SEC. 317.2. CONDITIONS OF APPROVAL FOR PROJECTS THAT REQUIRE THE DEMOLITION OF…

(a) Purpose; Implementation. This Section 317.2 is intended to implement and shall be construed consistent with the provisions of California Government Code sections 66300.5 and 66300.6, as they may be amended from time to time. The Planning Commission shall approve, and the Planning Department shall publish on its website, a Replacement Unit Implementation Document (hereafter, the “Implementation Document”) containing procedures, regulations, guidelines, notice formats, and application forms, as deemed necessary to assist the Department in ensuring that the relocation assistance and services in this Section 317.2 are available to displaced tenants, as required, and with implementation, monitoring, and enforcement of the policies and procedures of this Section 317.2. The Department may update the Implementation Document from time to time and shall seek Planning Commission approval for any significant changes. (b) Definitions. In addition to the definitions in California Government Section 66300.5 and Planning Code Sections Section 102 or Section 401, the following terms shall have the following definitions:

“Affordable Housing Cost” is defined in California Health and Safety Code section 50052.5.

“Affordable Rent” is defined in California Health and Safety Code section 50053.

“Comparable Unit” shall mean a Replacement Unit (and for purposes of subsection 317.2(d)(2)(C), a substitute unit) that contains at least the same total number of bedrooms, same total number of full bathrooms, and at least 90 percent of the square footage of the Protected Unit being replaced. However, if one or more single-family homes that qualify as Protected Units are being replaced in a Housing Development Project that consists of two or more units, “Comparable Unit” shall mean either (1) a unit containing the same number of bedrooms if the single-family home contains three or fewer bedrooms, or (2) a unit containing three bedrooms if the single-family home contains four or more bedrooms and a Comparable Unit is not required to have the same or similar square footage or the same number of total rooms.

“Demolition” is defined as “Residential Demolition” in Section 317(b)(2).

“Existing Occupant” shall mean a Tenant of a unit at the time the owner of a unit applied to demolish the unit or recovered possession of the unit in order for the unit to be demolished. A Tenant occupying a unit on the date the project sponsor submitted a Development Application or preliminary application to demolish that unit shall be an Existing Occupant. If there is no Tenant occupying the unit on such date, the prior Tenant shall still qualify as an Existing Occupant for purposes of this Section 317.2 if any of the following circumstances are true as of the date the project sponsor submitted the Development Application or preliminary application: 1) the Tenant vacated the unit within the previous five years pursuant to a Tenant Buyout that did not comply with the applicable provisions of Administrative Code Section 37.9E but where there has been a finding of substantial compliance as described in Planning Code Section 317(d)(8); 2) the Tenant vacated the unit within the previous three years pursuant to a notice to vacate under Administrative Code Section 37.9(a)(8); 3) the Tenant vacated the unit within the previous five years pursuant to a notice to vacate under Administrative Code Section 37.9(a)(13); or 4) the Tenant was required to vacate the unit within the previous five years due to a serious and imminent hazard.

“Housing Development Project” is defined in California Government Code section 65905.5(b)(3).

“Lower Income Household” is defined in California Health and Safety Code section 50079.5.

“Protected Unit” shall mean a Residential Unit, whether authorized or unauthorized, and whether occupied or vacant, that meets any of the following criteria: (1) has been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of Lower or Very Low-Income within the past five years; (2) has been subject

to any form of rent or price control through San Francisco’s valid exercise of its police power within the last five years, including all units subject to the rent increase limitations set forth in Section 37.3 of the Administrative Code; (3) has been rented by a Lower or Very Low-Income Household within the past five years; or (4) was withdrawn from rent or lease in accordance with Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 of the California Government Code) within the past 10 years.

“Replacement Unit” shall mean a Residential Unit that replaces a demolished Protected Unit in a new Housing Development Project and that complies with the requirements of this Section 317.2. The Department shall note the existence of Replacement Units on a publicly-accessible website.

“Tenant” is defined in Administrative Code Section 37.2(t) and shall include any lawful occupants of the unit, as well as any persons who have vacated the unit temporarily while the landlord is carrying out capital improvements or rehabilitation work.

“Very Low Income Household” is defined in California Health and Safety Code section 50105.

(c) No Net Loss of Residential Units. Notwithstanding any other law including local density requirements, a Housing Development Project that will require the demolition of one or more Residential Units, whether authorized or unauthorized, shall include at least as many Residential Units as will be demolished or as existed on the project site within the last five years preceding the date of the Development Application, whichever is greater.

(d) Projects that Require Demolition of Protected Units. Notwithstanding any other law including local density requirements, a development project that will require the demolition of occupied or vacant Protected Units, or that is located on a site where Protected Units were demolished in the five years preceding the date the project sponsor submits a Development Application, shall not be approved unless the project meets all of the following requirements:

(1) Replacement of Protected Units. The project shall replace all existing Protected Units and all Protected Units demolished on or after January 1, 2020 with Comparable Units. Except as otherwise provided in this Section 317.2, for purposes of this subsection (d)(1), the term “replace” shall have the same meaning as provided in Government Code sections 65915(c)(3)(B) and (C) and as further described below. Replacement Units subject to an affordability restriction shall remain affordable for the Life of the Project, as defined in Section 401.

(A) Demolition and Replacement of Units Occupied by Lower-Income Households. Except as provided in subsection 317.2(d)(2)(D), for projects proposing to demolish buildings that include Protected Units that were occupied by Lower-Income Households at the time of the Development Application, the project sponsor shall replace such Protected Units with Comparable Units at an affordable housing cost to persons and families in the same or lower income categories as those households in occupancy or presumed to be in occupancy as described in Section 65915(c)(3)(B)(i). Such units shall be occupied by persons and families in the same or lower income categories as those households in occupancy or presumed to be in occupancy as described in Section 65915(c)(3)(B)(i). Comparable Units in rental projects must be made available at an affordable rent or the prior rental rate, whichever is lower. Housing Development Projects in which 100 percent of the units, exclusive of a manager’s unit or units, are reserved for Lower Income Households, may comply with subsection (d)(1)(A) by providing at least the same total number of units and the total aggregate number of bedrooms as the Protected Units being replaced on the project site.

affordable rent or the prior rental rate, whichever is lower. Housing Development Projects in which 100 percent of the units, exclusive of a manager’s unit or units, are reserved for Lower Income Households, may comply with subsection (d)(1)(A) by providing at least the same total number of units and the total aggregate number of bedrooms as the Protected Units being replaced on the project site.

(B) Demolition and Replacement of Units Occupied by Above Lower-Income Households. For projects proposing to demolish buildings with Protected Units that were occupied by above Lower-Income Households, the project sponsor shall replace those units with Comparable Units. Comparable Units in Rental Projects shall be subject to the rent increase limitations of Chapter 37 of the Administrative Code. Comparable Units in Ownership Projects, as defined by Section 401 of this Code, shall be made available to and occupied by Lower-Income Households. The project sponsor shall consent to such restrictions in a Regulatory Agreement approved by the Planning Department.

(C) Vacant or Demolished Units. If all Protected Units have been vacated or demolished within the five years preceding the Development Application, then the project sponsor shall replace those units with Comparable Units based on the number of Lower-Income Households in occupancy or presumed to be in occupancy at the highpoint in the preceding five years, as described in California Government Code Section 65915(c)(3)(B)(ii). Housing Development

Projects in which 100 percent of the units, exclusive of a manager’s unit or units, are reserved for Lower Income Households, may comply with this subsection (d)(1)(C) by providing at least the same total number of units and the total aggregate number of bedrooms as the Protected Units being replaced on the project site.

(D) Accessibility Requirements. Any demolished Protected Unit that was an accessible unit under California Building Code Chapter 11A shall be replaced with an accessible Comparable Unit.

(E) Inclusionary Requirements. Replacement Units constructed pursuant to this subsection (d)(1) shall be considered in determining whether the Housing Development Project satisfies the requirements of California Government Code Section 65915, or any on-site affordable housing requirements under Section 415 et seq. of this Code.

(F) Non-Housing Development Projects. If a project that proposes to demolish Protected Units is not a Housing Development Project, the project sponsor shall ensure that any Replacement Units are developed prior to or concurrently with the non-housing development project. Such Replacement Units shall be Comparable Units, and may be located on a site other than the non-housing development project site but shall be located within San Francisco and within one mile of the project site. The project sponsor may contract with another entity to develop the required Replacement Units. Any Replacement Units developed as part of a separate project under this subsection (d)(1)(F) shall be in addition to any Replacement or Inclusionary Units required for that separate project; and shall be in addition to any Replacement Units included in the separate project to meet the requirements of this subsection (d)(1)(F) for any other project; and shall not be located within any project that receives a public subsidy or that will become property of the San Francisco Housing Authority. The Implementation Document shall contain guidelines as deemed necessary to assist with implementation, monitoring, and enforcement of this subsection (d)(1)(F).

(G) Exceptions. Consistent with California Government Code Section 66300.6(b)(1)(C), this subsection (d)(1) does not require a Replacement Unit where (i) the project is an industrial use; (ii) the project site is entirely within a zone that does not allow Residential uses; (iii) the zoning applicable to the project site that does not allow Residential uses was adopted prior to January 1, 2022; and (iv) the Protected Units that are or were on the project site are or were nonconforming uses.

(2) Protections for Existing Occupants. A Development Application shall not be approved unless the project sponsor complies with the requirements of subsections (d)(2)(A)-(D), and has provided all Existing Occupants notice of their rights under subsections (d)(2)(A)-(D). The project sponsor shall include a compliant relocation plan with their Development Application. To ensure that Existing Occupants are provided the relocation assistance and services required by this Section 317.2, the Implementation Document shall include minimum standards for notices to be provided informing Existing Occupants of their rights, and a compliant relocation plan, as well as instructions and guidelines on how a project sponsor or a relocation specialist hired by the project sponsor can comply with the requirements in this subsection (d)(2). The Department may impose a fee for the review of a relocation plan.

(A) Right to Remain. Existing Occupants who are Lower-Income Households shall be allowed to occupy their units until three months before the start of construction activities. Existing Occupants who are above Lower-Income Households shall be allowed to occupy their units until six months before the start of construction activities. A project sponsor may allow an Existing Occupant to remain beyond three or six months before the start of construction activities.

seholds shall be allowed to occupy their units until three months before the start of construction activities. Existing Occupants who are above Lower-Income Households shall be allowed to occupy their units until six months before the start of construction activities. A project sponsor may allow an Existing Occupant to remain beyond three or six months before the start of construction activities.

(i) The project sponsor shall provide Existing Occupants, with a copy to the Planning Department and Rent Board, written notice of the planned demolition, the date they must vacate, and their rights under this Section 317.2. The notice shall be provided in writing, by certified mail, at least six months in advance of the date that Existing Occupants must vacate, and shall be in addition to any other notices that may be required by law. This notice shall include the following text in at least 14 point bold face type: “This notice is not an eviction notice. It is not notice that you must vacate the building or that your tenancy is being ended. It is to inform you about your rights under Section 317.2 of the San Francisco Planning Code.”

(ii) The notice in subsection (d)(2)(A)(i) shall be provided in the Required languages, and in languages spoken by a Substantial Number of Limited English Speaking Persons, as those terms are defined in Administrative Code Chapter 91.

(B) Right to Return if Demolition Does Not Proceed. Any Existing Occupants who vacate their units shall be allowed to return at their prior rental rate, as adjusted in accordance with the provisions of Administrative Code Chapter 37, if the demolition does not proceed and the property is returned to the rental market. The project sponsor shall follow any applicable guidelines in the Implementation Document regarding the offer and acceptance of a right to return if demolition does not proceed.

(C) Right to Relocation Assistance. The Department shall ensure that Project sponsors provide relocation assistance to Existing Occupants as follows:

(i) All displaced households regardless of income level shall receive relocation assistance equivalent to the amounts required under Administrative Code Section 37.9A(e).

(ii) When the displaced household is Lower-Income, the project sponsor shall provide the additional relocation assistance as set forth in subparagraphs a., b., or c of this subsection (d)(2)(C). The project sponsor shall continue to provide this additional assistance until they have discharged their obligation to offer the household a permanent Comparable Unit under subsection (d)(2)(D), or until 42 months have elapsed since the displacement occurred, whichever comes first. The Department shall review and verify the adequacy of the project sponsor’s relocation assistance plan before it finally approves the demolition permit, shall assist project sponsors and displaced households to ensure consistent implementation of the plans, and may contract with third-party relocation specialists to assist with these functions.

e the displacement occurred, whichever comes first. The Department shall review and verify the adequacy of the project sponsor’s relocation assistance plan before it finally approves the demolition permit, shall assist project sponsors and displaced households to ensure consistent implementation of the plans, and may contract with third-party relocation specialists to assist with these functions.

a. Substitute Housing. The project sponsor shall secure a substitute unit for the household that is Comparable and is located in San Francisco, commencing on the date that the household would be required to vacate their original unit. The rent shall be not greater than the rent that the household was paying before the displacement. The project sponsor shall follow any applicable procedures in the Implementation Document regarding the offer and acceptance of the substitute unit. If the household accepts the offer of a substitute unit, their tenancy in that unit shall be subject to all applicable provisions of Administrative Code Chapter 37. If the household does not accept the offer of a substitute unit, the project sponsor shall provide relocation assistance under subparagraphs b. or c.

b. Standardized Payment. The project sponsor shall provide the household standardized financial payments to assist with the relocation, commencing three months after the date that the household vacated their original unit. The payments shall occur monthly in an amount equivalent to the difference between the maximum monthly rent for that household and unit type as published by MOHCD, and the San Francisco Housing Authority Payment Standard for that unit size (or the amount that the household is paying for interim housing, whichever is less).

c. Individualized Relocation Process. Consistent with California Government Code Section 66300.6(b)(4)(A), the project sponsor shall provide the household financial payments in the amounts required to be paid by public entities under California Government Code Sections 7260-7277, as amended from time to time. The Department’s Implementation Document shall include procedures and guidelines for project sponsors who wish to provide relocation assistance under this option.

(iii) The Department shall develop procedures for Lower-Income Households to provide the Department and project sponsor confirmation at least once every twelve months that they remain eligible for the additional relocation assistance described in subparagraphs a. or b. of subsection (ii), as applicable, and that they intend to occupy a Comparable Unit under subsection (d)(2)(D) upon completion, as a condition of receiving the additional relocation assistance. Information related to a displaced household’s source of income shall be treated as confidential information.

ey remain eligible for the additional relocation assistance described in subparagraphs a. or b. of subsection (ii), as applicable, and that they intend to occupy a Comparable Unit under subsection (d)(2)(D) upon completion, as a condition of receiving the additional relocation assistance. Information related to a displaced household’s source of income shall be treated as confidential information.

(iv) If paying relocation assistance under subparagraphs a. or b. of subsection (ii) would constitute an undue financial hardship for the project sponsor in light of all of the resources available to them, the project sponsor may file a written request with the Rent Board for a hardship adjustment, on a form provided by the Rent Board and with supporting evidence. The Rent Board, or its designated Administrative Law Judges, may order a payment plan or any other relief they determine is justified following a hearing on the request.

(v) The relocation assistance set forth in this Section 317.2(d)(2)(C) is not intended to affect any assistance the displaced household may be entitled to under federal or state law. If a displaced household is also entitled to receive

relocation assistance under Chapter 37 of the Administrative Code, then the project sponsor may apply the amounts paid under Chapter 37 as a credit against the amounts required under this Section 317.2(d)(2)(C).

(D) Right of First Refusal For Comparable Units. The project sponsor shall offer Comparable Units to Existing Occupants of Protected Units as set forth below. The City shall not issue a Temporary or Final Certificate of Occupancy unless the Planning Department has certified that the project sponsor has complied with these requirements, the applicable notice rules under subsection (E), as well as any offer and acceptance procedures and guidelines set forth in the Department’s Implementation Document.

(i) The project sponsor shall provide above Lower-Income Households a right of first refusal for a Comparable Unit available in the new housing development, or if the development is not a housing development, in a Comparable Unit associated with the new development, provided such development is a rental housing development.

(ii) The project sponsor shall provide Lower-Income Households a right of first refusal for a Comparable Unit available in the new housing development, or if the development is not a housing development, in any required Comparable Units associated with the new development at an affordable rent or an affordable housing cost. To ensure the Comparable Unit is affordable to the Lower Income Household, the project sponsor shall offer the unit either at the Existing Occupant’s prior rental rate (plus any annual rent increases that may have been allowed under Administrative Code Sections 37.3(a)(1)-(2)) or at an Affordable Rent, whichever is lower; or at an Affordable Housing Cost. If a LowerIncome Household has been accepting relocation assistance in the form of a substitute housing unit, their decision not to accept a Comparable Unit under this subsection (ii) shall not affect their right to continue occupying the substitute housing unit. If a Lower-Income Household accepts a Comparable Unit at their prior rental rate which is lower than the Affordable Rent, any annual rent increase shall be governed by Administrative Code Section 37.3(a)(1)-(2) for the duration of the Lower-Income Household’s tenancy. At the conclusion of the tenancy, the Comparable Unit shall be an Affordable Unit subject to the requirements of Section 415 and the Inclusionary Affordable Housing Procedures Manual.

(iii) Consistent with California Government Code Sections 66300.6(b)(4)(B)(i)-(iii), Existing Occupants shall not have a right of first refusal under this subsection (D) to a Comparable Unit in any of the following circumstances: a. a development project that consists of a single residential unit located on a site where a single Protected Unit is being demolished;

b. units in a Housing Development Project in which 100 percent of the units, exclusive of a manager’s unit or units, are reserved for Lower-Income Households, except in the case of an Existing Occupant of a Protected Unit who qualifies for residence in the new development and for whom providing a Comparable Unit would not be precluded due to unit size limitations or other requirements of one or more funding source of the housing development; or

c. a development project that meets the requirements set forth in California Government Code Section 66300.6(b)(1)(C).

(e) Notice Requirements. In addition to any other notices required by this Code, a project sponsor shall comply with the notice requirements under subsections (e)(1) and (e)(2), below. The Department shall create forms to assist project sponsors in providing these notices, and may include additional rules and guidelines in the Replacement Unit Implementation Document. The project sponsor shall provide copies of these notices to the Department at the time they provide them to the Existing Occupants, unless otherwise specified. The Department shall also develop forms for Existing Occupants to keep the project sponsor and Department apprised of future changes of physical address, telephone number, and electronic mail.

the Replacement Unit Implementation Document. The project sponsor shall provide copies of these notices to the Department at the time they provide them to the Existing Occupants, unless otherwise specified. The Department shall also develop forms for Existing Occupants to keep the project sponsor and Department apprised of future changes of physical address, telephone number, and electronic mail.

(1) Posted Notice at Site. Within seven days of receiving notice that their Development Application is complete or has been deemed complete, the project sponsor shall place posters at the subject property that includes the content set forth in Section 333(d). The posters shall comply with the requirements of Section 333(e)(1), and shall remain at the property until the Department issues a Planning Approval Letter or until the project sponsor withdraws or cancels the application. This notice shall be in addition to any notices required by the Building Code or any other State or local law. In addition to the locations required by Section 333(e)(1), the project sponsor shall also place posters in at least one hightraffic area used by tenant households. The requirements of this subsection 317.2(e)(1) may be modified upon a

determination by the Zoning Administrator that a different location for the poster would provide better notice or that physical conditions make this requirement impossible or impractical, in which case the notice shall be posted as directed by the Zoning Administrator.

(2) Notifications to Existing Occupants. Project sponsors must provide notice to Existing Occupants as set forth below, and as further required in the Implementation Document, by certified mail and email, in the Required languages and in languages spoken by a Substantial Number of Limited English Speaking Persons as those terms are defined in Administrative Code Chapter 91.

(A) Notice of Right to Remain. Project sponsors shall notify all Existing Occupants of their right to remain consistent with Section 317.2(d)(2)(A).

(B) Notice of Right to Relocation Benefits. Project sponsors shall notify all Existing Occupants of their right to relocation assistance under Section 317.2(d)(2)(C). Such notice shall include information on relocation specialists and relocation payments.

(C) Notice of a Right of First Refusal. Project sponsors shall notify all Existing Occupants of their right of first refusal for a Comparable Unit under Section 317.2(d)(2)(D). Any household that intends to exercise this right must inform the project sponsor within 180 days of receiving the notice, with a copy to the Planning Department and the Rent Board. The Implementation Document shall include guidelines for satisfying this section, including procedures and timelines for accepting a Replacement Unit.

(D) Notice of Major Milestones for Existing Occupants who Intend to Exercise a Right of First Refusal. Project sponsors shall notify all Existing Occupant of major milestones in the development process, including but not limited to:

• (i) the start of construction;

(ii) on at least a bi-annual basis, the anticipated date of when occupancy will be available;

(iii) at least 180, 90, and 30 days in advance of the anticipated availability of the unit prior to the issuance of the Temporary or Final Certificate of Occupancy;

(iv) when the Temporary Certificate of Occupancy is issued; and

• (v) when the Final Certificate of Occupancy is issued.

(E) Notice of Replacement Unit Availability for Right of First Refusal. Project sponsors shall make offers of Replacement Units in writing by certified mail and electronic mail and shall file a copy of the offer with the Planning Department within 15 days of the offer. The Existing Occupant shall have 30 days from receipt of the offer to notify the project sponsor whether they accept or reject the offer, and if they accept, shall occupy the unit within 60 days of receipt of the offer or when the project receives its Temporary or Final Certificate of Occupancy for the Replacement Unit, whichever occurs last. Nothing in this section shall preclude tenants from contacting the project sponsor to inquire about progress throughout the construction period, or the leasing or sales process.

(F) Notice of Right to Return if Demolition Does Not Proceed. The project sponsor shall notify all Existing Occupants of their right to return to their former rental unit at their prior rental rate if a Development Project does not proceed and the property is returned to the rental market, at least 30 days prior to returning the property to the rental market.

(f) Private Right of Action; Civil Penalties.

(1) An aggrieved tenant, or any organization with tax exempt status under United States Code Section 501(c)(3) or 501(c)(4) that has a primary mission of protecting tenants in San Francisco, may file a civil action for monetary damages and/or injunctive relief against any project sponsor, including any person(s) acting on their behalf and any successors-ininterest, to enforce violations of this Section 317.2.

(2) A prevailing tenant may be awarded compensatory damages. In addition, for violations of subsection (d)(2) a court may impose civil penalties up to $10,000 per violation, treble damages for willful violations, civil penalties up to $5,000 per violation depending upon the severity of the violation if the tenant is 65 years or older or disabled, and for violations of subsection (d)(2)(B) punitive damages in an amount that does not exceed the total rent the Existing Occupant

owed for the six months before they vacated the unit. The prevailing party shall be awarded reasonable attorneys’ fees and costs.

(3) The remedies in this paragraph are not exclusive and do not preclude any tenant or the City from seeking any other legal or equitable remedies, penalties, or punitive damages as provided by law.

(4) This subsection (f) does not impose liability on a party for violating the notification requirements of subsection

(e)(2)(D), so long as the party can demonstrate substantial compliance with those requirements.

(g) Other Tenant Rights and Privileges. All tenants of Replacement Units shall have the same rights and privileges of other tenants in the same building or complex, as applicable and if provided generally in the development, with respect to common space amenities, entry into the building, and building services, including access to laundry facilities, gardens or yards, health facilities and recreational space, property management and security services, repairs and maintenance, access to any parking spaces, access to doors and keys, and building rules and regulations. (Added by Ord. 3-26, File No. 250926, App. 1/8/2026, Eff. 2/8/2026) SEC. 318. [REPEALED.]

(Added by Ord. 242-12 , File No. 120996, App. 12/7/2012, Eff. 1/6/2013; repealed by Ord. 245-25, File No. 250701, App. 12/12/2025, Eff. 1/12/2026, Oper. 1/12/2026)

(Former Sec. 318 added by Ord. 217-05, File No. 050865, App. 8/19/2005; renumbered as Sec. 418 by Ord. 108-10, File No. 091275, App. 5/25/2010)

Editor's Note:

See also Sec. 140.1 ("Common Area Requirement for Efficiency Dwelling Units with Reduced Square Footage"). SEC. 318.1. [REDESIGNATED.]

(Added by Ord. 217-05, File No. 050865, App. 8/19/2005; redesignated as Sec. 418.1 by Ord. 108-10, File No. 091275, App. 5/25/2010)