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SUBSTITUTED FILE NO. 191249 2/25/2020 ORDINA1\JCE NO. [Planning Code - 100% Affordable Housing and Educator Housing Streamlining Program] Ordinance amending the Planning Code to require that in Educator Housing projects at least 10% of residential units have three or more bedrooms; affirming the Planning Department's determination under the California Environmental Quality Act; making findings that the Ordinance furthers the purpose of Planning Code, Section 206.9; 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 Code text are in single-underline italics Times New Roman font. Deletions to Code text are in strikethrough italics Times ]'k-w 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. 191016 and is incorporated herein by reference. The Board affirms this determination. (b) On November 21, 2019, the Planning Commission, in Resolution No. 20570, 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 Supervisor Yee BOARD OF SUPERVISORS Page 1 137-20 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. 191016, and is incorporated herein by reference. (c) Pursuant to Planning Code Section 302, the Board finds that this ordinance will serve the public necessity, convenience, and welfare for the reasons set forth in Planning Commission Resolution No. 20570 and the Board incorporates such reasons herein by reference. A copy of Planning Commission Resolution No. 20570 is on file with the Clerk of the Board of Supervisors in File No. 191016. (d) The Board of Supervisors finds that the amendments of Planning Code Section 206.9 contained in this ordinance further the purpose of that Section because it facilitates the 1 O construction of units of a size appropriate for families by requiring a certain number of units in Educator Housing Projects to include 3 bedroom units. Section 2. Article 2 of the Planning Code is hereby amended by revising Section 206.9 to read as follows: SECTION 206.9. 100% AFFORDABLE HOUSING AND EDUCATOR HOUSING STREAMLINING PROGRAM. * * * * * (b) Definitions. The definitions of Section 102 and the definitions in Section 401 for "Area Median Income" or "AMI," "Housing Project," and "Life of the Project," shall generally apply to Section 206.9. The following definitions shall also apply, and shall prevail if there is a conflict with other sections of the Planning Code, including Section 206.2. (1) "100% Affordable Housing." Residential Units that are deed-restricted for 55 years or the Life of the Project, whichever is longer and consistent with any applicable tax credit regulatory requirements, to be affordable to Very-Low, Low, or Moderate income households with an income up to 120% of the unadjusted area median family income (AMI) Supervisor Yee BOARD OF SUPERVISORS Page 2 for the HUD Metro Fair Market Rent Area (HMFA) that contains San Francisco, as published annually by MOHCD. (2) "100% Affordable Housing Project." A project for the development of Residential Units all of which are 100% Affordable Housing, up to a maximum overall average of 80% AMI across all Residential Units in the project. A 100% Affordable Housing Project 6. may also include principally permitted non-residential uses on the ground floor, and non- residential uses that are accessory to and supportive of the affordable housing. Notwithstanding the foregoing, the maximum affordable rent or sales price for a Residential Unit in a 100% Affordable Housing Project may be no higher than 20% below median market 1 O rents or sales prices for that unit size in the neighborhood in which the project is located, which neighborhood shall be defined in accordance with the American Community Survey Neighborhood Profile Boundaries Map. MOHCD shall determine the allowable rents and sales prices, and the eligible households for such units accordingly. (3) "Educator Housing Project." A project for the development of deed- restricted Residential Units all of which are restricted for the Life of the Project or 55 years, whichever is longer and consistent with any applicable tax credit regulatory requirements, to occupancy by at least one employee of the San Francisco Unified School District ("SFUSD") or San Francisco Community College District ("SFCCD"), as verified by the Planning Department or MOHCD. At least four-fifths of the units in an Educator Housing Project must be deed restricted for the Life of the Project or 55 years, whichever is longer and consistent with any applicable tax credit regulatory requirements to be affordable to households with an income from 30% to 140% of the unadjusted area median family income (AMI), with an overall average of 100% AMI across all such units. Up to one-fifth of the units may be deed restricted up to a maximum 160% AMI for the HUD Metro Fair Market Rent Area (HMFA) that contains San Francisco, as published annually by MOHCD. An Educator Housing Project is also Supervisor Yee BOARD OF SUPERVISORS Page 3 allowed to be a mixed-use development project with a maximum 20% of the gross building square footage designated for non-residential neighborhood-serving uses. (A) No units in an Educator Housing Project shall be smaller than the minimum unit sizes set forth by the California Tax Credit Allocation Committee as of May 16, 2017, or smaller than 300 square feet for a studio. (B) Any units in an Educator Housing Project with a rental rate set above 120% of Area Median Income shall have a minimum occupancy of two persons. (C) Notwithstanding any other provision of this Code, an Educator Housing Project with a Development Application filed after January 14, 2020, shall include a minimum of 50% of the total units as 2-bedroom units or larger, with a niinimum ofl 0% of the total units as 3-bedroom units or larger. All references in this Section 206.9 to other sections of the Planning Code shall refer to those other sections as they may be amended from time to time after the effective date of the initiative measure enacting this Section 206.9. * * * * 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 Supervisor Yee BOARD OF SUPERVISORS Page 4 additions, and Board amendment deletions in accordance with the "Note" that appears under the official title of the ordinance. Section 5. Supermajority Vote Requirement. Under Planning Code Section 206.9(h) the City may enact this ordinance only if the Board approves the ordinance by at least a two- thirds vote of all its members. APPROVED AS TO FORM: DENNIS J. HERRERA, City Attorney By: AUDREY WIL41AMS PEARSON Deputy City Attorney n:\legana\as2020\2000347\01430359.docx Supervisor Yee BOARD OF SUPERVISORS Page 5 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 that in Educator Housing projects at least 10% of residential units have three or more bedrooms; affirming the Planning Department’s determination under the California Environmental Quality Act; making findings that the Ordinance furthers the purpose of Planning Code, Section 206.9; 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: August 18, 2020 Date Passed: 191249 December 10, 2019 Board of Supervisors - RE-REFERRED Ayes: 11 - Brown, Fewer, Haney, Mandelman, Mar, Peskin, Ronen, Safai, Stefani, Walton and Yee August 10, 2020 Land Use and Transportation Committee - RECOMMENDED AS COMMITTEE REPORT August 11, 2020 Board of Supervisors - PASSED ON FIRST READING Ayes: 11 - Fewer, Haney, Mandelman, Mar, Peskin, Preston, Ronen, Safai, Stefani, Walton and Yee August 18, 2020 Board of Supervisors - FINALLY PASSED Ayes: 10 - Fewer, Haney, Mandelman, Mar, Peskin, Preston, Ronen, Stefani, Walton and Yee Excused: 1 - Safai Page 1 City and County of San Francisco Printed at 2:33 pm on 8/19/20