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AMENDED IN COMMITTEE FILE NO. 200142 5/4/2020 ORDINANCE NO. Supervisors Mandelman; Peskin, Fewer, Yee BOARD OF SUPERVISORS Page 1 [Planning Code - Conditional Use Authorizations for Demonstrably Unaffordable Housing] Ordinance amending the Planning Code to require Conditional Use authorization for applications to demolish a Single-Family Residential Building on a site zoned as RH-1 or RH-1(D), when the building is demonstrably not affordable or financially accessible housing; 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 adopting findings of public convenience, necessity, 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. 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. 200142 and is incorporated herein by reference. The Board affirms this determination. (b) On April 23, 2020, the Planning Commission, in Resolution No. 20689, 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 Board 81-20 Supervisors Mandelman; Peskin, Fewer, Yee BOARD OF SUPERVISORS Page 2 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. 200142, and is incorporated herein by reference. (c) Pursuant to Planning Code Section 302, this Board finds that this Planning Code amendment will serve the public necessity, convenience, and welfare for the reasons set forth in Planning Commission Resolution No. 20689, and the Board incorporates such reasons herein by reference. A copy of said Resolution is on file with the Board of Supervisors in File No. 200142. Section 2. Article 3 of the Planning Code is hereby amended by revising Section 317 to read as follows: SEC. 317. LOSS OF RESIDENTIAL AND UNAUTHORIZED UNITS THROUGH DEMOLITION, MERGER, AND CONVERSION. * * * * (c) Applicability; Exemptions. (1) Any application for a permit that would result in the Removal of one or more Residential Units or Unauthorized Units is required to obtain Conditional Use authorization. For Unauthorized Units, this Conditional Use authorization will not be required for Removal if the Zoning Administrator has determined in writing that the unit cannot be legalized under any applicable provision of this Code. The application for a replacement building or alteration permit shall also be subject to Conditional Use requirements. * * * * (5) The Demolition of a Single-Family Residential Building that meets the requirements of Subsection (d)(3) below may be approved by the Department without requiring a Conditional Use authorization. Supervisors Mandelman; Peskin, Fewer, Yee BOARD OF SUPERVISORS Page 3 (5) The Demolition of a Single-Family Residential Building that meets the requirements of Subsection (d)(3) below may be approved by the Department without requiring a Conditional Use authorization. (6) Exception for Certain Permits Filed Before February 11, 2020. An application to demolish a Single-Family Residential Building on a site in a RH-1 or RH-1(D) District that is demonstrably not affordable or financially accessible housing, meaning housing that has a value greater than 80% than the combined land and structure values of single- family homes in San Francisco as determined by a credible appraisal made within six months of the application to demolish, is exempt from the Conditional Use authorization requirement of Subsection (c)(1), provided that a complete Development Application was submitted prior to February 11, 2020. (d) Demolition. * * * * (3) An application to demolish a Single-Family Residential Building on a site in a RH-1 or RH-1(D) District that is demonstrably not affordable or financially accessible housing is exempt from the Conditional Use authorization requirement of Subsection (c)(1). Specific numerical criteria for such analyses shall be adopted by the Planning Commission in the Code Implementation Document, in accordance with this Section 317, and shall be adjusted periodically by the Zoning Administrator based on established economic real estate and construction indicators. (A) The Planning Commission shall determine a level of affordability or financial accessibility, such that Single-Family Residential Buildings on sites in RH-1 and RH-1(D) Districts that are demonstrably not affordable or financially accessible, that is, housing that has a value greater than at least 80% of the combined land and structure values of single-family homes in San Francisco as determined by a credible appraisal, made within six months of the application to demolish, are not subject to a Conditional Use hearing. The demolition and replacement building Supervisors Mandelman; Peskin, Fewer, Yee BOARD OF SUPERVISORS Page 4 applications shall undergo notification as required by other sections of this Code. The Planning Commission, in the Code Implementation Document, may increase the numerical criterion in this Subsection by up to 10% of its value should it deem that adjustment is necessary to implement the intent of this Section 317, to conserve existing housing and preserve affordable housing. (B) The Planning Commission, in the Code Implementation Document, shall adopt criteria and procedures for determining the soundness of a structure proposed for demolition, where "soundness" is an economic measure of the feasibility of upgrading a residence that is deficient with respect to habitability and Housing Code requirements, due to its original construction. The "soundness factor" for a structure shall be the ratio of a construction upgrade cost (i.e., an estimate of the cost to repair specific habitability deficiencies) to the replacement cost (i.e., an estimate of the current cost of building a structure the same size as the existing building proposed for demolition), expressed as a percentage. A building is unsound if its soundness factor exceeds 50%. A Residential Building that is unsound may be approved for demolition without requiring a Conditional Use authorization. * * * * 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 Supervisors Mandelman; Peskin, Fewer, Yee BOARD OF SUPERVISORS Page 5 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/ Kristen A. Jensen KRISTEN A. JENSEN Deputy City Attorney n:\legana\as2020\2000166\01444086.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 require conditional use authorization for applications to demolish a single-family residential building on a site zoned as RH-1 (Residential, House District, One Family) or RH-1(D) (Residential, House District, One Family-Detached), when the building is demonstrably not affordable or financially accessible housing; 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 adopting findings of public convenience, necessity, and welfare under Planning Code, Section 302. File Number: May 19, 2020 Date Passed: 200142 May 04, 2020 Land Use and Transportation Committee - DUPLICATED May 04, 2020 Land Use and Transportation Committee - AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE May 04, 2020 Land Use and Transportation Committee - RECOMMENDED AS AMENDED May 12, 2020 Board of Supervisors - PASSED ON FIRST READING Ayes: 11 - Fewer, Haney, Mandelman, Mar, Peskin, Preston, Ronen, Safai, Stefani, Walton and Yee May 19, 2020 Board of Supervisors - FINALLY PASSED Ayes: 11 - Fewer, Haney, Mandelman, Mar, Peskin, Preston, Ronen, Safai, Stefani, Walton and Yee Page 1 City and County of San Francisco Printed at 9:31 am on 5/20/20 File No. 200142 London N. Breed Mayor City and Co1111ty of San Francisco Page2 I hereby certify that the foregoing Ordinance was FINALLY PASSED on 5/19/2020 by the Board of Supervisors of the City and County of San Francisco. Angela Calvillo Clerk of the Board Date Approved Printed at 9:31 am 0 11 5120120