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See Section 401 of this Article.
"Gross Square Footage" shall have the meaning set forth in Section 102.
"Eastern Neighborhood Controls" shall have the meaning set forth in Section 175.6(c)(1).
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 22-15, File No. 141253, App. 2/20/2015, Eff. 3/22/2015)
AMENDMENT HISTORY
Section amended; Ord. 22-15, Eff. 3/22/2015.
(a) Application. The alternate Affordable Housing Fee described in this Section shall only apply to development projects that are subject to the Eastern Neighborhood Controls, consist of 20 units or less or less than 25,000 gross square feet, and are subject to the requirements of Sections 415 through 415.9 and 419, and any stated exceptions elsewhere in this Code, including the specific provisions in Section 419.
(b) Amount of Fee. Any sponsor of a development projects subject to this Section may choose to pay an alternate fee equal to $40.00 per gross square foot of net new residential development instead of the standard Affordable Housing Fee requirements set forth in Section 415.5 as follows.
(c) Calculation of Gross Square Feet of Residential Area. The calculation of gross square feet shall not include nonresidential uses, including any retail, commercial, or PDR uses, and all other space used only for storage and services necessary to the operation or maintenance of the building itself.
(d) Timing of Fee Payments. The Eastern Neighborhoods Alternate Affordable Housing Fee shall be paid to DBI for deposit into the Citywide Affordable Housing Fund at the time required by Section 402(d).
AMENDMENT HISTORY
(a) Determination of Requirements. The Department shall determine the applicability of Section 417.1 et seq. to any development project requiring a first construction document and, if Section 417.1 et seq. is applicable, shall impose any such requirements as a condition of approval for issuance of the first construction document for the 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 regarding the application of the affordable housing requirements to a development project pursuant to Section 417.1 et seq., it shall immediately notify the Development Fee Collection Unit at DBI of the applicable affordable housing fee amount in addition to the other information required by Section 402(b) of this Article.
(c) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Section 417.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) shall be followed.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 55-11, File No. 101523, App. 3/23/2011)
The Eastern Neighborhoods Area Plan Alternate Affordable Housing Fee shall be paid into the Citywide Affordable Housing Fund, but the funds shall be separately accounted for. MOH shall expend the funds according to the following priorities: First, to increase the supply of housing Affordable to Qualifying Households in the Eastern Neighborhoods Project Areas; second, to increase the supply of housing Affordable to Qualifying Households within one mile of the boundaries of the Eastern Neighborhoods Project Areas; third, to increase the supply of housing Affordable to Qualifying Households in the City and County of San Francisco. The funds may also be used for monitoring and administrative expenses subject to the process described in Section 415.5(e). All monies contributed pursuant to the Eastern Neighborhoods Area Plan Alternate Affordable Housing Fee and collected within the Central SoMa Special Use District shall be paid into the Citywide Affordable Housing Fund, but the funds shall be separately accounted for. Such funds shall be expended within the area bounded by Market Street, the Embarcadero, King Street, Division Street, and South Van Ness Avenue.
AMENDMENT HISTORY
[RINCON HILL COMMUNITY IMPROVEMENTS FUND AND SOMA COMMUNITY STABILIZATION FUND]
Sections 418.1 through 418.7, hereafter referred to as Section 418.1 et seq., set forth the requirements and procedures for the Rincon Hill Community Improvements Fund and the SOMA Community Stabilization Fund. The effective date of these requirements is either August 19, 2005, which is the date that the requirements originally became effective, or the date a subsequent modification, if any, became effective.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 270-10, File No. 100917, App. 11/5/2010)
(a) Purpose. The Board takes legislative notice of the purpose of the Rincon Hill Area Plan as articulated in the Rincon Hill Area Plan of the San Francisco General Plan. In general, the Rincon Hill Area Plan aims to transform Rincon Hill into a mixed-use downtown neighborhood with a significant housing presence, while providing the full range of services and amenities that support urban living. In addition, the Board notes the findings made in the Rincon Hill Area Plan that support the establishment of the Rincon Hill Community Improvements Fund specifically that Rincon Hill is lacking in open space facilities, pedestrian and streetscape amenities and bicycle infrastructure.
(b) Findings. The Board of Supervisors has 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 in File No. 230764 and, under Section 401A, adopts the findings and conclusions of those studies and the general and specific findings in that Section, specifically including the Recreation and Open Space Findings and Complete Streets findings, and incorporates those by reference herein to support the imposition of the fees under this Section.
The Board takes legislative notice of the findings supporting the fees in former Planning Code Section 418.1 (formerly Section 318.1) and the materials associated with Ordinance No. 217-05 in Board File No. 050865. To the extent that the Board previously adopted fees in this Area Plan that are not covered in the analysis of the four infrastructure areas analyzed in the Nexus Analysis, including but not limited to fees related to transit, the Board continues to rely on its prior analysis and the findings it made in support of those fees.
(c) SoMa Community Stabilization Fund. The development of the Rincon Hill Area Plan will also have economic impacts on the immediately surrounding area of SoMa. Specifically, the development will have impacts on affordable housing, economic and community development, and community cohesion in SoMa.
(1) Housing. The Board has adopted extensive findings documenting generally the need for housing and particularly affordable housing and the impact of market rate housing development on the need for affordable housing in Section 415.1 and incorporates those findings herein. The proposed new development in the Rincon Hill area will also lead to increased home prices and increased rental rates in the immediate Rincon Hill area and the surrounding South of Market area. This new development and corresponding increase in prices in the Rincon Hill area will cause displacement of existing residents.
New development in the Rincon Hill area will be marketed to higher income groups than other new development in San Francisco. Higher income groups have a higher demand for services than other income groups, so a higher number of workers will need to be housed in the area. Workers in the service industry generally make less than median income. The development in Rincon Hill represents the development of a disproportionate share of the available land for remaining housing development in the City.
The new development creates the need for additional affordable housing in the South of Market neighborhood and the need to provide subsidies for existing residents so that they will not be displaced and can continue living in their current neighborhood. In order to avoid displacement from the new development, residents will also need financial support to avoid eviction.
In addition, through the amendments to the Rincon Hill Area Plan and related zoning maps, the overall development capacity of the Rincon Hill area will be increased by (1) increasing permitted height and bulk, (2) eliminating residential density limits by lot area, and (3) establishing a minimum residential to commercial use ratio. Existing permitted heights range from 80 feet up to a maximum of 250 feet. The new Rincon Hill zoning would increase heights up to 400 - 550 feet in selected locations. The permitted bulk for residential towers will be increased from a maximum floor plate of 7,500 sf to a range from 7,500 - 10,000 sf. The area's existing RC-4 zoning has a maximum permitted residential density of 1 unit per 200 of lot area; this limit will be eliminated and the height and bulk envelope will control the maximum development permitted. Thus project sponsors in the area are receiving a substantial increase in density over what is currently permitted.
(2) Economic and Community Development. The new development in Rincon Hill will also change the economic landscape of the Rincon Hill area and the South of Market area. The new development in Rincon Hill will displace small businesses directly by focusing development in the neighborhood on residential development and indirectly due to higher rents and higher prices for real estate. Thus existing small businesses need financial assistance to avoid being displaced.
The new development in the Rincon Hill area will also affect the type of jobs available in the Rincon Hill and South of Market area. Current residents of SoMa are employed in the Rincon Hill and SoMa area. New development in the Rincon Hill area will concentrate on residential development, thus pushing out other uses including light industrial uses and small business. Local workers will need to be retrained to avoid job displacement from the development in the Rincon Hill area. Financial assistance will support employment development, job placement, job development, and other forms of economic capacity building for SoMa residents to ameliorate the effects of the economic displacement. The City benefits from having workers live near to their work places in reduced commute times for residents, and reduced traffic congestion and associated pollution.
(3) Community Cohesion. New development in the Rincon Hill area in such a vast quantity and of such a different character as currently exists will change the social fabric of the neighborhood. Programs to promote leadership development, community cohesion, and civic participation will also ameliorate the negative economic and social consequences of the new development in Rincon Hill on the residents and small businesses in Rincon Hill and the broader South of Market community.
AMENDMENT HISTORY
See Section 401 of this Article.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
(a) Application. Section 418.1 et seq. shall apply to any development project located in the Rincon Hill Community Improvements Program Area
(b) Projects subject to the Rincon Hill Community Infrastructure Impact Fee. The Rincon Hill Community Infrastructure Impact Fee is applicable to any development project in the Rincon Hill Program Area which results in:
(1) At least one net new residential unit,
(2) Additional space in an existing residential unit of more than 800 gross square feet,
(3) At least one net new group housing facility or residential care facility,
(4) Additional space in an existing group housing or residential care facility of more than 800 gross square feet,
(c) Fee Calculation for the Rincon Hill Community Infrastructure Impact Fee. For development projects for which the Rincon Hill Community Infrastructure Impact Fee is applicable:
(1) Any net addition of gross square feet shall pay per the Fee Schedule in Table 418.3A, and
(2) Any replacement of gross square feet or change of use shall pay per the Fee Schedule in Table 418.3B.
Residential | $8.60/gsf |
Residential to Residential or Non-residential; Non-residential to Non-residential; or PDR to Non-Residential | Non-Residential to Residential | PDR to Residential |
$0 | $5.00/gsf | $6.80/gsf |
(d) Projects Subject to and Fee Calculation for the SOMA Community Stabilization Fee. The SOMA Community Stabilization Fee shall be $10.95 per net addition of gross square feet of residential use in any development project with a residential use within the Program Area.
(e) Option for In-Kind Provision of Community Infrastructure and Fee Credits. Project sponsors may propose to directly provide community improvements to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a fee waiver for the Rincon Hill Community Infrastructure Impact Fee from the Planning Commission, subject to the following rules and requirements:
(1) Approval criteria. The City shall not enter into an In-Kind Agreement unless the proposed in-kind improvements meet an identified community need and where they substitute for improvements that could be provided by the Rincon Hill Community Improvements Fund (as described in Section 418.5). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Rincon Hill Area Plan, by the Interagency Plan Implementation Committee (see Section 36 of the Administrative Code), or other prioritization processes related to Rincon Hill community improvements programming. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of this In-Kind Improvements Agreement.
(2) Valuation. The Director of Planning shall determine the appropriate value of the proposed in-kind improvements. For the purposes of calculating the total value, the project sponsor shall provide the Planning Department with a cost estimate for the proposed in-kind improvement(s) from two independent sources or, if relevant, real estate appraisers. If the City has completed a detailed site-specific cost estimate for a planned improvement this may serve as one of the cost estimates provided it is indexed to current cost of construction.
(3) Content of the In-Kind Improvements Agreement. The In-Kind Improvements Agreement shall include at least the following items:
(i) A description of the type and timeline of the proposed in-kind improvements.
(ii) The appropriate value of the proposed in-kind improvement, as determined in subsection (2) above.
(iii) The legal remedies in the case of failure by the project sponsor to provide the in-kind improvements according to the specified timeline and terms in the agreement. Such remedies shall include the method by which the City will calculate accrued interest.
(4) Approval Process. The Planning Commission must approve the material terms of an In-Kind Agreement. Prior to the parties executing the Agreement, the City Attorney must approve the agreement as to form and to substance. The Director of Planning is authorized to execute the Agreement on behalf of the City. If the Planning Commission approves the In-Kind Agreement, it shall waive the amount of the Rincon Hill Community Infrastructure Impact Fee by the value of the proposed In-Kind Improvements Agreement as determined by the Director of Planning. No credit shall be made for land value unless ownership of the land is transferred to the City or a permanent public easement is granted, the acceptance of which is at the sole discretion of the City. The maximum value of the In-Kind Improvements Agreement shall not exceed the required Rincon Hill Community Infrastructure Impact Fee.
(5) Administrative Costs. Project sponsors that pursue an In-Kind Improvements Agreement will be billed time and materials for any administrative costs that the Planning Department or any other City entity incurs in negotiating, drafting, and monitoring compliance with the In-Kind Improvements Agreement.
(f) Option for Financing of In-Kind Community Improvements or payment of the Rincon Hill Community Infrastructure Impact Fee via a Mello-Roos Community Facilities District ("CFD"). Applicants may finance In-Kind Community Improvements (subject to subsection (f) above) or payment of the Rincon Hill Community Infrastructure Impact Fee (subject to subsection (c) above) through the formation of a CFD.
(g) Timing of Fee Payments. The Rincon Hill Community Infrastructure Impact Fee and SOMA Stabilization Fee shall be paid to DBI for deposit into the Rincon Hill Community Improvements Fund at the time required by Section 402(d).
(h) Waiver or Reduction. Development projects may be eligible for a waiver or reduction of impact fees, per Section 406 of this Article. In the event that the Board of Supervisors grants a waiver or reduction under Section 406 of this Article, it shall be the policy of the Board of Supervisors that it shall adjust the percentage of inclusionary housing in lieu fees in Section 827(b)(5)(C) of this Code such that a greater percentage of the in lieu fees will be spent in SOMA with the result that the waiver or reduction under this Section shall not reduce the overall funding to the SOMA community.
AMENDMENT HISTORY
(a) Determination of Requirements. The Department or Commission shall determine the applicability of Section 418.1 et seq. to any development project requiring a first construction document and, if Section 418.1 et seq. is applicable, the amount of Community Infrastructure Impact and SOMA Stabilization Fees required and shall impose these requirements as a condition of approval for issuance of the first construction document for the development project. The project sponsor shall supply any information necessary to assist the Department in this determination.
(b) Department's Notice to Development Fee Collection Unit at DBI. Prior to issuance of a building or site permit for a development project subject to the requirements of Section 418.1 et seq., the Department shall notify the Development Fee Collection Unit at DBI of its final determination of the amount of Community Infrastructure and SOMA Stabilization Fees required, including any fee credits for in-kind improvements, in addition to the other information required by Section 402(b) of this Article.
(c) Development Fee Collection Unit's Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing and electronically to the Department prior to issuing the first certificate of occupancy for any development project subject to Section 418.1 et seq. that has elected to fulfill all or part of the requirement with an In-Kind Improvement Agreement. If the Department notifies the Unit at such time that the sponsor has not satisfied the requirements, the Director of DBI shall deny any and all certificates of occupancy until the subject project is brought into compliance with the requirements of Section 418.1 et seq.
(d) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Section 418.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Department or the Commission, Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) shall be followed.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 55-11, File No. 101523, App. 3/23/2011)
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