ARTICLE 4:
DEVELOPMENT IMPACT FEES AND PROJECT REQUIREMENTS THAT AUTHORIZE THE PAYMENT OF IN-LIEU FEES

Sec. 401.	Definitions.
Sec. 401A.	Findings.
Sec. 402.	Procedure for Payment and Collection of Development Fees.
Sec. 403.	Payment of Development Fee(s) or Satisfaction of Development Impact Requirement(s) as a Condition of Approval; Temporary Fee Reduction Program.
Sec. 404.	Project Development Fee Report; Resolution of Development Fee Dispute; Appeal to Board of Appeals; Public Notice; Findings Supporting Fee Collection.
Sec. 405.	Development Fee Refund When Building Permit is Cancelled or Expires Prior to Completion of Work and Commencement of Occupancy.
Sec. 406.	Waiver, Reduction, or Adjustment of Development Project Requirements.
Sec. 407.	Notice; Failure to Give Notice.
Sec. 408.	Lien Proceedings.
Sec. 409.	Citywide Development Fee Reporting Requirements and Cost Inflation Fee Adjustments.
Sec. 410.	Comprehensive Five-Year Evaluation of All Development Fees and Development Impact Requirements.
[ Transit Impact Development Fee]
Sec. 411.	Transit Impact Development Fee.
Sec. 411.1.	Findings.
Sec. 411.2.	Definitions.
Sec. 411.3.	Application of TIDF.
Sec. 411.4.	Imposition of TIDF.
Sec. 411.5.	Principles in Calculating Fee.
Sec. 411.6.	TIDF Fund.
Sec. 411.7.	Rules and Regulations.
Sec. 411.8.	Charitable Exemptions.
Sec. 411.9.	Imposition and Collection of TIDF Due Under Former Law.
[Transportation Sustainability Fee]
Sec. 411A.	Transportation Sustainability Fee.
Sec. 411A.1.	Findings.
Sec. 411A.2.	Definitions.
Sec. 411A.3.	Application of TSF.
Sec. 411A.4.	Calculation of TSF.
Sec. 411A.5.	TSF Schedule.
Sec. 411A.6.	TSF Expenditure Program.
Sec. 411A.7.	TSF Fund.
Sec. 411A.8.	Three Year Review of Economic Feasibility Study.
Sec. 411A.9.	Further Study of Economic Feasibility.
[Downtown Park Fee]
Sec. 412.	Downtown Park Fee.
Sec. 412.1.	Purpose and Findings Supporting Downtown Park Fee.
Sec. 412.2.	Definitions.
Sec. 412.3.	Application.
Sec. 412.4.	Imposition of Downtown Park Fee Requirement.
Sec. 412.5.	Downtown Park Fund.
Sec. 412.6.	Collection of Fee.
[Jobs-Housing Linkage Program]
Sec. 413.	Jobs-Housing Linkage Program; Housing Requirements for Large-Scale Development Projects.
Sec. 413.1.	Findings.
Sec. 413.2.	Definitions.
Sec. 413.3.	Application.
Sec. 413.4.	Imposition of Housing Requirement.
Sec. 413.5.	Compliance by Payment of In-Lieu Fee.
Sec. 413.6.	Compliance by Land Dedication.
Sec. 413.7.	Compliance by Combination of Payment of In-Lieu Fee and Land Dedication.
Sec. 413.8.	Lien Proceedings.
Sec. 413.9.	Citywide Affordable Housing Fund.
Sec. 413.11.	Evaluation of Fee.
[Child Care Requirements for Office and Hotel Development Projects]
Sec. 414.	Child-Care Requirements for Office and Hotel Development Projects.
Sec. 414.1.	Purpose and Findings Supporting Childcare Requirements for Office and Hotel Development Projects.
Sec. 414.2.	Definitions.
Sec. 414.3.	Application.
Sec. 414.4.	Imposition of Child Care Requirement.
Sec. 414.5.	Compliance by Providing an On-Site Child-Care Facility.
Sec. 414.6.	Compliance in Conjunction with the Sponsors of Other Development Projects to Provide an On-Site Child-Care Facility at One of the Projects.
Sec. 414.7.	Compliance in Conjunction with the Sponsors of Other Development Projects to Provide a Child-Care Facility Within One Mile of the Development Projects.
Sec. 414.8.	Compliance by Payment of an In-Lieu Fee.
Sec. 414.9.	Compliance by Combining Payment of an In-Lieu Fee with Construction of a Child-Care Facility.
Sec. 414.10.	Compliance by Entering into an Arrangement with a Non-Profit Organization.
Sec. 414.11.	Sponsor Reports to the Department.
Sec. 414.12.	Application to Eliminate the Child-Care Facility or Reduce the Floor Area.
Sec. 414.13.	Affordability Requirement.
Sec. 414.14.	Child Care Capital Fund.
Sec. 414.15.	Decrease in Child Care Formulae After Study.
[Child Care Requirements for Residential Projects]
Sec. 414A.	Child Care Requirements for Residential Projects.
Sec. 414A.1.	Purpose and Findings.
Sec. 414A.2.	Definitions.
Sec. 414A.3.	Application of Residential Child Care Impact Fee.
Sec. 414A.4.	Imposition of Residential Child Care Impact Fee Requirement.
Sec. 414A.5.	Calculation of the Residential Child Care Impact Fee.
Sec. 414A.6.	Option to Provide Small Family Child Care Home in Lieu of Fee.
Sec. 414A.7.	Use of Fees.
Sec. 414A.8.	Notice of Available Designated Units.
[Inclusionary Affordable Housing Program]
Sec. 415.	Housing Requirements for Residential and Live/Work Development Projects.
Sec. 415.1.	Findings.
Sec. 415.2.	Definitions.
Sec. 415.3.	Application.
Sec. 415.4	Imposition of Requirements.
Sec. 415.5.	Affordable Housing Fee.
Sec. 415.6.	On-Site Affordable Housing Alternative.
Sec. 415.7.	Off-Site Affordable Housing Alternative.
Sec. 415.7-1.	Small Sites Affordable Housing Alternative.
Sec. 415.8.	Duration and Monitoring of Affordability.
Sec. 415.9.	Enforcement Provisions and Monitoring of Program.
Sec. 415.10.	Reporting to Board of Supervisors.
Sec. 415.11.	Severability.
Sec. 415A.	Temporary Reduction of Inclusionary Requirements for Residential and Live/Work Development Projects Approved Prior to November 1, 2023.
Sec. 415A.1.	Purpose.
Sec. 415A.2.	Definitions.
Sec. 415A.3.	Application.
Sec. 415A.4.	Modification of Pipeline Projects.
Sec. 415A.5.	Process for Modification of Inclusionary Affordable Housing Program Requirements.
Sec. 415A.6.	Sunset Provision.
Sec. 415B.	Temporary Reduction in Requirements for New Residential and Live/Work Development Projects.
Sec. 415B.1.	Affordable Housing Fee.
Sec. 415B.2.	On-Site Affordable Housing Alternative.
Sec. 415B.3.	Off-Site Affordable Housing Alternative.
Sec. 415B.4.	Inclusionary Fee Annual Fee Updates.
Sec. 415B.5.	Sunset Provision.
[Affordable Housing: Market and Octavia Area Plan; Upper Market Neighborhood Commercial District]
Sec. 416.	Market and Octavia Area Plan and Upper Market Neighborhood Commercial District Affordable Housing Fee.
Sec. 416.1.	Findings.
Sec. 416.2.	Definitions.
Sec. 416.3.	Application of Affordable Housing Fee Requirement.
Sec. 416.4.	Imposition of Affordable Housing Fee Requirement.
Sec. 416.5.	Use of Funds.
[Affordable Housing: Eastern Neighborhoods Area Plan]
Sec. 417.	Eastern Neighborhoods Area Plan Affordable Housing Requirement.
Sec. 417.1.	Findings.
Sec. 417.2.	Definitions.
Sec. 417.3.	Application of Affordable Housing Fee Requirement.
Sec. 417.4.	Imposition of Affordable Housing Fee Requirement.
Sec. 417.5.	Use of Funds.
[Rincon Hill Community Improvements Fund and SOMA Community Stabilization Fund]
Sec. 418.	Rincon Hill Community Improvements Fund and SOMA Community Stabilization Fund.
Sec. 418.1.	Purpose and Findings Supporting Rincon Hill Community Improvements Fund and SoMa Community Stabilization Fund.
Sec. 418.2.	Definitions.
Sec. 418.3.	Application of Rincon Hill Community Improvements Fee and SoMa Community Stabilization Fee
Sec. 418.4.	Imposition of Community Infrastructure Impact Fee and SoMa Stabilization Fee.
Sec. 418.5.	Rincon Hill Community Improvements Fund.
Sec. 418.6.	Director of Planning's Evaluation.
Sec. 418.7.	SoMa Community Stabilization Fund.
Sec. 418.8.	Studies.
[Housing Requirements, UMU Zoning Districts of the Eastern Neighborhoods; Land Dedication Alternative in the Mission NCT District]
Sec. 419.	Housing Requirements for Residential Development Projects in the UMU Zoning Districts of the Eastern Neighborhoods and the Land Dedication Alternative in the UMU District, Mission NCT District, and Central SoMa Special Use District.
Sec. 419.1.	Findings.
Sec. 419.2.	Definitions.
Sec. 419.3.	Application of UMU Affordable Housing Requirements.
Sec. 419.4.	Imposition of UMU Affordable Housing Requirements.
Sec. 419.5.	Alternatives to the Inclusionary Housing Component.
Sec. 419.6.	Land Dedication Alternative in the Mission NCT District and Central SoMa Special Use District.
[Visitacion Valley Community Facilities and Infrastructure Fee and Fund]
Sec. 420.	Visitacion Valley Community Facilities and Infrastructure Fee and Fund.
Sec. 420.1.	Purpose and Findings Supporting Visitacion Valley Community Improvements Fee and Fund.
Sec. 420.2.	Definitions.
Sec. 420.3.	Application of Visitacion Valley Community Improvements Facilities and Infrastructure Fee.
Sec. 420.4.	Imposition of Requirements.
Sec. 420.5.	Lien Proceedings.
Sec. 420.6.	Visitacion Valley Community Improvements Fund.
[Market and Octavia Community Improvements Fund]
Sec. 421.	Market and Octavia Community Improvements Fund.
Sec. 421.1.	Purpose and Findings Supporting the Market and Octavia Community Improvements Fund.
Sec. 421.2.	Definitions.
Sec. 421.3.	Application of Community Improvements Impact Fee.
Sec. 421.4.	Imposition of Community Infrastructure Impact Fee.
Sec. 421.5.	Market and Octavia Community Improvements Fund.
Sec. 421.6.	Director of Planning's Evaluation and Study.
[Balboa Park Community Improvements Fund]
Sec. 422.	Balboa Park Community Improvements Fund.
Sec. 422.1.	Purpose and Findings in Support of Balboa Park Community Improvements Fund.
Sec. 422.2.	Definitions.
Sec. 422.3.	Application of Community Improvement Impact Fee.
Sec. 422.4.	Imposition of Community Improvements Impact Fee.
Sec. 422.5.	Balboa Park Community Improvements Fund.
[Eastern Neighborhoods Impact Fees and Public Benefits Fund]
Sec. 423.	Eastern Neighborhoods Impact Fees and Public Benefits Fund.
Sec. 423.1.	Purpose and Findings Supporting Eastern Neighborhoods Impact Fees and Community Improvements Fund.
Sec. 423.2.	Definitions.
Sec. 423.3.	Application of Eastern Neighborhoods Infrastructure Impact Fee.
Sec. 423.4.	Imposition of Eastern Neighborhoods Infrastructure Impact Fee.
Sec. 423.5.	The Eastern Neighborhoods Community Improvements Fund.
[Van Ness & Market Affordable Housing and Neighborhood Infrastructure]
Sec. 424.	Van Ness & Market Affordable Housing and Neighborhood Infrastructure Fee and Program.
Sec. 424.1.	Findings Supporting the Van Ness & Market Affordable Housing and Neighborhood Infrastructure Fee and Program.
Sec. 424.2.	Definitions.
Sec. 424.3.	Application of Van Ness & Market Affordable Housing and Neighborhood Infrastructure Fee and Program.
Sec. 424.4.	Van Ness & Market Residential Special Use District Affordable Housing Fund.
Sec. 424.5.	Van Ness & Market Residential Special Use District Infrastructure Fund.
[Transit Center District]
Sec. 424.6.	Transit Center District Open Space Impact Fee and Fund.
Sec. 424.7.	Transit Center District Transportation and Street Improvement Impact Fee and Fund.
Sec. 424.8.	Transit Center District Mello Roos Community Facilities District Program.
[Van Ness & Market Community Facilities Fee and Fund]
Sec. 425.	Van Ness & Market Community Facilities Fee and Fund.
Sec. 425.1.	Purpose and Findings.
Sec. 425.2.	Application of Fees.
Sec. 425.3.	Imposition of Van Ness & Market Community Facilities Fee.
Sec. 425.4.	The Van Ness & Market Community Facilities Fund.
[Open Space Requirements]
Sec. 426.	Payment for Required Non-Residential Open Space Not Provided in the Eastern Neighborhoods Mixed Use and C-3-O(SD) Districts.
Sec. 427.	Payment in Cases of Variance or Exception for Required Residential Open Space in the Eastern Neighborhoods Mixed Use and C-3-O(SD) Districts.
[Divisadero Street NCT Affordable Housing Fee]
Sec. 428.	Divisadero Street NCT Affordable Housing Fee and Requirements.
Sec. 428.1.	Findings.
Sec. 428.2.	Definitions.
Sec. 428.3.	Application of Affordable Housing Fee Requirement.
Sec. 428.4.	Imposition of Affordable Housing Requirements.
Sec. 428.5.	Use of Funds.
[Public Art Fee]
Sec. 429.	Artworks, Options to Meet Public Art Fee Requirement, Recognition of Architect and Artists, and Requirements.
Sec. 429.1.	Definitions.
Sec. 429.2.	Application.
Sec. 429.3.	Imposition of Public Art Fee Requirement.
Sec. 429.4.	Compliance by Providing On-Site Public Artwork.
Sec. 429.5.	Arts Commission Public Artwork Trust Fund.
Sec. 429.6.	Recognition of Architects in C-3 Districts.
Sec. 429.7.	Lien Proceedings.
[Bicycle Parking Fee]
Sec. 430.	Bicycle Parking in Lieu Fee.
Sec. 430.1.	Bicycle Parking Fund.
—
Sec. 431.	Severability.
[Central SoMa Community Services Facilities Fee and Fund]
Sec. 432.	Central SoMa Community Services Facilities Fee and Fund.
Sec. 432.1.	Purpose and Findings.
Sec. 432.2.	Application of Fees.
Sec. 432.3.	Imposition of Central SoMa Community Services Facilities Fee.
Sec. 432.4.	The Central SoMa Community Services Facilities Fund.
[Central SoMa Infrastructure Impact Fee and Fund]
Sec. 433.	Central SoMa Infrastructure Impact Fee and Fund.
Sec. 433.1.	Purpose and Findings.
Sec. 433.2.	Application of Fees.
Sec. 433.3.	Imposition of Central SoMa Infrastructure Impact Fee.
Sec. 433.4.	The Central SoMa Infrastructure Impact Fund.
—
Sec. 434.	Central SoMa Community Facilities District Program.
[Union Square Park, Recreation, and Open Space Fee]
Sec. 435.	Union Square Park, Recreation, and Open Space Fee.
Sec. 435.1.	Purpose and Findings Supporting Union Square Park, Recreation, and Open Space Fee.
Sec. 435.2.	Definitions.
Sec. 435.3.	Application of Union Square Park, Recreation, and Open Space Fee.

 

SEC. 401. DEFINITIONS.

In addition to the specific definitions set forth in Section 102 and elsewhere in this Article 4, the following definitions shall govern interpretation of this Article:

(Amended by Ord. 63-20; Ord. 210-21; see Sec. 401 history note.)

A

   “Affordable Price.” The price at which the Owned Unit would be Affordable to Qualifying Households.

(Added by Ord. 258-24; see Sec. 401 history note.)

   “Affordable Unit” or “Affordable Housing Unit.” A unit that is Affordable to Qualifying Households under Section 415 et seq.

(Amended by Ord. 210-21; Ord. 258-24; see Sec. 401 history note.)

   "Affordable to a household" shall mean a purchase price that a household can afford to pay based on an annual payment for all housing costs, as defined in California Code of Regulations ("CCR") Title 25, Section 6920, as amended from time to time, of 33 percent of the combined household annual gross income, assuming a down payment recommended by the Mayor's Office of Housing in the Procedures Manual, and available financing, or a rent that does not exceed 30 percent of a household's combined annual gross income. Where applicable, the purchase price or rent may be adjusted to reflect the absence or existence of a parking space(s), subject to the Department's policy on unbundled parking for affordable housing units as specified in the Procedures Manual and amended from time to time.

   “Affordable to Qualifying Households.”

      (A)   With respect to Owned Units, the average purchase price on the initial sale of all Owned Units in a housing project shall not exceed the allowable average purchase price. Each unit shall be sold:

         (i)   Only to first-time homebuyer households, as defined in this Section;

         (ii)   Only to households with an annual gross income equal to or less than the qualifying income limits for a household of moderate income, adjusted for household size, except for the exceptions set forth in Section 415.8(a)(4)(C), (D), and (E);

         (iii)   Only to households that meet the household size requirements, as defined in the Procedures Manual;

         (iv)   On the initial sale, at or below the maximum purchase price, as defined in this Section;

         (v)   On subsequent sales at or below the prices to be determined according to the formula specified in the Procedures Manual in place at the time of the purchase of the Owned Unit, as amended from time to time, such that the units remain affordable for the life of the project. The formula in the Procedures Manual shall permit the seller to include certain allowable capital improvements in the new maximum purchase price. The formula shall include a per unit cap on capital improvements of 10% of the resale price in order to maintain affordability. Special Assessments shall be added to the resale price at an uncapped rate. Capital improvement requests shall be evaluated by the Mayor’s Office of Housing according to the formula specified in the Procedures Manual.

      (B)   With respect to Rental Units, the average annual rent shall not exceed the allowable average annual rent. Each unit shall be rented:

         (i)   Only to households with an annual gross income equal to or less than qualifying limits for a household of lower income adjusted for household size, as defined in this Section, except for the exceptions set forth in Section 415.8(a)(4)(A) and (B);

         (ii)   Only to households that meet the household size requirements, as defined in the Procedures Manual;

         (iii)   At or less than the maximum annual rent.

(Amended by Ord. 210-21; see Sec. 401 history note.)

   “Allowable average purchase price.” A price for all Owned Units of the size indicated below that are affordable to a household of median income as defined in this Section, adjusted for the household size indicated below as of the date of the close of escrow, except for Single Room Occupancy units and Group Housing units that are less than 350 square feet (both as defined in Section 102), which shall be 75% of the maximum purchase price level for studio units, and, where applicable, adjusted to reflect the Department's policy on unbundled parking for affordable housing units as specified in the Procedures Manual and amended from time to time:

 

Number of Bedrooms (or, for live/work units square foot equivalency)	Number of Persons in Household
0 (Less than 600 square feet)	1
1 (601 to 850 square feet)	2
2 (851 to 1,100 square feet)	3
3 (1,101 to 1,300 square feet)	4
4 (More than 1,300 square feet)	5

 

(Amended by Ord. 164-15; Ord. 210-21 ; see Sec. 401 history note.)

   “Allowable average annual rent.” Annual rent for a Rental Unit of the size indicated below that is 30% of the annual gross income of a household of low income as defined in this Section, adjusted for the household size indicated below except for Single Room Occupancy units and Group Housing units that are less than 350 square feet (both as defined in Section 102), which shall be 75% of the maximum rent level for studio units, and, where applicable, adjusted to reflect the Department's policy on unbundled parking for affordable housing units as specified in the Procedures Manual and amended from time to time:

 

Number of Bedrooms (or, for live/work units square foot equivalency)	Number of Persons in Household
0 (Less than 600 square feet)	1
1 (601 to 850 square feet)	2
2 (851 to 1,100 square feet)	3
3 (1,101 to 1,300 square feet)	4
4 (More than 1,300 square feet)	5

 

At no time can a rent increase, or can multiple rent increases within one year, exceed the percentage change in Maximum Monthly Rent levels as published by MOHCD from the previous calendar year to the current calendar year.

(Amended by Ord. 164-15; Ord. 210-21; see Sec. 401 history note.)

   "Area Median Income" or "AMI." The unadjusted median income levels derived from the Department of Housing and Urban Development ("HUD") on an annual basis for the San Francisco area, adjusted solely for household size, but not high housing cost area.

   “Annual gross income.” Gross income as defined in CCR Title 25, Section 6914, as amended from time to time, except that MOHCD may, in order to promote consistency with the procedures of the San Francisco Redevelopment Agency, develop an asset test that differs from the State definition if it publishes that test in the Procedures Manual.

(Amended by Ord. 210-21; see Sec. 401 history note.)

   "Annual net income." Net income as defined in Title 25 of the California Code of Regulations Section 6916.

   "Area Plan Impact Fee" shall mean a development impact fee collected by the City to mitigate impacts of new development in the Area Plans of the San Francisco General Plan, under Article 4 of the Planning Code.

(Added by Ord. 200-15 and Ord. 222-15 ; see Sec. 401 history note.)

   “Average annual rent.” The total annual rent for the calendar year charged by a housing project for all Rental Units in the project of an equal number of bedrooms divided by the total number of Affordable Units in the project with that number of bedrooms.

(Amended by Ord. 210-21; see Sec. 401 history note.)

   “Average purchase price.” The purchase price for all Owned Units in an affordable housing project of an equal number of bedrooms divided by the total number of Affordable Units in the project with that number of bedrooms.

(Amended by Ord. 210-21; see Sec. 401 history note.)

B

   "Balboa Park Community Improvements Fund." The fund into which all fee revenue the City collects from the Balboa Park Impact Fee is deposited.

   "Balboa Park Community Improvements Program." The program intended to implement the community improvements identified in the Balboa Park Area Plan, as articulated in the Balboa Park Community Improvements Program Document on file with the Clerk of the Board in File No. 090179.

   "Balboa Park Impact Fee." The fee collected by the City to mitigate impacts of new development in the Balboa Park Program Area, as described in the findings in Section 422.1.

   "Balboa Park Program Area." The Balboa Park Plan Area in Figure 1 of the Balboa Park Station Area Plan of the San Francisco General Plan.

   "Base service standard." The relationship between revenue service hours offered by the Municipal Railway and the number of automobile and transit trips estimated to be generated by certain non-residential uses, expressed as a ratio where the numerator equals the average daily revenue service hours offered by MUNI and the denominator equals the daily automobile and transit trips generated by non-residential land uses as estimated by the TIDF Study, the TIDF Update Report, or as updated under Section 410 of this Article.

   "Base service standard fee rate." The TIDF that would allow the City to recover the estimated costs incurred by the Municipal Railway to meet the demand for public transit resulting from new development in the economic activity categories for which the fee is charged, after deducting government grants, fare revenue, and costs for non-vehicle maintenance and general administration.