encapsulated within the constraints of the Eastern Neighborhoods Financial Analysis, prepared to assess the financial feasibility of increasing housing requirements and impact fees in the Plan Areas. To address these challenges, the Board finds that a number of slight modifications to the affordable housing requirements of the Eastern Neighborhoods, to apply to small projects (defined as 20 units or fewer, or less than 25,000 gross square feet) are appropriate.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 312-10, File No. 100046, App. 12/23/2010)
SEC. 417.2. DEFINITIONS.
See Section 401 of this Article.
"Gross Square Footage" shall have the meaning set forth in Section 102.
"Eastern Neighborhood Controls" shall have the meaning set forth in Section 175.6(c)(1).
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 22-15, File No. 141253, App. 2/20/2015, Eff. 3/22/2015)
AMENDMENT HISTORY
Section amended; Ord. 22-15, Eff. 3/22/2015.
SEC. 417.3. APPLICATION OF AFFORDABLE HOUSING FEE REQUIREMENT.
(a) Application. The alternate Affordable Housing Fee described in this Section shall only apply to development projects that are subject to the Eastern Neighborhood Controls, consist of 20 units or less or less than 25,000 gross square feet, and are subject to the requirements of Sections 415 through 415.9 and 419, and any stated exceptions elsewhere in this Code, including the specific provisions in Section 419.
(b) Amount of Fee. Any sponsor of a development projects subject to this Section may choose to pay an alternate fee equal to $40.00 per gross square foot of net new residential development instead of the standard Affordable Housing Fee requirements set forth in Section 415.5 as follows.
(c) Calculation of Gross Square Feet of Residential Area. The calculation of gross square feet shall not include nonresidential uses, including any retail, commercial, or PDR uses, and all other space used only for storage and services necessary to the operation or maintenance of the building itself.
(d) Timing of Fee Payments. The Eastern Neighborhoods Alternate Affordable Housing Fee shall be paid to DBI for deposit into the Citywide Affordable Housing Fund at the time required by Section 402(d).
AMENDMENT HISTORY
SEC. 417.4. IMPOSITION OF AFFORDABLE HOUSING FEE REQUIREMENT.
(a) Determination of Requirements. The Department shall determine the applicability of Section 417.1 et seq. to any development project requiring a first construction document and, if Section 417.1 et seq. is applicable, shall impose any such requirements as a condition of approval for issuance of the first construction document for the development project. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Department Notice to Development Fee Collection Unit at DBI. After the Department has made its final determination regarding the application of the affordable housing requirements to a development project pursuant to Section 417.1 et seq., it shall immediately notify the Development Fee Collection Unit at DBI of the applicable affordable housing fee amount in addition to the other information required by Section 402(b) of this Article.
(c) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Section 417.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) shall be followed.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 55-11, File No. 101523, App. 3/23/2011)
SEC. 417.5. USE OF FUNDS.
The Eastern Neighborhoods Area Plan Alternate Affordable Housing Fee shall be paid into the Citywide Affordable Housing Fund, but the funds shall be separately accounted for. MOH shall expend the funds according to the following priorities: First, to increase the supply of housing Affordable to Qualifying Households in the Eastern Neighborhoods Project Areas; second, to increase the supply of housing Affordable to Qualifying Households within one mile of the boundaries of the Eastern Neighborhoods Project Areas; third, to increase the supply of housing Affordable to Qualifying Households in the City and County of San Francisco. The funds may also be used for monitoring and administrative expenses subject to the process described in Section 415.5(e). All monies contributed pursuant to the Eastern Neighborhoods Area Plan Alternate Affordable Housing Fee and collected within the Central SoMa Special Use District shall be paid into the Citywide Affordable Housing Fund, but the funds shall be separately accounted for. Such funds shall be expended within the area bounded by Market Street, the Embarcadero, King Street, Division Street, and South Van Ness Avenue.
AMENDMENT HISTORY
[RINCON HILL COMMUNITY IMPROVEMENTS FUND AND SOMA COMMUNITY STABILIZATION FUND]
SEC. 418.1. PURPOSE AND FINDINGS SUPPORTING RINCON HILL COMMUNITY IMPROVEMENTS FUND AND SOMA COMMUNITY STABILIZATION FUND.
(a) Purpose. The Board takes legislative notice of the purpose of the Rincon Hill Area Plan as articulated in the Rincon Hill Area Plan of the San Francisco General Plan. In general, the Rincon Hill Area Plan aims to transform Rincon Hill into a mixed-use downtown neighborhood with a significant housing presence, while providing the full range of services and amenities that support urban living. In addition, the Board notes the findings made in the Rincon Hill Area Plan that support the establishment of the Rincon Hill Community Improvements Fund specifically that Rincon Hill is lacking in open space facilities, pedestrian and streetscape amenities and bicycle infrastructure.
(b) Findings. The Board of Supervisors has reviewed the San Francisco Citywide Nexus Analysis (“Nexus Analysis”), and the San Francisco Infrastructure Level of Service Analysis, both on file with the Clerk of the Board in File No. 230764 and, under Section 401A, adopts the findings and conclusions of those studies and the general and specific findings in that Section, specifically including the Recreation and Open Space Findings and Complete Streets findings, and incorporates those by reference herein to support the imposition of the fees under this Section.
The Board takes legislative notice of the findings supporting the fees in former Planning Code Section 418.1 (formerly Section 318.1) and the materials associated with Ordinance No. 217-05 in Board File No. 050865. To the extent that the Board previously adopted fees in this Area Plan that are not covered in the analysis of the four infrastructure areas analyzed in the Nexus Analysis, including but not limited to fees related to transit, the Board continues to rely on its prior analysis and the findings it made in support of those fees.
(c) SoMa Community Stabilization Fund. The development of the Rincon Hill Area Plan will also have economic impacts on the immediately surrounding area of SoMa. Specifically, the development will have impacts on affordable housing, economic and community development, and community cohesion in SoMa.
(1) Housing. The Board has adopted extensive findings documenting generally the need for housing and particularly affordable housing and the impact of market rate housing development on the need for affordable housing in Section 415.1 and incorporates those findings herein. The proposed new development in the Rincon Hill area will also lead to increased home prices and increased rental rates in the immediate Rincon Hill area and the surrounding South of Market area. This new development and corresponding increase in prices in the Rincon Hill area will cause displacement of existing residents.
New development in the Rincon Hill area will be marketed to higher income groups than other new development in San Francisco. Higher income groups have a higher demand for services than other income groups, so a higher number of workers will need to be housed in the area. Workers in the service industry generally make less than median income. The development in Rincon Hill represents the development of a disproportionate share of the available land for remaining housing development in the City.
The new development creates the need for additional affordable housing in the South of Market neighborhood and the need to provide subsidies for existing residents so that they will not be displaced and can continue living in their current neighborhood. In order to avoid displacement from the new development, residents will also need financial support to avoid eviction.
In addition, through the amendments to the Rincon Hill Area Plan and related zoning maps, the overall development capacity of the Rincon Hill area will be increased by (1) increasing permitted height and bulk, (2) eliminating residential density limits by lot area, and (3) establishing a minimum residential to commercial use ratio. Existing permitted heights range from 80 feet up to a maximum of 250 feet. The new Rincon Hill zoning would increase heights up to 400 - 550 feet in selected locations. The permitted bulk for residential towers will be increased from a maximum floor plate of 7,500 sf to a range from 7,500 - 10,000 sf. The area's existing RC-4 zoning has a maximum permitted residential density of 1 unit per 200 of lot area; this limit will be eliminated and the height and bulk envelope will control the maximum development permitted. Thus project sponsors in the area are receiving a substantial increase in density over what is currently permitted.
(2) Economic and Community Development. The new development in Rincon Hill will also change the economic landscape of the Rincon Hill area and the South of Market area. The new development in Rincon Hill will displace small businesses directly by focusing development in the neighborhood on residential development and indirectly due to higher rents and higher prices for real estate. Thus existing small businesses need financial assistance to avoid being displaced.
The new development in the Rincon Hill area will also affect the type of jobs available in the Rincon Hill and South of Market area. Current residents of SoMa are employed in the Rincon Hill and SoMa area. New development in the Rincon Hill area will concentrate on residential development, thus pushing out other uses including light industrial uses and small business. Local workers will need to be retrained to avoid job displacement from the development in the Rincon Hill area. Financial assistance will support employment development, job placement, job development, and other forms of economic capacity building for SoMa residents to ameliorate the effects of the economic displacement. The City benefits from having workers live near to their work places in reduced commute times for residents, and reduced traffic congestion and associated pollution.
(3) Community Cohesion. New development in the Rincon Hill area in such a vast quantity and of such a different character as currently exists will change the social fabric of the neighborhood. Programs to promote leadership development, community cohesion, and civic participation will also ameliorate the negative economic and social consequences of the new development in Rincon Hill on the residents and small businesses in Rincon Hill and the broader South of Market community.
AMENDMENT HISTORY
SEC. 418.2. DEFINITIONS.
See Section 401 of this Article.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
SEC. 418.3. APPLICATION OF RINCON HILL COMMUNITY IMPROVEMENTS FEE AND SOMA COMMUNITY STABILIZATION FEE.
(a) Application. Section 418.1 et seq. shall apply to any development project located in the Rincon Hill Community Improvements Program Area
(b) Projects subject to the Rincon Hill Community Infrastructure Impact Fee. The Rincon Hill Community Infrastructure Impact Fee is applicable to any development project in the Rincon Hill Program Area which results in:
(1) At least one net new residential unit,
(2) Additional space in an existing residential unit of more than 800 gross square feet,
(3) At least one net new group housing facility or residential care facility,
(4) Additional space in an existing group housing or residential care facility of more than 800 gross square feet,
(c) Fee Calculation for the Rincon Hill Community Infrastructure Impact Fee. For development projects for which the Rincon Hill Community Infrastructure Impact Fee is applicable:
(1) Any net addition of gross square feet shall pay per the Fee Schedule in Table 418.3A, and
(2) Any replacement of gross square feet or change of use shall pay per the Fee Schedule in Table 418.3B.
Residential | $8.60/gsf |
Residential to Residential or Non-residential; Non-residential to Non-residential; or PDR to Non-Residential | Non-Residential to Residential | PDR to Residential |
$0 | $5.00/gsf | $6.80/gsf |
(d) Projects Subject to and Fee Calculation for the SOMA Community Stabilization Fee. The SOMA Community Stabilization Fee shall be $10.95 per net addition of gross square feet of residential use in any development project with a residential use within the Program Area.
(e) Option for In-Kind Provision of Community Infrastructure and Fee Credits. Project sponsors may propose to directly provide community improvements to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a fee waiver for the Rincon Hill Community Infrastructure Impact Fee from the Planning Commission, subject to the following rules and requirements:
(1) Approval criteria. The City shall not enter into an In-Kind Agreement unless the proposed in-kind improvements meet an identified community need and where they substitute for improvements that could be provided by the Rincon Hill Community Improvements Fund (as described in Section 418.5). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Rincon Hill Area Plan, by the Interagency Plan Implementation Committee (see Section 36 of the Administrative Code), or other prioritization processes related to Rincon Hill community improvements programming. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of this In-Kind Improvements Agreement.
(2) Valuation. The Director of Planning shall determine the appropriate value of the proposed in-kind improvements. For the purposes of calculating the total value, the project sponsor shall provide the Planning Department with a cost estimate for the proposed in-kind improvement(s) from two independent sources or, if relevant, real estate appraisers. If the City has completed a detailed site-specific cost estimate for a planned improvement this may serve as one of the cost estimates provided it is indexed to current cost of construction.
(3) Content of the In-Kind Improvements Agreement. The In-Kind Improvements Agreement shall include at least the following items:
(i) A description of the type and timeline of the proposed in-kind improvements.
(ii) The appropriate value of the proposed in-kind improvement, as determined in subsection (2) above.
(iii) The legal remedies in the case of failure by the project sponsor to provide the in-kind improvements according to the specified timeline and terms in the agreement. Such remedies shall include the method by which the City will calculate accrued interest.
(4) Approval Process. The Planning Commission must approve the material terms of an In-Kind Agreement. Prior to the parties executing the Agreement, the City Attorney must approve the agreement as to form and to substance. The Director of Planning is authorized to execute the Agreement on behalf of the City. If the Planning Commission approves the In-Kind Agreement, it shall waive the amount of the Rincon Hill Community Infrastructure Impact Fee by the value of the proposed In-Kind Improvements Agreement as determined by the Director of Planning. No credit shall be made for land value unless ownership of the land is transferred to the City or a permanent public easement is granted, the acceptance of which is at the sole discretion of the City. The maximum value of the In-Kind Improvements Agreement shall not exceed the required Rincon Hill Community Infrastructure Impact Fee.
(5) Administrative Costs. Project sponsors that pursue an In-Kind Improvements Agreement will be billed time and materials for any administrative costs that the Planning Department or any other City entity incurs in negotiating, drafting, and monitoring compliance with the In-Kind Improvements Agreement.
(f) Option for Financing of In-Kind Community Improvements or payment of the Rincon Hill Community Infrastructure Impact Fee via a Mello-Roos Community Facilities District ("CFD"). Applicants may finance In-Kind Community Improvements (subject to subsection (f) above) or payment of the Rincon Hill Community Infrastructure Impact Fee (subject to subsection (c) above) through the formation of a CFD.
(g) Timing of Fee Payments. The Rincon Hill Community Infrastructure Impact Fee and SOMA Stabilization Fee shall be paid to DBI for deposit into the Rincon Hill Community Improvements Fund at the time required by Section 402(d).
(h) Waiver or Reduction. Development projects may be eligible for a waiver or reduction of impact fees, per Section 406 of this Article. In the event that the Board of Supervisors grants a waiver or reduction under Section 406 of this Article, it shall be the policy of the Board of Supervisors that it shall adjust the percentage of inclusionary housing in lieu fees in Section 827(b)(5)(C) of this Code such that a greater percentage of the in lieu fees will be spent in SOMA with the result that the waiver or reduction under this Section shall not reduce the overall funding to the SOMA community.
AMENDMENT HISTORY
SEC. 418.4. IMPOSITION OF COMMUNITY INFRASTRUCTURE IMPACT FEE AND SOMA STABILIZATION FEE.
(a) Determination of Requirements. The Department or Commission shall determine the applicability of Section 418.1 et seq. to any development project requiring a first construction document and, if Section 418.1 et seq. is applicable, the amount of Community Infrastructure Impact and SOMA Stabilization Fees required and shall impose these requirements as a condition of approval for issuance of the first construction document for the development project. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Department's Notice to Development Fee Collection Unit at DBI. Prior to issuance of a building or site permit for a development project subject to the requirements of Section 418.1 et seq., the Department shall notify the Development Fee Collection Unit at DBI of its final determination of the amount of Community Infrastructure and SOMA Stabilization Fees required, including any fee credits for in-kind improvements, in addition to the other information required by Section 402(b) of this Article.
(c) Development Fee Collection Unit's Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing and electronically to the Department prior to issuing the first certificate of occupancy for any development project subject to Section 418.1 et seq. that has elected to fulfill all or part of the requirement with an In-Kind Improvement Agreement. If the Department notifies the Unit at such time that the sponsor has not satisfied the requirements, the Director of DBI shall deny any and all certificates of occupancy until the subject project is brought into compliance with the requirements of Section 418.1 et seq.
(d) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Section 418.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Department or the Commission, Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) shall be followed.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 55-11, File No. 101523, App. 3/23/2011)
SEC. 418.5. RINCON HILL COMMUNITY IMPROVEMENTS FUND.
(a) There is hereby established a separate fund set aside for a special purpose entitled the Rincon Hill Community Improvements Fund ("Fund"). All monies collected by the Development Fee Collection Unit at DBI pursuant to Section 418.3 shall be deposited in the Fund maintained by the Controller. The receipts in the Fund shall be appropriated in accordance with law through the normal budgetary process to fund public infrastructure and other allowable improvements subject to the conditions of this Section.
(b) Use of Funds.
(1) Rincon Hill Infrastructure. All monies deposited in the Fund shall be used solely to design, engineer, acquire, improve, and develop neighborhood recreation and open spaces, pedestrian and streetscape improvements, and bicycle infrastructure that result in new publicly-accessible facilities or other allowable improvements within the Rincon Hill Downtown Residential (DTR) District or within 250 feet of the District. These expenditures shall be consistent with the Rincon Hill Public Open Space System as described in Map 5 of the Rincon Hill Area Plan of the General Plan and the Rincon Hill Streetscape Plan. The Fund shall be allocated in accordance with Table 418.5.
Improvement Type | Dollars Received from Residential Development | Dollars Received from Commercial Development |
Complete Streets: Pedestrian and Streetscape Improvements | 79% | Not applicable |
Recreation and Open Space | 16% | Not applicable |
Program Administration | 5% | Not applicable |
(2) SoMa Stabilization Fund. Notwithstanding Subsection (b)(1) above, $6 million of the Fund shall be transferred to the SoMa Stabilization Fund described in Section 418.7 to be used exclusively for the following expenditures: SoMa Open Space Facilities Development and Improvement; Community Facilities Development and Improvement; SoMa Pedestrian Safety Planning, Traffic Calming, and Streetscape Improvement; and Development of new affordable housing in SoMa. The Board of Supervisors finds that it is in the best interest of the City that the Rincon Hill Community Improvements be built.
(3) Program Administration. No portion of the Fund may be used, by way of loan or otherwise, to pay any administrative, general overhead, or similar expense of any public entity, except for the purposes of administering this fund in an amount not to exceed 5% of the total annual revenue. Administration of this fund includes maintenance of the Fund, time and materials associated with processing and approving fee payments and expenditures from the Fund (including necessary hearings), reporting or informational requests related to the Fund, and coordination between public agencies regarding determining and evaluating appropriate expenditures of the Fund. Monies from the Fund may be used by the Planning Commission to commission economic analyses for the purpose of revising the fee under Section 418.3 above, to complete a nexus study to demonstrate or update the relationship between residential development and the need for public facilities, or to commission landscape, architectural or other planning, design and engineering services in support of the proposed public improvements. All interest earned on this account shall be credited to the Rincon Hill Community Improvements Fund.
(c) Acquisition of New Open Space. A public hearing shall be held by both the Planning and Recreation and Parks Commissions to elicit public comment on proposals for the acquisition of property using monies in the Fund or through agreements for financing In-Kind Community Improvements via a Mello-Roos Community Facilities District that will ultimately be maintained by the Department of Recreation and Parks. Notice of public hearings shall be published in an official newspaper at least 20 days prior to the date of the hearing, which notice shall set forth the time, place, and purpose of the hearing. The hearing may be continued to a later date by a majority vote of the members of both Commissions present at the hearing. The Recreation and Parks Commission may vote to recommend to the Board of Supervisors that it appropriate money from the Fund for acquisition of property for park use and/or for development of property for park use.
(d) The Planning Commission shall work to develop a proposed expenditure plan with other City agencies and commissions, specifically the Department of Recreation and Parks, DPW, and the San Francisco Municipal Transportation Agency, to develop a proposed expenditure plan, and to develop agreements related to the administration of the development of new public facilities within public rights-of-way or on any acquired property. The proposed expenditure plan shall be subject to approval by the Board of Supervisors
(e) The Director shall have the authority to prescribe rules and regulations governing the Fund, which are consistent with Section 418.1 et seq. The Director of Planning, as the head of the Interagency Plan Implementation Committee (IPIC), shall make recommendations to the Board regarding allocation of funds.
AMENDMENT HISTORY
SEC. 418.6. DIRECTOR OF PLANNING'S EVALUATION.
Within 18 months following the effective date of Section 418.1 et seq., the Director of Planning and the Director of MOH shall report to the Planning Commission, the Board of Supervisors, and the Mayor on the status of compliance with Section 418.1 et seq., the efficacy of Section 418.1 et seq. in funding infrastructure and stabilization programs in the Rincon Hill Program Area and in SoMa, and the impact of the Program on property values in the vicinity of the Program Area.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010)
SEC. 418.7. SOMA COMMUNITY STABILIZATION FUND.
(a) Purpose. There is hereby established a separate fund set aside for a special purpose entitled the SOMA Community Stabilization Fund (“Fund”), and within the Fund an account related to the Community Facilities District defined in Section 434 called the SoMa Community Facilities District Account (“Community Facilities District Account”). The Fund and the Community Facilities District Account shall be held and maintained by the Controller. All monies collected by DBI pursuant to Section 418.3 shall be deposited in the Fund, to be maintained by the Controller. The Controller may direct certain proceeds of the Community Facilities District special tax, as defined in Section 434, collected pursuant to Section 434, to be deposited into the Community Facilities District Account. Proceeds of bonds issued for the Community Facilities District shall not be deposited into the Community Facilities District Account. The receipts in the Fund and the Community Facilities District Account are hereby appropriated in accordance with law to be used solely to address the effects of destabilization on residents and businesses in SOMA subject to the conditions of this Section 418.7.
(b) Use of Funds.
(1) All monies deposited in the Fund shall be used to address the impacts of destabilization on residents and businesses in SOMA including assistance for: affordable housing and community asset building, small business rental assistance, development of new affordable homes for rental units for low income households, rental subsidies for low income households, down payment assistance for home ownership for low income households, eviction prevention, employment development and capacity building for SOMA residents, job growth and job placement, small business assistance, leadership development, community cohesion, civic participation, cultural preservation, and community based programs and economic development. Monies in the Community Facilities District Account may be used for the purposes specified in this subsection (b) that are authorized uses of Community Facilities District revenues under the proceedings for the Community Facilities District and that are described in the Central SoMa Implementation Program Document.
(2) Monies from the Fund may be appropriated by the Mayor’s Office of Housing and Community Development (“MOHCD”) without additional approval by the Board of Supervisors to the Planning Commission or other City department or office to commission economic analyses for the purpose of revising the fee, to complete a nexus study to demonstrate the relationship between residential development and the need for stabilization assistance if this is deemed necessary, provided these expenses do not exceed a total of $100,000. The receipts in the Fund may be used to pay the expenses of MOHCD in connection with administering the Fund and monitoring the use of the Funds. Before expending funds on administration, MOHCD must obtain the approval of the Board of Supervisors by Resolution. Monies in the Community Facilities District Account may not be used for the purposes described in this subsection (b)(2).
(c) Reporting. The Controller’s Office shall file a report with the Board of Supervisors in even-numbered years, which report shall set forth the amount of money collected in the Fund. The Fund shall be administered and expended by MOHCD, but all expenditures shall first be approved by the Board of Supervisors through the legislative process. In approving expenditures from the Fund, MOHCD and the Board of Supervisors shall consider any comments from the SOMA Community Stabilization Fund Community Advisory Committee in Article XXVII of Chapter 5 of the Administrative Code, the public, and any relevant City departments or offices. With respect to the Community Facilities District Account, the Controller’s Office also shall comply with the reporting requirements set forth in the Special Tax Financing Law and Government Code Section 50075 et seq.
AMENDMENT HISTORY
SEC. 418.8. STUDIES.
(a) No later than July 1, 2010, and every five years thereafter, the Director of Planning shall complete a study to determine the demand for infrastructure to serve residential development projects in the Rincon Hill Downtown Residential District and, based on the study, recommend to the Board of Supervisors changes in the requirements for the Rincon Hill Community Infrastructure Impact Fee imposed on residential development in Section 418.1 et seq. if necessary to help meet that demand.
(b) No later than July 1, 2010, and every five years thereafter, the Director of MOH or his or her designee shall complete a study to determine the demand for stabilization programs in the SOMA area and, based on the study, recommend to the Board of Supervisors changes in the requirements for the SOMA Community Stabilization Fee imposed on residential development in Section 418.1 et seq. if necessary to help meet that demand.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 270-10, File No. 100917, App. 11/5/2010)
[HOUSING REQUIREMENTS, UMU ZONING DISTRICTS OF THE EASTERN NEIGHBORHOODS;
LAND DEDICATION ALTERNATIVE IN THE MISSION NCT DISTRICT]
LAND DEDICATION ALTERNATIVE IN THE MISSION NCT DISTRICT]
SEC. 419.1. FINDINGS.
(a) Need for New Housing and Other Land Uses. San Francisco is experiencing a severe shortage of housing available to people at all income levels. In addition, San Francisco has an ongoing affordable housing crisis. Many future San Francisco workers will be earning below 80% of the area's median income, and even those earning moderate or middle incomes, above the City's median, are likely to need assistance to continue to live in San Francisco. In 2007, the median income for a family of four in the City was about $86,000. Yet median home prices suggest that nearly twice that income is needed to be able to afford a dwelling suitable for a family that size. Only an estimated 10% of households in the City can afford a median-priced home.
The Association of Bay Area Governments' (ABAG) Regional Housing Needs Determination (RHND) forecasts that San Francisco must produce over 31,000 new units in the next five years, or over 6,000 new units of housing annually, to meet projected needs. At least 60%, or over 18,000, of these new units should be available to households of very low, low, and moderate incomes. With land in short supply in the City, it is increasingly clear that the City's formerly industrial areas offer a critical source of land where this great need for housing, particularly affordable housing, can be partially addressed.
(b) Target Area For New Housing. San Francisco's Housing Element establishes the Eastern Neighborhoods as a target area for development of new housing to meet San Francisco's identified housing targets. The release of some of the area's formerly industrial lands, no longer needed to meet current industrial or PDR needs, offers an opportunity to achieve higher affordability, and meet a greater range of need. The Mission, Showplace Square - Potrero Hill, East SoMa and Central Waterfront Area Plans of the General Plan (Eastern Neighborhoods Plans) thereby call for creation of new zoning intended specifically to meet San Francisco's housing needs, through higher affordability requirements and through greater flexibility in the way those requirements can be met.
New affordable units are currently funded through a variety of sources, including inclusionary housing and in lieu fees leveraged by new market rate residential development pursuant to Sections 413 and 415; as well as City, State, and federal funding. Using these existing sources, the Planning Department projects that approximately 1,000 to 1,500 new units of affordable housing will be developed in the Eastern Neighborhoods.
Recognizing that this number of affordable units is not sufficient, the Plans call for further measures beyond the existing inclusionary requirements and Citywide funding, including new funding sources for affordable housing programs such as an impact fee; and new zoning districts in formerly industrial areas which require deeper affordability.
(c) Requirements for New Development To Contribute Towards Housing Objectives. A key policy goal of the Eastern Neighborhoods Plans is to provide a significant amount of new housing affordable to low, moderate, and middle income families and individuals, along with “complete neighborhoods” that provide appropriate amenities for these new residents. The Plans obligate all new development within the Eastern Neighborhoods to contribute towards these goals, by providing a contribution towards affordable housing needs and by paying for a reasonable share of their impact on the neighborhood’s infrastructure. They further require new development in transitioning formerly industrial areas to contribute a higher share towards the City’s exponentially high affordability needs.
To address the full range of housing needs of all income categories, including low, moderate, and middle income families and individuals, the Plans provide programs which address all of these income levels, as follows:
(1) Low: Current housing programs funded by federal and State funds, private equity raised through Low-Income Housing Tax Credits, and local funds such as inclusionary in-lieu and Jobs-Housing Linkage fees and run by MOHCD and the San Francisco Redevelopment Agency fund affordable housing primarily at very low and low income levels, to households making below 80% of the area median income; but due to the low supply and high costs of land in the City, are at a disadvantage for sites upon which to provide such housing. An alternative to the city’s Inclusionary Housing Program will allow developers to dedicate sites for very low and low income level units.
(2) Moderate: The City's Inclusionary Housing Program funds affordable housing primarily at the moderate income levels through on-site provision of below-market rate units, to households making between 80% and 120% of the San Francisco median income. Continuation and expansion of the Inclusionary Housing Program will allow provision of these moderate income units to increase.
(3) Middle: The City has no current programs to fund affordable housing to those at "middle" income levels, below the 200% area median income level estimated to be required to purchase market rate housing yet above the 120% threshold required for the City's Inclusionary Housing Program. An alternative to the city's Inclusionary Housing Program will allow developers to provide "middle" income level units.
The Eastern Neighborhoods Plans structure requirements and fees by tiers to ensure feasibility. This feasibility amount remains below the nexus established in the Residential Nexus Analysis, April 2007, on file with the Planning Department. Within these districts, new development of market-rate housing will be required to meet affordable housing requirements above the City's ordinary affordable housing requirements for Residential and Live/Work Development Projects (Section 415), as described in Sections 419.2-419.4. These housing requirements may be met through increased inclusionary requirements under the City's traditional Inclusionary Program, or through alternative methods contained herein.
AMENDMENT HISTORY
SEC. 419.2. DEFINITIONS.
(a) In addition to the definitions set forth in Section 401 of this Article:
(1) “Tier A.”
(i) All development on sites within the UMU District which received a height increase of eight feet or less, or received a reduction in height, as part of the Eastern Neighborhoods Plan (on file with the Clerk of the Board of Supervisors in File No. 081154), and all sites within the Mission NCT District utilizing the land dedication alternative specified in Section 419.5(a)(2).
(ii) All changes of use within existing structures.
(2) “Tier B.” All development on sites within the UMU District which received a height increase of nine to 28 feet as part of the Eastern Neighborhoods Plan (on file with the Clerk of the Board of Supervisors in File No. 081154).
(3) “Tier C.” All development on sites within the UMU District which received a height increase of 29 feet or more as part of the Eastern Neighborhoods Plan (on file with the Clerk of the Board of Supervisors in file No. 081154).
AMENDMENT HISTORY
SEC. 419.4. IMPOSITION OF UMU AFFORDABLE HOUSING REQUIREMENTS.
(a) The Department shall determine the applicability of Section 419.1 et seq. to any development project requiring a first construction document and, if Section 419.1 et seq. is applicable, the additional affordable housing required pursuant to Section 419.1 et seq. and shall impose these requirements as condition on the approval for issuance of the first construction document for the development project. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Notice to Development Fee Collection Unit at DBI. After the Department has made its final determination of the additional affordable housing required pursuant to Section 419.1 et seq., it shall immediately notify the Development Fee Collection Unit at DBI of its determination in addition to the other information required by Section 402(b) of this Article.
(c) Sponsor’s Choice to Fulfill Requirements. Prior to issuance of a building or site permit for a development project subject to the requirements of Section 419.1 et seq., the sponsor of the development project shall select one of the options described in Section 419.3 above or the Alternatives described in Section 419.5 below to fulfill the affordable housing requirements and notify the Department of their choice.
(d) Department Notice to Development Fee Collection Unit of Sponsor Choice. After the sponsor has notified the Department of their choice to fulfill the additional affordable housing requirements of Section 419.1 et seq., the Department shall immediately notify the Development Fee Collection Unit at DBI of the sponsor's choice.
(e) The Development Fee Collection Unit Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the first certificate of occupancy for any development project subject to Section 419.1 et seq. that has elected to fulfill its requirement with an option other than payment of an in-lieu fee. If the Department notifies the Unit at such time that the sponsor has not satisfied the requirements, the Director of DBI shall deny any and all certificates of occupancy until the subject project is brought into compliance with the requirements of Section 419.1 et seq.
(f) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Section 419.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Department or the Commission, Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) of this Article shall be followed.
AMENDMENT HISTORY
Division (c) amended; Ord. 210-21, Eff. 12/20/2021.
SEC. 419.6. LAND DEDICATION ALTERNATIVE IN THE MISSION NCT DISTRICT AND CENTRAL SOMA SPECIAL USE DISTRICT.
(a) Mission NCT District. The Land Dedication Alternative is available for any project within the Mission NCT District under the same terms and conditions as provided for in Section 419.5(a)(2)(A)-(J).
(b) Central SoMa Special Use District. The Land Dedication Alternative is available for projects within the Central SoMa Special Use District under the same terms and conditions as provided for in Section 419.5
(a)(2), except that in lieu of the Land Dedication Alternative requirements of Table 419.5, projects may satisfy the requirements of Section 415.5 by dedicating land for affordable housing if the dedicated site will result in a total amount of dedicated Gross Floor Area that is equal to or greater than 45% of the potential Gross Floor Area that could be provided on the principal site, as determined by the Planning Department. Land dedicated for affordable housing that results in less than 45% of such potential Gross Floor Area may be counted in partial satisfaction of the requirements of Section 415.5, so long as the land dedicated is at least 10,000 square feet or has a minimum capacity of 75 units of affordable housing; provided that the project satisfies any remaining obligations under Section 415.5 through the alternatives described in Section 415.5(g)(1). Any dedicated land shall be within the area bounded by Market Street, the Embarcadero, King Street, Division Street, and South Van Ness Avenue.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 188-15
, File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021; Ord. 37-25, File No. 240787, App. 4/3/2025, Eff. 5/4/2025)
AMENDMENT HISTORY
[VISITACION VALLEY COMMUNITY FACILITIES AND INFRASTRUCTURE FEE AND FUND]
SEC. 420.1. PURPOSE AND FINDINGS SUPPORTING VISITACION VALLEY COMMUNITY IMPROVEMENTS FEE AND FUND.
(a) Purpose. The Visitacion Valley Fee Area (Fee Area) is located along the southeastern border of San Francisco and includes the area bounded by McLaren Park to the west, the San Mateo County line to the south, Mansell Street to the north, and Highway 101 and Bayview Park to the east. The Board takes legislative notice of the purpose of the following planning areas: Executive Park Subarea Plan of the Bayview Hunters Point Area Plan, and the Visitacion Valley Redevelopment Area, including the Schlage Lock site. The Board also takes notice of the HOPE SF program, specifically the HOPE SF development at Sunnydale. Jointly these plans and program aim to strengthen neighborhood character, the neighborhood commercial district, and transit by increasing the housing and retail capacity in the area. This project goal will also help to meet ABAG's projected demand to provide housing in the Bay Area by encouraging the construction of higher density housing. The Plan builds on existing neighborhood character and establishes new standards for amenities necessary for a transit-oriented neighborhood. In addition, the Board notes the findings made in the above-referenced Plans that support the establishment of the Visitacion Valley Community Improvements Fee and Fund, specifically that new development in Visitacion Valley creates the need for improvements in pedestrian and streetscape amenities, bicycle infrastructure, recreation and open space facilities, and childcare.
(b) Findings. The Board of Supervisors has reviewed the San Francisco Citywide Nexus Analysis (“Nexus Analysis”), and the San Francisco Infrastructure Level of Service Analysis, both on file with the Clerk of the Board in File No. 230764 and, under Section 401A, adopts the findings and conclusions of those studies and the general and specific findings in that Section, specifically including the Recreation and Open Space Findings, Complete Streets Findings, and Childcare Findings, and incorporates those by reference herein to support the imposition of the fees under this Section.
The Board takes legislative notice of the findings supporting these fees in former Planning Code Section 420.1 (formerly Section 318.10 et seq.) and the materials associated with Ordinance No. 3-11 in Board File No. 101247. To the extent that the Board previously adopted fees in this Area Plan that are not covered in the analysis of the four infrastructure areas analyzed in the Nexus Analysis, including but not limited to tees related to transit, the Board continues to rely on its prior analysis and the findings it made in support of those fees.
AMENDMENT HISTORY
SEC. 420.2. DEFINITIONS.
SEC. 420.3. APPLICATION OF VISITACION VALLEY COMMUNITY IMPROVEMENTS FACILITIES AND INFRASTRUCTURE FEE.
(a) Projects subject to the Visitacion Valley Community Facilities and Infrastructure Fee. The Visitacion Valley Community Facilities Fee and Infrastructure Fee is applicable to any development project in the Visitacion Valley Fee Area which:
(1) has 20 or more residential units, and
(A) creates at least one new residential unit, or
(B) creates additional space in an existing residential unit of more than 800 gross square feet.
(2) have both not filed an application or a building permit, site permit, conditional use, planned unit development, environmental evaluation, Zoning Map amendment or General Plan amendment prior to September 1, 2003, and have filed an application for a building permit, site permit, conditional use, planned unit development, environmental evaluation, Zoning Map amendment or General Plan amendment on or after September 1, 2003.
(b) Amount of Fee. The Visitacion Valley Community Facilities and Infrastructure Fee ("Fee") shall be $4.58 for each net addition of occupiable square feet of residential use within a development project subject to this Section. Any replacement of gross square feet or change of use shall pay per the Fee Schedule in Table 420.3A below.
Residential to Residential or Non-residential; Non-residential to Non-residential; or PDR to Non-Residential | Non-Residential to Residential | PDR to Residential |
$0 | $3.60/gsf | $2.32/gsf |
(c) Option for In-Kind Provision of Community Infrastructure and Fee Credits. Project sponsors may propose to directly provide community improvements to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a fee waiver for the Visitacion Valley Community Facilities and Infrastructure Fee from the Planning Commission, subject to the following rules and requirements:
(1) Approval Criteria. The City shall not enter into an In-Kind Agreement unless the proposed In-Kind Improvements meet an identified community need and where they substitute for improvements that could be provided by the Visitacion Valley Community Facilities and Infrastructure Fund. The City may reject in-kind improvements if they are not consistent with the priorities identified in the Visitacion Valley Community Facilities and Infrastructure Fee Program, by the Interagency Plan Implementation Committee (see Section 36 of the Administrative Code), or other prioritization processes related to Visitacion Valley community improvements programming. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of this In-Kind Improvements Agreement.
(2) Valuation. The Director of Planning shall determine the appropriate value of the proposed In-Kind Improvements. For the purposes of calculating the total value, the project sponsor shall provide the Planning Department with a cost estimate for the proposed In-Kind Improvement(s) from two independent sources or, if relevant, real estate appraisers. If the City has completed a detailed site-specific cost estimate for a planned improvement this may serve as one of the cost estimates provided it is indexed to current cost of construction.
(3) Content of the In-Kind Improvements Agreement. The In-Kind Improvements Agreement shall include at least the following items:
(i) A description of the type and timeline of the proposed In-Kind Improvements.
(ii) The appropriate value of the proposed In-Kind Improvement, as determined in subsection (2) above.
(iii) The legal remedies in the case of failure by the project sponsor to provide the In-Kind Improvements according to the specified timeline and terms in the agreement. Such remedies shall include the method by which the City will calculate accrued interest.
(4) Approval Process. The Planning Commission must approve the material terms of an In-Kind Agreement. Prior to the parties executing the Agreement, the City Attorney must approve the agreement as to form and to substance. The Director of Planning is authorized to execute the Agreement on behalf of the City. If the Planning Commission approves the In-Kind Agreement, it shall waive the amount of the Visitacion Valley Community Facilities and Infrastructure Fee by the value of the proposed In-Kind Improvements Agreement as determined by the Director of Planning. No credit shall be made for land value unless ownership of the land is transferred to the City or a permanent public easement is granted, the acceptance of which is at the sole discretion of the City. The maximum value of the In-Kind Improvements Agreement shall not exceed 100% of the required fee.
(5) Administrative Costs. Project sponsors that pursue an In-Kind Improvements Agreement will be billed time and materials for any administrative costs that the Planning Department or any other City entity incurs in negotiating, drafting, and monitoring compliance with the In-Kind Improvements Agreement.
(6) Credit for On-Site Community Facilities and Childcare Facilities. Notwithstanding the foregoing provisions of subsection (c), a project that filed its first environmental application on or before November 18, 2010 only, is eligible for a credit for on-site community facilities or Childcare Facilities as follows: The project sponsor shall receive a credit not to exceed $1.12 multiplied by the net addition of occupiable square feet of residential use in the residential development project. To qualify for a credit for community facilities or Childcare Facility, the facility shall be open and available to the general public on the same terms and conditions as to residents of the residential development project in which the facilities are located. Subject to the review and approval of the Planning Commission, the project sponsor may apply for a credit up to 100% of the required fee, as stated in subsection (c) above.
AMENDMENT HISTORY
SEC. 420.4. IMPOSITION OF REQUIREMENTS.
(a) Determination of Requirements. The Department shall determine the applicability of Section 420.1 et seq. to any development project requiring a first construction document and, if Section 420.1 et seq. is applicable, the net addition of gross square feet of residential use subject to its requirements, and shall impose the fee requirements as a condition of approval for issuance of the first construction document for the development project. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Department Notice to Development Fee Collection Unit at DBI. Prior to issuance of the building or site permit for a development project subject to Section 420 et seq., the Department shall notify the Development Fee Collection Unit at DBI of its final determination of any fee requirements, including any fee credits for in-kind improvements, in addition to the other information required by Section 402(b) of this Article.
(c) Development Fee Collection Unit Notice to Department. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the first certificate of occupancy for any development project subject to Section 420.1 et seq. that has elected to satisfy its fee requirement with credits-in-kind improvements. If the Department notifies the Unit at such time that the sponsor has not satisfied the in-kind improvements requirements of Section 420.3, the Director of DBI shall deny any and all certificates of occupancy until the subject project is brought into compliance.
(d) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Section 420.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Department or the Commission, Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) of this Article shall be followed.
SEC. 420.5. LIEN PROCEEDINGS.
If, for any reason, the fee imposed under Section 420.3 remains unpaid following issuance of the certificate of occupancy, the Development Fee Collection Unit at DBI shall institute lien proceedings to make the entire unpaid balance of the fee, plus interest and any deferral surcharge, a lien against all parcels used for the development project in accordance with Section 408 of this Article and Section 107A.13.215 of the San Francisco Building Code.
SEC. 420.6. VISITACION VALLEY COMMUNITY IMPROVEMENTS FUND.
(a) There is hereby established a separate fund set aside for a special purpose entitled the Visitation Valley Community Facilities and Infrastructure Fund ("Fund"). All monies collected by DBI pursuant to Section 420.3(b) shall be deposited in the Fund which shall be maintained by the Controller. The receipts in the Fund shall be appropriated in accordance with law through the normal budgetary process to fund public infrastructure and other allowable improvements subject to the conditions of this Section.
(b) All monies deposited in the Fund shall be used solely to design, engineer, acquire, develop, and improve neighborhood recreation and open spaces, pedestrian and streetscape improvements, childcare facilities, bicycle infrastructure and other improvements that result in new publicly accessible facilities and related resources within the Visitacion Valley or within 250 feet of the Visitacion Valley Fee Area. The Fund shall be allocated in accordance with Table 420.6A.
Improvement Type | Dollars Received From Residential Development | Dollars Received From Non-Residential Development |
Complete Streets: Pedestrian and Streetscape Improvements, Bicycle Infrastructure | 45% | 45% |
Recreation and Open Space | 30% | 30% |
Childcare | 20% | 20% |
Program Administration | 5% | 5% |
(c) Program Administration. No portion of the Fund may be used, by way of loan or otherwise, to pay any administrative, general overhead, or similar expense of any public entity, except for the administration of this fund in an amount not to exceed 5% of the total annual revenue. Administration of this fund includes maintenance of the Fund, time and materials associated with processing and approving fee payments and expenditures from the Fund (including necessary hearings), reporting or informational requests related to the Fund, and coordination between public agencies regarding determining and evaluating appropriate expenditures of the Fund. Monies from the Fund may be used by the Planning Commission to commission economic analyses for the purpose of revising the fee under Section 418.3 above, to complete a nexus study to demonstrate or update the relationship between residential development and the need for public facilities, or to commission landscape, architectural or other planning, design and engineering services in support of the proposed public improvements. All interest earned on this account shall be credited to the Visitacion Valley Improvements Fund.
(d) Acquisition of New Open Space. A public hearing shall be held by the Recreation and Park Commission to elicit public comment on proposals for the acquisition of property using monies in the Fund or through agreements for financing In-Kind Community Improvements via a Mello-Roos Community Facilities District that will ultimately be maintained by the Department of Recreation and Parks. Notice of public hearings shall be published in an official newspaper at least 20 days prior to the date of the hearing, which notice shall set forth the time, place, and purpose of the hearing. The Parks Commissions may vote to recommend to the Board of Supervisors that it appropriate money from the Fund for acquisition of property for park use and for development of property acquired for park use.
(e) The Planning Commission shall work with other City agencies and commissions, specifically the Department of Recreation and Parks, DPW, and the San Francisco Municipal Transportation Agency, to develop agreements related to the administration of the improvements to existing and development of new public facilities within public rights-of-way or on any acquired property designed for park use. The proposed expenditure plan shall be subject to approval by the Board of Supervisors.
(f) The Director of Planning shall have the authority to prescribe rules and regulations governing the Fund, which are consistent with this Section 420.1 et seq. The Director of Planning, as the head of the Interagency Plan Implementation Committee (IPIC), shall make recommendations to the Board regarding allocation of funds.
AMENDMENT HISTORY
[MARKET AND OCTAVIA COMMUNITY IMPROVEMENTS FUND]
SEC. 421.1. PURPOSE AND FINDINGS SUPPORTING THE MARKET AND OCTAVIA COMMUNITY IMPROVEMENTS FUND.
(a) Purpose. The Board takes legislative notice of the purpose of the Market and Octavia Area Plan ("Area Plan") as articulated in the Market and Octavia Area Plan of the San Francisco General Plan. In general, the Market and Octavia Area Plan embodies the community's vision of a better neighborhood, which achieves multiple objectives including creating a healthy, vibrant transit-oriented neighborhood.
The Market and Octavia Plan Area encompasses a variety of districts, most of which are primarily residential or neighborhood commercial. The Area Plan calls for a maintenance of the well-established neighborhood character in these districts with a shift to a more transit-oriented type of districts. A transit-oriented district, be it neighborhood commercial or residential in character, generates a unique type of infrastructure needs.
The overall objective of the Market and Octavia planning effort is to encourage balanced growth in a centrally located section of the City that is ideal for transit oriented development. The Area Plan calls for an increase in housing and retail capacity simultaneous to infrastructure improvements in an effort to maintain and strengthen neighborhood character. In addition, the Board notes the findings made in the Market and Octavia Area Plan that support the establishment of the Market and Octavia Community Improvements Fund. For example, new construction should not diminish the City's open space, jeopardize the City's Transit First Policy, or place undue burden on the City's service systems. The new residential and non-residential construction should preserve the existing neighborhood services and character, as well as increase the level of service for all modes necessary to support transit-oriented development. New development in the area will create additional impact on the local infrastructure, thus generating a substantial need for community improvements as the district's population and workforce grows.
The purpose of the proposed Market and Octavia Community Infrastructure Impact Fees is to provide specific public improvements, including community open spaces, pedestrian and streetscape improvements and other facilities and services. These improvements are described in the Market and Octavia Area Plan and Neighborhood Plan and the accompanying ordinances, and are necessary to meet established City standards for the provision of such facilities. The Market and Octavia Community Improvements Fund and Community Infrastructure Impact Fee will create the necessary financial mechanism to fund these improvements in proportion to the need generated by new development.
(b) Findings. The Board of Supervisors has reviewed the San Francisco Citywide Nexus Analysis (“Nexus Analysis”), and the San Francisco Infrastructure Level of Service Analysis, both on file with the Clerk of the Board in File No. 230764 and, under Section 401A, adopts the findings and conclusions of those studies and the general and specific findings in that Section, specifically including the Recreation and Open Space Findings, Complete Streets Findings, Childcare Findings, and Transit Infrastructure Findings, and incorporates those by reference herein to support the imposition of the fees under this Section.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; Ord. 25-11, File No. 101464, App. 2/24/2011; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 200-15
, File No. 150790, App. 11/25/2015, Eff. 12/25/2015; Ord. 222-15
, File No. 155521, App. 12/18/2015, Eff. 1/17/2016; Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023)
AMENDMENT HISTORY
Section header amended; former divisions A. and B. redesignated as division (a) and amended; new division (b) added; former divisions C.-E. deleted; Ord. 50-15
, Eff. 5/24/2015. Division (b) amended; Ord. 200-15
, Eff. 12/25/2015 and Ord. 222-15
, Eff. 1/17/2016. Division (b) amended; Ord. 193-23, Eff. 1016/2023.
SEC. 421.2. DEFINITIONS.
See Section 401 of this Article.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
SEC. 421.3. APPLICATION OF COMMUNITY IMPROVEMENTS IMPACT FEE.
(b) Projects subject to the Market and Octavia Community Improvement Impact Fee. The Market and Octavia Community Improvements Impact Fee is applicable to any development project in the Market and Octavia Program Area which results in:
(1) At least one net new residential unit,
(2) Additional space in an existing residential unit of more than 800 gross square feet,
(3) At least one net new group housing facility or residential care facility,
(4) Additional space in an existing group housing or residential care facility of more than 800 gross square feet,
(5) New construction of a non-residential use, or
(6) Additional non-residential space in excess of 800 gross square feet in an existing structure.
(c) Fee Calculation for the Market and Octavia Community Improvement Impact Fee. For development projects for which the Market and Octavia Community Improvements Impact Fee is applicable:
(1) Any net addition of gross square feet shall pay per the Fee Schedule in Table 421.3A, and
(2) Any replacement of gross square feet or change of use shall pay per the Fee Schedule in Table 421.3B.
Residential | Non-residential |
$9.00/gsf | $3.40/gsf |
Residential to Residential or Non-residential; or Non-residential to Non-residential | Non-Residential to Residential | PDR to Residential | PDR to Non-Residential |
$0 | $5.60/gsf | $7.30/gsf | $1.70/gsf |
(d) Option for In-Kind Provision of Community Improvements and Fee Credits. Project sponsors may propose to directly provide community improvements to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a fee waiver for the Market and Octavia Community Improvements Impact Fee from the Planning Commission, subject to the following rules and requirements:
(1) Approval criteria. The City shall not enter into an In-Kind Agreement unless the proposed in-kind improvements meet an identified community need and where they substitute for improvements that could be provided by the Market and Octavia Community Improvements Fund (as described in Section 421.5). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Market and Octavia Area Plan, by the Interagency Plan Implementation Committee (see Section 36 of the Administrative Code), the Market and Octavia Citizens Advisory Committee, or other prioritization processes related to Market and Octavia community improvements programming. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of this In-Kind Improvements Agreement.
(2) Valuation. The Director of Planning shall determine the appropriate value of the proposed in-kind improvements. For the purposes of calculating the total value, the project sponsor shall provide the Planning Department with a cost estimate for the proposed in-kind improvement(s) from two independent sources or, if relevant, real estate appraisers. If the City has completed a detailed site-specific cost estimate for a planned improvement this may serve as one of the cost estimates provided it is indexed to current cost of construction.
(3) Content of the In-Kind Improvements Agreement. The In-Kind Improvements Agreement shall include at least the following items:
(i) A description of the type and timeline of the proposed in-kind improvements.
(ii) The appropriate value of the proposed in-kind improvement, as determined in subsection (2) above.
(iii) The legal remedies in the case of failure by the project sponsor to provide the in-kind improvements according to the specified timeline and terms in the agreement. Such remedies shall include the method by which the City will calculate accrued interest.
(4) Approval Process. The Planning Commission must approve the material terms of an In-Kind Agreement. Prior to the parties executing the Agreement, the City Attorney must approve the agreement as to form and to substance. The Director of Planning is authorized to execute the Agreement on behalf of the City. If the Planning Commission approves the In-Kind Agreement, it shall waive the amount of the Market and Octavia Community Improvements Impact Fee by the value of the proposed In-Kind Improvements Agreement as determined by the Director of Planning. No credit shall be made for land value unless ownership of the land is transferred to the City or a permanent public easement is granted, the acceptance of which is at the sole discretion of the City. The maximum value of the In-Kind Improvements Agreement shall not exceed the required Market and Octavia Community Improvements Impact Fee.
(5) Administrative Costs. Project sponsors that pursue an In-Kind Improvements Agreement will be billed time and materials for any administrative costs that the Planning Department or any other City entity incurs in negotiating, drafting, and monitoring compliance with the In-Kind Improvements Agreement.
(e) Option for Financing of Community Improvements or Payment of the Market and Octavia Community Improvements Impact Fee via a Mello Roos Community Facilities District ("CFD"). Applicants may finance In-Kind Community Improvements (subject to subsection (e) above) or payment of the Market and Octavia Community Improvements Impact Fee (subject to subsection (c) above) through the formation of a CFD.
(f) Timing of Fee Payments. The Market and Octavia Community Improvements Impact Fee shall be paid to DBI for deposit into the Market and Octavia Community Improvements Fund at the time required by Section 402(d).
(g) Waiver or Reduction. Development projects may be eligible for a waiver or reduction of impact fees, per Section 406 of this Article. Additionally, applicants that are subject to the downtown parks fee, Section 139, can reduce their contribution to the Market and Octavia Community Improvements Fund by one dollar for every dollar that they contribute to the downtown parks fund, the total fee waiver or reduction granted through this clause shall not exceed 8.2 percent of calculated contribution for residential development or 13.8 percent for commercial development.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; Ord. 25-11, File No. 101464, App. 2/24/2011; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 83-17, File No. 170003, App. 3/24/2017, Eff. 4/23/2017; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020; Ord. 188-25, File No. 250680, App. 10/6/2025, Eff. 11/6/2025)
AMENDMENT HISTORY
SEC. 421.4. IMPOSITION OF COMMUNITY INFRASTRUCTURE IMPACT FEE.
(a) Determination of Requirements. The Department shall determine the applicability of Section 421.1 et seq. to any development project requiring a first construction document and, if Section 421.1 is applicable, the number of gross square feet of each type of space subject to its requirements, and shall impose these requirements as a condition of approval for issuance of the first construction document for the development project to mitigate the development impacts. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Department Notice to Development Fee Collection Unit at DBI. After the Department has made its final determination of the net addition of gross square feet of each type of space subject to Section 421.1 et seq., it shall immediately notify the Development Fee Collection Unit at DBI of its determination in addition to the other information required by Section 402(b) of this Article.
(c) Sponsor's Choice to Fulfill Requirements. Prior to issuance of a building or site permit for a development project subject to the requirements of Section 421.1 et seq., the sponsor shall elect an option under Section 421.3 to fulfill the requirements of Section 421.1 et seq. and notify the Department of their choice.
(d) Department's Notice to Development Fee Collection Unit of Sponsor's Choice. After the project sponsor has notified the Department of the choice to fulfill the requirements of Section 421.1 et seq., the Department shall immediately notify the Development Fee Collection Unit at DBI of the project sponsor's choice.
(e) Development Fee Collection Unit Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the first certificate of occupancy for any development project subject to Section 421.1 et seq. that has elected to fulfill all or part of the requirement with an option other than payment of a fee. If the Department notifies the Unit at such time that the sponsor has not satisfied the requirements, the Director of DBI shall deny any and all certificates of occupancy until the subject project is brought into compliance with the requirements of Section 421.1 et seq.
(f) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Section 421.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Department or the Commission, Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) shall be followed.
SEC. 421.5. MARKET AND OCTAVIA COMMUNITY IMPROVEMENTS FUND.
(a) Purpose. There is hereby established a separate fund set aside for a special purpose entitled the Market and Octavia Community Improvements Fund ("Fund"). All monies collected by DBI pursuant to Section 421.3(b) shall be deposited in the Fund maintained by the Controller. The receipts in the Fund shall be appropriated in accordance with law through the normal budgetary process to fund public infrastructure and other allowable improvements subject to the conditions of this Section.
(b) Use of Funds. The Fund shall be administered by the Board of Supervisors.
(1) Infrastructure. All monies deposited in the Fund shall be used to design, engineer, acquire, improve, and develop neighborhood open spaces, pedestrian and streetscape improvements, bicycle infrastructure, childcare facilities, and other improvements that result in new publicly-accessible facilities and related resources within the Market and Octavia Plan Area or within 1,250 feet of the Plan Area. Funds may be used for childcare facilities that are not publicly owned or publicly-accessible. The improvements, where applicable, shall be consistent with the Market and Octavia Civic Streets and Open Space System as described in Map 5 of the Market and Octavia Area Plan of the General Plan, and Market and Octavia Community Improvements Program. The funds shall be allocated in accordance with Table 421.5A.
Improvement Type | Dollars Received From Residential Development | Dollars Received From Non-Residential Development |
Complete Streets: Pedestrian and Streetscape Improvements, Bicycle Facilities | 44% | 61% |
Transit | 22% | 20% |
Recreation and Open Space | 21% | 14% |
Childcare | 8% | Not applicable |
Program Administration | 5% | 5% |
(2) Program Administration. No portion of the Fund may be used, by way of loan or otherwise, to pay any administrative, general overhead, or similar expense of any public entity, except for the purposes of administering this fund in an amount not to exceed 5 % of the total annual revenue. Administration of this fund includes time and materials associated with processing and approving fee payments and expenditures from the Fund (including necessary hearings), reporting or informational requests related to the Fund, and coordination between public agencies regarding determining and evaluating appropriate expenditures of the Fund. Monies from the Fund may be used by the Planning Commission to commission economic analyses for the purpose of revising the fee or to complete an updated nexus study to demonstrate the relationship between development and the need for public facilities if this is deemed necessary. All interest earned on this account shall be credited to the Market and Octavia Community Improvements Fund.
(c) Acquisition of New Open Space. A public hearing shall be held by the Recreation and Parks Commission to elicit public comment on proposals for the acquisition of property using monies in the Fund in the Fund or through agreements for financing In-Kind Community Improvements via a Mello-Roos Community Facilities District that will ultimately be maintained by the Department of Recreation and Parks. Notice of public hearings shall be published in an official newspaper at least 20 days prior to the date of the hearing, which notice shall set forth the time, place, and purpose of the hearing. The Parks Commission may vote to recommend to the Board of Supervisors that it appropriate money from the Fund for acquisition of property for park use and for development of property acquired for park use.
(d) The Planning Commission shall work with other City agencies and commissions, specifically the Department of Recreation and Parks, DPW, and the San Francisco Municipal Transportation Agency, to develop a proposed expenditure plan, and to develop agreements related to the administration of the improvements to existing and development of new public facilities within public rights-of-way or on any acquired property designed for park use. The proposed expenditure plan shall be approved by the Board of Supervisors.
(e) The Director of Planning shall have the authority to prescribe rules and regulations governing the Fund, which are consistent with this Section 421.1 et seq. The Director of Planning, as the head of the Interagency Plan Implementation Committee (IPIC), shall make recommendations to the Board regarding allocation of funds.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; Ord. 25-11, File No. 101464, App. 2/24/2011; Ord. 263-13, File No. 130549, App. 11/27/2013, Eff. 12/27/2013; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 188-15
, File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 83-17, File No. 170003, App. 3/24/2017, Eff. 4/23/2017; Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020)
AMENDMENT HISTORY
[Former] division (c) amended; Ord. 263-13, Eff. 12/27/2013. Divisions (a)-(b)(2) amended; former division (c) deleted; former divisions (d)-(f) redesignated as (c)-(e) and amended; Ord. 50-15
, Eff. 5/24/2015. Division (b)(1) amended; Ord. 188-15
, Eff. 12/4/2015. Division (b)(1) amended; Ord. 83-17, Eff. 4/23/2017. Division (b)(1) amended; Ord. 126-20, Eff. 8/31/2020.
SEC. 421.6. DIRECTOR OF PLANNING'S EVALUATION AND STUDY.
The Planning Department shall fulfill all relevant evaluation, reporting and study requirements to insure that the fee program remains up to date. These requirements include those outlined in Section 421.6(c), 341.2, and 341.3 of this Code, and Section 36.4 of the Administrative Code. Fulfillment of these reporting requirements shall be coordinated to minimize staff time. Funds to fulfill these requirements should be considered monitoring and program administration.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; repealed by Ord. 200-15
, File No. 150790, App. 11/25/2015, Eff. 12/25/2015)
[BALBOA PARK COMMUNITY IMPROVEMENTS FUND]
SEC. 422.1. PURPOSE AND FINDINGS IN SUPPORT OF BALBOA PARK COMMUNITY IMPROVEMENTS FUND.
(a) Purpose. The Board takes legislative notice of the purpose of the Balboa Park Station Area Plan as articulated in the Balboa Park Station Area Plan of the San Francisco General Plan. The Balboa Park Station Area Plan is a part of the Better Neighborhoods Program that recognizes population growth is beneficial in neighborhoods well-served by transit. As such, the Balboa Park Area Plan aims to strengthen neighborhood character, the neighborhood commercial district, and transit by increasing the housing and retail capacity in the area. This project goal will also help to meet ABAG's projected demand to provide housing in the Bay Area by encouraging the construction of higher density housing. The Balboa Park Plan Area can better accommodate this growth because of its easy access to public transit, proximity to downtown, convenience of neighborhood shops to meet daily needs, and the availability of development opportunity sites. San Francisco's land constraints limit new housing construction to areas of the City not previously designated as residential areas, infill sites, or areas that can absorb increased density. The Balboa Park Plan Area presents an opportunity to both absorb increased density and provide infill development within easy walking distance to transit while maintaining neighborhood character. The Plan builds on existing neighborhood character and establishes new standards for amenities necessary for a transit-oriented neighborhood.
In addition, the Board takes legislative notice of the findings made in the Balboa Park Station Area Plan that support the establishment of the Balboa Park Community Improvements Fund.
(b) Findings. The Board of Supervisors has reviewed the San Francisco Citywide Nexus Analysis (“Nexus Analysis”), and the San Francisco Infrastructure Level of Service Analysis, both on file with the Clerk of the Board in File No. 230764 and, under Section 401A, adopts the findings and conclusions of those studies and the general and specific findings in that Section, specifically including the Recreation and Open Space Findings, Complete Streets Findings, Childcare Findings, and Transit Infrastructure Findings, and incorporates those by reference herein to support the imposition of the fees under this Section.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 200-15
, File No. 150790, App. 11/25/2015, Eff. 12/25/2015; Ord. 222-15
, File No. 155521, App. 12/18/2015, Eff. 1/17/2016; Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023)
AMENDMENT HISTORY
SEC. 422.2. DEFINITIONS.
See Section 401 of this Article.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
SEC. 422.3. APPLICATION OF COMMUNITY IMPROVEMENT IMPACT FEE.
(a) Application. Section 422.1 et seq. shall apply to any development project located in the Balboa Park Community Improvements Program Area.
(b) Projects subject to the Balboa Park Impact Fee. The Balboa Park Impact Fee is applicable to any development project in the Balboa Park Program Area which results in:
(1) At least one net new residential unit,
(2) Additional space in an existing residential unit of more than 800 gross square feet,
(3) At least one net new group housing facility or residential care facility,
(4) Additional space in an existing group housing or residential care facility of more than 800 gross square feet,
(5) New construction of a non-residential use, or
(6) Additional non-residential space in excess of 800 gross square feet in an existing structure.
(c) Fee Calculation for the Balboa Park Impact Fee. For development projects for which the Balboa Park Impact Fee is applicable:
(1) Any net addition of gross square feet shall pay per the Fee Schedule in Table 422.3A, and
(2) Any replacement of gross square feet or change of use shall pay per the Fee Schedule in Table 422.3B.
Residential | Non-residential |
$8.00/gsf | $1.50/gsf |
Residential to Residential or Non-residential; or Non-residential to Non-residential | Non-Residential to Residential | PDR to Residential | PDR to Non-Residential |
$0 | $6.50/gsf | $7.25/gsf | $0.75/gsf |
(d) Option for In-Kind Provision of Community Improvements and Fee Credits. Project sponsors may propose to directly provide community improvements to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a fee waiver for the Balboa Park Impact Fee from the Planning Commission, subject to the following rules and requirements:
(1) Approval criteria. The City shall not enter into an In-Kind Agreement unless the proposed in-kind improvements meet an identified community need as analyzed in the Balboa Park Community Improvements Program and where they substitute for improvements that could be provided by the Balboa Park Community Improvements Fund (as described in Section 422.5). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Balboa Park Area Plan, by the Interagency Plan Implementation Committee (see Section 36 of the Administrative Code), or other prioritization processes related to Balboa Park community improvements programming. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of this In-Kind Improvements Agreement.
(2) Valuation. The Director of Planning shall determine the appropriate value of the proposed in-kind improvements. For the purposes of calculating the total value, the project sponsor shall provide the Planning Department with a cost estimate for the proposed in-kind improvement(s) from two independent sources or, if relevant, real estate appraisers. If the City has completed a detailed site-specific cost estimate for a planned improvement this may serve as one of the cost estimates provided it is indexed to current cost of construction.
(3) Content of the In-Kind Improvements Agreement. The In-Kind Improvements Agreement shall include at least the following items:
(i) A description of the type and timeline of the proposed in-kind improvements.
(ii) The appropriate value of the proposed in-kind improvement, as determined in subsection (2) above.
(iii) The legal remedies in the case of failure by the project sponsor to provide the in-kind improvements according to the specified timeline and terms in the agreement. Such remedies shall include the method by which the City will calculate accrued interest.
(4) Approval Process. The Planning Commission must approve the material terms of an In-Kind Agreement. Prior to the parties executing the Agreement, the City Attorney must approve the agreement as to form and to substance. The Director of Planning is authorized to execute the Agreement on behalf of the City. If the Planning Commission approves the In-Kind Agreement, it shall waive the amount of the Balboa Park Impact Fee by the value of the proposed In-Kind Improvements Agreement as determined by the Director of Planning. No credit shall be made for land value unless ownership of the land is transferred to the City or a permanent public easement is granted, the acceptance of which is at the sole discretion of the City. The maximum value of the In-Kind Improvements Agreement shall not exceed the required Balboa Park Impact Fee.
(5) Administrative Costs. Project sponsors that pursue an In-Kind Improvements Agreement will be billed time and materials for any administrative costs that the Planning Department or any other City entity incurs in negotiating, drafting, and monitoring compliance with the In-Kind Improvements Agreement.
(e) Timing of Fee Payments. The Balboa Park Impact Fee shall be paid to DBI for deposit into the Balboa Park Community Improvements Fund at the time required by Section 402(d).
(f) Waiver or Reduction. Development projects may be eligible for a waiver or reduction of impact fees, per Section 406 of this Article.
AMENDMENT HISTORY
SEC. 422.4. IMPOSITION OF COMMUNITY IMPROVEMENTS IMPACT FEE.
(a) Determination of Requirements. The Department shall determine the applicability of Section 422.1 et seq. to any development project requiring a building or site permit and, if Section 422.1 et seq. is applicable, the amount of Community Improvements Impact Fees required and shall impose these requirements as a condition of approval of the development project. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Department Notice to Development Fee Collection Unit at DBI. Prior to the issuance of a building or site permit for a development project subject to the requirements of Section 422.1 et seq., the Department shall notify the Development Fee Collection Unit at DBI of its final determination of the amount of Community Improvements Impact Fees required, including any reductions calculated for an In-Kind Improvements Agreement, in addition to the other information required by Section 402(b) of this Article.
(c) Development Fee Collection Unit Notice to Department Prior to issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the first certificate of occupancy for any development project subject to Section 422.1 et seq. that has elected to fulfill all or part of its Community Improvements Impact Fee requirement with an In-Kind Improvements Agreement. If the Department notifies the Unit at such time that the sponsor has not satisfied any of the terms of the In-Kind Improvements Agreement, the Director of DBI shall deny any and all certificates of occupancy until the subject project is brought into compliance with the requirements of Section 422.1 et seq., either through conformance with the In-Kind Improvements Agreement or payment of the remainder of the Community Improvements Impact Fees that would otherwise have been required, plus a deferral surcharge as set forth in Section 107A.13.3.1 of the San Francisco Building Code.
(d) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Section 422.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Department or the Commission, Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) of this Article shall be followed.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 55-11, File No. 101523, App. 3/23/2011)
SEC. 422.5. BALBOA PARK COMMUNITY IMPROVEMENTS FUND.
(a) Purpose. There is hereby established a separate fund set aside for a special purpose entitled the Balboa Park Community Improvements Fund ("Fund"). All monies collected by the Development Fee Collection Unit at DBI pursuant to Section 422.3 shall be deposited in the Fund maintained by the Controller. The receipts in the Fund shall be appropriated in accordance with law through the normal budgetary process to fund public infrastructure and other allowable improvements subject to the conditions of this Section.
(b) Use of Funds.
(1) Community Improvements. All monies deposited in the Fund shall be used to design, engineer, acquire, improve, and develop pedestrian and streetscape improvements, bicycle infrastructure, transit, parks, plazas and open space, as defined in the Balboa Park Community Improvements Program with the Plan Area. Funds may be used for childcare facilities that are not publicly owned or "publicly-accessible." The Fund shall be allocated in accordance with Table 422.5.
Improvement Type | Dollars Received From Residential Development | Dollars Received From Commercial Development |
Complete Streets: Pedestrian and Streetscape Improvements, Bicycle Facilities | 38% | 38% |
Transit | 12% | 12% |
Recreation and Open Space | 30% | 30% |
Childcare | 15% | 15% |
Program Administration | 5% | 5% |
(2) Program Administration. No portion of the Fund may be used, by way of loan or otherwise, to pay any administrative, general overhead, or similar expense of any public entity, except for the purposes of administering this Fund in an amount not to exceed 5% of the total annual revenue. Administration of this Fund includes maintenance of the Fund, time and materials associated with processing and approving fee payments and expenditures from the Fund (including necessary hearings), reporting or informational requests related to the Fund, and coordination between public agencies regarding determining and evaluating appropriate expenditures of the Fund Monies from the Fund may be used by the Planning Commission to commission economic analyses for the purpose of revising the fee, or to complete an updated nexus study to demonstrate the relationship between development and the need for public facilities if this is deemed necessary. All interest earned on this account shall be credited to the Balboa Park Community Improvements Fund.
(c) Acquisition of New Open Space. A public hearing shall be held by the Recreation and Parks Commission to elicit public comment on proposals for the acquisition of property using monies in the Fund that will ultimately be maintained by the Department of Recreation and Parks. Notice of public hearings shall be published in an official newspaper at least 20 days prior to the date of the hearing, which notice shall set forth the time, place, and purpose of the hearing. The Parks Commission may vote to recommend to the Board of Supervisors that it appropriate money from the Fund for acquisition and development of property acquired for park use.
(d) The Planning Department shall work with other City agencies and commissions, specifically the Department of Recreation and Parks, DPW and MTA, to develop a proposed expenditure plan and to develop agreements related to the administration of the improvements to existing public facilities and development of new public facilities within public rights-of-way or on any acquired public property. The proposed expenditure plan shall be approved by the Board of Supervisors.
(e) The Director of Planning shall have the authority to prescribe rules and regulations governing the Fund, which are consistent with this Section 422 et seq. The Director of Planning, as the head of the Inter-Agency Plan Implementation Committee (IPIC), shall make recommendations to the Board regarding allocation of funds.
AMENDMENT HISTORY
[Former] division (d) amended; Ord. 263-13, Eff. 12/27/2013. Divisions (a)-(b)(2) amended; former divisions (c) and (d) deleted; former divisions (e)-(g) redesignated as [now former] divisions (d)-(f) and amended; Ord. 50-15
, Eff. 5/24/2015. Divisions (b)(1) and (b)(2) amended; former divisions (d)-(f) redesignated as (c)-(e); Ord. 188-15
, Eff. 12/4/2015.
[EASTERN NEIGHBORHOODS IMPACT FEES AND PUBLIC BENEFITS FUND]
SEC. 423.1. PURPOSE AND FINDINGS SUPPORTING EASTERN NEIGHBORHOODS IMPACT FEES AND COMMUNITY IMPROVEMENTS FUND.
(a) Purpose. The Board takes legislative notice of the purpose of the Eastern Neighborhoods Area Plan as articulated in the Eastern Neighborhoods Area Plan of the San Francisco General Plan. San Francisco’s Housing Element establishes the Eastern Neighborhoods as a target area for development of new housing to meet San Francisco’s identified housing targets. The release of some of the area’s formerly industrial lands, no longer needed to meet current industrial or PDR needs, offer an opportunity to achieve higher affordability, and meet a greater range of need. The Mission, Showplace Square - Potrero Hill, Central SoMa, East SoMa, Western SoMa and Central Waterfront Area Plans of the General Plan (Eastern Neighborhoods Plans) thereby call for creation of new zoning intended specifically to meet San Francisco’s housing needs, through higher affordability requirements and through greater flexibility in the way those requirements can be met, as described in Section 419. To support this new housing, other land uses, including PDR businesses, retail, office and other workplace uses will also grow in the Eastern Neighborhoods.
This new development will have an extraordinary impact on the Plan Area's already deficient neighborhood infrastructure. New development will generate needs for a significant amount of public open space and recreational facilities; transit and transportation, including streetscape and public realm improvements; community facilities and services, including child care; and other amenities, as described in the Eastern Neighborhoods Community Improvements Program, on file with the Clerk of the Board in File No. 081155.
A key policy goal of the Eastern Neighborhoods Plans is to provide a significant amount of new housing affordable to low, moderate and middle income families and individuals, along with "complete neighborhoods" that provide appropriate amenities for these new residents. The Plans obligate all new development within the Eastern Neighborhoods to contribute towards these goals, by providing a contribution towards affordable housing needs and by paying an Eastern Neighborhoods Impact Fee.
(b) Findings. The Board of Supervisors has reviewed the San Francisco Citywide Nexus Analysis (“Nexus Analysis”), and the San Francisco Infrastructure Level of Service Analysis, both on file with the Clerk of the Board in File No. 230764 and, under Section 401A, adopts the findings and conclusions of those studies and the general and specific findings in that Section, specifically including the Recreation and Open Space Findings, Complete Streets Findings, Childcare Findings, and Transit Infrastructure Findings, and incorporates those by reference herein to support the imposition of the fees under this Section.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 42-13
, File No. 130002, App. 3/28/2013, Eff. 4/27/2013; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 200-15
, File No. 150790, App. 11/25/2015, Eff. 12/25/2015; Ord. 222-15
, File No. 155521, App. 12/18/2015, Eff. 1/17/2016; Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019; Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023)
AMENDMENT HISTORY
[Former] divisions (a)(3), (d), and (e)(2) amended; Ord. 42-13
, Eff. 4/27/2013. Section header amended; former divisions (a)(1), (a)(2), and (b)(2) deleted; former divisions (a)(3), (b)(1), and (c)(1) redesignated as current division (a) and amended; new division (b) added; former divisions (c)(2)-(e)(3) deleted; Ord. 50-15
, Eff. 5/24/2015. Division (b) amended; Ord. 200-15
, Eff. 12/25/2015 and Ord. 222-15
, Eff. 1/17/2016. Division (a) amended; Ord. 296-18, Eff. 1/12/2019. Division (b) amended; Ord. 193-23, Eff. 10/16/2023.
SEC. 423.2. DEFINITIONS.
In addition to the definitions set forth in Section 401 of this Article, the following definitions shall govern interpretation of Section 423.1 et seq.
(a) Eastern Neighborhoods Base Height. The Height limit immediately prior to the adoption of the following:
(1) The Eastern Neighborhoods Plan (Ordinance No. 298-08, on file with the Clerk of the Board of Supervisors in File No. 081153), regardless of subsequent changes in the Height limit, for parcels within the East SoMa Plan Area at the time of plan adoption;
(2) The Western SoMa Area Plan (Ordinance No. 41-13, on file with the Clerk of the Board of Supervisors in File No. 130001), regardless of subsequent changes in the Height limit, for parcels within the Western SoMa Area Plan at the time of plan adoption; or
(3) Ordinance No. 13-14 (on file with the Clerk of the Board of Supervisors in File No. 131161), regardless of subsequent changes in the Height limit, for parcels added to the East SoMa Plan Area by Ordinance No. 13-14.
(b) Central SoMa Base Height.
(1) For all parcels except those described in subsection (2) below, the Height limit established by the Central SoMa Plan (Ordinance No. 296-18, on file with the Clerk of the Board of Supervisors in File No. 180184), regardless of subsequent changes in the Height limit.
(2) Exception for Narrow Sites. Projects on parcels in the CS Bulk District, as defined in Section 270, with a Height limit greater than 85 feet and with no street or alley frontage greater than 100 feet shall be considered for the purposes of Section 423 et seq. to have a Height limit of 85 feet regardless of the parcel’s actual Height limit.
(c) Eastern Neighborhoods Fee Tiers.
(1) Tier 1.
(A) All development on sites that received a height increase of eight feet or less, received no height increase, or received a reduction in height, as measured from the Eastern Neighborhoods Base Height;
(B) The residential portion of all 100% affordable housing projects;
(C) The residential portion of all projects within the Urban Mixed Use (UMU) district; and
(D) All changes of use within existing structures.
(2) Tier 2. All additions to existing structures or new construction on other sites not listed in subsection (1) above that received a height increase of nine to 28 feet, as measured from the Eastern Neighborhoods Base Height;
(d) Central SoMa Fee Tiers. For all applicable projects, the following Fee Tiers apply:
(1) Tier A.
(A) All development on sites rezoned from SALI or SLI to either CMUO, MUG, MUR, or WMUO with a Height limit at or below 45 feet, pursuant to the adoption of the Central SoMa Area Plan (on file with the Clerk of the Board of Supervisors in File No. 180184).
(B) All development on all other sites that received a Height increase of 15 feet to 45 feet pursuant to the adoption of the Central SoMa Area Plan (on file with the Clerk of the Board of Supervisors in File No. 180184).
(2) Tier B.
(A) All development on sites rezoned from SAL1 or SLI to either CMUO, MUG, MUR, or WMUO with a Height limit of between 46 and 85 feet, pursuant to the adoption of the Central SoMa Area Plan (on file with the Clerk of the Board of Supervisors in File No. 180184).
(B) All development on all other sites that received a Height increase of 46 feet to 85 feet pursuant to the adoption of the Central SoMa Area Plan (on file with the Clerk of the Board of Supervisors in File No. 180184).
(3) Tier C.
(A) For All development on sites rezoned from SALI or SLI to either CMUO, MUG, MUR, or WMUO with a Height limit above 85 feet, pursuant to the adoption of the Central SoMa Area Plan (on file with the Clerk of the Board of Supervisors in File No. 180184).
(B) All development on all other sites that received a Height increase of more than 85 feet pursuant to the adoption of the Central SoMa Area Plan (on file with the Clerk of the Board of Supervisors in File No. 180184).
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; Ord. 42-13
, File No. 130002, App. 3/28/2013, Eff. 4/27/2013; Ord. 188-15
, File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019)
AMENDMENT HISTORY
Divisions (a)(1)(A), (a)(2), and (a)(3) amended; Ord. 42-13
, Eff. 4/27/2013. Divisions (a)(1)(A) and (a)(2) amended; Ord. 188-15
, Eff. 12/4/2015. Division (a) designation removed; former divisions (a)(1)- (a)(3) redesignated as divisions (c)(1)-(c)(3) and amended; new divisions (a)-(a)(3), (b)-(b)(2), (c), and (d)- (d)(3)(B) added; Ord. 296-18, Eff. 1/12/2019.
SEC. 423.3. APPLICATION OF EASTERN NEIGHBORHOODS INFRASTRUCTURE IMPACT FEE.
(a) Application. Section 423.1 et seq. shall apply to any development project located in the Eastern Neighborhoods Program Area.
(b) Projects subject to the Eastern Neighborhoods Infrastructure Impact Fee. The Eastern Neighborhoods Infrastructure Impact Fee is applicable to any development project in the Eastern Neighborhoods Program Area which results in:
(1) At least one net new residential unit,
(2) Additional space in an existing residential unit of more than 800 gross square feet,
(3) At least one net new group housing facility or residential care facility,
(4) Additional space in an existing group housing or residential care facility of more than 800 gross square feet,
(5) New construction of a non-residential use, or
(6) Additional non-residential space in excess of 800 gross square feet in an existing structure.
(c) Fee Calculation for the Eastern Neighborhoods Infrastructure Impact Fee. For development projects for which the Eastern Neighborhoods Infrastructure Impact Fee is applicable:
(1) Any net addition of gross square feet shall pay per the Fee Schedule in Table 423.3A, and
(2) Any replacement of gross square feet or change of use shall pay per the Fee Schedule in Table 423.3B.
Tier (per Sec. 423.2(a)) | Residential | Non-residential | Net TIDF |
1 | $8/gsf | $6/gsf | $10/gsf |
2 | $12/gsf | $10/gsf | $10/gsf |
3 | $16/gsf | $14/gsf | $10/gsf |
Tier (per Sec. 423.3(a)) | Residential to Residential or Non-residential; or Non-residential to Non-residential | Non-Residential to Residential | PDR to Residential | PDR to Non-residential |
1 | $0 | $2/gsf | $5/gsf | $3/gsf |
2 | $0 | $2/gsf | $9/gsf | $7/gsf |
3 | $0 | $2/gsf | $13/gsf | $11/gsf |
(d) Option for In-Kind Provision of Community Improvements and Fee Credits. Project sponsors may propose to directly provide community improvements to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a fee waiver for the Eastern Neighborhoods Infrastructure Impact Fee from the Planning Commission, subject to the following rules and requirements:
(1) Approval Criteria. The City shall not enter into an In-Kind Agreement unless the proposed in-kind improvements meet an identified community need as analyzed in the Eastern Neighborhoods Community Improvements Program and where they substitute for improvements that could be provided by the Eastern Neighborhoods Community Improvements Fund (as described in Section 423.5). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Eastern Neighborhoods Area Plans (Central Waterfront, East SoMa, Western SoMa, Mission, and Showplace Square/Potrero Hill), by the Interagency Plan Implementation Committee (see Section 36 of the Administrative Code), the Eastern Neighborhoods Citizens Advisory Committee, or other prioritization processes related to Eastern Neighborhoods Citizens community improvements programming. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of this In-Kind Improvements Agreement.
(2) Valuation. The Director of Planning shall determine the appropriate value of the proposed in-kind improvements. For the purposes of calculating the total value, the project sponsor shall provide the Planning Department with a cost estimate for the proposed in-kind improvement(s) from two independent sources or, if relevant, real estate appraisers. If the City has completed a detailed site-specific cost estimate for a planned improvement this may serve as one of the cost estimates provided it is indexed to current cost of construction.
(3) Content of the In-Kind Improvements Agreement. The In-Kind Improvements Agreement shall include at least the following items:
(A) A description of the type and timeline of the proposed in-kind improvements.
(B) The appropriate value of the proposed in-kind improvement, as determined in subsection (2) above.
(C) The legal remedies in the case of failure by the project sponsor to provide the in-kind improvements according to the specified timeline and terms in the agreement. Such remedies shall include the method by which the City will calculate accrued interest.
(4) Approval Process. The Planning Commission must approve the material terms of an In-Kind Agreement. Prior to the parties executing the Agreement, the City Attorney must approve the agreement as to form and to substance. The Director of Planning is authorized to execute the Agreement on behalf of the City. If the Planning Commission approves the In-Kind Agreement, it shall waive the amount of the Eastern Neighborhoods Infrastructure Impact Fee by the value of the proposed In-Kind Improvements Agreement as determined by the Director of Planning. No credit shall be made for land value unless ownership of the land is transferred to the City or a permanent public easement is granted, the acceptance of which is at the sole discretion of the City. The maximum value of the In-Kind Improvements Agreement shall not exceed the required Eastern Neighborhoods Infrastructure Impact Fee.
(5) Administrative Costs. Project sponsors that pursue an In-Kind Improvements Agreement will be billed time and materials for any administrative costs that the Planning Department or any other City entity incurs in negotiating, drafting, and monitoring compliance with the In-Kind Improvements Agreement.
(e) Timing of Fee Payments. The Eastern Neighborhoods Infrastructure Impact Fee shall be paid to DBI for deposit into the Eastern Neighborhoods Community Improvements Fund at the time required by Section 402(d).
(f) Waiver or Reduction of Fees. Development projects may be eligible for a waiver or reduction of impact fees, pursuant to Section 406 of this Article. Additionally, office projects under 50,000 square feet, other non-residential projects, and residential projects in the Central SoMa Special Use District may reduce their required contribution to the Eastern Neighborhoods Community Improvements Fund as follows: for every gross square foot of PDR space required by Planning Code Section 202.8, the project may waive payment for four gross square feet of the Eastern Neighborhoods Infrastructure Impact Fee.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; Ord. 42-13
, File No. 130002, App. 3/28/2013, Eff. 4/27/2013; Ord. 56-13
, File No. 130062, App. 3/28/2013, Eff. 4/27/2013; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020)
AMENDMENT HISTORY
Division (d)(1) amended; Ord. 42-13
, Eff. 4/27/2013. Tables 423.3A and 423.3B and division (d)(1) amended; former divisions (d)(3)(i) through (iii) redesignated as (d)(3)(A) through (C); Ord. 56-13
, Eff. 4/27/2013. Division (e) amended; Ord. 50-15
, Eff. 5/24/2015. Divisions (d)(1) and (f) amended; divisions (f)(1) and (f)(2) deleted; Ord. 296-18, Eff. 1/12/2019. Division (e) amended; Ord. 63-20, Eff. 5/25/2020.
SEC. 423.4. IMPOSITION OF EASTERN NEIGHBORHOODS INFRASTRUCTURE IMPACT FEE.
(a) Determination of Requirements. The Department shall determine the applicability of Section 423.1 et seq. to any development project requiring a first construction document and, if Section 423.1 et seq. is applicable, the amount of Eastern Neighborhoods Infrastructure Impact Fees required and shall impose these requirements as a condition of approval for issuance of the first construction document for the development project. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Department Notice to Development Fee Collection Unit at DBI. Prior to the issuance of a building or site permit for a development project subject to the requirements of Section 423.1 et seq., the Department shall notify the Development Fee Collection Unit at DBI of its final determination of the amount of Eastern Neighborhoods Infrastructure Impact Fees required, including any reductions calculated for an In-Kind Improvements Agreement, in addition to the other information required by Section 402(b) of this Article.
(c) Development Fee Collection Unit Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the first certificate of occupancy for any development project subject to Section 422.1 et seq. that has elected to fulfill all or part of its Eastern Neighborhoods Impact Fee requirement with an In-Kind Improvements Agreement. If the Department notifies the Unit at such time that the sponsor has not satisfied any of the terms of the In-Kind Improvements Agreement, the Director of DBI shall deny any and all certificates of occupancy until the subject project is brought into compliance with the requirements of Section 422.1 et seq., either through conformance with the In-Kind Improvements Agreement or payment of the remainder of the Eastern Neighborhood Infrastructure Impact Fees that would otherwise have been required, plus a deferral surcharge as set forth in Section 107A.13.3.1 of the San Francisco Building Code.
(d) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Section 422.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Department or the Commission, Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) of this Article shall be followed.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 55-11, File No. 101523, App. 3/23/2011)
SEC. 423.5. THE EASTERN NEIGHBORHOODS COMMUNITY IMPROVEMENTS FUND.
(a) Purpose. There is hereby established a separate fund set aside for a special purpose entitled the Eastern Neighborhoods Community Improvements Fund ("Fund"). All monies collected by the Development Fee Collection Unit at DBI pursuant to Section 423.3(e) shall be deposited in the Fund maintained by the Controller. The receipts in the Fund shall be appropriated in accordance with the normal budgetary process to fund Community Improvements subject to the conditions of this Section. Monies collected by the Development Fee Collection Unit at DBI pursuant to Section 423.3 shall be deposited as follows:
(1) For projects located in any zoning districts in the Eastern Neighborhoods Program Area, excluding Designated Affordable Housing Zones, DBI shall deposit 100% of the funds in the Eastern Neighborhoods Community Improvements Fund maintained by the Controller.
(2) For projects located in Designated Affordable Housing Zones, DBI shall deposit 25% of the funds in the Eastern Neighborhoods Community Improvement Fund and 75% in the Citywide Affordable Housing Fund, established in Administrative Code Section 10.100-49, but the funds shall be separately accounted for and expended as provided in this Section.
(b) Use of Funds. The Fund shall be administered by the Board of Supervisors.
(1) All monies deposited in the Fund or credited against Fund obligations shall be used to design, engineer, acquire, improve, and develop public open space and recreational facilities; transit, streetscape and public realm improvements; and child care facilities. Funds may be used for childcare facilities that are not publicly owned or publicly-accessible.
(A) Funds collected from all zoning districts in the Eastern Neighborhoods Program Area, excluding Designated Affordable Housing Zones shall be allocated to accounts by improvement type according to Table 423.5.
(B) Funds collected in Designated Affordable Housing Zones, as defined in Section 401, shall be allocated to accounts by improvement type as described in Table 423.5A.
Improvement Type | Dollars Received From Residential Development | Dollars Received From Non-Residential/Commercial Development |
Complete Streets: Pedestrian and Streetscape Improvements, Bicycle Facilities | 31% | 34% |
Transit | 10% | 53% |
Recreation and Open Space | 47.5% | 6% |
Childcare | 6.5% | 2% |
Program Administration | 5% | 5% |
* Does not apply to Designated Affordable Housing Zones, which are addressed in Table 423.5A
Improvement Type | Dollars Received From Residential Development | Dollars Received From Non-Residential/Commercial Development |
Affordable Housing preservation and development | 75% | n/a |
Complete Streets: Pedestrian and Streetscape Improvements, Bicycle Facilities | 4% | 36% |
Transit | 6% | 53% |
Recreation and Open Space | 10% | 6% |
Program administration | 5% | 5% |
(2) Program Administration. No portion of the Fund may be used, by way of loan or otherwise, to pay any administrative, general overhead, or similar expense of any public entity, except for the purposes of administering this Fund in an amount not to exceed 5% of the total annual revenue. Administration of this fund includes maintenance of the Fund, time and materials associated with processing and approving fee payments and expenditures from the Fund (including necessary hearings), reporting or informational requests related to the Fund, and coordination between public agencies regarding determining and evaluating appropriate expenditures of the Fund. Monies from the Fund may be used by the Planning Commission to commission economic analyses for the purpose of revising the fee, or to complete a nexus study to demonstrate or update the relationship between development and the need for public facilities, or to commission landscape, architectural or other planning, design and engineering services in support of the proposed public improvement. All interest earned on this account shall be credited to the Eastern Neighborhoods Community Improvements Fund.
(c) Funds shall be allocated to accounts by improvement type as described below:
(1) Funds collected from all zoning districts in the Eastern Neighborhoods Program Area, excluding Designated Affordable Housing Zones shall be allocated to accounts by improvement type according to Table 423.5. Funds collected from MUR Zoning Districts outside of the boundaries of either the East SoMa or Western SoMa Area Plans shall be allocated to accounts by improvement type according to Table 423.5.
(2) Funds collected in Designated Affordable Housing Zones, as defined in Section 401, shall be allocated to accounts by improvement type as described in Table 423.5A. For funds allocated to affordable housing, MOHCD shall expend the funds as follows:
(A) All funds collected from projects in the Mission NCT shall be expended on housing programs and projects within the Mission Area Plan boundaries.
(B) Collectively, the first $10 million in housing fees collected between the two Designated Affordable Housing Zones shall be utilized for the acquisition and rehabilitation of existing housing.
(d) The Planning Department shall work with other City agencies and commissions, specifically the Department of Recreation and Parks, DPW and MFA to develop a proposed expenditure plan, and to develop agreements related to the administration of the improvements to existing public facilities and development of new public facilities within public rights-of way or on any acquired public property. The proposed expenditure plan shall be approved by the Board of Supervisors.
(e) Acquisition of New Open Space. A public hearing shall be held by the Recreation and Parks Commissions to elicit public comment on proposals for the acquisition of property using monies in the Fund that will ultimately be maintained by the Department of Recreation and Parks. Notice of public hearings shall be published in an official newspaper at least 20 days prior to the date of the hearing, which notice shall set forth the time, place, and purpose of the hearing. The Parks Commissions may vote to recommend to the Board of Supervisors that it appropriate money from the Fund for acquisition and development of property acquired for park use.
(f) Within 60 days of receiving the Eastern Neighborhoods Capital Expenditure Evaluation Report as specified in Administrative Code Section 10E.2(c), the Office of the Controller shall assess whether funds collected from the Eastern Neighborhoods Community Improvement Fee are being effectively utilized for capital projects serving the Eastern Neighborhoods, and whether such projects are successfully advancing towards implementation, as set forth in the abovementioned Section. Based on this assessment, the following shall occur:
(1) If the Controller determines that the funds have been effectively utilized as set forth in Section 10E.2(c) of the Administrative Code, the Controller shall issue an affirmative finding to the Board of Supervisors and the Planning Commission certifying that the intent of this aforementioned Section is being met. No further Controller action is necessary for purposes of this Subsection.
(2) If the Controller fails to issue the certification described in Subsection (f)(1) above or if the Controller determines that the fees are not being effectively utilized as set forth in Administrative Code Section 10E.2(c) and notifies the Board of Supervisors and Planning Commission of this determination, then the following shall occur:
(A) Any project specified below within the Eastern Neighborhoods Area Plan that has not already received final and effective approvals from the Planning Department, Zoning Administrator, and/or the Planning Commission, shall require a conditional use authorization, in addition to any other approvals necessary under the Planning Code:
(i) Residential projects containing more than 10 new units that have not received issuance of their first site or building permit; or
(ii) Non-residential projects containing a net new addition or new construction of 10,000 square feet or more that have not received issuance of their first site or building permit.
(3) Elimination of interim conditional use requirement.
(A) At any time after the Controller has determined that Eastern Neighborhood impact fees are not being effectively utilized as set forth in Section 423.5(f)(2) above, or fails to certify that they are being effectively utilized as set forth in Section 423.5(f)(1), the Planning Department may provide the Controller with a newly updated or revised Eastern Neighborhoods Capital Expenditure Evaluation Report.
(B) Within 60 days of receiving an updated or revised Report, the Office of the Controller shall determine whether funds collected from the Eastern Neighborhoods Community Improvement Fee are being effectively utilized for capital projects serving the Eastern Neighborhoods consistent with the intent of the Section 10E.2(c) of the Administrative Code.
(C) If, on the basis of a new, updated, or revised Eastern Neighborhoods Capital Expenditure Evaluation Report, the Controller determines that the development impact fees collected to date are being effectively utilized as set forth in Section 423.5(f)(1) above, any projects within the Eastern Neighborhoods Plan Area that required a conditional use authorization on an interim basis as set forth in Section 423.5(f)(2) shall no longer require such conditional use authorization unless the underlying use requires conditional use authorization independently.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; Ord. 196-11
, File No. 110786, App. 10/4/2011, Eff. 11/3/2011; Ord. 42-13
, File No. 130002, App. 3/28/2013, Eff. 4/27/2013; Ord. 56-13
, File No. 130062, App. 3/28/2013, Eff. 4/27/2013; Ord. 263-13, File No. 130549, App. 11/27/2013, Eff. 12/27/2013; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 143-15
, File No. 150568, App. 8/6/2015, Eff. 9/5/2015; Ord. 188-15
, File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 200-15
, File No. 150790, App. 11/25/2015, Eff. 12/25/2015; Ord. 222-15
, File No. 155521, App. 12/18/2015, Eff. 1/17/2016; Ord. 202-18, File No. 180557, App. 8/10/2018, Eff. 9/10/2018; Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020)
AMENDMENT HISTORY
Former Tables 423.6 and 423.6A redesignated as Tables 423.5 and 423.5A, respectively, and internal references adjusted accordingly; section references corrected throughout; Ord. 196-11
, Eff. 11/3/2011. Divisions (b)(1) and [former] (c)(3) amended; Ord. 42-13
, Eff. 4/27/2013. Division (a) and Table 423.5 note amended; Ord. 56-13
, Eff. 4/27/2013. Division (d) amended; Ord. 263-13, Eff. 12/27/2013. Section header and division (a) amended, new divisions (a)(1) and (a)(2) added; divisions (b) and (b)(1) amended; new divisions (b)(1)(A) and (b)(1)(B) added; Tables 423.5 and 423.5A amended; divisions (b)(2)-(c)(2)(B) amended; former division (c)(3) deleted; divisions (d) and (e) amended; former divisions (f) and (g) deleted; former divisions (h)-(h)(C)(iii) redesignated as (f)-(f)(3)(C) and internal references adjusted accordingly; current divisions (f), (f)(3)(B), and (f)(3)(C) amended; Ord. 50-15
, Eff. 5/24/2015. Division (a)(2) amended; Ord. 143-15
, Eff. 9/5/2015. Division (a), Table 423.5A, and divisions (b)(2) and (c)(2) amended; Ord. 188-15
, Eff. 12/4/2015. Table 423.5A amended; Ord. 200-15
, Eff. 12/25/2015 and Ord. 222-15
, Eff. 1/17/2016. Division (c)(2) amended; Ord. 202-18, Eff. 9/10/2018. Divisions (b)(1)(B) and (c)(2) amended; division (c)(2)(B) deleted; Ord. 296-18, Eff. 1/12/2019. Division (c)(2)(C) redesignated as (c)(2)(B); Ord. 63-20, Eff. 5/25/2020.
[VAN NESS & MARKET AFFORDABLE HOUSING AND NEIGHBORHOOD INFRASTRUCTURE]
SEC. 424.1. FINDINGS SUPPORTING THE VAN NESS & MARKET AFFORDABLE HOUSING AND NEIGHBORHOOD INFRASTRUCTURE FEE AND PROGRAM.
(a) Affordable Housing. The Van Ness and Market Residential Special Use District ("SUD") enables the creation of a very dense residential neighborhood through significant increases in development potential. This increase in development potential permits an increase in market rate housing development. As described in Section 415.1, affordable housing is a priority for San Francisco and additional demand for affordable housing is closely correlated to the development of new market rate housing. At the direction of the Board of Supervisors and as part of a larger analysis of development impact fees in the City, the City contracted with Keyser Marston Associates to prepare a nexus analysis in support of the Inclusionary Housing Program, or an analysis of the impact of development of market rate housing on affordable housing supply and demand.
The City's Inclusionary Housing Program including the in-lieu fee provision which is offered as an alternative to building units within market rate projects, is not subject to the requirements of the Mitigation Fee Act, Government Code Sections 66000 et seq. Notwithstanding this policy, as an additional support measure, the City prepared a nexus study consistent with the Mitigation Fee Act to determine whether the Inclusionary Affordable Housing Program was supported by such analysis. The final nexus study can be found in the Board of Supervisors File and is incorporated by reference herein. The Board of Supervisors has reviewed the study and the Department's analysis and report of the study and, on that basis finds that the nexus study supports the current Inclusionary Affordable Housing Program requirements as specified in this Section 424.1 et seq. combined with this Affordable Housing Floor Area Ratio ("FAR") Bonus Program. Specifically, the Board finds that the nexus study: identifies the purpose of the fee to mitigate impacts on the demand for affordable housing in the City; identifies the use to which the fee is to be put as being to increase the City's affordable housing supply; and establishes a reasonable relationship between the use of the fee for affordable housing and the need for affordable housing and the construction of new market rate housing. Moreover, the Board finds that the current inclusionary requirements combined with the Affordable Housing FAR Bonus Program are less than the cost of mitigation and do not include the costs of remedying any existing deficiencies. The Board also finds that the study establishes that the current inclusionary requirements combined with the Affordable Housing FAR Bonus Program do not duplicate other City requirements or fees.
Moreover, according to the study undertaken by Seifel Consulting at the direction of the Planning Department, increased development potential in the Van Ness and Market Downtown Residential Special Use district through the increased FAR allowance enables an increased contribution to the Citywide Affordable Housing Fund without discouraging the development of new market rate housing. A copy of said study is on file with the Clerk of the Board of Supervisors.
(b) Neighborhood Infrastructure. The Van Ness & Market Residential SUD enables the creation of a very dense residential neighborhood in an area built for back-office and industrial uses. Projects that seek the FAR bonus above the maximum cap would introduce a very high localized density in an area generally devoid of necessary public infrastructure and amenities, as described in the Market and Octavia Area Plan. While envisioned in the Plan, such projects would create localized levels of demand for open space, streetscape improvements, and public transit above and beyond the levels both existing in the area today and funded by the Market and Octavia Community Improvements Fee. Such projects also entail construction of relatively taller or bulkier structures in a concentrated area, increasing the need for offsetting open space for relief from the physical presence of larger buildings. Additionally, the FAR bonus provisions herein are intended to provide an economic incentive for project sponsors to provide public infrastructure and amenities that improve the quality of life in the area. The bonus allowance is calibrated based on the cost of responding to the intensified demand for public infrastructure generated by increased densities available through the FAR density bonus program.
The Board of Supervisors has reviewed the San Francisco Citywide Nexus Analysis (“Nexus Analysis”), and the San Francisco Infrastructure Level of Service Analysis, both on file with the Clerk of the Board in File No. 230764 and, under Section 401A, adopts the findings and conclusions of those studies and the general and specific findings in that Section, specifically including the Recreation and Open Space Findings, Complete Streets Findings, Childcare Findings, and Transit Infrastructure Findings, and incorporates those by reference herein to support the imposition of the fees under this Section.
(c) Public Improvements. The public improvements acceptable in exchange for granting the FAR bonus, and that would be necessary to serve the additional population created by the increased density, are listed below. All public improvements shall be consistent with the Market and Octavia Area Plan.
(1) Open Space Acquisition and Improvement. Open Spaces (as described in the Market and Octavia Area Plan), or other open space of comparable size and performance. Open space shall be dedicated for public ownership or permanent easement for unfettered public access and improved for public use, including landscaping, seating, lighting, and other amenities.
(2) Complete Streets. Pedestrian and Streetscape improvements and Bicycle Infrastructure within the Special Use District as described in the Market and Octavia Area Plan, including Van Ness and South Van Ness Avenues, Gough, Mission, McCoppin, Market, Otis, Oak, Fell, Valencia, 11th, 12th, and 13th Streets, along with adjacent alleys. Improvements include sidewalk widening, landscaping and trees, lighting, seating and other street furniture (e.g., newsracks, kiosks, bicycle racks), signage, transit stop and subway station enhancements (e.g., shelters, signage, boarding platforms), roadway and sidewalk paving, public art and living alleys.
(3) Affordable Housing. The type of affordable housing needed in San Francisco is documented in the City’s Consolidated Plan and the Housing Element of the General Plan. New affordable rental housing and ownership housing affordable to households earning less than the median income is greatly needed in San Francisco.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 200-15
, File No. 150790, App. 11/25/2015, Eff. 12/25/2015; Ord. 222-15
, File No. 155521, App. 12/18/2015, Eff. 1/17/2016; Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020; Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023)
AMENDMENT HISTORY
Section header amended; former divisions A.-C. redesignated as (a)-(c); divisions (b) and (c)(2) amended; Ord. 50-15
, Eff. 5/24/2015. Division (b) amended; Ord. 200-15
, Eff. 12/25/2015 and Ord. 222-15
, Eff. 1/17/2016. Section header and divisions (c)(1)-(3) amended; Ord. 126-20, Eff. 8/31/2020. Division (b) amended; Ord. 193-23, Eff. 10/16/2023.
SEC. 424.2. DEFINITIONS.
See Section 401 of this Article.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
SEC. 424.3. APPLICATION OF VAN NESS & MARKET AFFORDABLE HOUSING AND NEIGHBORHOOD INFRASTRUCTURE FEE AND PROGRAM.
(a) Application and Timing of Fee Payments. Section 424.1 et seq. shall apply to any development project located in the Van Ness & Market Residential Special Use District, as established in Section 249.33 of this Code, except as provided under Section 406(k) of this Code. The Fee shall be paid to DBI for deposit into either the Van Ness and Market Downtown Residential Special Use District Affordable Housing Fund or the Van Ness and Market Downtown Residential Special Use District Infrastructure Fund, as applicable, at the time required by Section 402(d) of this Code.
(b) Amount of Fee.
(1) All uses in any development project within the Van Ness & Market Residential Special Use District shall pay $30.00 per net additional gross square foot of floor area in any portion of building area exceeding the base development site FAR of 6:1 up to a base development site FAR of 9:1.
(2) All uses in any development project within the Van Ness & Market Residential Special Use District shall pay $15.00 per net additional gross square foot of floor area in any portion of building area exceeding the base development site FAR of 9:1.
(c) Option for In-Kind Provision of Infrastructure Improvements and Fee Credits. Project sponsors may propose to directly provide community improvements to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a fee waiver from the neighborhood infrastructure portion ($15.00 per net additional gross square foot of floor area) of the Van Ness & Market Residential Special Use District Affordable Housing and Neighborhood Infrastructure Fee from the Planning Commission, subject to the following rules and requirements:
(1) Approval Criteria. The City shall not enter into an In-Kind Agreement unless the proposed in-kind improvements meet an identified community need as analyzed in the Van Ness & Market Affordable Housing and Neighborhood Infrastructure Program and where they substitute for improvements that could be provided by the Van Ness & Market Residential Special Use District Infrastructure Fee Fund (as described in Section 424.5). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Van Ness & Market Affordable Housing and Neighborhood Infrastructure Program. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of this In-Kind Improvements Agreement.
(2) Valuation. The Director of Planning shall determine the appropriate value of the proposed in-kind improvements. For the purposes of calculating the total value, the project sponsor shall provide the Planning Department with a cost estimate for the proposed in-kind improvement(s) from two independent sources or, if relevant, real estate appraisers. If the City has completed a detailed site-specific cost estimate for a planned improvement this may serve as one of the cost estimates provided it is indexed to current cost of construction.
(3) Content of the In-Kind Improvements Agreement. The In-Kind Improvements Agreement shall include at least the following items:
(i) A description of the type and timeline of the proposed in-kind improvements.
(ii) The appropriate value of the proposed in-kind improvement, as determined in subsection (2) above.
(iii) The legal remedies in the case of failure by the project sponsor to provide the in-kind improvements according to the specified timeline and terms in the agreement. Such remedies shall include the method by which the City will calculate accrued interest.
(4) Approval Process. The Planning Commission must approve the material terms of an In-Kind Agreement. Prior to the parties executing the Agreement, the City Attorney must approve the agreement as to form and to substance. The Director of Planning is authorized to execute the Agreement on behalf of the City. If the Planning Commission approves the In-Kind Agreement, it shall waive the amount of the neighborhood infrastructure portion of the Van Ness & Market Residential Special Use District Affordable Housing and Neighborhood Infrastructure Fee by the value of the proposed In-Kind Improvements Agreement as determined by the Director of Planning. No credit shall be made for land value unless ownership of the land is transferred to the City or a permanent public easement is granted, the acceptance of which is at the sole discretion of the City. The maximum value of the In-Kind Improvements Agreement shall not exceed the required neighborhood infrastructure portion of the Van Ness & Market Affordable Housing and Neighborhood Infrastructure Fee.
(5) Administrative Costs. Project sponsors that pursue an In-Kind Improvements Agreement will be billed time and materials for any administrative costs that the Planning Department or any other City entity incurs in negotiating, drafting, and monitoring compliance with the In-Kind Improvement Agreement.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 55-11, File No. 101523, App. 3/23/2011; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020; Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020; Ord. 188-25, File No. 250680, App. 10/6/2025, Eff. 11/6/2025)
AMENDMENT HISTORY
Division (a) amended; Ord. 50-15
, Eff. 5/24/2015. Division (a) amended; Ord. 63-20, Eff. 5/25/2020. Section header and division (a) amended; divisions (b)(i)-(ii) redesignated as (b)(1)-(2) and amended; divisions (c), (c)(1), and (c)(4) amended; Ord. 126-20, Eff. 8/31/2020. Division (a) amended; Ord. 188-25, Eff. 11/6/2025.
SEC. 424.4. VAN NESS & MARKET RESIDENTIAL SPECIAL USE DISTRICT AFFORDABLE HOUSING FUND.
(a) That portion of gross floor area subject to the $30 per gross square foot fee referenced in Section 424.3(b)(1) above shall be deposited into the special fund maintained by the Controller called the Citywide Affordable Housing Fund established by Section 413.9. Except as specifically provided in this Section, collection, management, enforcement, and expenditure of funds shall conform to the requirements related to in-lieu fees in Planning Code Section 415.1 et seq., specifically including, but not limited to, the provisions of Section 415.7.
(b) Priorities for SUD Affordable Housing Fees Implementation. In order to increase the supply of housing Affordable to Qualifying Households in the Market and Octavia Plan Area, the Upper Market NCT District, and to the City, the following is the prioritization of the use of these fees;
(1) First, to increase the supply of housing Affordable to Qualifying Households in the Van Ness & Market Residential Special Use District;
(2) Second, to increase the supply of housing Affordable to Qualifying Households within one mile of the boundaries of the Market and Octavia Area Plan;
(3) Third, to increase the supply of housing Affordable to Qualifying Households in the City and County of San Francisco.
AMENDMENT HISTORY
SEC. 424.5. VAN NESS & MARKET RESIDENTIAL SPECIAL USE DISTRICT INFRASTRUCTURE FUND.
(a) Purpose. There is hereby established a separate fund set aside for a special purpose entitled the Van Ness and Market Neighborhood Infrastructure Fund ("Fund"). That portion of Gross Floor Area subject to the $15.00 per gross square foot fee referenced in Section 424.3(b)(ii) above shall be deposited into the Fund, maintained by the Controller. The receipts of the Fund are hereby appropriated in accordance with law through the normal budgetary process to fund public infrastructure and other allowable improvements subject to the conditions of this Section.
Infrastructure Type | Dollars Received From Residential Development | Dollars Received From Non-Residential Development |
Complete Streets: Pedestrian and Streetscape Improvements, Bicycle Facilities | 44% | 30% |
Transit | 22% | 45% |
Recreation and Open Space | 21% | 20% |
Childcare | 8% | Not applicable |
Program Administration | 5% | 5% |
(1) Infrastructure. All monies deposited in the Fund, plus accrued interest, shall be used solely to design, engineer, acquire and develop neighborhood recreation and open space, pedestrian amenities and streetscape improvements, and bicycle infrastructure that result in new publicly-accessible facilities. First priority should be given to projects within the Van Ness & Market Residential Special Use District. Second Priority should be given to projects within the Market and Octavia Plan Area or within 1,250 feet of the Plan Area. These improvements shall be consistent with the Market and Octavia Area Plan of the General Plan and any Plan that is approved by the Board of Supervisors in the future for the area covered by the Van Ness & Market Residential Special Use District, except that monies from the Fund may be used by the Planning Commission to commission studies to revise the fee above, or to commission landscape, architectural or other planning, design and engineering services in support of the proposed public improvements.
(2) No portion of the Fund may be used, by way of loan or otherwise, to pay any administrative, general overhead, or similar expense of any public entity.
(3) At the close of a fiscal year in which the Market and Octavia Community Improvements Program has generated funding for no less than $211 million of expenditures in the plan area, including revenue generated through this Section 424.1 et seq., Section 421 fee payments, in-kind improvements, public grants, San Francisco general funds, assessment districts, and other sources which contribute to the overall programming, all future funds generated through Section 424.1 et seq. shall be redirected 100% to the Citywide Affordable Housing Fund.
(4) Expenditure of funds shall be coordinated with appropriate City agencies as detailed in Section 421.5.
(5) The Director shall have the authority to prescribe rules and regulations governing the Fund, which are consistent with Section 424.1 et seq. The Director of Planning, as the head of the Interagency Plan Implementation Committee (IPIC), shall make recommendations to the Board regarding allocation of funds.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 263-13, File No. 130549, App. 11/27/2013, Eff. 12/27/2013; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 188-15
, File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020)
AMENDMENT HISTORY
Former divisions (a)(i)-(vi) redesignated as (a)(1)-[former] (a)(6); [former] division (a)(3) amended; Ord. 263-13, Eff. 12/27/2013. Divisions (a) and (a)(1) amended; former division (a)(3) deleted; former divisions (a)(4)-(6) redesignated as (a)(3)-(5) and amended; Ord. 50-15
, Eff. 5/24/2015. Division (a) and Table 424.5A amended; Ord. 188-15
, Eff. 12/4/2015. Section header and division (a)(1) amended; Ord. 126-20, Eff. 8/31/2020.
[TRANSIT CENTER DISTRICT]
SEC. 424.6.1. FINDINGS.
(a) General. Existing public park and recreational facilities located in the downtown area are at or approaching capacity utilization by the population of the area. There is substantial additional population density, both employment and residential, planned and projected in the Transit Center District. This district, more than other parts of the downtown, is lacking in existing public open space amenities to support population growth. The need for additional public park and recreation facilities in the downtown area, and specifically in the Transit Center District, will increase as the population increases due to continued office, retail, institutional, and residential development. Additional population will strain and require improvement of existing open spaces both downtown and citywide, and will necessitate the acquisition and development of new public open spaces in the immediate vicinity of the growth areas. While the open space requirements imposed on individual commercial developments address the need for plazas and other local outdoor sitting areas to serve employees and visitors in the districts, and requirements imposed on individual residential developments address the need for small-scale private balconies, terraces, courtyards or other minor common space such as can be accommodated on individual lots, such open space cannot provide the same recreational opportunities as a public park. In order to provide the City and County of San Francisco with the financial resources to acquire and develop public park and recreation facilities necessary to serve the burgeoning population in the downtown area, a Transit Center District Open Space Fund shall be established as set forth herein. The Board of Supervisors adopts the findings of the the1 San Francisco Citywide Nexus Analysis (“Nexus Analysis”), on file with the Clerk of the Board in File No. 230764, in accordance with the California Mitigation Fee Act, Government Code Section 66001(a).
(b) Transit Center District Open Space Impact Fee. Development impact fees are an effective approach to mitigate impacts associated with growth in population. The proposed Transit Center District Open Space Impact Fee shall be dedicated to fund public open space improvements in the Transit Center District Plan Area and adjacent downtown areas that will provide direct benefits to the property developed by those who pay into the fund, by providing necessary open space improvements needed to serve new development.
The Planning Department has calculated the fee rate using accepted professional methods for calculating such fees. The calculations are described fully in the Nexus Analysis, on file with the Clerk of the Board in File No. 230764.
The proposed fee, in combination with the Downtown Park Fee established in Section 412 et seq., is supported by the Nexus Analysis..1
While no project sponsor would be required to pay more than the maximum amount justified for that project as calculated in the Nexus Study, the Transit Center District Open Space Fee is tiered such that denser projects are assessed higher fees because it is economically feasible for such projects to pay a higher proportion of the maximum justified amount. The proposed fee covers impacts caused by new development only and is not intended to remedy existing deficiencies. The cost to remedy existing deficiencies will be paid for by public, community, and other private sources as described in the Nexus Analysis and the Transit Center District Plan Program Implementation Document. Impact fees are only one of many revenue sources funding open space in the Plan Area.
AMENDMENT HISTORY
Section amended; Ord. 193-23, Eff. 10/16/2023.
CODIFICATION NOTE
SEC. 424.6.2. APPLICATION OF TRANSIT CENTER DISTRICT OPEN SPACE IMPACT FEE.
(a) Application. Sections 424.6 et seq. shall apply to any development project located in the C-3-O(SD) District and meeting the requirements of subsection (b) below.
(b) Projects subject to the Transit Center District Open Space Impact Fee. The Transit Center District Open Space Impact Fee is applicable to any development project in the C-3-O(SD) District which results in:
(1) At least one net new residential unit,
(2) Addition of space to an existing residential unit of more than 800 gross square feet,
(3) At least one net new group housing facility or residential care facility,
(4) Addition of space to an existing group housing or residential care facility of more than 800 gross square feet,
(5) New construction of a non-residential use, or
(6) Addition of non-residential space in excess of 800 gross square feet to an existing structure.
(7) Conversion of existing space to a different use where the project's total fee as calculated according to subsection (c) below would exceed the total fee for the uses being replaced.
(c) Fee Calculation for the Transit Center District Open Space Impact Fee. For development projects for which the Transit Center District Open Space Impact Fee is applicable, the corresponding fee for net addition of gross square feet is listed in Table 424.6A. Where a development project includes more than one land use, the overall proportion of each use relative to other uses on the lot shall be used to calculate the applicable fees regardless of the physical distribution or location of each use on the lot. Where a project proposes conversion of existing space to a different use, the Director shall specify the fee amount based on a Guidance Statement or other document establishing the methodology for calculating fees.
(1) Base Fee. The fee listed in Column A shall be assessed on all applicable gross square footage for the entire development project.
(2) Projects Exceeding FAR of 9:1. For development projects that result in the Floor Area Ratio on the lot exceeding 9:1, the fee listed in Column B shall be assessed on all applicable gross square footage on the lot above an FAR of 9:1.
Use | Column A (Base Fee) | Column B (GSF Above 9:1) |
Residential | $2.50/gsf | N/A |
Office | $3.00/gsf | $7.00/gsf |
Retail | $5.00/gsf | $4.50/gsf |
Hotel | $4.00/gsf | N/A |
Institutional/Cultural/ Medical | $5.00/gsf | $4.30/gsf |
Industrial | $2.50/gsf | N/A |
(d) Option for In-Kind Provision of Community Improvements and Fee Credits. Project sponsors may propose to directly provide community improvements to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a fee waiver for the Transit Center District Open Space Impact Fee from the Planning Commission, subject to the following rules and requirements:
(1) Approval Criteria. The City shall not enter into an In-Kind Agreement unless the proposed in-kind improvements meet an identified community need as analyzed in the Transit Center District Plan Implementation Program Document and where they substitute for improvements that could be provided by the Transit Center District Open Space Fund (as described in Section 424.6.4). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Transit Center District Plan, by the Interagency Plan Implementation Committee (see Chapter 36 of the Administrative Code), or other prioritization processes related to Transit Center District improvements programming. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of this In-Kind Improvements Agreement.
For a development project on Assessor's Block 3720 Lot 009, an In-Kind Agreement may be approved which credits the project for public open space improvements constructed by either the sponsor of the development project or by the Transbay Joint Powers Authority, in accordance with the Transit Center District Plan Implementation Program Document.
(2) Valuation. The Director of Planning shall determine the appropriate value of the proposed in-kind improvements. For the purposes of calculating the total value, the project sponsor shall provide the Planning Department with a cost estimate for the proposed in-kind improvement(s) from two independent sources or, if relevant, real estate appraisers. A detailed site-specific cost estimate for a planned improvement prepared by the City or the Transbay Joint Powers Authority may satisfy the requirement for cost estimates provided that the estimate is indexed to current cost of construction.
(3) Content of the In-Kind Improvements Agreement. The In-Kind Improvements Agreement shall include at least the following items:
(B) The appropriate value of the proposed in-kind improvement, as determined in subsection (2) above.
(C) The legal remedies in the case of failure by the project sponsor to provide the in-kind improvements according to the specified timeline and terms in the agreement. Such remedies shall include the method by which the City will calculate accrued interest.
(4) Approval Process. The Planning Commission must approve the material terms of an In-Kind Agreement. The Planning Commission shall hear and consider the recommendation of the Interagency Plan Implementation Committee, as established in Chapter 36 of the Administrative Code, in deciding whether to approve or disapprove any In-Kind Agreement. Prior to the parties executing the Agreement, the City Attorney must approve the agreement as to form and to substance. The Director of Planning shall be authorized to execute the Agreement on behalf of the City. If the Planning Commission approves the In-Kind Agreement, it shall waive the amount of the Transit Center District Open Space Impact Fee equivalent to the value of the improvements proposed in the In-Kind Agreement. No credit shall be made for land value unless ownership of the land is transferred to the City or a permanent public easement is granted, the acceptance of which is at the sole discretion of the City. The maximum value of the credit for the improvements proposed in the In-Kind Improvements Agreement shall not exceed the required Transit Center District Open Space Impact Fee.
(5) Administrative Costs. Project sponsors that pursue an In-Kind Improvements Agreement will be billed time and materials for any administrative costs that the Planning Department or any other City entity incurs in negotiating, drafting, and monitoring compliance with the In-Kind Improvements Agreement.
(e) Timing of Fee Payments. The Transit Center District Open Space Impact Fee is due and payable to the Development Fee Collection Unit at DBI consistent with timing set forth in Section 107A.13.3 of the San Francisco Building Code.
(f) Waiver or Reduction of Fees. Development projects may be eligible for a waiver or reduction of impact fees, per Section 406 of this Article.
(Added by Ord. 182-12
, File No. 120665, App. 8/8/2012, Eff. 9/7/2012; amended by Ord. 56-13
, File No. 130062, App. 3/28/2013, Eff. 4/27/2013; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 188-15
, File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 196-25, File No. 250657, App. 10/24/2025, Eff. 11/24/2025)
AMENDMENT HISTORY
SEC. 424.6.3. IMPOSITION OF TRANSIT CENTER DISTRICT OPEN SPACE IMPACT FEE.
(a) Determination of Requirements. The Department shall determine the applicability of Sections 424.6 et seq. to any development project requiring a first construction document and, if Sections 424.6 et seq. is applicable, the Department shall determine the amount of Transit Center District Open Space Impact Fees required and shall impose these requirements as a condition of approval for issuance of the first construction document for the development project. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Department Notice to Development Fee Collection Unit at DBI. Prior to the issuance of a building or site permit for a development project subject to the requirements of Sections 424.6 et seq., the Department shall notify the Development Fee Collection Unit at DBI of its final determination of the amount of Transit Center District Open Space Impact Fees required, including any reductions calculated for an In-Kind Improvements Agreement, in addition to the other information required by Section 402(b) of this Article.
(c) Development Fee Collection Unit Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the first certificate of occupancy for any development project subject to Sections 424.6 et seq. that has elected to fulfill all or part of its Transit Center District Open Space Impact Fee requirement with an In-Kind Improvements Agreement. If the Department notifies the Unit at such time that the sponsor has not satisfied any of the terms of the In-Kind Improvements Agreement, the Director of DBI shall deny any and all certificates of occupancy until the subject project is brought into compliance with the requirements of Sections 424.6 et seq., either through conformance with the In-Kind Improvements Agreement or payment of the remainder of the Transit Center District Open Space Impact Fees that would otherwise have been required, plus a deferral surcharge as set forth in Section 107A.13.3.1 of the San Francisco Building Code
.
(d) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Sections 424.6 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Department or the Commission, Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) of this Article shall be followed.
SEC. 424.6.4. THE TRANSIT CENTER DISTRICT OPEN SPACE FUND.
(a) There is hereby established a separate fund set aside for a special purpose entitled the Transit Center District Open Space Fund ("Fund"). All monies collected by the Development Fee Collection Unit at DBI pursuant to Section 424.6.3(b) shall be deposited in a special fund maintained by the Controller. The receipts in the Fund to be used solely to fund Public Benefits subject to the conditions of this Section.
(b) Expenditures from the Fund shall be recommended by the Interagency Plan Implementation Committee for allocation and administration by the Board of Supervisors.
(1) All monies deposited in the Fund shall be used to design, engineer, acquire, and develop and improve both new and existing public open spaces and recreational facilities in the Transit Center District Plan Area, the greater downtown, and citywide as established in the Transit Center District Plan and the Transit Center District Plan Implementation Program Document and supported by the findings of the Downtown Open Space Nexus Study.
(2) Funds may be used for administration and accounting of fund assets, for additional studies as detailed in the Transit Center District Plan Implementation Program Document, and to defend the Transit Center District Open Space Impact Fee against legal challenge, including the legal costs and attorney's fees incurred in the defense. Administration of this fund includes time and materials associated with reporting requirements, facilitating any necessary or required public meetings aside from Planning Commission hearings, and maintenance of the fund. Monies from the Fund may be used by the Planning Commission to commission economic analyses for the purpose of revising the fee, and/or to complete an updated nexus study to demonstrate the relationship between development and the need for public facilities and services if this is deemed necessary. Monies used for the purposes consistent with this subsection (2) shall not exceed five percent of the total fees collected. All interest earned on this account shall be credited to the Transit Center District Open Space Fund.
(3) All funds are justified and supported by the Downtown Open Space Nexus Study, San Francisco Planning Department, Case No. 2007.05558U. Implementation of the Fee and Fund are monitored according to the Downtown Plan Monitoring Program required by the Administrative Code Section 10E.
AMENDMENT HISTORY
SEC. 424.7.1. FINDINGS.
(a) General. New development in the Transit Center District Plan area will create substantial new burdens on existing streets and transportation systems and require the need for new and enhanced transportation services and improvements to rights-of-way for all modes of transportation. The downtown is a very dense urban environment with limited roadway capacity and is already substantially congested and impacted by existing patterns of movement. To accommodate the substantial growth anticipated in the Transit Center District Plan Area, public transit investments must be made, circulation patterns adjusted, and limited right-of-way space reallocated such that trips to and through the area are primarily made by public transit, walking, bicycling, and carpooling and such that these modes are enabled to maintain or improve efficiency and attractiveness in the face of increasing traffic congestion. The Transit Center District Plan identified necessary investments and improvements to achieve these modal objectives and ensure that growth in trips resulting from new development and population increase in the Plan area does not degrade existing services. The San Francisco Citywide Nexus Analysis (“Nexus Analysis”), on file with the Clerk of the Board in File No. 230764, calculated the proportional share of the cost of these improvements attributable to new growth based on accepted professional standards. The investments and improvements identified in the Transit Center District Plan and allocated in the nexus study are distinct and in addition to improvements and services related to the Transit Impact Development Fee (TIDF) imposed by Section 411 et seq. Whereas the TIDF funds improvements to SFMTA Municipal Railway public transit services and facilities to provide sufficient capacity required to serve new development, the Transit Center District Transportation and Street Improvement Fee covers impacts of new development in the District on regional transit services and facilities that are distinct from and in addition to the need for SFMTA public transit services, and that will not funded by the TIDF, including necessary improvements to area streets to facilitate increases in all modes of transportation due to development, including walking, bicycling, and carpooling, and to regional transit facilities, including the Downtown Rail Extension and downtown BART stations. The Board finds that there is no duplication in these two fees. To provide the City and County of San Francisco and regional transit agencies with the financial resources to provide transportation facilities and street improvements necessary to serve the burgeoning population of downtown San Francisco, a Transit Center District Transportation and Street Improvement Fund shall be established as set forth herein. The Board of Supervisors adopts the findings of the Nexus Analysis, in accordance with the California Mitigation Fee Act, Government Code Section 66001(a).
(b) Transit Center District Transportation and Street Improvement Impact Fee. Development impact fees are an effective approach to mitigate impacts associated with growth in population. The proposed Transit Center District Transportation and Street Improvement Impact Fee shall be dedicated to public transportation and public street improvements in the Transit Center District Plan Area and adjacent downtown areas that will provide direct benefits to the property developed by those who pay into the fund, by providing necessary transportation and street improvements needed to serve new development.
The fee rate has been calculated by the Planning Department based on accepted professional methods for the calculation of such fees, and described fully in the Nexus Analysis, on file with the Clerk of the Board in File No. 230764.
The proposed fee established in Sections 424.7 et seq., is less than the maximum justified fee amount as calculated by the Nexus Analysis necessary to provide transportation and street improvements to increasing population in the area. While no project sponsor would be required to pay more than the maximum amount justified for that project as calculated in the Nexus Study, the Transit Center District Transportation and Street Improvement Fee is tiered such that denser projects are assessed higher fees because it is economically feasible for such projects to pay a higher proportion of the maximum justified amount. The proposed fee covers only the demand for transportation and street improvements created by new development and is not intended to remedy existing deficiencies. The cost to remedy existing deficiencies will be paid for by public, community, and other private sources as described in the Nexus Analysis and the Transit Center District Plan Implementation Document. Impact fees are only one of many revenue sources necessary to provide transportation and street improvements in the Plan Area.
AMENDMENT HISTORY
Section amended; Ord. 193-23, Eff. 10/16/2023.
SEC. 424.7.2. APPLICATION OF TRANSIT CENTER DISTRICT TRANSPORTATION AND STREET IMPROVEMENT IMPACT FEE.
(a) Application. Sections 424.7 et seq. shall apply to any development project located in the C-3-O(SD) District and meeting the requirements of subsection (b) below.
(b) Projects subject to the Transit Center District Transportation and Street Improvement Impact Fee. The Transit Center District Transportation and Street Improvement Impact Fee is applicable to any development project in the C-3-O(SD) District which results in:
(1) At least one net new residential unit,
(2) Addition of space to an existing residential unit of more than 800 gross square feet,
(3) At least one net new group housing facility or residential care facility,
(4) Addition of space to an existing group housing or residential care facility of more than 800 gross square feet,
(5) New construction of a non-residential use, or
(6) Addition of non-residential space in excess of 800 gross square feet to an existing structure.
(7) Conversion of existing space to a different use where the project's total fee as calculated according to subsection (c) below would exceed the total fee for the uses being replaced.
(c) Fee Calculation for the Transit Center District Transportation and Street Improvement Impact Fee. For development projects for which the Transit Center District Transportation and Street Improvement Impact Fee is applicable the corresponding fee for net addition of gross square feet is listed in Table 424.7A. Where a development project includes more than one land use, the overall proportion of each use relative to other uses on the lot shall be used to calculate the applicable fees regardless of the physical distribution or location of each use on the lot. If necessary, the Director shall issue a Guidance Statement clarifying the methodology of calculating fees.
(1) Transit Delay Mitigation Fee. The fee listed in Column A shall be assessed on all applicable gross square footage for the entire development project.
(2) Base Fee. The fee listed in Column B shall be assessed on all applicable gross square footage for the entire development project.
(3) Projects Exceeding FAR of 9:1. For development projects that result in the Floor Area Ratio on the lot exceeding 9:1, the fee listed in Column C shall be assessed on all applicable gross square footage on the lot above an FAR of 9:1.
(4) Projects Exceeding FAR of 18:1. For development projects that result in the Floor Area Ratio on the lot exceeding 18:1, the fee listed in Column D shall be assessed on all applicable gross square footage on the lot above an FAR of 18:1.
Use | Column A (Transit Delay Mitigation Fee) | Column B (Base Fee) | Column C (GSF Above 9:1) | Column D (GSF Above 18:1) |
Residential | $0.06/gsf | $3.94/gsf | $6.00/gsf | $3.00/gsf |
Office | $0.20/gsf | $3.80/gsf | $19.50/gsf | $10.00/gsf |
Retail | $1.95/gsf | $2.05/gsf | $19.50/gsf | $10.00/gsf |
Hotel | $0.10/gsf | $3.90/gsf | $8.00/gsf | $3.00/gsf |
Institutional/ Cultural/ Medical | $0.30/gsf | $3.70/gsf | $19.50/gsf | $10.00/gsf |
Industrial | N/A | $4.00/gsf | N/A | N/A |
(d) Option for In-Kind Provision of Community Improvements and Fee Credits. Project sponsors may propose to directly provide community improvements to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a fee waiver for the Transit Center District Transportation and Street Improvement Impact Fee from the Planning Commission, subject to the following rules and requirements:
(1) Approval Criteria. The City shall not enter into an In-Kind Agreement unless the proposed in-kind improvements meet an identified community need as analyzed in the Transit Center District Plan Implementation Document and where they substitute for improvements that could be provided by the Transit Center District Transportation and Street Improvement Fund (as described in Section 424.7.4). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Transit Center District Plan, by the Interagency Plan Implementation Committee (see Chapter 36 of the Administrative Code), or other prioritization processes related to Transit Center District improvements programming. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of this In-Kind Improvements Agreement.
(A) For a development project on Assessor's Block 3720 Lot 009, an in-kind agreement may be approved that credits the project for street and transportation improvements constructed by either the sponsor of the development project or by the Transbay Joint Powers Authority.
(B) The Planning Commission may not grant an in-kind agreement to waive or provide improvements in-lieu of paying the Transit Delay Mitigation Fee required by subsection (c)(1) above.
(2) Valuation. The Director of Planning shall determine the appropriate value of the proposed in-kind improvements. For the purposes of calculating the total value, the project sponsor shall provide the Planning Department with a cost estimate for the proposed in-kind improvement(s) from two independent sources or, if relevant, real estate appraisers. A detailed site-specific cost estimate for a planned improvement prepared by the City or the Transbay Joint Powers Authority may satisfy the requirement for cost estimates provided that the estimate is indexed to current cost of construction.
(3) Content of the In-Kind Improvements Agreement. The In-Kind Improvements Agreement shall include at least the following items:
(A) A description of the type and timeline of the proposed in-kind improvements.
(B) The appropriate value of the proposed in-kind improvement, as determined in subsection (2) above.
(C) The legal remedies in the case of failure by the project sponsor to provide the in-kind improvements according to the specified timeline and terms in the agreement. Such remedies shall include the method by which the City will calculate accrued interest.
(4) Approval Process. The Planning Commission must approve the material terms of an In-Kind Agreement. The Planning Commission shall hear and consider the recommendation of the Interagency Plan Implementation Committee, as established in Chapter 36 of the Administrative Code, in deciding whether to approve or disapprove any In-Kind Agreement. Prior to the parties executing the Agreement, the City Attorney must approve the agreement as to form and to substance. The Director of Planning shall be authorized to execute the Agreement on behalf of the City. If the Planning Commission approves the In-Kind Agreement, it shall waive the amount of the Transit Center District Transportation and Street Improvement Impact Fee equivalent to the value of the improvements proposed in the In-Kind Agreement. No credit shall be made for land value unless ownership of the land is transferred to the City or a permanent public easement is granted, the acceptance of which is at the sole discretion of the City. The maximum value of the credit for the improvements proposed in the In-Kind Improvements Agreement shall not exceed the required Transit Center District Transportation and Street Improvement Impact Fee.
(5) Administrative Costs. Project sponsors that pursue an In-Kind Improvements Agreement will be billed time and materials for any administrative costs that the Planning Department or any other City entity incurs in negotiating, drafting, and monitoring compliance with the In-Kind Improvements Agreement.
(e) Timing of Fee Payments. The Transit Center District Transportation and Street Improvement Impact Fee is due and payable to the Development Fee Collection Unit at DBI consistent with the timing set forth in Section 107A.13.3 of the San Francisco Building Code.
(f) Waiver or Reduction of Fees. Development projects may be eligible for a waiver or reduction of impact fees, per Section 406 of this Article. No waiver or reduction may be granted for the Transit Delay Mitigation Fee required by subsection (c)(1) above.
AMENDMENT HISTORY
SEC. 424.7.3. IMPOSITION OF TRANSIT CENTER DISTRICT TRANSPORTATION AND STREET IMPROVEMENT IMPACT FEE.
(a) Determination of Requirements. The Department shall determine the applicability of Sections 424.7 et seq. to any development project requiring a first construction document and, if Sections 424.7 et seq. is applicable, the amount of Transit Center District Transportation and Street Improvement Impact Fees required and shall impose these requirements as a condition of approval for issuance of the first construction document for the development project. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Department Notice to Development Fee Collection Unit at DBI. Prior to the issuance of a building or site permit for a development project subject to the requirements of Sections 424.7 et seq., the Department shall notify the Development Fee Collection Unit at DBI of its final determination of the amount of Transit Center District Transportation and Street Improvement Impact Fees required, including any reductions calculated for an In-Kind Improvements Agreement, in addition to the other information required by Section 402(b) of this Article.
(c) Development Fee Collection Unit Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the first certificate of occupancy for any development project subject to Sections 424.7 et seq. that has elected to fulfill all or part of its Transit Center District Transportation and Street Improvement Impact Fee requirement with an In-Kind Improvements Agreement. If the Department notifies the Unit at such time that the sponsor has not satisfied any of the terms of the In-Kind Improvements Agreement, the Director of DBI shall deny any and all certificates of occupancy until the subject project is brought into compliance with the requirements of Section Sections 424.7 et seq., either through conformance with the In-Kind Improvements Agreement or payment of the remainder of the Transit Center District Transportation and Street Improvement Impact Fees that would otherwise have been required, plus a deferral surcharge as set forth in Section 107A.13.3.1 of the San Francisco Building Code
.
(d) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Sections 424.7 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Department or the Commission, Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) of this Article shall be followed.
SEC. 424.7.4. THE TRANSIT CENTER DISTRICT TRANSPORTATION AND STREET IMPROVEMENT FUND.
(a) There is hereby established a separate fund set aside for a special purpose entitled the Transit Center District Transportation and Street Improvement Fund ("Fund"). All monies collected by the Development Fee Collection Unit at DBI pursuant to Section 424.7.3(b) shall be deposited in a special fund maintained by the Controller. The receipts in the Fund to be used solely to fund Public Benefits subject to the conditions of this Section.
(b) Expenditures from the Fund shall be recommended by the Interagency Plan Implementation Committee for allocation and administration by the Board of Supervisors.
(1) All monies deposited in the Fund shall be used to study, design, engineer, develop and implement transportation infrastructure, facilities, equipment, services and programs as well as improvements to public streets, in the Transit Center District Plan Area and the greater downtown as established in the Transit Center District Plan and the Transit Center District Implementation Program Document and supported by the findings of the Transit Center District Plan Transportation and Street Improvement Nexus Study. Fees paid pursuant to the Transit Delay Mitigation Fee required by Section 424.7.2(c)(1) must be held in a separate account for use for the mitigation purposes defined in the Final Transit Center District Plan Environmental Impact Report, San Francisco Planning Department Case Number 2007.0558E.
(2) Funds may be used for administration and accounting of fund assets, for additional studies as detailed in the Transit Center District Implementation Program Document, and to defend the Transit Center District Transportation and Street Improvement Impact Fee against legal challenge, including the legal costs and attorney's fees incurred in the defense. Administration of this fund includes time and materials associated with reporting requirements, facilitating any necessary or required public meetings aside from Planning Commission hearings, and maintenance of the fund. Monies from the Fund may be used by the Planning Commission to commission economic analyses for the purpose of revising the fee, and/or to complete an updated nexus study to demonstrate the relationship between development and the need for public facilities and services if this is deemed necessary. Monies used for the purposes consistent with this subsection (2) shall not exceed five percent of the total fees collected. All interest earned on this account shall be credited to the Transit Center District Transportation and Street Improvement Fund.
(3) All funds are justified and supported by the Transit Center District Plan Transportation and Street Improvement Nexus Study, San Francisco Planning Department, Case No. 2007.0558U. Implementation of the Fee and Fund shall be monitored according to the Downtown Plan Monitoring Program required by the Administrative Code Section 10E.
AMENDMENT HISTORY
SEC. 425.1. PURPOSE AND FINDINGS.
(a) Purpose. New development in the Van Ness & Market Residential Special Use District will increase the resident populations, generating new demand for use of community facilities, such as cultural facilities, health clinics, services for people with disabilities, and job training centers. New revenues to fund investments in community services are necessary to maintain the existing level of service. This fee will generate revenue that will be used to ensure an expansion in community service facilities as new development occurs in the Van Ness & Market Residential Special Use District area.
(b) Findings. In adopting the amendments to the Market and Octavia Area Plan (Ordinance No. 125-20), on file with the Clerk of the Board of Supervisors in File No. 200557, and corresponding amendments to the Planning Code (Ordinance No. 126-20 on file with the Clerk of the Board of Supervisors in File No. 200559), the Board of Supervisors reviewed the Central SoMa Community Facilities Nexus Study, prepared by Economic & Planning Systems and dated March 2016, as well as the Hub Community Facilities Nexus Memo, prepared by the Planning Department and dated June 29, 2020 (collectively the “Nexus Study” for the purposes of Sections 425 et seq.). The Board of Supervisors reaffirms the findings and conclusions of the Nexus Study as they relate to the impact of new development in the Van Ness & Market Special Use District on community services facilities and hereby adopts the findings contained in the Nexus Study.
(Added by Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020)
SEC. 425.2. APPLICATION OF FEES.
(1) Includes new construction, or an addition of space, in excess of 800 gross square feet of residential use; or
(2) Converts 800 gross square feet or more of existing structure(s) from non-residential to residential use.
(b) Fee Calculation. For applicable projects, the fee is $1.16 per net additional gross square foot of residential use or gross square foot of space converted from non-residential to residential use.
(c) Option for In-Kind Provision of Community Improvements and Fee Credits. Project sponsors may propose to provide community improvements directly to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a partial or total fee waiver for the Van Ness & Market Community Facilities Fund from the Planning Commission, subject to the following rules and requirements:
(1) Approval Criteria. The City shall not enter into an In-Kind Improvements Agreement unless the proposed in-kind improvements meet an identified community need for cultural/arts facilities, social welfare facilities, or community health facilities, as described in the Nexus Study. In addition, the City may reject in-kind improvements if they are not consistent with the priorities identified in the Market & Octavia Area Plan; the priorities identified by the Interagency Plan Implementation Committee (see Section 36 of the Administrative Code), or the Market & Octavia Citizens Advisory Committee; or other prioritization processes related to the Market & Octavia Area Plan community improvements programming. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of an In-Kind Improvements Agreement.
(d) Timing of Fee Payments. The fee shall be due and payable to the Development Fee Collection Unit at DBI consistent with the timing set forth in Section 107A.13.3 of the San Francisco Building Code.
(e) Waiver or Reduction of Fees. Development projects may be eligible for a waiver or reduction of impact fees, pursuant to Section 406.
AMENDMENT HISTORY
SEC. 425.3. IMPOSITION OF VAN NESS & MARKET COMMUNITY FACILITIES FEE.
(a) Determination of Requirements. The Department shall determine the applicability of Section 425 et seq. to any residential development project requiring a first construction document and, if Section 425 et seq. is applicable, the Department shall determine the amount of the Van Ness & Market Community Facilities Fees required and shall impose these requirements as a condition of approval for issuance of the first construction document for the development project. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Department Notice to Development Fee Collection Unit at DBI. Prior to the issuance of a building or site permit for a development project subject to the requirements of Section 425 et seq., the Department shall notify the Development Fee Collection Unit at DBI of its final determination of the amount of the Van Ness & Market Community Facilities Fees required, including any reductions calculated for an In-Kind Improvements Agreement, in addition to the other information required by Section 402(b) of this Article.
(c) Development Fee Collection Unit Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the first certificate of occupancy for any development project subject to Section 425 et seq. that has elected to fulfill all or part of its Van Ness & Market Community Facilities Fee requirement with an In-Kind Improvements Agreement. If the Department notifies the Unit at such time that the sponsor has not fully satisfied all of the terms of the In-Kind Improvements Agreement, the Director of DBI shall deny any and all certificates of occupancy until the project complies with the requirements of Section 425 et seq., either through conformance with the In-Kind Improvements Agreement or payment of the remainder of the Van Ness & Market Community Facilities Fee that would otherwise have been required, plus a deferral surcharge as set forth in Section 107A
.13.3.1 of the San Francisco Building Code.
(d) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Section 425 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Department or the Commission, Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) of this Article shall be followed.
(Added by Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020)
SEC. 425.4. THE VAN NESS & MARKET COMMUNITY FACILITIES FEE
(a) There is hereby established a separate fund set aside for a special purpose entitled the Van Ness & Market Community Facilities Fund (“Fund”). All monies collected by the Development Fee Collection Unit at DBI pursuant to this Section 425 shall be deposited in a special fund maintained by the Controller. The receipts in the Fund are to be used solely to fund community facilities subject to the conditions of this Section 425 et seq.
(b) Expenditures from the Fund shall be administered by the Mayor’s Office of Housing and Community Development, or its successor. The Mayor’s Office of Housing and Community Development or its successor shall have the authority to prescribe rules and regulations governing the Fund.
(1) All monies deposited in the Fund shall be used to design, engineer, and develop community facilities as described in the Nexus Study, including cultural/arts facilities, social welfare facilities, and community health facilities, in the Market and Octavia Plan Area or within 1,250 feet of the Plan Area.
(2) Funds may be used for administration and accounting of fund assets, for additional studies related to community facilities identified in the Market & Octavia Area Plan or Market & Octavia Area Plan Implementation Document, or by the Interagency Plan Implementation Committee or the Market & Octavia Citizens Advisory Committee, and to defend the Van Ness & Market Community Facilities Fee against legal challenge, including the legal costs and attorney’s fees incurred in the defense. Administration of this fund includes time and materials associated with reporting requirements, facilitating any necessary or required public meetings aside from Planning Commission hearings, and maintenance of the fund. Monies from the Fund may be used by the Planning Commission to commission economic analyses for the purpose of revising the fee, and/or to complete an updated nexus study to demonstrate the relationship between development and the need for public facilities and services if this is deemed necessary. Monies used for the purposes consistent with this subsection 425.4(b)(2) shall not exceed five percent of the total fees collected. All interest earned on this account shall be credited to the Van Ness & Market Community Facilities Fund.
(3) The Planning Department shall report quarterly to the Planning Commission on the current status of the fund, as well as annually as part of the Annual Progress Reports required by Administrative Code Section 36.4.
(4) All funds are justified and supported by the Nexus Study, adopted as part of the Market & Octavia Area Plan Amendments (Ordinance No. 125-20, on file with the Clerk of the Board of Supervisors in File No. 200557) and corresponding Planning Code Amendments (Ordinance No. 126-20 on file with the Clerk of the Board of Supervisors in File No. 200559). Implementation of the Fee and Fund shall be monitored according to the Market and Octavia Area Plan Monitoring Program required by Planning Code Section 341.
(Added by Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020)
[OPEN SPACE REQUIREMENTS]
SEC. 429.1. DEFINITIONS.
“100% Affordable Housing Project” means a project that meets the applicability requirements for affordable housing projects set forth in Section 315(b) of this Code.
"Conservation" shall mean the profession devoted to the preservation of cultural property for the future.
"Construction Cost" shall be determined by the Department of Building Inspection in accordance with established industry standards or in the manner used to determine the valuation of work as set forth in Section 107A.2 of the Building Code.
"Maintenance" shall mean a minimally invasive, routine and regularly scheduled activity that may involve the removal of superficial dirt or debris build-up on the surface of the artwork or the cleaning and repair of non-art support material such as a pedestal or plaque.
"Preservation" shall mean the protection of cultural property through activities that minimize chemical and physical deterioration and damage, and that prevent loss of informational content. The primary goal of preservation is to prolong the existence of cultural property, and should be undertaken or overseen by a professional conservator.
"Restoration" shall mean a treatment procedure intended to return cultural property to a known or assumed state, often through the addition of non-original material.
AMENDMENT HISTORY
SEC. 429.2. APPLICATION.
(a) all projects that involve construction of a new building or addition of floor area in excess of 25,000 square feet to an existing building in a C-3 District, except for 100% Affordable Housing Projects;;1
and
(b) all non-residential projects that involve construction of a new building or addition of floor area in excess of 25,000 square feet and that have submitted their first complete Development Application on or after January 1, 2013 on the following parcels:
(1) all parcels in RH-DTR, TB-DTR, SB-DTR, UMU, WMUG, WMUO and SALI Districts;
(2) properties that are zoned MUG, CMUO, or MUO or MUR and that are north of Division/Duboce/13th Streets; and
(3) all parcels zoned C-2 except for those on Blocks 4991 (Executive Park) and 7295 (Stonestown Galleria Mall).
For the purposes of this Section 429.2, a “Development Application” shall mean any application for a building permit, site permit, environmental review, Preliminary Project Assessment (PPA), Conditional Use, or Variance.
(Added by Ord. 62-12
, File No. 110853, App. 4/19/2012, Eff. 5/19/2012; amended by Ord. 42-13
, File No. 130002, App. 3/28/2013, Eff. 4/27/2013; Ord. 188-15
, File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019; Ord. 250-24, File No. 231268, App. 11/7/2024, Eff. 12/8/2024)
AMENDMENT HISTORY
CODIFICATION NOTE
SEC. 429.3. IMPOSITION OF PUBLIC ART FEE REQUIREMENT.
(a) Determination of Requirements. The Department shall determine the applicability of Section 429.1 et seq. to any development project requiring a first construction document and, if Section 429.1 et seq. is applicable, the number of gross square feet subject to its requirements, and shall impose this requirement as a condition of approval for issuance of the first construction document for the development project to address the need for additional public art in the downtown districts. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Amount of Fee. Upon design approval of the development project from the Planning Department, and except as otherwise provided herein, the project sponsor shall dedicate and expend an amount equal to one percent of the construction cost of the building or addition as determined by the Director of DBI (the "Public Art Fee") for the purposes described herein and subject to the options set forth below.
(c) Department Notice to Development Fee Collection Unit at DBI. After the Department has made its final determination of the net addition of gross floor area subject to Section 429.1 et seq. and the dollar amount of the Public Art Fee required, the Department shall immediately notify the Development Fee Collection Unit at DBI of its determination, in addition to the other information required by Section 402(b) of this Article.
(d) Options to Fulfill Requirements.
(1) Non-Residential Development Projects. Non-residential buildings with public open space requirements greater than 1,499 square feet but less than 3,000 square feet that provide ground floor open space shall comply with Section 429.3 by providing on-site public art of a value equivalent to the Public Art Fee; provided, however, that if the required Public Art Fee exceeds $500,000, only on-site public art valued at $500,000 is required to be provided on-site. Non-residential buildings with public open space requirements greater than or equal to 3,000 square feet that provide ground floor open space shall comply with Section 429.3 by providing on-site public art of a value equivalent to the Public Art Fee; provided, however, that if the required Public Art Fee exceeds $750,000, only on-site public art valued at $750,000 is required to be provided on-site. In any case where the Public Art Fee requirement exceeds the amount required on-site, prior to issuance of a building or site permit the project sponsor shall elect one of the following options to fulfill any requirements imposed as a condition of approval and to notify the Arts Commission and the Department of their choice:
(B) to deposit the remainder of the Public Art Fee into the Public Artwork Trust Fund established in Section 10.100-29 of the San Francisco Administrative Code for the purposes set forth therein and in Section 429.5(b), including the creation, installation, exhibition, conservation, preservation, and restoration of works of public art and for capital improvements to non profit arts facilities ("In-Lieu Fee for Public Artwork Trust") within the C-3 District or within a half mile of the boundary of the C-3 District or, if the project is within another zoning district, within a half mile of the project boundary, or
(C) to expend a portion of the remainder on-site and deposit the rest into the Public Artwork Trust Fund.
As provided in Section 402, the project sponsor shall pay the fee to the Development Fee Collection Unit at DBI.
(2) Residential Development Projects. Prior to issuance of a building or site permit for a residential development project subject to the requirements of Section 429.1 et seq., the sponsor shall elect one of the options listed below to fulfill any requirements imposed as a condition of approval and to notify the Arts Commission and the Department of their choice of the following:
(B) Option to Contribute 100% of Public Art Fee Amount to Public Artwork Trust Fund. Effective on the effective date of Ordinance No. 62-12 for a project that has not received its first construction document, and except as provided herein, the project sponsor may pay the Public Art Fee for deposit in the Public Artwork Trust Fund established in Section 10.100-29 of the San Francisco Administrative Code for the purposes set forth therein and in Section 429.5(b), including the creation, installation, exhibition, conservation, preservation, and restoration of works of public art and for capital improvements to nonprofit arts facilities ("In-Lieu Fee for Public Artwork Trust") within the C-3 District or within a half mile of the boundary of the C-3 District or, if the project is within another zoning district, within a half mile of the project boundary. As provided in Section 402, the project sponsor shall pay the fee to the Development Fee Collection Unit at DBI.
(C) Option to Expend a Portion of the Public Art Fee Amount to On-Site Public Artwork and the Remainder to the Public Artwork Trust Fund. Effective on the effective date of Ordinance No. 62-12
a project that has not received its first construction document may elect to expend a portion of the Public Art Fee for the acquisition of On-Site Public Artwork that shall be subject to the requirements of Subsection (d)(2)(A) above regarding On-Site Public Artwork, and deposit the remaining balance of the Public Art Fee into the Public Artwork Trust Fund. As provided in Section 402, the project sponsor shall pay the fee to the Development Fee Collection Unit at DBI.
(e) Department's Notice to Development Fee Collection Unit of Sponsor's Choice. After the project sponsor has notified the Arts Commission and the Department of the choice to fulfill the requirements of Section 429.1 et seq., as required by Section (d)(1) or (2) above, the Department shall immediately notify the Development Fee Collection Unit at DBI of the project sponsor's choice.
(f) Development Fee Collection Unit Notice to Arts Commission and Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Arts Commission and to the Department prior to issuing the first certificate of occupancy for any development project subject to Section 429.1 et seq. that will fulfill all or part of the requirements with an option other than the project sponsor's payment of an in-lieu fee to verify that the artwork was placed in the agreed upon location with the appropriate ADA compliant signage. If the Arts Commission or the Department notifies the Unit at such time that the sponsor has not satisfied the requirements, the Director of DBI shall deny any and all certificates of occupancy until the subject project is brought into compliance with the requirements of Section 429.1 et seq.
(g) Process for Revisions of Determination Requirement. In the event that the Department or the Planning Commission takes action affecting any development project subject to Section 429.1 et seq., and such action is subsequently modified, superseded, vacated, or reversed by the Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) of this Article shall be followed.
AMENDMENT HISTORY
SEC. 429.4. COMPLIANCE BY PROVIDING ON-SITE PUBLIC ARTWORK.
(a) Installation. The project sponsor must install the public art in compliance with this Section 429.4: (1) in areas on the site of the building or addition so that the public art is clearly visible from the public sidewalk or the open-space feature required by Section 138, or (2) on the site of the open-space feature provided pursuant to Section 138, or (3) in a publicly accessible lobby area of a Hotel (“On-Site Public Artwork”). Said On-Site Public Artwork shall be installed prior to issuance of the first certificate of occupancy; provided, however, that if the Zoning Administrator concludes that it is not feasible to install the Artwork within that time and that adequate assurance is provided that the Artwork will be installed in a timely manner, the Zoning Administrator may extend the time for installation for a period of not more than 12 months. Said works of art may include sculpture, bas-relief, murals, mosaics, decorative water features, tapestries or other artworks permanently affixed to the building or its grounds, or a combination thereof, but may not include architectural features of the building, nor artwork designed by the architect, except as permitted with respect to the in lieu contribution regarding publicly owned buildings meeting the criteria described above. Artworks shall be displayed in a manner that will enhance their enjoyment by the general public. The type and location of Artwork, but not the artistic merits of the specific artwork proposed, shall be approved by the Zoning Administrator in accordance with the provisions of Section 309 of this Code.
(b) Recognition of Artists. An ADA compliant plaque identifying the creator, name (if any), and installation date of the On-Site Public Artwork required by subsection (a) above shall be placed at a publicly conspicuous location within view of the On-Site Public Artwork at the same time the Artwork is installed.
(c) Removal, Relocation, or Alteration of Artwork. Once the project sponsor has installed and completed the final Artwork, the project sponsor, building owner and any third party may not remove, relocate or alter the Artwork without notifying and consulting with the Planning Department at least 120 days prior to the proposed removal, relocation or alteration. A project sponsor’s or building owner’s notice of intent to the Planning Department to remove, relocate, or alter Artwork shall include written approval of the proposed removal, relocation, or alteration from the artist or artist’s estate, if applicable, under the federal Visual Artists Rights Act (17 U.S.C. §§106A and 113(d)) (“VARA”), the California Art Preservation Act (Cal. Civil Code §§987 et seq.) (“CAPA”), or any successor laws protecting the integrity of Artwork, or a written waiver from the artist expressly waiving their rights, if any, under VARA and CAPA. The Planning Department shall not approve any removal, relocation, or alteration unless it finds any removed Artwork will be replaced with Artwork of equal or greater value or that any relocation or alteration is only a minor modification. If a project sponsor does remove, relocate, or alter the Artwork without notification and approval of the Planning Department, the Planning Department is authorized to pursue enforcement of this Section under Section 176 of this Code or to pursue any other remedy permitted by law.
(d) Removal, Relocation, or Alteration of Artwork for Existing 100% Affordable Housing Projects. Notwithstanding the requirements of subsection (c) of this Section 429.4, 100% Affordable Housing Projects for which public art has already been installed as of the effective date of the ordinance in Board of Supervisors File No. 230706, including a 100% affordable residential building built to satisfy affordable housing requirements of market rate projects, may remove, relocate, or alter Artwork if the Artwork has been vandalized or severely compromised such that it cannot be restored to its original condition without significant financial expenditures. A project sponsor’s or building owner’s notice of intent to the Zoning Administrator to remove, relocate, or alter Artwork shall include: (1) documentation of vandalism or severely compromised conditions and (2) written approval of the proposed removal, relocation, or alteration from the artist or artist’s estate, if applicable, under the federal Visual Artists Rights Act (17 U.S.C. §§106A and 113(d)) (“VARA”), the California Art Preservation Act (Cal. Civil Code §§987 et seq.) (“CAPA”), or any successor laws protecting the integrity of Artwork, or a written waiver from the artist expressly waiving their rights, if any, under VARA and CAPA. The Zoning Administrator, after a duly noticed public hearing, may approve, conditionally approve, or deny removal, relocation, or alteration of the Artwork. The Zoning Administrator shall take into account the financial burden of repair and the extent of the vandalism, including past history of repeat vandalism, and likelihood that the Artwork may be vandalized again. For cases proposing removal under this subsection (d), the Zoning Administrator shall consider the viability of relocating the Artwork elsewhere on the property. In regard to relocation or alteration, including relocation of the Artwork elsewhere on the property, if the Zoning Administrator determines that relocation or alteration is a minor modification of the Artwork, then no hearing is required. Notice of the Zoning Administrator’s hearing shall be sent to property owners within a 300 foot radius of the subject site at least seven days before the hearing. Enforcement of this subsection (d) shall be in accordance with Section 429.4(c).
AMENDMENT HISTORY
SEC. 429.5. ARTS COMMISSION PUBLIC ARTWORK TRUST FUND.
(a) All monies contributed to the Public Artwork Trust Fund pursuant to this Section 429 shall be deposited in the special fund maintained by the Controller called the Public Artwork Trust under Section
10.100-29
of the Administrative Code, as may be amended from time to time. The receipts in the Trust are hereby appropriated in accordance with law to be used by the Arts Commission within the C-3 District or within a half mile of the boundary of the C-3 District or, if the project is within another zoning district, within a half mile of the project boundary to enhance the visibility and quality of artworks in the public realm and to improve the public's access and enjoyment of the artworks in the public realm.
(b) With the above objective, through a competitive public process the Public Artwork Trust Fund shall be overseen by the Arts Commission and used to fund:
(2) the conservation, preservation, and restoration, but not maintenance of temporary and permanent public works of art in the public realm and within the C-3 District or within a half mile of the boundary of the C-3 District or, if the project is within another zoning district, within a half mile of the project boundary;
(3) distribution of funds to San Francisco nonprofit arts entities and artists to fund temporary public art projects, performance, film and video screenings, and capital improvements for publicly accessible cultural facilities within the C-3 District or within a half mile of the boundary of the C-3 District or, if the project is within another zoning district, within a half mile of the project boundary; and
(4) the reasonable administrative expenses of the Arts Commission staff in connection with administering compliance with the requirements of this Section on a time and materials basis for managing projects funded through the Public Artworks Trust, not to exceed 20% of the costs for any one project.
(c) The Arts Commission shall administer and expend the Public Artwork Trust Fund, and shall have the authority to prescribe rules and regulations governing the Fund that are consistent with this Section.
AMENDMENT HISTORY
Former divisions (b)(i) through (iv) redesignated as (b)(1) through (4); Ord. 56-13
, Eff. 4/27/2013.
SEC. 429.6. RECOGNITION OF ARCHITECTS IN C-3 DISTRICTS.
In the case of construction of a new building or an addition of floor area in excess of 25,000 square feet to an existing building in a C-3 District, an ADA compliant plaque or cornerstone identifying the project architect and the erection date of the building shall be placed at a publicly conspicuous location on or in the building prior to the issuance of the first certificate of occupancy.
AMENDMENT HISTORY
Section and section header amended; Ord. 217-16, Eff. 12/10/2016.
SEC. 429.7. LIEN PROCEEDINGS.
A project sponsor's failure to comply with the requirements of Section 429.3(d)(2)(B) or (C)1 shall be cause for the Development Fee Collection Unit at DBI to institute lien proceedings to make the in-lieu fee, plus interest and any deferral surcharge, a lien against all parcels used for the development project in accordance with Section 408 of this Article and Section 107A.13.15 of the San Francisco Building Code.
CODIFICATION NOTE
[BICYCLE PARKING FEE]
SEC. 432.1. PURPOSE AND FINDINGS.
(a) Purpose. New development in Central SoMa will increase the resident and employee populations, generating new demand for use of community service facilities, such as cultural facilities, health clinics, services for people with disabilities, and job training centers. New revenues to fund investments in community services are necessary to maintain the existing level of service. This fee will generate revenue that will be used to ensure an expansion in community service facilities in Central SoMa as new development occurs.
(b) Findings. In adopting the Central SoMa Plan (Ordinance No. 296-18, on file with the Clerk of the Board of Supervisors in File No. 180184), the Board of Supervisors reviewed the Central SoMa Community Facilities Nexus Study, prepared by Economic & Planning Systems and dated March 2016. The Board of Supervisors reaffirms the findings and conclusions of this study as they relate to the impact of new development in Central SoMa on community services facilities, and hereby readopts the findings contained in the Central SoMa Community Facilities Nexus Study.
(Added by Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019)
SEC. 432.2. APPLICATION OF FEES.
(a) Applicable Projects. The Central SoMa Community Services Facilities Fee is applicable to any development project in the Central SoMa Special Use District that:
(1) Is in any Central SoMa Fee Tier, pursuant to Section 423; and
(2) Includes new construction or an addition of space in excess of 800 gross square feet.
(b) Fee Calculation. For applicable projects, the Fee is as follows:
(1) For Residential uses, $1.30 per gross square foot of net additional gross square feet, net replacement of gross square feet from PDR uses, or net change of use of gross square feet from PDR uses.
(2) For Non-residential uses,
(A) $1.75 per gross square foot of net additional gross square feet, net replacement of gross square feet from PDR uses, or net change of use of gross square feet from PDR uses.
(B) $0.45 per gross square foot of net replacement of gross square feet from Residential uses or net change of use of gross square feet from Residential uses.
(c) Option for In-Kind Provision of Community Improvements and Fee Credits. Project sponsors may propose to directly provide community improvements to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a fee waiver for the Central SoMa Community Services Facilities Fee from the Planning Commission, subject to the following rules and requirements:
(1) Approval Criteria. The City shall not enter into an In-Kind Agreement unless the proposed in-kind improvements meet an identified community need as analyzed in the Central SoMa Community Improvements Program and substitute for improvements that could be provided by the Central SoMa Community Services Facilities Public Benefits Fund (as described in Section 432.4). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Central SoMa Plan, by the Interagency Plan Implementation Committee (see Section 36 of the Administrative Code), the Eastern Neighborhoods Citizens Advisory Committee, or other prioritization processes related to Eastern Neighborhoods Citizens community improvements programming. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of this In-Kind Improvements Agreement.
(d) Timing of Fee Payments. The Fee shall be paid to DBI for deposit into the Central SoMa Community Services Facilities Fund at the time required by Section 402(d).
(e) Waiver or Reduction of Fees. Development projects may be eligible for a waiver or reduction of impact fees, pursuant to Section 406.
AMENDMENT HISTORY
Division (d) amended; Ord. 63-20, Eff. 5/25/2020.
SEC. 432.3. IMPOSITION OF CENTRAL SOMA COMMUNITY SERVICES FACILITIES FEE.
(a) Determination of Requirements. The Department shall determine the applicability of Section 432 et seq. to any development project requiring a first construction document and, if Section 432 et seq. is applicable, the Department shall determine the amount of the Central SoMa Community Services Facilities Fees required and shall impose these requirements as a condition of approval for issuance of the first construction document for the development project. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Department Notice to Development Fee Collection Unit at DBI. Prior to the issuance of a building or site permit for a development project subject to the requirements of Section 432 et seq., the Department shall notify the Development Fee Collection Unit at DBI of its final determination of the amount of the Central SoMa Community Services Facilities Fees required, including any reductions calculated for an In-Kind Improvements Agreement, in addition to the other information required by Section 402(b) of this Article.
(c) Development Fee Collection Unit Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the first certificate of occupancy for any development project subject to Section 432 et seq. that has elected to fulfill all or part of its Central SoMa Community Services Facilities Fee requirement with an In-Kind Improvements Agreement. If the Department notifies the Unit at such time that the sponsor has not satisfied any of the terms of the In-Kind Improvements Agreement, the Director of DBI shall deny any and all certificates of occupancy until the project complies with the requirements of Section 432 et seq., either through conformance with the In-Kind Improvements Agreement or payment of the remainder of the Central SoMa Community Services Facilities Fee that would otherwise have been required, plus a deferral surcharge as set forth in Section 107A.13.3.1 of the San Francisco Building Code.
(d) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Section 432 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Department or the Commission, Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) of this Article shall be followed.
(Added by Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019)
SEC. 432.4. THE CENTRAL SOMA COMMUNITY SERVICES FACILITIES FUND.
(a) There is hereby established a separate fund set aside for a special purpose entitled the Central SoMa Community Services Facilities Fund (“Fund”). All monies collected by the Development Fee Collection Unit at DBI pursuant to Section 432.3(b) shall be deposited in a special fund maintained by the Controller. The receipts in the Fund are to be used solely to fund public infrastructure subject to the conditions of this Section.
(b) Expenditures from the Fund shall be administered by the Mayor’s Office of Housing and Community Development, or its successor. The Mayor’s Office of Housing and Community Development or its successor shall have the authority to prescribe rules and regulations governing the Fund.
(1) All monies deposited in the Fund shall be used to design, engineer, and develop community services facilities, including cultural/arts facilities, social welfare facilities, and community health facilities within the area bounded by Market Street, the Embarcadero, King Street, Division Street and South Van Ness Avenue as established in the Central SoMa Plan Implementation Program Document and supported by the findings of the Central SoMa Community Facilities Nexus Study.
(2) Funds may be used for administration and accounting of fund assets, for additional studies as detailed in the Central SoMa Plan Implementation Program Document, and to defend the Central SoMa Community Services Facilities Impact Fee against legal challenge, including the legal costs and attorney’s fees incurred in the defense. Administration of this fund includes time and materials associated with reporting requirements, facilitating any necessary or required public meetings aside from Planning Commission hearings, and maintenance of the fund. Monies from the Fund may be used by the Planning Commission to commission economic analyses for the purpose of revising the fee, and/or to complete an updated nexus study to demonstrate the relationship between development and the need for public facilities and services if this is deemed necessary. Monies used for the purposes consistent with this subsection (2) shall not exceed five percent of the total fees collected. All interest earned on this account shall be credited to the Central SoMa Community Services Facilities Fund.
(3) The Mayor’s Office of Housing and Community Development shall report annually to the Board of Supervisors on the current status of the fund, the amounts approved for disbursement, and the number and types of housing units or households assisted.
(4) All funds are justified and supported by the Central SoMa Community Facilities Nexus Study, adopted as part of the Central SoMa Plan (Ordinance No. 296-18, on file with the Clerk of the Board of Supervisors in File No. 180184). Implementation of the Fee and Fund are monitored according to the Eastern Neighborhoods Plan Monitoring Program required by the Administrative Code Section 10E.
AMENDMENT HISTORY
Division (b)(1) amended; Ord. 47-21, Eff. 5/17/2021.
[CENTRAL SOMA INFRASTRUCTURE IMPACT FEE AND FUND]
SEC. 433.1. PURPOSE AND FINDINGS.
(a) Purpose. New development in the Central SoMa Plan Area will increase the resident and employee populations, generating new demand for use of community-serving infrastructure such as transit, complete streets, and recreation and open space. New revenues to fund investments in this infrastructure are necessary to maintain the existing level of service. This fee will generate revenue that will be used to ensure an expansion in community-serving infrastructure in Central SoMa as new development occurs.
(b) Findings. The Board of Supervisors reviewed the San Francisco Citywide Nexus Analysis (“Nexus Analysis”), and the San Francisco Infrastructure Level of Service Analysis, both on file with the Clerk of the Board in File No. 230764 and, pursuant to Section 401A, adopts the findings and conclusions of those studies and the general and specific findings in that Section, specifically including the Recreation and Open Space Findings, Complete Streets Findings, and Transit Infrastructure Findings, and incorporates those by reference herein to support the imposition of the fees under this Section.
AMENDMENT HISTORY
Division (b) amended; Ord. 193-23, Eff. 10/16/2023.
SEC. 433.2. APPLICATION OF FEES.
(a) Applicable Projects. The Central SoMa Infrastructure Impact Fee is applicable to any development project in the Central SoMa Special Use District that:
(1) Is in any Central SoMa Tier, pursuant to Section 423; and
(2) Includes new construction or an addition of space in excess of 800 gross square feet.
(b) Fee Calculation. For applicable projects, the Fee is as follows:
(1) For Residential uses in Central SoMa Fee Tier B:
(A) For Owned Units, as defined in Section 415.2, $20.00 per gross square foot of net additional gross square feet, net replacement of gross square feet from PDR uses, or net change of use of gross square feet from PDR uses.
(B) For Rental Units, defined as units that are not Owned Units as defined in Section 415.2, $10.00 per gross square foot of net additional gross square feet, net replacement of gross square feet from PDR uses, or net change of use of gross square feet from PDR uses.
(2) For Non-residential uses in Central SoMa Fee Tier A that are seeking an Office Allocation of 50,000 gross square feet or more pursuant to the requirements of Planning Code Section 321, $21.50 per gross square foot of net additional gross square feet, net replacement of gross square feet from PDR uses, or net change of use of gross square feet from PDR uses.
(3) For Non-residential uses in Central SoMa Fee Tier A that are not seeking an Office Allocation of 50,000 gross square feet or more pursuant to the requirements of Planning Code Section 321:
(A) $41.50 per gross square foot of net additional gross square feet, net replacement of gross square feet from PDR uses, or net change of use of gross square feet from PDR uses;
(B) $21.50 per gross square foot of net replacement of gross square feet from Residential uses or net change of use of gross square feet from Residential uses.
(4) For Non-residential uses in Central SoMa Fee Tier C that are not seeking an Office Allocation of 50,000 gross square feet or more pursuant to the requirements of Planning Code Section 321, $20.00 per gross square foot of net additional gross square feet, net replacement of gross square feet from PDR uses, or net change of use of gross square feet from PDR uses.
(c) Option for In-Kind Provision of Community Improvements and Fee Credits. Project sponsors may propose to directly provide community improvements to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a fee waiver for the Central SoMa Infrastructure Impact Fee from the Planning Commission, subject to the following rules and requirements:
(1) Approval Criteria. The City shall not enter into an In-Kind Agreement unless the proposed in-kind improvements meet an identified community need as analyzed in the Central SoMa Community Improvements Program and substitute for improvements that could be provided by the Central SoMa Infrastructure Public Benefits Fund (as described in Section 433.4). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Central SoMa Plan, by the Interagency Plan Implementation Committee (see Section 36 of the Administrative Code), the Eastern Neighborhoods Citizens Advisory Committee, or other prioritization processes related to Eastern Neighborhoods Citizens community improvements programming. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of this In-Kind Improvements Agreement.
(d) Timing of Fee Payments. The Fee shall be paid to DBI for deposit into the Central SoMa Infrastructure Impact Fund at the time required by Section 402(d).
(e) Waiver or Reduction of Fees. Development projects may be eligible for a waiver or reduction of impact fees, pursuant to Section 406.
AMENDMENT HISTORY
SEC. 433.3. IMPOSITION OF CENTRAL SOMA INFRASTRUCTURE IMPACT FEE.
(a) Determination of Requirements. The Department shall determine the applicability of Section 433.2 et seq. to any development project requiring a first construction document and, if Section 433.2 et seq. is applicable, the Department shall determine the amount of the Central SoMa Infrastructure Impact Fees required and shall impose these requirements as a condition of approval for issuance of the first construction document for the development project. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Department Notice to Development Fee Collection Unit at DBI. Prior to the issuance of a building or site permit for a development project subject to the requirements of Sections 433 et seq., the Department shall notify the Development Fee Collection Unit at DBI of its final determination of the amount of the Central SoMa Infrastructure Impact Fees required, including any reductions calculated for an In-Kind Improvements Agreement, in addition to the other information required by Section 402(b) of this Article.
(c) Development Fee Collection Unit Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the first certificate of occupancy for any development project subject to Section 433 et seq. that has elected to fulfill all or part of its Central SoMa Infrastructure Impact Fee requirement with an In-Kind Improvements Agreement. If the Department notifies the Unit at such time that the sponsor has not satisfied any of the terms of the In-Kind Improvements Agreement, the Director of DBI shall deny any and all certificates of occupancy until the project complies with the requirements of Section 433 et seq., either through conformance with the In-Kind Improvements Agreement or payment of the remainder of the Central SoMa Infrastructure Impact Fees that would otherwise have been required, plus a deferral surcharge as set forth in Section .13.3.1 of the San Francisco Building Code.
(d) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Section 433 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Department or the Commission, Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) of this Article shall be followed.
(Added by Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019)
SEC. 433.4. THE CENTRAL SOME INFRASTRUCTURE IMPACT FUND.
(a) There is hereby established a separate fund set aside for a special purpose entitled the Central SoMa Infrastructure Impact Fund (“Fund”). All monies collected by the Development Fee Collection Unit at DBI pursuant to Section 433.3(b) shall be deposited in a special fund maintained by the Controller. The receipts in the Fund to be used solely to fund Public Benefits subject to the conditions of this Section.
(b) Expenditures from the Fund shall be recommended by the Interagency Plan Implementation Committee for allocation and administration by the Board of Supervisors.
(1) All monies deposited in the Fund shall be used to design, engineer, and develop community public transit and recreation and open space improvements as established in the Central SoMa Plan and the Central SoMa Plan Implementation Program Document.
(2) Funds may be used for administration and accounting of fund assets, for additional studies as detailed in the Central SoMa Plan Implementation Program Document, and to defend the Central SoMa Infrastructure Impact Fee against legal challenge, including the legal costs and attorney’s fees incurred in the defense. Administration of this fund includes time and materials associated with reporting requirements, facilitating any necessary or required public meetings aside from Planning Commission hearings, and maintenance of the fund. Monies from the Fund may be used by the Planning Commission to commission economic analyses for the purpose of revising the fee, and/or to complete an updated nexus study to demonstrate the relationship between development and the need for public facilities and services if this is deemed necessary. Monies used for the purposes consistent with this subsection (2) shall not exceed five percent of the total fees collected. All interest earned on this account shall be credited to the Central SoMa Infrastructure Impact Fund.
(3) All funds are justified and supported by the San Francisco Citywide Nexus Analysis prepared by AECOM dated March 2014 (“Nexus Analysis”), and the Transportation Sustainability Fee Nexus Study (TSF Nexus Study), dated May, 2015, on file with the Clerk of the Board in Files Nos. 150149 and 150790. Implementation of the Fee and Fund are monitored according to the Eastern Neighborhoods Plan Monitoring Program required by Section 10E of the Administrative Code.
AMENDMENT HISTORY
Division (b)(1) amended; Ord. 47-21, Eff. 5/17/2021.
[—]
SEC. 435.1 PURPOSE AND FINDINGS SUPPORTING UNION SQUARE PARK, RECREATION, AND OPEN SPACE FEE.
(a) Purpose. The purpose of the Union Square Park, Recreation, and Open Space Fee is to provide funding to increase the supply of park, recreation, and open space facilities to serve the needs attributable to new office development in the C-3-R Downtown Retail Zoning District. The Board of Supervisors hereby finds that the Union Square area, most of which is zoned as the C-3-R Downtown Retail Zoning District, is a world-class retail destination that draws both tourists and Bay Area residents with its combination of walkable shopping and dining, excellent transit access, and top-tier hospitality. As new office development occurs, additional park, recreation, and open space facilities are needed to maintain the quality of urban experience that makes downtown San Francisco an attractive place to do business, live, and visit.
(b) Findings. The Board of Supervisors has reviewed the San Francisco Citywide Nexus Analysis (“Nexus Analysis”), on file with the Clerk of the Board of Supervisors in File No. 230764. In accordance with the California Mitigation Fee Act, Government Code Section 66001(a), the Board of Supervisors adopts the findings and conclusions of that study, and incorporates those findings and conclusions by reference to support the imposition of the fees under this Section.
AMENDMENT HISTORY
Division (b) amended; Ord. 193-23, Eff. 10/16/2023.
SEC. 435.2. DEFINITIONS.
See Section 401 of this Article.
New Ordinance Notice
Publisher's Note: This section has been AMENDED by new legislation (Ord. 50-22
, approved 3/31/2022, effective 5/1/2022). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.
See Section 401 of this Article.
“Ownership Housing Project” shall mean a housing project consisting solely of units that are condominiums, stock cooperatives, community apartments, or detached single-family homes. Ownership Housing Projects include all of the units in a housing development including Affordable Units and Market Rate Housing.
“Rental Housing Project” shall mean a housing project consisting solely of units owned by a single entity and rented to individual tenants. Rental Housing Projects include all of the units in a housing development including Affordable and Market Rate Housing.
(Added as Sec. 315.1 by Ord. 37-02, File No. 001262, App. 4/5/2002; amended by Ord. 219-06, File No. 051685, App. 8/10/2006; Ord. 101-07, File No. 060529, App. 5/4/2007; Ord. 198-07, File No. 070444, App. 8/10/2007; Ord. 298-08, File No. 081153, App. 12/19/2008; redesignated and amended by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 76-16
, File No. 160255, App. 5/13/2016, Eff. 6/12/2016; Ord. 7-17, File No. 161157, App. 1/20/2017, Eff. 2/19/2017; Ord. 158-17, File No. 161351, App. 7/27/2017, Eff. 8/26/2017; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021)
AMENDMENT HISTORY
New Ordinance Notice
Publisher's Note: This section has been AMENDED by new legislation (Ord. 187-23
, approved 9/14/2023, effective 10/15/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.
New Ordinance Notice
Publisher's Note: This section has been AMENDED by new legislation (Ord. 201-23
, approved 10/12/2023, effective 11/12/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.
(a) Notwithstanding any other provision to the contrary in this Code, Section
415.1 et seq. shall apply to any housing project that consists of 10 or more units where an individual project or a phased project is to be undertaken and where the total undertaking comprises a project with 10 or more units, even if the development is on separate but adjacent lots. This provision also applies to housing projects that requires Commission approval of replacement housing destroyed by earthquake, fire or natural disaster only where the destroyed housing included units restricted under the Inclusionary Affordable Housing Program or the City's predecessor inclusionary housing policy, condominium conversion requirements, or other affordable housing program.
(b) Except as provided in subsection (3) below, any development project that has submitted a complete Environmental Evaluation application prior to January 12, 2016 shall comply with the Affordable Housing Fee requirements, the on-site affordable housing requirements or the off-site affordable housing requirements, and all other provisions of Section 415.1 et seq., as applicable, in effect on January 12, 2016. For development projects that have submitted a complete Environmental Evaluation application on or after January 1, 2013, the requirements set forth in Planning Code Sections 415.5, 415.6, and 415.7 shall apply to certain development projects consisting of 25 dwelling units or more during a limited period of time as follows.
(1) If a development project is eligible and elects to provide on-site affordable housing, the development project shall provide the following amounts of on-site affordable housing.
(A) Any development project that has submitted a complete Environmental Evaluation application prior to January 1, 2014 shall provide affordable units in the amount of 13% of the number of units constructed on-site.
(B) Any development project that has submitted a complete Environmental Evaluation application prior to January 1, 2015 shall provide affordable units in the amount of 13.5% of the number of units constructed on-site.
(C) Any development project that has submitted a complete Environmental Evaluation application on or prior to January 12, 2016 shall provide affordable units in the amount of 14.5% of the number of units constructed on-site.
(E) Notwithstanding the provisions set forth in subsections (b)(1)(A), (B) and (C) of this Section 415.3, if a development project is located in a UMU Zoning District or in the South of Market Youth and Family Zoning District, and is eligible and elects to provide on-site units pursuant to Section 415.5(g), such development project shall comply with the on-site requirements applicable within such Zoning Districts, as they existed on January 12, 2016, plus the following additional amounts of on-site affordable units: (i) if the development project has submitted a complete Environmental Evaluation application prior to January 1, 2014, the Project Sponsor shall provide additional affordable units in the amount of 1% of the number of units constructed on-site; (ii) if the development project has submitted a complete Environmental Evaluation application prior to January 1, 2015, the Project Sponsor shall provide additional affordable units in the amount of 1.5% of the number of units constructed on-site; or (iii) if the development project has submitted a complete Environmental Evaluation application on or prior to January 12, 2016, the Project Sponsor shall provide additional affordable units in the amount of 2% of the number of units constructed on-site.
(F) Any development project that has submitted a complete Environmental Evaluation application on or before January 12, 2016 and seeks to utilize a density bonus under State Law shall use its best efforts to provide on-site affordable units in the amount of 25% of the number of units constructed on-site and shall consult with the Planning Department about how to achieve this amount of inclusionary affordable housing. An applicant seeking a density bonus under the provisions of State Law shall provide reasonable documentation to establish eligibility for a requested density bonus, incentives or concessions, and waivers or reductions of development standards.
(2) If a development project pays the Affordable Housing Fee or elects to provide off-site affordable housing, the development project shall provide the following fee amount or amounts of off-site affordable housing during the limited periods of time set forth below.
(A) Any development project that has submitted a complete Environmental Evaluation application prior to January 1, 2014, shall pay a fee or provide off-site housing in an amount equivalent to 25% of the number of units constructed on-site.
(B) Any development project that has submitted a complete Environmental Evaluation application prior to January 1, 2015, shall pay a fee or provide off-site housing in an amount equivalent to 27.5% of the number of units constructed on-site.
(C) Any development project that has submitted a complete Environmental Evaluation application on or prior to January 12, 2016 shall pay a fee or provide off-site housing in an amount equivalent to 30% of the number of units constructed on-site.
(E) Notwithstanding the provisions set forth in subsections (b)(2)(A), (B) and (C) of this Section 415.3, for development projects proposing buildings over 120 feet in height, as measured under the requirements set forth in the Planning Code, except for buildings up to 130 feet in height located both within a special use district and within a height and bulk district that allows a maximum building height of 130 feet, such development projects shall pay a fee or provide off-site housing in an amount equivalent to 30% of the number of units constructed on-site. Any buildings up to 130 feet in height located both within a special use district and within a height and bulk district that allows a maximum building height of 130 feet shall comply with the provisions of subsections (b)(2)(A), (B) and (C) of this Section 415.3 during the limited periods of time set forth therein.
(F) Notwithstanding the provisions set forth in subsections (b)(2)(A), (B) and (C) of this Section 415.3, if a development project is located in a UMU Zoning District or in the South of Market Youth and Family Zoning District, and pays the Affordable Housing Fee or elects to provide off-site affordable housing pursuant to Section 415.5(g), or elects to comply with a Land Dedication Alternative, such development project shall comply with the fee, off-site or land dedication requirements applicable within such Zoning Districts, as they existed on January 12, 2016, plus the following additional amounts for the Affordable Housing Fee or for land dedication or off-site affordable units: (i) if the development project has submitted a complete Environmental Evaluation application prior to January 1, 2014, the Project Sponsor shall pay an additional fee, or provide additional land dedication or off-site affordable units, in an amount equivalent to 5% of the number of units constructed on-site; (ii) if the development project has submitted a complete Environmental Evaluation application prior to January 1, 2015, the Project Sponsor shall pay an additional fee, or provide additional land dedication or off-site affordable units, in an amount equivalent to 7.5% of the number of units constructed on-site; or (iii) if the development project has submitted a complete Environmental Evaluation application on or prior to January 12, 2016, the Project Sponsor shall pay an additional fee, or provide additional land dedication or off-site affordable units, in an amount equivalent to 10% of the number of units constructed on-site. Notwithstanding the foregoing, a development project shall not pay a fee or provide off-site units in a total amount greater than the equivalent of 30% of the number of units constructed on-site.
(G) Any development project consisting of 25 dwelling units or more that has submitted a complete Environmental Evaluation application on or prior to January 12, 2016, and elects to provide off-site affordable housing, may provide off-site affordable housing by acquiring an existing building to fulfill all or part of the requirements set forth in this Section 415.3 and in Section 415.7 with an equivalent amount of units as specified in this Section 415.3(b)(2), as reviewed and approved by the Mayor's Office of Housing and Community Development and consistent with the parameters of its Small Sites Acquisition and Rehabilitation Program, in conformance with the income limits for the Small Sites Program.
(3) During the limited period of time in which the provisions of Section 415.3(b) apply, the following provisions shall apply:
(A) For any housing development that is located in an area with a specific affordable housing requirement set forth in an Area Plan or a Special Use District, or in any other section of the Code such as Section 419, with the exception of the UMU Zoning District or in the South of Market Youth and Family Zoning District, the higher of the affordable housing requirement set forth in such Area Plan or Special Use District or in Section 415.3(b) shall apply;
(B) Development projects that are within the Central SoMa Special Use District; that are designated as Central SoMa Development Tier A, B, or C, as defined in Section 423.2; and that submitted a complete Environmental Evaluation application prior to January 12, 2016 shall be subject to the affordable housing requirements set forth in Sections 415.5, 415.6, and 415.7 that apply to projects that submitted a complete Environmental Evaluation Application on or after January 13, 2016 and before December 31, 2017; and
(C) Any affordable housing impact fee paid pursuant to an Area Plan or Special Use District shall be counted as part of the calculation of the inclusionary housing requirements contained in Planning Code Sections 415.1 et seq. In the Divisadero Street NCT, the provisions of Section 415.3(b) shall not apply to certain sites, as set forth in the Divisadero Street NCT Affordable Housing Fee And Requirements, Planning Code Sections 428.1 et seq.
(4) Any development project that constructs on-site or off-site affordable housing units as set forth in subsection (b) of this Section 415.3 shall diligently pursue completion of such units.
(A) In the event the project has not been approved, which shall mean approval following any administrative appeal to the relevant City board, on or before December 7, 2018, the development project shall comply with the inclusionary affordable housing requirements set forth in Sections 415.5, 415.6, and 415.7, as applicable. Such deadline shall be extended in the event of any litigation seeking to invalidate the City’s approval of such project, for the duration of the litigation.
(B) In the event the project has been approved on or before December 7, 2018, but the project sponsor does not procure a building permit or site permit for construction of the affordable housing units within 18 months of the project’s approval, or by December 7, 2018, whichever is later, the development project shall comply with the inclusionary affordable housing requirements set forth in Section 415.5, 415.6, and 415.7 as applicable. Such deadline shall be extended in the event of any litigation seeking to invalidate the City’s approval of such project, for the duration of the litigation. For purposes of this subsection (B), the date of approval shall be the date of any administrative appeal to the relevant City board.
(c) The new inclusionary affordable housing requirements contained in Sections 415.5, 415.6, and 415.7, as well as the provisions contained in Section 415.3(b), shall not apply to (1) any mixed use project that is located in a special use district for which a height limit increase has been approved by the voters prior to January 12, 2016 to satisfy the requirements of Administrative Code Section 61.5.1, or (2) any mixed use project that has entered into a development agreement or other similar binding agreement with the City on or before January 12, 2016, or (3) any housing development project that has procured a final first discretionary development entitlement approval, which shall mean approval following any administrative appeal to the relevant City board, on or before January 12, 2016. The inclusionary housing requirements for these projects shall be those requirements contained in the projects' existing approvals.
(d) Notwithstanding the provisions set forth in Section 415.3(b), or the inclusionary affordable housing requirements contained in Sections 415.5, 415.6, and 415.7, such requirements shall not apply to any project, consisting of 25 dwelling units or more, that has not submitted a complete Environmental Evaluation Application on or before January 12, 2016, if the project is located within the Eastern Neighborhoods Mission Planning Area, the North of Market Residential Special Use District Subarea 1 or Subarea 2, or the SOMA Neighborhood Commercial Transit District, because inclusionary affordable housing levels for those areas will be addressed in forthcoming area plan processes or an equivalent community planning process. Until such planning processes are complete and new inclusionary housing requirements for projects in those areas are adopted, projects consisting of 25 units or more shall (1) pay a fee or provide off-site housing in an amount equivalent to 30% if the Principal Project is a Rental Housing Project, or 33% if the Proposed Project is an Ownership Housing Project, or (2) provide Affordable Units in the amount of 25% of the number of units constructed on-site in a Rental Housing Project, or 27% of the number of units constructed on-site in an Ownership Housing Project. For Rental Housing Projects, 15% of the on-site Affordable Units shall be affordable to low-income households, 5% shall be affordable to moderate-income households and 5% shall be affordable to middle-income households. For Ownership Housing Projects, 15% of the on-site Affordable Units shall be affordable to low-income households, 6% shall be affordable to moderate-income households and 6% shall be affordable to middle-income households.
(e) The City may continue to enter into development agreements or other similar binding agreements for projects that provide inclusionary affordable housing at levels that may be different from the levels set forth in Sections 415.1 et seq.
(1) That portion of a housing project located on property owned by the United States or any of its agencies or leased by the United States or any of its agencies, for a period in excess of 50 years, with the exception of such property not used exclusively for a governmental purpose;
(2) That portion of a housing project located on property owned by the State of California or any of its agencies, with the exception of such property not used exclusively for a governmental or educational purpose; or
(3) That portion of a housing project located on property under the jurisdiction of the San Francisco Office of Community Investment and Infrastructure or the Port of San Francisco where the application of Section 415.1 et seq. is prohibited by California or local law.
(4) A 100% affordable housing project in which rents are controlled or regulated by any government unit, agency or authority, excepting those unsubsidized and/or unassisted units which are insured by the United States Department of Housing and Urban Development. The Mayor's Office of Housing and Community Development must represent to the Planning Commission or Planning Department that the project meets this requirement.
(A) Restrictions. If a project sponsor takes advantage of this Subsection, all of the rules and regulations of the programs or recorded documents guaranteeing the affordability of the units shall govern the units and the requirements of this Program shall not apply.
(B) Conditions. In order to qualify for this provision, the project sponsor must record an NSR against the property that provides that, in the event of foreclosure or for any other reason, the project no longer qualifies as a project meeting the requirements of Subsection (4) the project will either:
(i) pay the Affordable Housing Fee plus interest from the date the project received its first construction document for the project if no affordable units were ever provided or, if affordable units were provided and occupied, then the Affordable Housing Fee with no interest is due on the date the units were no longer occupied by qualifying households; or
(ii) provide the required number of on-site affordable units required at time of original project approval and that those units shall be subject to all of the requirements of this Program.
(C) In the event that there is a foreclosure or other event triggering the requirements of Subsection (B) above, the project sponsor shall record a new NSR specifying the manner in which it complies with this Program, including but not limited to any specific units restricted as affordable under (B)(ii). The new NSR shall provide that the units must comply with all of the requirements of this Program.
(5) A Student Housing project that meets all of the following criteria:
(A) The building or space conversion does not result in loss or conversion of existing housing, including but not limited to rental housing and dwelling units;
(B) An institutional master plan (IMP) pursuant to Section 304.5 is on file with the Planning Department prior to the issuance of any building permit or alteration permit in connection with the creation of the Student Housing project, and, in addition to the requirements of Section 304.5, such IMP shall describe:
(i) to the extent such information is available, the type and location of housing used by its students;
(ii) any plans for the provision of Student Housing;
(iii) the Educational Institution's need for student housing to support its program; and
(iv) the percentage of its students, on an average annual basis, that receive some form of need-based assistance.
(C) MOHCD is authorized to monitor the Student Housing program described in this subsection (f)(5)3
and shall develop a monitoring form. An annual monitoring fee of $792 per building exempted from the Inclusionary Housing Program pursuant to this Section 415.3(f)(5)3
shall be paid to MOHCD by the owner of the real property or the Post-Secondary Educational Institution or Religious Institutions, as defined in Section 102 of this Code. Beginning with the setting of fees for fiscal year 2018-2019, the Controller shall annually adjust the base monitoring fee amount referenced in this subsection (f)(5)(C)3
without further action by the Board of Supervisors, to reflect changes in the two-year average Consumer Price Index (CPI) change for the San Francisco/San Jose Primary Metropolitan Area (PMSA). This process shall occur as follows:
(i) No later than April 15 of each year, MOHCD shall submit the current monitoring fee to the Controller, who shall apply the CPI adjustment to produce a new monitoring fee for the fiscal year beginning July 1. No later than May 15 of each year, the Controller shall file a report with the Board of Supervisors reporting the new monitoring fee and certifying that the fees to be collected will produce sufficient revenue to support the costs of providing the services for which the fee is charged and will not produce revenue that exceeds the costs of providing the services for which the fee is paid.
(ii) No later than July 1 of each year, MOHCD will publish on its website the current monitoring fee amount inclusive of the annual adjustment, and also make the fee amount available upon request at MOHCD’s main office.
(D) The owner of the real property and each Post-Secondary Educational Institution or Institutions shall agree to submit annual documentation to MOHCD and the Planning Department, along with the annual monitoring fee, on or before December 31 of each year, which addresses the following:
(i) Evidence that the Post- Secondary Educational Institution continues to own or otherwise control the Student Housing project under a master lease or other contractual agreement with at least a two-year term, including a certificate from the owner of the real property and the Post-Secondary Educational Institution attaching a true and complete copy of the master lease or other contractual agreement (financial information may be redacted to the extent permitted by law) and certifying that the lease or contract has not otherwise been amended or terminated; and
(ii) Evidence, on an average annualized basis, of the percentage of students in good standing enrolled at least half-time or more in the Post-Secondary Educational Institution or Institutions who are occupying the beds or accessory living space in the Student Housing project; and
(iii) The owner of the real property records a Notice of Special Restrictions (NSR) against fee title to the real property on which the Student Housing is located that states the following:
a. The Post-Secondary Educational Institution, or the owner of the real property on its behalf, must file a statement with the Department if it intends to terminate the Student Housing project at least 60 days before it terminates such use (“statement of termination”);
b. The Student Housing project becomes subject to the Inclusionary Housing Ordinance requirements applicable to Housing Projects other than Qualified Housing Projects if (1) a Post-Secondary Educational Institution files a statement of termination with the Department and another Post-Secondary Educational Institution or Institutions have not been substituted or obligated to meet the requirements of this subsection (f)(5)3
; or (2) the owner of the real property or the Post-Secondary Educational Institution fails to file a statement of termination and fails to meet the requirements for a Student Housing project, then within not more than one year of a Notice Of Violation issued by the Planning Department;
c. If units in a Student Housing project become subject to the Inclusionary Housing Ordinance then the owner of those units shall (1) pay the Affordable Housing Fee plus interest from the date the project received its first construction document for the project if there is no evidence the project ever qualified as Student Housing or, if Student Housing was provided and occupied, then the Affordable Housing Fee with no interest is due on the date the units were no longer occupied by qualifying households and interest would accrue from that date if the fee is not paid; or (2) provide the required number of on-site affordable units required at time of original project approval and that those units shall be subject to all of the requirements of this Program. In this event, the owner of the real property shall record a new NSR providing that the designated units must comply with all of the requirements of this Program.
d. The Post-Secondary Educational Institution is required to report annually as required in subsection (f)(5)(D)3
above;
e. The City may commence legal action against the owner and/or Post- Secondary Educational Institution to enforce the NSR and the terms of Article 4 of the Planning Code and Planning Code Section 415 et seq. if it determines that the project no longer meets the requirements for a Student Housing project; and
f. The Student Housing project may be inspected by any duly authorized City employee to determine its status as a Student Housing project and its com-pliance with the requirements of this Code at any time upon at least 24 hours’ prior notice to the owner of the real property or to the master lessee.
(Added as Sec. 315.3 by Ord. 37-02, File No. 001262, App. 4/5/2002; amended by Ord. 76-03, File No. 020592, App. 5/2/2003; Ord. 213-06, File No. 051668, App. 8/2/2006; Ord. 219-06, File No. 051685, App. 8/10/2006; Ord. 101-07, File No. 060529, App. 5/4/2007; Ord. 198-07, File No. 070444, App. 8/10/2007; Ord. 298-08, File No. 081153, App. 12/19/2008; redesignated and amended by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 321-10, File No. 101095, App. 12/21/2010; Ord. 188-12
, File No. 111374, App. 9/11/2012, Eff. 10/11/2012; Ord. 219-12
, File No. 120464, App. 10/23/2012, Eff. 11/22/2012, Oper. 1/15/2013; Ord. 62-13
, File No. 121162, App. 4/10/2013, Eff. 5/10/2013; Ord. 22-15, File No. 141253, App. 2/20/2015, Eff. 3/22/2015; Ord. 188-15
, File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 76-16
, File No. 160255, App. 5/13/2016, Eff. 6/12/2016; Ord. 245-16, File No. 160510, App. 12/16/2016, Eff. 1/15/2017; Ord. 158-17, File No. 161351, App. 7/27/2017, Eff. 8/26/2017; Ord. 167-17, File No. 170093, App. 7/27/2017, Eff. 8/26/2017; Ord. 208-17, File No. 170834, App. 11/3/2017, Eff. 12/3/2017; Ord. 26-18, File No. 171193, App. 2/23/2018, Eff. 3/26/2018; Ord. 202-18, File No. 180557, App. 8/10/2018, Eff. 9/10/2018; Ord. 290-18, File No. 180911, App. 12/7/2018, Eff. 1/7/2019; Ord. 295-18, File No. 151258, App. 12/7/2018, Eff. 1/7/2019; Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021)
AMENDMENT HISTORY
[Former] division (c)(5) amended; Ord. 188-12
, Eff. 10/11/2012. Division (a) and [former] Table 415.3 amended; Ord. 219-12
, Oper. 1/15/2013. Division (a) and [former] Table 415.3 amended; former divisions (c)(4) through (c)(4)(A)(i) deleted; former divisions (c)(4)(A)(ii) and (c)(4)(B) through (c)(4)(D) redesignated as [now former] (c)(4) and (c)(4)(A) through (c)(4)(C); [former] division (e) added; Ord. 62-13
, Eff. 5/10/2013. Divisions (a)(3) and [former] (c)(5)(C) amended; Ord. 22-15, Eff. 3/22/2015. Division (a) amended; Ord. 188-15
, Eff. 12/4/2015. Division (b) amended in its entirety and former Table 415.3 deleted; new divisions (c) and (d) added; former division (c) redesignated as (f)1
; current divisions (f)(3) and (f)(4) amended; former divisions (d) and (e) deleted; Ord. 76-16
, Eff. 6/12/2016. Division (f)(5)(B)(iv) amended; division (f)(5)(C) amended in full; unlettered paragraphs designated as (f)(5)(C)(iii)a. through f.; Ord. 245-16, Eff. 1/15/2017.2 Divisions (b), (b)(1)(E), (b)(1)(F), (b)(2)(E), and (b)(2)(F) amended; new division (d) added; former division (d) redesignated as (e); divisions (f)(5)(C) and (f)(5)(C)(iii)d. amended; Ord. 158-17
, Eff. 8/26/2017. Divisions (f)3 and (f)(5)(B)(ii) amended; former divisions (f)(5)(C)-(f)(5)(C)(iii)f. redesignated3
as (f)(5)(C) and (f)(5)(D)- (f)(5)(D)(iii)f. and amended; new divisions (f)(5)(C)(i) and (ii) added3
; Ord. 167-17
, Eff. 8/26/2017. Divisions (b)(1), (b)(2), (b)(2)(F), and (d) amended; Ord. 208-17
, Eff. 12/3/2017. Divisions (b)(2), (b)(2)(F), and (b)(2)(G) amended; Ord. 26-18
, Eff. 3/26/2018. Division (f)(5)(D)(iii)f. amended; Ord. 202-18
, Eff. 9/10/2018. Division (b)(4) redesignated as (b)(4) and (b)(4)(A) and amended; division (b)(4)(B) added; Ord. 290-18
, Eff. 1/7/2019. Division (b)(3) amended; Ord. 295-18
, Eff. 1/7/2019. Division (b)(3) amended; Ord. 295-18, Eff. 1/7/2019. Division (b) amended; division (b)(3) amended and redesignated as divisions (b)(3), (b)(3)(A), and (b)(3)(C); division (b)(3)(B) added; Ord. 296-18
, Eff. 1/12/2019. Divisions (b)(2)(F), (d), and (f)(5)(C) amended; Ord. 210-21
, Eff. 12/20/2021.
CODIFICATION NOTES
2. Ord. 245-16, in amending portions of division (f), erroneously refers to it as division (c). The amendments have been made to division (f) as intended.
New Ordinance Notice
Publisher's Note: This section has been AMENDED by new legislation (Ord. 187-23
, approved 9/14/2023, effective 10/15/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.
New Ordinance Notice
Publisher's Note: This section has been AMENDED by new legislation (Ord. 201-23
, approved 10/12/2023, effective 11/12/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.
(a) Timing of Fee Payments. The fee shall be paid to DBI for deposit into the Citywide Affordable Housing Fund at the time required by Section 402(d).
(b) Amount of Fee. The amount of the fee that may be paid by the project sponsor subject to this Program shall be determined by MOHCD utilizing the following factors:
(1) The number of units equivalent to the applicable off-site percentage of the number of units in the Principal Project.
(A) For housing development projects consisting of 10 units or more, but less than 25 units, the applicable percentage shall be 20%.
(B) For development projects consisting of 25 units or more, the applicable percentage shall be 33% if such units are Owned Units.
(C) For development projects consisting of 25 units or more, the applicable percentage shall be 30% if the development project is a Rental Housing Project. In the event a Rental Housing Project becomes an Ownership Housing Project, the Project Sponsor shall either (A) reimburse the City the proportional amount of the Inclusionary Affordable Housing Fee, which would be equivalent to the current Inclusionary Affordable Housing Fee requirement for Ownership Housing Projects, or (B) provide additional on-site or off-site Affordable Units equivalent to the current inclusionary requirements for Ownership Housing Units, apportioned among the required number of units at various income levels in compliance with the requirements in effect at the time of conversion. Any additional Affordable Units provided on-site or off-site shall comply with Section 415 and the Procedures Manual.
(2) The affordability gap, using data on MOHCD’s cost of construction of affordable residential housing. No later than January 31, 2018, the Controller, with the support of consultants as necessary, and in consultation with the Inclusionary Housing Technical Advisory Committee (TAC) established in Planning Code Section 415.10, shall conduct a study to develop an appropriate methodology for calculating, indexing, and applying the appropriate amount of the Inclusionary Affordable Housing Fee. To support the Controller’s study, and annually thereafter, MOHCD shall provide the following documentation: (1) schedules of sources and uses of funds and independent auditor’s reports (“Cost Certifications”) for all MOHCD-funded developments completed within three years of the date of reporting to the Controller; and, (2) for any MOHCD-funded development that commenced construction within three years of the reporting date to the Controller but for which no Cost Certification is yet complete, the sources and uses of funds approved by MOHCD and the construction lender as of the date of the development’s construction loan closing. Cost Certifications completed in years prior to the year of reporting to the Controller may be increased or decreased by the applicable annual Construction Cost Index percentage(s) for residential construction for San Francisco reported in the Engineering News Record. MOHCD, together with the Controller and TAC, shall evaluate the cost-to-construct data, including actual and appraised land costs, state and/or federal public subsidies available to MOHCD-funded projects, and determine MOHCD’s average costs. Following completion of this study, the Board of Supervisors, in its sole and absolute discretion, and within the legal allowances of the Residential Nexus Analysis, will review the analyses, methodology, fee application, and the proposed fee schedule; and may consider adopting legislation to revise the Inclusionary Affordable Housing fees. The method of calculating, indexing, and applying the fee shall be published in the Procedures Manual. The Department and MOHCD shall update the fee methodology and technical report every three years, with analysis from the Technical Advisory Committee, in order to ensure that the affordability gap remains current, consistent with the requirements set forth below in Section 415.5(b)(3) and Section 415.10.
(3) Annual Fee Update. For all housing developments, no later than January 1 of each year, MOHCD shall adjust the fee based on the cost of constructing affordable housing, including development and land acquisition costs. MOHCD shall provide the Planning Department, DBI, and the Controller with current information on the adjustment to the fee so that it can be included in the Planning Department’s and DBI’s website notice of the fee adjustments and the Controller’s Citywide Development Fee and Development Impact Requirements Report described in Section 409(a). The method of indexing shall be published in the Procedures Manual.
(4) Specific Geographic Areas. For any housing development that is located in an area with a specific affordable housing requirement set forth in a Special Use District, or in any other section of the Code such as Section 419, the higher affordable housing requirement shall apply.
(5) The applicable amount of the inclusionary housing fee shall be determined based upon the date that the project sponsor has submitted a complete Environmental Evaluation application. In the event the project sponsor does not procure a building permit or site permit for construction of the principal project within 30 months of the project’s approval, the development project shall comply with the inclusionary affordable housing requirements applicable thereafter at the time when the project sponsor does proceed with pursuing a building permit. Such time period shall be extended in the event of any litigation seeking to invalidate the City’s approval of such project, for the duration of the litigation.
(6) The fee shall be imposed on any additional units or square footage authorized and developed under California Government Code Sections 65915 et seq.
(7) If the principal project has resulted in demolition, conversion, or removal of affordable housing units that are subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate-, low- or very low-income, or housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power and determined to be affordable housing, the Commission or the Department shall require that the project sponsor pay the Inclusionary Affordable Housing Fee equivalent for the number of affordable units removed, in addition to compliance with the inclusionary requirements set forth in this Section.
(c) Notice to Development Fee Collection Unit of Amount Owed. Prior to issuance of the first construction document for a development project subject to Section 415.5, the Planning Department shall notify the Development Fee Collection Unit at DBI electronically or in writing of its calculation of the amount of the fee owed.
(d) Lien Proceedings. If, for any reason, the Affordable Housing Fee imposed pursuant to Section 415.5 remains unpaid following issuance of the first Certificate of Occupancy, the Development Fee Collection Unit at DBI shall institute lien proceedings to make the entire unpaid balance of the fee, plus interest and any deferral surcharge, a lien against all parcels used for the development project in accordance with Section 408 of this Article and Section 107A.13.15 of the San Francisco Building Code.
(f) Use of Fees. All monies contributed pursuant to the Inclusionary Affordable Housing Program shall be deposited in the Citywide Affordable Housing Fund (“Fund”), established in Administrative Code Section 10.100-49, except as specified below. MOHCD shall use the funds collected under this Section 415.5 in the following manner:
(1) Except as provided in subsection (2) below, the funds collected under this Section shall be used to:
(A) increase the supply of housing Affordable to Qualifying Households subject to the conditions of this Section; and
(B) provide assistance to low- and moderate-income homebuyers; and
(C) pay the expenses of MOHCD in connection with monitoring and administering compliance with the requirements of the Program. MOHCD is authorized to use funds in an amount not to exceed $200,000 every 5 years to conduct follow-up studies under Section 415.9(e) and to update the affordable housing fee amounts as described above in Section 415.5(b). All other monitoring and administrative expenses shall be appropriated through the annual budget process or supplemental appropriation for MOHCD.
(D) Funds from this fee collected from projects within the Central SoMa Special Use District shall be accounted for separately and expended only within the area bounded by Market Street, the Embarcadero, King Street, Division Street, and South Van Ness Avenue.
(2) "Small Sites Funds."
(A) Designation of Funds. MOHCD shall designate and separately account for 10% of all fees that it receives under Section 415.1 et seq. that are deposited into the Fund, excluding fees that are geographically targeted such as those referred to in Sections 249.78(e)(1), 415.5(b)(1), and 827(b)(1), to support acquisition and rehabilitation of Small Sites (“Small Sites Funds”). When the total amount of fees paid to the City under Section 415.1 et seq. totals is1
less than $10 million over the preceding 12-month period, MOHCD is authorized to temporarily divert funds from the Small Sites Funds for other purposes. MOHCD shall keep track of the diverted funds, however, such that when the amount of fees paid to the City under Section 415.1 et seq. meets or exceeds $10 million over the preceding 12-month period, MOHCD shall commit all of the previously diverted funds and 10% of any new funds to the Small Sites Funds.
(B) Use of Small Sites Funds. The funds shall be used exclusively to acquire or rehabilitate “Small Sites” defined as properties consisting of 2-25 units. Units supported by monies from the fund shall be designated as housing affordable to qualified households for the life of the project. Properties supported by the Small Sites Funds must be:
(i) rental properties that will be maintained as rental properties;
(ii) vacant properties that were formerly rental properties as long as those properties have been vacant for a minimum of two years prior to the effective date of this legislation;
(iii) properties that have been the subject of foreclosure; or
(iv) a Limited Equity Housing Cooperative as defined in Subdivision Code Sections 1399.1
et seq. or a property owned or leased by a non-profit entity modeled as a Community Land Trust.
(C) Initial Funds. If, within 18 months from April 23, 2009, MOHCD dedicates an initial one-time contribution of other eligible funds to be used initially as Small Sites Funds, MOHCD may use the equivalent amount of Small Sites Funds received from fees for other purposes permitted by the Citywide Affordable Housing Fund until the amount of the initial one-time contribution is reached.
(D) Annual Report. At the end of each fiscal year, MOHCD shall issue a report to the Board of Supervisors regarding the amount of Small Sites Funds received from fees under this legislation, and a report of how those funds were used.
(E) Intent. In establishing guidelines for Small Sites Funds, the Board of Supervisors does not intend to preclude MOHCD from expending other eligible sources of funding on Small Sites as described in this Section 415.5.
(3) For all projects funded by the Citywide Affordable Housing Fund, MOHCD requires the project sponsor or its successor in interest to give preference as provided in Administrative Code Chapter 47.
(4) Pursuant to Section 249.78(e)(1), all monies contributed pursuant to the Inclusionary Affordable Housing Program and collected within the Central SoMa Special Use District shall be paid into the Citywide Affordable Housing Fund, but the funds shall be separately accounted for. Such funds shall be expended within the area bounded by Market Street, the Embarcadero, King Street, Division Street, and South Van Ness Avenue.
(g) Alternatives to Payment of Affordable Housing Fee.
(1) Eligibility: A project sponsor must pay the Affordable Housing Fee unless it chooses to meet the requirements of the Program though an Alternative provided in this subsection (g). The project sponsor may choose one of the following Alternatives:
(A) Alternative #1: On-Site Units. Project sponsors may elect to construct units Affordable to Qualifying Households on-site of the Principal Project pursuant to the requirements of Section 415.6.
(B) Alternative #2: Off-Site Units. Project sponsors may elect to construct units Affordable to Qualifying Households at an alternative site within the City and County of San Francisco pursuant to the requirements of Section 415.7.
(C) Alternative #3: Small Sites. Qualifying project sponsors may elect to fund buildings as set forth in Section 415.7-1.
(D) Alternative #4: Combination. Project sponsors may elect any combination of payment of the Affordable Housing Fee as provided in Section 415.5, construction of on-site units as provided in Section 415.6, or construction of off-site units as provided in Section 415.7, provided that the project applicant constructs or pays the fee at the appropriate percentage or fee level required for that option. Development Projects that are providing on-site units under Section 415.6 and that qualify for and receive additional density under California Government Code Sections 65915 et seq. shall use Alternative #4 to pay the Affordable Housing Fee on any additional units or square footage authorized under Section 65915.
(2) A project sponsor who elects to satisfy Section 415.1 et seq 2
through one of the alternatives described in Section 415.5(g)(1), must provide written notice of their election 30 days prior to project approval by the Planning Commission or Department, as applicable. The Planning Commission or the Department may not require a project sponsor to select a specific Alternative. The Alternative will be a condition of project approval and recorded against the property in a Notice of Special Restrictions.
(3) Modification of Elected Alternative. Except as specified below, after project approval, any proposed change in the alternative elected by a project sponsor under Section 415.5(g)(1), or any proposed change from an Ownership Project to a Rental Project, or from a Rental Project to an Ownership Project, shall require public notice for a hearing and approval from the Planning Commission to amend the conditions of approval. Public notice shall be as required by the original entitlement.
(4) Notwithstanding subsection (g)(3), if such modification is requested prior to issuance of a first construction document, the Zoning Administrator or the Zoning Administrator’s designee may modify conditions of approval to allow a project that had elected to pay the Affordable Housing Fee to change from an Ownership Project to a Rental Project or a Rental Project to an Ownership Project, or to allow a project that had elected to pay the Affordable Housing Fee to provide on-site units under Section 415.6.
(5) If a project sponsor requests a modification to its conditions of approval for the sole purpose of complying with this Section 415.5(g)(3), the Planning Commission shall be limited to considering issues related to Section 415 et seq. in considering the request for modification. The Planning Commission shall approve such modification if it finds all of the following:
(A) The project sponsor complied with the applicable requirements for modification set forth in the Procedures Manual including protections for current occupants, if any, of Rental Units or Owned Units;
(B) The modification will not result in a delay in marketing any On-Site Units at the same time as the market-rate housing in the project;
(C) If a Rental Housing Project was granted a density bonus pursuant to Section 206, the change from a Rental Housing Project to an Ownership Housing Project provides On-Site Units in an amount such that the Ownership Housing Project qualifies for the same density bonus, waivers, and/or incentives and concessions that were granted to the Rental Housing Project;
(D) If a Rental Housing Project is converting to an Ownership Housing Project, the amount of Affordable Housing Fee or number of On-Site Units complies with Section 415.6(a)(7);
(E) For projects that chose to provide On-site or Off-site units and seek a modification of the conditions of approval to pay the Affordable Housing Fee prior to the issuance of the first construction permit, the project sponsor shall pay the Affordable Housing Fee equivalent to the loss of On-site or Off-site Affordable Housing units that were approved in the original conditions of approval; and
(F) For projects that chose to provide On-site or Off-site units and seek a modification of the conditions of approval to pay the Affordable Housing Fee after the issuance of the first construction document, the project sponsor or its successor shall pay the Affordable Housing Fee equivalent to the loss of On-site or Off-site Affordable Housing units that were approved in the original conditions of approval, plus interest and any applicable penalties provided for under this Code.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 55-11, File No. 101523, App. 3/23/2011; Ord. 56-13
, File No. 130062, App. 3/28/2013, Eff. 4/27/2013; Ord. 62-13
, File No. 121162, App. 4/10/2013, Eff. 5/10/2013; Ord. 263-13, File No. 130549, App. 11/27/2013, Eff. 12/27/2013; Ord. 277-13, File No. 130968, App. 12/18/2013, Eff. 1/17/2014; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 143-15
, File No. 150568, App. 8/6/2015, Eff. 9/5/2015; Ord. 204-15
, File No. 150622, App. 12/3/2015, Eff. 1/2/2016; Ord. 76-16
, File No. 160255, App. 5/13/2016, Eff. 6/12/2016; Ord. 7-17, File No. 161157, App. 1/20/2017, Eff. 2/19/2017; Ord. 158-17, File No. 161351, App. 7/27/2017, Eff. 8/26/2017; Ord. 26-18, File No. 171193, App. 2/23/2018, Eff. 3/26/2018; Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019; Ord. 70-19, File No. 181154, App. 4/19/2019, Eff. 5/20/2019; Ord. 251-19, File No. 190548, App. 11/15/2019, Eff. 12/16/2019; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020; Ord. 47-21, File No. 201175, App. 4/16/2021, Eff. 5/17/2021; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021)
AMENDMENT HISTORY
Division (b)(1) amended; Ord. 56-13
, Eff. 4/27/2013. Divisions (b)(1), (b)(2), (b)(3), (e), (g)(2)(i), and (g)(2)(ii) amended; former division (g)(2)(iii) deleted; division (g)(3) amended; Ord. 62-13
, Eff. 5/10/2013. Division (b)(3) amended; Ord. 263-13, Eff. 12/27/2013. Division (f) amended and references to "MOHCD" corrected throughout; former divisions (f)(1)(a)-(c) redesignated as (f)(1)(A)-(C); division (f)(3) added; Ord. 277-13, Eff. 1/17/2014. Division (a) amended; Ord. 50-15
, Eff. 5/24/2015. Divisions (f), (f)(1), and (f)(2)(A) amended; Ord. 143-15
, Eff. 9/5/2015. Divisions (f)(2)(C) and (f)(3) amended; Ord. 204-15
, Eff. 1/2/2016. Undesignated introductory paragraph and divisions (a) and (b)(1)-(3) amended; new division (b)(4) added; divisions (f)(2)(B) and (f)(2)(E) amended; Ord. 76-16
, Eff. 6/12/2016. Divisions (f), (f)(2)(A), (f)(2)(E), and (g)(1) amended; new division (g)(1)(C) added; former division (g)(1)(C) redesignated as (g)(1)(D); Ord. 7-17, Eff. 2/19/2017. Divisions (b)-(b)(4) amended; divisions (b)(1)(A)-(C) designated; divisions (b)(5)- (7) added; divisions (c), (e), (f)(1)(B), (f)(2)(A), (f)(2)(B), (g)(1)(D), (g)(2), (g)(2)(ii), (g)(3), and (g)(4) amended; Ord. 158-17, Eff. 8/26/2017. Division (g)(1) amended; former division (g)(2) deleted; former divisions (g)(3)-(4) redesignated as (g)(2)- (3) and amended; Ord. 26-18, Eff. 3/26/2018. Divisions (f) and (f)(2)(A) amended; division (f)(4) added; Ord. 296-18, Eff. 1/12/2019. Divisions (b)(6) and (g)(1)(D) amended; Ord. 70-19, Eff. 5/20/2019. Divisions (f), (f)(2)(A), and (f)(2)(E) amended; Ord. 251-19, Eff. 12/16/2019. Division (a) amended; Ord. 63-20, Eff. 5/25/2020. Division (f)(1)(D) added; Ord. 47-21, Eff. 5/17/2021. Divisions (b)(1)-(b)(1)(C), (f)(1)(A), (g)(1)(A)-(B), (g)(2) amended; former division (g)(3) deleted; divisions (g)(3)- (g)(5)(F) added; Ord. 210-21, Eff. 12/20/2021.
CODIFICATION NOTES
New Ordinance Notice
Publisher's Note: This section has been AMENDED by new legislation (Ord. 187-23
, approved 9/14/2023, effective 10/15/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.
New Ordinance Notice
Publisher's Note: This section has been AMENDED by new legislation (Ord. 201-23
, approved 10/12/2023, effective 11/12/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.
If a project sponsor elects to provide on-site units pursuant to Section 415.5(g), the development project shall meet the following requirements:
(a) Number of Units. The number of units constructed on-site shall be as follows:
(1) For housing development projects consisting of 10 dwelling units or more, but less than 25 dwelling units, the number of affordable units constructed on-site shall generally be 12% of all units constructed on the project site. The affordable units shall all be affordable to low-income households. Owned Units shall be affordable to households earning up to 100% of Area Median Income, with an affordable sales price set at 80% of Area Median Income or less. Rental Units shall be affordable to households earning up to 65% of Area Median Income, with an affordable rent set at 55% of Area Median Income or less.
(2) For any Ownership Housing Project consisting of 25 or more units, the number of Affordable Units constructed on-site shall generally be 20% of all units constructed on the project site. A minimum of 10% of the units shall be affordable to low-income households, 5% of the units shall be affordable to moderate-income households, and 5% of the units shall be affordable to middle-income households. In no case shall the total number of Affordable Units required exceed the number required as determined by the application of the applicable on-site requirement rate to the total project units. Owned Units for low-income households shall have an affordable purchase price set at 80% of Area Median Income or less, with households earning up to 100% of Area Median Income eligible to apply for low-income units. Owned Units for moderate-income households shall have an affordable purchase price set at 105% of Area Median Income or less, with households earning from 95% to 120% of Area Median Income eligible to apply for moderate-income units. Owned Units for middle-income households shall have an affordable purchase price set at 130% of Area Median Income or less, with households earning from 120% to 150% of Area Median Income eligible to apply for middle-income units. For any Affordable Units with purchase prices set at 130% of Area Median Income, the units shall have a minimum occupancy of two persons. This unit requirement shall be outlined within the Mayor’s Office of Housing Preferences and Lottery Procedures Manual no later than February 26, 2018. MOHCD may reduce Area Median Income pricing and the minimum income required for eligibility in each ownership category.
(3) For any Rental Housing Project consisting of 25 or more units, the number of Affordable Units constructed on-site shall generally be 18% of all units constructed on the project site, with a minimum of 10% of the units affordable to low-income households, 4% of the units affordable to moderate-income households, and 4% of the units affordable to middle-income households. In no case shall the total number of Affordable Units required exceed the number required as determined by the application of the applicable on-site requirement rate to the total project units. Rental Units for low-income households shall have an affordable rent set at 55% of Area Median Income or less, with households earning up to 65% of Area Median Income eligible to apply for low-income units. Rental Units for moderate-income households shall have an affordable rent set at 80% of Area Median Income or less, with households earning from 65% to 90% of Area Median Income eligible to apply for moderate-income units. Rental Units for middle-income households shall have an affordable rent set at 110% of Area Median Income or less, with households earning from 90% to 130% of Area Median Income eligible to apply for middle-income units. For any Affordable Units with rental rates set at 110% of Area Median Income, the units shall have a minimum occupancy of two persons. This unit requirement shall be outlined within the Mayor’s Office of Housing Preferences and Lottery Procedures Manual no later than February 26, 2018. MOHCD may reduce Area Median Income pricing and the minimum income required for eligibility in each rental category.
(4) Notwithstanding the foregoing Area Median Income limits for Rental Units and Owned Units, the maximum affordable rents or sales price shall be no higher than 20% below market rents or sales prices for the neighborhood within which the project is located, which shall be defined in accordance with the American Community Survey Neighborhood Profile Boundaries Map. MOHCD shall adjust the allowable rents and sales prices, and the eligible households for such units, accordingly, and such potential readjustment shall be a condition of approval upon project entitlement. The City shall review the updated data on neighborhood rents and sales prices on an annual basis.
(5) Starting on January 1, 2018, and no later than January 1 of each year thereafter, MOHCD shall increase the percentage of units required on-site for projects consisting of 10 - 24 units, as set forth in Section 415.6(a)(1), by increments of 0.5% each year, until such requirement is 15%. For all development projects with 25 or more units, the required on-site affordable ownership housing to satisfy this Section 415.6 shall increase by 1% annually for two consecutive years starting January 1, 2018. The increase shall be apportioned to units affordable to low-income households, as defined above in subsection 415.6(a)(3). Starting January 1, 2020, the increase to on-site housing developments with 25 or more units shall increase by 0.5% annually, with such increases allocated equally to moderate and middle income households, as defined above in subsection 415.6(a)(3). The total on-site inclusionary affordable housing requirement shall not exceed 26% for Ownership Housing Projects or 24% for Rental Housing Projects, and the increases shall cease at such time as these limits are reached. MOHCD shall provide the Planning Department, DBI, and the Controller with information on the adjustment to the on-site percentage so that it can be included in the Planning Department’s and DBI’s website notice of the fee adjustments and the Controller’s Citywide Development Fee and Development Impact Requirements Report described in Section 409(a).
(6) The Department shall require as a condition of Department approval of a project’s building permit, or as a condition of approval of a Conditional Use Authorization or Planned Unit Development or as a condition of Department approval of a live/work project, that 12%, 18%, or 20%, as applicable, or such percentage that has been adjusted annually by MOHCD, of all units constructed on the project site shall be Affordable to Qualifying Households so that a project sponsor must construct .12, .18, or .20 times, or such current number as adjusted annually by MOHCD, as applicable, the total number of units produced in the Principal Project. If the total number of units is not a whole number, the project sponsor shall round up to the nearest whole number for any portion of .5 or above. In no case shall the total number of Affordable Units required exceed the number required as determined by the application of the applicable on-site requirement rate to the total project units.
(7) A project seeking to convert from a Rental Housing Project to an Ownership Housing Project, or from an Ownership Housing Project to a Rental Housing Project, shall require public notice for a hearing and approval from the Planning Commission to amend the conditions of approval for the Principal Project.
(8) In the event that a Rental Housing Project converts to an Ownership Housing Project, the project sponsor shall either (A) reimburse the City the proportional amount of the inclusionary affordable housing fee, which would be equivalent to the then-current inclusionary affordable fee requirement for Ownership Housing Projects, or (B) provide additional on-site or off-site Affordable Units equivalent to the then-current inclusionary requirements for Ownership Housing Projects, apportioned among the required number of units at various income levels in compliance with the requirements in effect at the time of conversion.
(9) Notwithstanding subsection 415.6(a)(10) below, Affordable Units in Rental Housing Projects shall be Rental Units, and Affordable Units in Ownership Housing Projects shall be Owned Units. In the event an Ownership Housing Project converts to a Rental Housing Project, or more than 50% of the total units in the Principal Project operate as a Rental Housing Project, on-site Affordable Units shall be offered as Rental Units. Affordable Units may only be sold as Owned Units if more than 50% of the units in the building shall be sold to unaffiliated third-party homebuyers and are operated as an Ownership Housing Project.
(10) A development project consisting of multiple buildings may include both a Rental Housing Project and an Ownership Housing Project with written notice to the Department and MOHCD, at least 30 days prior to approval of the project by the Planning Commission or the Planning Department.
(11) Specific Geographic Areas. For any housing development that is located in an area with a specific affordable housing requirement set forth in a Special Use District or in any other section of the Code such as Section 419, the higher housing requirement shall apply. The Planning Department, in consultation with the Controller, shall undertake a study of areas greater than five acres in size, where an Area Plan, Special Use District, or other re-zoning is being considered for adoption or has been adopted after January 1, 2015, to determine whether a higher on-site inclusionary affordable housing requirement is feasible on sites that have received a 20% or greater increase in developable residential gross floor area or a 35% or greater increase in residential density over prior zoning, and shall submit such information to the Planning Commission and Board of Supervisors.
(12) If the Principal Project has resulted in demolition, conversion, or removal of affordable housing units that are subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate-, low- or very-low-income, or housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power and determined to be affordable housing, the Commission or the Department shall require that the project sponsor replace the number of Affordable Units removed with units of a comparable number of bedrooms and sales prices or rents, in addition to compliance with the requirements set forth in this Section.
(13) The applicable amount of the percentage required for the on-site housing units shall be determined based upon the date that the project sponsor has submitted a complete Environmental Evaluation application. Any development project that constructs on-site affordable housing units as set forth in this Section 415.6 shall diligently pursue completion of such units. In the event the project sponsor does not procure a building permit or site permit for construction of the Principal Project within 30 months of the project’s approval, the development project shall comply with the inclusionary affordable housing requirements applicable thereafter at the time when the project sponsor procures a building permit. Such deadline shall be extended in the event of any litigation seeking to invalidate the City’s approval of such project, for the duration of the litigation.
(b) Any On-site units provided through this Section 415.6 may be used to qualify for a density bonus under California Government Code Section 65915, any ordinance implementing Government Code Section 65915, or one of the Affordable Housing Bonus Programs contained in Planning Code Section 206 et seq. An applicant seeking a density bonus under State Law shall provide reasonable documentation to establish eligibility for a requested density bonus, incentive or concession, and waiver or reduction of development standards, as provided for under State Law and as consistent with the process and procedures detailed in a locally adopted ordinance implementing the State Law.
(c) Beginning in January 2018, the Planning Department shall prepare an annual report to the Planning Commission about the number of density bonus projects under California Government Code Section 65915, the number of density bonus units, and the types of concessions and incentives and waivers provided to each density bonus project.
(d) In the event the project sponsor is eligible for and elects to receive additional density under California Government Code Section 65915, the Sponsor shall pay the Affordable Housing Fee on any additional units or square footage authorized under that section in accordance with the provisions in Section 415.5(g)(1)(D).
(e) Timing of Construction. On-site affordable housing required by this Section 415.6 shall be constructed, completed, ready for occupancy, and marketed no later than the market rate units in the Principal Project. A project shall not receive its first certificate of occupancy until MOHCD has approved the marketing plan.
(f) Type of Housing.
(1) Equivalency of Units. In general, Affordable Units constructed under this Section 415.6 shall be comparable in number of bedrooms, exterior appearance, and overall quality of construction to market rate units in the Principal Project. A Notice of Special Restrictions shall be recorded prior to issuance of the architectural addendum to the Site Permit for the project or building permit for the project, whichever is earlier and shall specify the number, location, and sizes for all Affordable Units required under this subsection (f). The Affordable Units shall be evenly distributed throughout the building. For buildings over 120 feet in height, as measured under the requirements set forth in the Planning Code, the Affordable Units may be distributed throughout the lower 2/3 of the building, as measured by the number of residential floors. The interior features in Affordable Units should be generally the same as those of the market rate units in the Principal Project, but need not be the same make, model or type of such item as long as they are of good and new quality and are consistent with then-current standards for new housing. Where applicable, parking shall be offered to the Affordable Units subject to the terms and conditions of the Department’s policy on unbundled parking for affordable housing units as specified in the Procedures Manual and amended from time to time.
(2) Minimum Size of Affordable Units. The Affordable Units are not required to be the same size as the market rate units. For buildings over 120 feet in height, as measured under the requirements set forth in the Planning Code, the average size of the unit type may be calculated for the lower 2/3 of the building, as measured by the number of residential floors. All units shall be no smaller than the minimum unit sizes set forth by the California Tax Credit Allocation Committee as of May 16, 2017 as indicated in the table below, and no smaller than 300 square feet for studios.
Unit Type
|
Minimum Unit Size (in gross square feet)
|
One-bedroom | 450 |
Two-bedroom | 700 |
Three-bedroom | 900 |
Four-bedroom | 1,000 |
The total residential floor area devoted to the affordable units shall not be less than the applicable percentage applied to the total residential floor area of the Principal Project, provided that a 10% variation in floor area is permitted.
(g) Marketing the Units. MOHCD shall be responsible for overseeing and monitoring the marketing of Affordable Units by the Project Sponsor under this Section 415.6. In general, the marketing requirements and procedures shall be contained in the Procedures Manual as amended from time to time and shall apply to the Affordable Units in the project. MOHCD may develop occupancy standards for units of different bedroom sizes in the Procedures Manual in order to promote an efficient allocation of Affordable Units. MOHCD may require in the Procedures Manual that prospective purchasers complete homebuyer education training or fulfill other requirements. MOHCD shall develop a list of minimum qualifications for marketing firms that market Affordable Units under Section 415.6 et seq., referred to in the Procedures Manual as Below Market Rate (BMR units). Developers marketing Affordable Units under Section 415.6 shall market the Affordable Units through a marketing firm meeting all of the minimum qualifications. The Notice of Special Restrictions or conditions of approval shall specify that the marketing requirements and procedures contained in the Procedures Manual as amended from time to time, shall apply to the Affordable Units in the project.
(1) Notice of Special Restrictions. The Notice of Special Restrictions (“NSR”) required pursuant to this Section 415.6 shall be completed and recorded by the project sponsor no later than the issuance of the architectural addendum for the site permit and at least 12 months prior to the first certificate of occupancy.
(2) Pricing Determination. The project sponsor shall submit a request for a pricing determination from MOHCD at least 8 months prior to issuance of a first certificate of occupancy.
(3) Timeline for Construction. After the project has been approved by the Planning Commission or Department, the project sponsor must submit an update to the Department and MOHCD which includes an estimated timeline for the construction of the project. The estimated construction timeline must assume the requirements of subsections (g)(1) and (g)(2) above. Failure to finalize the NSR or initiate marketing within the time frames set forth in this Section 415.6(g), or to submit an estimated construction timeline will be deemed a violation of the Planning Code subject to enforcement and penalties.
(4) Lottery. At the initial offering of Affordable Units in a housing project and when Affordable Units become available for re-sale or re-rent in any housing project subject to this Program after the initial offering, MOHCD must require the use of a public lottery approved by MOHCD to select purchasers or tenants.
(5) Preferences. MOHCD shall create a lottery system that gives preference according to the provisions of Administrative Code Chapter 47. MOHCD shall propose policies and procedures for implementing these preferences to the Planning Commission for inclusion as an addendum to the Procedures Manual. Otherwise, it is the policy of the City to treat all households equally in allocating affordable units under this Program.
(h) Use of Subsidies.
(1) Generally Prohibited. Individual affordable units constructed under Section 415.6 as part of an on-site project shall not have received development subsidies from any Federal, State, or local program established for the purpose of providing affordable housing,.2
Units that have received such development subsidies shall not be counted to satisfy any affordable housing requirement.
(2) Exceptions:
(A) Notwithstanding subsection (h)(1), subsidies may be used to deepen the affordability of an affordable unit beyond the level of affordability required by this Program with the express written permission of MOHCD.
(B) CDLAC and TCAC2
Notwithstanding the provisions of subection2
415.6(h)(1) and (h)(2)(A) above, a project may use California Debt Limit Allocation Committee (CDLAC) tax-exempt bond financing, 4% tax credits under the Tax Credit Allocation Committee (TCAC), and tax credits allocated under the TCAC guidelines to help fund its obligations under Section 415.1 et seq. as long as the project provides at least one of the following: (i) 20% of the units as affordable to households at 50% of Area Median Income for on-site housing; (ii) 10% of the units as affordable to households at 50% of Area Median Income and 30% of the units as affordable to households at 60% of Area Median Income for on-site housing; or (iii) the same number of on-site affordable units as required by the applicable on-site affordable housing requirement in this Section 415 et seq. or any temporary reduction as set forth in Sections 415A et seq. or 415B et seq., plus an additional number of on-site affordable units equal to 25% of the applicable on-site affordable units as affordable to households at or below 80% of Area Median Income..2
The income table to be used for such projects when the units are priced at 50%, 60%, or 80% of Area Median Income is the income table used by MOHCD for the Inclusionary Affordable Housing Program, not that used by TCAC or CDLAC. Except as provided in this subsection (h)(2)(B), all units provided under this Section must meet all of the requirements of Section 415.1 et seq. and the Procedures Manual for on-site housing.
(3) Reporting. MOHCD shall monitor state and federal funding for 100% affordable housing projects, awards made by TCAC and CDLAC to 100% affordable housing projects in San Francisco, and any changes to the regulations of TCAC and CDLAC. MOHCD shall provide to the Inclusionary Housing Technical Advisory Committee, established in Administrative Code Chapter 5 Article XXIX, a written report of projects approved under Section 415.6(h)(2)(B), 100% affordable housing projects applying for tax exempt bond financing under CDLAC and tax credits under TCAC, and challenges for 100% affordable housing projects to obtain an award from CDLAC and TCAC.
(j)2
Benefits. If the project sponsor elects to satisfy the affordable housing requirements through the production of on-site affordable housing in this Section 415.6, the project sponsor shall be eligible to receive a refund for only that portion of the housing project which is affordable for the following fees: a Conditional Use authorization or other fee required by Section 352 of this Code, if applicable; an environmental review fee required by Administrative Code Section 31.22, if applicable; a building permit fee required by Section 355 of this Code for the portion of the housing project that is affordable. The project sponsor shall pay the building fee for the portion of the project that is market-rate. An application for a refund must be made within six months from the issuance of the first certificate of occupancy.
The Controller shall refund fees from any appropriated funds to the project sponsor on application by the project sponsor. The application must include a copy of the Certificate of Occupancy for all units affordable to a qualifying household required by the Inclusionary Housing Program. It is the policy of the Board of Supervisors to appropriate money for this purpose from the General Fund.
(Added as Sec. 315.6 by Ord. 37-02, File No. 001262, App. 4/5/2002; amended by Ord. 76-03, File No. 020592, App. 5/2/2003; Ord. 213-06, File No. 051668, App. 8/2/2006; Ord. 219-06, File No. 051685, App. 8/10/2006; Ord. 101-07, File No. 060529, App. 5/4/2007; Ord. 198-07, File No. 070444, App. 8/10/2007; Ord. 232-08, File No. 080521, App. 10/30/2008; Ord. 63-09, File No. 081249, App. 4/23/2009; redesignated and amended by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 62-13
, File No. 121162, App. 4/10/2013, Eff. 5/10/2013; Ord. 277-13, File No. 130968, App. 12/18/2013, Eff. 1/17/2014; Ord. 164-15
, File No. 150348, App. 9/23/2015, Eff. 10/23/2015, Retro. 5/20/2015; Ord. 188-15
, File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 204-15
, File No. 150622, App. 12/3/2015, Eff. 1/2/2016; Ord. 76-16
, File No. 160255, App. 5/13/2016, Eff. 6/12/2016; Ord. 158-17, File No. 161351, App. 7/27/2017, Eff. 8/26/2017; Ord. 208-17, File No. 170834, App. 11/3/2017, Eff. 12/3/2017; Ord. 26-18, File No. 171193, App. 2/23/2018, Eff. 3/26/2018; Ord. 202-18, File No. 180557, App. 8/10/2018, Eff. 9/10/2018; Ord. 70-19, File No. 181154, App. 4/19/2019, Eff. 5/20/2019; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021; Ord. 19-25, File No. 240873, App. 3/4/2025, Eff. 4/4/2025)
AMENDMENT HISTORY
Division (a)(1) amended; former division (a)(1)(A) redesignated as new division (a)(2) and amended; former divisions (a)(1)(B) and (C) deleted; former division (a)(2) redesignated as (a)(3) and amended; [former] division (a)(4) added; divisions (c) and (e) amended; new division (f) added and former division (f) redesignated as (g); Ord. 62-13
, Eff. 5/10/2013. Divisions (d) and (d)(2) amended and references to "MOHCD" corrected throughout; Ord. 277-13, Eff. 1/17/2014. Division (c) amended; Ord. 164-15
, Eff. 10/23/2015. Division (g) amended; Ord. 188-15
, Eff. 12/4/2015. Division (d)(2) amended; Ord. 204-15
, Eff. 1/2/2016. Undesignated introductory paragraph and divisions (a)(1)-(3) amended; former division (a)(4) deleted; divisions (b) and (c) amended; Ord. 76-16
, Eff. 6/12/2016. Undesignated introductory paragraph amended; division (a)(1) redesignated as (a)(1) and (a)(6) and amended; former divisions (a)(2), (a)(3), and (b) redesignated as (a)(8), (a)(9), and (e) and amended; new divisions (a)(2)-(a)(5), (a)(7), (a)(10), and (b)-(d) added; former division (c) redesignated as (f) and (f)(1) and amended; new division (f)(2) added; former divisions (d)-(g) redesignated as (g)-(j) and amended; Ord. 158-17, Eff. 8/26/2017. Division (a)(8) amended; Ord. 208-17, Eff. 12/3/2017. Undesignated introductory paragraph and divisions (b), (f)(1), and (j) amended; Ord. 26-18, Eff. 3/26/2018. Division (a)(4) amended; Ord. 202-18, Eff. 9/10/2018. Division (d) amended; Ord. 70-19, Eff. 5/20/2019. Division (a)(4) amended; Ord. 63-20, Eff. 5/25/2020. Divisions (a)(2)-(3) and (a)(5)-(6) amended; new divisions (a)(7) and (a)(9)-(10) added; former divisions (a)(7)-(10) redesignated as (a)(8) and (a)(11)-(13) and amended; divisions (e), (f)-(f)(2), and (g) amended; new divisions (g)(1)-(3) added; former divisions (g)(1)-(2) redesignated as second (g)(2)-(3);1
Ord. 210-21
, Eff. 12/20/2021. Divisions (g)-(g)(3) and second (g)(2)-(3) amended as (g)-(g)(5); divisions (h)-(i) amended as (h)- (h)(2)(B), division (h)(3) added; Ord. 19-25
, Eff. 4/4/2025.
CODIFICATION NOTES
1. So in Ord. 210-21.
2. So in Ord. 19-25.
Editor's Note:
Ordinance 155-15 (File No. 150348, App. 8/6/2015, Eff. 9/5/2015) purported to amend this section. At the direction of the Office of the City Attorney, Ord. 155-15 was never codified (and accordingly is not referenced in the history notes above). Its provisions effectively were superseded by Ord. 164-15 (File No. 150348, App. 9/23/2015, Eff. 10/23/2015, Retro. 5/20/2015).
Ordinance 155-15 (File No. 150348, App. 8/6/2015, Eff. 9/5/2015) purported to amend this section. At the direction of the Office of the City Attorney, Ord. 155-15 was never codified (and accordingly is not referenced in the history notes above). Its provisions effectively were superseded by Ord. 164-15 (File No. 150348, App. 9/23/2015, Eff. 10/23/2015, Retro. 5/20/2015).
New Ordinance Notice
Publisher's Note: This section has been AMENDED by new legislation (Ord. 187-23
, approved 9/14/2023, effective 10/15/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.
New Ordinance Notice
Publisher's Note: This section has been AMENDED by new legislation (Ord. 201-23
, approved 10/12/2023, effective 11/12/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.
If the project sponsor elects pursuant to Section 415.5(g) to provide off-site units to satisfy the requirements of Sections 415.1 et seq., the project sponsor shall notify the Planning Department and MOHCD of its intent prior to approval of the project by the Planning Commission or Department. The Planning Department and MOHCD shall provide an evaluation of the project’s compliance with this Section 415.7 prior to approval by the Planning Commission or Planning Department. The development project shall meet the following requirements:
(a) Number of Units: The number of units constructed off-site shall be as follows:
(1) For any housing development that is located in an area or Special Use District with a specific affordable housing requirement, or in any other Planning Code provision, such as Section 419, the higher off-site housing requirement shall apply.
(2) For housing development projects consisting of 10 units or more but less than 25 units, the number of Affordable Units constructed off-site shall be 20%, so that a project applicant shall construct .20 times the total number of units produced in the Principal Project. If the total number of units is not a whole number, the project applicant shall round up to the nearest whole number for any portion of .5 or above. In no case shall the total number of Affordable Units required exceed the number required as determined by the application of the applicable off-site requirement rate to the total project units. Owned Units shall be affordable to households earning up to 100% of Area Median Income, with an affordable sales price set at 80% of Area Median Income or less. Rental Units shall be affordable to households earning up to 65% of Area Median Income, with an affordable rent set at 55% of Area Median Income or less.
(3) For any Ownership Housing Project consisting of 25 or more units, the number of Affordable Units constructed off-site shall be 33% of all units constructed on the project site, with a minimum of 18% of the units affordable to low-income households, 8% of the units affordable to moderate-income households, and 7% of the units affordable to middle income households. In no case shall the total number of Affordable Units required exceed the number required as determined by the application of the applicable off-site requirement rate to the total project units. Owned Units for low-income households shall have an affordable purchase price set at 80% of Area Median Income or less, with households earning up to 100% of Area Median Income eligible to apply for low-income units. Owned Units for moderate-income households shall have an affordable purchase price set at 105% of Area Median Income or less, with households earning from 95% to 120% of Area Median Income eligible to apply for moderate-income units. Owned Units for middle-income households shall have an affordable purchase price set at 130% of Area Median Income or less, with households earning from 120% to 150% of Area Median Income eligible to apply for middle-income units. For any Affordable Units with purchase prices set at 100% of Area Median Income or above, the units shall have a minimum occupancy of two persons. This unit requirement shall be outlined within the Mayor’s Office of Housing Preferences and Lottery Procedures Manual no later than February 26, 2018. MOHCD may reduce Area Median Income pricing and the minimum income required for eligibility in each rental category.
(4) For any Rental Housing Project consisting of 25 or more Rental Units, the number of affordable units constructed off-site shall generally be 30% of all units constructed on the project site, with a minimum of 18% of the units affordable to low-income households, 6% of the units affordable to moderate-income households, and 6% of the units affordable to middle-income households. In no case shall the total number of affordable units required exceed the number required as determined by the application of the applicable off-site requirement rate to the total project units. Rental Units for low-income households shall have an affordable rent set at 55% of Area Median Income or less, with households earning up to 65% of Area Median Income eligible to apply for low-income units. Rental Units for moderate-income households shall have an affordable rent set at 80% of Area Median Income or less, with households earning from 65% to 90% of Area Median Income eligible to apply for moderate-income units. Rental Units for middle-income households shall have an affordable rent set at 110% of Area Median Income or less, with households earning from 90% to 130% of Area Median Income eligible to apply for middle-income units. For any affordable units with rental rates set at 100% of Area Median Income or above, the units shall have a minimum occupancy of two persons. This unit requirement shall be outlined within the Mayor’s Office of Housing Preferences and Lottery Procedures Manual no later than 6 months following the effective date of the Ordinance contained in Board of Supervisors File No. 161351. MOHCD may reduce Area Median Income pricing and the minimum income required for eligibility in each rental category. MOHCD shall set forth in the Procedures Manual the administration of rental units within this range.
(5) In the event that a Rental Housing project converts to an Ownership Housing project, the Project Sponsor shall either (A) reimburse the City the proportional amount of the Inclusionary Affordable Housing Fee, which would be equivalent to the then-current Inclusionary Affordable Housing Fee requirement for Ownership Housing Projects, or (B) provide additional on-site or off-site Affordable Units equivalent to the then-current inclusionary requirements for Ownership Housing Projects, apportioned among the required number of units at various income levels in compliance with the requirements in effect at the time of conversion.
(6) The applicable amount of the percentage required for the off-site housing units shall be determined based upon the date that the project sponsor has submitted a complete Environmental Evaluation application. Any development project that constructs off-site affordable housing units as set forth in this Section 415.6 shall diligently pursue completion of such units. In the event the project sponsor does not procure a building permit or site permit for construction of the principal project or the off-site affordable housing project within 30 months of the project’s approval, the development project shall comply with the inclusionary affordable housing requirements applicable thereafter at the time when the project sponsor procures a building permit. Such deadline shall be extended in the event of any litigation seeking to invalidate the City’s approval of the principal project or off-site affordable housing project for the duration of the litigation.
(7) If the principal project or the off-site project has resulted in demolition, conversion, or removal of affordable housing units that are sub- ject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate-, low- or very low-income, or housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power and determined to be affordable housing, the Commission or the Department shall require that the project sponsor replace the num- ber of affordable units removed with units of a comparable number of bedrooms and sales prices or rents, in addition to compliance with the inclusionary requirements set forth in this Section.
(b) Timing of Construction: The project sponsor shall ensure that the off-site units are constructed, completed, ready for occupancy, and marketed no later than the market rate units in the principal project. In no case shall the Principal Project receive its first certificate of occupancy until the off-site project has received its first certificate of occupancy.
(c) Location of off-site housing:
(1) Except as specified in subsection (ii) below, the off-site units shall be located within one mile of the principal project;
(2) Projects within the Central SoMa SUD must be located within the area bounded by Market Street, the Embarcadero, King Street, Division Street, and South Van Ness Avenue.
(d) Type of Housing: Nothing in this Section shall limit a project sponsor from meeting the requirements of this Section through the construction of units in a limited equity or land trust form of ownership if such units otherwise meet all of the requirements for off-site housing. In general, affordable units constructed or otherwise provided under this Section shall be comparable in number of bedrooms, exterior appearance and overall quality of construction to market rate units in the principal project. The total square footage of the off-site affordable units constructed or otherwise provided under this Section shall be no less than the calculation of the total square footage of the on-site market-rate units in the principal project multiplied by the relevant on-site percentage requirement for the project specified in this Section. The Notice of Special Restrictions or conditions of approval shall include a specific number of units at specified unit sizes – including number of bedrooms and minimum square footage – for affordable units. The interior features in affordable units should generally be the same as those of the market rate units in the principal project but need not be the same make, model, or type of such item as long as they are of new and good quality and are consistent with then-current standards for new housing and so long as they are consistent with the “Quality Standards for Off-Site Affordable Housing Units” found in the Procedures Manual. Where applicable, parking shall be offered to the affordable units subject to the terms and conditions of the Department’s policy on unbundled parking for affordable housing units as specified in the Procedures Manual and amended from time to time. If the residential units in the principal project are live/work units which do not contain bedrooms or are other types of units which do not contain bedrooms separated from the living space, the off-site units shall be comparable in size according to the following equivalency calculation between live/work and units with bedrooms:
Number of Bedrooms (or, for live/work units square foot equivalency) | Number of Persons in Household |
0 (Less than 600 square feet) | 1 |
1 (601 to 850 square feet) | 2 |
2 (851 to 1,100 square feet) | 3 |
3 (1,101 to 1,300 square feet) | 4 |
4 (More than 1,300 square feet) | 5 |
(e) Marketing the Units: The Project Sponsor shall submit a proposed marketing plan to MOHCD to begin marketing the Affordable Units at least six months prior to the beginning of marketing for any unit in the Principal Project. MOHCD shall approve the marketing plan for the Affordable Units prior to the Project Sponsor marketing any unit in the Principal Project. Failure to comply shall be deemed a violation of the Planning Code subject to enforcement and penalties as set forth in Section 415.9. MOHCD shall be responsible for overseeing and monitoring the marketing of Affordable Units under this Section 415.7. In general, the marketing requirements and procedures shall be contained in the Procedures Manual as amended from time to time and shall apply to the Affordable Units in the project. MOHCD may develop occupancy standards for units of different bedroom sizes in the Procedures Manual in order to promote an efficient allocation of Affordable Units. MOHCD may require in the Procedures Manual that prospective purchasers complete homebuyer education training or fulfill other requirements. MOHCD shall develop a list of minimum qualifications for marketing firms that market Affordable Units under Section 415.1 et seq., referred to in the Procedures Manual as Below Market Rate (BMR units). No project sponsor marketing units under the Program shall be able to market BMR units except through a firm meeting all of the minimum qualifications. The Notice of Special Restrictions or conditions of approval shall specify that the marketing requirements and procedures contained in the Procedures Manual as amended from time to time, shall apply to the Affordable Units in the project.
(1) Lottery: At the initial offering of affordable units in a housing project and when Affordable Units become available for resale or re-lease in any housing project subject to this Program after the initial offering, MOHCD must require the use of a public lottery approved by MOHCD to select purchasers or tenants.
(2) Preferences: MOHCD shall create a lottery system that gives preference according to the provisions of Administrative Code Chapter 47. MOHCD shall propose policies and procedures for implementing these preferences to the Planning Commission for inclusion in the Procedures Manual. Otherwise, it is the policy of the City to treat all households equally in allocating affordable units under this Program.
(f) Individual affordable units constructed as part of a larger off-site project under this Section 415.7 shall not receive development subsidies from any Federal, State or local program established for the purpose of providing affordable housing, and shall not be counted to satisfy any affordable housing requirement for the off-site development. Other units in the same off-site project may receive such subsidies. In addition, subsidies may be used, only with the express written permission by MOHCD, to deepen the affordability of an affordable unit beyond the level of affordability required by this Program.
(g) Notwithstanding the provisions of Section 415.7(f) above, a project may use California Debt Limit Allocation Committee (CDLAC) tax-exempt bond financing and 4% credits under the Tax Credit Allocation Committee (TCAC) to help fund its obligations under this ordinance as long as the project provides at least 60% of the off-site affordable units as affordable at 55% of area median income and the balance of the off-site affordable units using these funds at affordability rates that comply with the requirements of TCAC, CDLAC, and this Section 415. The income table to be used for such projects when the units are priced at 55% of area median income is the income table used by MOHCD for the Inclusionary Housing Program, not that used by TCAC or CDLAC. Except as provided in this subsection (g), all units provided under this Section 415.7 must meet all of the requirements of the Inclusionary Affordable Housing Program and the Procedures Manual for off-site housing.
(Added as Sec. 315.6 by Ord. 37-02, File No. 001262, App. 4/5/2002; amended by Ord. 76-03, File No. 020592, App. 5/2/2003; Ord. 213-06, File No. 051668, App. 8/2/2006; Ord. 219-06, File No. 051685, App. 8/10/2006; Ord. 101-07, File No. 060529, App. 5/4/2007; Ord. 198-07, File No. 070444, App. 8/10/2007; Ord. 232-08, File No. 080521, App. 10/30/2008; Ord. 63-09, File No. 081249, App. 4/23/2009; redesignated and amended by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 62-13
, File No. 121162, App. 4/10/2013, Eff. 5/10/2013; Ord. 277-13, File No. 130968, App. 12/18/2013, Eff. 1/17/2014; Ord. 204-15
, File No. 150622, App. 12/3/2015, Eff. 1/2/2016; Ord. 76-16
, File No. 160255, App. 5/13/2016, Eff. 6/12/2016; Ord. 158-17, File No. 161351, App. 7/27/2017, Eff. 8/26/2017; Ord. 26-18, File No. 171193, App. 2/23/2018, Eff. 3/26/2018; Ord. 202-18, File No. 180557, App. 8/10/2018, Eff. 9/10/2018; Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021)
AMENDMENT HISTORY
Undesignated introductory paragraph and divisions (a)(1), (b), (d), and (f) amended; division (g) added; Ord. 62-13
, Eff. 5/10/2013. Undesignated introductory paragraph and division (e)(2) amended; references to "MOHCD" corrected throughout; Ord. 277-13, Eff. 1/17/2014. Division (e)(2) amended; Ord. 204-15
, Eff. 1/2/2016. Undesignated introductory paragraph amended; former division (a)(1)(A) redesignated as (a)(1) and amended; former divisions (a)(1)(B) and (C) deleted; new divisions (a)(2)-(4) added; divisions (b), (c), and (d) amended; Ord. 76-16
, Eff. 6/12/2016. Undesignated introductory paragraph and divisions (a)(1)-(3) amended; former division (a)(4) deleted; new divisions (a)(4)-(7) added; divisions (e), (f), and (g) amended; Ord. 158-17, Eff. 8/26/2017. Undesignated introductory paragraph and division (d) amended; Ord. 26-18, Eff. 3/26/2018. Undesignated introductory paragraph and division (g)1 amended; Ord. 202-18
, Eff. 9/10/2018. Division (c) redesignated as divisions (c) and (c)(1); division (c)(1) amended; division (c)(2) added; Ord. 296-18
, Eff. 1/12/2019. Undesignated introductory paragraph and divisions (a)(2), (a)(3), (a)(5), and (e)-(e)(1) amended; Ord. 210-21
, Eff. 12/20/2021.
CODIFICATION NOTE
SEC. 415B.1. AFFORDABLE HOUSING FEE.
(a) For any housing development consisting of 25 units or more, the applicable percentage shall be 20.5%.
(b) For any housing development located in an area with a specific affordable housing requirement set forth in a Special Use District, Area Plan, or in any other section of the Code, including 415.3(d), 419, or 428, the percentage shall be 68% of the rate applicable to Rental Housing Projects, rounded to the nearest tenth of one percent. This section shall not apply to fees subject to the Temporary Fee Reduction Program set forth in Section 403.
SEC. 415B.2. ON-SITE AFFORDABLE HOUSING ALTERNATIVE.
(a) For any housing development consisting of 25 or more units, the number of Affordable Units constructed on-site shall be 15% of all units constructed on the project site. Project sponsors shall ensure that a minimum of 10% of the Affordable Units shall be affordable to low-income households, 2.5% of the Affordable Units shall be affordable to moderate-income households, and 2.5% of the Affordable Units shall be affordable to middle-income households.
(b) For any housing development located in an area with a specific affordable housing requirement set forth in a Special Use District, Area Plan, or in any other section of the Code such as Section 415.3(d), 419, or 428, the percentage shall be 68% of the rate applicable to Rental Housing Projects in such area, rounded to the nearest tenth of one percent.
AMENDMENT HISTORY
Section re-added; undesignated paragraph amended; Ord. 201-23, Eff. 11/12/2023.
SEC. 415B.3. OFF-SITE AFFORDABLE HOUSING ALTERNATIVE.
(a) For any housing development consisting of 25 units or more, the applicable percentage shall be 20.5%. Project sponsors shall ensure that a minimum of 11.5% of the Affordable Units shall be affordable to low-income households, 5% of the Affordable Units shall be affordable to moderate-income households, and 4% of the Affordable Units shall be affordable to middle-income households.
(b) For any housing development that is located in an area with a specific off-site affordable housing requirement set forth in a Special Use District, Area Plan, or in any other section of the Code including Section 415.3(d), 419, or 428, the percentage shall be 68% of the applicable rate for Rental Housing Projects in the area, rounded to the nearest tenth of one percent.
SEC. 415B.4. INCLUSIONARY FEE ANNUAL FEE UPDATES.
SEC. 415B.5. SUNSET PROVISION.
[AFFORDABLE HOUSING: MARKET AND OCTAVIA AREA PLAN;
UPPER MARKET NEIGHBORHOOD COMMERCIAL DISTRICT]
UPPER MARKET NEIGHBORHOOD COMMERCIAL DISTRICT]
New Ordinance Notice
Publisher's Note: This section has been AMENDED by new legislation (Ord. 187-23
, approved 9/14/2023, effective 10/15/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.
New Ordinance Notice
Publisher's Note: This section has been AMENDED by new legislation (Ord. 201-23
, approved 10/12/2023, effective 11/12/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.
(1) For all projects sites designated as Tier A, a minimum of 14.4 percent of the total units constructed shall be affordable to and occupied by qualifying persons and families as defined elsewhere in this Code, so that a project sponsor must construct .144 times the total number of units produced in the principal project beginning with the construction of the tenth unit. If the total number of units is not a whole number, the sponsor shall round up to the nearest whole number for any portion of .5 or above.
(A) If the project sponsor is eligible for and elects pursuant to Section 415.5(g) to build off-site units to satisfy the requirements of this program, the sponsor shall construct 23 percent so that a sponsor must construct .23 times the total number of units produced in the principal project beginning with the construction of the tenth unit. If the total number of units is not a whole number, the sponsor shall round up to the nearest whole number for any portion of .5 or above.
(B) If the project sponsor elects pursuant to Section 415.5 to pay the fee to satisfy the requirements of this program, the sponsor shall meet the requirements of Section 415 according to the number of units required above if the project applicant were to elect to meet the requirements of this Section by off-site housing development. For the purposes of this Section, the City shall calculate the fee using the direct fractional result of the total number of units multiplied by the percentage of off-site housing required, rather than rounding up the resulting figure.
(2) For all project sites designated Tier B, a minimum of 16 percent of the total units constructed shall be affordable to and occupied by qualifying persons and families as defined elsewhere in this Code, so that a project sponsor must construct .16 times the total number of units produced in the principal project beginning with the construction of the tenth unit. If the total number of units is not a whole number, the sponsor shall round up to the nearest whole number for any portion of .5 or above.
(A) If the project sponsor is eligible for and elects pursuant to Section 415.5(g) to build off-site units to satisfy the requirements of this program, the sponsor shall construct 25 percent so that a sponsor must construct .25 times the total number of units produced in the principal project beginning with the construction of the tenth unit. If the total number of units is not a whole number, the sponsor shall round up to the nearest whole number for any portion of .5 or above.
(B) If the project sponsor elects pursuant to Section 415.5(g) to pay the fee to satisfy the requirements of this program, the sponsor shall meet the requirements of Section 415 according to the number of units required above if the sponsor were to elect to meet the requirements of this Section by off-site housing development. For the purposes of this Section, the City shall calculate the fee using the direct fractional result of the total number of units multiplied by the percentage of off-site housing required, rather than rounding up the resulting figure.
(3) For all project sites designated Tier C, a minimum of 17.6 percent of the total units constructed shall be affordable to and occupied by qualifying persons and families as defined elsewhere in this Code, so that a project sponsor must construct .176 times the total number of units produced in the principal project beginning with the construction of the tenth unit. If the total number of units is not a whole number, the sponsor shall round up to the nearest whole number for any portion of .5 or above.
(A) If the project sponsor is eligible for and elects pursuant to Section 415.5(g) to build off-site units to satisfy the requirements of this program, the sponsor shall construct 27 percent so that a sponsor must construct .27 times the total number of units produced in the principal project beginning with the construction of the tenth unit. If the total number of units is not a whole number, the sponsor shall round up to the nearest whole number for any portion of .5 or above.
(B) If the project sponsor elects pursuant to Section 415.5 to pay the fee to satisfy the requirements of this program, the sponsor shall meet the requirements of Section 415 according to the number of units required above if the sponsor were to elect to meet the requirements of this Section by off-site housing development. For the purposes of this Section, the City shall calculate the fee using the direct fractional result of the total number of units multiplied by the percentage of off-site housing required, rather than rounding up the resulting figure.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 55-11, File No. 101523, App. 3/23/2011; Ord. 219-12, File No. 120464, App. 10/23/2012, Eff. 11/22/2012, Oper. 1/15/2013; Ord. 62-13
, File No. 121162, App. 4/10/2013, Eff. 5/10/2013; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020)
AMENDMENT HISTORY
New Ordinance Notice
Publisher's Note: This section has been AMENDED by new legislation (Ord. 187-23
, approved 9/14/2023, effective 10/15/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.
New Ordinance Notice
Publisher's Note: This section has been AMENDED by new legislation (Ord. 201-23
, approved 10/12/2023, effective 11/12/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.
(See Interpretations related to this Section.)
(a) Alternatives to the Inclusionary Housing Component. In addition to the Alternatives specified in Section 415.5(g) the project sponsor may elect to satisfy the requirements of Section 415.5 by one of the Alternatives specified in this Section. The project sponsor has the choice between the Alternatives and the Planning Commission may not require a specific Alternative. The project sponsor must elect an Alternative before it receives project approvals from the Planning Commission or Planning Department and that Alternative will be a condition of project approval. The Alternatives are as follows:
(1) Middle Income Alternative. On sites with less than 50,000 square feet of total developable area, applicants may provide units as affordable to qualifying “middle income” households as follows:
(A) A minimum percent of the total units constructed shall be affordable to and occupied affordable to qualifying “middle income” households upon initial sale, according the schedule in Table 419.5. If the total number of units is not a whole number, the project applicant shall round up to the nearest whole number for any portion of .5 or above. Units shall be affordable to households between 120% and 150% of the San Francisco Area Median Income, with an average affordability level of 135% for all units provided through this Alternative.
(B) Where market rate sales prices exceed restricted sales prices, the difference between the market rate sales prices and the restricted sales prices shall be held by the MOHCD as a silent second mortgage according to the Procedures Manual. The City shall hold a deed of trust and promissory note for the second mortgage. MOHCD shall hold this mortgage and shall release it when the original note and proportional share of the appreciation are paid in full to the City.
(C) Units shall initially be sold at or below prices to be determined by MOHCD in the Conditions of Approval or Notice of Special Restrictions according to the formula specified in the Procedures Manual to make them affordable to middle income households. Upon resale, the seller shall be permitted to sell the units at their market price. The City will waive its right of first refusal to the seller when the promissory note and deed of trust are paid, along with the City’s share of the appreciation of the unit. The promissory note shall accrue no interest and shall require no monthly payments.
(D) Upon first resale, the seller shall have a right to keep a percentage of the total appreciation of the unit proportional to every year the original seller owns the unit as an owner occupant. The remainder of the proceeds of the sale, after the first mortgage, the second mortgage, and any other subordinate financing is paid off, shall be repaid to MOHCD. Detailed resale procedures shall be specified in the Middle Income Housing Procedures Manual published by MOHCD and approved by the Planning Commission. The Director of MOHCD shall amend the Procedures Manual as needed with the Commission’s approval.
(E) The City shall monitor units provided under this option during the 2- and 5-year Monitoring Report specified in Section 342 of this Code and in separate resolution. Should this monitoring report indicate that units constructed under this program do not meet the programs1
program’s stated goals of providing affordable housing to Middle Income Households, the Planning Department and MOHCD shall consider changes to this program, including, but not limited to, legislative changes.
(F) If the project sponsor elects to satisfy the requirements of Section 415.5 and of this Section by the Alternative specified above, the dwelling unit mix required by Section 207.6 may be waived provided the minimum percent of total units affordable to qualifying “middle income” households as required by Table 419.5 is increased by 10%.
(2) Land Dedication Alternative. Applicants may dedicate a portion of the total developable area of the principal site to the City and County of San Francisco for the purpose of constructing units Affordable to Qualifying Households. A minimum percentage of developable area, representing an equivalent percent of total potential units to be constructed, shall be dedicated to the City according the schedule in Table 419.5
. To meet the requirements of this Alternative, the developer must convey title to land in fee simple absolute to MOHCD according to the Procedures Manual, provided the dedicated site is deemed of equivalent or greater value to the principal site per those procedures and is in line with the following requirements:
(A) The dedicated site will result in a total amount of inclusionary units not less than 40 units. MOHCD may conditionally approve and accept dedicated sites which result in no less than 25 units at its discretion.
(B) The dedicated site will result in a total amount of inclusionary units that is equivalent or greater than the minimum percentage of the units that will be provided on the principal site, as required by Table 419.5. MOHCD may also accept dedicated sites that represent the equivalent of or greater than the required percentage of units for all units that could be provided on a collective of sites within a one-mile radius, provided the total amount of inclusionary units provided on the dedicated site is equivalent to or greater than the total requirements for all principal sites participating in the collective, according to the requirements of Table 419.5.
(C) The dedicated site is suitable from the perspective of size, configuration, physical characteristics, physical and environmental constraints, access, location, adjacent use, and other relevant planning criteria. The site must allow development of affordable housing that is sound, safe, and acceptable.
(D) The dedicated site includes infrastructure necessary to serve the inclusionary units, including sewer, utilities, water, light, street access, and sidewalks.
(E) The developer must submit full environmental clearance for the dedicated site before the land can be considered for conveyance, and before a first site or building permit may be conferred upon the Principal Project.
(F) The City may accept dedicated sites that vary from the minimum threshold, provided such a dedication is deemed generally equivalent to the original requirement by the MOHCD.
(G) The City may accept dedicated sites that meet the above requirements in accordance with the Procedures Manual, in combination with fees or on-site units, provided such a combination is deemed generally equivalent by MOHCD to the original requirement.
(H) The project applicant has a letter from MOHCD verifying acceptance of site before it receives project approvals from the Planning Commission or Planning Department, which shall be used to verify dedication as a condition of approval.
(J) The Land Dedication Alternative may be satisfied through the dedication to the City of air space above or adjacent to the project, upon the approval of MOHCD, or a successor entity, and provided the other requirements of subsection (a)(2)(A)-(I) are otherwise satisfied.
Tier | On-Site Housing Requirement | Off-Site/In-Lieu Requirement | Middle Income Alternative* | Land Dedication Alternative for sites that have less than 30,000 square feet of developable area | Land Dedication Alternative for sites that have at least 30,000 square feet of developable area |
A | 14.4% | 23% | 30% | 35% | 30% |
B | 16% | 25% | 35% | 40% | 35% |
C | 17.6% | 27% | 40% | 45% | 40% |
*Requirement increases by 5% if dwelling unit mix required by Section 207.6 is waived.
(b) Adjustments to Requirements for the Inclusionary Housing Component. This Section is intended to incorporate, rather than supersede, any changes made to Planning Code Section 415. In the instance that the base requirements of Section 415 are amended, the above-noted requirements shall be reviewed, and if appropriate, amended and/or increased accordingly.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 55-11, File No. 101523, App. 3/23/2011; Ord. 196-11
, File No. 110786, App. 10/4/2011, Eff. 11/3/2011; Ord. 56-13
, File No. 130062, App. 3/28/2013, Eff. 4/27/2013; Ord. 62-13
, File No. 121162, App. 4/10/2013, Eff. 5/10/2013; Ord. 182-15
, File No. 150496, App. 10/16/2015, Eff. 11/15/2015; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021)
AMENDMENT HISTORY
Divisions (a)(1)(F), (a)(2)(B), (a)(2)(I) amended; former Table 419A.4 redesignated as Table 419.5 and internal references adjusted accordingly; Table 419.5 note amended; Ord. 196-11
, Eff. 11/3/2011. [Former] division (b) amended; Ord. 56-13
, Eff. 4/27/2013. Table 419.5 amended; Ord. 62-13
, Eff. 5/10/2013. Former division (b) deleted; former division (c) redesignated as (b); Ord. 182-15
, Eff. 11/15/2015. Divisions (a), (a)(1)(A)-(F), and (a)(2)-(a)(2)(J) amended; Ord. 210-21, Eff. 12/20/2021.
CODIFICATION NOTE
New Ordinance Notice
Publisher's Note: This section has been AMENDED by new legislation (Ord. 201-23
, approved 10/12/2023, effective 11/12/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.
(Added by Ord. 295-18, File No. 151258, App. 12/7/2018, Eff. 1/7/2019)
(Former Sec. 428 added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 310-10, File No. 101194, App. 12/16/2010; repealed by Ord. 119-15
, File No. 150221, App. 7/15/2015, Eff. 8/14/2015)
SEC. 428.1. FINDINGS.
The Board of Supervisors hereby finds that:
(a) The additional affordable housing fee requirement of Sections 428.1 et seq. is supported by the November 2016 Nexus Study performed by Keyser Marston and Associates. The Board of Supervisors has reviewed the Nexus Study and other documents and, on that basis, finds that the Study supports the inclusionary affordable housing requirements combined with the additional affordable housing fee and requirements set forth in Sections 428.1 et seq. Specifically, the Board finds that the Study: (1) identifies the purpose of the additional fee and requirements to mitigate impacts on the demand for affordable housing in the City; (2) identifies the use of the additional fee to increase the City’s affordable housing supply; and (3) establishes a reasonable relationship between the use of the additional fee for affordable housing and the need for affordable housing and the construction of new market rate housing. Further, the affordable housing fee and requirements do not include the costs of remedying any existing deficiencies and do not duplicate other City requirements or fees.
(b) An account has been established, funds appropriated, and a construction schedule adopted for affordable housing projects funded through the Inclusionary Affordable Housing Program. The Affordable Housing Fee will reimburse the City for expenditures on affordable housing that have already been made and that will be made in the future.
(c) A major objective of the Divisadero Street NCT, set forth in Planning Code Section 759, is to encourage and promote development that enhances the walkable, mixed-use character of the corridor and surrounding neighborhood and to encourage housing development in new buildings above the ground floor. New market rate housing development could outnumber both the number of units and potential new sites within the area for permanently affordable housing opportunities. The City has adopted a policy in its General Plan to meet the affordable housing needs of its general population and to require new housing developments to produce sufficient affordable housing opportunities for all income groups, both of which goals are not likely to be met by the potential housing development in the area. In addition, the Nexus Study indicates that market rate housing itself generates additional lower income affordable housing needs for the workforce needed to serve the residents of the new market rate housing proposed for the area. To meet the demand created for affordable housing by the Divisadero Street NCT zoning and to be consistent with the policy of the City, additional affordable housing requirements should be included for all market rate housing development in this NCT.
(d) The Divisadero Street NCT rezoning set forth in Ordinance No. 127-15 allows greater residential development on certain sites within the NCT, and such residential development will create a greater need for affordable housing, and should provide more affordable housing. The higher densities will also make provision of higher levels of affordable housing feasible for such sites.
(e) If a site located in the Divisadero Street NCT received an increase in density of 50% or more from the 2015 rezoning set forth in Ordinance No. 127-15, a higher inclusionary affordable housing requirement should apply. The density for the previously existing Divisadero Street Neighborhood Commercial District was one unit per 800 square feet of lot area.
(Added by Ord. 295-18, File No. 151258, App. 12/7/2018, Eff. 1/7/2019)
SEC. 428.2. DEFINITIONS.
SEC. 428.4. IMPOSITION OF AFFORDABLE HOUSING REQUIREMENTS.
(a) Determination of Requirements. The Planning Department shall determine the applicability of Sections 428.1 et seq. to any development project requiring a first construction document and, if Sections 428.1 et seq. applies, shall impose any such requirements as a condition of approval for issuance of the first construction document. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Department Notice to Development Fee Collection Unit of Fee Requirements. After the Department has made its final determination regarding the application of the affordable housing requirements to a development project pursuant to Sections 428.1 et seq., it shall immediately notify the Development Fee Collection Unit at DBI of the applicable affordable housing fee amount in addition to the other information required by Planning Code Section 402(b).
(c) Process for Revisions of Determination of Requirements. If the Department or the Commission takes action affecting any development project subject to Sections 428.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Board of Appeals, the Board of Supervisors, or a court, the procedures of Planning Code Section 402(c) shall be followed.
(Added by Ord. 295-18, File No. 151258, App. 12/7/2018, Eff. 1/7/2019)
SEC. 428.5. USE OF FUNDS.
The affordable housing fee specified in Sections 428.1 et seq. for the Divisadero Street NCT shall be paid into the Citywide Affordable Housing Fund, established in Administrative Code Section 10.100-49, and the funds shall be separately accounted for. The Mayor’s Office of Housing and Community Development shall expend the funds to increase the supply of housing Affordable to Qualifying Households in the City. The funds may also be used for monitoring and administrative expenses subject to the process described in Planning Code Section 415.5(f).
AMENDMENT HISTORY
Section amended; Ord. 210-21, Eff. 12/20/2021.
New Ordinance Notice
Publisher's Note: This section has been AMENDED by new legislation (Ord. 72-19
, approved 4/19/2019, effective 5/20/2019). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.
(a) Application. Section 435.1 et seq., shall apply to any office development project in the C-3-R Downtown Retail Zoning District.
(b) Amount of fee. The applicable fee shall be $6 per square foot.
AMENDMENT HISTORY
Division (b) amended by Ord. 72-19, Eff. 5/20/2019.
[—]
New Ordinance Notice
Publisher's Note: This section has been AMENDED by new legislation (Ord. 187-23
, approved 9/14/2023, effective 10/15/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.
New Ordinance Notice
Publisher's Note: This section has been AMENDED by new legislation (Ord. 201-23
, approved 10/12/2023, effective 11/12/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.
(a) For any project for which a complete development application has been submitted before October 1, 2018, the Inclusionary Affordable Housing Program set forth in Planning Code Sections 415.1 et seq. shall apply in the Divisadero Street NCT, except the temporary provisions of Planning Code Section 415.3(b) shall not apply and except as set forth in Section 428.3(a). For any development site for which the Planning Department determines that the residential development potential within the Divisadero Street NCT has been increased through the adoption of the NCT rezoning set forth in Ordinance No. 127-15, as detailed in Section 428.1(e) herein, the requirements of Sections 415.1 et seq of the Planning Code shall apply, except as set forth in subsections (a)(1), (a)(2), and (a)(3), below, and the temporary provisions of Planning Code Section 415.3(b) shall not apply.
(1) Fee. For a development project of 10 or more dwelling units that is subject to the Inclusionary Affordable Housing Program, the development project shall pay an affordable housing fee equivalent to a requirement to provide 33% of the units in the Principal Project as affordable units if those units are Owned Units, or 30% of the units if the project is a Rental Housing Project, using the method of fee calculation set forth in Section 415.5(b).
(2) On-site. For a development project of 10 or more units that is subject to the Inclusionary Affordable Housing Program that elects to construct units Affordable to Qualifying Households on-site of the Principal Project as set forth in Planning Code Section 415.5(g), the development project shall comply with all otherwise applicable requirements of Section 415.6, except that for all housing development projects consisting of 10 or more units, the following requirements shall apply.
(A) For an Ownership Housing Project, the number of affordable units constructed on site shall be 23% of all units constructed on the site. A minimum of 12% of the units shall be affordable to low-income households, 5.5% of the units shall be affordable to moderate-income households, and 5.5% of the units shall be affordable to middle-income households. In no case shall the total number of affordable units required exceed the number required as determined by the application of the applicable on-site requirement rate to the total project units. Owned Units for low-income households shall have an affordable purchase price set at 80% of Area Median Income or less, with households earning up to 100% of Area Median Income eligible to apply for low-income units. Owned Units for moderate-income households shall have an affordable purchase price set at 105% of Area Median Income or less, with households earning from 95% to 120% of Area Median Income eligible to apply for moderate-income units. Owned Units for middle-income households shall have an affordable purchase price set at 130% of Area Median Income or less, with households earning from 120% to 150% of Area Median Income eligible to apply for middle-income units.
(B) For a Rental Housing Project, the number of affordable units constructed on site shall be 20% of all units constructed on the site. A minimum of 12% of the units shall be affordable to low-income households, 4% of the units shall be affordable to moderate-income households, and 4% of the units shall be affordable to middle-income households. In no case shall the total number of affordable units required exceed the number required as determined by the application of the applicable on-site requirement rate to the total project units. Rental Units for low-income households shall have an affordable rent set at 55% of Area Median Income or less, with households earning up to 65% of Area Median Income eligible to apply for low-income units. Rental Units for moderate-income households shall have an affordable rent set at 80% of Area Median Income or less, with households earning from 65% to 90% of Area Median Income eligible to apply for moderate-income units. Rental Units for middle-income households shall have an affordable rent set at 110% of Area Median Income or less, with households earning from 90% to 130% of Area Median Income eligible to apply for middle-income units.
(3) Off-site. If the project sponsor of a housing development project of 10 or more units that is subject to the Inclusionary Affordable Housing Program elects to provide units Affordable to Qualifying Households off-site of the Principal Project as set forth in Section 415.5(g), the project sponsor shall construct or cause to be constructed affordable housing equal to 33% of all units constructed on the Principal Project site as affordable housing if the units in the Principal Project are owned units, and 30% if the project is a Rental Housing Project.
(b) For any project for which a complete development application has been submitted on or after October 1, 2018, the Inclusionary Affordable Housing Program set forth in Planning Code Sections 415.1 et seq. shall apply in the Divisadero Street NCT except as set forth in this subsection (b). For any development site for which the Planning Department has determined that the residential development potential has been increased through the adoption of the NCT rezoning set forth in Ordinance No. 127-15, as detailed in Section 428.1(e) herein, the requirements of Planning Code Sections 415.1 et seq. shall apply, except that the following affordable housing requirements shall be applied to residential development on such sites:
(1) Fee. For a development project of 10 or more dwelling units that is subject to the Inclusionary Affordable Housing Program, the development project shall pay an affordable housing fee equivalent to a requirement to provide 33% of the units in the Principal Project as Affordable Units if those units are Owned Units, or 30% of the units if the project is a Rental Housing Project, using the method of fee calculation set forth in Section 415.5(b).
(2) On-site. If the housing development project of 10 or more dwelling units that is subject to the Inclusionary Affordable Housing Program elects to construct units Affordable to Qualifying Households on-site of the Principal Project as set forth in Planning Code Section 415.5(g), the project sponsor shall comply with all otherwise applicable requirements of Section 415.6, except that for all housing development projects consisting of 10 or more units, the number of Affordable Units constructed on-site shall be provided as follows.
(A) A project that consists of Owned Units shall provide 23% of units as Affordable Units at the following levels: 10% shall have an average affordable purchase price set at 80% of Area Median Income; 8% shall have an average affordable purchase price set at 105% of Area Median Income; and 5% shall have an average affordable purchase price set at 130% of Area Median Income.
(B) A project that consists of Rental Units shall provide 23% of units as Affordable Units at the following levels: 10% shall have an average affordable rent set at 55% of Area Median Income; 8% shall have an average affordable rent set at 80% of Area Median Income; and 5% shall have an average affordable rent set at 110% of Area Median Income.
(C) Notwithstanding subsections (b)(2)(A) and (b)(2)(B), the percentage and affordability levels of Affordable Units constructed on-site as set forth in subsections (b)(2)(A) and (b)(2)(B) shall be the same percentage and affordability levels as set forth in Section 206.3(f)(2)(A), as it may be amended from time to time, and in no case shall the percentage of Affordable Units constructed on-site pursuant to this subsection (b)(2) be less than the percentage required by Section 415.6 for projects consisting of 25 or more units. If the percentage of Affordable Units constructed on-site pursuant to this subsection (b)(2) would be less than the percentage set forth in Section 415.6 for projects consisting of 25 or more units, the percentage of Affordable Units set forth in Section 415.6 for projects consisting of 25 or more units shall apply.
(3) Off-site. If the project sponsor of a housing development project of 10 or more units is eligible and elects to provide units Affordable to Qualifying Households off-site of the Principal Project as set forth in Section 415.5(g), the project sponsor shall construct or cause to be constructed affordable housing equal to 33% of all units constructed on the Principal Project site as affordable housing if the units in the Principal Project are owned units, and 30% if the project is a Rental Housing Project.
AMENDMENT HISTORY
Divisions (a)-(a)(2)(A), (a)(3), and (b)(1)-(3) amended; Ord. 210-21, Eff. 12/20/2021.