SEC. 206.10. HOUSING CHOICE-SAN FRANCISCO PROGRAM.

(a) Purpose. This Section 206.10 sets forth the Housing Choice-San Francisco Program (HC-SF Program). The HC-SF Program provides additional residential development capacity, additional options for complying with the Inclusionary Housing Ordinance, modifications to certain Planning Code and design standards, and an administrative or discretionary review process for eligible residential projects that comply with the program. Except as provided in this Section 206.10, all HC-SF projects shall comply with Article 4 of the Planning Code.

(b) Applicability. An HC-SF Project under this Section 206.10 shall be a project that complies with all of the following requirements:

(1) consists of new construction, an addition to an existing structure, or a conversion of an existing structure, and results in a net increase in the number of Dwelling Units or Group Housing bedrooms;

(2) contains two or more Dwelling Units or Group Housing bedrooms. Accessory Dwelling Units shall not count towards the minimum number of required Dwelling Units, but an HC-SF Project may contain ADUs;

(3) is located on a Lot in the R-4 Height and Bulk District;

(4) does not demolish a building that is designated as a landmark under Article 10, is listed as a contributor to an historic district in Article 10, is listed as a Significant or Contributory Building under Article 11, is listed in the California Register of Historical Resources, or is listed on the National Register of Historic Places;

(5) does not receive any density or development bonuses or relief from applicable Planning Code standards in any other State or local law or program, including but not limited to California Government Code Sections 65915 et seq. , Government Code sections 65912.113(e), 65912.114(f)(1), 65912.123(b), (c), (d), (e), (i), (j)(1), and (j)(3) and 65912.124(f), and Sections 65852.28(b)(2), 65913.4.5, and 66499.41, as may be updated from time to time; and Planning Code Section 124(f), Section 202.2(f), Sections 206.3 to 206.9, inclusive, Section 207(c), Section 304, and Section 328;

(6) complies with Objective Standards, except as otherwise modified by the HC-SF Program in this Section 206.10, or through the modification process in Section 334;

(7) is a project in which at least two-thirds of the new or converted square footage is designated for Residential Uses; or, a project with at least 50% new or converted square footage for Residential Uses if the project converts an existing Non-Residential Use and does not expand that use by more than 25%. Basements shall not count in the calculation of square footage. For additions to existing structures or conversions of existing buildings, only the net new or converted space shall be considered in the calculation of square footage;

(8) is not located in a Special Use District that implements a Development Agreement adopted under California Government Code 65864 et seq 1 and/or Administrative Code Chapter 56;

(9) is not located on a site containing more than two residential units where the project would require the demolition of residential uses that are subject to the rent increase limitations set forth in Chapter 37 of the Administrative Code; and

(10) does not demolish or convert any portion of a Hotel.

(c) Inclusionary Housing Ordinance Alternatives. HC-SF Projects of 10 or more units shall comply with Section

415 et seq. , and if applicable Section 419 et seq. , except as allowed by this subsection (c). Projects that elect the off-site alternative in Section 415.5(g)(1)(B) or the Land Dedication Alternative in Section 419.5(a)(2) allowed in subsection (c) (2), shall provide the required units within the R-4 Height and Bulk District, or within one-half mile of the project. In addition to the alternatives set forth in Section 415.3(g), HC-SF Projects may satisfy the requirements of Section 415 et seq. by choosing one of the following options:

(1) if the project is a Rental Project with 24 or fewer units, including any additional units allowed by this Section 206.10, a project sponsor shall subject all units in the project to the San Francisco Rent Stabilization and Arbitration Ordinance (Chapter 37 of the Administrative Code) for the Life of the Project; or

(2) applicants shall comply with the Land Dedication Alternative requirements of Section 419.5(a)(2), regardless of project location.

(d) Modified Development Standards. Notwithstanding any contrary provisions found in the Planning Code, including any provision in a Special Use District not implementing a Development Agreement adopted under California Government Code 65864 et seq. and/or Administrative Code Chapter 56, or in any adopted Design Standard, the following development standards apply to eligible HC-SF Projects. Projects may also seek additional modifications under Section 334.

(1) Standards Applicable to All Projects: All HC-SF Projects shall receive the following zoning modifications:

(A) Form-Based Residential Density. An HC-SF Project shall be subject to Form-Based Density limits. Floor Area Ratio requirements or limitations shall not apply to the Residential Uses in an HC-SF Project.

(B) Dwelling Unit Mix. Section 207.6 and Section 207.7 shall apply, except that projects between four and nine units shall comply with the following:

(i) a project with four dwelling units shall contain at least one unit with two or more bedrooms; and

(ii) for projects between five and nine dwelling units, at least 25 percent of units shall contain two or more bedrooms, including at least one unit with three or more bedrooms, unless Section 207.6(c) requires a higher percentage of two- and three-bedroom units.

(C) Additional Height. The applicable height limit for an HC-SF Project shall be the height pursuant to Section 263.19(b). Planning Code Section 261 shall not apply. Notwithstanding any lower height limit in this Code, including Section 263.19, the height limit of an HC-SF Project located on a Corner Lot or a Lot larger than 8,000 square feet shall be 65 feet, unless a higher height limit is provided elsewhere in the Code.

applicable height limit for an HC-SF Project shall be the height pursuant to Section 263.19(b). Planning Code Section 261 shall not apply. Notwithstanding any lower height limit in this Code, including Section 263.19, the height limit of an HC-SF Project located on a Corner Lot or a Lot larger than 8,000 square feet shall be 65 feet, unless a higher height limit is provided elsewhere in the Code.

(D) Ground Floor Setbacks on 19th Avenue. Projects on a lot with frontage on 19th Avenue may reduce the setback required under Section 131 and 132 if the proposed project expands the publicly available sidewalk into the subject property and the resulting overall sidewalk width is not less than 15 feet. In such cases, the setback and sidewalk shall have a minimum vertical clearance of not less than 25 feet from grade, and the property owner shall record a Notice of Special Restrictions allowing for public access to the expanded sidewalk for the life of the project.

(E) Rear Yard and Lot Coverage. The rear yard requirements of Section 134 may be modified as follows:

(i) Except for large lots subject to Section 134(d)(6), or lots in Residential Districts other than the Residential Transit Oriented-Commercial (RTO-C) district, the rear yard shall be equal to at least 18% of the total depth of the lot, or 15 feet, whichever is greater;

(ii) Except for large lots subject to the lot coverage limits of Section 134(d)(6), in Neighborhood Commercial, Named Neighborhood Commercial, Commercial Districts, Residential-Commercial (RC) and Residential Transit Oriented-Commercial (RTO-C) Districts, no rear yard is required at the ground floor;

(iii) On Corner Lots, or Lots at the intersection of a Street and an Alley of at least 25 feet in width, where a rear yard can meet the requirements of Section 134(h), the area of the required open area shall be equal to 18% of the depth of the lot and a minimum of 15 feet in every horizontal direction.

(iv) In C districts, other than on large lots subject to Section 134(d)(6), lot coverage is limited to 82% at all levels containing Residential Uses. All other provisions of Section 134(d)(6) shall apply.

(F) Open Space. The open space requirements of Section 135 shall not apply.

(G) Dwelling Unit Exposure. The dwelling unit exposure requirements of Section 140 shall not apply.

(H) Non-Residential Use Size Limits. Non-Residential Uses may exceed the non-residential use size limits in Section 121.2 without the need for a Conditional Use authorization.

(I) Height Limits for Vertical Non-Habitable Architectural Elements. Vertical Non-Habitable Architectural Elements may exceed height limits consistent with the requirements in Section 263.21(c).

(J) Development of Large Lots in Residential Transit Oriented Commercial (RTO-C) Districts. Sections 121.1 and 303(r) shall not apply to HC-SF Projects on large lots in the RTO-C Zoning District.

(K) Ground Floor Ceiling Heights For Nine-Story Projects. The ground floor ceiling height requirements in Section 145.1(c)(4) shall not apply to HC-SF Projects proposing nine stories in a district with a height limit of 85 feet.

(L) Maximum Dwelling Unit Size. Notwithstanding any other provision of this Code, Section 207.10 shall apply.

(M) Reduction of Quantitative Objective Standards. Any quantitative Objective Standard may be modified by up to 15% of the standard except for the following: standards set forth in subsection (d)(1)(A) through (d)(1)(L) inclusive, standards set forth in subsection (e), rear yard or lot coverage standards, standards ineligible for Major Modifications under Section 334(d)(3), and maximum average floor plate requirements in Section 270(i).

(2) Standards Applicable to 100% Affordable Projects.

(A) Definitions. A 100% Affordable HC-SF Housing Project shall be an eligible HC-SF Project where all Residential Uses, except a manager’s unit, are comprised solely of Dwelling Units or Group Housing bedrooms that are restricted for the Life of the Project as “Affordable Units,” as defined in Section 401, and meet the requirements in Section 406(b)(1)(A) and (C).

(B) Additional Planning Code Modifications. In addition to the modifications in subsection (d)(1), 100% Affordable HC-SF Housing Projects are entitled to the following Planning Code modifications:

(i) Ground-floor ceiling height. Ground floor ceiling height requirements in Section 145.1(c)(4) shall not apply. (ii) Active use requirement. Active use requirements in Section 145.1(c)(3) shall be reduced by 20% of all the required dimensions.

(iii) Curb cuts. Curb cut restrictions in Section 155(r) shall not apply. However, where a site has two or more frontages, frontages with the fewest restrictions under Section 155(r) shall be prioritized for vehicular and loading access.

(iv) Height Limit. The height limit shall be 20 feet greater than the HC-SF height limit set forth in Section 263.19(b), and in subsection (d)(1)(C), and maybe be supplemented by any height bonus pursuant to subsection (e).

(3) Authorization. HC-SF Projects under this Section 206.10 shall be reviewed and approved under the provisions set forth in Section 334, and any other required entitlement except for Section 309 and Section 329. Approval procedures under Section 309 and Section 329 shall not apply.

(4) Exclusions. In no event shall this Section 206.10 be interpreted as relieving a HC-SF project from complying with: Article 4 of the Planning Code other than as specified in this subsection (d); Section 202.17; any tenant protections contained elsewhere in the Planning Code, including Section 317 et seq. ; or Chapter 37 of the Administrative Code.

(e) Additional Height, Square Footage, and Other Bonuses. HC-SF Projects that contain certain uses, amenities, or other building features are eligible for additional bonuses and code modifications, as described below.

(1) Micro-Retail and/or Community Benefit Uses. For projects that include, at or above grade, (A) one or more Micro-Retail spaces, which shall mean space for a Retail Use measuring no less than 100 gross square feet and no greater than 1,000 gross square feet; and/or (B) one or more Community Benefit Uses, shall receive additional square footage and height as set forth below. For the purposes of this subsection, Community Benefit Uses means: Child Care Facility, Community Facility, Job Training, Public Facilities, Social Service or Philanthropic Facility, Laundromat, Trade School, Grocery (General or Specialty), and/or any Displaced Business, as that term is defined in Section 202.17. Notwithstanding any other provision of this Code, all such Community Benefit Uses shall be principally permitted without limit on use size. The following provisions apply to projects providing Micro-Retail space(s) and/or on-site Community Benefit Use(s):

(A) For every square foot of Community Benefit Use(s), or every 1.5 square feet of Micro-Retail, the Project shall be permitted to include an additional:

(i) up to two square feet for other project use(s); and

(ii) up to a maximum of 10 feet total above the permitted height limit to accommodate the additional square footage.

(B) On-site Community Benefits Use(s) and Micro-Retail space(s) must be included in the project for a minimum of 30 years, or the life of the project, whichever is shorter, and the use and space requirement shall be recorded in a Notice of Special Restrictions. If the Community Benefits Use(s) is discontinued, it must be replaced with another Community Benefits Use(s). If the Micro-Retail space(s) is reconfigured, the new resulting space(s) must meet the definition of a Micro-Retail space and the cumulative square footage must not decrease in size.

(2) Warm Retail Shells. For the purposes of this subsection (e)(2), “Warm Retail Shell” means a ground floor retail space with the improvements described in this subsection (e)(2) as a Food Service Warm Shell or a General Warm Shell. A Food Service Warm Shell shall contain all of the following: a concrete floor slab, exterior walls, roof, storefront, restroom(s) meeting ADA accessibility requirements, electrical panel with breakers and outlets, fire sprinklers and alarm system that satisfy building code, HVAC unit, Type 1 grease exhaust hood with appropriate ductwork, water meter(s), distribution piping for domestic water (hot/cold), and waste water plumbing, including floor drains. A General Warm Shell shall contain all of the following: a finished concrete floor, exterior walls, sheet rock on walls, roof, restroom(s) satisfying ADA accessibility requirements, electrical panel with breakers and outlets, fire sprinklers and alarm system that satisfy building code, and basic lighting. The following provisions apply to projects providing Warm Retail Shells.

• (A) For every square foot of Warm Retail Shell(s), the Project shall be permitted to include an additional:

• (i) up to three square feet for other project use(s) for a Food Service Warm Shell; and

• (ii) up to 2.5 square feet for other project use(s) for a General Warm Shell; and

• (iii) up to a maximum of 10 feet total above the permitted height limit to accommodate the additional square footage.

(B) The Warm Retail Shell shall be included in the project for a minimum of 30 years, or the life of the project, whichever is shorter, and the requirement shall be recorded in a Notice of Special Restrictions. If the space is modified within this period such that it no longer meets the definition of a Warm Retail Shell, it must be replaced with a qualifying Community Benefit Use or a Micro-Retail use per subsection (e)(1) above. No Temporary or Final Certificate of Occupancy shall be issued unless the Planning Department, in consultation with the Department of Building Inspection, determines that the requirements of this subsection (e)(2) have been completed.

• (3) Family-Friendly Amenities. In Residential Districts, projects that provide certain Family Friendly Amenities, as defined below, shall be permitted to include an additional:

• (A) up to two square feet for project uses for each square foot of any one or more Family Friendly Amenity; and

• (B) horizontal addition to the permitted building volume to accommodate this extra square footage through any combination of the following:

• (i) reducing the required rear yard above the ground floor (Section 134) to 25% or 20 feet, whichever is greater;

• (ii) reducing the required ground floor rear yard (Section 134) to 18% or 15 feet, whichever is greater;

• (iii) reducing the required side yard (Section 133) to 0 feet, and/or

• (iv) reducing the required upper-story setback to 10 feet for additions to Historic Buildings.

• (C) Family Friendly Amenities shall be defined as the following:

• (i) an indoor common recreational room of not less than 150 square feet that is directly accessible to an adjacent outdoor common open space of at least 150 square feet;

• (ii) a common shared kitchen of not less than 150 square feet, equipped at minimum with a refrigerator, oven, stovetop, sink, dishwasher, and countertops for food preparation;

• (iii) an overnight suite with a bedroom and bathroom, but that is not a Dwelling Unit and has no cooking facilities, that is a common building amenity and reservable exclusively by residents for overnight guests;

• (iv) secured storage space for residents, that is external to individual residential units, intended for large objects, and located on the ground floor or below or accessed from within a garage or loading area;

• (v) bicycle parking space or storage area intended to accommodate cargo bicycles as shall be described in specifications published by the Zoning Administrator; and

(vi) an in-home childcare unit that meets the requirements of Section 414A.6(a)(2), (3), and (5). Projects that construct an in-home childcare unit shall receive a waiver of the requirements of Section 414A.

(D) Family-Friendly Amenities shall be included in the project for a minimum of 30 years, or the life of the project, whichever is shorter, and the use and space requirement shall be recorded in a Notice of Special Restrictions. If the Family-Friendly Amenity is discontinued, it must be replaced with another Family-Friendly Amenity.

(4) Units With Two or More Bedrooms. Projects that contain units with two or more bedrooms shall be permitted to include additional square footage, as set forth below:

(A) 250 square feet for every two-bedroom unit provided in excess of the number of two-bedroom units required by subsection (d)(1)(B); and

(B) 250 square feet for every three-bedroom unit provided, including any three-bedroom units required pursuant to subsection (d)(1)(B); and

(C) 400 square feet for every unit provided that contains four or more bedrooms, including any such units required pursuant to subsection (d)(1)(B); and

(D) horizontal additions to accommodate the extra square footage described in subsection (e)(4)(A)-(C) through any combination of the following:

(i) reducing the required rear yard above the ground floor (Section 134) to 25% or 20 feet, whichever is greater; and

(ii) reducing the required ground floor rear yard (Section 134) to 18% or 15 feet, whichever is greater;

(iii) reducing the required side yard (Section 133) to zero feet, and/or

(iv) reducing the required upper-story setback to 10 feet for additions to Historic Buildings; and

(E) in all districts except Residential districts, vertical additions not to exceed 10 feet total above the Housing Choice-SF height limit (Section 263.19) to accommodate the extra square footage described in subsections (e)(4)(A)-(C).

(F) The units containing two or more bedrooms shall be included in the project for a minimum of 30 years, or the life of the project, whichever is shorter, and the use and space requirement shall be recorded in a Notice of Special Restrictions.

(5) Replacement of Commercial Space. In districts other than Residential districts, projects proposing the alteration or demolition of a building with existing Commercial Uses shall be permitted to include additional square footage, as set forth below. For the purposes of this subsection (e)(5), a “Replacement Commercial Space” shall satisfy all of the following: (1) the space(s) cumulatively contains between 90% to 110% of the gross floor area of the existing Commercial Use(s); (2) the storefront(s) cumulatively occupies between 90 to 110% of the length of the street frontage occupied by the existing Commercial Use(s), except that if the street frontage for the existing Commercial Use is 50 feet or less, up to 10 feet of frontage can be used for a lobby; and if the street frontage for the existing Commercial Use is greater than 50 feet, up to 15 feet of the frontage can be used for a lobby; (3) the space(s) contains a Warm Retail Shell, as that term is defined in subsection (e)(2), provided that if the existing Commercial Use(s) involves food service, the project must provide at least one Food Service Warm Shell; and (4) the project does not reduce the number of existing Commercial Uses, unless the project provides space for a Community Benefit Use pursuant to subsection (e)(1).

(A) up to 1.5 square feet for project uses for each square foot of Replacement Commercial Space; and

(B) up to a maximum of 10 feet total above the permitted height limit to accommodate the additional square footage.

(C) A project providing Replacement Commercial Space is also eligible for the Warm Retail Shell and Micro-Retail and Community Benefit Use bonuses in subsections (e)(1) and (e)(2).

(D) The Replacement Commercial Space shall be included in the project for a minimum of 30 years, or the life of the project, whichever is shorter, and the use requirement shall be recorded in a Notice of Special Restrictions.

(6) Preservation of Historic Buildings. In districts other than Residential districts, projects proposing an alteration to a Historic Building and/or constructing new buildings on sites that contain a Historic Building shall be permitted to include additional square footage, as provided below:

(A) up to 1.5 times the gross floor area foregone by retaining the Historic Building and complying with Objective Standards pertaining to Historic Buildings, including through setting back building additions and/or new construction in relation to the Historic Building. For the purposes of this subsection (e)(6)(A), the foregone gross floor area shall be equal to the gross floor area within the volume that would otherwise be permitted under the Planning Code and all applicable Objective Standards, inclusive of modifications allowed pursuant to this Section 206.10, but is not being constructed in order to accommodate a reduced building mass above or around a Historic Building and that complies with or exceeds the setbacks or mass reductions required by the Objective Standards pertaining to Historic Buildings. The Zoning Administrator may publish further guidance on the calculation of foregone gross floor area; and

ns allowed pursuant to this Section 206.10, but is not being constructed in order to accommodate a reduced building mass above or around a Historic Building and that complies with or exceeds the setbacks or mass reductions required by the Objective Standards pertaining to Historic Buildings. The Zoning Administrator may publish further guidance on the calculation of foregone gross floor area; and

(B) for Historic Buildings with storefronts that contain character-defining features, an additional 0.25 square feet for every square foot of space in the storefront, provided that the project preserves the storefront in compliance with Objective Standards pertaining to Historic Buildings; and

(C) horizontal or vertical additions to accommodate this extra square footage, except that any such additions shall not:

(i) exceed 20 feet above the Housing Choice-SF height limit (Section 263.19); or

(ii) reduce the required rear yard above the ground floor to less than 15 feet where the site abuts the rear yard of adjacent parcels containing residential uses.

(D) The Historic Building and/or historic storefront shall be maintained in compliance with the Preservation Design Standards for the life of the project, and the requirement shall be recorded in a Notice of Special Restrictions.

(7) Limits on Bonuses. Except as provided below, an HC-SF Project can combine the heights, square footage, and additional bonuses in subsections (e)(1) through (e)(6).

(1) Height. A project may combine the bonuses in subsections (e)(1) through (e)(5) provided that any height bonus is limited to 10 feet above the Housing Choice-SF height limit. A project may combine the bonuses in subsections (e)(1) through (e)(6) provided that any height bonus is limited to 30 feet above the Housing Choice-SF height limit.

(2) Rear Yard. A project cannot reduce the required rear yard beyond the lowest of the limits set forth in subsections (e)(3)-(e)(6).

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

1. So in Ord. 245-25.