(a) Application. Except as provided in Subsections (1) and (2) below, the TIDF shall be payable with respect to any new development in the City for which a building or site permit is issued on or after September 4, 2004. In reviewing whether a development project is subject to the TIDF, the project shall be considered in its entirety. A sponsor shall not seek multiple applications for building permits to evade paying the TIDF for a single development project.
(1) The TIDF shall not be payable on new development, or any portion thereof, for which a TIDF has been paid, in full or in part, under the prior TIDF Ordinance (former Chapter 38 of the Administrative Code as amended through June 30, 2010), except where
(A) Gross Square Feet of use is being added to the building; or
(B) the TIDF rate for the new development is in an economic activity category with a higher fee rate than the current rate for the economic activity category under which the TIDF was originally paid, as set forth in Section 411.3(e).
(2) No TIDF shall be payable on the following types of new development.
(A) New development on property owned (including beneficially owned) by the City, except for that portion of the new development 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 411.1 et seq., in which case the TIDF shall apply only to such non-exempted portion. New development on property owned by a private person or entity and leased to the City shall be subject to the fee, unless the City is the beneficial owner of such new development or unless such new development is otherwise exempted under this Section. Nothing in this Section shall interfere with the exclusive jurisdiction of the City's charitable trust departments under Article V of the Charter or impose the TIDF on new development by private nonprofit supporting organizations, beneficiaries, tenants, or licensees of said departments, on property under the exclusive jurisdiction of said departments. The exception established under Subsection 411.3(a)(2)(A) for new development on property beneficially owned by the City shall only be applicable where a project sponsor for a new development has filed an application for environmental evaluation, a categorical exemption or a preliminary project assessment on or before the effective date of Ordinance No. 18-14 or, for new development subject to a redevelopment plan, development agreement, interagency cooperation agreement, or other agreement entered into by the City, the project sponsor submits proof that the sponsor has submitted to the Successor Agency to the Redevelopment Agency of the City and County of San Francisco documentation comparable to that required for an application for environmental evaluation, a categorical exemption or a preliminary project assessment for the project on or before the effective date of Ordinance No. 18-14.
(B) Any new development to the extent application of this Section 411.3 to that development would violate the terms of a redevelopment plan, development agreement, interagency cooperation agreement, or other agreement entered into by the City that is valid and effective on the date that TIDF payments are due under Section 411.3(b). If any such redevelopment plan, development agreement, interagency cooperation agreement or other agreement permits some, but not all, of the TIDF to apply to a development, then the TIDF shall apply to the extent permitted.
(C) New development located on property owned by the United States or any of its agencies to be used exclusively for governmental purposes.
(D) New development located on property owned by the State of California or any of its agencies to be used exclusively for governmental purposes.
(E) New development for which a project sponsor filed an application for environmental evaluation or a categorical exemption prior to April 1, 2004, and for which the City issued a building permit or site permit on or before September 4, 2008; provided however, that such new development may be subject to the TIDF imposed by Ordinance No. 224-81, as amended through June 30, 2004, except that the administration, imposition, review and collection of any such fee shall be conducted in accordance with the administrative procedures set forth in Section 411.9. DBI and MTA shall make the text of Ordinance No. 224-81, as amended through June 30, 2004, available on their websites and shall provide copies of that ordinance upon request.
(F) The following types of new developments, except to the extent that any such new development is also captured under a more specific use under this Code that is not otherwise exempt:
(i) Public Facility, Internet Service Exchange and Utility Installation uses, as defined in Section 102 of this Code, except that this exclusion shall not apply to new development on property owned by a private person or entity and leased to the City;
(ii) Agricultural and Non-Commercial Entertainment and Recreation uses, as defined in Section 102 of this Code;
(iii) Private and Public Auto Parking Garages and Lots, as defined in Section 102 of this Code;
(iv) Automotive services, which includes Public and Private Parking Lots, Public and Private Parking Garages, Parcel Delivery Services, Ambulance Services, Vehicle Storage Lots and Garages, and Truck Terminals as defined in Section 102 of this Code, that are in a new development, where the project sponsor has met the deadline established in Section 411.3(a)(3);
(vi) Mortuary, Public Facility, Utility Installation, Public Transport Facility, Wireless Telecommunications Services Facility, Temporary Uses, Waterborne Commerce, and Internet Service Exchange Uses as defined in Section 102 of this Code, as well as Any use that is permitted as a principal use in any other C, M, or PDR District without limitation as to enclosure within a building, wall or fence.
(3) The exclusions from TIDF set forth in Section 411.3(a)(2)(F)(iv) and (v) (Automotive Services and Wholesale Storage) shall only apply where a project sponsor for a new development has filed an application for environmental evaluation, a categorical exemption or a preliminary project assessment for the project on or before the effective date of Ordinance No. 18-14, or, for new development subject to a redevelopment plan, development agreement, interagency cooperation agreement, or other agreement entered into by the City, the project sponsor submits proof that the sponsor has submitted to the Successor Agency to the former Redevelopment Agency of the City and County of San Francisco documentation comparable to that required for an application for environmental evaluation, a categorical exemption or a preliminary project assessment for the project, on or before the effective date of Ordinance No. 18-14.
(b) Timing of Payment. The TIDF shall be paid at the time of and in no event later than issuance of the first construction document, with an option for the project sponsor to defer payment until prior to issuance of the first certificate of occupancy upon agreeing to pay a deferral surcharge in accordance with Section 107A.13 of the San Francisco Building Code. Under no circumstances may any City official or agency, including the Port of San Francisco, issue a certificate of final completion and occupancy for any new development subject to the TIDF until the TIDF has been paid.
(c) Calculation of TIDF.
(1) The TIDF shall be calculated on the basis of the number of gross square feet of new development, multiplied by the square foot rate in effect at the time of issuance of the first construction document for each of the applicable economic activity categories within the new development, as provided in Subsection 411.3(e) below. An accessory use shall be charged at the same rate as the underlying use to which it is accessory, except that where any underlying use other than Residential is exempt from the TIDF under this Section, the fee shall nonetheless be charged for the accessory use unless such accessory use is otherwise exempt. Whenever any new development or series of new developments cumulatively creates more than 3,000 gross square feet of covered use within a structure, in the case of a building or site permit issued on or before January 31, 2013, or more than 800 gross square feet of covered use within a structure, in the case of a building or site permit issued on or after February 1, 2013, the TIDF shall be imposed on every square foot of such covered use (including any portion that was part of prior new development below the applicable square foot threshold).
(2) When calculating the TIDF for a development project in which there is a change of use such that the rate charged for the new economic activity category is higher than the rate charged for the existing economic activity category, the TIDF per square foot rate for the change of use shall be the difference between the rate charged for the new use and the existing use.
(3) Where a new development is subject to a redevelopment plan, development agreement, interagency cooperation agreement, or other agreement entered into by the City, and under the terms of that plan or agreement, calculation of the TIDF for the development would be different from the calculation under subparagraph (2) above, the TIDF shall be calculated in accordance with the requirements of the applicable plan or agreement.
(d) Credits. When determining the number of gross square feet of use to which the TIDF applies, the Department shall provide the following credits:
(1) Prior Use Credits. There shall be a credit for prior uses eliminated on the site. The credit shall be calculated according to the following formula:
(A) There shall be a credit for the number of gross square feet of use being eliminated by the new development, multiplied by an adjustment factor to reflect the difference in the fee rate of the use being added and the use being eliminated. The adjustment factor shall be determined by the Department as follows:
(i) The adjustment factor shall be a fraction, the numerator of which shall be the fee rate which the Department shall determine, in consultation with the MTA, if necessary, applies to the economic activity category in the most recent calculation of the TIDF Schedule approved by the Board or Supervisors for the prior use being eliminated by the project.
(ii) The denominator of the fraction shall be the fee rate for the use being added, as set forth in the most recent calculation of the TIDF Schedule approved by the Board of Supervisors.
(B) A credit for a prior use may be given only if the prior use was active on the site within five years before the date of the application for a building or site permit for the proposed use.
(C) As of September 4, 2004, no sponsor shall be entitled to a refund of the TIDF on a building for which the fee was paid under the former Chapter 38 of the San Francisco Administrative Code.
(D) Notwithstanding the foregoing, the adjustment factor shall not exceed one.
(2) Policy Credits. Development projects that meet the criteria outlined in Subsection 411.3(d)(2)(B) may receive Policy Credits, subject to the following limitations:
(A) Limit on Available Policy Credits. When making a determination under this Article for the amount of TIDF owed, the Department shall allocate available Policy Credits, described in Section 411.3(d)(2)(B), as follows:
(i) No development project shall receive a Policy Credit under Section 411.3(d)(2)(B) if the total amount of credits received by development projects under that section would exceed 3% of the total anticipated TIDF revenue for the current Fiscal Year. To the extent Policy Credits allowed in any Fiscal Year are not allocated, the unallocated amount shall be carried over to the next Fiscal Year. The amount to be carried over to the next Fiscal Year shall be calculated based upon 3% of the sum of the actual TIDF revenues collected during the current Fiscal Year and the total amount of policy credits granted during the current Fiscal Year.
(ii) In no event shall the Policy Credits for a single development exceed 100% of the total TIDF that would otherwise be due.
(B) The Planning Department shall maintain and shall make available on the Planning Department's website, a list showing:
(i) All development projects receiving Policy Credits under Section 411.3(d)(2)(C) of this Article, and, if applicable, the date(s) of approval and the issuance of any building or site permit;
(ii) The total amount of Policy Credits received with respect to each listed development project;
(iii) Any Policy Credits allocated to a development project the site permit for which is modified, cancelled, revoked, or has expired;
(iv) Such other information as the Department may determine is appropriate.
(C) Available Policy Credits. The following development projects may receive Policy Credits, subject to the limitations set forth in Section 411.3(d)(2)(A):
(i) Small Businesses. Businesses that either occupy or expand any preexisting non-residential space, provided that: (a) the gross square footage of such non-residential space is not greater than 5,000 square feet, and (b) the business is not formula retail, as defined in this Code. Only the gross square footage dedicated to such business shall be eligible for the Policy Credit.
(ii) Reduced Parking Developments. In zoning districts that set a parking maximum, development projects that provide a lower number, or ratio, of off-street parking than permitted on an as-of-right basis without conditional use authorization in Table 151.1 of this Code. The credit shall be determined by the Department as follows:
Max. Allowed in Planning Code Table 151.1 | 50% of Max. or less | More than 50% but less than 60% of Max. | 60% or more but less than 75% of Max. | 75% or more but less than 90% of Max. | 90% of Max. or more |
TIDF Credit | 90% | 80% | 50% | 20% | 0% |
(D) Process for Allocation of Policy Credits. The Policy Credits described in this Section shall be allocated to qualifying development projects by the Zoning Administrator at the moment their first entitlement is approved by the Planning Commission or the Planning Department. In addition, the following considerations shall apply:
(i) If a development project is modified for any reason after it is first approved, and such modification would result in a potential increase in the amount of Policy Credits allocated to it, the development project shall maintain the credits allocated on the list described in Section 411.3(d)(2)(B). Any additional credit may only be allocated at the time such modification is approved, subject to the limits of Section 411.3(d)(2)(A)(i).
(ii) If a development project is modified for any reason after it is first approved, and such modification would result in a potential decrease in the amount of Policy Credits allocated to it, the remainder Policy Credits shall become available for other qualifying development projects during the approval period on account of such a modification.
(iii) The maximum amount of Policy Credits available for the approval period shall be increased by the amount of Policy Credits allocated to a development project for which an issued site or building permit has been finally cancelled or revoked, or has expired, with the irrevocable effect of preventing construction of the development.
(3) Limitation. In no event shall the combined Policy Credits and Prior Use Credits for a single development exceed 100% of the total TIDF that would otherwise be due.
(e) TIDF Schedule. The TIDF Schedule shall be as follows:
Economic Activity Category or Subcategory | TIDF Per Gross Square Foot of Development |
Economic Activity Category or Subcategory | TIDF Per Gross Square Foot of Development |
Cultural/Institution/Education | |
Day Care/Community Center | $13.30 |
Post-Secondary School | $13.30 |
Museum | $11.05 |
Other Institutional | $13.30 |
Management, Information and Professional Services | $12.64 |
Medical and Health Services | $13.30 |
Production/Distribution/Repair | $6.80 |
Retail/Entertainment | $13.30 |
Visitor Services | $12.64 |
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 55-11, File No. 101523, App. 3/23/2011; Ord. 196-11
, File No. 110786, App. 10/4/2011, Eff. 11/3/2011; Ord. 247-12
, File No. 120523, App. 12/18/2012, Eff. 1/17/2013; Ord. 18-14
, File No. 130938, App. 3/5/2014, Eff. 4/4/2014; Ord. 22-15, File No. 141253, App. 2/20/2015, Eff. 3/22/2015; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 188-15
, File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 166-16
, File No. 160477, App. 8/11/2016, Eff. 9/10/2016)
AMENDMENT HISTORY
Division (a)(2)(F)(vi) amended; Ord. 196-11
, Eff. 11/3/2011. Divisions (a)(1), (a)(2)(A), (a)(2)(E), (a)(2)(F), (a)(2)(F)(i), and (a)(2)(F)(iv)-(vi) amended; division (a)(3) added; former division (c) redesignated as division (c)(1) and amended; division (c)(2) added; division (d) amended; new division (d)(1) added; former division (d)(1) redesignated as division (d)(1)(A) and all subdivisions thereof redesignated accordingly; divisions (d)(1)(A)(i) and (ii) amended; divisions (d)(2) and (d)(3) added; division (e) amended; Ord. 247-12
, Eff. 1/17/2013. Divisions (a)(2)(A), (a)(2)(B), (a)(3), and (c)(1) amended; division (c)(3) added; Ord. 18-14
, Eff. 4/4/2014. Divisions (a)(2)(F)(i)-(vi), (a)(3), (b), and (d)(2)(D)(i) amended; Ord. 22-15, Eff. 3/22/2015. Division (b) amended; Ord. 50-15
, Eff. 5/24/2015. Division (a)(2)(B) amended; other nonsubstantive changes; Ord. 188-15
, Eff. 12/4/2015. Division (a)(2)(F)(vi) amended; Ord. 166-16
, Eff. 9/10/2016.