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(a) Purpose. The Board takes legislative notice of the purpose of the Market and Octavia Area Plan ("Area Plan") as articulated in the Market and Octavia Area Plan of the San Francisco General Plan. In general, the Market and Octavia Area Plan embodies the community's vision of a better neighborhood, which achieves multiple objectives including creating a healthy, vibrant transit-oriented neighborhood.
The Market and Octavia Plan Area encompasses a variety of districts, most of which are primarily residential or neighborhood commercial. The Area Plan calls for a maintenance of the well-established neighborhood character in these districts with a shift to a more transit-oriented type of districts. A transit-oriented district, be it neighborhood commercial or residential in character, generates a unique type of infrastructure needs.
The overall objective of the Market and Octavia planning effort is to encourage balanced growth in a centrally located section of the City that is ideal for transit oriented development. The Area Plan calls for an increase in housing and retail capacity simultaneous to infrastructure improvements in an effort to maintain and strengthen neighborhood character. In addition, the Board notes the findings made in the Market and Octavia Area Plan that support the establishment of the Market and Octavia Community Improvements Fund. For example, new construction should not diminish the City's open space, jeopardize the City's Transit First Policy, or place undue burden on the City's service systems. The new residential and non-residential construction should preserve the existing neighborhood services and character, as well as increase the level of service for all modes necessary to support transit-oriented development. New development in the area will create additional impact on the local infrastructure, thus generating a substantial need for community improvements as the district's population and workforce grows.
The purpose of the proposed Market and Octavia Community Infrastructure Impact Fees is to provide specific public improvements, including community open spaces, pedestrian and streetscape improvements and other facilities and services. These improvements are described in the Market and Octavia Area Plan and Neighborhood Plan and the accompanying ordinances, and are necessary to meet established City standards for the provision of such facilities. The Market and Octavia Community Improvements Fund and Community Infrastructure Impact Fee will create the necessary financial mechanism to fund these improvements in proportion to the need generated by new development.
(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, Complete Streets Findings, Childcare Findings, and Transit Infrastructure Findings, and incorporates those by reference herein to support the imposition of the fees under this Section.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; Ord. 25-11, File No. 101464, App. 2/24/2011; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; 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
Section header amended; former divisions A. and B. redesignated as division (a) and amended; new division (b) added; former divisions C.-E. deleted; Ord. 50-15
, Eff. 5/24/2015. Division (b) amended; Ord. 200-15
, Eff. 12/25/2015 and Ord. 222-15
, Eff. 1/17/2016. Division (b) amended; Ord. 193-23, Eff. 1016/2023.
See Section 401 of this Article.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
(b) Projects subject to the Market and Octavia Community Improvement Impact Fee. The Market and Octavia Community Improvements Impact Fee is applicable to any development project in the Market and Octavia 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,
(5) New construction of a non-residential use, or
(6) Additional non-residential space in excess of 800 gross square feet in an existing structure.
(c) Fee Calculation for the Market and Octavia Community Improvement Impact Fee. For development projects for which the Market and Octavia Community Improvements Impact Fee is applicable:
(1) Any net addition of gross square feet shall pay per the Fee Schedule in Table 421.3A, and
(2) Any replacement of gross square feet or change of use shall pay per the Fee Schedule in Table 421.3B.
Residential | Non-residential |
$9.00/gsf | $3.40/gsf |
Residential to Residential or Non-residential; or Non-residential to Non-residential | Non-Residential to Residential | PDR to Residential | PDR to Non-Residential |
$0 | $5.60/gsf | $7.30/gsf | $1.70/gsf |
(d) Option for In-Kind Provision of Community Improvements 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 Market and Octavia Community Improvements 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 Market and Octavia Community Improvements Fund (as described in Section 421.5). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Market and Octavia Area Plan, by the Interagency Plan Implementation Committee (see Section 36 of the Administrative Code), the Market and Octavia Citizens Advisory Committee, or other prioritization processes related to Market and Octavia 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 Market and Octavia Community Improvements 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 Market and Octavia Community Improvements 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.
(e) Option for Financing of Community Improvements or Payment of the Market and Octavia Community Improvements Impact Fee via a Mello Roos Community Facilities District ("CFD"). Applicants may finance In-Kind Community Improvements (subject to subsection (e) above) or payment of the Market and Octavia Community Improvements Impact Fee (subject to subsection (c) above) through the formation of a CFD.
(f) Timing of Fee Payments. The Market and Octavia Community Improvements Impact Fee shall be paid to DBI for deposit into the Market and Octavia Community Improvements Fund at the time required by Section 402(d).
(g) Waiver or Reduction. Development projects may be eligible for a waiver or reduction of impact fees, per Section 406 of this Article. Additionally, applicants that are subject to the downtown parks fee, Section 139, can reduce their contribution to the Market and Octavia Community Improvements Fund by one dollar for every dollar that they contribute to the downtown parks fund, the total fee waiver or reduction granted through this clause shall not exceed 8.2 percent of calculated contribution for residential development or 13.8 percent for commercial development.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; Ord. 25-11, File No. 101464, App. 2/24/2011; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 83-17, File No. 170003, App. 3/24/2017, Eff. 4/23/2017; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020)
AMENDMENT HISTORY
(a) Determination of Requirements. The Department shall determine the applicability of Section 421.1 et seq. to any development project requiring a first construction document and, if Section 421.1 is applicable, the number of gross square feet of each type 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 development impacts. 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 each type of space subject to Section 421.1 et seq., it shall immediately notify the Development Fee Collection Unit at DBI of its determination in addition to the other information required by Section 402(b) of this Article.
(c) Sponsor's Choice to Fulfill Requirements. Prior to issuance of a building or site permit for a development project subject to the requirements of Section 421.1 et seq., the sponsor shall elect an option under Section 421.3 to fulfill the requirements of Section 421.1 et seq. and notify the Department of their choice.
(d) Department's Notice to Development Fee Collection Unit of Sponsor's Choice. After the project sponsor has notified the Department of the choice to fulfill the requirements of Section 421.1 et seq., the Department shall immediately notify the Development Fee Collection Unit at DBI of the project sponsor's choice.
(e) 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 Section 421.1 et seq. that has elected to fulfill all or part of the requirement with an option other than payment of a fee. 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 421.1 et seq.
(f) 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 421.1 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.
(a) Purpose. There is hereby established a separate fund set aside for a special purpose entitled the Market and Octavia Community Improvements Fund ("Fund"). All monies collected by DBI pursuant to Section 421.3(b) 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. The Fund shall be administered by the Board of Supervisors.
(1) Infrastructure. All monies deposited in the Fund shall be used to design, engineer, acquire, improve, and develop neighborhood open spaces, pedestrian and streetscape improvements, bicycle infrastructure, childcare facilities, and other improvements that result in new publicly-accessible facilities and related resources within the Market and Octavia Plan Area or within 1,250 feet of the Plan Area. Funds may be used for childcare facilities that are not publicly owned or publicly-accessible. The improvements, where applicable, shall be consistent with the Market and Octavia Civic Streets and Open Space System as described in Map 5 of the Market and Octavia Area Plan of the General Plan, and Market and Octavia Community Improvements Program. The funds shall be allocated in accordance with Table 421.5A.
Improvement Type | Dollars Received From Residential Development | Dollars Received From Non-Residential Development |
Complete Streets: Pedestrian and Streetscape Improvements, Bicycle Facilities | 44% | 61% |
Transit | 22% | 20% |
Recreation and Open Space | 21% | 14% |
Childcare | 8% | Not applicable |
Program Administration | 5% | 5% |
(2) 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 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 or to complete an updated nexus study to demonstrate the relationship between development and the need for public facilities if this is deemed necessary. All interest earned on this account shall be credited to the Market and Octavia Community Improvements Fund.
(c) Acquisition of New Open Space. A public hearing shall be held by the Recreation and Parks Commission to elicit public comment on proposals for the acquisition of property using monies in the Fund 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 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 for development of property acquired for park use.
(d) The Planning Commission shall work 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 improvements to existing and development of new public facilities within public rights-of-way or on any acquired property designed for park use. The proposed expenditure plan shall be approved by the Board of Supervisors.
(e) The Director of Planning shall have the authority to prescribe rules and regulations governing the Fund, which are consistent with this Section 421.1 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.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; Ord. 25-11, File No. 101464, App. 2/24/2011; Ord. 263-13, File No. 130549, App. 11/27/2013, Eff. 12/27/2013; 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. 83-17, File No. 170003, App. 3/24/2017, Eff. 4/23/2017; Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020)
AMENDMENT HISTORY
[Former] division (c) amended; Ord. 263-13, Eff. 12/27/2013. Divisions (a)-(b)(2) amended; former division (c) deleted; former divisions (d)-(f) redesignated as (c)-(e) and amended; Ord. 50-15
, Eff. 5/24/2015. Division (b)(1) amended; Ord. 188-15
, Eff. 12/4/2015. Division (b)(1) amended; Ord. 83-17, Eff. 4/23/2017. Division (b)(1) amended; Ord. 126-20, Eff. 8/31/2020.
The Planning Department shall fulfill all relevant evaluation, reporting and study requirements to insure that the fee program remains up to date. These requirements include those outlined in Section 421.6(c), 341.2, and 341.3 of this Code, and Section 36.4 of the Administrative Code. Fulfillment of these reporting requirements shall be coordinated to minimize staff time. Funds to fulfill these requirements should be considered monitoring and program administration.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; repealed by Ord. 200-15
, File No. 150790, App. 11/25/2015, Eff. 12/25/2015)
[BALBOA PARK COMMUNITY IMPROVEMENTS FUND]
Sections 422.1 through 422.5, hereafter referred to as Section 422.1 et seq., set forth the requirements and procedures for the Balboa Park Community Improvements Fund. The effective date of these requirements shall be either April 17, 2009, 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)
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