o0070-19

AMENDED IN BOARD FILE NO. 181154 4/2/2019 ORDINANCE NO. 70-19 [Planning Code- lnclusionary Housing Fee] Ordinance amending the Planning Code to require all projects using the State Density Bonus law, regardless of environmental evaluation application date, to pay the inclusionary fee on any additional units or square footage allowed by the state law; 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 convenience, necessity, and welfare under Planning Code, Section 302. f'JOTE: Unchanged Code text and uncodified text are in plain /\rial font. Additions to Codes are in single-underline italics Times New Roman font. Deletions to Codes are in striketlzrough italics Times I'le'rv 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. Environmental and Land Use Findings. (a) The Planning Department has determined that the actions contemplated in this 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. 181154 and is incorporated herein by reference. The Board affirms this determination. (b) On , the Planning Commission, in Resolution No. , adopted findings that the actions contemplated in this ordinance are consistent, on balance, vvith the City's General Plan and eight priority policies of Planning Code Section 1 01.1. The Board Supervisor Peskin BOARD OF SUPERVISORS Page 1 adopts those findings as its own. /\ copy of said Resolution is on file with tho Clerk of tho Board of Supervisors in File No. , and is incorporated heroin by reference. (c) Pursuant to Planning Code Section 302, tho Board finds that tho actions contemplated in this ordinance will servo tho public necessity, convenience, and \Nolfaro for tho reasons sot forth in Planning Commission Resolution No. and tho Board incorporates such reasons heroin by reference. A copy of tho Planning Commission Resolution No. is on file with tho Clerk of tho Board of Supervisors in File wNttco ·'""""=======- (b) Tho Board finds that tho actions contemplated in this ordinance are consistent. on balance, with tho eight priority policies of Planning Code Section 101.1, as follows: 1. That existing neighborhood-serving retail uses be preserved and be enhanced and futuro opportunities for resident employment in and ownership of such businesses enhanced. Tho proposed Ordinance would not have a negative effect on neighborhood serving retail uses and will not have a negative effect on opportunities for resident employment in and ownership of neighborhood-serving retail. 2. That existing housing and neighborhood character be conserved and protected in order to preserve tho cultural and economic diversity of our neighborhoods. Tho proposed Ordinance would not have a negative effect on housing or neighborhood character. 3. That tho City's supply of affordable housing be preserved and enhanced. Tho proposed Ordinance would not have an adverso effect on tho City's supply of affordable housing. Tho proposed Ordinance would increase the supply of affordable housing by applying tho Affordable Housing Foe. supported by tho 2016 Residential Affordable Housing Nexus Analysis. to the entirety of a residential housing project regardless of development application date. Supervisor Peskin BOARD OF SUPERVISORS Page 2 4. That commuter traffic not impede MUNI transit service or overburden our streets or neighborhood parking. The proposed Ordinance would not result in commuter traffic impeding MUNI transit service or overburdening the streets or neighborhood parking. 5. That a diverse economic base be maintained by protecting our industrial and service sectors from displacement due to commercial office development. and that future opportunities for resident employment and ownership in these sectors be enhanced. The proposed Ordinance would not cause displacement of the industrial or service sectors due to office development. and future opportunities for resident employment or ownership in these sectors would not be impaired. 6. That the City achieve the greatest possible preparedness to protect against injury and loss of life in an earthquake. The proposed Ordinance would not have an adverse effect on City's preparedness against injury and loss of life in an earthquake. 7. That the landmarks and historic buildings be preserved. The proposed Ordinance would not have an adverse effect on the City's Landmarks and historic buildings. 8. That our parks and open space and their access to sunlight and vistas be protected from development. The proposed Ordinance would not have an adverse effect on the City's parks and open space and their access to sunlight and vistas. (c) The Board finds that the actions contemplated in this ordinance are consistent. on balance. with the City's General Plan. as follows: Housing Element Objective 1. Identify and Make available for development adequate sites to meet the City's Housing needs. especially permanently affordable. Supervisor Peskin BOARD OF SUPERVISORS Page 3 Policy 1. Plan for the full range of housing needs in the City and County of San Francisco. especially affordable housing. Policy 1.9. Require new commercial developments and higher educational institutions to meet the housing demand they generate. particularly the need for affordable housing for lower income workers and students. This ordinance furthers the potential for creation of permanently affordable housing in San Francisco and facilitates an increase in the number of affordable housing units that could be built in San Francisco by applying the Affordable Housing Fee to the entirety of a residential housing project regardless of development application date. The lnclusionary Housing Ordinance. supported by the 2016 Residential Affordable Housing Nexus Analysis, assures that market-rate residential development projects adequately mitigate impacts to the availability and affordability of housing in San Francisco. Policy 3.3. Maintain balance in affordability of existing housing stock by supporting affordable moderate ownership opportunities. The ordinance would support affordable moderate ownership opportunities by applying the Affordable Housing Fee to the entirety of a residential housing project regardless of development application date, thereby increasing the ability of the City to support moderate income housing opportunities and down payment assistance programs. The lnclusionary Housing Ordinance, supported by the 2016 Residential Affordable Housing Nexus Analysis, assures that market-rate residential development projects adequately mitigate impacts to the availability and affordability of housing in San Francisco. Fees are deposited into the Citywide Affordable Housing Fund, which MOHCD uses to increase the supply of affordable housing and provide assistance to low- and moderate-income homebuyers. Objective 4. Foster a Housing Stock that meets the needs of all residents across lifecycles. Supervisor Peskin BOARD OF SUPERVISORS Page 4 This ordinance would apply the Affordable Housing Fee to the entirety of a residential housing project regardless of development application date. thereby allowing the Mayor's Office of Housing and Community Development to support and fund housing projects for all residents. including projects with family housing. and senior housing. The lnclusionary Housing Ordinance. supported by the 2016 Residential Affordable Housing Nexus Analysis. assures that market-rate residential development projects adequately mitigate impacts to the availability and affordability of housing in San Francisco. Policy 4.5. Ensure that new permanently affordable housing is located in all of the City's neighborhoods. and encourage integrated neighborhoods with a diversity of unit types 1 0 provided at a range of income levels. The ordinance would apply the full Affordable Housing Fee to the entirety of a residential housing project regardless of development application date, assuring that market- rate residential development projects adequately mitigate all impacts on the availability and affordability of housing in San Francisco. The fee. deposited into the Citywide Affordable Housing Fund. supports and funds housing projects in all neighborhoods at very low-. low-. and moderate-income levels. Obiective 7. Secure funding and resources for permanently affordable housing. including innovative programs that are not solely reliant on traditional mechanisms or capital. Policy 7.1. Expand the financial resources available for permanently affordable housing. especially permanent sources. The ordinance would apply the full Affordable Housing Fee to the entirety of a housing project regardless of development application date. thereby expanding the financial resources of MOHCD to facilitate and/or create permanently affordable housing. The lnclusionary Housing Ordinance. supported by the 2016 Residential Affordable Housing Nexus Analysis. Supervisor Peskin BOARD OF SUPERVISORS Page 5 assures that all market-rate residential development projects adequately mitigate impacts on the availability and affordability of housing in San Francisco. Policy 7.5. Encourage the production of affordable housing through process and zoning accommodations. and prioritize affordable housing in the review and approval process. This ordinance would support the production of affordable housing through payment of the lnclusionarv Affordable Housing Fee into the Citywide Affordable Housing Fund. while allowing for the zoning accommodations and additional market rate units allowed by the State Density Bonus law. Policy 8.1. Support the protection and management of permanently affordable housing. This ordinance would support production and management of affordable housing by increasing the number of projects subject to Affordable Housing Fee. which allows MOHCD to produce and manage affordable housing. The lnclusionary Housing Ordinance. supported by the 2016 Residential Affordable Housing Nexus Analysis. assures that market-rate residential development projects adequately mitigate impacts on the availability and affordability of housing in San Francisco. (d) Planning Code Section 302 Findings. The Board finds from the facts presented that the public necessity. convenience and general welfare require the proposed amendments to the Planning Code as set forth in Section 302. Section 2. Article 4 of the Planning Code is hereby amended by revising Section 415.5 and 415.6, to read as follows: II II II Supervisor Peskin BOARD OF SUPERVISORS Page 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 subject to this Program shall be required to pay an Affordable Housing Fee subject to the following requirements: * * * * (b) Amount of Fee. The amount of the fee that may be paid by the project sponsor subject to this Program shall be determined by MOHCD utilizing the following factors: * * * * (6) The fee shall be imposed on any additional units or square footage authorized and developed under California Government Code Sections 65915 et seq. +hi& subsection 415. 5(b) (6) shall not apply to development projects that have submitted a complete Environmental Evaluation application on or bqf0re January 1, 2016. * * * * (g) Alternatives to Payment of Affordable Housing Fee. (1) Eligibility: A project sponsor must pay the Affordable Housing Fee unless it chooses to meet the requirements of the Program though an Alternative provided in this subsection (g). 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. Supervisor Peskin BOARD OF SUPERVISORS Page (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. Qualifying project sponsors may elect to fund buildings as set forth in Section 415.7-1. (D) Alternative #4: 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. Development Projects that have submitted a complete En~vironmental Evahtation application cifter January 12, 2016 that are providing on-site units under Section 415.6 and that qualify for and receive additional density under California Government Code Section§: 65915 et seq. shall use Alternative #4 to pay the Affordable Housing Fee on any additional units or square footage authorized under Section 65915. * * * * SEC. 415.6. ON-SITE AFFORDABLE HOUSING ALTERNATIVE. If a project sponsor elects to provide on-site units pursuant to Section 415.5(g), the development project shall meet the following requirements: * * * * (d) Unless othenvise specified in this Section 415.1et seq., in In the event the project sponsor is eligible for and elects to receive additional density under California Government Code Section 65915, the Sponsor shall pay the Affordable Housing Fee on any additional Supervisor Peskin BOARD OF SUPERVISORS Page units or square footage authorized under that section in accordance with the provisions in Section 415.5(g)(1 )(D). * * * * 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 Jl. HERRERA, Attorney ~~ By: n:\legana\as2018\1900244\01347797.docx Supervisor Peskin BOARD OF SUPERVISORS Page 9 City and County of San Francisco Tails Ordinance City Hall I Dr. Carlton B. Goodlett Place San Francisco, CA 94102-4689 FileNumber: 181154 Date Passed: April 09, 2019 Ordinance amending the Planning Code to require all projects using the State Density Bonus law, regardless of environmental evaluation application date, to pay the inclusionary fee on any additional units or square footage allowed by the state law; 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 convenience, necessity, and welfare under Planning Code, Section 302. March 11, 2019 Land Use and Transportation Committee - RECOMMENDED March 19, 2019 Board of Supervisors- CONTINUED ON FIRST READING Ayes: 11 - Brown, Fewer, Haney, Mandelman, Mar, Peskin, Ronen, Safai, Stefani, Walton and Yee April 02, 2019 Board of Supervisors -AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE Ayes: 11 - Brown, Fewer, Haney, Mandelman, Mar, Peskin, Ronen, Safai, Stefani, Walton and Yee April 02, 2019 Board of Supervisors - PASSED ON FIRST READING AS AMENDED Ayes: 11 - Brown, Fewer, Haney, Mandelman, Mar, Peskin, Ronen, Safai, Stefani, Walton and Yee April 09, 2019 Board of Supervisors - FINALLY PASSED City and County of San Francisco Ayes: 11 -Brown, Fewer, Haney, Mandelman, Mar, Peskin, Ronen, Safai, Stefani, Walton and Yee Page 1 Printed at 9:30am on 4110119 FileNo.181154 London N. Breed Mayor City and County of San Francisco Page2 I hereby certify that the foregoing Ordinance was FINALLY PASSED on 4/9/2019 by the Board of Supervisors of the City and County of San Francisco. Date Approved Printed at 9:30am on 4/10/19