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In addition to the definitions set forth in Section 401 of this Article, the following definitions shall govern interpretation of Section 423.1 et seq.
(a) Eastern Neighborhoods Base Height. The Height limit immediately prior to the adoption of the following:
(1) The Eastern Neighborhoods Plan (Ordinance No. 298-08, on file with the Clerk of the Board of Supervisors in File No. 081153), regardless of subsequent changes in the Height limit, for parcels within the East SoMa Plan Area at the time of plan adoption;
(2) The Western SoMa Area Plan (Ordinance No. 41-13, on file with the Clerk of the Board of Supervisors in File No. 130001), regardless of subsequent changes in the Height limit, for parcels within the Western SoMa Area Plan at the time of plan adoption; or
(3) Ordinance No. 13-14 (on file with the Clerk of the Board of Supervisors in File No. 131161), regardless of subsequent changes in the Height limit, for parcels added to the East SoMa Plan Area by Ordinance No. 13-14.
(b) Central SoMa Base Height.
(1) For all parcels except those described in subsection (2) below, the Height limit established by the Central SoMa Plan (Ordinance No. 296-18, on file with the Clerk of the Board of Supervisors in File No. 180184), regardless of subsequent changes in the Height limit.
(2) Exception for Narrow Sites. Projects on parcels in the CS Bulk District, as defined in Section 270, with a Height limit greater than 85 feet and with no street or alley frontage greater than 100 feet shall be considered for the purposes of Section 423 et seq. to have a Height limit of 85 feet regardless of the parcel’s actual Height limit.
(c) Eastern Neighborhoods Fee Tiers.
(1) Tier 1.
(A) All development on sites that received a height increase of eight feet or less, received no height increase, or received a reduction in height, as measured from the Eastern Neighborhoods Base Height;
(B) The residential portion of all 100% affordable housing projects;
(C) The residential portion of all projects within the Urban Mixed Use (UMU) district; and
(D) All changes of use within existing structures.
(2) Tier 2. All additions to existing structures or new construction on other sites not listed in subsection (1) above that received a height increase of nine to 28 feet, as measured from the Eastern Neighborhoods Base Height;
(d) Central SoMa Fee Tiers. For all applicable projects, the following Fee Tiers apply:
(1) Tier A.
(A) All development on sites rezoned from SALI or SLI to either CMUO, MUG, MUR, or WMUO with a Height limit at or below 45 feet, pursuant to the adoption of the Central SoMa Area Plan (on file with the Clerk of the Board of Supervisors in File No. 180184).
(B) All development on all other sites that received a Height increase of 15 feet to 45 feet pursuant to the adoption of the Central SoMa Area Plan (on file with the Clerk of the Board of Supervisors in File No. 180184).
(2) Tier B.
(A) All development on sites rezoned from SAL1 or SLI to either CMUO, MUG, MUR, or WMUO with a Height limit of between 46 and 85 feet, pursuant to the adoption of the Central SoMa Area Plan (on file with the Clerk of the Board of Supervisors in File No. 180184).
(B) All development on all other sites that received a Height increase of 46 feet to 85 feet pursuant to the adoption of the Central SoMa Area Plan (on file with the Clerk of the Board of Supervisors in File No. 180184).
(3) Tier C.
(A) For All development on sites rezoned from SALI or SLI to either CMUO, MUG, MUR, or WMUO with a Height limit above 85 feet, pursuant to the adoption of the Central SoMa Area Plan (on file with the Clerk of the Board of Supervisors in File No. 180184).
(B) All development on all other sites that received a Height increase of more than 85 feet pursuant to the adoption of the Central SoMa Area Plan (on file with the Clerk of the Board of Supervisors in File No. 180184).
(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. 42-13
, File No. 130002, App. 3/28/2013, Eff. 4/27/2013; Ord. 188-15
, File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019)
AMENDMENT HISTORY
Divisions (a)(1)(A), (a)(2), and (a)(3) amended; Ord. 42-13
, Eff. 4/27/2013. Divisions (a)(1)(A) and (a)(2) amended; Ord. 188-15
, Eff. 12/4/2015. Division (a) designation removed; former divisions (a)(1)- (a)(3) redesignated as divisions (c)(1)-(c)(3) and amended; new divisions (a)-(a)(3), (b)-(b)(2), (c), and (d)- (d)(3)(B) added; Ord. 296-18, Eff. 1/12/2019.
(a) Application. Section 423.1 et seq. shall apply to any development project located in the Eastern Neighborhoods Program Area.
(b) Projects subject to the Eastern Neighborhoods Infrastructure Impact Fee. The Eastern Neighborhoods Infrastructure Impact Fee is applicable to any development project in the Eastern Neighborhoods 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 Eastern Neighborhoods Infrastructure Impact Fee. For development projects for which the Eastern Neighborhoods Infrastructure Impact Fee is applicable:
(1) Any net addition of gross square feet shall pay per the Fee Schedule in Table 423.3A, and
(2) Any replacement of gross square feet or change of use shall pay per the Fee Schedule in Table 423.3B.
Tier (per Sec. 423.2(a)) | Residential | Non-residential | Net TIDF |
1 | $8/gsf | $6/gsf | $10/gsf |
2 | $12/gsf | $10/gsf | $10/gsf |
3 | $16/gsf | $14/gsf | $10/gsf |
Tier (per Sec. 423.3(a)) | Residential to Residential or Non-residential; or Non-residential to Non-residential | Non-Residential to Residential | PDR to Residential | PDR to Non-residential |
1 | $0 | $2/gsf | $5/gsf | $3/gsf |
2 | $0 | $2/gsf | $9/gsf | $7/gsf |
3 | $0 | $2/gsf | $13/gsf | $11/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 Eastern Neighborhoods 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 as analyzed in the Eastern Neighborhoods Community Improvements Program and where they substitute for improvements that could be provided by the Eastern Neighborhoods Community Improvements Fund (as described in Section 423.5). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Eastern Neighborhoods Area Plans (Central Waterfront, East SoMa, Western SoMa, Mission, and Showplace Square/Potrero Hill), by the Interagency Plan Implementation Committee (see Section 36 of the Administrative Code), the Eastern Neighborhoods Citizens Advisory Committee, or other prioritization processes related to Eastern Neighborhoods Citizens 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:
(A) A description of the type and timeline of the proposed in-kind improvements.
(B) The appropriate value of the proposed in-kind improvement, as determined in subsection (2) above.
(C) 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 Eastern Neighborhoods 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 Eastern Neighborhoods 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.
(e) Timing of Fee Payments. The Eastern Neighborhoods Infrastructure Impact Fee shall be paid to DBI for deposit into the Eastern Neighborhoods Community Improvements Fund at the time required by Section 402(d).
(f) Waiver or Reduction of Fees. Development projects may be eligible for a waiver or reduction of impact fees, pursuant to Section 406 of this Article. Additionally, office projects under 50,000 square feet, other non-residential projects, and residential projects in the Central SoMa Special Use District may reduce their required contribution to the Eastern Neighborhoods Community Improvements Fund as follows: for every gross square foot of PDR space required by Planning Code Section 202.8, the project may waive payment for four gross square feet of the Eastern Neighborhoods Infrastructure Impact Fee.
(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. 42-13
, File No. 130002, App. 3/28/2013, Eff. 4/27/2013; Ord. 56-13
, File No. 130062, App. 3/28/2013, Eff. 4/27/2013; Ord. 50-15
, File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020)
AMENDMENT HISTORY
Division (d)(1) amended; Ord. 42-13
, Eff. 4/27/2013. Tables 423.3A and 423.3B and division (d)(1) amended; former divisions (d)(3)(i) through (iii) redesignated as (d)(3)(A) through (C); Ord. 56-13
, Eff. 4/27/2013. Division (e) amended; Ord. 50-15
, Eff. 5/24/2015. Divisions (d)(1) and (f) amended; divisions (f)(1) and (f)(2) deleted; Ord. 296-18, Eff. 1/12/2019. Division (e) amended; Ord. 63-20, Eff. 5/25/2020.
(a) Determination of Requirements. The Department shall determine the applicability of Section 423.1 et seq. to any development project requiring a first construction document and, if Section 423.1 et seq. is applicable, the amount of Eastern Neighborhoods Infrastructure Impact 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 Notice to Development Fee Collection Unit at DBI. Prior to the issuance of a building or site permit for a development project subject to the requirements of Section 423.1 et seq., the Department shall notify the Development Fee Collection Unit at DBI of its final determination of the amount of Eastern Neighborhoods Infrastructure Impact Fees required, including any reductions calculated for an In-Kind Improvements Agreement, in addition to the other information required by Section 402(b) of this Article.
(c) 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 422.1 et seq. that has elected to fulfill all or part of its Eastern Neighborhoods Impact Fee requirement with an In-Kind Improvements Agreement. If the Department notifies the Unit at such time that the sponsor has not satisfied any of the terms of the In-Kind Improvements Agreement, 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 422.1 et seq., either through conformance with the In-Kind Improvements Agreement or payment of the remainder of the Eastern Neighborhood Infrastructure Impact Fees that would otherwise have been required, plus a deferral surcharge as set forth in Section 107A.13.3.1 of the San Francisco Building Code.
(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 422.1 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) of this Article 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) Purpose. There is hereby established a separate fund set aside for a special purpose entitled the Eastern Neighborhoods Community Improvements Fund ("Fund"). All monies collected by the Development Fee Collection Unit at DBI pursuant to Section 423.3(e) shall be deposited in the Fund maintained by the Controller. The receipts in the Fund shall be appropriated in accordance with the normal budgetary process to fund Community Improvements subject to the conditions of this Section. Monies collected by the Development Fee Collection Unit at DBI pursuant to Section 423.3 shall be deposited as follows:
(1) For projects located in any zoning districts in the Eastern Neighborhoods Program Area, excluding Designated Affordable Housing Zones, DBI shall deposit 100% of the funds in the Eastern Neighborhoods Community Improvements Fund maintained by the Controller.
(2) For projects located in Designated Affordable Housing Zones, DBI shall deposit 25% of the funds in the Eastern Neighborhoods Community Improvement Fund and 75% in the Citywide Affordable Housing Fund, established in Administrative Code Section 10.100-49, but the funds shall be separately accounted for and expended as provided in this Section.
(b) Use of Funds. The Fund shall be administered by the Board of Supervisors.
(1) All monies deposited in the Fund or credited against Fund obligations shall be used to design, engineer, acquire, improve, and develop public open space and recreational facilities; transit, streetscape and public realm improvements; and child care facilities. Funds may be used for childcare facilities that are not publicly owned or publicly-accessible.
(A) Funds collected from all zoning districts in the Eastern Neighborhoods Program Area, excluding Designated Affordable Housing Zones shall be allocated to accounts by improvement type according to Table 423.5.
(B) Funds collected in Designated Affordable Housing Zones, as defined in Section 401, shall be allocated to accounts by improvement type as described in Table 423.5A.
Improvement Type | Dollars Received From Residential Development | Dollars Received From Non-Residential/Commercial Development |
Complete Streets: Pedestrian and Streetscape Improvements, Bicycle Facilities | 31% | 34% |
Transit | 10% | 53% |
Recreation and Open Space | 47.5% | 6% |
Childcare | 6.5% | 2% |
Program Administration | 5% | 5% |
* Does not apply to Designated Affordable Housing Zones, which are addressed in Table 423.5A
Improvement Type | Dollars Received From Residential Development | Dollars Received From Non-Residential/Commercial Development |
Affordable Housing preservation and development | 75% | n/a |
Complete Streets: Pedestrian and Streetscape Improvements, Bicycle Facilities | 4% | 36% |
Transit | 6% | 53% |
Recreation and Open Space | 10% | 6% |
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 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, or to complete a nexus study to demonstrate or update the relationship between 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 improvement. All interest earned on this account shall be credited to the Eastern Neighborhoods Community Improvements Fund.
(c) Funds shall be allocated to accounts by improvement type as described below:
(1) Funds collected from all zoning districts in the Eastern Neighborhoods Program Area, excluding Designated Affordable Housing Zones shall be allocated to accounts by improvement type according to Table 423.5. Funds collected from MUR Zoning Districts outside of the boundaries of either the East SoMa or Western SoMa Area Plans shall be allocated to accounts by improvement type according to Table 423.5.
(2) Funds collected in Designated Affordable Housing Zones, as defined in Section 401, shall be allocated to accounts by improvement type as described in Table 423.5A. For funds allocated to affordable housing, MOHCD shall expend the funds as follows:
(A) All funds collected from projects in the Mission NCT shall be expended on housing programs and projects within the Mission Area Plan boundaries.
(B) Collectively, the first $10 million in housing fees collected between the two Designated Affordable Housing Zones shall be utilized for the acquisition and rehabilitation of existing housing.
(d) The Planning Department shall work with other City agencies and commissions, specifically the Department of Recreation and Parks, DPW and MFA to develop a proposed expenditure plan, and to develop agreements related to the administration of the improvements to existing public facilities and development of new public facilities within public rights-of way or on any acquired public property. The proposed expenditure plan shall be approved by the Board of Supervisors.
(e) Acquisition of New Open Space. A public hearing shall be held by the Recreation and Parks Commissions to elicit public comment on proposals for the acquisition of property using monies in the Fund 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 Commissions may vote to recommend to the Board of Supervisors that it appropriate money from the Fund for acquisition and development of property acquired for park use.
(f) Within 60 days of receiving the Eastern Neighborhoods Capital Expenditure Evaluation Report as specified in Administrative Code Section 10E.2(c), the Office of the Controller shall assess whether funds collected from the Eastern Neighborhoods Community Improvement Fee are being effectively utilized for capital projects serving the Eastern Neighborhoods, and whether such projects are successfully advancing towards implementation, as set forth in the abovementioned Section. Based on this assessment, the following shall occur:
(1) If the Controller determines that the funds have been effectively utilized as set forth in Section 10E.2(c) of the Administrative Code, the Controller shall issue an affirmative finding to the Board of Supervisors and the Planning Commission certifying that the intent of this aforementioned Section is being met. No further Controller action is necessary for purposes of this Subsection.
(2) If the Controller fails to issue the certification described in Subsection (f)(1) above or if the Controller determines that the fees are not being effectively utilized as set forth in Administrative Code Section 10E.2(c) and notifies the Board of Supervisors and Planning Commission of this determination, then the following shall occur:
(A) Any project specified below within the Eastern Neighborhoods Area Plan that has not already received final and effective approvals from the Planning Department, Zoning Administrator, and/or the Planning Commission, shall require a conditional use authorization, in addition to any other approvals necessary under the Planning Code:
(i) Residential projects containing more than 10 new units that have not received issuance of their first site or building permit; or
(ii) Non-residential projects containing a net new addition or new construction of 10,000 square feet or more that have not received issuance of their first site or building permit.
(3) Elimination of interim conditional use requirement.
(A) At any time after the Controller has determined that Eastern Neighborhood impact fees are not being effectively utilized as set forth in Section 423.5(f)(2) above, or fails to certify that they are being effectively utilized as set forth in Section 423.5(f)(1), the Planning Department may provide the Controller with a newly updated or revised Eastern Neighborhoods Capital Expenditure Evaluation Report.
(B) Within 60 days of receiving an updated or revised Report, the Office of the Controller shall determine whether funds collected from the Eastern Neighborhoods Community Improvement Fee are being effectively utilized for capital projects serving the Eastern Neighborhoods consistent with the intent of the Section 10E.2(c) of the Administrative Code.
(C) If, on the basis of a new, updated, or revised Eastern Neighborhoods Capital Expenditure Evaluation Report, the Controller determines that the development impact fees collected to date are being effectively utilized as set forth in Section 423.5(f)(1) above, any projects within the Eastern Neighborhoods Plan Area that required a conditional use authorization on an interim basis as set forth in Section 423.5(f)(2) shall no longer require such conditional use authorization unless the underlying use requires conditional use authorization independently.
(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. 196-11
, File No. 110786, App. 10/4/2011, Eff. 11/3/2011; Ord. 42-13
, File No. 130002, App. 3/28/2013, Eff. 4/27/2013; Ord. 56-13
, File No. 130062, App. 3/28/2013, Eff. 4/27/2013; 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. 143-15
, File No. 150568, App. 8/6/2015, Eff. 9/5/2015; 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. 202-18, File No. 180557, App. 8/10/2018, Eff. 9/10/2018; Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020)
AMENDMENT HISTORY
Former Tables 423.6 and 423.6A redesignated as Tables 423.5 and 423.5A, respectively, and internal references adjusted accordingly; section references corrected throughout; Ord. 196-11
, Eff. 11/3/2011. Divisions (b)(1) and [former] (c)(3) amended; Ord. 42-13
, Eff. 4/27/2013. Division (a) and Table 423.5 note amended; Ord. 56-13
, Eff. 4/27/2013. Division (d) amended; Ord. 263-13, Eff. 12/27/2013. Section header and division (a) amended, new divisions (a)(1) and (a)(2) added; divisions (b) and (b)(1) amended; new divisions (b)(1)(A) and (b)(1)(B) added; Tables 423.5 and 423.5A amended; divisions (b)(2)-(c)(2)(B) amended; former division (c)(3) deleted; divisions (d) and (e) amended; former divisions (f) and (g) deleted; former divisions (h)-(h)(C)(iii) redesignated as (f)-(f)(3)(C) and internal references adjusted accordingly; current divisions (f), (f)(3)(B), and (f)(3)(C) amended; Ord. 50-15
, Eff. 5/24/2015. Division (a)(2) amended; Ord. 143-15
, Eff. 9/5/2015. Division (a), Table 423.5A, and divisions (b)(2) and (c)(2) amended; Ord. 188-15
, Eff. 12/4/2015. Table 423.5A amended; Ord. 200-15
, Eff. 12/25/2015 and Ord. 222-15
, Eff. 1/17/2016. Division (c)(2) amended; Ord. 202-18, Eff. 9/10/2018. Divisions (b)(1)(B) and (c)(2) amended; division (c)(2)(B) deleted; Ord. 296-18, Eff. 1/12/2019. Division (c)(2)(C) redesignated as (c)(2)(B); Ord. 63-20, Eff. 5/25/2020.
[VAN NESS & MARKET AFFORDABLE HOUSING AND NEIGHBORHOOD INFRASTRUCTURE]
Sections 424.1 through 424.5, hereafter referred to as Section 424.1 et seq., set forth the requirements and procedures for the Van Ness and Market Affordable Housing and Neighborhood Infrastructure Program. The effective date of these requirements shall be either May 30, 2008, which is the date that the requirements original became effective, or the date a subsequent modification, if any, became effective.
AMENDMENT HISTORY
(a) Affordable Housing. The Van Ness and Market Residential Special Use District ("SUD") enables the creation of a very dense residential neighborhood through significant increases in development potential. This increase in development potential permits an increase in market rate housing development. As described in Section 415.1, affordable housing is a priority for San Francisco and additional demand for affordable housing is closely correlated to the development of new market rate housing. At the direction of the Board of Supervisors and as part of a larger analysis of development impact fees in the City, the City contracted with Keyser Marston Associates to prepare a nexus analysis in support of the Inclusionary Housing Program, or an analysis of the impact of development of market rate housing on affordable housing supply and demand.
The City's Inclusionary Housing Program including the in-lieu fee provision which is offered as an alternative to building units within market rate projects, is not subject to the requirements of the Mitigation Fee Act, Government Code Sections 66000 et seq. Notwithstanding this policy, as an additional support measure, the City prepared a nexus study consistent with the Mitigation Fee Act to determine whether the Inclusionary Affordable Housing Program was supported by such analysis. The final nexus study can be found in the Board of Supervisors File and is incorporated by reference herein. The Board of Supervisors has reviewed the study and the Department's analysis and report of the study and, on that basis finds that the nexus study supports the current Inclusionary Affordable Housing Program requirements as specified in this Section 424.1 et seq. combined with this Affordable Housing Floor Area Ratio ("FAR") Bonus Program. Specifically, the Board finds that the nexus study: identifies the purpose of the fee to mitigate impacts on the demand for affordable housing in the City; identifies the use to which the fee is to be put as being to increase the City's affordable housing supply; and establishes a reasonable relationship between the use of the fee for affordable housing and the need for affordable housing and the construction of new market rate housing. Moreover, the Board finds that the current inclusionary requirements combined with the Affordable Housing FAR Bonus Program are less than the cost of mitigation and do not include the costs of remedying any existing deficiencies. The Board also finds that the study establishes that the current inclusionary requirements combined with the Affordable Housing FAR Bonus Program do not duplicate other City requirements or fees.
Moreover, according to the study undertaken by Seifel Consulting at the direction of the Planning Department, increased development potential in the Van Ness and Market Downtown Residential Special Use district through the increased FAR allowance enables an increased contribution to the Citywide Affordable Housing Fund without discouraging the development of new market rate housing. A copy of said study is on file with the Clerk of the Board of Supervisors.
(b) Neighborhood Infrastructure. The Van Ness & Market Residential SUD enables the creation of a very dense residential neighborhood in an area built for back-office and industrial uses. Projects that seek the FAR bonus above the maximum cap would introduce a very high localized density in an area generally devoid of necessary public infrastructure and amenities, as described in the Market and Octavia Area Plan. While envisioned in the Plan, such projects would create localized levels of demand for open space, streetscape improvements, and public transit above and beyond the levels both existing in the area today and funded by the Market and Octavia Community Improvements Fee. Such projects also entail construction of relatively taller or bulkier structures in a concentrated area, increasing the need for offsetting open space for relief from the physical presence of larger buildings. Additionally, the FAR bonus provisions herein are intended to provide an economic incentive for project sponsors to provide public infrastructure and amenities that improve the quality of life in the area. The bonus allowance is calibrated based on the cost of responding to the intensified demand for public infrastructure generated by increased densities available through the FAR density bonus program.
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.
(c) Public Improvements. The public improvements acceptable in exchange for granting the FAR bonus, and that would be necessary to serve the additional population created by the increased density, are listed below. All public improvements shall be consistent with the Market and Octavia Area Plan.
(1) Open Space Acquisition and Improvement. Open Spaces (as described in the Market and Octavia Area Plan), or other open space of comparable size and performance. Open space shall be dedicated for public ownership or permanent easement for unfettered public access and improved for public use, including landscaping, seating, lighting, and other amenities.
(2) Complete Streets. Pedestrian and Streetscape improvements and Bicycle Infrastructure within the Special Use District as described in the Market and Octavia Area Plan, including Van Ness and South Van Ness Avenues, Gough, Mission, McCoppin, Market, Otis, Oak, Fell, Valencia, 11th, 12th, and 13th Streets, along with adjacent alleys. Improvements include sidewalk widening, landscaping and trees, lighting, seating and other street furniture (e.g., newsracks, kiosks, bicycle racks), signage, transit stop and subway station enhancements (e.g., shelters, signage, boarding platforms), roadway and sidewalk paving, public art and living alleys.
(3) Affordable Housing. The type of affordable housing needed in San Francisco is documented in the City’s Consolidated Plan and the Housing Element of the General Plan. New affordable rental housing and ownership housing affordable to households earning less than the median income is greatly needed in San Francisco.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by 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. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020; Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023)
AMENDMENT HISTORY
Section header amended; former divisions A.-C. redesignated as (a)-(c); divisions (b) and (c)(2) amended; 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. Section header and divisions (c)(1)-(3) amended; Ord. 126-20, Eff. 8/31/2020. Division (b) amended; Ord. 193-23, Eff. 10/16/2023.
See Section 401 of this Article.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
(a) Application and Timing of Fee Payments. Section 424.1 et seq. shall apply to any development project located in the Van Ness & Market Residential Special Use District, as established in Section 249.33 of this Code. The Fee shall be paid to DBI for deposit into either the Van Ness and Market Downtown Residential Special Use District Affordable Housing Fund or the Van Ness and Market Downtown Residential Special Use District Infrastructure Fund, as applicable, at the
time required by Section 402(d).
(b) Amount of Fee.
(1) All uses in any development project within the Van Ness & Market Residential Special Use District shall pay $30.00 per net additional gross square foot of floor area in any portion of building area exceeding the base development site FAR of 6:1 up to a base development site FAR of 9:1.
(2) All uses in any development project within the Van Ness & Market Residential Special Use District shall pay $15.00 per net additional gross square foot of floor area in any portion of building area exceeding the base development site FAR of 9:1.
(c) Option for In-Kind Provision of Infrastructure 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 from the neighborhood infrastructure portion ($15.00 per net additional gross square foot of floor area) of the Van Ness & Market Residential Special Use District Affordable Housing and Neighborhood Infrastructure 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 as analyzed in the Van Ness & Market Affordable Housing and Neighborhood Infrastructure Program and where they substitute for improvements that could be provided by the Van Ness & Market Residential Special Use District Infrastructure Fee Fund (as described in Section 424.5). The City may reject in-kind improvements if they are not consistent with the priorities identified in the Van Ness & Market Affordable Housing and Neighborhood Infrastructure Program. 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 neighborhood infrastructure portion of the Van Ness & Market Residential Special Use District Affordable Housing and Neighborhood Infrastructure 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 neighborhood infrastructure portion of the Van Ness & Market Affordable Housing and Neighborhood Infrastructure 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 Improvement Agreement.
AMENDMENT HISTORY
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