SEC. 206.3. HOUSING OPPORTUNITIES MEAN EQUITY - SAN FRANCISCO PROGRAM.

   (a)   Purpose. This Section 206.3 sets forth the HOME-SF Program. The HOME-SF Program or “HOME-SF” provides benefits to project sponsors of housing projects that either (1) set aside residential units onsite at below market rate rent or sales price in an amount higher than the amount required by the Inclusionary Housing Ordinance, or (2) agree to subject all units in the project, except for units required by the Inclusionary Housing Ordinance, to the San Francisco Rent Stabilization and Arbitration Ordinance (Chapter 37 of the Administrative Code). The purpose of HOME-SF is to expand the number of below market rate units produced in San Francisco and provide housing opportunities to a wider range of incomes than traditional affordable housing programs, such as the City’s Inclusionary Affordable Housing Program, Planning Code Sections 415 et seq., which typically provide housing only for very low, low or moderate income households, and to expand the number of units in San Francisco that are subject to rent control. For projects that elect to provide additional on-site below market rate units, HOME-SF also provides an alternative method of complying with the on-site inclusionary option set forth in Section 415.6. HOME-SF allows market-rate projects to match the City’s Proposition K (November 2014) housing goals that 50% of new housing constructed or rehabilitated in the City by 2020 be within the reach of working middle class San Franciscans, and that at least 33% be affordable for low and moderate income households, and the Housing Element of the General Plan’s finding that rent control has been critical to protecting low- and moderate-income residents from being at risk of eviction and displacement..1

   (b)   Applicability. A HOME-SF Project under this Section 206.3 shall be a project that:

      (1)   contains three or more residential units, as defined in Section 102, not including any Group Housing as defined in Section 102, efficiency dwelling units with reduced square footage defined in Section 318, and Density Bonus Units permitted through this Section 206.3, or any other density bonus;

      (2)   is located in any zoning district that: (A) is not designated as an RH-1 or RH-2 Zoning District; and (B) establishes a maximum dwelling unit density through a ratio of number of units to lot area, including RH-3, RM, RC, C-2, Neighborhood Commercial, Named Neighborhood Commercial, and SoMa Mixed Use Districts; but only if the SoMa Mixed Use District has a density measured by a maximum number of dwelling units per square foot of lot area; (C) is not in the North of Market Residential Special Use District, Planning Code Section 249.5, until the Affordable Housing Incentive Study is completed at which time the Board will review whether the North of Market Residential Special Use District should continue to be excluded from this Program. The Study will explore opportunities to support and encourage the provision of housing at the low, moderate, and middle income range in neighborhoods where density controls have been eliminated. The goal of this analysis is to incentivize increased affordable housing production levels at deeper and wider ranges of AMI and larger unit sizes in these areas through 100% affordable housing development as well as below market rate units within market rate developments; (D) is not located within the boundaries of the Northeastern Waterfront Area Plan south of the centerline of Broadway; (E) is not located on property under the jurisdiction of the Port of San Francisco; and (F) is not located in a designated historic district under Article 10 of this Code;

      (3)   is not seeking and receiving a density or development bonus under the provisions of California Government Code Sections 65915 et seq., Planning Code Section 207, Section 124(f), Section 202.2(f), Section 304, or any other State or local program that provides development bonuses;

      (4)   includes at least 135% of the Base Density as calculated under Planning Code Section 206.5;

      (5)   consists of new construction, and excluding any project that includes an addition to an existing structure;

      (6)   complies with the on-site Inclusionary Affordable Housing option set forth in Planning Code Section 415.6. If the project elects to provide HOME-SF Units as set forth in subsection (c)(1)(A), the project shall comply with the on-site Inclusionary Affordable Housing option set forth in Planning Code Section 415.6, provided however, that the percentage of affordable units and the required affordable sales price or affordable rents set forth in Section 415.6(a) shall be as provided in Section 206.3(c)(1)(A), or Section 206.3(f), as applicable;

      (7)   if any retail use is demolished or removed, does not include a Formula Retail use, as defined in Planning Code Section 303.1, unless the retail use demolished or removed was also a Formula Retail Use, or was one of the following uses: Gas Stations, Private or Public Parking Lots, Financial Services, Fringe Financial Services, Self Storage, Motel, Automobile Sales or Rental, Automotive Wash, Mortuaries, Adult Business, Massage Establishment, Medical Cannabis Dispensary, and Tobacco Paraphernalia Establishment, as those uses are defined in Planning Code Section 102;

      (8)   if located north of the centerline of Post Street and east of the centerline of Van Ness Avenue, all otherwise eligible HOME-SF Projects shall only be permitted on:

         (A)   lots containing no existing buildings; or

         (B)   lots equal to or greater than 12,500 square feet where existing buildings are developed to less than 20% of the lot’s principally permitted buildable gross floor area as determined by height limits, rear yard requirements, and required setbacks; and

      (9)   if the City enacts an ordinance directing the Planning Department to study the creation of a possible area plan wholly or partially located in Supervisorial District 9, HOME-SF Projects shall not be permitted in any area in Supervisorial District 9 listed in the ordinance until such time as the City enacts the area plan.

   (c)   HOME-SF Project Eligibility Requirements. To receive the development bonuses granted under this Section 206.3, a HOME-SF Project must meet all of the following requirements:

      (1)   Agree to either:

         (A)   Except as limited in application by subsection (f), provide 30% of units in the HOME-SF Project as HOME-SF Units, as defined herein. The HOME-SF Units shall be restricted for the Life of the Project and shall comply with all of the requirements of the Procedures Manual authorized in Section 415 except as otherwise provided herein. Twelve percent of HOME-SF Units that are Owned Units shall have an average affordable purchase price set at 80% of Area Median Income; 9% shall have an average affordable purchase price set at 105% of Area Median Income; and 9% shall have an average affordable purchase price set at 130% of Area Median Income. Twelve percent of HOME-SF Units that are rental units shall have an average affordable rent set at 55% of Area Median Income; 9% shall have an average affordable rent set at 80% of Area Median Income; and 9% shall have an average affordable rent set at 110% of Area Median Income. All HOME-SF Units must be marketed at a price that is at least 20% less than the current market rate for that unit size and neighborhood, and MOHCD shall reduce the Area Median Income levels set forth herein in order to maintain such pricing. As provided in subsection (e), the Planning Department and MOHCD shall amend the Procedures Manual to provide policies and procedures for the implementation, including monitoring and enforcement, of the HOME-SF Units; or,

         (B)   Subject all new Dwelling Units, except for any Affordable Units as defined in Planning Code Section 401, to the San Francisco Residential Rent Stabilization and Arbitration Ordinance (Chapter 37 of the Administrative Code) as may be amended from time to time. The option in this subsection (c)(1)(B) shall also be available for projects not subject to the Inclusionary Affordable Housing Ordinance, Planning Code Sections 415.1 through 415.11.

      (2)   All HOME-SF units shall be no smaller than the minimum unit sizes set forth by the California Tax Credit Allocation Committee as of May 16, 2017, and no smaller than 300 square feet for studios. In addition, notwithstanding any other provision of this Code, HOME-SF projects shall provide a minimum dwelling unit mix of (A) at least 40% two and three bedroom units, including at least 10% three bedroom units, or (B) any unit mix which includes some three bedroom or larger units such that 50% of all bedrooms within the HOME-SF Project are provided in units with more than one bedroom. Larger units should be distributed on all floors, and prioritized in spaces adjacent to open spaces or play yards. Units with two or three bedrooms are encouraged to incorporate family friendly amenities. Family friendly amenities shall include, but are not limited to, bathtubs, dedicated cargo bicycle parking, dedicated stroller storage, open space and yards designed for use by children. HOME-SF Projects are not eligible to modify this requirement under Planning Code Section 328 or any other provision of this Code;

      (3)   Does not demolish, remove, or convert more than one residential unit; and

      (4)   Includes at the ground floor level active uses, as defined in Section 145.1, at the same square footages as any neighborhood commercial uses demolished or removed, unless the Planning Commission has granted an exception under Section 328.

   (d)   Development Bonuses. Any HOME-SF Project shall, at the project sponsor’s request, receive any or all of the following:

      (1)   Form based density. Except as limited in application by subsection (f): Notwithstanding any zoning designation to the contrary, density of a HOME-SF Project shall not be limited by lot area but rather by the applicable requirements and limitations set forth elsewhere in this Code. Such requirements and limitations include, but are not limited to, height, including any additional height allowed by subsection (d)(2), Bulk, Setbacks, Required Open Space, Exposure and unit mix as well as applicable design guidelines, elements, and area plans of the General Plan and design review, including consistency with the Affordable Housing Bonus Program Design Guidelines, referenced in Section 328, as determined by the Planning Department.

      (2)   Height. Except as limited in application by subsection (f): Up to 20 additional feet above the height authorized for the HOME-SF Project under the Height Map of the Zoning Map. This additional height may only be used to provide up to two additional 10-foot stories to the project, or one additional story of no more than 10 feet in height. Building features exempted from height controls under Planning Code Section 260(b) shall be measured from the roof level of the highest story provided under this subsection (d)(2).

      (3)   Ground Floor Ceiling Height. Except as limited in application by subsection (f): In addition to the permitted height allowed under subsection (d)(2), HOME-SF Projects with active uses on the ground floor as defined in Section 145.1(b)(2) shall receive up to a maximum of five additional feet in height above the height limit, in addition to the additional 20 feet granted in subsection (d)(2). However, the additional five feet may only be applied at the ground floor to provide a 14-foot (floor to ceiling) ceiling height for nonresidential uses, and to allow walk-up dwelling units to be consistent with the Ground Floor Residential Design Guidelines. This additional five feet shall not be granted to projects that already receive such a height increase under Planning Code Section 263.20.

      (4)   Zoning Modifications. HOME-SF Projects may receive the following zoning modifications:

         (A)   Rear yard: The required rear yard per Section 134 or any applicable special use district may be reduced to no less than 20% of the lot depth, or 15 feet, whichever is greater. Corner properties may provide 20% of the lot area at the interior corner of the property to meet the minimum rear yard requirement, provided that each horizontal dimension of the open area is a minimum of 15 feet; and that the open area is wholly or partially contiguous to the existing midblock open space, if any, formed by the rear yards of adjacent properties.

         (B)   Dwelling Unit Exposure: The dwelling unit exposure requirements of Section 140(a)(2) may be satisfied through qualifying windows facing an unobstructed open area that is no less than 25 feet in every horizontal dimension, and such open area is not required to expand in every horizontal dimension at each subsequent floor.

         (C)   Off-Street Loading: Off-street loading spaces per Section 152 shall not be required.

         (D)   Open Space: Up to a 10% reduction in common open space if provided under Section 135 or any applicable special use district.

         (E)   Private Open Space: A reduction in private open space required under Section 135. However, in no case shall such private open space be less than 36 square feet or measure less than six feet in each direction.

         (F)   Inner Courts as Open Space: For an inner court to qualify as usable common open space, Section 135(g)(2) requires it to be at least 20 feet in every horizontal dimension, and for the height of the walls and projections above the court on at least three sides (or 75% of the perimeter, whichever is greater) to be no higher than one foot for each foot that such point is horizontally distant from the opposite side of the clear space in the court. HOME-SF Projects may instead provide an inner court that is at least 25 feet in every horizontal dimension, with no restriction on the heights of adjacent walls. All area within such an inner court shall qualify as common open space under Section 135.

      (5)   Priority Processing and Planning Commission approval. HOME-SF Projects shall be reviewed in coordination with relevant priority processing and shall be approved, denied, or approved subject to conditions by the Planning Commission under Section 328, within 180 days of submittal of a complete project application, unless the Environmental Review Officer determines that an environmental impact report is required for the project under Administrative Code section 31.09.

   (e)   Implementation.

      (1)   Application. An application to participate in the HOME-SF Program shall be submitted with the first application for approval of a Housing Project and processed concurrently with all other applications required for the Housing Project. The application shall be submitted on a form prescribed by the City and shall include at least the following information:

         (A)   A full plan set, including a site plan, elevations, sections, and floor plans, showing total number of units, number of and location of HOME-SF Units, if any; and a draft Regulatory Agreement;

         (B)   The requested development bonuses and/or zoning modifications from those listed in subsection (d).

         (C)   A list of all on-site family friendly amenities. Family friendly amenities shall include, but are not limited to, dedicated cargo bicycle parking, dedicated stroller storage, open space and yards designed for use by children.

         (D)   Documentation that the applicant has provided written notification to all existing commercial or residential tenants that the applicant intends to develop the property pursuant to this section 206.3 and has provided any existing commercial tenants with a copy of the Office of Economic and Workforce Development’s Guide to Small Business Retention and Relocation Support. Any affected commercial tenants shall be given priority processing similar to the Department’s Community Business Priority Processing Program, as adopted by the Planning Commission on February 12, 2015, under Resolution Number 19323, to support relocation of such business in concert with access to relevant local business support programs.

      (2)   Procedures Manual. The Planning Department and MOHCD shall amend the Procedures Manual, authorized in Section 415, to include policies and procedures for the implementation, including monitoring and enforcement, of HOME-SF Units. As an amendment to the Procedures Manual, such policies and procedures are subject to review and approval by the Planning Commission under Section 415. Amendments to the Procedures Manual shall include a requirement that project sponsors in specified areas complete a market survey of the area before marketing HOME-SF Units.

      (3)   Notice and Hearing. HOME-SF Projects shall comply with Section 306 for review and approval.

      (4)   Controls. HOME-SF Projects shall be governed by the procedures and timelines in Section 328. A HOME-SF Project shall be exempt from any other discretionary approval process by the Planning Commission, including but not limited to a conditional use authorization, unless that conditional use authorization requirement or other discretionary approval process was adopted by the voters of San Francisco. If a HOME-SF Project would otherwise require a conditional use authorization due to the type of use or use size, or to provide parking in excess of what is principally permitted, then the Planning Commission shall make any findings or comply with any criteria required by such conditional use in its HOME-SF authorization under Section 328.

      (5)   Regulatory Agreements. Recipients of development bonuses under this Section 206.3 shall enter into a Regulatory Agreement with the City, as follows.

         (A)   The terms of the agreement shall be acceptable in form and content to the Planning Director, the Director of MOHCD, and the City Attorney. The Planning Director shall have the authority to execute such agreements.

         (B)   Following execution of the agreement by all parties, the completed Regulatory Agreement, or memorandum thereof, shall be recorded and the conditions filed and recorded on the Housing Project.

         (C)   The approval and recordation of the Regulatory Agreement shall take place prior to the issuance of the First Construction Document. The Regulatory Agreement shall be binding to all future owners and successors in interest.

         (D)   The Regulatory Agreement shall be consistent with the guidelines of the City’s Inclusionary Housing Program and shall include at a minimum the following:

            (i)   The total number of dwelling units approved for the Housing Project, including the number of HOME-SF Units, if any, or other restricted units;

            (ii)   A description of the household income group to be accommodated by the HOME-SF Units, if any, and the standards for determining the corresponding Affordable Rent or Affordable Sales Price. If required by the Procedures Manual, the project sponsor must commit to completing a market survey of the area before marketing HOME-SF Units;

            (iii)   The location, dwelling unit sizes (in square feet), and number of bedrooms of the HOME-SF Units, if any;

            (iv)   Term of use restrictions for the life of the project;

            (v)   A schedule for completion and occupancy of HOME-SF Units, if any;

            (vi)   A description of any Concession, Incentive, waiver, or modification being provided by the City;

            (vii)   A description of remedies for breach of the agreement (the City may identify tenants or qualified purchasers as third party beneficiaries under the agreement);

            (viii)   Other provisions to ensure implementation and compliance with this Section;

            (ix)   For projects that elect to proceed under Section 206.3(c)(1)(B), a statement that the units included in such project, except for any Affordable Units as defined in Planning Code Section 401, are not subject to the Costa-Hawkins Rental Housing Act (California Civil Code Sections 1954.50 et seq.) because under Section 1954.52(b), the property owner has entered into and agreed to the terms of the agreement with the City in consideration for additional density and modifications to the Planning Code, or other direct financial contribution or forms of assistance specified in California Government Code Sections 65915 et seq;1 and

            (x)   For projects that elect to proceed under Section 206.3(c)(1)(B), an agreement that any lease, sublease, or other agreement regarding tenancy of units not subject to the Costa-Hawkins Rental Housing Act (California Civil Code Sections 1954.50 et seq.) shall shall1 include the following text: “This unit is a rental unit subject to the San Francisco Residenital1 Rent Stabilization and Arbitration Ordinance.”

   (f)   Temporary provisions. To facilitate the construction of HOME-SF projects that elect to include HOME SF Units under subsection (c)(1)(A), and based on information from the inclusionary housing study prepared for the Divisadero and Fillmore Neighborhood Commercial Transit District, in Board of Supervisors File No. 151258, and the Office of the Controller’s Inclusionary Housing Working Group final report (February 2016), the HOME-SF program shall include development incentives as specified in this subsection (f) based on the amount and level of affordability provided in this subsection (f). For any development project that has submitted a complete Development Application prior to January 1, 2020, subsections (c)(1)(A) and (d)(1), (d)(2), and (d)(3) shall not apply, and the provisions in this subsection (f) shall apply. For any development project that submits a complete Development Application on or after January 1, 2020, this subsection (f) shall apply until such time as it may be amended based on the Triennial Economic Feasibility Analysis established in Section 415.10. This subsection (f) shall not apply to HOME-SF projects that elect to proceed under subsection (c)(1)(B).

      (1)   HOME-SF Project Eligibility Requirements. To receive the development bonuses granted under this Section 206.3, a HOME-SF Project must provide a percentage of units, in the amounts set forth in section 206.3(f)(2)(A), (B), or (C), as HOME-SF Units, as defined in Section 206.2. The HOME-SF Units shall be restricted for the Life of the Project and shall comply with all of the requirements of the Procedures Manual authorized in Section 415 except as otherwise provided in this Section 206.3. All HOME-SF Units must be marketed at a price that is at least 20% less than the current market rate for that unit size and neighborhood, and MOHCD shall reduce the Area Median Income levels set forth in this Section 206.3 in order to maintain such pricing. As provided for in subsection (e), the Planning Department and MOHCD shall amend the Procedures Manual to provide policies and procedures for the implementation, including monitoring and enforcement, of the HOME-SF Units;

      (2)   Development Bonuses. Any HOME-SF Project shall at the project sponsor’s request receive the following:

         (A)   Tier One: A Tier One HOME-SF Project that consists of fewer than 25 units and are Owned Units shall provide 20% of units in the HOME-SF Project as HOME-SF Units at the following levels: ten percent shall have an average affordable purchase price set at 80% of Area Median Income; 5% shall have an average affordable purchase price set at 105% of Area Median Income; and 5% shall have an average affordable purchase price set at 130% of Area Median Income. A Tier One HOME-SF Project that consists of fewer than 25 units and are rental units shall provide 20% of units in the HOME-SF Project as HOME-SF Units at the following levels: ten percent shall have an average affordable rent set at 55% of Area Median Income; 5% shall have an average affordable rent set at 80% of Area Median Income; and 5% shall have an average affordable rent set at 110% of Area Median Income. A Tier One HOME-SF Project that consists of 25 or more units and are Owned Units shall provide 23% of units in the HOME-SF Project as HOME-SF Units at the following levels: ten percent shall have an average affordable purchase price set at 80% of Area Median Income; 8% shall have an average affordable purchase price set at 105% of Area Median Income; and 5% shall have an average affordable purchase price set at 130% of Area Median Income. A Tier One HOME-SF Project that consists of 25 or more units and are Rental Units shall provide 23% of units in the HOME-SF Project as HOME-SF Units at the following levels: ten percent shall have an average affordable rent set at 55% of Area Median Income; 8% shall have an average affordable rent set at 80% of Area Median Income; and 5% shall have an average affordable rent set at 110% of Area Median Income.

            (i)   Form based density. Notwithstanding any zoning designation to the contrary, density of a Tier One HOME-SF Project shall not be limited by lot area but rather by the applicable requirements and limitations set forth elsewhere in this Code. Such requirements and limitations include, but are not limited to, height, Bulk, Setbacks, Required Open Space, Exposure, and unit mix as well as applicable design guidelines, elements and area plans of the General Plan and design review, including consistency with the Affordable Housing Bonus Program Design Guidelines, referenced in Section 328, as determined by the Planning Department.

            (ii)   Ground Floor Ceiling Height. Tier One HOME-SF Projects with active uses on the ground floor as defined in Section 145.1(b)(2) shall receive up to a maximum of five additional feet in height above the height limit. However, the additional five feet may only be applied at the ground floor to provide a 14-foot (floor to ceiling) ceiling height for nonresidential uses, and to allow walk-up dwelling units to be consistent with the Ground Floor Residential Design Guidelines. This additional five feet shall not be granted to projects that already receive such a height increase under Planning Code Section 263.20.

         (B)   Tier Two: A Tier Two HOME-SF Project shall provide 25% of units in the HOME-SF Project as HOME-SF Units. Ten percent of Tier Two HOME-SF Units that are Owned Units shall have an average affordable purchase price set at 80% of Area Median Income; 8% shall have an average affordable purchase price set at 105% of Area Median Income; and 7% shall have an average affordable purchase price set at 130% of Area Median Income. Ten percent of HOME-SF Units that are rental units shall have an average affordable rent set at 55% of Area Median Income; 8% shall have an average affordable rent set at 80% of Area Median Income; and 7% shall have an average affordable rent set at 110% of Area Median Income.

            (i)   Form based density. Notwithstanding any zoning designation to the contrary, density of a Tier Two HOME-SF Project shall not be limited by lot area but rather by the applicable requirements and limitations set forth elsewhere in this Code. Such requirements and limitations include, but are not limited to, height, including any additional height allowed by subsections (f)(2)(B)(ii) and (iii), Bulk, Setbacks, Required Open Space, Exposure, and unit mix as well as applicable design guidelines, elements, and area plans of the General Plan and design review, including consistency with the Affordable Housing Bonus Program Design Guidelines, referenced in Section 328, as determined by the Planning Department.

            (ii)   Height. Up to 10 additional feet above the height authorized for the Tier Two HOME-SF Project under the Height Map of the Zoning Map. This additional height may only be used to provide up to one additional story of no more than 10 feet in height. Building features exempted from height controls under Planning Code Section 260(b) shall be measured from the roof level of the highest story provided under this subsection (f)(2)(B)(ii).

            (iii)   Ground Floor Ceiling Height. In addition to the permitted height allowed under subsection (f)(2)(B)(ii), Tier Two HOME-SF Projects with active uses on the ground floor as defined in Section 145.1(b)(2) shall receive up to a maximum of five additional feet in height above the height limit. However, the additional five feet may only be applied at the ground floor to provide a 14-foot (floor to ceiling) ceiling height for nonresidential uses, and to allow walk-up dwelling units to be consistent with the Ground Floor Residential Design Guidelines. This additional five feet shall not be granted to projects that already receive such a height increase under Planning Code Section 263.20.

         (C)   Tier Three: A Tier Three HOME-SF Project shall provide 30% of units in the HOME-SF Project as HOME-SF Units. Ten percent of Tier Three HOME-SF Units that are Owned Units shall have an average affordable purchase price set at 80% of Area Median Income; 10% shall have an average affordable purchase price set at 105% of Area Median Income; and 10% shall have an average affordable purchase price set at 130% of Area Median Income. Ten percent of Tier Three HOME-SF Units that are rental units shall have an average affordable rent set at 55% of Area Median Income; 10% shall have an average affordable rent set at 80% of Area Median Income; and 10% shall have an average affordable rent set at 110% of Area Median Income.

            (i)   Form based density. Notwithstanding any zoning designation to the contrary, density of a Tier Three HOME-SF Project shall not be limited by lot area but rather by the applicable requirements and limitations set forth elsewhere in this Code. Such requirements and limitations include, but are not limited to, height, including any additional height allowed by subsections (f)(2)(C)(ii) and (iii), Bulk, Setbacks, Required Open Space, Exposure, and unit mix as well as applicable design guidelines, elements, and area plans of the General Plan and design review, including consistency with the Affordable Housing Bonus Program Design Guidelines, referenced in Section 328, as determined by the Planning Department.

            (ii)   Height. Up to 20 additional feet above the height authorized for the Tier Three HOME-SF Project under the Height Map of the Zoning Map. This additional height may only be used to provide up to two additional 10-foot stories to the project, or one additional story of no more than 10 feet in height. Building features exempted from height controls under Planning Code Section 260(b) shall be measured from the roof level of the highest story provided under this section.

            (iii)   Ground Floor Ceiling Height. In addition to the permitted height allowed under subsection (f)(2)(C)(ii), Tier Three HOME-SF Projects with active uses on the ground floor as defined in Section 145.1(b)(2) shall receive up to a maximum of five additional feet in height above the height limit. However, the additional five feet may only be applied at the ground floor to provide a 14-foot (floor to ceiling) ceiling height for nonresidential uses, and to allow walk-up dwelling units to be consistent with the Ground Floor Residential Design Guidelines. This additional five feet shall not be granted to projects that already receive such a height increase under Planning Code Section 263.20.

(Added by Ord. 116-17, File No. 150969, App. 6/13/2017, Eff. 7/13/2017; amended by Ord. 198-18, File No. 180456, App. 8/10/2018, Eff. 9/10/2018; Ord. 202-18, File No. 180557, App. 8/10/2018, Eff. 9/10/2018; Ord. 15-19, File No. 181046, App. 2/8/2019, Eff. 3/11/2019; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020; Ord. 91-23, File No. 221021, App. 5/26/2023, Eff. 6/26/2023; Ord. 92-23, File No. 221105, App. 5/26/2023, Eff. 6/26/2023; Ord. 248-23, File No. 230446, App. 12/14/2023, Eff. 1/14/2024)

(Former Sec. 206.3 added by Ord. 143-16 , File No. 160687, App. 7/29/2016, Eff. 8/28/2016; redesignated as Sec. 206.4 and amended by Ord. 116-17, File No. 150969, App. 6/13/2017, Eff. 7/13/2017)

(Former Sec. 206.3 added by Ord. 443-78, App. 10/6/78; amended by Ord. 63-11, File No. 101053, App. 4/7/2011, Eff. 5/7/2011; Ord. 56-13 , File No. 130062, App. 3/28/2013, Eff. 4/27/2013; Ord. 232-14 , File No. 120881, App. 11/26/2014, Eff. 12/26/2014; redesignated as Sec. 209.3 and amended by Ord. 22-15, File No. 141253, App. 2/20/2015, Eff. 3/22/2015)

AMENDMENT HISTORY

Divisions (a), (b)(2), (b)(3) amended; former division (b)(5) deleted; former divisions (b)(6)-(10) redesignated as (b)(5)-(9); divisions (b)(8)(B), (c), (c)(1), (c)(3)-(5), (d)(1)-(4), (d)(4)(F)-(G), (e)(1)(A), (e)(1)(D), (e)(4), and (e)(5)(D)(iv) amended; divisions (d)(5) and (f)-(f)(2)(C)(iii) added; Ord. 198-18, Eff. 9/10/2018. Divisions (c), (c)(3), and (c)(5) amended; Ord. 202-18, Eff. 9/10/2018. Divisions (e)(4), (e)(5)(D)(iv), and (f) amended; Ord. 15-19, Eff. 3/11/2019. Divisions (a) and (f) amended; Ord. 63-20, Eff. 5/25/2020. Divisions (a), (b)(6), (c)(3), (e)(1)(A), (e)(5)(D)(i)-(iii), (e)(5)(D)(v)-(viii), and (f) amended; division (c)(1) amended as (c)(1)-(c)(1)(A); divisions (d)(4)(D) and (d)(4)(F) deleted; divisions (d)(4)(E) and (G) amended as (d)(4)(D) and (F); new divisions (c)(1)(B), (d)(4)(E), (e)(5)(D)(ix)-(x) added; Ord. 91-23, Eff. 6/26/2023. Divisions (b)(2), (3), and (7) amended; Ord. 92-23, Eff. 6/26/2023. Division (c)(1)(A) amended; divisions (c)(2)-(c)(2)(C) deleted; divisions (c)(3)-(5) redesignated as (c)(2)- (4); current division (c)(3) amended; Ord. 248-23, Eff. 1/14/2024.

CODIFICATION NOTE

1.   So in Ord. 91-23.

SEC. 206.4. THE 100 PERCENT AFFORDABLE HOUSING BONUS PROGRAM.

   (a)   Purpose and Findings. This Section 206.4 describes the 100 Percent Affordable Housing Bonus Program, or “100 Percent Affordable Housing Program”. In addition to the purposes described in Section 206.1, the purpose of the 100 Percent Affordable Housing Program is to facilitate the construction and development of projects in which all of the residential units are affordable to Low and Very-Low Income Households. Projects pursuing a development bonus under this 100 Percent Affordable Program would exceed the City’s shared Proposition K housing goals that 50% of new housing constructed or rehabilitated in the City by 2020 be within the reach of working middle class San Franciscans, and at least 33% affordable for low and moderate income households.

   (b)   Applicability. A 100 Percent Affordable Housing Bonus Project under this Section 206.4 shall be a Housing Project that:

      (1)   contains three or more Residential Units, as defined in Section 102, not including any additional units permitted though this Section 206.4 through a density bonus;

      (2)   is located in any zoning district that:

         (A)   is not designated as an RH-1, RH-1(D), or RH-2 Zoning District; and

         (B)   allows Residential Uses;

      (3)   is not seeking and receiving a density or development bonus under the provisions of California Government Code Sections 65915 et seq., Planning Code Sections 207, 124(f), 304, or any other state or local program that provides development bonuses;

      (4)   meets the definition of a “100 Percent Affordable Housing Project” in Section 206.2;

      (5)   demonstrates to the satisfaction of the Environmental Review Officer that the Project does not:

         (A)   cause a substantial adverse change in the significance of an historic resource as defined by California Code of Regulations, Title 14, Section 15064.5,

         (B)   create new shadow in a manner that substantially affects outdoor recreation facilities or other public areas; and

         (C)   alter wind in a manner that substantially affects public areas;

      (6)   does not demolish, remove, or convert any residential units and does not include any other parcel that has any residential units that would be demolished, removed, or converted as part of the project;

      (7)   includes, at the ground floor, neighborhood serving uses, including but not limited to general and specialty grocery, health service, institutional, and public facilities, all as defined in Section 102; and,

      (8)   is not located within the boundaries of the Northeastern Waterfront Area Plan south of the centerline of Broadway.

   (c)   Development Bonuses. A 100 Percent Affordable Housing Bonus Project shall, at the project sponsor’s request, receive any or all of the following:

      (1)   Priority Processing. 100 Percent Affordable Housing Bonus Projects shall receive Priority Processing.

      (2)   Form Based Density. Notwithstanding any zoning designation to the contrary, density of the 100 Percent Affordable Housing Bonus Project shall not be limited by lot area but rather by the applicable requirements and limitations set forth elsewhere in this Code. Such requirements and limitations include, but are not limited to, height, including any additional height allowed by subsection (c) herein, Bulk, Setbacks, Open Space, Exposure and unit mix as well as applicable design guidelines, elements and area plans of the General Plan and design review, including consistency with the Affordable Housing Bonus Program Design Guidelines, referenced in Section 315.1 , as determined by the Planning Department.

      (3)   Height. 100 Percent Affordable Housing Bonus Projects shall be allowed up to 30 additional feet, not including allowed exceptions per Section 260(b), above the property’s height district limit in order to provide three additional stories of residential use. This additional height may only be used to provide up to three additional 10-foot stories to the project, or one additional story of not more than 10 feet in height

      (4)   Ground Floor Ceiling Height. In addition to the permitted height allowed under subsection (c)(3), 100 Percent Affordable Housing Bonus Projects with active ground floors as defined in Section 145.1(b)(2) shall receive one additional foot of height, up to a maximum of an additional five feet at the ground floor, exclusively to provide a minimum 14-foot (floor to ceiling) ground floor ceiling height.

      (5)   Zoning Modifications. 100 Percent Affordable Housing Bonus Projects may select any or all of the following zoning modifications:

         (A)   Rear Yard: the required rear yard per Section 134 or any applicable special use district may be reduced to no less than 20% of the lot depth or 15 feet, whichever is greater. Corner properties may provide 20% of the lot area at the interior corner of the property to meet the minimum rear yard requirement, provided that each horizontal dimension of the open area is a minimum of 15 feet; and that the open area is wholly or partially contiguous to the existing midblock open space, if any, formed by the rear yards of adjacent properties.

         (B)   Dwelling Unit Exposure: The dwelling unit exposure requirements of Section 140(a)(2) may be satisfied through qualifying windows facing an unobstructed open area that is no less than 15 feet in every horizontal dimension, and such open area is not required to expand in every horizontal dimension at each subsequent floor.

         (C)   Off Street Loading: No off-street loading spaces under Section 152.

         (D)   Automobile Parking: Up to a 100% reduction in the minimum off-street residential and commercial automobile parking requirement under Article 1.5 of this Code.

         (E)   Open Space: Up to a 10% reduction in common open space requirements if required by Section 135, but no less than 36 square feet of open space per unit.

         (F)   Inner Courts as Open Space: In order for an inner court to qualify as useable common open space, Section 135(g)(2) requires it to be at least 20 feet in every horizontal dimension, and for the height of the walls and projections above the court on at least three sides (or 75% of the perimeter, whichever is greater) to be no higher than one foot for each foot that such point is horizontally distant from the opposite side of the clear space in the court. 100 Percent Affordable Housing Bonus Projects may instead provide an inner court that is at least 25 feet in every horizontal dimension, with no restriction on the heights of adjacent walls. All area within such an inner court shall qualify as common open space under Section 135.

   (d)   Implementation.

      (1)   Application. The following procedures shall govern the processing of a request for a project to qualify under the 100 Percent Affordable Housing Bonus Program.

         (A)   An application to participate in the 100 Percent Affordable Housing Bonus Program shall be submitted with the first application for approval of a Housing Project and processed concurrently with all other applications required for the Housing Project. The application shall be submitted on a form prescribed by the City and shall include at least the following information:

            (i)   A full plan set including a site plan, elevations, sections and floor plans, showing the total number of units, unit sizes and planned affordability levels and any applicable funding sources;

            (ii)   The requested development bonuses from those listed in subsection (c);

            (iii)   Unit size and distribution of multi-bedroom units;

            (iv)   Documentation that the applicant has provided written notification to all existing commercial tenants that the applicant intends to develop the property pursuant to this section 206.4. Any affected commercial tenants shall be given priority processing similar to the Department’s Community Business Priority Processing Program, as adopted by the Planning Commission on February 12, 2015 under Resolution Number 19323 to support relocation of such business in concert with access to relevant local business support programs. In no case may an applicant receive a site permit or any demolition permit prior to 18 months from the date of written notification required by this subsection 206.4(d)(1)(B); and

            (v)   Documentation that the applicant shall comply with any applicable provisions of the State Relocation Law or Federal Uniform Relocation Act when a parcel includes existing commercial tenants.

      (2)   Conditions. Entitlements of 100 Percent Affordable Housing Bonus Projects approved under this Section shall be valid for 10 years from the date of approval.

      (3)   Controls. Notwithstanding any other provision of this Code, no conditional use authorization shall be required for a 100 Percent Affordable Housing Bonus Project, unless such conditional use requirement was adopted by the voters.

(Added as Sec. 206.3 by Ord. 143-16, File No. 160687, App. 7/29/2016, Eff. 8/28/2016; redesignated and internal references amended by Ord. 116-17, File No. 150969, App. 6/13/2017, Eff. 7/13/2017; amended by Ord. 179-18, File No. 180423, App. 7/27/2018, Eff. 8/27/2018; Ord. 198-18, File No. 180456, App. 8/10/2018, Eff. 9/10/2018; 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)

(Former Sec 206.4 added by Ord. 143-16, File No. 160687, App. 7/29/2016, Eff. 8/28/2016; redesignated as Sec. 206.8 and amended by Ord. 116-17, File No. 150969, App. 6/13/2017, Eff. 7/13/2017)

(Former Sec. 206.4 added by Ord. 72-08, File No. 071157, App. 4/3/2008; redesignated as Sec. 209.4 and amended by Ord. 22-15, File No. 141253, App. 2/20/2015, Eff. 3/22/2015)

AMENDMENT HISTORY

Divisions (c)(2) and (d)(2) amended; division (d)(3) deleted and former division (d)(4) redesignated as (d)(3); Ord. 179-18, Eff. 8/27/2018; also shown in Ord. 198-18, Eff. 9/10/2018. Divisions (a), (b), and (b)(1) amended; Ord. 202-18, Eff. 9/10/2018. Divisions (a), (b), and (b)(3) amended; Ord. 296-18, Eff. 1/12/2019.

SEC. 206.5. STATE RESIDENTIAL DENSITY BONUS PROGRAM: ANALYZED.

   (a)   Purpose. Sections 206.5, 206.6, and 206.7 shall be referred to as the San Francisco State Residential Density Bonus Program or the State Density Bonus Program. First, the Analyzed State Density Bonus Program in Section 206.5 offers an expedited process for projects that seek a density bonus that is consistent with the pre-vetted menu of incentives, concessions and waivers that the Planning Department and its consultants have already determined are feasible, result in actual cost reductions, and do not have specific adverse impacts upon public health and safety of the physical environment. Second the Individually Requested State Density Bonus Program in Section 206.6 details the review, analysis and approval process for any project seeking a density bonus that is consistent with State Law, but is not consistent with the requirements for the Analyzed State Density Bonus Program established in Section 206.5. Third, Section 206.7 describes density bonuses available under the State code for the provision of childcare facilities.

   This Section 206.5 implements the Analyzed State Density Bonus Program or “Analyzed State Program.” The Analyzed State Program offers an expedited process for projects that seek a density bonus that is consistent with, among other requirements set forth below, the pre-vetted menu of incentives, waiver and concessions.

   (b)   Applicability.

      (1)   A Housing Project that meets all of the requirements of this subsection (b)(1) or is a Senior Housing Project meeting the criteria of (b)(2) shall be an Analyzed State Density Bonus Project or an “Analyzed Project” for purposes of Sections 206 et seq. A Housing Project that does not meet all of the requirements of this subsection (b), but seeks a density bonus under State law may apply for a density bonus under Section 206.6 as an Individually Requested State Density Bonus Project. To qualify for the Analyzed State Density Bonus Program a Housing Project must meet all of the following:

         (A)   contain five or more residential units, as defined in Section 102, not including any Group Housing as defined in Section 102, efficiency dwelling units with reduced square footage defined in Section 318, and Density Bonus Units permitted through this Section 206.5 or other density program;

         (B)   is not seeking and receiving a density or development bonus under Section 207; the HOME-SF Program, Section 206.3; the 100 Percent Affordable Housing Bonus Program, Section 206.4; or any other local or State density bonus program that provides development bonuses;

         (C)   for projects located in Neighborhood Commercial Districts is not seeking to merge lots that result in more than 125 linear feet in lot frontage on any one street;

         (D)   is located in any zoning district that: (i) is not designated as an RH-1 or RH-2 Zoning District; (ii) establishes a maximum dwelling unit density through a ratio of number of units to lot area, including but not limited to, RH-3, RM, RC, C-2, Neighborhood Commercial, Named Neighborhood Commercial, and SoMa Mixed Use Districts, but only if the SoMa Mixed Use District has a density measured by a maximum number of dwelling units per square foot of lot area; (iii) is not in the North of Market Residential Special Use District, Planning Code Section 249.5 until the Affordable Housing Incentive Study is completed at which time the Board will review whether the North of Market Residential Special Use District should continue to be excluded from this Program. The Study will explore opportunities to support and encourage the provision of housing at the low, moderate, and middle income range in neighborhoods where density controls have been eliminated. The goal of this analysis is to incentivize increased affordable housing production levels at deeper and wider ranges of AMI and larger unit sizes in these areas through 100% affordable housing development as well as below market rate units within market rate developments; (iv) is not located within the boundaries of the Northeastern Waterfront Area Plan south of the centerline of Broadway; and (v) is not located on property under the jurisdiction of the Port of San Francisco;

         (E)   is providing all Inclusionary Units as On-site Units under Section 415.6;

         (F)   includes a minimum of nine foot ceilings on all residential floors;

         (G)   is seeking only Concessions or Incentives set forth in subsection (c)(4);

         (H)   is seeking height increases only in the form of a waiver as described in subsection (c)(5);

         (I)   does not demolish, remove, or convert any residential units;

         (J)   consists only of new construction, and excluding any project that includes an addition to an existing structure;

         (K)   includes at the ground floor level active uses, as defined in Section 145.1 at the same square footages as any neighborhood commercial uses demolished or removed;

         (L)   if any retail use is demolished or removed, does not include a Formula Retail use, as defined in Section 303.1, unless the retail use demolished or removed was also a Formula Retail use, or one of the following uses: Gas Stations, Private or Public Parking Lots, Financial Services, Fringe Financial Services, Self Storage, Motel, Automobile Sales or Rental, Automotive Wash, Mortuaries, Adult Business, Massage Establishment, Medical Cannabis Dispensary, and Tobacco Paraphernalia Establishment, as those uses are defined in Planning Code Section 102;

         (M)   all on-site income-restricted residential units in the Housing Project are no smaller than the minimum unit sizes set forth by the California Tax Credit Allocation Committee as of May 16, 2017; and

         (N)   notwithstanding any other provision of this Code, includes a minimum dwelling unit mix of at least 40% of all units as two or three bedroom units, including at least 10% of units as three bedroom units. Larger units should be distributed on all floors, and prioritized in spaces adjacent to open spaces or play yards. Units with two or three bedrooms should incorporate family friendly amenities, including bathtubs, dedicated cargo bicycle parking, dedicated stroller storage, and open space and yards designed for use by children.

      (2)   A Senior Housing Project, as defined in Section 102, may qualify as an Analyzed State Density Bonus Project if it follows all of the procedures and conditions set forth in Planning Code Section 202.2(f).

      (3)   If located north of the centerline of Post Street and east of the centerline of Van Ness Avenue, all otherwise eligible Analyzed State Law Density Bonus Projects shall only be permitted on:

         (A)   lots containing no existing buildings; or

         (B)   lots equal to or greater than 12,500 square feet where existing buildings are developed to less than 20% of the lot’s principally permitted buildable gross floor area as determined by height limits, rear yard requirements and required setbacks.

   (c)   Development Bonuses. All Analyzed State Law Density Bonus Projects shall receive, at the project sponsor’s written request, any or all of the following:

      (1)   Priority Processing. Analyzed Projects that provide 30% or more of Units as On-site Inclusionary Housing Units or Restricted Affordable Units that meet all of the requirements for an Inclusionary Housing Unit shall receive Priority Processing.

      (2)   Density Bonus. Analyzed Projects that provide On-site Inclusionary Housing Units or Restricted Affordable Units that meet all of the requirements for an Inclusionary Housing Unit shall receive a density bonus as described in Table 206.5A as follows:

 

Table 206.5A Density Bonus Summary – Analyzed
A	B	C	D	E
Restricted Affordable Units or Category	Minimum Percentage of Restricted Affordable Units	Percentage of Density Bonus Granted	Additional Bonus for Each 1% Increase In Restricted Affordable Units	Percentage of Restricted Units Required for Maximum 35% Density Bonus
Very Low Income	5%	20%	2.50%	11%
Lower Income	10%	20%	1.50%	20%
Moderate Income	10%	5%	1%	40%
Senior Citizen Housing, as defined in § 102, and meeting the requirements of § 202.2(f).	100%	50%	----	----

Note: A density bonus may be selected from more than one category, up to a maximum of 35% of the Maximum Allowable Gross Residential Density.

      In calculating density bonuses under this subsection 206.5(c)(2) the following shall apply:

         (A)   When calculating the number of permitted Density Bonus Units or Restricted Affordable Units, any fractions of units shall be rounded to the next highest number. Analyzed Density Bonus Program projects must include the minimum percentage of Restricted Affordable Units identified in Column B of Table 206.5A for at least one income category, but may combine density bonuses from more than one income category, up to a maximum of 35% of the Maximum Allowable Gross Residential Density.

         (B)   An applicant may elect to receive a Density Bonus that is less than the amount permitted by this Section; however, the City shall not be required to similarly reduce the number of Restricted Affordable Units required to be dedicated pursuant to this Section and Government Code Section 65915(b).

         (C)   In no case shall a Housing Project be entitled to a Density Bonus of more than 35%, unless it is a Senior Housing Project meeting the requirements of Section 202.2(f).

         (D)   The Density Bonus Units shall not be included when determining the number of Restricted Affordable Units required to qualify for a Density Bonus. Density bonuses shall be calculated as a percentage of the Maximum Allowable Gross Residential Density.

         (E)   Any Restricted Affordable Unit provided pursuant to the on-site requirements of the Inclusionary Affordable Housing Program, Section 415 et seq., shall be included when determining the number of Restricted Affordable Units required to qualify for a Development Bonus under this Section 206.5. The payment of the Affordable Housing Fee shall not qualify for a Development Bonus under this Section. The provision of Off-site Units shall not qualify the Principal Project for a Density Bonus under this Section; however an Off-site Unit may qualify as a Restricted Affordable Unit to obtain a density bonus for the Off-site Project.

         (F)   In accordance with state law, neither the granting of a Concession, Incentive, waiver, or modification, nor the granting of a Density Bonus, shall be interpreted, in and of itself, to require a general plan amendment, zoning change, variance, or other discretionary approval.

      (3)   Concessions and Incentives. Analyzed Projects shall receive concessions or incentives, in the amounts specified in Table 206.5B:

 

Table 206.5B Concessions and Incentives Summary – Analyzed Projects
Target Group	Restricted Affordable Units
Very Low Income	5%	10%	15%
Lower Income	10%	20%	30%
Moderate Income (Common Interest Development)	10%	20%	30%
Maximum Incentive(s)/ Concession(s)	1	2	3

Notes: 1. Common Interest Development is defined in California Civil Code Section 4100.

      (4)   Menu of Concessions and Incentives: In submitting a request for Concessions or Incentives, an applicant for an Analyzed State Density Bonus Project may request the specific Concessions and Incentives set forth below. The Planning Department, based on Department research and a Residential Density Bonus Study prepared by David Baker Architects, Seifel Consulting, and the San Francisco Planning Department dated August 2015, on file with the Clerk of the Board of Supervisors in File No. 150969, has determined that the following Concessions and Incentives are generally consistent with Government Code Section 65915(d) because, in general, they: are required in order to provide for affordable housing costs; will not be deemed by the Department to have a specific adverse impact as defined in Government Code Section 65915(d); and are not contrary to State or Federal law.

         (A)   Rear yard: the required rear yard per Section 134 or any applicable special use district may be reduced to no less than 20% of the lot depth, or 15 feet, whichever is greater. Corner properties may provide 20% of the lot area at the interior corner of the property to meet the minimum rear yard requirement, provided that each horizontal dimension of the open area is a minimum of 15 feet; and that the open area is wholly or partially contiguous to the existing midblock open space, if any, formed by the rear yards of adjacent properties.

         (B)   Dwelling Unit Exposure: the dwelling unit exposure requirements of Section 140(a)(2) may be satisfied through qualifying windows facing an unobstructed open area that is no less than 25 feet in every horizontal dimension, and such open area is not required to expand in every horizontal dimension at each subsequent floor.

         (C)   Off-Street Loading: off-street loading spaces under Section 152 shall not be required.

         (D)   Parking: up to a 50% reduction in the residential and commercial parking requirement, per Section 151 or any applicable special use district.

         (E)   Open Space: up to a 5% reduction in required common open space per Section 135, or any applicable special use district.

         (F)   Additional Open Space: up to an additional 5% reduction in required common open space per Section 135 or any applicable special use district, beyond the 5% provided in subsection (E) above.

      (5)   Waiver or Modification of Height Limits. Analyzed Projects may request a waiver of the applicable height restrictions if the applicable height limitation will have the effect of physically precluding the construction of a Housing Project at the densities or with the Concessions or Incentives permitted by subsection (c)(4). Analyzed Projects may receive a height bonus as of right of up to twenty feet or two stories, excluding exceptions permitted per Section 260(b), if the applicant demonstrates that it qualifies for a height waiver through the following formula:

         Step one: Calculate Base Density and Bonus Density Limits

         Calculate Base Density (BD), as defined in Section 206.2.

         Bonus Density Limit (BD): ED multiplied by 1.XX where XX is the density bonus requested per Section 206.5 of this Code (e.g. 7%, 23%, 35%), not to exceed 1.35, the maximum density bonus available by this Section.

         Step two: Calculate Permitted Envelope (PE). Buildable envelope available under existing height and bulk controls.

         PE equals lot area multiplied by permitted lot coverage, where lot coverage equals .75, or .8 if the developer elects to request a rear yard modification under Section 206.5(c)(4)(A), multiplied by existing height limit (measured in number of stories), minus one story for projects in districts where non-residential uses are required on the ground floor, and minus any square footage subject to bulk limitations (for parcels that do not have an X bulk designation).

         Step three: Calculate Bonus Envelope (BE). Residential envelope necessary to accommodate additional density (“Bonus envelope” or “BE”).

         BE equals Bonus Density multiplied by 1,000 gross square feet.

         Step four: Calculate Additional Residential Floors. Determine the number of stories required to accommodate bonus:

         (A)   If BE is less than or equal to PE, the project is not awarded height under this subsection (c)(5).

         (B)   If BE is greater than PE, the project is awarded height, as follows:

            (i)   If BE minus PE is less than the lot area multiplied by 0.75, project is allowed one extra story; total gross square footage of building not to exceed BE; or

            (ii)   If BE minus PE is greater than the lot area multiplied by 0.75 (i.e. if the difference is greater than one story), project is allowed two extra stories; total gross square footage of building not to exceed BE.

   (d)   Application. An application for an Analyzed State Density Bonus Project under this Section 206.5 shall be submitted with the first application for approval of a Housing Project and shall be processed concurrently with all other applications required for the Housing Project. The application shall be on a form prescribed by the City and, in addition to any information required for other applications, shall include the following information:

      (1)   A description of the proposed Housing Project, including the total number of dwelling units, Restricted Affordable Units, and Density Bonus Units proposed;

      (2)   Any zoning district designation, Base Density, assessor’s parcel number(s) of the project site, and a description of any Density Bonus, Concession or Incentive, or waiver requested;

      (3)   A list of the requested Concessions and Incentives from Section 206.5(c)(4);

      (4)   If a waiver or modification of height is requested under Section 206.5(c)(5), a calculation demonstrating how the project qualifies for such waiver under the formula;

      (5)   A full plan set including site plan, elevations, sections, and floor plans, number of market-rate units, Restricted Affordable Units, and Density Bonus units within the proposed Housing Project. The location of all units must be approved by the Planning Department before the issuance of the building permit;

      (6)   Level of affordability of the Restricted Affordable Units and a draft Regulatory Agreement; and

      (7)   Documentation that the applicant has provided written notification to all existing commercial tenants that the applicant intends to develop the property pursuant to this section. Any affected commercial tenants shall be given priority processing similar to the Department’s Community Business Priority Processing Program, as adopted by the Planning Commission on February 12, 2015 under Resolution Number 19323 to support relocation of such business in concert with access to relevant local business support programs. In no case may a project receive a site permit or any demolition permit prior to 18 months from the date of written notification required by this Section 206.5(d)(7).

   (e)   Review Procedures. An application for an Analyzed State Density Bonus Project, shall be acted upon concurrently with the application for other permits related to the Housing Project.

      (1)   Before approving an application for an Analyzed Project, the Planning Department or Commission shall make written findings that the Housing Project is qualified as an Analyzed State Density Bonus Project.

      (2)   Analyzed Projects shall be governed by the conditional use procedures of Section 303. All notices shall specify that the Housing Project is seeking a Development Bonus and shall provide a description of the Development Bonuses requested. Analyzed Projects shall also be reviewed for consistency with the Affordable Housing Bonus Program Design Guidelines.

   (f)   Regulatory Agreements. Recipients of a Density Bonus, Incentive, Concession, waiver, or modification shall enter into a Regulatory Agreement with the City, as follows.

      (1)   The terms of the agreement shall be acceptable in form and content to the Planning Director, the Director of MOHCD, and the City Attorney. The Planning Director shall have the authority to execute such agreements.

      (2)   Following execution of the agreement by all parties, the completed Density Bonus Regulatory Agreement, or memorandum thereof, shall be recorded and the conditions filed and recorded on the Housing Project.

      (3)   The approval and recordation of the Regulatory Agreement shall take place prior to the issuance of the First Construction Document. The Regulatory Agreement shall be binding to all future owners and successors in interest.

      (4)   The Regulatory Agreement shall be consistent with the guidelines of the City’s Inclusionary Housing Program and shall include at a minimum the following:

         (A)   The total number of dwelling units approved for the Housing Project, including the number of Restricted Affordable Units, Inclusionary Units, HOME-SF Units or other restricted units;

         (B)   A description of the household income group to be accommodated by the Restricted Affordable Units, and the standards for determining the corresponding Affordable Rent or Affordable Sales Price;

         (C)   The location, dwelling unit sizes (in square feet), and number of bedrooms of the Restricted Affordable Units;

         (D)   Term of use restrictions for Restricted Affordable Units of at least 55 years for Moderate Income units and at least 55 years for Low and Very Low units;

         (E)   A schedule for completion and occupancy of Restricted Affordable Units;

         (F)   A description of any Concession, Incentive, waiver, or modification, if any, being provided by the City;

         (G)   A description of remedies for breach of the agreement (the City may identify tenants or qualified purchasers as third party beneficiaries under the agreement);

         (H)   A list of all on-site family friendly amenities. Family friendly amenities shall include, but are not limited to, dedicated cargo bicycle parking, dedicated stroller storage, and open space and yards designed for use by children; and

         (I)   Other provisions to ensure implementation and compliance with this Section.

(Added by Ord. 116-17, File No. 150969, App. 6/13/2017, Eff. 7/13/2017; amended by Ord. 202-18, File No. 180557, App. 8/10/2018, Eff. 9/10/2018; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020; Ord. 136-21, File No. 210674, App. 8/4/2021, Eff. 9/4/2021)

(Former Sec. 206.5 added by Ord. 298-08, File No. 081153, App. 12/19/2008; repealed by Ord. 22-15, File No. 141253, App. 2/20/2015, Eff. 3/22/2015)

AMENDMENT HISTORY

Divisions (b)(1) and (b)(1)(C) amended; Ord. 202-18, Eff. 9/10/2018. Division (c)(1) amended; Ord. 63-20, Eff. 5/25/2020. Division (c)(2) amended; Ord. 136-21, Eff. 9/4/2021.

CODIFICATION NOTE

SEC. 206.6. STATE DENSITY BONUS PROGRAM: INDIVIDUALLY REQUESTED.

New Ordinance Notice

Publisher's Note: This section has been AMENDED by new legislation (Ord. 297-24 , approved 12/19/2024, effective 1/19/2025). The text of the amendment will be incorporated under the new section number when the amending legislation is operative.

   (a)   Purpose and Findings: This Section 206.6 details the review, analysis and approval process for any project seeking a density bonus that is consistent with State Law, Government Code Section 65915 et seq., but is not consistent with the pre-vetted menu of concessions, incentives or waivers, or other requirements established in Section 206.5 as analyzed by the Planning Department in coordination with David Baker and Seifel Consulting, and shall be known as the Individually Requested State Density Bonus Program.

   California State Density Bonus Law allows a housing developer to request parking ratios not to exceed the ratios set forth in Government Code Section 65915(p)(1), which may further be reduced as an incentive or concession. Because in most cases San Francisco regulates parking by dwelling unit as described in Article 1.5 of this Code, the minimum parking ratios set forth in the Government Code are greater than those allowed in San Francisco. Given that San Francisco’s parking ratios are already less than the State ratios, the City finds that the State’s minimum parking ratio requirement does not apply.

   (b)   Applicability. A Housing Project that does not meet any one or more of the criteria of Section 206.5(b) under the Analyzed State Density Bonus Program, but meets the following requirements, may apply for a Development Bonus under this Section 206.6 as an “Individually Requested State Density Bonus Project” or “Individually Requested Project” if it meets all of the following criteria:

      (1)   contains five or more residential units, as defined in Section 102;

      (2)   is not seeking and receiving a density or development bonus under Section 207; the HOME-SF Program, Section 206.3; the 100 Percent Affordable Housing Bonus Program, Section 206.4; Section 304, or any other local or state bonus program that provides development bonuses;

      (3)   provides Restricted Affordable Housing Units, including but not limited to Inclusionary Housing Units, at minimum levels as provided in Table 206.6A;

      (4)   provides replacement units for any units demolished or removed that are subject to the San Francisco Rent Stabilization and Arbitration Ordinance, Administrative Code Section 37, or are units qualifying for replacement as units being occupied by households of low or very low income, consistent with the requirements of Government Code section 65915(c)(3); and,

      (5)   Is in any zoning district except for RH-1 or RH-2, unless the Code permits the development of a project of five units or more on a site or sites.

   (c)   Development Bonuses. Any Individually Requested Density Bonus Project shall, at the project sponsor’s request, receive any or all of the following:

      (1)   Density Bonus. Individually Requested Projects that provide On-site Inclusionary Housing Units or Restricted Affordable Units shall receive a density bonus as described in Table 206.6A as follows:

 

Table 206.6A Density Bonus Summary – Individually Requested Project
Restricted Affordable Units or Category	Minimum Percentage of Restricted Affordable Units	Percentage of Density Bonus Granted	Additional Bonus for Each 1% Increase In Restricted Affordable Units	Percentage of Restricted Units Required for Maximum 35% Density Bonus
Very Low Income	5%	20%	2.50%	11%
Lower Income	10%	20%	1.50%	20%
Moderate Income	10%	5%	1%	40%
Senior Citizen Housing	100%	20%	----	----

Note: A density bonus may be selected from only one category up to a maximum of 35% of the Maximum Allowable Gross Residential Density.

      In calculating density bonuses under this subsection 206.6(c)(1) the following shall apply:

         (A)   When calculating the number of permitted Density Bonus Units or Restricted Affordable Units, any fractions of units shall be rounded to the next highest number.

         (B)   An applicant may elect to receive a Density Bonus that is less than the amount permitted by this Section; however, the City shall not be required to similarly reduce the number of Restricted Affordable Units required to be dedicated pursuant to this Section and Government Code Section 65915(b).

         (C)   Each Housing Project is entitled to only one Density Bonus, which shall be selected by the applicant based on the percentage of Very Low Income Restricted Affordable Units, Lower Income Restricted Affordable Units, or Moderate Income Restricted Affordable Units, or the Housing Project’s status as a Senior Citizen Housing Development. Density bonuses from more than one category may not be combined. In no case shall a Housing Project be entitled to a Density Bonus of more than 35%, unless it is a Senior Housing Project meeting the requirements of Section 202.2(f).

         (D)   The Density Bonus Units shall not be included when determining the number of Restricted Affordable Units required to qualify for a Density Bonus. Density bonuses shall be calculated as a percentage of the Maximum Allowable Gross Residential Density.

         (E)   Any Restricted Affordable Unit provided pursuant to the on-site requirements of the Inclusionary Affordable Housing Program, Section 415 et seq., shall be included when determining the number of Restricted Affordable Units required to qualify for a Development Bonus under this Section 206.6. The payment of the Affordable Housing Fee shall not qualify for a Development Bonus under this Section. The provision of Off-site Units shall not qualify the Principal Project for a Density Bonus under this Section; however an Off-site Unit may qualify as a Restricted Affordable Unit to obtain a density bonus for the Off-site Project.

         (F)   In accordance with state law, neither the granting of a Concession, Incentive, waiver, or modification, nor the granting of a Density Bonus, shall be interpreted, in and of itself, to require a general plan amendment, zoning change, variance, or other discretionary approval.

         (G)   No additional Density Bonus shall be authorized for a Senior Citizen Development beyond the Density Bonus authorized by subsection (c)(1) of this Section.

         (H)   Certain other types of development activities are specifically eligible for a development bonus pursuant to State law, including land donation under Government Code Section 65915(g), condominium conversions under Government Code Section 65915.5 and qualifying mobile home parks under Government Code Section 65915(b)(1)(C). Such projects shall be considered Individually Requested State Density Bonus Projects.

      (2)   Concessions and Incentives. This Section includes provisions for providing Concessions or Incentives pursuant to Government Code Section 65915 et seq. as set forth in Table 206.6B. For purposes of this Section 206.6, Concessions and Incentives as used interchangeably shall mean such regulatory concessions as specified in Government Code Section 65915(k) to include:

         (A)   A reduction of site Development Standards or architectural design requirements which exceed the minimum applicable building standards approved by the State Building Standards Commission pursuant to Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback, coverage, and/or parking requirements which result in identifiable, financially sufficient and actual cost reductions;

         (B)   Allowing mixed use development in conjunction with the proposed residential development, if nonresidential land uses will reduce the cost of the residential project and the nonresidential land uses are compatible with the residential project and existing or planned development in the area where the Housing Project will be located; and

         (C)   Other regulatory incentives or concessions proposed by the developer or the City that result in identifiable and actual cost reductions.

 

Table 206.6B Concessions and Incentives Summary – Individually Requested Project
Target Group	Restricted Affordable Units
Very Low Income	5%	10%	15%
Lower Income	10%	20%	30%
Moderate Income (Common Interest Development)	10%	20%	30%
Maximum Incentive(s)/ Concession(s)	1	2	3

Notes: 1. Concessions or Incentives may be selected from only one category (very low, lower, or moderate). 2. Common Interest Development is defined in California Civil Code Section 4100.

      (3)   Request for Concessions and Incentives. In submitting a request for Concessions or Incentives that are not specified in subsection 206.5(c)(4), an applicant for an Individually Requested Density Bonus Project must provide documentation described in subsection (d) below in its application. Provided that the Planning Commission delegates authority to review and approve applications for Individually Requested Density Bonus projects, the Planning Director shall approve the Concession or Incentive requested unless the Director makes written findings, based on substantial evidence that:

         (A)   The Concession or Incentive does not result in identifiable and actual cost reductions, consistent with Government Code Section 65915(k); or

         (B)   The Concession or Incentive would have a specific adverse impact, as defined in Government Code Section 65589.5(d)(2) upon public health and safety or the physical environment or any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the Housing Project unaffordable to low- and moderate-income households; or

         (C)   The Concession or Incentive would be contrary to state or federal law.

      (4)   Waiver or Modification. An applicant may apply for a waiver or modification of Development Standards that will have the effect of physically precluding the construction of a Housing Project at the densities or with the Concessions or Incentives permitted by this Section 206.6. The Planning Commission will not grant a waiver or modification under this Section unless it is necessary to achieve the additional density or the Concessions or Incentives permitted by this Section 206.6. The developer must submit sufficient information as determined by the Planning Department demonstrating that Development Standards that are requested to be waived or modified will have the effect of physically precluding the construction of a Housing Project meeting the criteria of this Section 206.6 at the densities or with the Concessions or Incentives permitted. The Planning Commission shall hold a hearing to determine if the project sponsor has demonstrated that the waiver is necessary. The Planning Commission may deny a waiver if it finds on the basis of substantial evidence that:

         (A)   It is not required to permit the construction of a Housing Project meeting the density permitted or with the Concessions and Incentives permitted under this Section 206.6;

         (B)   The Waiver would have a specific adverse impact, as defined in Government Code Section 65589.5(d)(2) upon public health and safety or the physical environment or any real property that is listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the Housing Project unaffordable to low- and moderate-income households; or,

         (C)   The Waiver would be contrary to state or federal law.

      (5)   Nothing in this Section shall be construed to require the provision of direct financial incentives for the Project, including the provision of publicly owned land by the City or the waiver of fees or dedication requirements.

   (d)   Application. An application for a Density Bonus, Incentive, Concession, or waiver under this Section 206.6 shall be submitted with the first application for approval of a Housing Project and shall be processed concurrently with all other applications required for the Housing Project. The application shall be on a form prescribed by the City and, in addition to any information required for other applications, shall include the following information:

      (1)   A description of the proposed Project, and a full plan set, including a site plan, elevations, section and floor plans, with the total number and location of dwelling units, Restricted Affordable Units, and Density Bonus Units proposed;

      (2)   A plan set sufficient for the Planning Department to determine the project site’s Maximum Allowable Gross Residential Density. The project sponsor shall submit plans for a base project that demonstrates a Code complying project on the Housing Project site without modification of the Planning Code. Such plans shall include similar detail to the proposed Housing Project. The project sponsor shall demonstrate that site constraints do not limit the Maximum Allowable Gross Residential Density for the base project in practice. If the project sponsor cannot make such a showing, the Zoning Administrator shall determine whether the Maximum Allowable Gross Residential Density shall be adjusted for purposes of this Section;

      (3)   The zoning district designations, Maximum Allowable Gross Residential Density, assessor’s parcel number(s) of the project site, and a description of any Density Bonus, Concession or Incentive, or waiver requested;

      (4)   If a Concession or Incentive is requested that is not included within the menu of Incentives/Concessions set forth in subsection 206.5(c), a submittal including financial information or other information providing evidence that the requested Concessions and Incentives result in identifiable and actual cost reductions required in order to provide for affordable housing costs as defined in Health and Safety Code Section 50052.5, or for rents for the Restricted Affordable Units to be provided as required under this Program. The cost of reviewing any required financial information, including, but not limited to, the cost to the City of hiring a consultant to review the financial data, shall be borne by the applicant;

      (5)   If a waiver or modification is requested, information sufficient to demonstrate why a Development Standard would physically preclude the construction of the Development with the Density Bonus, Incentives, and Concessions requested. The cost of reviewing any required information supporting the request for a waiver, including, but not limited to, the cost to the City of hiring a consultant to review the architectural information, shall be borne by the applicant;

      (6)   Level of affordability of the Restricted Affordable Units and a draft Regulatory Agreement;

      (7)   The number of residential units which are on the property, or if the residential units have been vacated or demolished in the five year period preceding the application, have been and which were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; subject to any other form of rent or price control through the City or other public entity’s valid exercise of its police power; or occupied by lower or very low income households;

      (8)   If the property includes a parcel or parcels in which dwelling units under subsection (d)(7) are located or were located in the five year period preceding the application, the type and size of those units, the incomes of the persons or families occupying those units;

      (9)   Documentation that the applicant has provided written notification to all existing commercial or residential tenants that the applicant intends to develop the property pursuant to this section. Any affected commercial tenants shall be given priority processing similar to the Department’s Community Business Priority Processing Program, as adopted by the Planning Commission on February 12, 2015 under Resolution Number 19323 to support relocation of such business in concert with access to relevant local business support programs;

      (10)   If a Density Bonus or Concession is requested for a land donation under Government Code Section 65915(g), the application shall show the location of the land to be dedicated, provide proof of site control, and provide evidence that all of the requirements and each of the findings included in Government Code Section 65915(g) can be made;

      (11)   If a density bonus or Concession is requested for a Child Care Facility under Section 206.7, the application shall show the location and square footage of the child care facilities and provide evidence that all of the requirements and each of the findings included in Government Code Section 65915(h) can be made; and

      (12)   If a Density Bonus or Concession is requested for a condominium conversion, the applicant shall provide evidence that all of the requirements found in Government Code Section 65915.5 can be met.

   (e)   Review Procedures. Except as provided in Section 317 or where a Conditional Use Authorization is required to permit a non-residential use, an application for any Individually Requested Density Bonus project shall not be subject to any other underlying entitlement approvals related to the proposed housing, such as a Conditional Use Authorization, Mandatory Discretionary Review, or a Large Project Authorization. Further, any entitled project that was previously approved under the Individually Requested Density Bonus program that seeks an amendment to their approved application, including those projects outlined in Planning Code Section 415A.5, shall also not require an underlying entitlement approval related to the proposed housing. If an entitlement is otherwise required, an application for a Density Bonus, Incentive, Concession, or waiver shall be acted upon concurrently with the application for the required entitlement.

      (1)   Before approving an application for a Density Bonus, Incentive, Concession, or waiver, for any Individually Requested Density Bonus Project, the Planning Commission or Director shall make the following findings as applicable.

         (A)   The Housing Project is eligible for the Individually Requested Density Bonus Program.

         (B)   The Housing Project has demonstrated that any Concessions or Incentives reduce actual housing costs, as defined in Section 50052.5 of the California Health and Safety Code, or for rents for the targeted units, based upon the financial analysis and documentation provided.

         (C)   If a waiver or modification is requested, a finding that the Development Standards for which the waiver is requested would have the effect of physically precluding the construction of the Housing Project with the Density Bonus or Concessions and Incentives permitted.

         (D)   If the Density Bonus is based all or in part on donation of land, a finding that all the requirements included in Government Code Section 65915(g) have been met.

         (E)   If the Density Bonus, Concession or Incentive is based all or in part on the inclusion of a Child Care Facility, a finding that all the requirements included in Government Code Section 65915(h) have been met.

         (F)   If the Concession or Incentive includes mixed-use development, a finding that all the requirements included in Government Code Section 65915(k)(2) have been met.

      (2)   If the findings required by subsection (e)(1) of this Section cannot be made, the Planning Commission or Director may deny an application for a Concession, Incentive, waiver or modification only if the Director makes one of the following written findings, supported by substantial evidence:

         (A)   The Concession, Incentive, waiver or modification is not required to provide for the affordability levels required for Restricted Affordable Units;

         (B)   The Concession, Incentive, waiver or modification would have a specific, adverse impact upon public health or safety or the physical environment or on real property listed in the California Register of Historic Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the Housing Project unaffordable to Low and Moderate Income households. For the purpose of this subsection, “specific adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the Housing Project was deemed complete; or

         (C)   The Concession, Incentive, waiver or modification is contrary to state or federal law.

      (3)   The review procedures for an Individually Requested Density Bonus Project, including notice, hearings, and appeal, shall be the procedures applicable to the Housing Project regardless of whether it is applying for a State Density Bonus under this Section 206.6. However, any notice shall specify that the Housing Project is seeking a Development Bonus and shall provide a description of the development bonuses requested. Individually Requested Projects shall also be reviewed for consistency with the Affordable Housing Bonus Program Design Guidelines.

      (4)   In accordance with state law, neither the granting of a Concession, Incentive, waiver, or modification, nor the granting of a Density Bonus, shall be interpreted, in and of itself, to require a general plan amendment, zoning change, variance, or other discretionary approval.

   (f)   Regulatory Agreements. Recipients of a Density Bonus, Incentive, Concession, waiver, or modification shall enter into a Regulatory Agreement with the City, as follows.

      (1)   The terms of the agreement shall be acceptable in form and content to the Planning Director, the Director of MOHCD, and the City Attorney. The Planning Director shall have the authority to execute such agreements.

      (2)   Following execution of the agreement by all parties, the completed Density Bonus Regulatory Agreement, or memorandum thereof, shall be recorded and the conditions filed and recorded on the Housing Project.

      (3)   The approval and recordation of the Regulatory Agreement shall take place prior to the issuance of the First Construction Document. The Regulatory Agreement shall be binding to all future owners and successors in interest.

      (4)   The Regulatory Agreement shall be consistent with the guidelines of the City’s Inclusionary Housing Program and shall include at a minimum the following:

         (A)   The total number of dwelling units approved for the Housing Project, including the number of Restricted Affordable Units, Inclusionary Units, HOME-SF Units or other restricted units;

         (B)   A description of the household income group to be accommodated by the Restricted Affordable Units, and the standards for determining the corresponding Affordable Rent or Affordable Sales Price;

         (C)   The location, dwelling unit sizes (in square feet), and number of bedrooms of the Restricted Affordable Units;

         (D)   Term of use restrictions for Restricted Affordable Units of at least 55 years for Moderate Income units and at least 55 years for Low and Very Low units;

         (E)   A schedule for completion and occupancy of Restricted Affordable Units;

         (F)   A description of any Concession, Incentive, waiver, or modification, if any, being provided by the City;

         (G)   A description of remedies for breach of the agreement (the City may identify tenants or qualified purchasers as third party beneficiaries under the agreement); and

         (H)   Other provisions to ensure implementation and compliance with this Section.

(Added by Ord. 116-17, File No. 150969, App. 6/13/2017, Eff. 7/13/2017; amended by Ord. 202-18, File No. 180557, App. 8/10/2018, Eff. 9/10/2018; Ord. 248-23, File No. 230446, App. 12/14/2023, Eff. 1/14/2024; Ord. 297-24, File No. 241055, App. 12/19/2024, Eff. 1/19/2025)

AMENDMENT HISTORY

Division (c)(1)(H) amended; Ord. 202-18, Eff. 9/10/2018. Divisions (c)(3), (e), (e)(1), and (e)(2) amended; Ord. 248-23, Eff. 1/14/2024. Division (e) amended; Ord. 297-24, Eff. 1/19/2025.

SEC. 206.7. CHILD CARE FACILITIES.

   (a)   For purposes of this Section 206.7, “Child Care Facility” means a child day care facility other than a family day care home, including, but not limited to, infant centers, preschools, extended day care facilities, and school age child care centers.

   (b)   When an applicant proposes to construct a Housing Project that is eligible for a Density Bonus under Section 206.6 and includes a Child Care Facility that will be located on the premises of, as part of, or adjacent to, the Housing Project, all of the provisions of this Section 206.7 shall apply and all of the provisions of Section 206.6 shall apply, except as specifically provided in this Section 206.7.

   (c)   When an applicant proposes to construct a Housing Project that is eligible for a Density Bonus under Section 206.6 and includes a Child Care Facility that will be located on the premises of, as part of, or adjacent to, the Housing Project, the City shall grant either:

      (1)   An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the square footage of the Child Care Facility; or

      (2)   An additional Concession or Incentive that contributes significantly to the economic feasibility of the construction of the Child Care Facility.

   (d)   The City shall require, as a condition of approving the Housing Project, that the following occur:

      (1)   The Child Care Facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the Affordable Units are required to remain affordable. In the event the childcare operations cease to exist, the Zoning Administrator may approve in writing an alternative community service use for the child care facility.

      (2)   Of the children who attend the Child Care Facility, the children of Very Low, Lower and Moderate Income households shall equal a percentage that is equal to or greater than the percentage of Restricted Affordable Units in the Housing Project that are required for Very Low, Lower and Moderate Income households pursuant to Section 206.6.

   (e)   Notwithstanding subsections (a) and (b) above, the City shall not be required to provide a density bonus or a Concession or Incentive for a child care facility if it finds, based upon substantial evidence, that the community has adequate child care facilities.

(Added by Ord. 116-17, File No. 150969, App. 6/13/2017, Eff. 7/13/2017)

SEC. 206.8. AFFORDABLE HOUSING BONUS PROGRAM EVALUATION.

   (a)   Within one year from March 22, 2015, the Planning Department shall provide an informational presentation to the Planning Commission, and any other City agency at their request, presenting an overview of all projects that request or receive development bonuses under the HOME-SF Program, the 100 Percent Affordable Housing Bonus Program and the Analyzed and Individually Requested State Density Bonus Program (“the Bonus Programs”).

   (b)   Annual Reporting. The Planning Department, in coordination with MOHCD, shall include information on projects which request and receive development bonuses under the Bonus Programs, in the Housing Inventory Report.

   (c)   Report Contents. The Housing Inventory shall include, but not be limited to, information on the:

      (1)   number of projects utilizing the Bonus Programs;

      (2)   number of units approved and constructed under the Bonus Programs and the AMI levels of such units;

      (3)   number of additional affordable units in excess of that otherwise required by Section 415;

      (4)   geographic distribution of projects, including the total number of units in each project, utilizing the Bonus Programs;

      (5)   number of larger unit types, including the number of 3-bedroom units;

      (6)   square feet of units by bedroom count;

      (7)   number of projects with nine or fewer units that participate; and

      (8)   Number of appeals of projects in the Bonus Program and stated reason for appeal.

   (d)   Program Evaluation and Update.

      (1)   Purpose and Contents. Every five years, beginning five years from March 22, 2015, the Department shall prepare a Program Evaluation and Update. The Program Evaluation and Update shall include an analysis of the Bonus Programs’ effectiveness as it relates to City policy goals including, but not limited to Proposition K (November 2014) and the Housing Element. The Program Evaluation and Update shall include a review of all of the following:

         (A)   Target income levels for the HOME-SF Program in relation to market values and assessed affordable housing needs.

         (B)   Feasibility of the HOME-SF Program, in relation to housing policy goals, program production, and current market conditions.

         (C)   Requested and granted concessions and incentives, including consideration of whether the menu of zoning modification or concessions and incentives set forth in Section 206.3(d)(4), 206.4(c)(5) and 206.5(c)(4) respond to the needs of projects seeking approvals under the Bonus Programs; consideration of whether the elected zoning modifications or incentives and concessions result in a residential project that responds to the surrounding neighborhood context; and review and recommendation for additions or modifications to the list of zoning modifications or concessions and incentives in 206.3(d)(4), 206.4(c)(5) and 206.5(c)(4).

         (D)   Geography and neighborhood specific considerations. Review and analysis of where Bonus Program projects are proposed and approved, including an analysis of land values, zoning, height controls, and neighborhood support.

         (E)   Review of the process for considering projects under the Bonus Program, including a review of Section 328, the appeal process, Section 303 and other relevant process considerations.

      (2)   Public Hearing. The Program Evaluation and Update shall be prepared no less than every five years, beginning five years from March 22, 2015, and may be completed as a series of reports and in coordination with ongoing monitoring of affordable housing policies, or feasibility analyses. The Planning Commission shall hold a hearing on the Program Evaluation and Update and any recommendations for modification to any of the Bonus Program.

   (e)   Program Expansion Report. The Board of Supervisors directs the Planning Department and MOHCD to research, analyze and provide recommendations for further density and development bonuses for 100% affordable or mixed-income developments. The Program Expan- sion Report shall be published within one year of March 22, 2015.

(Added as Sec. 206.4 by Ord. 143-16, File No. 160687, App. 7/29/2016, Eff. 8/28/2016; redesignated and amended by Ord. 116-17, File No. 150969, App. 6/13/2017, Eff. 7/13/2017; Ord. 202-18, File No. 180557, App. 8/10/2018, Eff. 9/10/2018)

AMENDMENT HISTORY

Renamed and redesignated as Sec. 206.8; divisions (a)-(e) amended; division (c)(3) added and former divisions (c)(3)-(7) redesignated (c)(4)- (8); divisions (d)(1)(A)-(B) added and former divisions (d)(1)(A)-(C) redesignated (d)(1)(C)-(E); former division (f) deleted; Ord. 116-17, Eff. 7/13/2017. Division (d)(1)(E) amended; Ord. 202-18, Eff. 9/10/2018.