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(a) Except as provided in Subsection (b), the TSF shall apply to any Development Project in the City that results in:
(1) More than twenty new dwelling units;
(2) New group housing facilities, or additions of 800 gross square feet or more to an existing group housing facility;
(3) New construction of a Non-Residential use in excess of 800 gross square feet, or additions of 800 gross square feet or more to an existing Non-Residential use; or
(4) New construction of a PDR use in excess of 1,500 gross square feet, or additions of 1,500 gross square feet or more to an existing PDR use; or
(5) Change or Replacement of Use, such that the rate charged for the new use is higher than the rate charged for the existing use, regardless of whether the existing use previously paid the TSF or TIDF.
(6) Change or Replacement of Use from a Hospital or a Health Service to any other use.
(b) Exemptions. Notwithstanding Subsection (a), the TSF shall not apply to the following:
(1) City Projects. Development Projects on property owned by the City, except for that portion of a Development Project that may be developed by a private sponsor and not intended to be occupied by the City or other agency or entity exempted under Section 411A, in which case the TSF shall apply only to such non-exempted portion. Development Projects on property owned by a private person or entity and leased to the City shall be subject to the fee, unless such Development Project is otherwise exempted under Section 411A.
(2) Redevelopment Projects and Projects with Development Agreements. Development Projects in a Redevelopment Plan Area or in an area covered by a Development Agreement in existence at the time a building or site permit is issued for the Development Project, to the extent payment of the TSF would be inconsistent with such Redevelopment Plan or Development Agreement.
(3) Projects of the United States. Development Projects located on property owned by the United States or any of its agencies to be used exclusively for governmental purposes.
(4) Projects of the State of California. Development Projects located on property owned by the State of California or any of its agencies to be used exclusively for governmental purposes.
(6) Small Businesses. Each Change of Use from PDR to Non-Residential, or expansion of an existing PDR or Non-Residential use through an addition that adds new gross floor area to an existing building, shall be exempt from the TSF, provided that: (A) the gross square footage of the resulting individual unit of PDR or Non-Residential use is not greater than 5,000 gross square feet, and (B) the resulting use is not a Formula Retail use, as defined in Section 303.1 of this Code. This exemption shall not apply to new construction or Replacement of Use.
(7) Charitable Exemptions.
(A) The TSF shall not apply to any portion of a project located on a property or portion of a property that will be exempt from real property taxation or possessory interest taxation under California Constitution, Article XIII, Section 4, as implemented by California Revenue and Taxation Code Section 214. However, any Hospital or Health Service that requires an Institutional Master Plan under Section 304.5 of the Planning Code shall not be eligible for this charitable exemption, and shall as of the effective date of this Ordinance* be subject to the TSF, as set forth in Section 411A.4 and 411A.5, below.
(B) Any project receiving a Charitable Exemption shall maintain its tax exempt status, as applicable, for at least 10 years after the issuance of its Certificate of Final Completion. If the property or portion thereof loses its tax exempt status within the 10-year period, then the property owner shall be required to pay the TSF that was previously exempted. Such payment shall be required within 90 days of the property losing its tax exempt status.
(C) If a property owner fails to pay the TSF within the 90-day period, a notice for request of payment shall be served by the Development Fee Collection Unit at DBI under Section 107A.13 of the San Francisco Building Code. Thereafter, upon nonpayment, a lien proceeding shall be instituted under Section 408 of this Article and Section 107A.13.15 of the San Francisco Building Code.
(D) The Zoning Administrator shall approve and order the recordation of a Notice in the Official Records of the Recorder of the City and County of San Francisco for the subject property prior to the issuance of a building or site permit. This Notice shall state the amount of the TSF exempted per this subsection (b)(7). It shall also state the requirements and provisions of subsections (b)(7)(B) and (b)(7)(C) above.
(c) Timing of Payment. The TSF shall be paid at the time of and in no event later than when the City issues a first construction document, with an option for the project sponsor to defer payment to prior to issuance of the first certificate of occupancy upon agreeing to pay a deferral surcharge in accordance with Section 107A.13.3 of the San Francisco Building Code.
(2) Projects that have filed a Development Application or environmental review application on or before July 21, 2015, and have not received approval of any such application, shall be subject to the TSF as follows, except as described in subsection (3) below:
(A) Residential Uses subject to the TSF shall pay 50% of the applicable residential TSF rate, as well as any other applicable fees.
(3) Projects that have not filed a Development Application or environmental review application before July 22, 2015, and file the first such application on or after July 22, 2015, and have not received approval of any such application, as well as projects within the Central SoMa Special Use District that have a Central SoMa Fee Tier of A, B, or C, as defined in Section 423.2, regardless of the date filed of any Development Application, shall be subject to the TSF as follows:
(A) Residential Uses subject to the TSF shall pay 100% of the applicable residential TSF rate, as well as any other applicable fees.
(B) The Non-residential or PDR portion of any project shall pay 100% of the applicable Non-residential or PDR TSF rate, as well as any other applicable fees.
(e) Effect of TSF on TIDF and Development Subject to TIDF.
(A) Section 411et seq. shall remain operative and effective with respect to any Redevelopment Plan, Development Agreement, Interagency Cooperation Agreement, or any other agreement entered into by the City, the former Redevelopment Agency or the Successor Agency to the Redevelopment Agency, that is valid and effective on the effective date of Section 411A, and that by its terms would preclude the application of Section 411A, and instead allow for the application of Section 411et seq.
(2) Notwithstanding subsection (e)(1) above, if the City Attorney certifies in writing to the Clerk of the Board of Supervisors that a court has determined that the provisions of Section 411A are invalid or unenforceable in whole or substantial part, the provisions of Section 411 shall no longer be suspended and shall become operative as of the effective date of the court ruling. In that event, the City Attorney shall cause to be printed appropriate notations in the Planning Code indicating that the provisions of Section 411A are suspended, and the provisions of Section 411 are no longer suspended.
(3) The City Attorney's certification referenced in subsection (e)(2) above shall be superseded if the City Attorney thereafter certifies in writing to the Clerk of the Board of Supervisors that the provisions of Section 411A are valid and enforceable in whole or in substantial part because the court decision referenced in subsection (e)(2) has been reversed, overturned, invalidated, or otherwise rendered inoperative with respect to Section 411A. In that event, the provisions of Section 411A shall no longer be suspended and shall become operative as of the date the court decision no longer governs, and the provisions of Section 411 shall be suspended except as specified in Section 411A. Further, the City Attorney shall cause to be printed appropriate notations in the Planning Code indicating the same.
Divisions (d)(1), (d)(2), (d)(2)(B), and (d)(3) amended; Ord. 296-18, Eff. 1/12/2019.