SEC. 1396.5. SUSPENSION OF THE LOTTERY PENDING PRODUCTION OF REPLACEMENT UNITS FOR…

(a) Within twelve months after issuing tentative or tentative parcel map approval for the last conversion under Section 1396.4 or December 29, 2023, whichever is earlier, the Department shall publish a report stating the total number of units converted under the Expedited Conversion program and every twelve months thereafter until the Expedited Conversion program is completed.

(b) No later than April 15 of each year until the termination of the suspension period, the Mayor's Office of Housing shall publish a report stating the total number of permanently affordable rental housing produced in San Francisco and the "Conversion Replacement Units" produced in the previous calendar year and a cumulative total of such housing produced in preceding years during the tracking period. For purposes of this Subsection, the Mayor's

Office of Housing shall have the authority to determine what type and form of housing constitutes permanently affordable rental housing that has been produced.

(c) Except as otherwise authorized under Section 1396.6 or Section 1396.7, the Department shall not accept an application for the conversion of residential units under Section 1396 nor conduct a lottery under this Article prior to January 1, 2024. Thereafter, the lottery shall resume upon the earlier of the following: (1) the first February following the Mayor’s Office of Housing and Community Development report pursuant to subsection (b) showing that the total number of Conversion Replacement Units produced in the City of San Francisco exceeded the total number of units converted as identified in the Department’s report prepared pursuant to Subsection (a); or (2) completion of the “Maximum Suspension Period” as defined below.

(d) "Conversion Replacement Units" in any year shall be determined by subtracting 300 from the total number of permanently affordable rental units that the City produced in that year starting on January 1, 2014.

(e) The "Maximum Suspension Period" shall be the number of years calculated by dividing the total number of units approved for conversion under Section 1396.4(b)(1)-(7) (the Expedited Conversion program) divided by 200 and rounded to the nearest whole number with the year 2014 as the starting point. For example, if 2400 units have been converted under Section 1396.4(b)(1)-(7), then the maximum suspension period would be 12 years and expire on December 31, 2025.

(Added by Ord. 117-13 , File No. 120669, Pass. 6/18/2013; amended by Ord. 210-22, File No. 210866, App. 10/28/2022, Eff. 11/28/2022; Ord. 195-23, File No. 230026, App. 9/15/2023, Eff. 10/16/2023)

SEC. 1396.6. CONDOMINIUM CONVERSION ASSOCIATED WITH PROJECTS THAT UTILIZE THE RESIDENTIAL DENSITY EXCEPTION IN RH DISTRICTS TO CONSTRUCT NEW DWELLING UNITS PURSUANT TO PLANNING CODE SECTION 207(C)(8).

(a) Findings. The findings of Planning Code Section 415.1 concerning the City’s inclusionary affordable housing program are incorporated herein by reference and support the basis for charging the fee set forth herein as it relates to the conversion of dwelling units into condominiums.

(b) Definition. “Existing Dwelling Unit” shall mean the dwelling unit in existence on a lot at the time of the submittal of an application to construct a new dwelling unit pursuant to Planning Code Section 207(c)(8).

(c) Notwithstanding Section 1396.4 of this Code and Ordinance No. 117-13, a subdivider of a one-unit building that has obtained a permit to build one or more new dwelling units by utilizing the exception to residential density in RH districts set forth in Planning Code Section 207(c)(8), which results in two or more dwelling units, and that has signed an affidavit stating the subdivider’s intent to reside in one of those resulting dwelling units, or in the Existing Dwelling Unit, for a period of three years after the approval of the Certificate of Final Completion and Occupancy for the new dwelling units, shall (1) be exempt from the annual lottery provisions of Section 1396 of this Code with respect to the dwelling units built as part of the Project and (2) be eligible to submit a condominium conversion application for the Existing Dwelling Unit and/or include the Existing Dwelling Unit in a condominium map application for the project approved pursuant to Planning Code Section 207(c)(8). Notwithstanding the foregoing sentence, no property or applicant subject to any of the prohibitions on conversions set forth in Section 1396.2 of this Code, including but not limited to a property with the eviction(s) set forth in Section 1396.2(b), shall be eligible for condominium conversion under this Section 1396.6. Eligible buildings as set forth in this subsection (c) may exercise their option to participate in this program according to the following requirements:

(1) The applicant(s) for the subject building seeking to convert dwelling units to condominiums or subdivide dwelling units into condominiums under this subsection shall pay the fee specified in Section 1315 of this Code.

(2) In addition to all other provisions of this Section 1396.6, the applicant(s) shall comply with all of the following:

(A) The requirements of Subdivision Code Article 9, Sections 1381, 1382, 1383, 1386, 1387, 1388, 1389, 1390, 1391(a) and (b), 1392, 1393, 1394, and 1395.

(B) The applicant(s) must certify under penalty of perjury that within the 60 months preceding the date of the subject application, no tenant resided at the property.

(C) The applicant(s) must certify under penalty of perjury that to the extent any tenant vacated their unit after March 31, 2013, and before recordation of the final parcel or subdivision map, such tenant did so voluntarily or if an eviction or eviction notice occurred it was not pursuant to Administrative Code Sections 37.9(a)(8)-(12) and 37.9(a) (14)-(16). The applicant must also certify under penalty of perjury that to the extent any tenant vacated their unit after March 31, 2013, and before recordation of the final parcel or subdivision map, such tenant did not vacate the unit pursuant to a Buyout Agreement, pursuant to the requirements of Administrative Code Section 37.9E, as it may be amended from time to time, regardless of whether the Buyout Agreement was filed and registered with the Rent Board pursuant to Administrative Code Section 37.9E(h). If a temporary eviction occurred under Sections 37.9(a)(11) or 37.9(a)(14), then the applicant(s) shall certify under penalty of perjury that the original tenant reoccupied the unit after the temporary eviction.

(3) If the Department finds that a violation of this Section 1396.6 occurred prior to recordation of the final map or final parcel map, the Department shall disapprove the application or subject map. If the Department finds that a violation of this Section occurred after recordation of the final map or parcel map, the Department shall take such enforcement actions as are available and within its authority to address the violation.

(4) This Section 1396.6 shall not prohibit a subdivider who has lawfully exercised the sub- divider’s rights under Administrative Code Section 37.9(a)(13) from submitting a condominium conversion application under this Section 1396.6.

(d) Decisions and Hearing on the Application.

(1) The applicant shall obtain a final and effective tentative map or tentative parcel map approval for the condominium subdivision or parcel map within one year of paying the fee specified in subsection (e) of this Section 1396.6. The Director of the Department of Public Works or the Director’s designee is authorized to waive the time limits set forth in this subsection (d)(1) as it applies to a particular building due to extenuating or unique circumstances. Such waiver may be granted only after a public hearing and in no case shall the time limit extend beyond two years after submission of the application.

Section 1396.6. The Director of the Department of Public Works or the Director’s designee is authorized to waive the time limits set forth in this subsection (d)(1) as it applies to a particular building due to extenuating or unique circumstances. Such waiver may be granted only after a public hearing and in no case shall the time limit extend beyond two years after submission of the application.

(2) No less than 20 days prior to the Department’s proposed decision on a tentative map or tentative parcel map, the Department shall publish the addresses of buildings being considered for approval and post such information on its website, post notice that such decision is pending at the affected buildings, and provide written notice of such pending decision to the applicant, all tenants of such buildings, and any member of the public who1 interested party who has requested such notice. During this time, any interested party may file a written objection to an application and submit information to the Department contesting the eligibility of a building. In addition, the Department may elect to hold a public hearing on said tentative map or tentative parcel map to consider the information presented by the public, other City department, or an applicant. If the Department elects to hold such a hearing it shall post notice of such hearing, including posting notice at the subject building, and provide written notice to the applicant, all tenants of such building, any member of the public who submitted information to the Department, and any interested party who has requested such notice. In the event that an objection to the conversion application is filed in accordance with this subsection (d)(2), and based upon all the facts available to the Department, the Department shall approve, conditionally approve, or disapprove an application and state the reasons in support of that decision.

(3) Any map application subject to a Departmental public hearing on the subdivision or a subdivision appeal shall receive a six-month extension on the time limit set forth in subsection (d)(1) of this Section 1396.6.

(e) Should the subdivision application be denied or be rejected as untimely in accordance with the dates specified in subsection (d)(1) of this Section 1396.6, or should the tentative subdivision map or tentative parcel map be disapproved, the City shall refund the entirety of the application fee.

(f) Conversion of buildings pursuant to this Section 1396.6 shall have no effect on the terms and conditions applicable to such buildings under Section 1385A or 1396 of this Code.

(Added by Ord. 210-22, File No. 210866, App. 10/28/2022, Eff. 11/28/2022; amended by Ord. 248-23, File No. 230446, App. 12/14/2023, Eff. 1/14/2024)

CODIFICATION NOTE

1. So in Ord. 248-23.

SEC. 1396.7. CONDOMINIUM CONVERSION ASSOCIATED WITH PROJECTS CONSTRUCTED PURSUANT TO PLANNING CODE SECTION 249.94.

(a) Findings. The findings of Planning Code Section 415.1 concerning the City’s inclusionary affordable housing program are incorporated herein by reference and support the basis for charging the fee set forth herein as it relates to the conversion of dwelling units into condominiums.

(b) Definition. “Existing Dwelling Unit” shall mean the dwelling unit in existence on a lot at the time of the submittal of an application to construct a new dwelling unit pursuant to Planning Code Section 249.94.

(c) Notwithstanding Section 1396.4 of this Code and Ordinance No. 117-13, a subdivider of a one-unit building that has obtained a permit to build one or more new dwelling units pursuant to Planning Code Section 249.94, which results in two or more dwelling units, and that has signed an affidavit stating the subdivider’s intent to reside in one of those resulting dwelling units, or in the Existing Dwelling Unit, for a period of three years after the approval of the Certificate of Final Completion and Occupancy for the new dwelling units, shall (1) be exempt from the annual lottery provisions of Section 1396 of this Code with respect to the dwelling units built as part of the Project and (2) be eligible to submit a condominium conversion application for the Existing Dwelling Units and/or include the Existing Dwelling Units in a condominium map application for the project approved pursuant to Planning Code Section 249.94. Notwithstanding the foregoing sentence, no property or applicant subject to any of the prohibitions on conversions set forth in Section 1396.2 of this Code, including but not limited to a property with the eviction(s) set forth in Section 1396.2(b), shall be eligible for condominium conversion under this Section 1396.7. Eligible buildings as set forth in this subsection (c) may exercise their option to participate in this program according to the following requirements:

(1) The applicant(s) for the subject building seeking to convert dwelling units to condominiums or subdivide dwelling units into condominiums under this subsection shall pay the fee specified in Section 1315 of this Code. (2) In addition to all other provisions of this Section 1396.7, the applicant(s) shall comply with all of the following:

(A) The requirements of Subdivision Code Article 9, Sections 1381, 1382, 1383, 1386, 1387, 1388, 1389, 1390, 1391(a) and (b), 1392, 1393, 1394, and 1395.

(B) The applicant(s) must certify under penalty of perjury that within the 60 months preceding the date of the subject application, no tenant resided at the property.

(C) The applicant(s) must certify under penalty of perjury that to the extent any tenant vacated their unit after March 31, 2013, and before recordation of the final parcel or subdivision map, such tenant did so voluntarily or if an eviction or eviction notice occurred it was not pursuant to Administrative Code Sections 37.9(a)(8)-(12) and 37.9(a) (14)-(16). The applicant must also certify under penalty of perjury that to the extent any tenant vacated their unit after March 31, 2013, and before recordation of the final parcel or subdivision map, such tenant did not vacate the unit pursuant to a Buyout Agreement, pursuant to the requirements of Administrative Code Section 37.9E, as it may be

amended from time to time, regardless of whether the Buyout Agreement was filed and registered with the Rent Board pursuant to Administrative Code Section 37.9E(h). If a temporary eviction occurred under Sections 37.9(a)(11) or 37.9(a)(14), then the applicant(s) shall certify under penalty of perjury that the original tenant reoccupied the unit after the temporary eviction.

(3) If the Department finds that a violation of this Section 1396.7 occurred prior to recordation of the final map or final parcel map, the Department shall disapprove the application or subject map. If the Department finds that a violation of this Section occurred after recordation of the final map or parcel map, the Department shall take such enforcement actions as are available and within its authority to address the violation.

(4) This Section 1396.7 shall not prohibit a subdivider who has lawfully exercised the subdivider’s rights under Administrative Code Section 37.9(a)(13) from submitting a condominium conversion application under this Section 1396.7.

(d) Decisions and Hearing on the Application.

(1) The applicant shall obtain a final and effective tentative map or tentative parcel map approval for the condominium subdivision or parcel map within one year of paying the fee specified in subsection (e) of this Section 1396.7. The Director of the Department of Public Works or the Director’s designee is authorized to waive the time limits set forth in this subsection (d)(1) as it applies to a particular building due to extenuating or unique circumstances. Such waiver may be granted only after a public hearing and in no case shall the time limit extend beyond two years after submission of the application.

Section 1396.7. The Director of the Department of Public Works or the Director’s designee is authorized to waive the time limits set forth in this subsection (d)(1) as it applies to a particular building due to extenuating or unique circumstances. Such waiver may be granted only after a public hearing and in no case shall the time limit extend beyond two years after submission of the application.

(2) No less than 20 days prior to the Department’s proposed decision on a tentative map or tentative parcel map, the Department shall publish the addresses of buildings being considered for approval, post such information on its website, post notice that such decision is pending at the affected buildings, and provide written notice of such pending decision to the applicant, all tenants of such buildings, and any member of the public who interested party who has requested such notice. During this time, any interested party may file a written objection to an application and submit information to the Department contesting the eligibility of a building. In addition, the Department may elect to hold a public hearing on said tentative map or tentative parcel map to consider the information presented by the public, other City department, or an applicant. If the Department elects to hold such a hearing it shall post notice of such hearing, including posting notice at the subject building, and provide written notice to the applicant, all tenants of such building, any member of the public who submitted information to the Department, and any interested party who has requested such notice. In the event that an objection to the conversion application is filed in accordance with this subsection (d)(2), and based upon all the facts available to the Department, the Department shall approve, conditionally approve, or disapprove an application and state the reasons in support of that decision.

(3) Any map application subject to a Departmental public hearing on the subdivision or a subdivision appeal shall receive a six-month extension on the time limit set forth in subsection (d)(1) of this Section 1396.7.

(e) Should the subdivision application be denied or be rejected as untimely in accordance with the dates specified in subsection (d)(1) of this Section 1396.7, or should the tentative subdivision map or tentative parcel map be disapproved, the City shall refund the entirety of the application fee.

(f) Conversion of buildings pursuant to this Section 1396.7 shall have no effect on the terms and conditions applicable to such buildings under Section 1385A or 1396 of this Code. (Added by Ord. 195-23, File No. 230026, App. 9/15/2023, Eff. 10/16/2023)