Article 4 — DEVELOPMENT IMPACT FEES AND PROJECT REQUIREMENTS

In addition to the specific definitions set forth in Section 102 and elsewhere in this Article 4, the following definitions shall govern interpretation of this Article:

(Amended by Ord. 63-20; Ord. 210-21; see Sec. 401 history note.)

A

“Affordable Price.” The price at which the Owned Unit would be Affordable to Qualifying Households. (Added by Ord. 258-24; see Sec. 401 history note.)

“Affordable Unit” or “Affordable Housing Unit.” A unit that is Affordable to Qualifying Households under Section 415 et seq .

(Amended by Ord. 210-21; Ord. 258-24; see Sec. 401 history note.)

"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.

(Amended by Ord. 210-21; see Sec. 401 history note.)

“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:

(Amended by Ord. 164-15; Ord. 210-21 ; see Sec. 401 history note.)

“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:

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. (Amended by Ord. 164-15; Ord. 210-21; see Sec. 401 history note.)

"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. (Amended by Ord. 210-21; see Sec. 401 history note.)

"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. (Added by Ord. 200-15 and Ord. 222-15 ; see Sec. 401 history note.)

“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.

(Amended by Ord. 210-21; see Sec. 401 history note.)

“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. (Amended by Ord. 210-21; see Sec. 401 history note.)

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.

(Added by Ord. 124-25; see Sec. 401 history note.)

“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.

(Amended by Ord. 50-15; Ord. 188-15; Ord. 202-18; Ord. 296-18; see Sec. 401 history note.)

Designated Child Care Unit. As defined in Section 102.

(Added by Ord. 2-16; amended by Ord. 7-19 ; see Sec. 401 history note.)

"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.

(Added by Ord. 200-15 and Ord. 222-15; amended by Ord. 188-25; see Sec. 401 history note.)

"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.

(Amended by Ord. 296-18; see Sec. 401 history note.)

"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.

(Amended by Ord. 193-23; Ord. 188-25; see Sec. 401 history note.)

"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.

(Amended by Ord. 52-15; Ord. 188-15; see Sec. 401 history note.)

"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.

(Amended by Ord. 52-15; see Sec. 401 history note.)

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.

(Added by Ord. 200-15 and Ord. 222-15 ; see Sec. 401 history note.)

"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.

(Amended by Ord. 164-15; Ord. 202-18; see Sec. 401 history note.)

"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.

(Amended by Ord. 164-15; see Sec. 401 history note.)

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

“Management, Information and Professional Services (MIPS).” An economic activity category under the TIDF that includes, but is not limited to, Office Uses; Health Service uses; Business Service uses; Integrated PDR; and Small Enterprise Workspaces.

(Amended by Ord. 202-18; Ord. 63-20; see Sec. 401 history note.)

"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.

(Amended by Ord. 126-20; see Sec. 401 history note.)

“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.

(Amended by Ord. 83-17; see Sec. 401 history note.)

"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:

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. (Amended by Ord. 164-15; Ord. 210-21; see Sec. 401 history note.)

“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:

(Amended by Ord. 164-15; Ord. 210-21 ; see Sec. 401 history note.)

“Mayor’s Office of Housing” or “MOH.” The Mayor’s Office of Housing and Community Development or its successor.

(Amended by Ord. 210-21; see Sec. 401 history note.)

“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.

(Amended by Ord. 202-18; see Sec. 401 history note.)

"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.

(Amended by Ord. 210-21; see Sec. 401 history note.)

“MOHCD.” The Mayor’s Office of Housing and Community Development, or its successor.

(Added by Ord. 210-21; see Sec. 401 history note.)

"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.

(Amended by Ord. 210-21; see Sec. 401 history note.)

“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.

(Amended by Ord. 210-21; see Sec. 401 history note.)

“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. An Owned Unit shall not be Group Housing, as defined in Section 102. (Amended by Ord. 210-21; Ord. 13-26; see Sec. 401 history note.)

"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.

(Amended by Ord. 202-18; see Sec. 401 history note.)

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.

(Amended by Ord. 210-21; see Sec. 401 history note.)

"Program" or "Inclusionary Housing Program." The Inclusionary Affordable Housing Program as detailed in Sections 415-417.

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. (Added by Ord. 258-24; see Sec. 401 history note.)

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.

(Amended by Ord. 210-21; see Sec. 401 history note.)

“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.

(Amended by Ord. 202-18; Ord. 124-25; see Sec. 401 history note.)

"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.

(Amended by Ord. 202-18; see Sec. 401 history note.)

"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.

This definition was adopted by the Board of Supervisors in Motion M13-097 and may only be amended under Charter Section 16.110(h)(1)(B)(iv).

(Amended by Ord. 188-15; see Sec. 401 history note.)

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.

(Added by Ord. 2-16 ; see Sec. 401 history note.)

"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.

U

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. 6213 , 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; Ord. 13-26, File No. 251099, App. 2/13/2026, Eff. 3/16/2026)

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).

(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.

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.

crease 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 preschoolage 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.

r 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.

(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.

f 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

Division (a) amended; Ord. 247-12 , Eff. 1/17/2013. Division (d) added; Ord. 63-20, Eff. 5/25/2020. Divisions (b), (b) (1), and (d) amended; divisions (e)-(e)(4)(D) added; Ord. 193-23, Eff. 10/16/2023. Divisions (d) and (e) amended; Ord. 196-25, Eff. 11/24/2025.

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);

• 1 10 The Market and Octavia Community Improvements Fund (Section 421);

• 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);

• 14 Transit Center District Open Space Impact Fee and Fund (Section 424.6) and Transportation and Street Improvement Impact Fee (Section 424.7);

• 15 Van Ness and Market Community Facilities Fee and Fund (Section 425);

• 16 Open Space requirements (Sections 426 and 427);

• 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. 20123, Eff. 11/12/2023. First undesignated paragraph amended; Ord. 196-25, Eff. 11/24/2025. CODIFICATION NOTE

1. Ord. 187-23 and Ord. 201-23 added the subsection designations 10-21 without parentheses.

(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

Section header and divisions (a) and (b) amended; Ord. 50-15 , Eff. 5/24/2015.

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)

(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 NonResidential 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.

(5) This waiver clause shall not be applied to units built as part of a developer’s efforts to meet the requirements of the Inclusionary Affordable Housing Program, Sections 415 or 419 of this 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.

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

r 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 agreedupon 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).

(6) Relationship to Other Planning Code Sections. The waiver in this subsection 406(j) may be combined with any other reduction or waiver of fees or development impact requirements applicable to the project, as provided in this Article 4.

(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.

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)

(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.

(4) Except for the release of the lien recording fee authorized by Administrative Code Section 10.237, all sums collected by the Tax Collector under this Section shall be held in trust by the Treasurer and distributed as provided in Section 411.6 of this Code.

(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.

(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).

g 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

Section header and divisions (a) and (b) amended; Ord. 263-13, Eff. 12/27/2013. Division (a) amended; Ord. 50-15 , Eff. 5/24/2015. Division (a) amended; Ord. 188-15 , Eff. 12/4/2015. Divisions (a) and (b) amended; Ord. 251-19, Eff. 12/16/2019. Division (b) amended; Ord. 193-23, Eff. 10/16/2023.

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.

(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by 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) AMENDMENT HISTORY

Section amended; Ord. 200-15 , Eff. 12/25/2015 and Ord. 222-15 , Eff. 1/17/2016. [TRANSIT IMPACT DEVELOPMENT FEE]

(a) Sections 411.1 through 411.9, hereafter referred to as Section 411.1 et seq. , set forth the requirements and procedures for the TIDF. The effective date of these requirements shall be the date the requirements were originally effective or were subsequently modified, whichever applies.

(b) Partial Suspension of Section 411 et seq . In accordance with Planning Code Section 411A.3(e), the provisions of Section 411A are intended, with certain exceptions, to supersede the provisions of Section 411 et seq. , as to new development in the City as of the effective date of Section 411A. Accordingly, Section 411A.3(e) suspends, with certain exceptions, the operation of Section 411 et seq. , and states the circumstances under which such suspension shall be lifted.

(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; 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)

AMENDMENT HISTORY

Section reference amended; Ord. 247-12 , Eff. 1/17/2013. Former section designated as division (a); division (b) added; Ord. 200-15 , Eff. 12/25/2015 and Ord. 222-15 , Eff. 1/17/2016.

Editor's Note:

Former Administrative Code Ch. 38 ("Transit Impact Development Fee") was substantially amended and redesignated as this Sec. 411 through Sec. 411.8 by Ord. 108-10, App. 5/25/2010. See Administrative Code Ch. 38, Secs. 38.1 through 38.45, for the legislative history of Code provisions pertaining to the TIDF prior to Ord. 108-10.

Sections 411A.1 through 411A.8 (hereafter referred to collectively as "Section 411A") set forth the requirements and procedures for the Transportation Sustainability Fee ("TSF").

(Added by Ord. 200-15, File No. 150790, App. 11/25/2015, Eff. 12/25/2015 and Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016)

(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 nonresidential, 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.

h 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.

(Added by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015 and Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016; amended by Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023) AMENDMENT HISTORY

Former divisions (i)-(i)(5) deleted; new division (i) added; Ord. 193-23, Eff. 10/16/2023. CODIFICATION NOTE

1. The file number is blank in Ord. 222-15, but is set forth here as shown in Ord. 200-15.

See Section 401 of this Article 4 for definitions of terms applicable to this Section 411A. In addition, the following abbreviations are used throughout Section 411A: TIDF (Transit Impact Development Fee); TSF (Transportation Sustainability Fee).

(Added by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015 and Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016)

(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.

(5) Affordable Housing Projects. Affordable housing, pursuant to the provisions of Planning Code Section 406(b), other than that required by Planning Code Sections 415 or 419 et seq. , or any units that trigger a Density Bonus under California Government Code Sections 65915-65918.

(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.

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.

(d) Application of the TSF to Projects in the Approval Process at the Effective Date of Section 411A. The TSF shall apply to Development Projects that are in the approval process at the effective date of Section 411A, except as modified below:

(1) Projects that have a Development Application approved before the effective date of this Section shall not be subject to the TSF, but shall be subject to the TIDF at the rate applicable pursuant to Planning Code Sections 411.3(e) and 409, as well as any other applicable fees.

(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.

(B) The Non-residential or PDR portion of any project shall be subject to the TSF but pay the applicable TIDF rate pursuant to Planning Code Sections 411.3(e) and 409, 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 Nonresidential or PDR TSF rate, as well as any other applicable fees.

(e) Effect of TSF on TIDF and Development Subject to TIDF.

(1) The provisions of this Section 411A are intended to supersede the provisions of Section 411 et seq . as to new development in the City as of the effective date of Section 411A, except as stated below. The provisions of Section 411 et seq . are hereby suspended, with the following exceptions:

(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 .

(B) Section 411 et seq . shall remain operative and effective with respect to Development Projects that are in the approval process as of the effective date of Section 411A, and for which the TIDF is imposed as set forth in Section 411A.3(d).

(C) Section 411 et seq . shall remain operative and effective with respect to imposition and collection of the TIDF for any new development for which a Development Application was approved prior to the effective date of Section 411A, and for which TIDF has not been paid.

(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. (Added by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015 and Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016; amended by Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019; Ord. 19625, File No. 250657, App. 10/24/2025, Eff. 11/24/2025)

AMENDMENT HISTORY

Divisions (d)(1), (d)(2), (d)(2)(B), and (d)(3) amended; Ord. 296-18, Eff. 1/12/2019. Division (c) amended; Ord. 19625, Eff. 11/24/2025.

• Editor's Note:

The phrase "as of the effective date of this Ordinance" was added to this section by Ord. 222-15 , eff. 1/17/2016.

(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).

(Added by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015 and Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016)

(a) Development Projects subject to the TSF shall pay the following fees, as adjusted annually in accordance with Planning Code Section 409(b).

Table 411A.5. TSF Schedule

(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 and Ord. 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

Table 411A.5 amended; Ord. 138-18, Oper. 7/21/2018 and 1/12/2019. Division (a) designated; division (b) added; Ord. 126-20, Eff. 8/31/2020.

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

Within the Rincon Hill Community Improvements Program Area, per Planning Code Section 418 and the Visitacion Valley Fee Area, per Planning Code Section 420, expenditures shall be allocated as follows:

Table 411A.6B. TSF Expenditure Program in Rincon Hill and Visitacion Valley

(Added by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015 and Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016; amended by Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023) AMENDMENT HISTORY

Undesignated introductory paragraph amended; Ord. 193-23, Eff. 10/16/2023.

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.

(Added by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015 and Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016)

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.

(Added by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015 and Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016)

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 (Added by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015) CODIFICATION NOTE

1. Blank in Ord. 200-15 ; ordinance number inserted by the codifier. [DOWNTOWN PARK FEE]

Sections 412.1 through 412.6, hereafter referred to as Section 412.1 et seq. , set forth the requirements and procedures for the Downtown Park Fee. The effective date of these requirements shall be either September 17, 1985, which is the date that the requirements originally became effective, or the date a subsequent modification, if any, became effective.

(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 13-26, File No. 251099, App. 2/13/2026, Eff. 3/16/2026)

AMENDMENT HISTORY Section amended; Ord. 13-26, Eff. 3/16/2026.

Sections 413.1 through 413.11, hereafter referred to as Section 413.1 et seq. , set forth the requirements and procedures for the Jobs-Housing Linkage Program. The effective date of these requirements shall be either March 28, 1996, which is the date that the requirements originally became effective, or the date a subsequent modification, if any, became effective.

(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)

Sections 414.1 through 414.15 (hereafter referred to as Section 414.1 et seq .) set forth the Child Care requirements for Office and Hotel Development Projects. The effective date of these requirements shall be either September 6, 1985, which is the date that the requirements originally became effective, or the date a subsequent modification, if any, became effective.

(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)

(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. (Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016; amended by Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023)

AMENDMENT HISTORY Division (b) amended; Ord. 193-23, Eff. 10/16/2023.

See Section 401 of this Article for definitions applicable to Section 414A et seq . (Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016)

(a) Application.

• (1) Sections 414A.1 et seq. shall apply to any residential development project that results in:

• (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.

• (2) Sections 414A.1 et seq. shall not apply to

• (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.

(Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016; amended by Ord. 7-19, File No. 180917, App. 1/25/2019, Eff. 2/25/2019)

AMENDMENT HISTORY

Divisions (a)(1)-(a)(1)(B), (a)(2), and (a)(2)(D)-(E) amended; Ord. 7-19, Eff. 2/25/2019.

(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.

(f) Waiver or Reduction. Development projects may be eligible for a waiver or reduction of impact fees, per Section 406 of this Article 4, including Section 406(d), in the event a project located in an Area Plan may be assessed a child care fee.

(Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016; amended by Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020)

AMENDMENT HISTORY Division (c) amended; Ord. 63-20, Eff. 5/25/2020.

• (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

TABLE 414A.5B

FEE SCHEDULE FOR REPLACEMENT OF USE OR CHANGE OF USE

(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).

(Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016)

(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: TABLE 414A.6A

NUMBER OF DESIGNATED CHILD CARE 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 Statelicensed 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.

(Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016, Oper. 7/19/2016; amended by Ord. 7-19, File No. 180917, App. 1/25/2019, Eff. 2/25/2019)

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.

All monies contributed pursuant to the provisions of Section 414A shall be deposited in the Child Care Capital Fund established by Section 414.14 of this Code.

(Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016)

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.

(Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016) [INCLUSIONARY AFFORDABLE HOUSING PROGRAM]

(See Interpretations related to this Section.)

Sections 415.1 through 415.11, hereafter Section 415.1 et seq ., set forth the requirements and procedures for the Inclusionary Affordable Housing Program (“Program” or “Inclusionary Housing Program”).

The Planning Department and MOHCD shall periodically publish a Procedures Manual containing procedures for monitoring and enforcement of the policies and procedures for implementation of this Program. The Procedures Manual must be made available on the Department’s web site. The Procedures Manual shall not be amended, except for an annual update of the affordability housing guidelines, which reflect updated income limits, prices, and rents, without approval of the Commission or as otherwise specified herein.

The Procedures Manual in effect at the time of initial purchase or initial rental of an Affordable Unit shall govern the regulation of that unit until it is sold or re-rented unless an owner or current tenant chooses to be governed by all of the more up-to-date provisions of the then-current Procedures Manual. In that case, the owner or tenant must agree to be governed by the totality of the new regulations – an owner or tenant may not pick some provisions from the

Procedures Manual in effect at the time of initial purchase or initial rental and some in effect in the then-current Procedures Manual. If the owner or tenant chooses to be governed by the then-current Procedures Manual he or she shall sign an agreement with the City to that effect, and the Department and MOHCD shall apply all of the rules and regulations in the then-current Procedures Manual to the unit.

(Added as Sec. 315 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. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021)

AMENDMENT HISTORY

Second and third undesignated paragraphs amended; Ord. 210-21, Eff. 12/20/2021.

(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)

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.”) (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)

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.

(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; amended by Ord. 68-24, File No. 240070, App. 4/4/2024, Eff. 5/5/2024)

AMENDMENT HISTORY Definition of “Finally Approved” amended; Ord. 68-24, Eff. 5/5/2024.

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.

(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)

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%.

(c) Off-Site Affordable Housing Alternative. If a project sponsor of a Pipeline Project elected to provide off-site units pursuant to Section 415.5(g), the development project shall be entitled to a modification of the requirements in Section 415.7(a) as follows:

(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).

(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)

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

1. So in Ord. 187-23 and 201-23.

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.

(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)

CODIFICATION NOTE

1. So in Ord. 187-23 and 201-23.

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)

New Ordinance Notice

Publisher's Note: This section has been ADDED by new legislation (Ord. 201-23 , approved 10/12/2023, effective 11/12/2023, oper. 11/1/2023). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.

In order to encourage construction of residential and live/work development projects subject to the Inclusionary Affordable Housing Program, Planning Code Sections 415.1 et seq ,1 this Section 415B shall apply to housing and live/work development projects that are Finally Approved, as defined in Planning Code Section 415A.2, between November 1, 2023 and November 1, 2026, provided that such projects receive a First Construction Document within 30 months from Final Approval. 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. Housing development projects that fail to obtain a First Construction Document within 30 months of Final Approval shall be subject to the requirements of Section 415.1 et seq. in effect on the date a First Construction Document is finally obtained. Except as specifically set forth herein, all other Inclusionary Affordable Housing requirements in Sections 415.1 et seq 1 shall continue to apply. (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)

CODIFICATION NOTE

1. So in Ord. 187-23 and 201-23.

If a project sponsor elects to pay the affordable housing fee under Section 415.5, the project shall comply the requirements set forth in Section 415.6(b)(1), except as follows:

(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. (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)

If a project sponsor elects to provide on-site Affordable Units pursuant to Section 415.5(g), the housing development shall be subject to the following required percentages rather than the percentage of units set forth in Section 415.6(a): (a) For any housing development consisting of 25 or more units, the number of Affordable Units constructed onsite 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.

(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)

AMENDMENT HISTORY

Section re-added; undesignated paragraph amended; Ord. 201-23, Eff. 11/12/2023.

If a project sponsor elects to provide off-site units to satisfy the requirements of Section 415.1 et seq. pursuant to 415.5(g)(1)(B), the housing development project shall be subject to the requirements of Section 415.7(a), except as follows:

(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.

(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)

Notwithstanding any other provision of the Code, during the period that this Section 415B applies:

(a) the amount of the inclusionary housing fee shall be adjusted consistent with the factors set forth in Sections 415.5(b)(2) and 415.5(b)(3), but in no case shall the fee be increased by more than 2% annually; and (b) the provisions of 415.6(a)(5) shall not apply.

(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)

This section 415B shall expire by operation of law on November 1, 2026, unless extended by an ordinance on or effective before that date. Upon expiration of this Section 415B, 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)

[AFFORDABLE HOUSING: MARKET AND OCTAVIA AREA PLAN;

UPPER MARKET NEIGHBORHOOD COMMERCIAL DISTRICT]

Sections 416.1 through 416.5, hereafter referred to as Section 416.1 et seq. , set forth the requirements and procedures for the Market and Octavia Area Plan and Upper Market Neighborhood Commercial District Affordable Housing Fee. The effective date of these requirements shall be either May 30, 2008, which is the date that the requirements originally became effective, or the date a subsequent modification, if any, became effective. (Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 2511, File No. 101464, App. 2/24/2011; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021)

(Formerly Section 315.4(a)(1)(ii)).

Sections 417.1 through 417.5, hereafter referred to as Section 417.1 et seq. , set forth the requirements and procedures for the Eastern Neighborhoods Area Plan Alternate Affordable Housing Fee. The effective date of these requirements shall be either January 19, 2009, which is the date that the requirements originally became effective, or the date a subsequent modification, if any, became effective.

(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 21021, File No. 210868, App. 11/19/2021, Eff. 12/20/2021)

Sections 418.1 through 418.7, hereafter referred to as Section 418.1 et seq. , set forth the requirements and procedures for the Rincon Hill Community Improvements Fund and the SOMA Community Stabilization Fund. The effective date of these requirements is either August 19, 2005, which is the date that the requirements originally became effective, or the date a subsequent modification, if any, became effective.

(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 270-10, File No. 100917, App. 11/5/2010)

Sections 419.1 through 419.6, hereafter referred to as Section 419.1 et seq. , set forth the housing requirements for residential development projects in the UMU Zoning Districts of the Eastern Neighborhoods and the Land Dedication Alternative in the UMU District, Mission NCT District, and Central SoMa Special Use District. The effective date of these requirements shall be either December 19, 2008, which is the date that the requirements originally became effective, or the date a subsequent modification, if any, became effective.

(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. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021) AMENDMENT HISTORY

Section header and section amended; Ord. 296-18, Eff. 1/12/2019. Section affirmed; Ord. 210-21, Eff. 12/20/2021.

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.

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.

(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 56-13 , File No. 130062, App. 3/28/2013, Eff. 4/27/2013; Ord. 188-15 , File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021)

AMENDMENT HISTORY

Former divisions A. through C. redesignated as (a) through (c); division (c) amended; Ord. 56-13 , Eff. 4/27/2013. Division (a) amended; Ord. 188-15 , Eff. 12/4/2015. Divisions (c)-(c)(1) amended; Ord. 210-21, Eff. 12/20/2021.

Sections 420.1 through 420.6, hereafter referred to as Section 420.1 et seq. , set forth the requirements and procedures for the Visitation Valley Community Facilities and Infrastructure Fee and Fund. The effective date of these requirements shall be either November 18, 2005, which is the date that the requirements originally became effective, or the date a subsequent modification, if any, became effective.

(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 3-11, File No. 101247, App. 1/7/2011; Ord. 55-11, File No. 101523, App. 3/23/2011)

Sections 421.1 through 421.7, hereafter referred to as Section 421.1 et seq. , set forth the requirements and procedures for the Market and Octavia Community Improvements Fund. The effective date of these requirements shall be either April 3, 2008, the date that the requirements originally became effective, or the date a subsequent modification, if any, became effective.

(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)

Sections 422.1 through 422.5, hereafter referred to as Section 422.1 et seq. , set forth the requirements and procedures for the Balboa Park Community Improvements Fund. The effective date of these requirements shall be either April 17, 2009, which is the date that the requirements originally became effective, or the date a subsequent modification, if any, became effective.

(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)

Sections 423.1 through 423.5 set forth the requirements and procedures for the Eastern Neighborhoods Impact Fee and Public Benefits Fund. The effective date of these requirements shall be either December 19, 2008, which is the date that these requirements originally became effective, or the date a subsequent modification, if any, became effective.

(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)

Sections 424.1 through 424.5, hereafter referred to as Section 424.1 et seq. , set forth the requirements and procedures for the Van Ness and Market Affordable Housing and Neighborhood Infrastructure Program. The effective date of these requirements shall be either May 30, 2008, which is the date that the requirements original became effective, or the date a subsequent modification, if any, became effective.

(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; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021) AMENDMENT HISTORY

Section header amended; Ord. 136-21, Eff. 9/4/2021. Section affirmed; Ord. 210-21, Eff. 12/20/2021.

Sections 425.1 through 425.4 set forth the requirements and procedures for the Van Ness & Market Community Facilities Fee and Fund.

(Added by Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020)

(Former Sec. 425 added by Ord. 108-10, File No. 091275, App. 5/25/2010; repealed by Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019)

(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.

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

1. So in Ord. 122-23 and Ord. 159-23.

(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.

(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 182-12 , File No. 120665, App. 8/8/2012, Eff. 9/7/2012; 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)

AMENDMENT HISTORY

Section header amended; formerly undesignated paragraph amended and designated as division (a); division (b) added; Ord. 182-12, Eff. 9/7/2012. Section header and division (a) amended; Ord. 296-18, Eff. 1/12/2019. Section header and division (b) amended; Ord. 47-21, Eff. 5/17/2021.

[DIVISADERO STREET NCT AFFORDABLE HOUSING FEE]

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.

Sections 428.1 through 428.5, hereafter referred to as Sections 428.1 et seq. , set forth the requirements and procedures for the Divisadero Street Neighborhood Commercial Transit District Affordable Housing Fee. (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)

(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]

(The effective date of these requirements shall be either September 17, 1985, the date that they originally became effective, or the date a subsequent modification, if any, became effective.)

(Formerly codified as Sec. 149 (see that section for prior legislative history); amended and redesignated by Ord. 10810, File No. 091275, App. 5/25/2010; amended by Ord. 62-12 , File No. 110853, App. 4/19/2012, Eff. 5/19/2012; Ord. 188-15 , File No. 150871, App. 11/4/2015, Eff. 12/4/2015)

AMENDMENT HISTORY

Section amended in its entirety and divided into Secs. 429.1 through 429.7; Ord. 62-12 , Eff. 5/19/2012. Section header amended; Ord. 188-15 , Eff. 12/4/2015.

(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.

(3) The sponsor shall pay the in lieu fee for all Class 2 bicycle parking spaces for which a variance or waiver is sought and granted by the Zoning Administrator under Sections 305 and 307(k) of this Code.

(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.

(Added by Ord. 183-13 , File No. 130528, App. 8/7/2013, Eff. 9/6/2013; amended by 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) (Former Sec. 430 added by Ord. 55-11, File No. 101523, App. 3/23/2011; redesignated as Sec. 431 by Ord. 183-13 , File No. 130528, App. 8/7/2013, Eff. 9/6/2013)

AMENDMENT HISTORY

Division (d) amended; Ord. 63-20, Eff. 5/25/2020. Division (b) amended; Ord. 193-23, Eff. 10/16/2023.

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.

(Added as Sec. 430 by Ord. 55-11, File No. 101523, App. 3/23/2011; redesignated by Ord. 183-13 , File No. 130528, App. 8/7/2013, Eff. 9/6/2013)

[CENTRAL SOMA COMMUNITY SERVICES FACILITIES FEE AND FUND]

Sections 432.1 through 432.4 set forth the requirements and procedures for the Central SoMa Community Services Facilities Fee and Fund.

(Added by Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019)

Sections 433.1 through 433.4 set forth the requirements and procedures for the Central SoMa Infrastructure Impact Fee and Fund.

(Added by Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019)

(a) Purpose. New construction that increases the density of the South of Market neighborhood will require the City to invest in substantial new infrastructure and services. By increasing height limits, removing restrictive zoning, relieving density and floor area ratio limitations, and making other regulatory changes, the Central SoMa Plan substantially increases the development potential of properties in the area. This new development potential will create a significant demand for infrastructure, improvements, and services as described in the Central SoMa Implementation Program Document, including but not limited to transit investments, street and environmental improvements, and development and maintenance of parks and recreation centers. The Central SoMa Community Facilities District (“CFD” or “Special Tax District”) shall be a special tax district formed pursuant to Administrative Code Chapter 43, Article X to address these needs created by projects that choose to exceed the Prevailing Height and Density Limits.

(b) Applicability. This Section 434 shall apply to a development on any lot in the Central SoMa Special Use District where all of the following apply:

(1) The project includes new construction or the net addition of more than 25,000 gross square feet, as determined by the Planning Director or their designee pursuant to the Rate and Method of Apportionment for the Central SoMa Community Facilities District;

(2) The proposed project exceeds the applicable Prevailing Building Height and Density controls established in Section 249.78(d)(1)(B); and,

(3) The project includes

(A) new non-residential development on any lot that is either wholly or partially in Central SoMa Fee Tier B or C, as defined in Section 423.2; or

(B) new residential condominium development for which any units have been sold on any lot that is either wholly or partially in Central SoMa Fee Tier C, as defined in Section 423.2.

(c) Requirement. Except as specified herein, any applicable development project shall participate in the CFD to be established by the Board of Supervisors pursuant to Article X of Chapter 43 of the Administrative Code (the “Special Tax Financing Law”) and successfully annex the lot or lots of the subject development into the CFD prior to the issuance of the first Certificate of Occupancy for the development. Any project lot or lots that contain areas that fall under more than one Central SoMa Fee Tier shall be wholly annexed into the CFD at the level of the highest applicable Fee Tier. Any project lot or lots that receive a condominium map pursuant to the Subdivision Code shall wholly annex the lot or lots of the subject development into the CFD prior to the sale of the first condominium on the site. For any lot to which the requirements of this Section 434 apply, 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 first Certificate of Occupancy for the development, except that for condominium projects, the Zoning Administrator shall approve and order the recordation of such Notice prior to the sale of the first condominium unit. This Notice shall state the requirements and provisions of subsections 434(b)-(c) above.

(d) Special Taxes. The Board of Supervisors will be authorized to levy a special tax on properties that annex into the Community Facilities District to finance facilities and services described in the proceedings for the Community Facilities District and the Central SoMa Implementation Program Document submitted by the Planning Department on November 5, 2018 in Board of Supervisors File No. 180184.

(e) Special tax revenues associated with the CFD should be expended as described in the Central SoMa Plan Implementation Program Document submitted by the Planning Department on November 5, 2018 in Board of Supervisors File No. 180184, except that: (1) $15 million should be allocated to restoration of the Old United States Mint, San Francisco Landmark No. 236, and $160 million should be allocated to regional transit capacity

enhancement and expansion; and (2) if the Old United States Mint is developed with community-serving spaces that may be leased through a competitive process at below-market rates to organizations associated with Cultural Districts established under Chapter 107 of the Administrative Code, $20 million should be allocated to restoration of the Old United States Mint, and $155 million should be allocated to regional transit capacity enhancement and expansion. (Added by Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019)

[UNION SQUARE PARK, RECREATION, AND OPEN SPACE FEE]

Sections 435.1 through 435.3 hereinafter referred to as Section 435.1 et seq. set forth the requirements and procedures for the Union Square Park, Recreation, and Open Space Fee.

(Added by Ord. 23-19, File No. 180916, App. 2/15/2019, Eff. 3/18/2019; designation ratified by Ord. 72-19, File No. 190030, App. 4/19/2019, Eff. 5/20/2019)

Editor’s Note:

This section was originally designated Sec. 428 when enacted by Ord. 23-19. The section was redesignated by the editor, with approval of the City, to avoid conflicting with previously existing material. Ord. 72-19 reflects and ratifies that redesignation.

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

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

1. So in Ord. 260-25. ARTICLE 5:

[RESERVED]

San Francisco County, California