o0007-17

AMENDED IN COMMITTEE FILE NO. 161157 12/5/2016 ORDINANCE NO. 007-17 [Planning Code - lnclusionary Housing Small Sites Program] Ordinance amending the Planning Code to create an alternative for project sponsors of smaller market rate projects to direct the Affordable Housing Fee to Small Sites Projects; affirming the Planning Department's determination under the California Environmental Quality Act; making findings of consistency with the General Plan, the eight priority policies of Planning Code, Section 101.1; and making a finding of public necessity, convenience, and welfare under Planning Code, Section 302. NOTE: Unchanged Code text and uncodified text are in plain Arial font. Additions to Codes are in single-underline italics Times New Roman font. Deletions to Codes are in strikethrough italics Times }few Roman font. Board amendment additions are in double-underlined Arial font. Board amendment deletions are in strikethrough Arial font. Asterisks (* * * *) indicate the omission of unchanged Code subsections or parts of tables. Be it ordained by the People of the City and County of San Francisco: Section 1. Findings. (a) The Planning Department has determined that the actions contemplated in this '1 ordinance comply with the California Environmental Quality Act (California Public Resources Code Sections 21000 et seq.). Said determination is on file with the Clerk of the Board of Supervisors in File No. 161157 and is incorporated herein by reference. The Board affirms this determination. (b) On November 17, 2016, the Planning Commission, in Resolution No. 19778, adopted findings that the actions contemplated in this ordinance are consistent, on balance, with the City's General Plan and eight priority policies of Planning Code Section 101.1. The Mayor Lee; Supervisors Campos, Mar BOARD OF SUPERVISORS Page 1 Board adopts these findings as its own. A copy of said Resolution is on file with the Clerk of the Board of Supervisors in File No. 161157, and is incorporated herein by reference. (c) Pursuant to Planning Code Section 302, the Board of Supervisors finds that the proposed Planning Code amendments will serve the public necessity, convenience, and welfare for the reasons set forth in Planning Commission Resolution No. 19778, and the Board incorporates such reasons herein by reference. Section 2. The Planning Code is hereby amended by revising Section 415.2 and 415.5 I 'and adding Section 415.7-1, to read as follows: SEC. 415.2. DEFINITIONS. See Section 401 of this Article. For purposes of Sections 415.3et seq., "low income" households shall be defined as households whose total household income does not exceed 55% of Area Median Income for purposes of renting an affordable unit, or 80% of Area Median Income for purposes of purchasing an affordable unit, and "moderate income" and "middle income" households shall mean households whose total household income does not exceed 100% of Area Median Income for purposes of renting an affordable unit, or 120% of ! !Area Median Income for purposes of purchasing an affordable unit. The Small Sites Fund, defined in Section 415.5(f)(2), and the Small Sites Program, including anv program established pursuant to Section 415. 7-1, may use Affordable Housing Fees to acquire sites and buildings [consistent with the income parameters of the Programs, as periodically updated and administered by MOHCD. SEC. 415.5. AFFORDABLE HOUSING FEE. The fees set forth in this Section 415.5 will be reviewed when the City completes an Economic Feasibility Study. Except as provided in Section 415.5(g), all development projects Mayor Lee; Supervisors Campos, Mar BOARD OF SUPERVISORS Page2 subject to this Program shall be required to pay an Affordable Housing Fee subject to the following requirements: * * * * (f) Use of Fees. All monies contributed pursuant to the lnclusionary Affordable [Housing Program shall be deposited in the Citywide Affordable Housing Fund ("the Fund"), established in Administrative Code Section 10.100-49. The Mayor's Office of Housing and Community Development ("MOHCD") shall use the funds collected under this Section 415.5 in the following manner: I * * * * (2) "Small Sites Funds." (A) Designation of Funds. MOHCD shall designate and separately account for 10% percent of all fees that it receives under Section 415.1 et seq. that are deposited into the Citywide Affordable Housing Fund, established in Administrative Code Section 10.100-49, excluding fees that are geographically targeted such as those referred to in Sections 415.5(b)(1) and 827(b)(1), to support acquisition and rehabilitation of Small Sites ("Small Sites Funds"). MOHCD shall continue to divert 10% percent of all fees for this purpose until the Small Sites Funds reach a total of $15 million at which point, MOHCD will stop designating funds for this purpose. At such time as designated Small Sites Funds are 1 expended and dip below $15 million, MOH CD shall start designating funds again for this l purpose, such that at no time the Small Sites Funds shall exceed $15 million. When the total amount offees paid to the City under Section 415.1_et seq. totals less than $10 million over the preceding 12=-month period, MOHCD is authorized to temporarily divert funds from the Small Sites Fund for other purposes. MOHCD must keep track of the diverted funds, however, such that when the amount of fees paid to the City under Section 415.1_et seq. meets or exceeds $10 million over the preceding 12-=month period, MOHCD shall commit all of the Mayor Lee; Supervisors Campos, Mar BOARD OF SUPERVISORS Page 3 previously diverted funds and 10% percent of any new funds, subject to the cap above, to the Small Sites Fund. I (B) Use of Small Sites Funds. The funds shall be used exclusively to !acquire or rehabilitate "Small Sites" defined as properties consisting of 2-25 units. Units I supported by monies from the fund shall be designated as housing affordable to qualified households as set forth in Section 415.2 for no less than 55 years. Properties supported by the Small Sites Funds must be: (i) rental properties that will be maintained as rental properties; (ii) vacant properties that were formerly rental properties as long as those properties have been vacant for a minimum of two years prior to the effective date of this legislation; (iii) properties that have been the subject of foreclosure; or (iv) a Limited Equity Housing Cooperative as defined in Subdivision Code Sections 1399.1_et seq. or a property owned or leased by a non-profit entity modeled as a Community Land Trust. * * * * (E) Intent. In establishing guidelines for Small Sites Funds, the Board of Supervisors does not intend to preclude MOHCD from expending other eligible sources of I funding on Small Sites as described in this Section 415.5, or from allocating or expending more than $15 million of other eligible funds on Small Sites. * * * * (g) Alternatives to Payment of Affordable Housing Fee. (1) Eligibility: A project sponsor must pay the Affordable Housing Fee unless it qualifies for and chooses to meet the requirements of the Program though an Alternative Mayor Lee; Supervisors Campos, Mar BOARD OF SUPERVISORS Page4 provided in this S~ubsection {gl. The project sponsor may choose one of the following Alternatives: (A) Alternative #1: On-Site Units. Project sponsors may elect to construct units affordable to qualifying households on-site of the principal project pursuant to the requirements of Section 415.6. (B) Alternative #2: Off-Site Units. Project sponsors may elect to construct units affordable to qualifying households at an alternative site within the City and County of San Francisco pursuant to the requirements of Section 415. 7. (C) Alternative #3: Small Sites. Qualifj;ing project sponsors may elect to fimd buildings as set forth in Section 415. 7-1. (GD) Alternative #41_: Combination. Project sponsors may elect any combination of payment of the Affordable Housing Fee as provided in Section 415.5, construction of on-site units as provided in Section 415.6, or construction of off-site units as provided in Section 415.7, provided that the project applicant constructs or pays the fee at the appropriate percentage or fee level required for that option. * * * * SEC. 415. 7-1. SMALL SITES AFFORDABLE HOUSING ALTERNATIVE. I A project sponsor of a principal project comprised of-1::1-p-te 24 or fewere residential units may i I elect under Section 415. 5 (g) to meet its Inclusionary Affordable Housing requirement by designating its 1payment ofthe Affordable Housing Fee due under Section 415. 5 ffitefor a Small Sites program that MOHCD shall establish for this purpose. Affordable Housing Fees designated for this program shall not be considered part o[the designated fimds specified by Section 415. 5 (/). MOH CD shall expend the proaram funds tram a principal project on a Small Sites Project that meets the requirements set forth in Section 415.5(/)(2){B) and that is within the same neighborhood as the principal project. The Mayor Lee; Supervisors Campos, Mar BOARD OF SUPERVISORS Page 5 neighborhood of the principal project shall be determined by the Planning Department's Neighborhood Groups Mapthe geographic area described in Section 415.7. JfMOHCD is unable to identifj; a qualifying Small Sites Project and apply the fee to a qualifying Small Sites Project within the geographic area required in Section 415.7 same neighborhood as the principal project within two years o[the payment o[the fee. such fee shall be released into the Affordable Housing Fund to fund other qualifj;ing Small Sites Projects in San Francisco. Section 3. Effective Date. This ordinance shall become effective 30 days after enactment. Enactment occurs when the Mayor signs the ordinance, the Mayor returns the ordinance unsigned or does not sign the ordinance within ten days of receiving it, or the Board of Supervisors overrides the Mayor's veto of the ordinance. Section 4. Scope of Ordinance. In enacting this ordinance, the Board of Supervisors intends to amend only those words, phrases, paragraphs, subsections, sections, articles, numbers, punctuation marks, charts, diagrams, or any other constituent parts of the Municipal Code that are explicitly shown in this ordinance as additions, deletions, Board amendment additions, and Board amendment deletions in accordance with the "Note" that appears under the official title of the ordinance. APPROVED AS TO FORM: DENNIS J. HER RA City Attorney '\ By: n:\legana\as2016\1700199\01154909.docx Mayor Lee and Supervisor Campos BOARD OF SUPERVISORS Page6 City and County ofSan Francisco Tails Ordinance City Hall 1 Dr. Carlton B. Goodlett Place San Francisco, CA 94102-4689 FileNumber: 161157 Date Passed: January 10, 2017 Ordinance amending the Planning Code to create an alternative for project sponsors of smaller market rate projects to direct the Affordable Housing Fee to Small Sites Projects; affirming the Planning Department's determination under the California Environmental Quality Act; and making findings of consistency with the General Plan, the eight priority policies of Planning Code, Section 101.1; and making a finding of public necessity, convenience, and welfare under Planning Code, Section 302. December 05, 2016 Land Use and Transportation Committee -AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE December 05, 2016 Land Use and Transportation Committee - RECOMMENDED AS AMENDED December 13, 2016 Board of Supervisors - PASSED ON FIRST READING Ayes: 10 - Avalos, Breed, Campos, Cohen, Farrell, Kim, Mar, Peskin, Tang and Yee Vacant: 1 - District 8 January 10, 2017 Board of Supervisors- FINALLY PASSED Ayes: 11 - Breed, Cohen, Farrell, Fewer, Kim, Peskin, Ronen, Safai, Tang, Yee and Sheehy File No. 161157 I hereby certify that the foregoing Ordinance was FINALLY PASSED on 1/10/2017 by the Board of Supervisors of the City and County of San Francisco. I May9J;1 Date Approved City and County of San Francisco Page9 Printed at 11:57 am 0111111117