SEC. 202.17. PERMITTED USES AND USE SIZE LIMITS FOR DISPLACED BUSINESSES; NOTICE…

(a) Purpose. It is to the general benefit of the people of San Francisco and the unique character of the City and its neighborhoods to retain commercially viable businesses that are forced to close and relocate for a variety of reasons, including but not limited to new development, escalating commercial rent, or other economic hardship. The provisions of this Section 202.17 are intended to streamline and increase opportunities for Displaced Businesses to relocate within the City, but do not override any controls enacted by voter initiative.

(b) Definitions. The following definitions shall apply to this Section 202.17.

New Location means the site or location where a Displaced Business seeks to be permitted.

Prior Location means the place of operation where a Displaced Business was lawfully permitted and operated for at least five years prior to relocating to the New Location.

Displaced Business means a commercial or institutional use with less than 50,000 square feet of Gross Floor Area, whose lease expired and was not renewed, or was otherwise terminated by the property owner, and submits a complete Development Application to relocate to a New Location within five years of the property owner submitting a complete Development Application for development at the site of the Prior Location. Any Displaced Business shall not be considered a Displaced Business upon the Department’s approval of the first Development Application to relocate to the New Location.

• (c) Controls.

(1) Conditional Use Authorization Not Required. Notwithstanding any other provision of this Code, if the use and use size associated with a Displaced Business is either principally or conditionally permitted in the zoning district of the New Location, the use and use size of the Displaced Business shall be principally permitted. In no event shall this subsection be construed to permit a use or use size that is not permitted in the zoning district of a proposed New Location, or to allow Formula Retail uses in the Neighborhood Commercial Districts without Conditional Use authorization.

(2) No Development Impact Fees. A relocating Displaced Business shall not be subject to fees pursuant to Article 4.

(d) Notice of Development Applications to Existing Businesses. Within 15 days of determining that a Development Application is complete or deemed complete, if the Development Application is proposed at a property where there is an existing commercial or industrial use with less than 50,000 square feet of Gross Floor Area, the Department shall provide mailed and electronic notice of the Development Application to the existing non-residential tenant and the Office of Small Business. This provision does not increase or decrease the rights or obligations of the property owner or non-residential tenant pursuant to a private agreement, such as a lease.

(Added by Ord. 245-25, File No. 250701, App. 12/12/2025, Eff. 1/12/2026, Oper. 1/12/2026)