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AMENDED IN COMMITTEE FILE NO. 201175 3/15/2021 ORDINANCE NO. Planning Commission BOARD OF SUPERVISORS Page 1 [Administrative Code, Planning Code - Technical Corrections; Amendments to Various Central South of Market Area Zoning Provisions] Ordinance amending the Planning Code to correct and clarify Administrative and Planning Code amendments approved in Ordinance No. 296-18, which gave effect to the Central South of Market Area Plan, including provisions regarding transfer of development rights, privately owned public open space, renewable electricity, PDR (Production Distribution Repair) floor height, development impact fee deposits and uses, among others; to restore with modifications inadvertently deleted provisions regarding low-income affordable housing in the SALI (Service/Arts/Light Industrial) Zoning District; and to amend open space, height limit, apparent mass reduction, lot coverage, exposure, PDR replacement, and development impact fee waiver and reduction provisions; and affirming the Planning Department’s determination under the California Environmental Quality Act; making findings of consistency with the General Plan, and the eight priority policies of Planning Code Section 101.1; and findings 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 New 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. (a) The Planning Department has determined that the actions contemplated in this ordinance comply with the California Environmental Quality Act (California Public Resources 47-21

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Page 2 Code Sections 21000 et seq.). Said determination is on file with the Clerk of the Board of Supervisors in File No. 201175 and is incorporated herein by reference. The Board affirms this determination. (b) The Board of Supervisors finds 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 for the reasons set forth in Ordinance No. 296-18, which are incorporated herein by reference. (c) Pursuant to Planning Code Section 302, the Board of Supervisors finds that the actions contemplated in this ordinance will serve the public necessity, convenience, and welfare for the reasons set forth in Ordinance No. 296-18, which are incorporated herein by reference.

Section 2. General Findings. (a) Subsequent to the passage of Ordinance No. 296-18, “The Administrative, Planning Codes – Central South of Market Area Plan Amendments” (“2018 Ordinance”), the Planning Department has determined that technical and clarifying Administrative and Planning Code amendments are needed to effect the original intent of the 2018 Ordinance and other Central SoMa policy documents. In most cases, these amendments correct or clarify the Code for consistency with the intent of the Central SoMa Area Plan, Central SoMa Implementation Document, and other policy documents that were approved at the same time as the Original Ordinance. This ordinance also makes substantive amendments to certain provisions of the Plan.

Section 3. The Administrative Code is hereby amended by revising Sections 35.2 and 35.7, to read as follows:

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Page 3 SEC. 35.2. DECLARATION OF POLICY. It shall be the policy of the City and County of San Francisco (City) to protect its existing and future Production, Distribution, and Repair (PDR) Uses from potentially incompatible adjacent and nearby development provided that such Uses businesses are conducted and maintained in accordance with all applicable federal, state, and local laws and regulations.

SEC. 35.7. PLANNING DEPARTMENT AND COMMISSION REVIEW OF RESIDENTIAL PROJECTS.

The Planning Department and Commission shall consider, among other factors, the compatibility of uses when approving Residential Uses and Hotel Uses in PDR Use Zoning Districts and shall take all reasonably available means through the City’s design review and approval processes to ensure that the design of such new residential and hotel development projects is sensitive to both the existing and future PDR Uses in these Districts and the future residents and overnight visitors of the new development. Such factors may include, among others: (a) The proposed project’s consistency with the Industrial Area Design Guidelines; (b) The proposed project’s overall design, acoustical treatment, and ventilation to achieve interior noise levels and ventilation compatible with residential standards; and (c) The location of non-habitable spaces or spaces such as closets, bathrooms, kitchens, and/or landscaping so that such spaces may provide a buffer between the proposed habitable residential areas and any common property line with PDR Uses.

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Page 4 Section 4. The Planning Code is hereby amended by revising Sections 128.1, 135, 138, 155, 249.78, 261.1, 270, 329, 406, 415.5, 426, 427, 432.4, 433.2, 433.4, 840, 841, and 848 and adding Section 803.8, to read as follows: SEC. 128.1. TRANSFER OF DEVELOPMENT RIGHTS IN THE CENTRAL SOMA SPECIAL USE DISTRICT. * * * * (b) Definitions. “Development Lot.” A lot within the Central SoMa Special Use District to which Transferable Development Rights may be transferred. The following areas are exempted from the calculation of the Development Lot area: land dedicated to the City for affordable housing pursuant to Section 249.78 or land dedicated to the City for publicly-owned parks or publicly- owned recreation centers pursuant to Section 263.32 or 263.34. “Preservation Lot.” A parcel of land within the Central SoMa Special Use District on which exists (1) a Significant or Contributory Building, as designated pursuant to Article 11 of this Code; or (2) a structure designated as an individual landmark or as contributory to a historic district designated pursuant to Article 10 of this Code. The boundaries of the Preservation Lot shall be the boundaries of the Assessor’s Lot on which the building is located at the time the ordinance making the designation is adopted, unless boundaries are otherwise specified in that ordinance. “Transfer Lot.” A lot wWithin the Central SoMa Special Use District, a Transfer Lot is a Preservation Lot or a lot that contains a building in which all of the housing units are Affordable Housing Units as defined in Section 401, from which Transferable Development Rights may be transferred. * * * *

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Page 5 (c) Applicability. TDR may be transferred from a Transfer Lot to a Development Lot, subject to the requirements set forth in this Section 128.1 and Section 249.78. * * * * (d) Controls. The transfer and use of TDR within the Central SoMa SUD are subject to the following controlsshall be allowed only under the following circumstances:

(1) TDR from a Transfer Lot within the Central SoMa SUD may be used by any Development Lot in the city as defined in Sections 128 and 128.1.The Transfer Lot is a Preservation Lot or consists of a building all of the housing units of which are Affordable Housing Units as defined in Section 401.

(2) TDR from a Transfer Lot located outside the Central SoMa SUD may only be used by a Development Lot within the Central SoMa SUD if that Development Lot is a Large Development Site pursuant to subsection (e).The purchaser of the TDR is a Development Lot as defined in Section 128 and 128.1.

(3) Transfer and use of TDR within the Central SoMa SUD is subject to the requirements of Section 128(e) through (l). (e) Additional Requirements. Projects transferring TDR pursuant to this Section 128.1 are subject to the requirements of Planning Code Section 128(e) through (l) and Section 249.78.TDR Controls for Large Development Sites. (1) Applicability. This subsection (e) applies to Large Development Sites, which are projects that:

(A) Are located in Central SoMa Fee Tier C, as defined in Section 423.2;

(B) Contain new construction or addition of 50,000 non-residential gross square feet or greater; and

(C) Have a Floor Area Ratio of 3:1 or greater.

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Page 6 (2) Controls. To exceed a Floor Area Ratio of 3:1, a Large Development Site shall acquire one Unit of TDR from a Transfer Lot, as defined in Sections 128 and 128.1, per square foot of development up to a Floor Area Ratio of 4.25:1. Above 4.25:1, the acquisition of additional TDR is not required. * * * *

SEC. 135. USABLE OPEN SPACE FOR DWELLING UNITS AND GROUP HOUSING, R, NC, MIXED USE, C, AND M DISTRICTS. * * * * (h) Publicly-Accessible Usable Open Space Standards. In DTR Districts and the Eastern Neighborhoods Mixed Use Districts, some or all of the usable open space requirements may be fulfilled by providing privately-owned public open space. Any space credited as publicly-accessible usable open space, where permitted or required by this Code, shall meet the following standards: * * * *

(6) Approval of Open Space Type and Features. Approval of open space in these areas is subject to requirements of Section 138(de) of this Code. (i) Off-Site Provision of Required Usable Open Space.

(1) Eastern Neighborhoods Mixed Use Districts. In the Eastern Neighborhoods Mixed Use Districts, the provision of off-site publicly accessible open space may be credited toward the residential usable open space requirement, subject to Section 329 for projects to which that Section applies and Section 307(h) for other projects. Any such space shall meet the publicly accessible open space standards set forth in Section 135(h) and be provided within 800 feet of the projectshall be within the following distance of the principal project: for principal projects that are not within the Central SoMa SUD such space shall be within 800 feet of

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Page 7 said principal project; for principal projects that are within the Central SoMa SUD, the space shall be within 1/2 mile of said principal project or within any parcel that is under or immediately adjacent to Interstate 80 and within the boundaries of Central SoMa Plan Areawithin the Central SoMa Plan Area or no greater than ¼-mile outside the Central SoMa Plan Area boundary, without regard to distance from the principal project. The distance between the principal project and the offsite open space shall be measured by the direct distance between the closest boundary of the principal project or, as applicable the closest edge of the Central SoMa Plan Area boundary, and the closest boundary of the off-site open space. No more than 50 percent of a project's required usable open space shall be off-site. The publicly accessible off-site usable open space shall be constructed, completed, and ready for use no later than the project itself, and shall receive its Certificate of Final Completion from the Department of Building Inspection prior to the issuance of any Certificate of Final Completion or Temporary Certificate of Occupancy for the project itself. * * * *

SEC. 138. PRIVATELY-OWNED PUBLIC OPEN SPACE (POPOS) REQUIREMENTS. * * * * (f) Open Space Provider. The open space required by this Section may be provided: individually by the project sponsor or jointly by the project sponsor and other project sponsors, provided, that each square foot of jointly developed open space may count toward only one sponsor's requirement. With the approval of the Planning Commission, a public or private agency may develop and maintain the open space, provided that (i) the project sponsor or sponsors pay for the cost of development of the number of square feet the project sponsor is required to provide, (ii) provision satisfactory to the Commission is made for the continued maintenance of the open space for the actual lifetime of the building giving rise to the open

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Page 8 space requirement, and (iii) the Commission finds that there is reasonable assurance that the open space to be developed by such agency will be developed and open for use by the time the building, the open space requirement of which is being met by the payment, is ready for occupancy. Property owners providing open space under this section will hold harmless the City and County of San Francisco, its officers, agents and employees, from any damage or injury caused by the design, construction, use, or maintenance of open space. Property owners are solely liable for any damage or loss occasioned by any act or negligence in respect to the design, construction, use, or maintenance of the open space. Operation and maintenance of this open space shall be memorialized by a POPOS Operations Strategy developed by the Project Sponsor or Open Space Provider; a draft of said strategy shall be presented to the Planning Commission where a Large Project Authorization under Planning Code Section 329 applies. In all cases, said strategy shall be finally approved by the Director prior to Planning Department approval of a site or building permit. * * * * (j) Notwithstanding the requirements established in subsections (b)-(d) above, the following additional standards shall apply in the C-3-O(SD) district: * * * *

(4) In-lieu of providing open space per the requirements of this Section 138, developments in the C-3-O(SD) District may pay the fee as described in Section 4276(b). * * * *

SEC. 155. GENERAL STANDARDS AS TO LOCATION AND ARRANGEMENT OF OFF- STREET PARKING, FREIGHT LOADING, AND SERVICE VEHICLE FACILITIES. * * * *

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Page 9 (r) Protected Pedestrian-, Cycling-, and Transit-Oriented Street Frontages. In order to preserve the pedestrian character of certain districts and to minimize delays to transit service, garage entries, driveways, or other vehicular access to off-street parking or loading via curb cuts on development lots shall be regulated as set forth in this subsection (r). These limitations do not apply to the creation of new publicly-accessible Streets and Alleys. Any lot whose sole feasible vehicular access is via a protected street frontage described in this subsection (r) shall be exempted from any off-street parking or loading requirement found elsewhere in this Code.

(1) Folsom Street, from Second Street to The Embarcadero, not permitted except as set forth in Section 827.

(2) Not permitted: * * * * (MMMMSS) 6th Street from Folsom Street to Brannan Street. * * * *

SEC. 249.78. CENTRAL SOMA SPECIAL USE DISTRICT. (a) Purpose. In order to implement the goals, objectives, and policies of the Central SoMa Plan (Ordinance No. 280-18, on file with the Clerk of the Board of Supervisors in File No. 180185), the Central SoMa Special Use District (SUD) is hereby established. (b) Geography. The SUD is within the South of Market (SoMa) neighborhood, and its boundaries generally run from 2nd Street to the east to 6th Street to the west, and from Townsend Street to the south to an irregular border that generally follows Folsom, Howard, and Stevenson Streets to the north, as more specifically shown on Sectional Maps 1SU and 8SU of the Zoning Map. (c) Land Use Controls.

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Page 10 * * * *

(5) PDR and Community Building Space Requirements.

(A) For purposes of this subsection, “Community Building Space” shall mean space provided for a Social Service, Institutional Community, Community Facility, or Public Facility Use or for a Legacy Business.

(B) In addition to the requirements of Section 202.8, any newly constructed project that contains at least 50,000 gross square feet of office and any addition that increases the original building’s gross floor area by at least twenty percent and results in at least 50,000 gross square feet of net office in the building shall provide one of the following:

(i) An amount of space for PDR Uses or Community Building Space, or a combination thereof, that is the greater of the following:

a. the square footage of PDR space required by the controls of Section 202.8, or

b. on-site dedication of space for PDR Uses or Community Building Space, or a combination thereof, that is equivalent to 40 percent of the lot area, in which case for purposes of this Section 249.78(b)(5), the following areas are exempted from the calculation of the lot area: land dedicated to a building whose housing units consist entirely of Affordable Housing Units as defined in Section 401; publicly accessible open space and mid-block alleys that are fully open to the sky except for obstructions permitted pursuant to Section 136 or under a cantilevered portion of the building for up to 10% of space pursuant to Section 138(d)(2); any portion of the lot or lots containing a building dedicated primarily to residential use; and ground floor space dedicated to a Child Care Facility. For purposes of this subsection, “on-site” means anywhere on the subject project lot or lots.

(ii) Establishment off-site, through new construction, addition, or change of use, of a minimum of 150 percent of gross square feet of the on-site PDR

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Page 11 requirement for PDR Uses or for Community Building Space. Such off-site space shall be located within the area bounded by Market Street, Second Street, King Street, Division Street, and South Van Ness Avenue; or

(iii) Preservation of existing PDR uses off-site, at a minimum of 200 percent of the on-site requirement, for the life of the project that is subject to the requirements of this subsection (6). This off-site PDR shall be located on one or more lots in the area bounded by Market Street, Second Street, King Street, Division Street, and South Van Ness Avenue. The PDR space preserved off-site shall not include any space already required to be preserved pursuant to this Section or Section 202.8. * * * *

(F) For the Key Site described in Section 329(e)(2)(E) at the northeast corner of the intersection of 5th Street and Brannan Street, consisting of Block 3777, Lots 045, 050, 051, and 052, the PDR and Community Building Space Requirement pursuant to this subsection (5) shall be reduced by up to 15,000 gross square feet sitewide by the amount of ground floor space designated for any of the following uses: (i) Grocery, General, (ii) Pharmacy, (iii) Personal Services, not to exceed 2,500 gross square feet, and (iv) Retail Sales and Services limited to: Self-service laundromats and dry cleaning; Household goods and service (including paint, fixtures, hardware, and building materials); Pet supply stores and pet grooming services; Florists, plant and gardening stores; Home furnishings, furniture, and appliances; Books and magazines, stationery, greeting cards, toys and gifts, office supplies, copying service, music, and sporting goods; Art, fabric, and craft supplies; Bicycle sales and repair; and Stores primarily selling used or secondhand goods. * * * * (d) Urban Design and Density Controls. * * * *

(5) Renewable Electricity.

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(A) Definitions. For the purpose of this subsection, “greenhouse-gas free” shall mean energy resources qualifying as renewable pursuant to California Public Resources Code Chapter 8.6, Section 25741(a) and from hydroelectric facilities of 30 megawatts or greater.

(B) Applicability. This subsection shall apply to any newly constructed commercial or residential building or major renovation to an existing building, as defined by San Francisco Green Building Code Section 202.

(C) Requirements.

(i) All projects shall commit, as a condition of approval, to fulfilling all on-site electricity demands through any combination of on-site generation of 100% greenhouse gas-free electricity and purchase of electricity from 100% greenhouse gas-free sources for a period of not less than 25 years from issuance of entitlementthe first construction document.

(ii) The Planning Department, after consulting with the Public Utilities Commission, Department of Building Inspection, and the Department of the Environment, shall adopt rules and regulations to implement this subsection. * * * *

(6) Lot Coverage and Exposure.

(A) Lot Coverage. For residential uses, the rear yard requirements of Section 134 of this Code shall not apply. Lot coverage is limited to 80 percent at all levels containing residential useslevels, except that on levels that include only lobbies and circulation areas and on levels in which all residential uses, including circulation areas, are within 40 horizontal feet from a property line fronting a street or alley, up to units face onto a public right-of-way, 100 percent lot coverage may occur. The unbuilt portion of the lot shall be open to the sky except for those obstructions permitted in yards pursuant to subsections (1) through (23) of Section

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Page 13 136(c) of this Code. Where there is a pattern of mid-block open space for adjacent buildings, the unbuilt area of the new project shall be designed to adjoin that mid-block open space.

(B) Exposure. Notwithstanding the residential unit exposure requirements of Section 140(a)(2), if a residential unit in the Central SoMa SUD does not face either a public street or a public alley pursuant to Section 140(a)(1), the unit shall face an open area that measures no less than 20 feet in all horizontal directions on the subject lot. Such open area need not be increased in its horizontal dimensions for the floors above. * * * *

(10) PDR Floor Heights. PDR space that is subject to the requirements of Section 202.8 or 249.78(c)(5) shall have a minimum internal floor-to-floor height of 17 feet, as measured from grade. * * * * (e) Community Development Controls.

(1) Affordable Housing Funds. Affordable Housing Fees for projects within the Central SoMa Special Use District shall be deposited in the Central SoMa Affordable Housing Fund and shall be expended within a limited geographic area, as specified in Administrative Code Section 10.100-46shall be subject to Section 415.5(f)(1)(D).

(2) Land Dedication.

(A) Residential projects in this SUD may opt to fulfill the Inclusionary Housing requirement of Section 415 through the Land Dedication alternative contained in Section 419.6.

(B) Non-Residential projects in this Special Use District may opt to fulfill their Jobs-Housing Linkage Fee requirement of Section 413 through the Land Dedication alternative contained in Section 413.6.

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(3) TDR Requirements for Large Development Sites. The transfer and use of TDR by Large Development Sites in the Central SoMa SUD is subject to the controls of Section 128.1.

(A) Applicability. This control applies to projects that:

(i) Are located in Central SoMa Fee Tier C, as defined in Section 423.2;

(ii) Contain new construction, or addition, of 50,000 non-residential gross square feet or greater; and

(iii) Have a Floor Area Ratio of 3:1 or greater.

(B) Requirement.

(i) A project subject to this subsection (3) will be considered a “Development Lot,” pursuant to Section 128.1;

(ii) To exceed a Floor Area Ratio of 3:1, a Development Lot shall acquire one Unit of TDR from a Transfer Lot, as defined in Sections 128 and 128.1, per square foot of development up to a Floor Area Ratio of 4.25:1. Above 4.25:1, the acquisition of additional TDR is not required. * * * *

SEC. 261.1. ADDITIONAL HEIGHT LIMITS FOR NARROW STREETS AND ALLEYS IN, R, RTO, NC, NCT, AND EASTERN NEIGHBORHOODS MIXED USE DISTRICTS. * * * * (b) Definitions. * * * *

(5) Streets in the South of Market area that are perpendicular to Market Street are considered North-South Streets, and streets that are parallel to Market Street are considered East-West Streets. * * * *

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Page 15 (d) Controls.

(1) General Requirement. Except as described below, all Subject Frontages shall have upper stories set back at least 10 feet at the property line above a height equivalent to 1.25 times the width of the abutting Narrow Street. Buildings of two stories above grade may be built without a second-story setback, regardless of the width of the street.

(2) Southern Side of East-West Narrow Streets and, Within the Central SoMa Special Use District, Western Side of North-South Narrow Streets. All Subject Frontages on the southerly side of an East-West Narrow Street and, within the Central SoMa Special Use District, all Subject Frontages on a North-South Narrow Street shall have upper stories which are set back at the property line such that they avoid penetration of a sun access plane defined by an angle of 45 degrees extending from the most directly opposite northerly property line (as illustrated in Figure 261.1A.) No part or feature of a building, including but not limited to any feature listed in Section 260(b), may penetrate the required setback plane. * * * *

(3) Narrow Streets Controls Within the Central SoMa SUD.

(A) Notwithstanding subsection (d)(1) above, buildings of 65 feet or more in height shall not be subject to the 10-foot setback requirement, but instead shall be subject to the Apparent Mass Reduction controls of Section 270(h).

(B) Frontages on the westerly side of a North-South Narrow Street shall meet the sun access plane requirements of subsection (d)(2) above.Northern Side of all Narrow Streets with the Central SoMa Special Use District. Subject Frontages in a 65- or 85-foot Height district are required to meet Apparent Mass Reduction requirements, as defined in Section (h), as follows:

(A) All Subject Frontages in a 65-foot Height district are required to have an Apparent Mass Reduction of fifty percent, as measured utilizing a Base Height of 35 feet.

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(B) All Subject Frontages in a 85-foot Height district are required to have an Apparent Mass Reduction of seventy percent, as measured utilizing a Base Height of 35 feet. * * * *

SEC. 270. BULK LIMITS: MEASUREMENT. * * * * (h) CS Bulk Limits within the Central SoMa Special Use District. In the CS Bulk District and height and bulk districts that allow heights of 65 feet and above and that are within the Central South of Market Special Use District, the bulk limits contained in this subsection 270(h) shall apply.

* * * *

(2) Apparent Mass Reduction. Projects in the CS Bulk District are subject to the Apparent Mass Reduction controls of Table 270(h), as well as the setback requirements of Section 132.4.

Table 270(h) Apparent Mass Reduction Building Frontage Side of the Street Height District*** Base Height* Apparent Mass Reduction * * * * Narrow Street Southeast and southwest 160 feet and less 35 feet The controls of Section 261.1(d)(2) shall apply.**

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Page 17 Narrow Street Northeast and northwest 135130 feet and 160 feet 35 feet 85% Narrow Street Northeast and northwest 65 feet 35 feet 50% Narrow Street Northeast and northwest 85 feet 35 feet 70% * * * * * * * * * * * * * * * * * * * * * * * * *** Any building that exceeds the height allowed by the applicable Height District shall comply with the apparent mass reduction requirement in this Table based on its actual height. * * * *

SEC. 329. LARGE PROJECT AUTHORIZATION IN EASTERN NEIGHBORHOODS MIXED USE DISTRICTS. * * * * (d) Exceptions. As a component of the review process under this Section 329, projects may seek specific exceptions to the provisions of this Code as provided for below:

(4) Exception from satisfaction of loading requirements per Section 152.1 pursuant to the criteria contained therein.

(4) Exception from satisfaction of loading requirements of Section 152.1 as specified therein. In the Central SoMa SUD, the Commission may consider the project’s Driveway and Loading Operations Plan (DLOP) pursuant to Section 155(u) in making its determination. * * * *

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Page 18 SEC. 406. WAIVER, REDUCTION, OR ADJUSTMENT OF DEVELOPMENT PROJECT REQUIREMENTS. * * * * (b) Waiver or Reduction, Based on Housing Affordability. (1) An affordable housing unit shall receive a waiver from the Rincon Hill Community Infrastructure Impact Fee, the Market and Octavia Community Improvements Impact Fee, the Eastern Neighborhoods Infrastructure Impact Fee, the Balboa Park Impact Fee, the Visitacion Valley Community Facilities and Infrastructure Impact Fee, the Transportation Sustainability Fee, and the Residential Child Care Impact Fee, the Central South of Market Infrastructure Impact Fee, and the Central South of Market Community Facilities Fee if the affordable housing unit:

(A) is affordable to a household at or below 80% of the Area Median Income (as published by HUD), including units that qualify as replacement Section 8 units under the HOPE SF program;

(B) is subsidized by MOHCD, the San Francisco Housing Authority, the Department of Homelessness and Supportive Housing, and/or the Office of Community Investment and Infrastructure or any future successor agency to those listed herein; and

(C) is subsidized in a manner which maintains its affordability for a term no less than 55 years, whether it is a rental or ownership opportunity. Project sponsors must demonstrate to the Planning Department staff that a governmental agency will be enforcing the term of affordability and reviewing performance and service plans as necessary. * * * *

SEC. 415.5. AFFORDABLE HOUSING FEE. * * * *

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Page 19 (f) Use of Fees. All monies contributed pursuant to the Inclusionary Affordable Housing Program shall be deposited in the Citywide Affordable Housing Fund (“Fund”), established in Administrative Code Section 10.100-49, except as specified below. MOHCD shall use the funds collected under this Section 415.5 in the following manner:

(1) Except as provided in subsection (2) below, the funds collected under this Section shall be used to:

(A) increase the supply of housing affordable to qualifying households subject to the conditions of this Section; and

(B) provide assistance to low- and moderate-income homebuyers; and

(C) pay the expenses of MOHCD in connection with monitoring and administering compliance with the requirements of the Program. MOHCD is authorized to use funds in an amount not to exceed $200,000 every 5 years to conduct follow-up studies under Section 415.9(e) and to update the affordable housing fee amounts as described above in Section 415.5(b). All other monitoring and administrative expenses shall be appropriated through the annual budget process or supplemental appropriation for MOHCD.

(D) Funds from this fee collected from projects within the Central SoMa Special Use District shall be accounted for separately and expended only within the area bounded by Market Street, the Embarcadero, King Street, Division Street, and South Van Ness Avenue. * * * *

SEC. 426. ALTERNATIVE MEANS OF SATISFYING THE PAYMENT FOR REQUIRED NON- RESIDENTIAL OPEN SPACE REQUIREMENT NOT PROVIDED IN THE EASTERN NEIGHBORHOODS MIXED USE AND C-3-O(SD) DISTRICTS.

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(The effective date of these provisions shall be either December 19, 2008, the date that they originally became effective, or the date a subsequent modification, if any, became effective.) (a) Eastern Neighborhoods Mixed Use Districts. In the Eastern Neighborhoods Mixed Use Districts, except for any parcels within the Central SoMa Special Use District, the usable open space requirement of Section 135.3 may be satisfied through payment of a fee of $76 for each square foot of usable open space not provided. In the Central SoMa Special Use District, the usable open space requirement of Section 135.3 may be satisfied through payment of a fee of $890 for each square foot of required usable open space not provided, and the POPOS requirement of Section 138 may be satisfied through a payment of a fee of $890 for each square foot of required open space not provided. Any square footage for which the Planning Commission grants an exception to design standards pursuant to Section 329(e) other than standards related to required square footage shall be considered as meeting the requirements of Sections 135, 135.3 and 138 for purposes of this Section 426. These fees shall be adjusted in accordance with Section 423.3 of this Article. These fees shall be paid into the Recreation and Open Space subset of the Eastern Neighborhoods Community Improvements Fund, as described in Section 423 of this Article. (b) C-3-O(SD) District. In the C-3-O(SD) District, if a project sponsor chooses to pay the in- lieu fee described in Section 138(j)(4), a fee of $1,410 shall be required for each square foot of usable open space not provided. This fee shall be adjusted in accordance with Section 409. This fee shall be paid into the Transit Center District Open Space Fund, as described in Sections 424.6 et seq. of this Article 4. Said fee shall be used for the purpose of acquiring, designing, and improving public open space, recreational facilities, and other open space resources, which are expected to be used solely or in substantial part by persons who live, work, shop or otherwise do business in the Transit Center District.

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SEC. 427. PAYMENT IN CASES OF VARIANCE OR EXCEPTION FOR REQUIRED RESIDENTIAL OPEN SPACE IN THE EASTERN NEIGHBORHOODS MIXED USE AND C-3- O(SD) DISTRICTS. (a) Eastern Neighborhoods Mixed Use Districts. In the Eastern Neighborhoods Mixed Use Districts, except for the Central SoMa Special Use District, any project that obtains a Variance pursuant to Section 305, or an exception pursuant to Section 329, to provide less usable open space than otherwise required by Section 135 shall pay a fee of $327 for each square foot of usable open space not provided. In the Central SoMa Special Use District, any project that obtains a Variance pursuant to Section 305, an exception pursuant to Section 329, or chooses the in-lieu option pursuant to Section 135(d)(5)(B)(ii) shall pay a fee of $890 for each square foot of required useable open space not provided. These fees shall be adjusted in accordance with Section 423.3 of this Article. These fees shall be paid into the Recreation and Open Space subset of the Eastern Neighborhoods Community Improvements Fund, as described in Section 423 of this Article. (b) C-3-O(SD) District. In the C-3-O(SD) District, if a Variance or Planning Commission exception is granted by the Zoning Administrator to reduce the amount of open space required for any use pursuant to Section 135 or 138 or if a project sponsor chooses to pay the in- lieu fee described in Section 138(j)(4), a fee of $1,410 shall be required for each square foot of usable open space not provided. This fee shall be adjusted in accordance with Section 409. This fee shall be paid into the Transit Center District Open Space Fund, as described in Sections 424.6 et seq. of this Article. Said fee shall be used for the purpose of acquiring, designing, and improving public open space, recreational facilities, and other open space resources, which isare expected to be used solely or in substantial part by persons who live, work, shop or otherwise do business in the Transit Center District.

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SEC. 432.4. THE CENTRAL SOMA COMMUNITY SERVICES FACILITIES FUND. (a) There is hereby established a separate fund set aside for a special purpose entitled the Central SoMa Community Services Facilities Fund (“Fund”). All monies collected by the Development Fee Collection Unit at DBI pursuant to Section 432.3(b) shall be deposited in a special fund maintained by the Controller. The receipts in the Fund are to be used solely to fund public infrastructure subject to the conditions of this Section. (b) Expenditures from the Fund shall be administered by the Mayor’s Office of Housing and Community Development, or its successor. The Mayor’s Office of Housing and Community Development or its successor shall have the authority to prescribe rules and regulations governing the Fund.

(1) All monies deposited in the Fund shall be used to design, engineer, and develop community services facilities, including cultural/arts facilities, social welfare facilities, and community health facilities, in the Central SoMa Special Use District within the area bounded by Market Street, the Embarcadero, King Street, Division Street and South Van Ness Avenue as established in the Central SoMa Plan and the Central SoMa Plan Implementation Program Document and supported by the findings of the Central SoMa Community Facilities Nexus Study. * * * *

SEC. 433.2. APPLICATION OF FEES. * * * * (b) Fee Calculation. For applicable projects, the Fee is as follows:

(1) For Residential uses in Central SoMa Fee Tier B:

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(A) For Condominium usesOwned Units, as defined in Section 415.2, $20.00 per gross square foot of net additional gross square feet, net replacement of gross square feet from PDR uses, or net change of use of gross square feet from PDR uses.

(B) For Rental usesUnits, defined as units that are not Owned Units as defined in Section 415.2, $10.00 per gross square foot of net additional gross square feet, net replacement of gross square feet from PDR uses, or net change of use of gross square feet from PDR uses. * * * *

SEC. 433.4. THE CENTRAL SOMA INFRASTRUCTURE IMPACT FUND. (a) There is hereby established a separate fund set aside for a special purpose entitled the Central SoMa Infrastructure Impact Fund (“Fund”). All monies collected by the Development Fee Collection Unit at DBI pursuant to Section 433.3(b) shall be deposited in a special fund maintained by the Controller. The receipts in the Fund to be used solely to fund Public Benefits subject to the conditions of this Section. (b) Expenditures from the Fund shall be recommended by the Interagency Plan Implementation Committee for allocation and administration by the Board of Supervisors.

(1) All monies deposited in the Fund shall be used to design, engineer, and develop community public transit and recreation and open space improvements as established in the Central SoMa Plan and the Central SoMa Plan Implementation Program Document. * * * *

SECTION 803.8. LOW-INCOME AFFORDABLE HOUSING IN THE SERVICE/ARTS/LIGHT INDUSTRIAL DISTRICT.

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Page 24 (a) Dwelling units and SRO units may be authorized in the SALI District as a conditional use pursuant to Sections 303, 846.24, of this Code provided that such units shall be rented, leased or sold at rates or prices affordable to a household whose income is no greater than 80 percent of the median income for households in San Francisco (“lower income household”), as described by Title 25 of the California Code of Regulations Section 6932 and implemented by the Mayor’s Office of Housing. These units are subject to all provisions of this Section 803.8. (b) “Affordable to a household” shall mean a purchase price that a lower income household can afford to pay based on annual payment for all housing costs of 33 percent of the combined household annual net income, a 10 percent down payment, and available financing, or a rent that a household can afford to pay, based on an annual payment for all housing costs of 30 percent of the combined annual net income. (c) The size of the dwelling unit shall determine the size of the household in order to calculate purchase price or rent affordable to a household, as follows:

(1) For a studio unit, a household of one person;

(2) For a one bedroom unit, a household of two persons; (3) For a two bedroom unit, a household of three persons; (4) For a three bedroom unit, a household of four persons; (5) For a four bedroom unit, a household of five persons. (d) No Conditional use permit will be approved pursuant to this Section 803.8 unless the applicant and City have agreed upon enforcement mechanisms for the provisions of this subsection which are acceptable to the City Attorney. Such enforcement mechanisms may include, but not be limited to, a right of first refusal in favor of the City, or a promissory note and deed of trust. (e) The owner(s) of the units authorized pursuant to this Section 803.8 shall submit an annual enforcement report to the City, along with a fee whose amount shall be determined periodically by the Planning Commission to pay for the cost of enforcement of this Section 803.8. The fee shall not exceed

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Page 25 the amount of such costs. The annual report shall provide information regarding rents, mortgage payments, sales price and other housing costs, annual household income, size of household in each dwelling unit, and any other information the City may require to fulfill the intent of this Section 803.8.

SECTION 840. MUG – MIXED USE-GENERAL DISTRICT. * * * * Table 840 MUG – MIXED USE-GENERAL DISTRICT ZONING CONTROL TABLE

No. Zoning Category § References Mixed Use-General District Controls Building and Siting Standards * * * * * * * * * * * * * * * * 840.19 Design Guidelines General Plan Commerce and Industry Element; Central SoMa Plan Subject to the Urban Design Guidelines; subject to the Central SoMa Guide to Urban Design 840.20 Lot coverage § 249.78 In the Central SoMa SUD, limited to 80 percent at all residential levels containing residential uses, except that on levels that include only lobbies and circulation areas and on levels in which all residential units face onto a public right-of-way,uses, including circulation areas, are within 40 horizontal feet from a

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Page 26 property line fronting a street or alley, up to 100% lot coverage may occur. The unbuilt portion of the lot shall be open to the sky except for those obstructions permitted in yards pursuant to Section 136(c) of this Code. Where there is a pattern of mid-block open space for adjacent buildings, the unbuilt area of the new project shall be designed to adjoin that mid-block open space. * * * * * * * * * * * * * * * * 840.22 Group Housing §§ 249.78(c)(8), 890.88(b) P outside of the Central SoMa SUD.

NP in Central SoMa SUD, except that Group Housing uses that are also defined as Student Housing, or Senior Housing, or Residential Care Facility, are designated for persons with disabilities, are designated for Transition Age Youth, or are contained in buildings that consist of 100% affordable units are P. 840.23 SRO Units §§ 249.78(c)(7), 890.88(c) P outside of the Central SoMa SUD.

NP in Central SoMa SUD, notwithstanding any less restrictive Group

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Page 27 Housing controls that otherwise would apply, except that SRO Units in buildings that consist of 100% affordable units, as defined in Section 249.78(c)(7), are P. * * * * * * * * * * * * * * * * SECTION 841. MUR – MIXED USE-RESIDENTIAL DISTRICT. * * * *

Table 841 MUR – MIXED USE-RESIDENTIAL DISTRICT ZONING CONTROL TABLE

No. Zoning Category § References Mixed Use-Residential District Controls * * * * * * * * * * * * * * * * 841.19 Design Guidelines General Plan Commerce and Industry Element; Central SoMa Plan Subject to the Urban Design Guidelines; and, in the Central SoMa SUD, subject to the Central SoMa Guide to Urban Design 841.20 Lot coverage § 249.78 In the Central SoMa SUD, limited to 80 percent at all residential levels containing residential uses, except that on levels that include only lobbies and circulation areas and on levels in which all residential units face onto a public right-of-way,uses, including circulation areas, are within 40 horizontal feet from a property line fronting a street or alley, up to 100% lot coverage may occur. The unbuilt portion of the lot shall be open to

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Page 28 the sky except for those obstructions permitted in yards pursuant to Section 136(c) of this Code. Where there is a pattern of mid-block open space for adjacent buildings, the unbuilt area of the new project shall be designed to adjoin that mid-block open space. * * * * * * * * * * * * * * * * 841.22 Group Housing §§ 249.78(c)(8), 890.88(b) P outside of the Central SoMa SUD. NP in Central SoMa SUD, except that Group Housing uses that are also defined as Student Housing, or Senior Housing, or Residential Care Facility, are designated for persons with disabilities, are designated for Transition Age Youth, or are contained in buildings that consist of 100% affordable units are P. 841.23 SRO Units §§ 249.78(c)(7), 890.88(c) P outside of the Central SoMa SUD. NP in Central SoMa SUD, not withstanding any less restrictive Group Housing controls that otherwise would apply, except that SRO Units in buildings that consist of 100% affordable units, as defined in Section 249.78(c)(7) are P. * * * * * * * * * * * * * * * *

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Page 29 841.46 Formula Retail § 303.1“§ 102, 249.78, 303, 303.1 PIn the Central SoMa SUD, NP for Restaurants, Limited Restaurants, and Bars; C for all other Formula Retail Uses. Elsewhere, C for all Formula Retail Uses. If approved, subject to size controls in 8401.45. * * * * * * * * * * * * * * * *

SEC. 848. CMUO - CENTRAL SOMA MIXED-USE OFFICE DISTRICT.

* * * * Table 848 CMUO – CENTRAL SOMA MIXED USE-OFFICE DISTRICT ZONING CONTROL TABLE

* * * * * * * * * * * * Zoning Category § References Controls * * * * * * * * * * * * Lot coverage § 249.78 Limited to 80 percent at all residential levels containing residential uses, except that on levels that include only lobbies and circulation areas and on levels in which all residential units face onto a public right-of-way,uses, including circulation areas, are within 40 horizontal feet from a property line fronting a street or alley, up to 100% lot coverage may occur. The unbuilt portion of the lot shall be open to the sky except for those obstructions permitted in yards pursuant to Section

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Page 30 136(c) of this Code. Where there is a pattern of mid-block open space for adjacent buildings, the unbuilt area of the new project shall be designed to adjoin that mid-block open space. * * * * * * * * * * * * Section 5. Applicability of Amendments to Section 249.78(d)(6). The amendments to Section 249.78(d)(6) in this ordinance shall apply only to projects that file a complete application with the Planning Department after July 1, 2020 and that have not yet received a Planning Department approval as of the effective date of this ordinance. Any project that filed a complete application with the Planning Department on or before July 1, 2020 and that has not yet received a Planning Department approval as of the effective date of this ordinance is subject to the Lot Coverage and Exposure provisions of Section 249.78 that were in effect immediately prior to the effective date of this ordinance, unless such project opts to be subject to both the Lot Coverage and Exposure provisions in Section 249.78, as amended in this ordinance. Section 6. 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 7. Scope of Ordinance. In enacting this ordinance, the Board of Supervisors intends to amend only those words, phrases, paragraphs, subsections, sections, articles, Planning Commission BOARD OF SUPERVISORS Page 31 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. HERRERA, City Attorney By: /s/ VICTORIA WONG Deputy City Attorney n:\legana\as2020\2000280\01519746.docx Tails City and County of San Francisco City Hall 1 Dr. Carlton B. Goodlett Place San Francisco, CA 94102-4689 Ordinance Ordinance amending the Planning Code to correct and clarify Administrative and Planning Code amendments approved in Ordinance No. 296-18, which gave effect to the Central South of Market Area (SoMa) Plan, including provisions regarding transfer of development rights, privately owned public open space, renewable electricity, PDR (Production Distribution Repair) floor height, development impact fee deposits and uses, among others; to restore with modifications inadvertently deleted provisions regarding low-income affordable housing in the SALI (Service/Arts/Light Industrial) Zoning District; and to amend open space, height limit, apparent mass reduction, lot coverage, exposure, PDR replacement, and development impact fee waiver and reduction provisions; affirming the Planning Department’s determination under the California Environmental Quality Act; making findings of consistency with the General Plan, and the eight priority policies of Planning Code, Section 101.1; and making findings of public necessity, convenience, and welfare under Planning Code, Section 302. File Number: April 06, 2021 Date Passed: 201175 February 08, 2021 Land Use and Transportation Committee - CONTINUED TO CALL OF THE CHAIR March 15, 2021 Land Use and Transportation Committee - AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE March 15, 2021 Land Use and Transportation Committee - RECOMMENDED AS AMENDED March 23, 2021 Board of Supervisors - PASSED ON FIRST READING Ayes: 11 - Chan, Haney, Mandelman, Mar, Melgar, Peskin, Preston, Ronen, Safai, Stefani and Walton April 06, 2021 Board of Supervisors - FINALLY PASSED Ayes: 11 - Chan, Haney, Mandelman, Mar, Melgar, Peskin, Preston, Ronen, Safai, Stefani and Walton Page 1 City and County of San Francisco Printed at 9:09 am on 4/7/21