SEC. 425.4. THE VAN NESS & MARKET COMMUNITY FACILITIES FEE

(a) There is hereby established a separate fund set aside for a special purpose entitled the Van Ness & Market Community Facilities Fund (“Fund”). All monies collected by the Development Fee Collection Unit at DBI pursuant to this Section 425 shall be deposited in a special fund maintained by the Controller. The receipts in the Fund are to be used solely to fund community facilities subject to the conditions of this Section 425 et seq.

(b) Expenditures from the Fund shall be administered by the Mayor’s Office of Housing and Community Development, or its successor. The Mayor’s Office of Housing and Community Development or its successor shall have the authority to prescribe rules and regulations governing the Fund.

(1) All monies deposited in the Fund shall be used to design, engineer, and develop community facilities as described in the Nexus Study, including cultural/arts facilities, social welfare facilities, and community health facilities, in the Market and Octavia Plan Area or within 1,250 feet of the Plan Area.

(2) Funds may be used for administration and accounting of fund assets, for additional studies related to community facilities identified in the Market & Octavia Area Plan or Market & Octavia Area Plan Implementation Document, or by the Interagency Plan Implementation Committee or the Market & Octavia Citizens Advisory Committee, and to defend the Van Ness & Market Community Facilities Fee against legal challenge, including the legal costs and attorney’s fees incurred in the defense. Administration of this fund includes time and materials associated with reporting requirements, facilitating any necessary or required public meetings aside from Planning Commission hearings, and maintenance of the fund. Monies from the Fund may be used by the Planning Commission to commission economic analyses for the purpose of revising the fee, and/or to complete an updated nexus study to demonstrate the relationship between development and the need for public facilities and services if this is deemed necessary. Monies used for the purposes consistent with this subsection 425.4(b)(2) shall not exceed five percent of the total fees collected. All interest earned on this account shall be credited to the Van Ness & Market Community Facilities Fund.

(3) The Planning Department shall report quarterly to the Planning Commission on the current status of the fund, as well as annually as part of the Annual Progress Reports required by Administrative Code Section 36.4.

(4) All funds are justified and supported by the Nexus Study, adopted as part of the Market & Octavia Area Plan Amendments (Ordinance No. 125-20, on file with the Clerk of the Board of Supervisors in File No. 200557) and corresponding Planning Code Amendments (Ordinance No. 126-20 on file with the Clerk of the Board of Supervisors

in File No. 200559). Implementation of the Fee and Fund shall be monitored according to the Market and Octavia Area Plan Monitoring Program required by Planning Code Section 341. (Added by Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020)

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