SEC. 425.2. APPLICATION OF FEES.

(a) Applicable Projects. Except as provided under Section 406(k) of this Code, the Van Ness & Market Community Facilities Fee is applicable to any development project within the Van Ness & Market Residential Special Use District, described in Section 249.33 of this Code, that:

• (1) Includes new construction, or an addition of space, in excess of 800 gross square feet of residential use; or

(2) Converts 800 gross square feet or more of existing structure(s) from non-residential to residential use.

• (b) Fee Calculation. For applicable projects, the fee is $1.16 per net additional gross square foot of residential use or gross square foot of space converted from non-residential to residential use.

(c) Option for In-Kind Provision of Community Improvements and Fee Credits. Project sponsors may propose to provide community improvements directly to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a partial or total fee waiver for the Van Ness & Market Community Facilities Fund from the Planning Commission, subject to the following rules and requirements:

(1) Approval Criteria. The City shall not enter into an In-Kind Improvements Agreement unless the proposed inkind improvements meet an identified community need for cultural/arts facilities, social welfare facilities, or community health facilities, as described in the Nexus Study. In addition, the City may reject in-kind improvements if they are not consistent with the priorities identified in the Market & Octavia Area Plan; the priorities identified by the Interagency Plan Implementation Committee (see Section 36 of the Administrative Code), or the Market & Octavia Citizens Advisory Committee; or other prioritization processes related to the Market & Octavia Area Plan community improvements programming. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of an In-Kind Improvements Agreement.

(2) Valuation, Content, Approval Process, and Administrative Costs. The valuation, content, approval process, and administrative costs shall be undertaken pursuant to the requirements of subsections 421.3(d)(2) through 421.3(d) (5).

(d) Timing of Fee Payments. The fee shall be due and payable to the Development Fee Collection Unit at DBI consistent with the timing set forth in Section 107A.13.3 of the San Francisco Building Code.

(e) Waiver or Reduction of Fees. Development projects may be eligible for a waiver or reduction of impact fees, pursuant to Section 406.

(Added by Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020; amended by Ord. 188-25, File No. 250680, App. 10/6/2025, Eff. 11/6/2025; Ord. 196-25, File No. 250657, App. 10/24/2025, Eff. 11/24/2025) AMENDMENT HISTORY

Division (a) amended; Ord. 188-25, Eff. 11/6/2025. Division (d) amended; Ord. 196-25, Eff. 11/24/2025.