San Francisco Planning Code Art. 4 Development Impact Fees and Project Requirements That Authorize the Payment…

ARTICLE 4: DEVELOPMENT IMPACT FEES AND PROJECT REQUIREMENTS THAT AUTHORIZE THE PAYMENT OF IN-LIEU FEES

(a) General Findings. The Board makes the following findings related to the fees imposed under Article 4.

(1) Application. The California Mitigation Fee Act, Government Code Section 66000 et seq . may apply to some or all of the fees in this Article 4. While the Mitigation Fee Act may not apply to all fees, the Board has determined that general compliance with its provisions is good public policy in the adoption, imposition, collection, and reporting of fees collected under this Article 4. By making findings required under the Act, including the findings in this Subsection and findings supporting a reasonable relationship between new development and the fees imposed under this Article 4, the Board does not make any finding or determination as to whether the Mitigation Fee Act applies to all of the Article 4 fees.

(2) Timing of Fee Collection. For any of the fees in this Article 4 collected prior to the issuance of the certificate of occupancy, the Board of Supervisors makes the following findings set forth in California Government Code Section 66007(b): the Board of Supervisors finds, based on information from the Planning Department in Board File No. 150149,

that it is appropriate to require the payment of the fees in Article 4 at the time of issuance of the first construction document because the fee will be collected for public improvements or facilities for which an account has been established and funds appropriated and for which the City has adopted a proposed construction schedule or plan prior to the final inspection or issuance of the certificate of occupancy or because the fee is to reimburse the City for expenditures previously made for such public improvements or facilities.

(3) Administrative Fee. The Board finds, based on information from the Planning Department in Board File No. 150149, that the City agencies administering the fee will incur costs equaling 5% or more of the total amount of fees collected in administering the funds established in Article 4. Thus, the 5% administrative fee included in the fees in this Article 4 do not exceed the cost of the City to administer the funds.

(b) Specific Findings. The Board of Supervisors has reviewed the San Francisco Citywide Nexus Analysis (“Nexus Analysis”) and the San Francisco Infrastructure Level of Service Analysis (“Level of Service Analysis”), both on file with the Clerk of the Board in File No. 230764 and adopts the findings and conclusions of those studies, specifically the sections of those studies establishing levels of service for and a nexus between new development and four infrastructure categories: Recreation and Open Space, Childcare, Complete Streets, and Transit Infrastructure. The Board of Supervisors finds that, as required by California Government Code Section 66001, for each infrastructure category analyzed, the Nexus Analysis and Infrastructure Level of Service Analysis: identify the purpose of the fee; identify the use or uses to which the fees are to be put, including a reasonable level of service; determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed; determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed; and determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the facility attributable to the development. Specifically, as discussed in more detail in and supported by the Nexus Analysis and Infrastructure Level of Service Analysis the Board adopts the following findings:

(1) Recreation and Open Space Findings.

(A) Purpose. The fee will help maintain adequate park capacity required to serve new service population resulting from new development.

(B) Use. The fee will be used to fund projects that directly increase park capacity in response to demand created by new development. Park and recreation capacity can be increased either through the acquisition of new park land, or through capacity enhancements to existing parks and open space. Examples of how development impact fees would be used include: acquisition of new park and recreation land; lighting improvements to existing parks, which extend hours of operation on play fields and allow for greater capacity; recreation center construction, or adding capacity to existing facilities; and converting passive open space to active open space including but not limited to through the addition of trails, play fields, and playgrounds.

(C) Reasonable Relationship. As new development adds more employment and/or residents to San Francisco, it will increase the demand for park facilities and park capacity. Fee revenue will be used to fund the acquisition and additional capacity of these park facilities. Each new development project will add to the incremental need for recreation and open space facilities described above. Improvements considered in the Nexus Study are estimated to be necessary to maintain the City's effective service standard.

(D) Proportionality. The new facilities and costs allocated to new development are based on the existing ratio of the City’s service population to acres of existing recreation and open space. The scale of the capital facilities and associated costs are proportional to the projected levels of new development and the existing relationship between service population and recreation and open space. The cost of the deferred maintenance required to address any operational shortfall within the City’s recreation and open space provision will not be financed by development fees.

(2) Childcare Findings.

(A) Purpose. The fee will support the provision of childcare facility needs resulting from an increase in San Francisco's residential and employment population.

(B) Use. The childcare impact fee will be used to fund capital projects related to infant, toddler, and preschool-age childcare. Funds will pay for the expansion of childcare slots for infant, toddler, and preschool children.

(C) Reasonable Relationship. New residential and commercial development in San Francisco will increase the demand for infant, toddler and preschool-age childcare. Fee revenue will be used to fund the capital investment needed for these childcare facilities. Residential developments will result in an increase in the residential population, which results in growth in the number of children requiring childcare. Commercial development results in an increase of the employee population, which similarly require childcare near their place of work. Improvements considered in this study are estimated to be necessary to maintain the City's provision of childcare at its effective service standard.

(D) Proportionality. The costs allocated to new development are based on the estimated childcare demand

generated by future development¹ Capital costs required to provide these childcare spaces to accommodate the new population are based on the City’s cost of funding new childcare facilities and assigned to new housing units and new nonresidential development on a per-square-foot basis. The scale of the capital facilities and associated costs are directly proportional to the expected levels of new development and the corresponding increase in childcare demands.

(3) Complete Streets Findings.

(A) Purpose. “Complete Streets” encompass sidewalk improvements, such as lighting, landscaping, and safety measures, and sustainable street elements more broadly, including bike lanes, sidewalk paving and gutters, lighting, street trees and other landscaping, bulb-outs, and curb ramps. The primary purpose of the Complete Streets impact fee is to fund capital investments in bicycle, streetscape, and pedestrian infrastructure to accommodate the growth in street activity.

(B) Use. The Complete Streets fees will be used to implement the Better Streets Plan (2010), on file in Board File No. 230764, including enhancement of the pedestrian network in the areas surrounding new development – whether through sidewalk improvements, construction of complete streets, or pedestrian safety improvements – and development of new premium bike lanes, upgraded intersections, additional bicycle parking, and new bicycle sharing program stations..1

(C) Reasonable Relationship. New residential and non-residential development brings an increased demand for new or expanded and improved Complete Streets infrastructure. This relationship between new development, an influx of residents and workers, and a demand for complete streets infrastructure provides the nexus for an impact fee. Complete Streets impact fees, imposed on new development, fund the construction of new and enhanced complete streets infrastructure for the additional residents and workers directly attributable to new development.

(D) Proportionality. The fees allocated to new development are based on the existing ratio of the City’s service population to a conservative estimate of its current Complete Streets infrastructure provision to date – in the form of square feet of Complete Streets sidewalk per thousand service population units. The costs associated with this level of improvement are drawn from the cost per square foot associated with constructing Complete Streets elements based on data from the San Francisco Planning Department, Department of Public Works, Public Utilities Commission, and Municipal Transportation Agency. Due to the locational variation in the cost of building Complete Street elements, the fee calculation includes a 20 percent markup for the downtown area..1 The scale of the capital facilities and associated costs are directly proportional to the expected levels of new development and the existing relationship between service population and Complete Streets infrastructure. The cost of the deferred maintenance required to address any operational shortfall is not allocated to be funded by new development.

(4) Transit Infrastructure Findings.

(A) Purpose. Transit Infrastructure funds will be used to meet the demand for transit capital maintenance, transit capital facilities and fleet, and pedestrian and bicycle infrastructure generated by new development in the City.

(B) Use. Transit Infrastructure fees will fund transit capital maintenance and transit capital facilities to maintain the existing level of service. Revenues for capital maintenance operating costs will improve vehicle reliability to expand transit services. Revenues for capital facilities will be used for transit fleet expansion, improvements to increase SFMTA transit speed and reliability, and improvements to regional transit operators. Though the fees are calculated based on

transit maintenance and facilities, fee revenues may be used for pedestrian and bicycle improvements to complement revenue from the Complete Streets fee, including Area Plan complete street fees.

(C) Reasonable Relationship. The Transit Infrastructure fee is reasonably related to the financial burden that development projects impose on the City. As development generates new trips, the SFMTA must increase the supply of transit services and therefore capital maintenance expenditures to maintain the existing transit level of service. Development also increases the need for expanded transit facilities due to increased transit and auto trips.

(D) Proportionality. The existing level of service for transit capital maintenance is based on the current ratio of the supply of transit services (measured by transit revenue service hours) to the level of transportation demand (measured by number of automobile plus transit trips). The fair share cost of planned transit capital facilities is allocated to new development based on trip generation from new development as a percent of total trip generation served by the planned facility, including existing development. The variance in the fee by economic activity category based on trip generation, and the scaling of the fee based on the size of the development project, supports proportionality between the amount of the fee and the share of transit capital maintenance and facilities attributable to each development project.

(5) Additional Findings. The Board finds that the Nexus Analysis and Level of Service Analysis establish that the fees are less than the cost of mitigation and do not include the costs of remedying any existing deficiencies. The City may fund the cost of remedying existing deficiencies through other public and private funds. The Board also finds that the

Nexus Analysis and Level of Service Analysis establish that the fees do not duplicate other City requirements or fees. The Board further finds that there is no duplication in fees applicable on a Citywide basis and fees applicable within an Area Plan. Moreover, the Board finds that these fees are only one part of the City’s broader funding strategy to address these issues. Residential and non-residential impact fees are only one of many revenue sources necessary to address the City’s infrastructure needs.

(Added by Ord. 50-15 , File No. 150149, App. 4/24/2015, Eff. 5/24/2015; amended by Ord. 188-15 , File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015; Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016; Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023) AMENDMENT HISTORY

Nonsubstantive changes; Ord. 188-15 , Eff. 12/4/2015. Division (b) amended; new division (b)(5) added; former division (b)(5) redesignated as (b)(6) and amended; Ord. 200-15 , Eff. 12/25/2015 and Ord. 222-15 , Eff. 1/17/2016. Divisions (b), (b)(1)(D), (b)(2)(D), (b)(3)-(b)(3)(D) amended; (b)(4)-(b)(4)(D) deleted; (b)(5)-(6) amended as (b)(4)-(5); Ord. 193-23, Eff. 10/16/2023.

CODIFICATION NOTE

1. So in Ord. 193-23.

Sections 411A.1 through 411A.8 (hereafter referred to collectively as "Section 411A") set forth the requirements and procedures for the Transportation Sustainability Fee ("TSF").

(Added by Ord. 200-15, File No. 150790, App. 11/25/2015, Eff. 12/25/2015 and Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016)

(a) In 1981, San Francisco ("the City") enacted Ordinance No. 224-81, imposing a Transit Impact Development Fee ("TIDF") on new office development in the downtown area. The TIDF was based on studies showing that the development of new office uses places a burden on the City's transit system, especially in the downtown area of San Francisco during commute hours, known as "peak periods."

(b) The City later amended the TIDF, and made it applicable to non-residential Development Projects citywide, recognizing that development has transportation impacts across the City's transportation network. (c) Starting in 2009, the City and the San Francisco County Transportation Authority worked to develop the concept of a comprehensive citywide transportation fee and supporting nexus study (the "TSF Nexus Study"). The fee would offset impacts of Development Projects, both residential and non-residential, on the City's transportation network, including impacts on transportation infrastructure that support pedestrian and bicycle travel. The Nexus Study is on file with the Clerk of the Board of Supervisors in File No. 150790, and is incorporated herein by reference.

(d) The TSF Nexus Study concluded that all new land uses in San Francisco will generate an increased demand for transportation infrastructure and services, and recommended that the TSF apply to both residential and non-residential Development Projects in the City. While the Nexus Study found that all new land uses in San Francisco will generate this increased demand for transportation, the Board finds that it is in the public interest to exempt some uses from payment of the fee, in order to promote other important City policies and priorities, such as affordable housing, small businesses and charitable organizations. The Board finds that Hospital and Health Service projects, however, are generally of such scope and size that they create a substantial demand for transportation infrastructure and services, and therefore, they should contribute to the TSF to meet this demand.

(e) In accordance with the TSF Nexus Study, Section 411A imposes a citywide transportation fee, the TSF, which will allow the San Francisco Municipal Transportation Agency ("SFMTA") and other regional transportation agencies serving San Francisco to meet the demand generated by new development and thus

maintain their existing level of service. Section 411A will require sponsors of Development Projects in the City to pay a fee that is reasonably related to the financial burden such projects impose on the City. This financial burden is measured by the cost that will be incurred by SFMTA and other transportation agencies serving San Francisco to meet the demand for transit capital maintenance, transit capital facilities and fleet, and pedestrian and bicycle infrastructure (also referred to as "complete streets" infrastructure) created by new development throughout the City.

(f) The TSF Nexus Study justifies charging fee rates higher than those Section 411A imposes. The rates imposed herein take into consideration the recommendations of a TSF Economic Feasibility Study that the City prepared in conjunction with TSF. The TSF Economic Feasibility Study took into account the impact of the TSF on the feasibility of development, throughout the City. The TSF Economic Feasibility Study is on file with the Clerk of the Board of Supervisors in File No. 150790,1 and is incorporated herein by reference.

(g) The fee rates charged herein are no higher than necessary to cover the reasonable costs of providing transportation infrastructure and service to the population associated with the new Development Projects, such as residents, visitors, employees and customers. The TSF will provide revenue that is significantly below the costs that SFMTA and other transit providers will incur to mitigate the transportation infrastructure and service needs resulting from the Development Projects.

(h) The TSF is an efficient and equitable method of providing funds to mitigate the transportation demands imposed on the City by new Development Projects.

(i) More recently, the City adopted the San Francisco Citywide Nexus Analysis (“Nexus Analysis”) and the San Francisco Infrastructure Level of Service Analysis, both on file with the Clerk of the Board in File No. 230764. The Nexus Analysis evaluated the TSF, in addition to other transportation impact fees. In Section 401A, the Board adopted the findings and conclusions of those studies and the general and specific findings in that Section, specifically including the Transit Infrastructure Findings, and incorporates those by reference herein to support the imposition of the fees under this Section.

(Added by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015 and Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016; amended by Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023) AMENDMENT HISTORY

Former divisions (i)-(i)(5) deleted; new division (i) added; Ord. 193-23, Eff. 10/16/2023. CODIFICATION NOTE

1. The file number is blank in Ord. 222-15, but is set forth here as shown in Ord. 200-15.

See Section 401 of this Article 4 for definitions of terms applicable to this Section 411A. In addition, the following abbreviations are used throughout Section 411A: TIDF (Transit Impact Development Fee); TSF (Transportation Sustainability Fee).

(Added by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015 and Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016)

(a) Except as provided in Subsection (b), the TSF shall apply to any Development Project in the City that results in:

• (1) More than twenty new dwelling units;

(2) New group housing facilities, or additions of 800 gross square feet or more to an existing group housing facility;

(3) New construction of a Non-Residential use in excess of 800 gross square feet, or additions of 800 gross square feet or more to an existing Non-Residential use; or

(4) New construction of a PDR use in excess of 1,500 gross square feet, or additions of 1,500 gross square feet or more to an existing PDR use; or

(5) Change or Replacement of Use, such that the rate charged for the new use is higher than the rate charged for the existing use, regardless of whether the existing use previously paid the TSF or TIDF.

(6) Change or Replacement of Use from a Hospital or a Health Service to any other use.

(b) Exemptions. Notwithstanding Subsection (a), the TSF shall not apply to the following:

(1) City Projects. Development Projects on property owned by the City, except for that portion of a Development Project that may be developed by a private sponsor and not intended to be occupied by the City or other agency or entity exempted under Section 411A, in which case the TSF shall apply only to such non-exempted portion. Development Projects on property owned by a private person or entity and leased to the City shall be subject to the fee, unless such Development Project is otherwise exempted under Section 411A.

(2) Redevelopment Projects and Projects with Development Agreements. Development Projects in a Redevelopment Plan Area or in an area covered by a Development Agreement in existence at the time a building or site permit is issued for the Development Project, to the extent payment of the TSF would be inconsistent with such Redevelopment Plan or Development Agreement.

(3) Projects of the United States. Development Projects located on property owned by the United States or any of its agencies to be used exclusively for governmental purposes.

(4) Projects of the State of California. Development Projects located on property owned by the State of California or any of its agencies to be used exclusively for governmental purposes.

(5) Affordable Housing Projects. Affordable housing, pursuant to the provisions of Planning Code Section 406(b), other than that required by Planning Code Sections 415 or 419 et seq. , or any units that trigger a Density Bonus under California Government Code Sections 65915-65918.

(6) Small Businesses. Each Change of Use from PDR to Non-Residential, or expansion of an existing PDR or Non-Residential use through an addition that adds new gross floor area to an existing building, shall be exempt from the TSF, provided that: (A) the gross square footage of the resulting individual unit of PDR or Non-Residential use is not greater than 5,000 gross square feet, and (B) the resulting use is not a Formula Retail use, as defined in Section 303.1 of this Code. This exemption shall not apply to new construction or Replacement of Use.

(7) Charitable Exemptions.

(A) The TSF shall not apply to any portion of a project located on a property or portion of a property that will be exempt from real property taxation or possessory interest taxation under California Constitution, Article XIII, Section 4, as implemented by California Revenue and Taxation Code Section

214. However, any Hospital or Health Service that requires an Institutional Master Plan under Section 304.5 of the Planning Code shall not be eligible for this charitable exemption, and shall as of the effective date of this Ordinance* be subject to the TSF, as set forth in Section 411A.4 and 411A.5, below.

(B) Any project receiving a Charitable Exemption shall maintain its tax exempt status, as applicable, for at least 10 years after the issuance of its Certificate of Final Completion. If the property or portion thereof loses its tax exempt status within the 10-year period, then the property owner shall be required to pay the TSF that was previously exempted. Such payment shall be required within 90 days of the property losing its tax exempt status.

(C) If a property owner fails to pay the TSF within the 90-day period, a notice for request of payment shall be served by the Development Fee Collection Unit at DBI under Section 107A.13 of the San Francisco Building Code. Thereafter, upon nonpayment, a lien proceeding shall be instituted under Section 408 of this Article and Section 107A.13.15 of the San Francisco Building Code.

(D) The Zoning Administrator shall approve and order the recordation of a Notice in the Official Records of the Recorder of the City and County of San Francisco for the subject property prior to the issuance of a building or site permit. This Notice shall state the amount of the TSF exempted per this subsection (b)(7). It shall also state the requirements and provisions of subsections (b)(7)(B) and (b)(7)(C) above.

(c) Timing of Payment. The TSF shall be paid consistent with the timing set forth in Section 107A.13.3 of the San Francisco Building Code.

(d) Application of the TSF to Projects in the Approval Process at the Effective Date of Section 411A. The TSF shall apply to Development Projects that are in the approval process at the effective date of Section 411A, except as modified below:

(1) Projects that have a Development Application approved before the effective date of this Section shall not be subject to the TSF, but shall be subject to the TIDF at the rate applicable pursuant to Planning Code Sections 411.3(e) and 409, as well as any other applicable fees.

(2) Projects that have filed a Development Application or environmental review application on or before July 21, 2015, and have not received approval of any such application, shall be subject to the TSF as follows, except as described in subsection (3) below:

(A) Residential Uses subject to the TSF shall pay 50% of the applicable residential TSF rate, as well as any other applicable fees.

(B) The Non-residential or PDR portion of any project shall be subject to the TSF but pay the applicable TIDF rate pursuant to Planning Code Sections 411.3(e) and 409, as well as any other applicable fees.

(3) Projects that have not filed a Development Application or environmental review application before July 22, 2015, and file the first such application on or after July 22, 2015, and have not received approval of any such application, as well as projects within the Central SoMa Special Use District that have a Central SoMa Fee Tier of A, B, or C, as defined in Section 423.2, regardless of the date filed of any Development Application, shall be subject to the TSF as follows:

(A) Residential Uses subject to the TSF shall pay 100% of the applicable residential TSF rate, as well as any other applicable fees.

(B) The Non-residential or PDR portion of any project shall pay 100% of the applicable Nonresidential or PDR TSF rate, as well as any other applicable fees.

(e) Effect of TSF on TIDF and Development Subject to TIDF.

(1) The provisions of this Section 411A are intended to supersede the provisions of Section 411 et seq . as to new development in the City as of the effective date of Section 411A, except as stated below. The provisions of Section 411 et seq . are hereby suspended, with the following exceptions:

(A) Section 411 et seq . shall remain operative and effective with respect to any Redevelopment Plan, Development Agreement, Interagency Cooperation Agreement, or any other agreement entered into by the City, the former Redevelopment Agency or the Successor Agency to the Redevelopment Agency, that is valid and effective on the effective date of Section 411A, and that by its terms would preclude the application of Section 411A, and instead allow for the application of Section 411 et seq .

(B) Section 411 et seq . shall remain operative and effective with respect to Development Projects that are in the approval process as of the effective date of Section 411A, and for which the TIDF is imposed as set forth in Section 411A.3(d).

(C) Section 411 et seq . shall remain operative and effective with respect to imposition and collection of the TIDF for any new development for which a Development Application was approved prior to the effective date of Section 411A, and for which TIDF has not been paid.

(2) Notwithstanding subsection (e)(1) above, if the City Attorney certifies in writing to the Clerk of the Board of Supervisors that a court has determined that the provisions of Section 411A are invalid or unenforceable in whole or substantial part, the provisions of Section 411 shall no longer be suspended and shall become operative as of the effective date of the court ruling. In that event, the City Attorney shall cause to be printed appropriate notations in the Planning Code indicating that the provisions of Section 411A are suspended, and the provisions of Section 411 are no longer suspended.

(3) The City Attorney's certification referenced in subsection (e)(2) above shall be superseded if the City Attorney thereafter certifies in writing to the Clerk of the Board of Supervisors that the provisions of Section 411A are valid and enforceable in whole or in substantial part because the court decision referenced in subsection (e)(2) has been reversed, overturned, invalidated, or otherwise rendered inoperative with respect to Section 411A. In that event, the provisions of Section 411A shall no longer be suspended and shall become operative as of the date the court decision no longer governs, and the provisions of Section 411 shall be suspended except as specified in Section 411A. Further, the City Attorney shall cause to be printed appropriate notations in the Planning Code indicating the same. (Added by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015 and Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016; amended by Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019; Ord. 196-25, File No. 250657, App. 10/24/2025, Eff. 11/24/2025)

AMENDMENT HISTORY

Divisions (d)(1), (d)(2), (d)(2)(B), and (d)(3) amended; Ord. 296-18, Eff. 1/12/2019. Division (c) amended; Ord. 196-25, Eff. 11/24/2025.

• Editor's Note:

The phrase "as of the effective date of this Ordinance" was added to this section by Ord. 222-15 , eff. 1/17/2016.

(See Interpretations related to this Section.)

(a) Calculation. The TSF shall be calculated on the basis of the amount of new gross square feet created by the Development Project, multiplied by the TSF rate in effect at the issuance of the First Construction Document for each of the applicable land use categories within the Development Project, as provided in the Fee Schedule set forth in Section 411A.5, except as provided in subsections (b)-(e), below. An accessory use shall be charged at the same rate as the underlying use to which it is accessory. In reviewing whether a Development Project is subject to the TSF, the project shall be considered in its entirety. A project sponsor shall not seek multiple applications for building permits to evade paying the TSF for a single Development Project.

(b) Change or Replacement of Use. When calculating the TSF for a development project in which there is a Change or Replacement of Use such that the rate charged for the new land use category is higher than the rate charged for the category of the existing legal land use, the TSF per square foot rate shall be the difference between the rate charged for the new and the existing use.

(c) Calculation Method for Residential Uses. Areas of Residential use within a project that creates no more than 99 dwelling units shall pay the fee listed in Table 411A.5. When a project creates more than 99 dwelling units, the fees for areas of Residential use shall be calculated as follows: The number of dwelling units greater than 99 shall be divided by the total number of dwelling units created to determine the proportion of the project represented by those dwelling units. The resulting quotient shall be multiplied by the total gross floor area of Residential use in the project. The resulting product represents the number of gross square feet of Residential use in the project that is subject to the higher fee rate in Table 411A.5 for dwelling units above 99. The remainder of gross square feet of Residential use in the project is subject to the lower fee rate in Table 411A.5 for dwelling units at or below 99.

(d) Calculation Method for Hospitals. For any project creating a new Hospital use, or expanding an existing Hospital use, as defined in Section 102 of this Code, the number of Gross Square Feet that shall be used to calculate the TSF shall be calculated by the following formula:

GSF of New Hospital Use

× ( Net increase of licensed inpatient beds in the City and County of San ) Francisco created by the proposed Hospital use for the associated licensed hospital operator Total number of existing licensed inpatient beds in the City and County of San Francisco for the associated licensed hospital operator

This formula calculates the number of gross square feet of the new Hospital use, multiplied by the ratio of the net increase of licensed inpatient beds in the City and County of San Francisco resulting from the proposed Hospital use for the associated licensed hospital operator to the total number of existing licensed inpatient beds in the City and County of San Francisco, including licensed beds at one or more locations, for the associated licensed hospital operator. The gross square feet resulting from this formula shall be subject to the TSF rate set forth in Table 411A.5.

(e) Calculation Method for Changes or Replacements of Use, from a Hospital to Any Other Use.

If a Hospital use that was previously subject to the TSF undergoes a Change or Replacement of Use to any

other use, the rate applicable to the new use shall be applied to any gross square feet of previous Hospital use that was excluded from the fee calculation per the formula established in Section 411A.4(d). (Added by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015 and Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016)

(a) Development Projects subject to the TSF shall pay the following fees, as adjusted annually in accordance with Planning Code Section 409(b).

(b) Development Projects in the Market & Van Ness Residential Special Use District may propose to pay their TSF in kind, as set forth in Section 249.33.

(Added by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015 and Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016; amended by Ord. 138-18, File No. 180117, App. 6/20/2018, Eff. 7/21/2018, Oper. 7/21/2018 and 1/12/2019; Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020)

AMENDMENT HISTORY

Table 411A.5 amended; Ord. 138-18, Oper. 7/21/2018 and 1/12/2019. Division (a) designated; division (b) added; Ord. 126-20, Eff. 8/31/2020.

As set forth in the Nexus Analysis, on file with the Clerk of the Board of Supervisors File No. 230764, TSF funds may only be used to reduce the burden imposed by Development Projects on the City’s transportation system. Expenditures shall be allocated as follows, giving priority to specific projects identified in the different Area Plans:

Within the Rincon Hill Community Improvements Program Area, per Planning Code Section 418 and the Visitacion Valley Fee Area, per Planning Code Section 420, expenditures shall be allocated as follows:

Table 411A.6B. TSF Expenditure Program in Rincon Hill and Visitacion Valley

(Added by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015 and Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016; amended by Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023) AMENDMENT HISTORY

Undesignated introductory paragraph amended; Ord. 193-23, Eff. 10/16/2023.

Money received from collection of the TSF, including earnings from investments of the TSF, shall be held in trust by the Treasurer of the City and County of San Francisco under California Government Code Section 66006 of the Mitigation Fee Act. It shall be distributed according to the fiscal and budgetary provisions of the San Francisco Charter and the Mitigation Fee Act, subject to the following conditions and limitations. As reasonably necessary to mitigate the impacts of new development on the City's public transportation system, TSF funds may be used to fund transit capital maintenance projects, transit capital facilities and fleet, and complete streets (pedestrian and bicycle) infrastructure. These expenditures may include, but are not limited to: capital costs associated with establishing new transit routes, expanding transit routes, and increasing service on existing transit routes, including, but not limited to, procurement of related items such as rolling stock, and design and construction of bus shelters, stations, tracks, and overhead wires; capital or maintenance costs required to add revenue service hours or enhanced capacity to existing routes; capital costs of pedestrian and bicycle facilities, including, but not limited to, sidewalk paving and widening, pedestrian and bicycle signalization of crosswalks or intersection, bicycle lanes within street right-of-way, physical protection of bicycle facilities from motorized traffic, bike sharing, bicycle parking, and traffic calming. Proceeds from the TSF may also be used to administer, enforce, or defend Section 411A.

(Added by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015 and Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016)

Every three years, or sooner if requested by the Mayor, the Planning Commission, or the Board of Supervisors, the SFMTA shall update the TSF Economic Feasibility Study. This update shall analyze the impact of the TSF on the feasibility of development, throughout the City. This update shall be in addition to the five-year evaluation of all development fees mandated by Section 410 of this Code.

(Added by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015 and Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016)

The Controller and the Planning Department shall study the feasibility of creating a variable impact fee structure based on economic feasibility of projects in different areas of the City, and report back to the Board of Supervisors within six months of the effective date of this Ordinance No. 200-15 .1

(Added by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015)

CODIFICATION NOTE

1. Blank in Ord. 200-15 ; ordinance number inserted by the codifier. [DOWNTOWN PARK FEE]

(a) Purpose. Residential developments in the City are benefitted by the availability of childcare for persons residing in such developments. However, the supply of childcare in the City has not kept pace with the demand for childcare created by new residents. Due to this shortage of childcare, residents unable to find accessible and affordable quality childcare

will be forced either to live where such services are available outside of San Francisco or leave the work force, in some cases seeking public assistance to support their children. In either case, there will be a detrimental effect on San Francisco's economy and its quality of life.

The San Francisco General Plan requires that the City "balance housing growth with adequate infrastructure that serves the city's growing population." In light of this provision, the City should impose requirements on developers of certain residential projects designed to mitigate the adverse effects of the increase in population facilitated by such projects.

(b) Findings. The Board of Supervisors reviewed the San Francisco Citywide Nexus Analysis (“Nexus Analysis”), and the San Francisco Infrastructure Level of Service Analysis, both on file with the Clerk of the Board of Supervisors in File No. 230764. The Board of Supervisors reaffirms the findings and conclusions of those studies as they relate to the impact of residential development on childcare and hereby readopts the General Findings in Section 401A(a) of the Planning Code and the Specific Findings in Section 401A(b) of the Planning Code relating to childcare.

(Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016; amended by Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023)

AMENDMENT HISTORY

Division (b) amended; Ord. 193-23, Eff. 10/16/2023.

See Section 401 of this Article for definitions applicable to Section 414A et seq . (Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016)

(a) Application.

• (1) Sections 414A.1 et seq. shall apply to any residential development project that results in:

• (A) At least one net new dwelling unit;

• (B) Additional space in an existing dwelling unit of more than 800 gross square feet;

• (C) At least one net new group housing facility or residential care facility; or

• (D) Additional space in an existing group housing or residential care facility of more than 800 gross square feet.

• (2) Sections 414A.1 et seq. shall not apply to

• (A) That portion of a residential development project consisting of a retail use;

• (B) That portion of a residential development project located on property owned by the United States or any of its agencies;

(C) That portion of a residential development project located on property owned by the State of California or any of its agencies, with the exception of such property not used for a governmental purpose;

(D) That portion of a residential development project located on property under the jurisdiction of the Port of San Francisco or the San Francisco Office of Community Investment and Infrastructure where the application of Sections 414A.1 et seq. is prohibited by State or local law; and

• (E) Any residential development project that has obtained its First Construction Document prior to the effective date of Sections 414A.1 et seq.

(Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016; amended by Ord. 7-19, File No. 180917, App. 1/25/2019, Eff. 2/25/2019)

AMENDMENT HISTORY

Divisions (a)(1)-(a)(1)(B), (a)(2), and (a)(2)(D)-(E) amended; Ord. 7-19, Eff. 2/25/2019.

SEC. 414A.4. IMPOSITION OF RESIDENTIAL CHILD CARE IMPACT FEE REQUIREMENT.

(a) Determination of Requirements. The Department shall determine the applicability of Section 414A to any development project requiring a First Construction Document and, if Section 414A is applicable, the number of gross square feet of space subject to its requirements, and shall impose these requirements as a condition of approval for issuance of the First Construction Document for the development project to mitigate the impact on the availability of child-care facilities that will be caused by the residents attracted to the proposed development project. The project sponsor shall supply any information necessary to assist the Department in this determination.

(b) Department Notice to Development Fee Collection Unit at DBI. After the Department has made its final determination of the net addition of gross square feet of the space subject to Section 414A.1 et seq. , it shall immediately notify the Development Fee Collection Unit at the Department of Building Inspection (DBI) of its determination in addition to the other information required by Section 402(b) of this Article.

(c) Timing of Fee Payments. The Residential Child Care Impact Fee shall be paid to DBI for deposit into the Child Care Capital Fund at the time required by Section 402(d).

(d) Development Fee Collection Unit Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the First Certificate of Occupancy for any development project subject to this Section 414A whether the project sponsor has paid the required Residential Child Care Impact Fee. If the Department notifies the Unit at such time that the sponsor has not paid this fee in full, the Director of DBI shall deny any and all Certificates of Occupancy until the subject project is brought into compliance with the requirements of this Section 414A.

(e) Process for Revisions of Determination of Requirements. In the event that the Department or Commission takes action affecting any development project subject to Section 414A, and such action is subsequently modified, superseded, vacated, or reversed by the Board of Appeals, the Board of Supervisors, or by a court, the procedures of Section 402(c) of this Article 4 shall be followed.

(f) Waiver or Reduction. Development projects may be eligible for a waiver or reduction of impact fees, per Section 406 of this Article 4, including Section 406(d), in the event a project located in an Area Plan may be assessed a child care fee.

(Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016; amended by Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020)

AMENDMENT HISTORY Division (c) amended; Ord. 63-20, Eff. 5/25/2020.

(a) For development projects for which the Residential Child Care Impact Fee is applicable:

• (1) Any net addition of gross square feet shall pay per the Fee Schedule in Table 414A.5A; and

• (2) Any replacement of gross square feet or change of use shall pay per the Fee Schedule in Table 414A.5B.

TABLE 414A.5B

FEE SCHEDULE FOR REPLACEMENT OF USE OR CHANGE OF USE

(b) Credit for On-Site Childcare Facilities. A project may be eligible for a credit for on-site Childcare Facilities: The project sponsor must apply to the Planning Department to receive a credit for on-site child care facilities. To qualify for a credit, the facility shall be open and available to the general public on the same terms and conditions as to residents of the residential development project in which the facilities are located. Subject to the review and approval of the Planning Commission, the project sponsor may apply for a credit up to 100% of the required fee. The City shall enter into an InKind Agreement with the Project Sponsor under the conditions described for In-Kind Agreements in Section 421.3(d), subsections (2) through (5).

(Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016)

(a) Election to Provide Designated Child Care Units in Lieu of Residential Child Care Impact Fee. Consistent with the timing to elect the option to provide On- or Off-site Units under Section 415.5(g), the sponsor of a development project subject to the requirements of Sections 414A.1 et seq. , may elect to fulfill all or a portion of the Residential Child Care Impact Fee requirement by creating one or more Designated Child Care Units in the project, as follows:

(1) The number of Designated Child Care Units in a project subject to this Section 414A shall be as follows:

TABLE 414A.6A

NUMBER OF DESIGNATED CHILD CARE UNITS

(2) A Designated Child Care Unit shall have two or more bedrooms and shall be 1,000 square feet or more;

(3) A Designated Child Care Unit shall be offered only for rent and only to a tenant who agrees to operate a Statelicensed Small Family Child Care Home in the Unit;

(4) A Designated Child Care Unit shall be reserved for a period of at least ten years from the date the Designated Unit is first leased to a tenant for use as a State-licensed Small Family Child Care Home; and

(5) A Designated Child Care Unit may not be an On-site or Off-site Unit, as defined in Planning Code Sections 415 et seq. establishing the Inclusionary Affordable Housing Program.

(b) Calculation of Value of Designated Child Care Unit in Lieu of Residential Child Care Impact Fee. For purposes of determining the value of a Designated Child Care Unit to calculate a waiver of the Child Care Fee, the City shall use the following formula:

Total number of gross square feet of the unit or units designated as Child Care Units * Residential Child Care Impact Fee * 20.

This value shall be deducted from the amount of the Residential Child Care Impact Fee owed.

(c) Development of Procedures. Within nine months of the Effective Date of the ordinance in Board File No. 180917 amending this subsection (c), the Office of Early Care and Education, in consultation with the Mayor’s Office of Housing and Community Development, will provide program regulations for Designated Child Care Units. The program regulations shall include the eligibility and occupancy requirements, the application process and assignment of the units, and the roles and responsibilities of the agencies in enforcing the program regulations.

• (1) The Office of Early Care and Education shall:

(A) develop a set of written procedures, standards, and eligibility requirements for selecting State-licensed Small Family Child Care Home operators for these Designated Child Care Units;

• (B) provide outreach and information to the early care and education community about the availability of Designated Child Care Units; and

(C) monitor Designated Child Care Units for program compliance listed in subsection (d) as Responsibilities of Operators of Small Family Child Care Homes and refer any instances of noncompliance as a child care provider to the Planning Department for enforcement.

• (2) MOHCD shall:

• (A) publish program regulations on its website and update from time to time; and

(B) screen applicants for income and household eligibility and perform annual income certification consistent with the Inclusionary Affordable Housing Monitoring and Procedures Guidelines as updated from time to time.

(d) Responsibilities of Operators of Small Family Child Care Homes in Designated Child Care Units. A tenant of any Designated Child Care Unit shall agree to operate a State-licensed Small Family Child Care Home in the unit for a minimum of ten years as follows:

(1) If, in the determination of the Office of Early Care and Education, the tenant does not begin to operate a Statelicensed Small Family Child Care Home in the unit within nine months of occupying the unit, or if the tenant ceases to operate a State-licensed Small Family Child Care Home at any point in time within ten years from the date the Designated Child Care Unit is first leased to a tenant to operate a State-licensed Small Family Child Care Home, all tenants in the Unit shall be required to vacate the unit within 180 days, provided that if a Small Family Child Care Home has operated in the unit for ten years or more, a tenant who operated a Small Family Child Care Home in the unit will not be required to vacate the unit after such 10-year period;

(2) At least one-third of the children served by the Small Family Child Care Home shall be from Households of Lowor Moderate-income, as defined in Section 401; and

(3) The Small Family Child Care Home established in any Designated Child Care Unit shall serve at least four children of whom the operator of the Small Family Child Care Home is not a parent or guardian, based on an average over the previous 12 months.

(e) Option to Provide Designated Child Care Units in the Ground Floor on Commercial Street Frontages. On

street frontages where ground floor commercial uses are required pursuant to Section 145.4 of this Code, a Designated Child Care Unit may be considered an Active Commercial Use if the unit meets all of the following requirements:

• (1) The Dwelling Unit is a Rental Unit, as defined in Planning Code Section 401;

• (2) The Designated Child Care Unit shall have two or more bedrooms and shall be 1,000 square feet or more;

(3) If a Designated Child Care Unit is being added to an existing building in the ground floor commercial space, and it is not physically possible to provide two code-complying bedrooms, such Designated Child Care Unit shall have one bedroom and shall be 1,000 square feet or more;

(4) No more than one Designated Child Care Unit shall be permitted in each building;

(5) The Dwelling Unit is eligible to be designated a below market rate unit affordable to moderate-income

households, which 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 such dwelling unit, but the Dwelling Unit may not be an On-site or Off-site Affordable Housing Unit, as required by Planning Code Sections 415 et seq. establishing the Inclusionary Affordable Housing Program;

(6) A State-licensed Small Family Child Care Home is provided in such Dwelling Unit and complies with the applicable requirements set forth in Planning Code Section 414A.6(d) for a Designated Child Care Unit;

(7) If a Designated Child Care Unit no longer provides a State-licensed Small Family Child Care Home in the unit, the owner of the project in which the unit is located shall provide notice to the Mayor’s Office of Housing and Community Development (MOHCD) and the Office of Early Care and Education within 30 days. All tenants in the Unit shall be required to vacate the unit within 180 days. The owner of the project in which the Designated Child Care Unit is located shall allow MOHCD, as assisted by the Office of Early Care and Education, to attempt to fill that unit with a Tenant eligible under the Inclusionary Affordable Housing Program who is also an eligible operator of a Small Family Child Care Home. If, in the determination of the Office of Early Care and Education, the tenant fraudulently did not intend to operate a State-licensed Small Family Child Care Home in the unit within nine months of occupying the unit, all tenants in such unit shall be required to vacate the unit within 60 days. MOHCD shall use its best efforts to fill such vacated unit with a Tenant registered with the Office of Early Care and Education and licensed to provide Small Family Child Care Home who also meets the Income restrictions for a Designated Unit; and

(8) The Designated Child Care Unit shall provide a State-licensed Small Family Child Care Home in the Designated Child Care Unit for a minimum of 15 years. In the event one or more tenants has provided such child care in the Designated Child Care Unit for 15 years, the existing tenant who has provided a State-licensed Small Family Child Care Home in the Designated Child Care Unit shall not thereafter be obligated to vacate the unit if such tenant ceases to provide a State-licensed Small Family Child Care Home in the Designated Child Care Unit, and shall be permitted to remain in the Unit until such tenant elects to vacate or fails to comply with the laws applicable to occupancy of the Unit. Upon such vacation, the Unit shall not be designated a below market rate unit, and the owner may rent the Unit at market rate. (Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016, Oper. 7/19/2016; amended by Ord. 7-19, File No. 180917, App. 1/25/2019, Eff. 2/25/2019)

AMENDMENT HISTORY

Divisions (a), (a)(3)-(5), and (b) amended; table amended and designated as Table 414A.6A; division (c) amended and redesignated as divisions (c), (c)(1)(C), and (d); new divisions (c)(1)- (c)(1)(B) and (c)(2)(A)-(B) added; former divisions (c)(1)-(3) amended and redesignated as (d)(1)- (d)(3); divisions (e)-(e)(8) added; Ord. 7-19, Eff. 2/25/2019.

All monies contributed pursuant to the provisions of Section 414A shall be deposited in the Child Care Capital Fund established by Section 414.14 of this Code.

(Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016)

Whenever a Designated Unit becomes available for rent, within 5 business days, the owner of the Unit shall notify governmental and nonprofit entities that can assist in publicizing the availability of the Unit, including, at a minimum, the following entities: the Office of Early Care and Education, the Family Child Care Association of San Francisco, the Children's Council, and Wu Yee Children's Services.

(Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016) [INCLUSIONARY AFFORDABLE HOUSING PROGRAM]

(Added by Ord. 187-23, File No. 230769, App. 9/14/2023, Eff. 10/15/2023, Oper. 11/1/2023; Ord. 201-23, File No. 230855, App. 10/12/2023, Eff. 11/12/2023, Oper. 11/1/2023)

In order to encourage the construction of residential and live/work development projects that have been Finally Approved prior to November 1, 2023, but have not procured a First Construction Document, the City hereby establishes a temporary program to: (1) reduce certain inclusionary affordable housing fees and obligations; (2) extend the time such developments have to obtain a site permit after project approval; and (3) allow the modification of certain findings required by Planning Code Section 206.6 (“State Density Bonus Program: Individually Requested.”) (Added by Ord. 187-23, File No. 230769, App. 9/14/2023, Eff. 10/15/2023, Oper. 11/1/2023; Ord. 201-23, File No. 230855, App. 10/12/2023, Eff. 11/12/2023, Oper. 11/1/2023)

The following terms shall have the following definitions:

“Pipeline Project” means a residential or live/work project that (1) is subject to the Inclusionary Affordable Housing Ordinance, Planning Code Section 415.1 et seq. , and (2) was Finally Approved prior to November 1, 2023, and (3) has not been issued a First Construction Document prior to November 1, 2023.

“Finally Approved” or “Final Approval” shall mean (1) approval of a project’s first Development Application, unless such approval is appealed; or (2) if a project only requires a building permit, planning approval of the first site or building permit, unless such permit is appealed; or (3) if the first Development Application or first site or building permit is appealed, then the final decision upholding the Development Application, or first site or building permit, on the appeal by the relevant City Board or Commission. “Finally Approved” or “Final Approval” shall not include any modification of the approval under Section 415A.5.

(Added by Ord. 187-23, File No. 230769, App. 9/14/2023, Eff. 10/15/2023, Oper. 11/1/2023; Ord. 201-23, File No. 230855, App. 10/12/2023, Eff. 11/12/2023, Oper. 11/1/2023; amended by Ord. 68-24, File No. 240070, App. 4/4/2024, Eff. 5/5/2024)

AMENDMENT HISTORY Definition of “Finally Approved” amended; Ord. 68-24, Eff. 5/5/2024.

This Section 415A shall apply to Pipeline Projects. This Section 415A shall not apply to (1) any mixed-use project that has entered into a development agreement executed pursuant to Chapter 56 of the Administrative Code or other similar binding agreement with the City on or before November 1, 2023, or (2) projects that have chosen to comply with affordable housing requirements by dedicating land, including but not limited to projects meeting the requirements set forth in Sections 419.5(a)(2) or 249.33(b)(16), or (3) projects that have paid development impact fees, including inclusionary impact fees, on or before November 1, 2023.

(Added by Ord. 187-23, File No. 230769, App. 9/14/2023, Eff. 10/15/2023, Oper. 11/1/2023; Ord. 201-23, File No. 230855, App. 10/12/2023, Eff. 11/12/2023, Oper. 11/1/2023)

On or before November 1, 2026, project sponsors of Pipeline Projects shall be entitled to request a modification under Section 415A.5 to that project’s conditions of approval, conditions on a project permit, notice of special restrictions, or other requirements related to: (1) specified requirements of the Inclusionary Affordable Housing Program, Planning Code Section 415.1 et seq. , or other applicable inclusionary housing requirement; (2) conditions that require a project sponsor to obtain a site permit within a certain timeframe after project approval; and (3) findings required by Planning Code Section 206.6. Except as specifically set forth herein, or as modified under the procedure set forth in subsection 415A.5, Pipeline Projects shall comply with all other conditions of approval, conditions on a project permit, or notice of special restrictions and any applicable requirements of the Planning Code, including the requirements set forth in Sections 415.1 through 415.11. Project sponsors may request the following modifications:

(a) Affordable Housing Fee. If a project sponsor of a Pipeline Project elected to pay the inclusionary housing fee pursuant to Section 415.5, the project shall be entitled to a modification of the inclusionary housing requirements set forth in Section 415.5(b)(1)(A), 415.5(b)(1)(B) or 415.5(b)(1)(C), or if applicable 415.3(b)(2)(A) through (2)(C), as follows:

(1) For Ownership or Rental Housing Pipeline Projects consisting of 10 units or more, the applicable percentage shall be 16.4%.

(2) For any Pipeline Project consisting of 10 units or more located in an area with a specific affordable housing requirement set forth in a Special Use District, Area Plan, or in any other section of the Code, including 415.3(d), 419, or 428, the applicable percentage shall be 54.5% of the rate for Rental Housing Projects in the specific area, rounded to the

nearest tenth of one percent. This reduction shall not apply to fees subject to the Temporary Fee Reduction Program set forth in Section 403.

(3) Notwithstanding subsection (2), in no case shall a Pipeline Project be entitled to a modification of an affordable housing fee that would result in an applicable percentage lower than 16.4%.

(b) On-site Affordable Housing Alternative. If a project sponsor of a Pipeline Project elected to provide on-site affordable units pursuant to Section 415.5(g), the development project shall be entitled to the following modifications to the on-site percentages in Sections 415.6(a)(1), 415.6(a)(2), or 415.6(a)(3), or if applicable, the on-site percentages set forth in Sections 415.3(b)(1)(A) to (b)(1)(D), or Section 206.3:

(1) For Pipeline Projects consisting of 10 units or more, but less than 25 units, the applicable percentage shall be 12%.

(2) For Pipeline Projects consisting of 25 units or more, the number of Affordable Units constructed on-site shall be 12% of all units constructed on the project site. Such projects shall ensure that a minimum of 8% of the units are affordable to low-income households, 2% are affordable to moderate-income households, and 2% are affordable to middle-income households.

(3) For any Pipeline Project consisting of 10 units or more that is located in an area with a specific affordable housing on-site requirement set forth in a Special Use District, Area Plan, or in any other section of the Code, including Sections 415.3(b)(1)(E), 415.3(d), 419, or 428, the applicable percentage shall be 54.5% of the rate for Rental Housing Projects in that specific area, rounded to the nearest tenth of one percent. For any Pipeline Project consisting of 10 units or more that was approved pursuant to Section 206.3, the applicable percentage shall be 54.5% of the rate in Section 206.3(f).

(4) Notwithstanding subsection (3), in no case shall a Pipeline Project be entitled to a modification of an on-site affordable housing obligation that would result in an applicable percentage lower than 12%.

(c) Off-Site Affordable Housing Alternative. If a project sponsor of a Pipeline Project elected to provide off-site units pursuant to Section 415.5(g), the development project shall be entitled to a modification of the requirements in Section 415.7(a) as follows:

(1) For Pipeline Projects consisting of 25 units or more, the applicable percentage shall be 16.4%. Such projects shall ensure that a minimum of 9.4% of the units are affordable to low-income households, 4% are affordable to moderateincome households, and 3% are affordable to middle-income households.

(2) For any Pipeline Project consisting of 25 units or more located in an area or Special Use District or in any other section of the Code, including Sections 415.3(d), 419, and 428 with a specific affordable housing requirement, the applicable percentage shall 54.5% of the rate for Rental Housing Projects in the specific area, rounded to the nearest tenth of one percent.

(3) Notwithstanding subsections (1) and (2), in no case shall a Pipeline Project be entitled to a modification of the off-site affordable housing alternative that would result in a percentage lower than 16.4%.

(d) Site Permit and First Construction Document Timing Requirements; Conditions of Approval.

(1) Notwithstanding any contrary provision in this Code, project sponsors of Pipeline Projects shall be entitled to a modification under Section 415A.5 of any conditions of approval or conditions on a project permit, requiring procurement of a site permit within a specified time, but in no event may such a deadline be extended past May 1, 2029.

(2) Notwithstanding any contrary provision in this Code, any modification under Section 415A.5 shall require as a condition that the project sponsor procure a First Construction Document on or before May 1, 2029. Failure to meet this condition shall invalidate the modification. Pipeline Projects that fail to procure a First Construction Document on or before May 1, 2029 shall be subject to the Inclusionary Affordable Housing requirements in effect on May 1, 2029 that are applicable to a project at the same location, size, and tenure.

(e) Density Bonus Projects: Affordability Levels, Concessions, Incentives and Waivers. If a Pipeline Project elected to proceed under the State Density Bonus law, Government Code section 65915 and/or Planning Code section 206.6. 1 (State Density Bonus Program: Individually Requested), the project sponsor may request the following modifications to a

condition of approval or regulatory agreement pursuant to Section 415A.5, provided that the project continues to meet the requirements of the State Density Bonus law and/or Section 206.6:

(1) the number of units to be restricted as affordable units and the affordability levels of those units;

(2) the number and type of concessions, incentives, and waivers granted under 206.6(e).

(Added by Ord. 187-23, File No. 230769, App. 9/14/2023, Eff. 10/15/2023, Oper. 11/1/2023; Ord. 201-23, File No. 230855, App. 10/12/2023, Eff. 11/12/2023, Oper. 11/1/2023)

AMENDMENT HISTORY

Section re-added; divisions (a)-(b), (b)(1)-(3), and (c)(1)-(3) amended as (a)-(b), (b)(2)-(4), and (c)(2)-(4); new divisions (b)(1) and (c)(1) added; Ord. 201-23, Eff. 11/12/2023.

CODIFICATION NOTE

1. So in Ord. 187-23 and 201-23.

The purpose of this Section 415A.5 is to provide for the efficient review and approval of requests for modifications to conditions of approval, conditions on a project permit, or notice of special restrictions, for projects eligible for such modifications under Section 415A. The Planning Commission shall be responsible for reviewing and approving such requests, or may delegate those functions to the Planning Director.

(a) Planning Commission Review. Notwithstanding Section 415A.5(b), any modification of the conditions of approval, conditions on a project permit, or notice of special restrictions consistent with Section 415A that would result in the significant modification of approved plans shall require review and approval by the Planning Commission under the modification process otherwise applicable to the project, including but not limited to Planning Code Sections 303(e), 309(j) or 329(f)(7))1 . All modifications pursuant to this subsection 415A.5(a), including any appeal of such modifications, shall be granted prior to November 1, 2026. A significant modification shall include, but is not limited to:

(1) a change in the number of Residential or Group Housing units by more than 20%, or a change of more than 10% in Gross Floor Area; or,

(2) a change of use from Dwelling Units to Group Housing.

(b) Administrative Modifications. Notwithstanding Section 415A.5(a), if the Planning Commission has delegated its authority to the Planning Department to review and approve requests for modifications consistent with Section 415A.5, the following modifications shall be reviewed and approved by the Director of the Planning Department, and the Planning Commission shall not hold a public hearing for discretionary review. Modifications under this subsection 415A.5(b) shall not be subject to review under Planning Code sections 303(e), 309(f), 309(j) or 329(f)(7). Any modifications pursuant to this Section 415A.5(b) must be granted prior to November 1, 2026. If so delegated, the Planning Director shall be authorized to modify:

(1) the applicable inclusionary fee required consistent with Section 415A.4(a).

• (2) the applicable percentage of off-site units required consistent with Section 415A.4(b).

(3) the applicable percentage of on-site units required, consistent with Section 415A.4(c).

(4) for projects that elected to develop using the State Density Bonus Law, Government Code section 65915 or State Density Bonus Program: Individually Requested, under Planning Code section 206.6, the number of on-site Affordable Units, and the affordability levels of those units if such levels require modification for the project to continue to qualify for the same amount of density bonus previously approved, and findings required by Section 206.6(e) related to eligibility for a density bonus, concessions and incentives and/or waivers of development standards, consistent with Section 415A.4(e). Notwithstanding the previous sentence, modifications to a density bonus project that are significant as set forth in subsection (a), shall be reviewed by the Planning Commission.

• (5) performance standards consistent with Section 415A.4(d), including the time of validity, expiration and renewal.

(c) Additional Conditions. Any modification to conditions of approval under this Section 415A.5 shall include a condition that a project must secure a First Construction Document on or before May 1, 2029 and if a project sponsor fails to secure a First Construction Document on or before May 1, 2029, the inclusionary requirements applicable to the project shall be those requirements in place at the time a First Construction Document is secured applicable to a project of the same size, location, and tenure.

(Added by Ord. 187-23, File No. 230769, App. 9/14/2023, Eff. 10/15/2023, Oper. 11/1/2023; Ord. 201-23, File No. 230855, App. 10/12/2023, Eff. 11/12/2023, Oper. 11/1/2023) CODIFICATION NOTE

1. So in Ord. 187-23 and 201-23.

This Section 415A shall expire by operation of law on May 1, 2029, unless extended by an ordinance effective on or before that date. Upon expiration of this Section 415A, the City Attorney shall cause the section to be removed from the Planning Code.

(Added by Ord. 187-23, File No. 230769, App. 9/14/2023, Eff. 10/15/2023, Oper. 11/1/2023; Ord. 201-23, File No. 230855, App. 10/12/2023, Eff. 11/12/2023, Oper. 11/1/2023)

New Ordinance Notice

Publisher's Note: This section has been ADDED by new legislation (Ord. 201-23 , approved 10/12/2023, effective 11/12/2023, oper. 11/1/2023). The text of the amendment will be incorporated under the new section number when the amending legislation is effective.

In order to encourage construction of residential and live/work development projects subject to the Inclusionary Affordable Housing Program, Planning Code Sections 415.1 et seq ,1 this Section 415B shall apply to housing and

live/work development projects that are Finally Approved, as defined in Planning Code Section 415A.2, between November 1, 2023 and November 1, 2026, provided that such projects receive a First Construction Document within 30 months from Final Approval. Such deadline shall be extended in the event of any litigation seeking to invalidate the City’s approval of such project, for the duration of the litigation. Housing development projects that fail to obtain a First Construction Document within 30 months of Final Approval shall be subject to the requirements of Section 415.1 et seq. in effect on the date a First Construction Document is finally obtained. Except as specifically set forth herein, all other Inclusionary Affordable Housing requirements in Sections 415.1 et seq 1 shall continue to apply.

(Added by Ord. 187-23, File No. 230769, App. 9/14/2023, Eff. 10/15/2023, Oper. 11/1/2023; Ord. 201-23, File No. 230855, App. 10/12/2023, Eff. 11/12/2023, Oper. 11/1/2023)

CODIFICATION NOTE

1. So in Ord. 187-23 and 201-23.

If a project sponsor elects to pay the affordable housing fee under Section 415.5, the project shall comply the requirements set forth in Section 415.6(b)(1), except as follows:

(a) For any housing development consisting of 25 units or more, the applicable percentage shall be 20.5%.

(b) For any housing development located in an area with a specific affordable housing requirement set forth in a Special Use District, Area Plan, or in any other section of the Code, including 415.3(d), 419, or 428, the percentage shall

be 68% of the rate applicable to Rental Housing Projects, rounded to the nearest tenth of one percent. This section shall not apply to fees subject to the Temporary Fee Reduction Program set forth in Section 403.

(Added by Ord. 187-23, File No. 230769, App. 9/14/2023, Eff. 10/15/2023, Oper. 11/1/2023; Ord. 201-23, File No. 230855, App. 10/12/2023, Eff. 11/12/2023, Oper. 11/1/2023)

If a project sponsor elects to provide on-site Affordable Units pursuant to Section 415.5(g), the housing development shall be subject to the following required percentages rather than the percentage of units set forth in Section 415.6(a): (a) For any housing development consisting of 25 or more units, the number of Affordable Units constructed on-site shall be 15% of all units constructed on the project site. Project sponsors shall ensure that a minimum of 10% of the Affordable Units shall be affordable to low-income households, 2.5% of the Affordable Units shall be affordable to moderate-income households, and 2.5% of the Affordable Units shall be affordable to middle-income households.

(b) For any housing development located in an area with a specific affordable housing requirement set forth in a Special Use District, Area Plan, or in any other section of the Code such as Section 415.3(d), 419, or 428, the percentage shall be 68% of the rate applicable to Rental Housing Projects in such area, rounded to the nearest tenth of one percent. (Added by Ord. 187-23, File No. 230769, App. 9/14/2023, Eff. 10/15/2023, Oper. 11/1/2023; Ord. 201-23, File No. 230855, App. 10/12/2023, Eff. 11/12/2023, Oper. 11/1/2023)

AMENDMENT HISTORY

Section re-added; undesignated paragraph amended; Ord. 201-23, Eff. 11/12/2023.

If a project sponsor elects to provide off-site units to satisfy the requirements of Section 415.1 et seq. pursuant to 415.5(g)(1)(B), the housing development project shall be subject to the requirements of Section 415.7(a), except as follows:

(a) For any housing development consisting of 25 units or more, the applicable percentage shall be 20.5%. Project sponsors shall ensure that a minimum of 11.5% of the Affordable Units shall be affordable to low-income households, 5% of the Affordable Units shall be affordable to moderate-income households, and 4% of the Affordable Units shall be affordable to middle-income households.

(b) For any housing development that is located in an area with a specific off-site affordable housing requirement set forth in a Special Use District, Area Plan, or in any other section of the Code including Section 415.3(d), 419, or 428, the percentage shall be 68% of the applicable rate for Rental Housing Projects in the area, rounded to the nearest tenth of one percent.

(Added by Ord. 187-23, File No. 230769, App. 9/14/2023, Eff. 10/15/2023, Oper. 11/1/2023; Ord. 201-23, File No. 230855, App. 10/12/2023, Eff. 11/12/2023, Oper. 11/1/2023)

Notwithstanding any other provision of the Code, during the period that this Section 415B applies:

(a) the amount of the inclusionary housing fee shall be adjusted consistent with the factors set forth in Sections 415.5(b)(2) and 415.5(b)(3), but in no case shall the fee be increased by more than 2% annually; and

(b) the provisions of 415.6(a)(5) shall not apply. (Added by Ord. 187-23, File No. 230769, App. 9/14/2023, Eff. 10/15/2023, Oper. 11/1/2023; Ord. 201-23, File No. 230855, App. 10/12/2023, Eff. 11/12/2023, Oper. 11/1/2023)

This section 415B shall expire by operation of law on November 1, 2026, unless extended by an ordinance on or effective before that date. Upon expiration of this Section 415B, the City Attorney shall cause the section to be removed from the Planning Code.

(Added by Ord. 187-23, File No. 230769, App. 9/14/2023, Eff. 10/15/2023, Oper. 11/1/2023; Ord. 201-23, File No. 230855, App. 10/12/2023, Eff. 11/12/2023, Oper. 11/1/2023)

[AFFORDABLE HOUSING: MARKET AND OCTAVIA AREA PLAN;

UPPER MARKET NEIGHBORHOOD COMMERCIAL DISTRICT]

(Ord. 270-10, File No. 100917, App. 11/5/2010; repealed by Ord. 71-14 , File No. 131205, App. 5/23/2014, Eff. 6/22/2014)

[PUBLIC ART FEE]