Title 2 — PROVISIONS RELATING TO FORMATION OF DISTRICTS SEC. 43.10.13. NAME AND NATURE…

The name of any district created under this Article shall be substantially as follows:

"City and County of San Francisco Special Tax District No. ____________ ( )."

(Ord. 216-09, File No. 090938, App. 10/29/2009)

For purposes of any election herein, unless otherwise waived by unanimous action of all qualified electors, the time for the conduct of the election shall be not less than 30 nor more than 120 days from the adoption of the Resolution of Formation or other resolution ordering such election. For purposes of any such election, the Clerk of the Board of Supervisors shall be the election official responsible for conducting and canvassing such election.

In order to reduce the procedural burdens on the City and County and its property owners, this Article establishes certain procedures by which one or more property owners may vote in favor of special taxes, bonded indebtedness, an appropriations limit, and annexation to a district by unanimous approval. The Board of Supervisors hereby finds and declares that any unanimous approval constitutes the vote of the qualified elector in favor of the matters addressed in the unanimous approval for purposes of the California Constitution, including, but not limited to Articles XIIIA and XIIIC.

(Ord. 216-09, File No. 090938, App. 10/29/2009)

In addition to the facilities that may be financed under the Act, special taxes may be levied and bonds may be issued to finance or refinance any of the following on any land in the City, and the related interim costs:: [1]

(a) The acquisition, installation and improvement of energy efficiency, water conservation, water pollution control, and renewable equipment with an estimated useful life of five years or longer and/or energy efficiency, water conservation, water pollution control, and renewable energy improvements that are attached to or on real property and in buildings, whether such real property or buildings are privately or publicly owned.

Energy efficiency, water conservation, water pollution control and renewable energy improvements may only be installed on a privately owned building and on privately owned real property with the prior written consent of the owner or owners of the building or real property.

(b) The work deemed necessary to bring new or existing buildings or real property, including privately owned buildings or real property, into compliance with seismic safety standards or regulations [1 ] Work on privately owned property may only be financed with the prior written consent of the owner or owners of the privately owned property.

(c) Demolition or partial demolition of existing buildings and structures, but only to the extent that this work is required to prepare areas that will be (1) in a public right of way, (2) in a publicly owned park or open space, (3) developed with other public facilities or improvements, (4) in a privately owned, publicly accessible park or open space or (5) developed with facilities or improvements that are being financed pursuant to subsection (f) and are listed in the resolution of formation for the special tax district and the ordinance levying the special taxes in the special tax district.

(d) Work on qualified historical buildings or structures, including deconstruction and reconstruction work, relocation and flood-proofing costs.

Such work shall be carried out in accordance with applicable historic rehabilitation standardstt [1] . Such work on privately owned property may only be financed with the prior written consent of the owner or owners of the privately owned property.

(e) Sustainability studies and guideline documents related to development in the planning area governed by any area plan document approved by the Board of Supervisors.. [1]

(f) The purchase, construction, reconstruction, expansion, improvement, or rehabilitation of real or other tangible property with an estimated useful life of three years or longer, whether such property is privately or publicly owned, if the Board of Supervisors has provided for the financing of such property in the resolution of formation for the special tax district and the ordinance levying the special taxes in the special tax district.

ion, expansion, improvement, or rehabilitation of real or other tangible property with an estimated useful life of three years or longer, whether such property is privately or publicly owned, if the Board of Supervisors has provided for the financing of such property in the resolution of formation for the special tax district and the ordinance levying the special taxes in the special tax district.

(g) For the development of (i) the 20th Street Historic Buildings (as described in Board of Supervisors Resolution No. 273-14), (ii) the area known as Seawall Lot 349 or Pier 70 (described in Board of Supervisors Resolution No. 401-17), (iii) the project known as the Mission Rock project (described in Board of Supervisors Resolution No. 42-18), and (iv) any previously undeveloped or underutilized area larger than 25 acres that the Board of Supervisors finds could not be developed without private investment to fund initial construction of public utility infrastructure, public access and open space areas, public right-of-ways, and other public amenities, the private developer’s costs to establish the regulatory framework governing development in the area and to support the feasibility of special tax or other financing districts, including entitlement costs, if approved in the resolution of formation for the special tax district and the ordinance levying the special taxes in the special tax district.

(Ord. 216-09, File No. 090938, App. 10/29/2009; amended by Ord. 205-13, File No. 130781, App. 10/11/2013, Eff. 11/10/2013; Ord. 283-18, File No. 180612, App. 12/7/2018, 1/7/2019; Ord. 210-19, File No. 190657, App. 9/20/2019, Eff. 10/21/2019)

CODIFICATION NOTE

1. So in Ord. 210-19.

In proceedings under this Article to establish a district, and notwithstanding any provision of the Act, the resolution of intention to establish the district may include the following in the case of any special tax levied against any taxable parcel used for private residential purposes to pay for facilities, (1) the maximum special tax that may be levied against such parcel, which shall be specified as a dollar amount that shall be calculated and established not later than the date on which the applicable parcel is first subject to the tax because of its use for private residential purposes, and which amount shall not be increased over time except for increases not to exceed 2 percent per year, (2) a tax year after which no further special tax subject to this sentence shall be levied against or collected from the applicable taxable residential parcel, except that a special tax that was lawfully levied in or before the final tax year and that remains delinquent may be collected in subsequent years, and (3) a statement that under no circumstances will the special tax levied in any fiscal year against any taxable residential parcel subject to this sentence be increased by more than 10 percent of the maximum special tax applicable to the taxable residential parcel because of delinquency or default by the owner of any other parcel within the district. For purposes of this Section, a parcel shall be considered “used for private residential purposes” not later than the date on which an occupancy permit for private residential use is issued.

Notwithstanding the above, the district may establish limitations on the increase in the levy of special taxes on non-residential property because of a delinquency or default by the owner of any other parcel within the district provided such limitations are established in the resolution of intention and approved by the qualified electors of the district at the time of formation of the district.

Nothing in this Section is intended to or shall prohibit the legislative body from (i) [1 ] establishing different tax rates for different categories of residential property and non-residential property, (2) changing the dollar amount of the special tax for a taxable residential parcel or taxable nonresidential parcel if the size of the residence is increased or if the size or use of the parcel is changed, or (3) using special tax revenues deposited into a reserve fund that is intended to pay for authorized facilities to pay debt service on bonds following delinquencies by property owners in the district.

(Added by Ord. 210-19, File No. 190657, App. 9/20/2019, Eff. 10/21/2019)

CODIFICATION NOTE

1. So in Ord. 210-19.

A special tax district may enter into an agreement with any third party that pledges to the special tax district funds that will be used to pay for facilities or services that the special tax district is authorized to finance or to pay debt service on bonds or debt issued by or for the special tax district.

(Added by Ord. 210-19, File No. 190657, App. 9/20/2019, Eff. 10/21/2019)

(a) In addition to the services that may be financed under the Act, special taxes may be levied to finance the following within the City:

(i) Recreation program services, library services, maintenance services for elementary and secondary schoolsites and structures, and the operation and maintenance of museums and cultural facilities if they have been approved by the qualified electors, regardless of whether the qualified electors are landowners or registered voters.

(ii) Any other services that the Board of Supervisors has authorized in the resolution of formation for the special tax district and the ordinance levying the special taxes in the special tax district.

(b) It is hereby specifically provided that in proceedings under this Article to finance services, (i) the services may replace or supplant those provided before the district was formed, despite the limitations in Section 53313, and (ii) the services financed by the district may be provided inside or outside the district [1]

(Ord. 216-09, File No. 090938, App. 10/29/2009; amended by Ord. 283-18, File No. 180612, App. 12/7/2018, 1/7/2019; Ord. 210-1, File No. 190657, App. 9/20/2019, Eff. 10/21/2019)

CODIFICATION NOTE

1. So in Ord. 210-1.

(a) As an alternate and independent procedure for forming a special tax district, the Board of Supervisors may form a special tax district that initially consists solely of territory proposed for annexation to the special tax district in the future, with the condition that a parcel or parcels within that territory may be annexed to the special tax district and subjected to the special tax only with the unanimous approval of the owner or owners of such parcel or parcels at the time that such parcel or those parcels are annexed. In such case, the Board of Supervisors shall follow the procedures set forth in the Act for the formation of a community facilities district, with the following exceptions:

(i) The Board of Supervisors shall not be obligated to specify the rate or rates of special tax in the resolution of intention or the resolution of formation, provided that both of the following are met:

(A) the resolution of intention and the resolution of formation include a statement that the rate shall be established in an amount required to finance or refinance the authorized improvements and to pay the district's administrative expenses, and

(B) the maximum rate of special tax applicable to a parcel or parcels shall be specified in the unanimous approval described in this Section relating to such parcel or parcels.

(ii) In lieu of approval pursuant to an election held in accordance with the procedures set forth in this Article and in Sections 53326, 53327, 53327.5 and 53328 of the Act, the appropriations limit for the special tax district, the applicable rate, method of apportionment and manner of collection of special tax and the authorization to incur bonded indebtedness for the special tax district may be specified and approved by the unanimous approval of the owner or owners of each parcel or parcels at the time that such parcel or parcels are annexed to the special tax district. No additional hearings or procedures are required, and a unanimous approval shall be deemed to constitute a unanimous vote in favor of the appropriations limit for the special tax district, the authorization to levy the special tax on such parcel or parcels and the authorization to incur bonded indebtedness for the special tax district.

(iii) This subsection establishes the applicable protest provisions in the event the City forms a special tax district pursuant to the procedures set forth in this Section. If 50 percent or more of the registered voters, or six registered voters, whichever is more, residing within the territory proposed to be annexed to the special tax district in the future, or if the owners of one-half or more of the area of land proposed to be annexed in the future and not exempt from the special tax, file written protests against establishment of the special tax district, and protests are not withdrawn so as to reduce the protests to less than a majority, no further proceedings to form the special tax district shall be undertaken for a period of one year from the date of

the owners of one-half or more of the area of land proposed to be annexed in the future and not exempt from the special tax, file written protests against establishment of the special tax district, and protests are not withdrawn so as to reduce the protests to less than a majority, no further proceedings to form the special tax district shall be undertaken for a period of one year from the date of

decision of the Board of Supervisors on the issues discussed at the hearing, if the majority protests of the registered voters or of the landowners are only against the furnishing of a specified type or types of facilities or services within the district, or against levying a specified special tax, those types of facilities or services or the specified special tax shall be eliminated from the resolution of formation.

(iv) The Board of Supervisors shall not record a notice of special tax lien against any parcel or parcels in the special tax district until such time as the owner or owners of such parcel or parcels have given their unanimous approval of such parcel or parcels' annexation to the special tax district, at which time the notice of special tax lien shall be recorded against such parcel or parcels as set forth in Section 53328.3 of the Act.

(b) Notwithstanding the provisions of Section 53340 of the Act, after adoption of the resolution of formation for a special tax district described in subdivision (a) hereof, the Board of Supervisors may, by ordinance, provide for the levy of the special taxes on parcels that will annex to the special tax district at the rate or rates to be approved by unanimous approval of the owner or owners of each parcel or parcels to be annexed to the special tax district and for apportionment and collection of the special taxes in the manner specified in the resolution of formation. No further ordinance shall be required even though no parcels may then have annexed to the special tax district.

the special tax district at the rate or rates to be approved by unanimous approval of the owner or owners of each parcel or parcels to be annexed to the special tax district and for apportionment and collection of the special taxes in the manner specified in the resolution of formation. No further ordinance shall be required even though no parcels may then have annexed to the special tax district.

Notwithstanding the provisions of Section 53359 of the Act and Section 43.10.11 of this Article, the City may bring an action to determine the validity of any special taxes levied pursuant to this, Article and authorized pursuant to the procedures set forth in this Section 43.10.17 pursuant to Chapter 9 (commencing with Section 860) of Division 5 of Title 10 of Part 2 of the Code of Civil Procedure. Notwithstanding Section 53359 of the Act and Section 43.10.11 of this Article, if an action is brought by an interested person pursuant to Section 863 of the Code of Civil Procedure to determine the validity of any special taxes levied against a parcel pursuant to this Article and authorized pursuant to the procedures set forth in this section, the action shall be brought pursuant to Chapter 9 (commencing with Section 860) of Division 5 of Title 10 of Part 2 of the Code of Civil Procedure, but shall, notwithstanding the time limits specified in Section 860 of the Code of Civil Procedure, be commenced within 15 days after the date on which the notice of special tax lien is recorded against the parcel. Any appeal from a judgment in any action or proceeding described in this subdivision shall be commenced within 30 days after entry of judgment.

(d) With respect to a, special tax district formed pursuant to the alternate and independent procedure set forth in this Section 43.10.17, nothing in this Section shall prohibit the City from obtaining the approval of the qualified electors with respect to a particular parcel or parcels as to, the annexation of such parcels to the special tax district, the appropriations limit for the special tax district, the applicable rate, method of apportionment and manner of collection of special tax and the authorization to incur bonded indebtedness for the special tax district pursuant to any other procedure authorized by the Act.

(Ord. 216-09, File No. 090938, App. 10/29/2009)