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(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)
(a) There is hereby established a separate fund set aside for a special purpose entitled the Rincon Hill Community Improvements Fund ("Fund"). All monies collected by the Development Fee Collection Unit at DBI pursuant to Section 418.3 shall be deposited in the Fund maintained by the Controller. The receipts in the Fund shall be appropriated in accordance with law through the normal budgetary process to fund public infrastructure and other allowable improvements subject to the conditions of this Section.
(b) Use of Funds.
(1) Rincon Hill Infrastructure. All monies deposited in the Fund shall be used solely to design, engineer, acquire, improve, and develop neighborhood recreation and open spaces, pedestrian and streetscape improvements, and bicycle infrastructure that result in new publicly-accessible facilities or other allowable improvements within the Rincon Hill Downtown Residential (DTR) District or within 250 feet of the District. These expenditures shall be consistent with the Rincon Hill Public Open Space System as described in Map 5 of the Rincon Hill Area Plan of the General Plan and the Rincon Hill Streetscape Plan. The Fund shall be allocated in accordance with Table 418.5.
Improvement Type | Dollars Received from Residential Development | Dollars Received from Commercial Development |
Complete Streets: Pedestrian and Streetscape Improvements | 79% | Not applicable |
Recreation and Open Space | 16% | Not applicable |
Program Administration | 5% | Not applicable |
(2) SoMa Stabilization Fund. Notwithstanding Subsection (b)(1) above, $6 million of the Fund shall be transferred to the SoMa Stabilization Fund described in Section 418.7 to be used exclusively for the following expenditures: SoMa Open Space Facilities Development and Improvement; Community Facilities Development and Improvement; SoMa Pedestrian Safety Planning, Traffic Calming, and Streetscape Improvement; and Development of new affordable housing in SoMa. The Board of Supervisors finds that it is in the best interest of the City that the Rincon Hill Community Improvements be built.
(3) Program Administration. No portion of the Fund may be used, by way of loan or otherwise, to pay any administrative, general overhead, or similar expense of any public entity, except for the purposes of administering this fund in an amount not to exceed 5% of the total annual revenue. Administration of this fund includes maintenance of the Fund, time and materials associated with processing and approving fee payments and expenditures from the Fund (including necessary hearings), reporting or informational requests related to the Fund, and coordination between public agencies regarding determining and evaluating appropriate expenditures of the Fund. Monies from the Fund may be used by the Planning Commission to commission economic analyses for the purpose of revising the fee under Section 418.3 above, to complete a nexus study to demonstrate or update the relationship between residential development and the need for public facilities, or to commission landscape, architectural or other planning, design and engineering services in support of the proposed public improvements. All interest earned on this account shall be credited to the Rincon Hill Community Improvements Fund.
(c) Acquisition of New Open Space. A public hearing shall be held by both the Planning and Recreation and Parks Commissions to elicit public comment on proposals for the acquisition of property using monies in the Fund or through agreements for financing In-Kind Community Improvements via a Mello-Roos Community Facilities District that will ultimately be maintained by the Department of Recreation and Parks. Notice of public hearings shall be published in an official newspaper at least 20 days prior to the date of the hearing, which notice shall set forth the time, place, and purpose of the hearing. The hearing may be continued to a later date by a majority vote of the members of both Commissions present at the hearing. The Recreation and Parks Commission may vote to recommend to the Board of Supervisors that it appropriate money from the Fund for acquisition of property for park use and/or for development of property for park use.
(d) The Planning Commission shall work to develop a proposed expenditure plan with other City agencies and commissions, specifically the Department of Recreation and Parks, DPW, and the San Francisco Municipal Transportation Agency, to develop a proposed expenditure plan, and to develop agreements related to the administration of the development of new public facilities within public rights-of-way or on any acquired property. The proposed expenditure plan shall be subject to approval by the Board of Supervisors
(e) The Director shall have the authority to prescribe rules and regulations governing the Fund, which are consistent with Section 418.1 et seq. The Director of Planning, as the head of the Interagency Plan Implementation Committee (IPIC), shall make recommendations to the Board regarding allocation of funds.
AMENDMENT HISTORY
Within 18 months following the effective date of Section 418.1 et seq., the Director of Planning and the Director of MOH shall report to the Planning Commission, the Board of Supervisors, and the Mayor on the status of compliance with Section 418.1 et seq., the efficacy of Section 418.1 et seq. in funding infrastructure and stabilization programs in the Rincon Hill Program Area and in SoMa, and the impact of the Program on property values in the vicinity of the Program Area.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010)
(a) Purpose. There is hereby established a separate fund set aside for a special purpose entitled the SOMA Community Stabilization Fund (“Fund”), and within the Fund an account related to the Community Facilities District defined in Section 434 called the SoMa Community Facilities District Account (“Community Facilities District Account”). The Fund and the Community Facilities District Account shall be held and maintained by the Controller. All monies collected by DBI pursuant to Section 418.3 shall be deposited in the Fund, to be maintained by the Controller. The Controller may direct certain proceeds of the Community Facilities District special tax, as defined in Section 434, collected pursuant to Section 434, to be deposited into the Community Facilities District Account. Proceeds of bonds issued for the Community Facilities District shall not be deposited into the Community Facilities District Account. The receipts in the Fund and the Community Facilities District Account are hereby appropriated in accordance with law to be used solely to address the effects of destabilization on residents and businesses in SOMA subject to the conditions of this Section 418.7.
(b) Use of Funds.
(1) All monies deposited in the Fund shall be used to address the impacts of destabilization on residents and businesses in SOMA including assistance for: affordable housing and community asset building, small business rental assistance, development of new affordable homes for rental units for low income households, rental subsidies for low income households, down payment assistance for home ownership for low income households, eviction prevention, employment development and capacity building for SOMA residents, job growth and job placement, small business assistance, leadership development, community cohesion, civic participation, cultural preservation, and community based programs and economic development. Monies in the Community Facilities District Account may be used for the purposes specified in this subsection (b) that are authorized uses of Community Facilities District revenues under the proceedings for the Community Facilities District and that are described in the Central SoMa Implementation Program Document.
(2) Monies from the Fund may be appropriated by the Mayor’s Office of Housing and Community Development (“MOHCD”) without additional approval by the Board of Supervisors to the Planning Commission or other City department or office to commission economic analyses for the purpose of revising the fee, to complete a nexus study to demonstrate the relationship between residential development and the need for stabilization assistance if this is deemed necessary, provided these expenses do not exceed a total of $100,000. The receipts in the Fund may be used to pay the expenses of MOHCD in connection with administering the Fund and monitoring the use of the Funds. Before expending funds on administration, MOHCD must obtain the approval of the Board of Supervisors by Resolution. Monies in the Community Facilities District Account may not be used for the purposes described in this subsection (b)(2).
(c) Reporting. The Controller’s Office shall file a report with the Board of Supervisors in even-numbered years, which report shall set forth the amount of money collected in the Fund. The Fund shall be administered and expended by MOHCD, but all expenditures shall first be approved by the Board of Supervisors through the legislative process. In approving expenditures from the Fund, MOHCD and the Board of Supervisors shall consider any comments from the SOMA Community Stabilization Fund Community Advisory Committee in Article XXVII of Chapter 5 of the Administrative Code, the public, and any relevant City departments or offices. With respect to the Community Facilities District Account, the Controller’s Office also shall comply with the reporting requirements set forth in the Special Tax Financing Law and Government Code Section 50075 et seq.
AMENDMENT HISTORY
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