SEC. 428.3. APPLICATION OF AFFORDABLE HOUSING FEE REQUIREMENT.

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.

(a) For any project for which a complete development application has been submitted before October 1, 2018, the Inclusionary Affordable Housing Program set forth in Planning Code Sections 415.1 et seq. shall apply in the Divisadero Street NCT, except the temporary provisions of Planning Code Section 415.3(b) shall not apply and except as set forth in Section 428.3(a). For any development site for which the Planning Department determines that the residential development potential within the Divisadero Street NCT has been increased through the adoption of the NCT rezoning set forth in Ordinance No. 127-15, as detailed in Section 428.1(e) herein, the requirements of Sections 415.1 et seq of the Planning Code shall apply, except as set forth in subsections (a)(1), (a)(2), and (a)(3), below, and the temporary provisions of Planning Code Section 415.3(b) shall not apply.

(1) Fee. For a development project of 10 or more dwelling units that is subject to the Inclusionary Affordable Housing Program, the development project shall pay an affordable housing fee equivalent to a requirement to provide 33% of the units in the Principal Project as affordable units if those units are Owned Units, or 30% of the units if the project is a Rental Housing Project, using the method of fee calculation set forth in Section 415.5(b).

(2) On-site. For a development project of 10 or more units that is subject to the Inclusionary Affordable Housing Program that elects to construct units Affordable to Qualifying Households on-site of the Principal Project as set forth in Planning Code Section 415.5(g), the development project shall comply with all otherwise applicable requirements of Section 415.6, except that for all housing development projects consisting of 10 or more units, the following requirements shall apply.

onary Affordable Housing Program that elects to construct units Affordable to Qualifying Households on-site of the Principal Project as set forth in Planning Code Section 415.5(g), the development project shall comply with all otherwise applicable requirements of Section 415.6, except that for all housing development projects consisting of 10 or more units, the following requirements shall apply.

(A) For an Ownership Housing Project, the number of affordable units constructed on site shall be 23% of all units constructed on the site. A minimum of 12% of the units shall be affordable to low-income households, 5.5% of the units shall be affordable to moderate-income households, and 5.5% of the units shall be affordable to middle-income households. In no case shall the total number of affordable units required exceed the number required as determined by the application of the applicable on-site requirement rate to the total project units. Owned Units for low-income households shall have an affordable purchase price set at 80% of Area Median Income or less, with households earning up to 100% of Area Median Income eligible to apply for low-income units. Owned Units for moderate-income households shall have an affordable purchase price set at 105% of Area Median Income or less, with households earning from 95% to 120% of Area Median Income eligible to apply for moderate-income units. Owned Units for middle-income households shall have an affordable purchase price set at 130% of Area Median Income or less, with households earning from 120% to 150% of Area Median Income eligible to apply for middle-income units.

(B) For a Rental Housing Project, the number of affordable units constructed on site shall be 20% of all units constructed on the site. A minimum of 12% of the units shall be affordable to low-income households, 4% of the units shall be affordable to moderate-income households, and 4% of the units shall be affordable to middle-income households. In no case shall the total number of affordable units required exceed the number required as determined by the application of the applicable on-site requirement rate to the total project units. Rental Units for low-income households shall have an affordable rent set at 55% of Area Median Income or less, with households earning up to 65% of Area Median Income eligible to apply for low-income units. Rental Units for moderate-income households 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 moderate-income units. Rental Units for middle-income households shall have an affordable rent set at 110% of Area Median Income or less, with households earning from 90% to 130% of Area Median Income eligible to apply for middleincome units.

(3) Off-site. If the project sponsor of a housing development project of 10 or more units that is subject to the Inclusionary Affordable Housing Program elects to provide units Affordable to Qualifying Households off-site of the Principal Project as set forth in Section 415.5(g), the project sponsor shall construct or cause to be constructed affordable

housing equal to 33% of all units constructed on the Principal Project site as affordable housing if the units in the Principal Project are owned units, and 30% if the project is a Rental Housing Project.

(b) For any project for which a complete development application has been submitted on or after October 1, 2018, the Inclusionary Affordable Housing Program set forth in Planning Code Sections 415.1 et seq. shall apply in the Divisadero Street NCT except as set forth in this subsection (b). For any development site for which the Planning Department has determined that the residential development potential has been increased through the adoption of the NCT rezoning set forth in Ordinance No. 127-15, as detailed in Section 428.1(e) herein, the requirements of Planning Code Sections 415.1 et seq. shall apply, except that the following affordable housing requirements shall be applied to residential development on such sites:

(1) Fee. For a development project of 10 or more dwelling units that is subject to the Inclusionary Affordable Housing Program, the development project shall pay an affordable housing fee equivalent to a requirement to provide 33% of the units in the Principal Project as Affordable Units if those units are Owned Units, or 30% of the units if the project is a Rental Housing Project, using the method of fee calculation set forth in Section 415.5(b).

(2) On-site. If the housing development project of 10 or more dwelling units that is subject to the Inclusionary Affordable Housing Program elects to construct units Affordable to Qualifying Households on-site of the Principal Project as set forth in Planning Code Section 415.5(g), the project sponsor shall comply with all otherwise applicable requirements of Section 415.6, except that for all housing development projects consisting of 10 or more units, the number of Affordable Units constructed on-site shall be provided as follows.

(A) A project that consists of Owned Units shall provide 23% of units as Affordable Units at the following levels: 10% shall have an average affordable purchase price set at 80% of Area Median Income; 8% shall have an average affordable purchase price set at 105% of Area Median Income; and 5% shall have an average affordable purchase price set at 130% of Area Median Income.

(B) A project that consists of Rental Units shall provide 23% of units as Affordable Units at the following levels: 10% shall have an average affordable rent set at 55% of Area Median Income; 8% shall have an average affordable rent set at 80% of Area Median Income; and 5% shall have an average affordable rent set at 110% of Area Median Income.

(C) Notwithstanding subsections (b)(2)(A) and (b)(2)(B), the percentage and affordability levels of Affordable Units constructed on-site as set forth in subsections (b)(2)(A) and (b)(2)(B) shall be the same percentage and affordability levels as set forth in Section 206.3(f)(2)(A), as it may be amended from time to time, and in no case shall the percentage of Affordable Units constructed on-site pursuant to this subsection (b)(2) be less than the percentage required by Section 415.6 for projects consisting of 25 or more units. If the percentage of Affordable Units constructed on-site pursuant to this subsection (b)(2) would be less than the percentage set forth in Section 415.6 for projects consisting of 25 or more units, the percentage of Affordable Units set forth in Section 415.6 for projects consisting of 25 or more units shall apply.

(3) Off-site. If the project sponsor of a housing development project of 10 or more units is eligible and elects to provide units Affordable to Qualifying Households off-site of the Principal Project as set forth in Section 415.5(g), the project sponsor shall construct or cause to be constructed affordable housing equal to 33% of all units constructed on the Principal Project site as affordable housing if the units in the Principal Project are owned units, and 30% if the project is a Rental Housing Project.

(Added by Ord. 295-18, File No. 151258, App. 12/7/2018, Eff. 1/7/2019; amended by Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021)

AMENDMENT HISTORY Divisions (a)-(a)(2)(A), (a)(3), and (b)(1)-(3) amended; Ord. 210-21, Eff. 12/20/2021.