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FILE NO. 161351 AMENDED IN BOARD 7/11/2017 ORDINANCE NO. 158-17 [Planning Code - lnclusionary Affordable Housing Fee and Dwelling Unit Mix Requirements] Ordinance amending the Planning Code to revise the amount of the lnclusionary Affordable Housing Fee and the On-Site and Off-Site Affordable Housing Alternatives and other lnclusionary Housing requirements; adding reporting requirements for density bonus projeots to require minimum dwelling unit mix in most residential districts; affirming the Planning Department's determination under the California Environmental Quality Act; making findings of public necessity. convenience. and welfare under Planning Code, Section 302; and making findings of consistency with the General Plan, and the eight priority policies of Planning Code, Section 101.1. NOTE: Unchanged Code text and uncodified text are in plain Arial font. Additions to Codes are in single-underline italics Times New Roman (Ont. Deletions to Codes are in strikethrougli ittdics Times New Ronum 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. General 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. 161351 and is incorporated herein by reference. The Board affirms this determination. (b) On April 27, 2017, the Planning Commission, in Resolution No. 19903, adopted findings that the actions contemplated in this ordinance are consistent, on balance, with the Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 1 City's General Plan and eight priority policies of Planning Code Section 101.1. The 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. 161351, 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. 19903 and the Board incorporates such reasons herein by reference. A copy of Planning Commission Resolution No. 19903 is on file with the Board of Supervisors in File No. 161351. 1 O Section 2. Findings About lnclusionary Affordable Housing Requirements. (a) The purpose of this ordinance is to adopt inclusionary or affordable housing obligations following voter approval of Proposition Cat the June 7, 2016 election to revise the City Charter's inclusionary affordable housing requirements, which won overwhelming support 14 , with 67.9% of the vote, and to update the provisions of the Planning Code that became effective after the Charter Amendment passed. consistent with the process set forth in Section 415.10 of the Planning Code, and elaborated upon further outlined in Ordinance No. 76-16, which required that the City study how to set inclusionarv housing obligations in San Francisco at the maximum economically feasible amount in market rate housing development to create affordable housing. The inclusionarv affordable housing obligations set forth in this ordinance will supersede and replace any previous requirements. (b) The San Francisco residential real estate market is one of the most expensive in the United States. In February 2016, the California Association of Realtors reported that the median priced home in San Francisco was $1,437,500. This price is 222% higher than the State of California median ($446,460), and 312% higher than the national average ($348,900). While the national homeownership rate is approximately 63.8%, only Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 2 approximately 37% of San Franciscans own their own home. The majority of market-rate homes for sale in San Francisco are priced out of the reach of low~ and moderate~-income households. In 2015, the average rent was $3,524, which is affordable to households earning over $126,864. (c) The Board of Supervisors adopted San Francisco's General Plan Housing Element in March 2015, and the California Housing and Community Development Department certified it on May 29, 2015. The Housing Element states that San Francisco's share of the regional housing need for years 2015 through 2022 includes 10,873 housing units for very-low~ and low-income households and 5,460 units for moderate/middle-income households, and a total 1 O production of 28,870 net new units, with almost 60% to be affordable for very-low, low- and moderate/middle-income San Franciscans. (d) In November 2016, the City provided the updated Residential Affordable Housing Nexus Analysis that confirms and quantifies the impact of new market rate housing development on the demand for affordable housing for households earning up to 120% of area median income. The study demonstrates a need of 31.8% affordable housing for rental housing, and 37.6% affordable housing for ownership housing, and a need of 24.1 % onsite affordable housing for rental housing, and 27.3% onsite affordable housing for ownership housing for households with incomes up to 120% of Area Median Income. When quantifying affordable housing impacts on households making up to 150% of area median income. the study demonstrates a need of 34.9% affordable housing for rental housing. and a need of 41.3% affordable housing for ownership housing. (e) In February 2017, the Office of the Controller presented a study of the economic feasibility of increased inclusionary housing requirements, entitled "lnclusionary Housing Working Group: Final Report." The Controller's Office, supported by a contracted consulting team of three firms and advised by a Technical Advisory Committee (TAC) with Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page representatives appointed by the Mayor and Board of SupervisorsController, developed several policy recommendations, including: (1) that the City should impose different inclusionary housing requirements on rental and for-sale (condominium) properties; (2) that the City ee-ukf.can set the initial onsite requirements at a maximum feasible amount of 18% for rental projects and 20% for ownership projects; (3) that the City may adoptshould commit to a 15-year schedule of increases to the inclusionary housing rate, at a rate of 0.5% increase each year; and (4) that the City should revise the schedule of lnclusionary housing fees to provide a more equivalent cost for developers as the on-site requirements. The Controller's Office recommended updating the fee percentage to 23% and 28% to create an equivalency 1 O to the recommended 18% and 20% on-site requirements, with the City conducting the specific calculation of the fee itself. (f) The Controller's Report further acknowledged that if either the state density bonus or a local bonus program were widely implemented in San Francisco, the likely result would be higher residual land values in many locations. which would support a higher inclusionary requirement. application of the state provided density bonus could make a di:ff-Orence in the financial feasibility of housing development projects. (g) The City's lnclusionarv Affordable Housing Program is intended to help address the demonstrated need for affordable housing in the City through the application of the City's land i use controls (h) As rents and sales prices outpace what is affordable to the typical San Francisco family, the City faces a continuing shortage of affordable housing for not only verv low- and low-income residents, but also for moderate. middle and upper-middle income families. (i) In order to maximize the benefit of state and federal funds supporting affordable housing construction, which are typically restricted to verv low- and low-income households, and to maximize the amount of affordable units constructed, the majority of the City's new Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page affordable housing production is likely to continue to focus on households at or below 60% of area median income. m The Board of Supervisors recognizes that this lnclusionarv Housing Program is only one small part of the City's overall strategy for providing affordable housing to verv low-. low-. moderate-. and middle-income households. The City will continue to acquire. rehabilitate and produce units through the Mayor's Office of Housing and Community Development. provide rental subsidies. and provide homeownership assistance to continue to expand its reach to households in need of affordable housing. (k) The City will also continue to pursue innovative solutions to provide and stabilize 1 O affordable housing in San Francisco. including programs such as HOME-SF that incentivize projects that set aside 30% of on-site units as permanently affordable. and 40% of units as family-friendly multiple bedroom units. QLln an effort to support a mix of both ownership project and rental projects, the City is providing a direct financial contribution to project sponsors who agree to rent units for a period of 30 years. The direct financial contribution is in the form of a reduction in the applicable affordable housing requirement. Section 3. The Planning Code is hereby amended by revising Sections 415.2, 415.3, 415.5, 415.6, a-00 415.7, and 415.10, and adding a new Section 415.11, 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 'Nhose total household income does not exceed 55% is 40% to 80% of Area Median Income for purposes of renting an affordable unit, or 80% to 100% of Area Median Income for purposes of purchasing an affordable unit, and "moderate Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 5 income" and "middle income" households shall mean households \Nhose total household income does not exceed I 00% is 80% to 120% of Area Median Income for purposes of renting an affordable unit, or 120% 100% to 140% 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 may use Affordable Housing Fees to acquire sites and buildings consistent 'Nith the income parameters of the Programs, as periodically updated and administered by MOHCD. "Owned Unit" shall mean a dwelling unit that is a condominium. stock cooperative. community apartment or detached single family home. The owner or owners of an owned unit must occupy the unit as their primary residence. "Rental Housing Project" shall mean a housing project consisting solely of Rental Units, as defined in Section 401. which meets the following requirements: (1) The units shall be rental housing for not less than 30 years from the issuance of the certificate of occupancy pursuant to an agreement between the developer and the City. This agreement shall be in accordance with applicable State law governing rental housing. All such agreements entered into with the City must be reviewed and approved by the Planning Director and the City Attorney's Office. and may be executed by the Planning Director,· (2) The agreement shall be recorded against the property prior to issuance o[the certificate of occupancy. SEC. 415.3. APPLICATION. * * * * (b) Any development project that has submitted a complete Environmental Evaluation application prior to January 4, ~ 12, 2016 shall comply with the Affordable Housing Fee requirements, the on-site affordable housing requirements or the off-site affordable housing requirements, and all other provisions of Section 415.1 et seq., as applicable, in effect on Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page6 January 12, 2016. For development projects that have submitted a complete Environmental Evaluation application on or after January 1, 2013, the requirements set forth in Planning Code Sections 415.5, 415.6, and 415. 7 shall apply to certain development projects consisting of 25 dwelling units or more during a limited period of time as follows. (1) If a development project is eligible and elects to provide on-site affordable housing, the development project shall provide the following amounts of on-site affordable housing. All other requirements of Planning Code Sections 415.1=et seq. shall apply. (A) Any development project that has submitted a complete Environmental Evaluation application prior to January 1, 2014 shall provide affordable units in 1 O the amount of 13% of the number of units constructed on-site. (B) Any development project that has submitted a complete Environmental Evaluation application prior to January 1, 2015 shall provide affordable units in the amount of 13.5% of the number of units constructed on-site. (C) Any development project that has submitted a complete Environmental Evaluation application on or prior to January 12, 2016 shall provide affordable units in the amount of 14.5% of the number of units constructed on-site. (D) Any development project that submits an Environmental Evaluation application after January 12, 2016, shall comply with the requirements set forth in Planning Code Sections 415.5, 415.6 and 415.7, as applicable. (E) Notwithstanding the provisions set forth in subsections (b)(1)(A), (B) and (C) of this sSection 415.3, if a development project is located in a UMU Zoning District or in the South of Market Youth and Family Zoning District, and is eligible and elects to provide on-site units pursuant to Section 415.5(g), such development project shall comply with the on- site requirements applicable within such Zoning Districts, as they existed on January 12, 2016, plus the following additional amounts of on-site affordable units: (i) if the development Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page project has submitted a complete Environmental Evaluation application prior to January 1, 2014, the Project Sponsor shall provide additional affordable units in the amount of 1 % of the number of units constructed on-site; (ii) if the development project has submitted a complete Environmental Evaluation application prior to January 1, 2015, the Project Sponsor shall provide additional affordable units in the amount of 1.5% of the number of units constructed on-site; or (iii) if the development project has submitted a complete Environmental Evaluation application on or prior to January 12, 2016, the Project Sponsor shall provide additional affordable units in the amount of 2% of the number of units constructed on-site. (F) Any development project that has submitted a complete Environmental Evaluation application on or before January 12, 2016 and seeks to utilize a density bonus under State Law shall use its best efforts to provide on-site affordable units in the amount of 25% of the number of units constructed on-site and shall consult with the Planning Department about how to achieve this amount of inclusionary affordable housing. AnyprojectAn applicant seeking a density bonus under the provisions of State Law shall provide reasonable documentation to establish eligibility (Or a requested density bonus, incentives or concessions, and waivers or reductions of development standards. prepare a report analyzing how the concessions and incentives requested are necessary in order to provide tlw required on site efferdable housing. (2) If a development project pays the Affordable Housing Fee or is eligible and elects to provide off-site affordable housing, the development project shall provide the following fee amount or amounts of off-site affordable housing during the limited periods of time set forth below. All other requirements of Planning Code Sections 415.1=et seq. shall apply. Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page (A) Any development project that has submitted a complete Environmental Evaluation application prior to January 1, 2014, shall pay a fee or provide off- site housing in an amount equivalent to 25% of the number of units constructed on-site. (B) Any development project that has submitted a complete Environmental Evaluation application prior to January 1, 2015, shall pay a fee or provide off- site housing in an amount equivalent to 27.5% of the number of units constructed on-site. (C) Any development project that has submitted a complete Environmental Evaluation application on or prior to January 12, 2016 shall pay a fee or provide off-site housing in an amount equivalent to 30% of the number of units constructed on-site. (D) Any development project that submits an Environmental Evaluation application after January 12, 2016 shall comply with the requirements set forth in Sections 415.5, 415.6, and 415.7, as applicable. (E) Notwithstanding the provisions set forth in subsections (b)(2)(A), (B) and (C) of this Section 415.3, for development projects proposing buildings over 120 feet in height, as measured under the requirements set forth in the Planning Code, except for buildings up to 130 feet in height located both within a special use district and within a height and bulk district that allows a maximum building height of 130 feet, such development shall pay a fee or provide off-site housing in an amount equivalent to JJ-30% of the number of units constructed on-site. Any buildings up to 130 feet in height located both within a special use district and within a height and bulk district that allows a maximum building height of 130 feet shall comply with the provisions of subsections (b)(2)(A), (B) and (C) of this Section 415.3 during the limited periods of time set forth therein. (F) Notwithstanding the provisions set forth in subsections (b)(2)(A), (B) and (C) of this &Section 415.3, if a development project is located in a UMU Zoning District or Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page in the South of Market Youth and Family Zoning District, and pays the Affordable Housing Fee or is eligible and elects to provide off-site affordable housing pursuant to Section 415.5(g), or elects to comply with a land dedication alternative, such development project shall comply with the fee, off-site or land dedication requirements applicable within such Zoning Districts, as they existed on January 12, 2016, plus the following additional amounts for the Affordable Housing Fee or for land dedication or off-site affordable units: (i) if the development project has submitted a complete Environmental Evaluation application prior to January 1, 2014, the Project Sponsor shall pay an additional fee, or provide additional land dedication or off-site affordable units, in an amount equivalent to 5% of the number of units constructed on-site; (ii) 1 O if the development project has submitted a complete Environmental Evaluation application prior to January 1, 2015, the Project Sponsor shall pay an additional fee, or provide additional land dedication or off-site affordable units, in an amount equivalent to 7.5% of the number of units constructed on-site; or (iii) if the development project has submitted a complete Environmental Evaluation application on or prior to January 12, 2016, the Project Sponsor shall pay an additional fee, or provide additional land dedication or off-site affordable units, in an amount equivalent to 10% of the number of units constructed on-site. Notwithstanding the foregoing, a development project shall not pay a fee or provide off-site units in a total amount greater than the equivalent of ~30% of the number of units constructed on-site. (G) Any development project consisting of 25 dwelling units or more that has submitted a complete Environmental Evaluation application on or prior to January 12, 2016, and is eligible and elects to provide off-site affordable housing, may provide off-site affordable housing by acquiring an existing building to fulfill all or part of the requirements set forth in this Section 415.3 and in Section 415. 7 with an equivalent amount of units as specified in this Section 415.3(b )(2), as reviewed and approved by the Mayor's Office of Housing and Community Development and consistent with the parameters of its Small Sites Acquisition Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 1 and Rehabilitation Program, in conformance with the income limits for the Small Sites Program. * * * * (d) Notwithstanding the provisions set forth in Section 415.3(b). or the inclusionarv affordable housing requirements contained in Sections 415.5. 415.6. and 415.7. such requirements shall not apply to any project that has not submitted a complete Environmental Evaluation Application on or before Januarv 12. 2016, if the project is located within the Eastern Neighborhoods Mission Planning Area, the North of Market Residential Special Use District Subarea 1 or Subarea 2, or the SOMA Neighborhood Commercial Transit District, because inclusionarv affordable housing levels for those areas will be addressed in forthcoming area plan processes or an equivalent community planning process. Until such planning processes are complete and new inclusionarv housing requirements for projects in those areas are adopted, projects shall (1) pay a fee or provide off-site housing in an amount equivalent to 30% or (2) provide affordable units in the amount of 25% of the number of Rental Units constructed on-site or 27% of the number of Owned Units constructed on-site. For Rental Units, 15% of the on-site affordable units shall be affordable to low-income households, 5% shall be affordable to moderate-income households and 5% shall be affordable to middle-income households. For Owned Units, 15% of the on-site affordable units shall be affordable to low-income households, 6% shall be affordable to moderate- income households and 6% shall be affordable to middle-income households. (€1-~) The City may continue to enter into development agreements or other similar binding agreements for projects that provide inclusionary affordable housing at levels that be different from the levels set forth in Sections 415.1=et seq. (f) Section 415.1 et seq., the lnclusionary Housing Program, shall not apply to: Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 11 (1) That portion of a housing project located on property owned by the United States or any of its agencies or leased by the United States or any of its agencies, for a period in excess of 50 years, with the exception of such property not used exclusively for a governmental purpose; (2) That portion of a housing project located on property owned by the State of California or any of its agencies, with the exception of such property not used exclusively for a governmental or educational purpose; or (3) That portion of a housing project located on property under the jurisdiction the San Francisco Office of Community Investment and Infrastructure or the Port of San 1 O Francisco where the application of Section 415.1 et seq. is prohibited by California or local law. (4) A 100% affordable housing project in which rents are controlled or regulated by any government unit, agency or authority, excepting those unsubsidized and/or unassisted units which are insured by the United States Department of Housing and Urban Development. The Mayor's Office of Housing and Community Development must represent to the Planning Commission or Planning Department that the project meets this requirement. * * * * (5) A Student Housing project that meets all of the following criteria: * * * * (C) The Mayor's Office of Housing and Community Development (MOHCD) is authorized to monitor this program. MOHCD shall develop a monitoring form and annual monitoring fee to be paid by the owner of the real property or the Post-Secondary Educational Institution or Religious Institutions, as defined in Section 102 of this Code. The owner of the real property and each Post-Secondary Educational Institution or Institutions Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page shall agree to submit annual documentation to MOHCD and the Planning Department, on or before December 31 of each year, #lat which addresses the following: * * * * (iii) The owner of the real property records a Notice of Special Restrictions (NSR) against fee title to the real property on which the Student Housing is located that states the following: * * * * d. The Post-Secondary Educational Institution is required to report annually as required in S~ubsection (ef)(5)(C) above; * * * * SEC. 415.5. AFFORDABLE HOUSING FEE. * * * * (b) Amount of Fee. The amount of the fee whieh that may be paid by the project sponsor subject to this Program shall be determined by MOHCD utilizing the following factors: (1) The number of units equivalent to the applicable off-site percentage of the number of units in the principal housing project. (A) For housing development projects consisting of 10 dwelling units or more, but less than 25 dwelling units, t-The applicable percentage shall be 20% for hol:fSing development projects consisting a.fl 0 dwelling units or more, but less than 25 dwelling units. {lll The applicable percentage for For development projects consisting of 25 dwelling units or more, the applicable percentage shall be 33% ifsuch units are Owned Units. (C) For development projects consisting of 25 dwelling units or more, the applicable percentage shall be 30% if such units are Rental Units in a Rental Housing Project. In the event one or more of the Rental Units in the principal Rental Housing Project become ownership units, Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 1 for each Rental Unit or for the principal Rental Housing Project in its entirety, as applicable, the Project Sponsor shall pay to either (A) reimburse the City the difference in the proportional amount of the applicable inclusionary affordable housing fee so that the total fee lnclusionary Affordable Housing Fee. which would be equivalent to the current lnclusionary Affordable Housing Fee requirement tor Owned Units, which is 33% ofQL(§) provide additional on-site or off-site affordable units equivalent to the current inclusionary requirements for Owned Units. apportioned among the required number oftotal-units at various income levels in compliance with the principal project, or such current percentage that has been adjusted annually by MOHCDrequirements in effect at the time of conversion. 1 0 For the purposes of this Section 415. 5, the City shall calculate the fee using the directfractional result of the total nwnber of units multiplied by the applicable percentage, rather than rounding up the resultingfigure as required by Section 415. 6(a). (2) The affordability gap"' shall be calculated using data on lhc-MOHCD 's cost of construction of affordable residential of construction of to construct affordable residential housing= No later than January 31, 2018, the Controller. with the support of consultants as necessary, and in consultation with the lnclusionary Housing Technical Advisory Committee <TAC) established in Planning Code Section 415.10, shall conduct a study to develop an appropriate methodology for calculating, indexing, and applying the appropriate amount of the lnclusionary Affordable Housing Fee. To support the Controller's study, and annually thereafter. MOHCD shall provide the following documentation: (1) schedules of sources and uses of funds and independent auditor's reports ("Cost Certifications") for all MOHCD-funded developments completed within three years of the date of reporting to the Controller: and, (2) for any MOHCD-funded development that commenced construction within three years of the reporting date to the Controller but for which no Cost Certification is yet complete, the sources and uses of funds approved by MOHCD and the construction lender as of the date of the Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page development's construction loan closing. Cost Certifications completed in years prior to the year of reporting to the Controller may be increased or decreased by the applicable annual Construction Cost Index percentage(s) for residential construction for San Francisco reported in the Engineering News Record. MOHCD. together with the Controller and TAC. shall evaluate the cost-to-construct data. including actual and appraised land costs. state and/or federal public subsidies available to MOHCD-funded projects. and determine MOHCD's average costs. Following completion of this study, the Board of Supervisors, in its sole and absolute discretion, and within the legal allowances of the Residential Nexus Analysis, will review the analyses, methodology, fee application, and the proposed fee schedule: and may 1 O consider adopting legislation to revise the lnclusionarv Affordable Housing fees. The method of calculating, indexing, and applying the fee shall be published in the Procedures Manual. fef three different building heights, as applicable: (A) up to 55 feet; (B) above 55 feet up to 85 feet; and (C) above 85 feet and the Afaximum Purchase Price for the equh'alent unit size. The fee shall be calculated individually for these three different building types and tvvo types of tenure, mvnership and rental, rather than a single fee calculation uniformly applied to all types of projects. The Department and MOHCD shall calculate the affordability gap \Nithin 6 months of the effective date of this ordinance and shall update the fee methodology and technical report everv twe three years, with analysis from the Technical Advisorv Committee, from time to time as they deem appropriate in order to ensure that the affordability gap remains current and to reflect current costs of constructionconsistent with the requirements set forth below in Section 415.5(b)(3) and Section 415.10. (3) Annual Fee Update. For all housing developments, no No later than January 1 of each year, MOH CD shall adjust the fee based on adjustments in the G#y:s cost of constructing affordable housing-:, including development and land acquisition costs. MOHCD shall provide the Planning Department, DBI, and the Controller with current information on the adjustment Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 15 to the fee so that it can be included in the Planning Department's and DBl's website notice of the fee adjustments and the Controller's Citywide Development Fee and Development Impact Requirements Report described in Section 409(a). MOHCD is authorized to shall develop an appropriate methodology for calculating and indexing the fee, in consultation \•.iith the Technical Advisory Committee consistent with the procedures set forth in Section 415.10, based on adjustments in the cost of constructing housingbased on adjustrnents in the cost o.f constructing housing and the }.J:aximum Purchase Price for the equival:ent unit siz;e. The method of indexing shall be published in the Procedures Manual and shall be provided to the Board of Supervisors v.ihen it is updated. 1 O (4) Specific Geographic Areas. For any housing development that is located in an area with a specific affordable housing requirement set forth in a Special Use District, or in any other section of the Code such as Section 419, the higher affordable housing requirement shall apply. QL The applicable amount of the inclusionarv housing fee shall be determined based upon the date that the project sponsor has submitted a complete Environmental Evaluation application. In the event the project sponsor does not procure a building permit or site permit for construction of the principal project within VNO years (2430 monthst of the project's approval, the development project shall comply with the inclusionary affordable housing requirements applicable thereafter at the time when the project sponsor does proceed with pursuing a building permit. Such time period shall be extended in the event of any litigation seeking to invalidate the City's approval of such project, for the duration ofthe litigation. (6) The fee shall be imposed on any additional units or square footage authorized and developed under California Government Code Sections 65915 et seq. This subsection 415.5(b)(6) shall not apply to development projects that have submitted a complete Environmental Evaluation application on or before Januarv 1. 2016. Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page (7) If the principal project has resulted in demolition. conversion. or removal of affordable housing units that are subject to a recorded covenant. ordinance. or law that restricts rents to levels affordable to persons and families of moderate-. low- or verv low- income. or housing that is subject to any form of rent or price control through a public entity's valid exercise of its police power and determined to be affordable housing. the Commission or the Department shall require that the project sponsor pay the lnclusionarv Affordable Housing Fee equivalent for the number of affordable units removed. in addition to compliance with the inclusionary requirements set forth in this Section. (c) Notice to Development Fee Collection Unit of Amount Owed. Prior to issuance 1 O of the first construction document for a development project subject to Section 415.5, MGM the Planning Department shall notify the Development Fee Collection Unit at DBI electronically or in writing of its calculation of the amount of the fee owed. (d) Lien Proceedings. If, for any reason, the Affordable Housing Fee imposed pursuant to Section 415.5 remains unpaid following issuance of the first Certificate of Occupancy, the Development Fee Collection Unit at DBI shall institute lien proceedings to make the entire unpaid balance of the fee, plus interest and any deferral surcharge, a lien against all parcels used for the development project in accordance with Section 408 of this Article and Section 107 A.13.15 of the San Francisco Building Code. (e) If a housing project is located in an Area Plan with an additional or specific affordable housing requirements such as those set forth in a special use district or sSectiong 416, 417, and 419 or elsewhere in this code, the higher housing requirement shall apply. mera specific provisions shall apply in lieu of or in addition to those provided in this Program, as applicable. (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"), Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 17 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 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 1 O administering compliance with the requirements of the Program. MOH CD is authorized to 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. (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% of all fees for this purpose until the Small Sites Funds reach a total of $15 million at which point, MOHCD will stop funds for this purpose. At such time as designated Small Sites Funds are expended and dip below $15 million, MOHCD shall start designating funds again for this purpose, such that at no time the Small Sites Funds shall exceed $15 million. When the total amount of fees paid to Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 1 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 4 . amount of fees paid to the City under Section 415.1 ~et seq. meets or exceeds $10 million the preceding 12 month period, MOHCD shall commit all of the previously diverted funds and 10% percent of any new funds, subject to the cap above, to the Small Sites Fund. (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 supported by monies from the fund shall be designated as housing affordable to qualified 1 O households as set forth in Section 415.2 for the life of the project 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. (C) Initial Funds. If, within 18 months from April 23, 2009, MOHCD dedicates an initial one-time contribution of other eligible funds to be used initially as Small Sites Funds, MOHCD may use the equivalent amount of Small Sites Funds received from fees for other purposes permitted by the Citywide Affordable Housing Fund until the amount the initial one-time contribution is reached. Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 1 (D) Annual Report. At the end of each fiscal year, MOHCD shall issue a report to the Board of Supervisors regarding the amount of Small Sites Funds received from fees under this legislation, and a report of how those funds were used. (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 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. (3) For all projects funded by the Citywide Affordable Housing Fund, MOHCD requires the project sponsor or its successor in interest to give preference as provided in 1 O Administrative Code Chapter 47. (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 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. (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, Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 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 Environmental Evaluation application after January 12. 2016 thatare 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. (2) Qualifications: If a project sponsor wishes to comply with the Program 1 O through one of the Alternatives described in subsection (g)(1) rather than pay the Affordable Housing Fee, they must demonstrate that they qualify for the Alternative to the satisfaction of the Department and MOHCD. A project sponsor may qualify for an Alternative by the following methods: (i) Method #1 - Ownership Units. All affordable units provided under this Program shall be sold as ownership units and will remain ownership units for the life of the project. Project sponsors must submit the 'Affidavit of Compliance with the lnclusionary Affordable Housing Program' to the Planning Department prior to project approval by the Department or the Commission; or (ii) Method #2 - Government Financial Contribution. Submit to the Department a contract demonstrating that the project's on- or off-site units are not subject to the Costa Hawkins Rental Housing Act, California Civil Code Section 1954.50 because, Section 1954.52(b ), it has entered into an agreement with a public entity in consideration for direct financial contribution or any other form of assistance specified in California Code Sections 65915 et seq. and it submits an Affidavit of such to the Department. All such contracts entered into with the City and County of San Francisco must be reviewed and Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page approved by the Mayor's Office Housing MOHCD and the City Attorney's Office. All contracts that involve 100% affordable housing projects in the residential portion may be executed by the Mayor or the Director of the Mayor's Office of Housing MOHCD. Any contract that involves less than 100% affordable housing in the residential portion, may be executed by either the Mayor, the Director of the Mayor's Office of Housing MOHCD or, after review and comment by the Mayor's Office of Housing MOHCD, the Planning Director. A Development Agreement under California Government Code Section~ 65864 et seq. and Chapter 56 of the San Fransisco Administrative Code entered into between a project sponsor and the City and County of San Francisco may, but does not necessarily, qualify as such a contract. 1 O (3) The Planning Commission or the Department may not require a project sponsor to select a specific Alternative. If a project sponsor elects to meet the Program requirements through one of the Alternatives described in subsection (g)(1), they must choose it and demonstrate that they qualify 30 days prior to any project approvals from the Planning Commission or Department. The Alternative will be a condition of project approval and recorded against the property in an NSR. Any subsequent change by a project sponsor that results in the reduction in the number of on-site units shall require public notice for a hearing and approval from the Planning Commission. Notwithstanding the foregoing, if a project sponsor qualifies for an Alternative described in subsection (g)(1) and elects to construct the affordable units on- or off-site, tfiey the project sponsor must submit the ~Affidavit of Compliance with the lnclusionary Housing Program~ based on the fact that the units will be sold as ownership units. A project sponsor who has elected to construct affordable ownership units on- or off-site may only elect to pay the Affordable Housing Fee up to the issuance of the first construction document if the project sponsor submits a new Affidavit establishing that the units will not be sold as ownership units. If a project sponsor fails to choose an Alternative Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 22 before project approval by the Planning Commission or Planning Department or if a project becomes ineligible for an Alternative, the provisions of Section 415.5 shall apply. (4) If at any time, the project sponsor eliminates the on-site or off-site affordable ownership-only units, then the project sponsor must immediately inform the Department and MOO MOHCD_and pay the applicable Affordable Housing Fee plus interest and any applicable penalties provided for under this Code. If a project sponsor requests a modification to its conditions of approval for the sole purpose of complying with this Section, the Planning Commission shall be limited to considering issues related to Section 415 et seq. in considering the request for modification. SEC. 415.6. ON-SITE AFFORDABLE HOUSING ALTERNATIVE. The requirements set forth in this Section 415. 6 ·will be revie·wed when the City completes an Economic Feasibility Study. If a project sponsor is eligible and elects to provide on-site units pursuant to Section 415.5(g), the development project shall meet the following requirements: (a) Number of Units. The number of units constructed on-site shall be as follows: ( 1) For housing development projects consisting of 10 dwelling units or more, but less than 25 dwelling units, +the number of affordable units constructed on-site shall generally be 12% of all units constructed on the project site for housing developmentprojects consisting of I 0 dwelling units or more, but kss than 25 dwelling units. The affordable units shall all be affordable to low= and lower income households. Owned Units shall be affordable to households earning W-%MQ to 100% of Area Median Income, with an average a(fgrdable sales price set at 0080% of Area Median Income or less. Rental Units shall be affordable to households earning 4-0%-up to 8965% of Area Median Income, with an average affordable rent set at @55% of Area Median Income or less. The number of units constructed on site shall generally be 25% of all units constructed on the project site for housing development projects consisting of25 dwelling units or more, v.·ith a Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 23 minimum <>}15% <>fthe units affordable te low income households and 10% o.fthe units affordable te lm~· or moderate/middle income households. (2) For any housing development project consisting of 25 or more Owned Units. the number of affordable units constructed on-site shall generally be 20% of all units constructed on the project site. A minimum of 10% of the units shall be affordable to low- income households, 5% of the units shall affordable to moderate-income households, and 5% of the units shall be affordable to middle-income households. In no case shall the total number of affordable units required exceed the number required as determined by the application of the applicable on-site requirement rate to the total project units. Owned Units 1 O for low-income households shall have an affordable purchase price set at 80% of Area Median Income or less, with households earning up to 100% of Area Median Income eligible to apply for low-income units. Owned Units for moderate-income households shall have an affordable purchase price set at 105% of Area Median Income or less, with households earning from 95% to 120% of Area Median Income eligible to apply for moderate-income units. Owned Units for middle-income households shall have an affordable purchase price set at 130% of Area Median Income or less, with households earning from 120% to 150% of Area Median Income eligible to apply for middle-income units. For any affordable units with purchase prices set at 130% of Area Median Income or above"'=studio the units shall have a minimum occupancy of two persons. This unit requirement shall be outlined within the Mayor's Office of Housing Preferences and Lotterv Procedures Manual no later than 6 months following the effective date of the Ordinance contained in Board of Supervisors File No. 161351. MOHCD may reduce Area Median Income pricing and the minimum income required for eligibility in each ownership categorv. (3) For any Rental Housing Project consisting of 25 or more Rental Units, the number of affordable units constructed on-site shall generally be 18% of all units constructed Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 24 on the project site. with a minimum of 10% of the units affordable to low-income households. 4% of the units affordable to moderate-income households, and 4% of the units affordable to middle-income households. In no case shall the total number of affordable units required exceed the number required as determined by the application of the applicable on-site requirement rate to the total project units. Rental Units for low-income households shall have an affordable rent set at 55% of Area Median Income or less, with households earning up to 65% of Area Median Income eligible to apply for low-income units. Rental Units for moderate- income households shall have an affordable rent set at 80% of Area Median Income or less, with households earning from 65% to 90% of Area Median Income eligible to apply for 1 O moderate-income units. Rental Units for middle-income households shall have an affordable rent set at 110% of Area Median Income or less, with households earning from 90% to 130% of Area Median Income eligible to apply for middle-income units. For any affordable units with rental rates set at 110% of Area Median Income or above_,_studio the units shall have a minimum occupancy of two persons. This unit requirement shall be outlined within the Mayor's Office of Housing Preferences and Lotterv Procedures Manual no later than 6 months following the effective date of the Ordinance contained in Board of Supervisors File No. 161351. MOHCD may reduce Area Median Income pricing and the minimum income required for eligibility in each rental categorv. (4) Notwithstanding the foregoing, Area Median Income limits for Rental Units and Owned Units, the maximum affordable rents or sales price shall be no higher than 20% below median rents or sales prices for the neighborhood within which the project is located, which shall be defined in accordance with the American Community Survey Neighborhood Profile Boundaries Map Planning Department's Neighborhood Groups Map. MOHCD shall adjust the allowable rents and sales prices, and the eligible households for such units. accordingly. and such potential readjustment shall be a condition of approval upon project Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page entitlement. The City shall review the updated data on neighborhood rents and sales prices on an annual basis. (5) Starting on January 1. 2018. and no later than Januarv 1 of each year thereafter. MOHCD shall increase the percentage of units required on-site for projects consisting of 10- 24 units. as set forth in Section 415.6(a)(1). by increments of 0.5% each year. until such requirement is 15%. For all development projects with 25 or more Owned or Rental Units, the required on-site affordable ownership housing to satisfy this Section 415.6 shall increase by 1.0% annually for two consecutive years starting Januarv 1, 2018. The increase shall be apportioned to units affordable to low-income households, as defined above 1 O in subsection 415.6(a)(3). Starting Januarv 1. 2020, the increase to on-site rental and ownership developments with 25 or more units shall increase by 0.5% annually, with such increases allocated equally for rental and ownership units to moderate and middle income households, as defined above in subsection 415.6(a)(3). The total on-site inclusionarv affordable housing requirement shall not exceed 26% for development projects consisting of Owned Units or 24% for development projects consisting of Rental Units, and the increases shall cease at such time as these limits are reached. MOHCD shall provide the Planning Department. DBI, and the Controller with information on the adjustment to the on-site percentage so that it can be included in the Planning Department's and DBl's website notice of the fee adjustments and the Controller's Citywide Development Fee and Development Impact Requirements Report described in Section 409(a). (2) For any housing development project consisting of 25 or more Ovmed Units, the number of affordable units constructed on site shall be 27% of all units constructed on the project site, with a minimum of 15% of the units affordable to low or lm.ver income households and 12% of the units affordable to moderate/middle income households. Owned Units for low and 101..ver income households shall be affordable to a range of households from 80% to Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 100% of Area Median Income, •,.vith an average affordable sales price set at 90% of Area Median Income or less. O•.vned Units for middle/moderate income households shall be affordable to a range of households from 100% to 140% of Area Median Income, with an average affordable sales price set at 120% of Area Median Income or less; provided that a middle/moderate income unit shall have a maximum sales price set at 100% of Area Median Income for a single income household. MOHCD may reduce the average Area Median Income upon request by the project sponsor. (3) For any Rental Housing Project consisting of 25 or more Rental Units, the number of affordable units constructed on site shall generally be 24% of all units constructed on the project site, with a minimum of 15% of the units affordable to low or lmver income households and 9% of the units affordable to moderate/middle income households. Rental Units for low and lmver income households shall be affordable to a range of households earning from 40% to 80% of Area Median Income, •.vith an average affordable rent set at 60% of Area Median Income or less. Rental Units for middle/moderate income households shall be affordable to a range of households earning from 80% to 120% of Area Median Income, 'Nith an average affordable rent set at 100% of Area Median Income or less; provided that a middle/moderate income unit shall have a maximum rent set at 100% of Area Median Income for a single income household. MOHCD may reduce the average Area Median Income upon request by the project sponsor. MOHCD shall set forth in the Procedures Manual the administration of rental units within this range. (4) A minimum of 40% of the on site affordable units shall consist of 'l'.vo bedroom units and a minimum of 20% of the on site affordable units shall consist of three bedrooms or larger. Units shall have minimum floor areas that conform to the standards developed by the California Tax Credit Allocation Committee (CTCAC) for affordable units. The total residential floor area devoted to the affordable units shall not be less than the Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 27 applicable percentage applied to the total residential floor area of the principal project, provided that a 10% variation in floor area is permitted. (5) In the event one or more of the Rental Units in the principal Rental Housing Project become ovmership units, each converted Rental Unit shall reimburse the City the proportional difference between the amount of the then current inclusionary affordable housing requirement for Rental Units and Owned Units. If a Rental Housing Project is converted to an ownership housing project in its entirety, an additional 3% of the units shall be designated as affordable to qualifying households, apportioned bet\veen the required number of lo'N and Im.var income and moderate/middle income on site units in compliance with the 1 O requirements currently in effect at the time of conversion. @_The Department shall require as a condition of Department approval of a project's building permit, or as a condition of approval of a Conditional Use Authorization or Planned Unit Development or as a condition of Department approval of a live/work project, that 12%, 24% or 27% 25%, 18%. or 20%. as applicable, or such current percentage that has been adjusted annually by MOHCD, of all units constructed on the project site shall be affordable to qualifying households so that a project sponsor must construct .12, .24 or .27 or :-2-5 .18, or .20 times, or such current number as adjusted annually by MOHCD, as applicable, the total number of units produced in the principal project. If the total number of units is not a whole number, the project sponsor shall round up to the nearest whole number for any portion of .5 or above. In no case shall the total number of affordable units required exceed the number required as determined by the application of the applicable on-site requirement rate to the total project units. (7) In the event one or more of the Rental Units in the principal Rental Housing Project become ownership units, for each converted Rental Unit. or for the principal Rental Housing Project in its entirety, as applicable, the project sponsor shall either (A) reimburse the Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 28 City the proportional amount of the inclusionarv affordable housing fee. which would be equivalent to the then-current inclusionarv affordable fee requirement for Owned Units. or (8) provide additional on-site or off-site affordable units equivalent to the then-current inclusionarv requirements for Owned Units. apportioned among the required number of units at various income levels in compliance with the requirements in effect at the time of conversion. !fil Specific Geographic Areas. For any housing development that is located in an area with a specific affordable housing requirement set forth in a Special Use District or in any other section of the Code such as Section 419, the higher housing requirement shall apply. The Planning Department, in consultation with the Controller, shall undertake a study ofareas 1 O where an Area Plan, Special Use District, or other re-zoning is being considered for adoption or has been adopted after January I, 2015, to determine whether a higher on-site inclusionary affordable housing requirement is feasible on sites that have received a 20% or greater increase in developable residential gross floor area or a 35% or greater increase in residential density over prior zoning, and shall submit such information to the Planning Commission and Board o[Supervisors. (8f!) If the principal project has resulted in demolition, conversion, or removal of affordable housing units that are subject to a recorded covenant. ordinance, or law that restricts rents to levels affordable to persons and families of moderate-. low- or verv-low- income. or housing that is subject to any form of rent or price control through a public entity's valid exercise of its police power and determined to be affordable housing. the Commission or the Department shall require that the project sponsor replace the number of affordable units removed with units of a comparable number of bedrooms and sales prices or rents, in addition to compliance with the requirements set forth in this Section. renting or selling to households at income levels and/or for a rental rate or sales price belm.v corresponding income thresholds for units affordable to lmv income households, the Commission or the Department shall require that the project sponsor replace the number of affordable units removed ·.vith units of a Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 29 comparable number of bedrooms in addition to compliance •.vith the inclusionary requirements set forth in this Section 415.6 orprO';;ide that 25% of all units constructed as part of the new project shall be affordable to low income or moderate/middle income households, 1vhichever is greater. (9) Annual indexing. The required on site affordable housing to satisfy this section 415.6 shall increase by 0.75% annually for all development projects •.vith 10 24 units of housing, beginning on January 1, 2018. ilQL The applicable amount of the percentage required for the on-site housing units shall be determined based upon the date that the project sponsor has submitted a complete Environmental Evaluation application. Anv development project that constructs on-site 1 O affordable housing units as set forth in this Section 415. 6 shall diligently pursue completion of such units. In the event the project sponsor does not procure a building permit or site permit for construction o[the principal project within &vo years (24 30 monthsf o[the project's approval, the development project shall comply with the inclusionary atfprdable housing requirements applicable thereafter at the time when the project sponsor procures a building permit. Such deadline shall be extended in the event of any litigation seeking to invalidate the City's approval of such project. for the duration of the litigation. (b) Any On-site units provided through this Section 415.6 may be used to qualify for a density bonus under California Government Code Section 65915. any ordinance implementing Government Code Section 65915. or one of the Affordable Housing Bonus Programs currently proposed in an contained in the ordinance in Board of Supervisors File No. 150969 or its equivalent if such ordinance is adopted. An applicant seeking a density bonus under State Law shall provide reasonable documentation to establish eligibility for a requested density bonus, incentive or concession, and waiver or reduction of development standards. as provided for under State Law and as consistent with the process and procedures detailed in a locally adopted ordinance implementing the State Law. Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page (c) Beginning in January 2018. the Planning Department shall prepare an annual report to the Planning Commission about the number of density bonus projects under California Government Code Section 65915. the number of density bonus units. and the types of concessions and incentives and waivers provided to each density bonus project. (d) Unless otherwise specified in this Section 415. 1 et seq .. 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 units or square footage authorized under that section in accordance with the provisions in Section 415.5(g)(1)(0). 1 O (b~) Timing of Construction. On-site affordable housing required by this Section 415.6 shall be constructed, completed, ready for occupancy, and marketed no later than the market rate units in the principal project. (ef) Type of Housing. (1) Equivalency of Units. All on-site units constructed under this Section 415.6 shall be provided as ownership units unless the project sponsor meets the eligibility requirement of Section 415.5(g). All on site units must be affordable to lm~· income households. In general, affordable units constructed under this Section 415.6 shall be comparable in number of bedrooms, exterior appearance and overall quality of construction to market rate units in the principal project. A Notice of Special Restrictions shall be recorded prior to issuance of the first construction document and shall specify the number, location and sizes for all affordable units required under this subsection (ef). The affordable units shall be evenly distributed throughout the building. For buildings over 120 feet in height, as measured under the requirements set forth in the Planning Code, the affordable units may be distributed throughout the lower 2/3 of the building, as measured by the number of floors. The interior features in affordable units should be generally the same as those of the market rate units in Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 31 the principal project, but need not be the same make, model or type of such item as long as they are of good and new quality and are consistent with then-current standards for new housing. The square footage of affordable units does not need to be the same as or equivalent to that in market rate units in the principal project, so long as it is consistent \Nith then current standards for nm.v housing. The affordable units are not required to be the same size as the market rate units, and may be 90% of the average size of the specific unit type. For buildings over 120 feet in height, as measured under the requirements set forth in the Planning Code, the average size of the unit type may be calculated for the lower 2/3 of the building, as measured by the number of floors. Where applicable, parking shall be offered to 1 O the affordable units subject to the terms and conditions of the Department's policy on unbundled parking for affordable housing units as specified in the Procedures Manual and amended from time to time. On site affordable units shall be ownership units unless the project applicant meets the eligibility requirement o.fSection 415.5(9). (2) Minimum Size of Affordable Units. The affordable units are not required to be the same size as the market rate units, and may be 90% of the average size of the specific unit type. For buildings over 120 feet in height. as measured under the requirements set forth in the Planning Code, the average size of the unit type may be calculated for the lower 2/3 of the building, as measured by the number of floors. All units shall be no smaller than the minimum unit sizes set forth by the California Tax Credit Allocation Committee as of May 16. 2017, and no smaller than 300 square feet for studios. For affordable dwelling units, individual unit square footage shall not be less than the follmving for each unit type: Studios: 350 square feet 1 Bedrooms: 550 square feet 2 Bedrooms: 800 square feet 3 Bedrooms: 1,000 square feet Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 4 Bedrooms: 1 ,250 square feet Units priced to be affordable for households earning 100% of Area Median Income or above shall not include studios. The total residential floor area devoted to the .. 4 affordable units shall not be less than the applicable percentage applied to the total residential floor area of the principal project. provided that a 10% variation in floor area is permitted. (2) Density Bonus Projects. An applicant seeking a density bonus under the provisions of State La'A' shall provide reasonable documentation to establish eligibility for a requested density bonus, incentives or concessions, and i.vaivers or reductions of development standards. The Planning Department shall provide information about the value 1 O of the density bonus, concessions and incentives for each density bonus project and include it in the Department's case report or decision on the application. In addition, beginning in January 2018, the Planning Department shall prepare an annual report to the Planning Commission about the number of density bonus projects, density bonus units and the kinds of density bonuses, concessions and incentives provided to each density bonus project, which should be presented at the same time as the Housing Balance Report. --f6jfyLMarketing the Units. The Mayor's Office of Housing and Community Development ("MOHCD") shall be responsible for overseeing and monitoring the marketing of affordable units under this Section 415.6. In general, the marketing requirements and procedures shall be contained in the Procedures Manual as amended from time to time and shall apply to the affordable units in the project. MOHCD may develop occupancy standards for units of different bedroom sizes in the Procedures Manual in order to promote an efficient allocation of affordable units. MOHCD may require in the Procedures Manual that purchasers complete homebuyer education training or fulfill other requirements. MOHCD shall develop a list of minimum qualifications for marketing firms that market affordable units under Section 415.6_415.5 et seq., referred to in the Procedures Manual as Below Market Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page Rate (BMR units). No developer marketing units under the Program shall be able to market affordable units except through a firm meeting all of the minimum qualifications. The Notice of Special Restrictions or conditions of approval shall specify that the marketing requirements . and procedures contained in the Procedures Manual as amended from time to time, shall apply to the affordable units in the project. (1) Lottery. At the initial offering of affordable units in a housing project and when ownership units become available for re-sale in any housing project subject to this Program after the initial offering, MOHCD must require the use of a public lottery approved by MOHCD to select purchasers or tenants. 1 O (2) Preferences. MOH CD shall create a lottery system that gives preference according to the provisions of Administrative Code Chapter 47. MOHCD shall propose policies and procedures for implementing these preferences to the Planning Commission for inclusion as an addendum to ffi the Procedures Manual. Otherwise, it is the policy of the City to treat all households equally in allocating affordable units under this Program. {e} !bl Individual affordable units constructed under Section 415.6 as part of an on-site project shall not have received development subsidies from any Federal, State or local program established for the purpose of providing affordable housing, and shall not be counted to satisfy any affordable housing requirement. Other units in the same on-site project may have received such subsidies. In addition, subsidies may be used, only with the express written permission by MOHCD, to deepen the affordability of an affordable unit beyond the level of affordability required by this Program. (-ft ill Notwithstanding the provisions of Section 415.6(e) 415.6(h) above, a project may use California Debt Limit Allocation Committee (CDLAC) tax-exempt bond financing and 4% tax credits under the Tax Credit Allocation Committee (TCAC) to help fund its obligations Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page under Section 415.1 et seq.this ordinance as long as the project provides 20% percent of the units as affordable to households at 50% percent of Area Median Income for on-site housing or 10% of the units as affordable to households at 50% of Area Median Income, and 30% of the units as affordable to households at 60% of Area Median Income for on-site housing. The income table to be used for such projects when the units are priced at 50% or 60% percent of Area Median Income is the income table used by MOHCD for the lnclusionary Affordable Housing Program, not that used by TCAC or CDLAC. Except as provided in this subsection (j)_, all units provided under this Section must meet all of the requirements of Section 415.1 et seq.this ordinance and the Procedures Manual for on-site housing. 1 O tfil !lLBenefits. If the project sponsor is eligible for and elects to satisfy the affordable housing requirements through the production of on-site affordable housing in this Section 415.6, the project sponsor shall be eligible to receive a refund for only that portion of the housing project which is affordable for the following fees: a Conditional Use authorization or other fee required by Section 352 of this Code, if applicable; an environmental review fee required by Administrative Code Section 31.468 31.22, if applicable; a building permit fee required by Section 355 of this Code for the portion of the housing project that is affordable. The project sponsor shall pay the building fee for the portion of the project that is market-rate. An application for a refund must be made within six months from the issuance of the first certificate of occupancy. The Controller shall refund fees from any appropriated funds to the project sponsor on application by the project sponsor. The application must include a copy of the Certificate of Occupancy for all units affordable to a qualifying household required by the lnclusionary Housing Program. It is the policy of the Board of Supervisors to appropriate money for this purpose from the General Fund. Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page SEC. 415.7. OFF-SITE AFFORDABLE HOUSING ALTERNATIVE. The requirements set forth in this Section 415. 7 '1Vill be reviC'rved when the City completes an Economic Feasibility Study. If the project sponsor is eligible and elects pursuant to Section 415.5(g) to provide off-site units to satisfy the requirements of Section 415.1 et seq., the project sponsor shall notify the Planning Department and the Mayor's Office of Housing and Community Development ("MOHCD") of its intent as early as possible. The Planning Department and MOH CD shall provide an evaluation of the project's compliance with this Section 415. 7 prior to approval by the Planning Commission or Planning Department. The development project shall meet the following requirements: 1 O (a) Number of Units: The number of units constructed off-site shall be as follows: (1) For any housing development that is located in an area "'-'--'~==-==-=-=c...::.:'"""'--"-== with a specific affordable housing requirement, or in any other Planning Code provision. such as Section 419, set forth in Section 419 or elsewhere in this Code, the higher off-site housing requirement shall apply. (2) For housing development projects consisting of 10 dwelling units or more but less than 25 units, the number of affordable units constructed off-site shall be 20%, so that a project applicant shall construct .20 times the total number of units produced in the principal project. If the total number of units is not a whole number, the project applicant shall round up to the nearest whole number for any portion of .5 or above. In no case shall the total number of affordable units required exceed the number required as determined by the application of the applicable off-site requirement rate to the total project units. The off site affordable units shall be affordable to lovv and lmver income households. Owned Units shall be affordable to households earning ~YR to 100% of Area Median Income, with an average affordable sales price set at 9G-§.Q% of Area Median Income or less. Rental Units shall be affgrdable to households earning Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 4G-%-~ 0065% of Area Median Income, with an average affordable rent set at W55% of Area Median Income or less. (3) For housing development projects consisting of 25 dwelling units or more, the number of units constructed off site shall be 33%, 'Nith 20% of the units affordable to low income households and 13% of the units affordable to low or moderate/middle income households, so that a project applicant shall construct .33 times the total number of units produced in the principal project. If the total number of units is not a \Vhole number, the project applicant shall round up to the nearest whole number for any portion of .5 or above. For any housing development project consisting of25 or more Owned Units, the number of affordable units constructed off-site shall be 33% of all units constructed on the project site, with a minimum of 15% of the units affordable to low or lm.ver income households and 18% ofthe units affordable to moderate/middle income households. Owned Units for low and 10 1.ver low-income households,shall be_8% of the units affordable to a range of moderate-income households,_from 80% to 100 of Area Median Income, with an average Area Median Income, v.:ith an average affordable sales price set at 90% of Area Median Income or less. Owned Units for and 7% of the units affordable to middle/moderate income households. shall be affordable to a range of households from 100% to 140% of Area Median Income, with an average affordable sales price set at 120% of Area Median Income or less; provided that a middle/moderate income unit shall have a maximum sales price set at 100% of Area Median Income for a single income household. MOHCD may reduce the average Area Median Income upon request by the project sponsor. In no case shall the total number of affordable units required exceed the number required as determined by the application of the applicable off-site requirement rate to the total project units. Owned Units for low-income households shall have an affordable purchase price set at 80% of Area Median Income or less, with households earning up to 100% of Area Median Income eligible to apply for low-income units. Owned Units for Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 37 I' moderate-income households shall have an affordable purchase price set at 105% of Area Median Income or less. with households earning from 95% to 120% of Area Median Income eligible to apply for moderate-income units. Owned Units for middle-income households shall have an affordable purchase price set at 130% of Area Median Income or less. with households earning from 120% to 150% of Area Median Income eligible to apply for middle- income units. For any affordable units with purchase prices set at 100% of Area Median Income or above, studio the units shall have a minimum occupancy of two persons. shall not be allowed. This unit requirement shall be outlined within the Mayor's Office of Housing g Preferences and Lotterv Procedures Manual no later than 6 months following the effective 1 O date of the Ordinance contained in Board of Supervisors File No. 161351. MOH CD may reduce Area Median Income pricing and the minimum income required for eligibility in each rental categorv. (4) For any Rental Housing Project consisting of25 or more Rental Units, the number ofaffordable units constructed off-site shall generally be 30% ofall units constructed on the project site, with a minimum of--1-918% o[the units a([ordable to low or lower income households,, and 15% of the units affordable to moderate/middle income households. Rental Units for lo•N and lower income households shall be affordable to a range of households earning from 4 0% to 80% of /\rea Median Income, 'Nith an average affordable rent set at 60% of /\rea Median Income or less. Rental Units for middle/moderate income households shall be affordable to a range of households earning from 80% to 120% of /\rea Median Income, 'Nith an average affordable rent set at 100% of/\rea Median Income or less; provided that a middle/moderate income unit shall have a maximum rent set at 100% of /\rea Median Income for a single household. MOHCD may reduce the average /\rea Median Income upon request by the project sponsor. 6% of the units affordable to moderate-income households, and 6% of the units affordable to middle-income households. In no case shall the total number of affordable Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page I' units required exceed the number required as determined by the application of the applicable off-site requirement rate to the total project units. Rental Units for low-income households shall have an affordable rent set at 55% of Area Median Income or less, with households earning up to 65% of Area Median Income eligible to apply for low-income units. Rental Units for moderate-income households shall have an affordable rent set at 80% of Area Median Income or less, with households earning from 65% to 90% of Area Median Income eligible to apply for moderate-income units. Rental Units for middle-income households shall have an affordable rent set at 110% of Area Median Income or less. with households earning from 90% to 130% of Area Median Income eligible to apply for middle-income units. For any affordable units with rental rates set at 100% of Area Median Income or above, studio the units shall have a minimum occupancy of two persons. shall not be allmved. This unit requirement shall be outlined within the Mayor's Office of Housing Preferences and Lotterv Procedures Manual no later than 6 months following the effective date of the Ordinance contained in Board of Supervisors File No. 161351. MOHCD may reduce Area Median Income pricing and the minimum income required for eligibility in each rental categorv. MOHCD shall set forth in the Procedures Manual the administration ofrental units within this range. (5) In the event one or more ofthe Rental Units in the principal Rental Housing Project become ownership units, for each converted Rental Unit, or fQ!: the principal Rental Housing Project in its entirety, as applicable, the Project Sponsor shall either (A) reimburse the City the proportional amount ofthe inclusionary affordable housing feelnclusionarv Affordable Housing Fee. which would be equivalent to the then- current inclusionary affordable feelnclusionarv Affordable Housing Fee requirement {Or Owned Units, or {B) provide additional on-site or off-site affordable units equivalent to the then-current inclusionary requirements {Or Owned Units, apportioned among the required number of units at various income levels in compliance with the requirements in effect at the time of conversion. Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page (6) The Department shall require as a condition of Department approval of a project's building permit, or as a condition of approval of a Conditional Use Authorization or Planned Unit Development or as a condition of Department approval of a live/work project, that 20%, 30% or 33%, as applicable, of all units constructed on the project site shall be constructed off site and affordable to qualifying households so that a project sponsor must construct .20, .30 or .33 times, as applicable, the total number of units produced in the principal project. (7) A minimum of 4 0% of the off site affordable units shall consist of PA'O bedroom units and a minimum of 20% of the off site affordable units shall consist of three 1 O bedrooms or larger. Units shall have minimum floor areas that conform to the standards developed by the California Tax Credit Allocation Committee (CTCAC) for affordable units. The total residential floor area devoted to the affordable units shall not be less than the applicable percentage applied to the total residential floor area of the principal project, provided that a 10% variation in floor area is permitted. .(8§) The applicable amount of the percentage required for the off-site housing units shall be determined based upon the date that the project sponsor has submitted a complete Environmental Evaluation application. Any development project that constructs otf-site a(fordable housing units as set forth in this Section 415. 6 shall diligently pursue completion o[such units. In the event the project sponsor does not procure a building permit or site permit for construction o[the principal project or the otf-site a(fordable housing project within two years (24 30 months1 ofthe project's approval, the development project shall comply with the inclusionary a(fordable housing requirements applicable thereafter at the time when the project sponsor procures a buildingpermit. Such deadline shall be extended in the event of any litigation seeking to invalidate the City's approval of the principal project or otf-site a(fordable housing project for the duration o[the litigation. Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page (94) Specific Geographic Areas.fZLFor any housing development that is located in an area with a specific affordable housing requirement set forth in a Special Use District, or in any other section of the Code such as Section 419, the higher affordable housing requirement shall apply. (8) If the principal project or the off-site project has resulted in demolition. conversion. or removal of affordable housing units that are subject to a recorded covenant. ordinance. or law that restricts rents to levels affordable to persons and families of moderate-. low- or verv low-income. or housing that is subject to any form of rent or price control through a ublic entit 's valid exercise of its olice ower and determined to be affordable housin the i 1 O I Commission or the Department shall require that the project sponsor replace the number of affordable units removed with units of a comparable number of bedrooms and sales prices or rents, in addition to compliance with the inclusionarv requirements set forth in this Section. * * * * (e) Marketing the Units: MOHCD shall be responsible for overseeing and monitoring the marketing of affordable units under this Section 415.7. In general, the marketing requirements and procedures shall be contained in the Procedures Manual as amended from time to time and shall apply to the affordable units in the project. MOHCD may develop occupancy standards for units of different bedroom sizes in the Procedures Manual in order to promote an efficient allocation of affordable units. MOHCD may require in the Procedures Manual that prospective purchasers complete homebuyer education training or fulfill other requirements. MOHCD shall develop a list of minimum qualifications for marketing firms that market affordable units under Section 415.1=et seq., referred to the Procedures Manual as Below Market Rate (BMR units). No project sponsor marketing units under the Program shall be able to market BMR units except through a firm meeting all of the minimum qualifications. The Notice of Special Restrictions or conditions of approval shall specify that Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 41 I the marketing requirements and procedures contained in the Procedures Manual as amended from time to time, shall apply to the affordable units in the project. * * * * (f) Individual affordable units constructed as part of a larger off-site project under this Section 415.7 shall not receive development subsidies from any Federal, State or local program established for the purpose of providing affordable housing, and shall not be counted to satisfy any affordable housing requirement for the off-site development. Other units in the same off-site project may receive such subsidies. In addition, subsidies may be used, only with the express written permission by MOO MOHCD, to deepen the affordability of an affordable unit beyond the level of affordability required by this Program. (g) Notwithstanding the provisions of Section 415. 7 (f) above, a project may use California Debt Limit Allocation Committee (CDLAC) tax-exempt bond financing and 4% credits under the Tax Credit Allocation Committee (TCAC) to help fund its obligations under this ordinance as long as the project provides 25% percent of the units as affordable at 50% percent of area median income for off-site housing. The income table to be used for such projects when the units are priced at 50% percent of area median income is the income table used by MOO MOHCD for the lnclusionary Housing Program, not that used by TCAC or CDLAC. Except as provided in this subsection, all units provided under this Section must meet all of the requirements of this ordinance and the Procedures Manual for off-site housing. SEC. 415.10. REPORTING TO BOARD OF SUPERVISORS ECONOMIC FE/\SIBILITY STUDY TO MAXIMIZE HOUSING /\FFORD/\BILITY. * * * * (d) Fee Schedule Analysis. The City shall conduct an analysis to update the lnclusionary Affordable Housing Fee, to analyze MOHCD's true costs of constructing an Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page affordable unit, including development and land acquisition costs. The Controller, \Vith the support of consultants as necessary, and in consultation vvith the lnclusionary Housing Technical Advisory Committee, shall conduct a study to examine the City's costs of constructing an affordable unit and the amount of the lnclusionary Affordable Housing Fee by January 31, 2018. Follmving completion of this study, the Board of Supervisors '.viii revievv' the analyses and the proposed fee schedule; and may consider adopting legislation to revise the lnclusionary Affordable Housing fees. f eg), Report to Board of Supervisors. The Board of Supervisors may review the feasibility analyses, as well as the periodic updates to the City's Nexus Study evaluating the 1 O necessary affordable housing in order to mitigate the impacts of market rate housing. The Board of Supervisors, in its sole and absolute discretion, will review the feasibility analyses within three months of completion and will may consider legislative amendments to the City's lnclusionary Housing in-lieu fees, on-site, off-site or other alternatives, and in so doing will seek consultation from the Planning Commission, adjusting levels of inclusionary or affordable housing obligations and income levels up to maximums as defined in Section 415.2, based on the feasibility analyses, with the objective of maximizing affordable lnclusionary Housing in market rate housing production, and with guidance from the City's Nexus Study. Any adjustment in income levels shall be adjusted commensurate with the percentage of units required so that the obligation for inclusionary housing is not reduced by any change in income levels. The Board of Supervisors may also utilize the Nexus Study in considering legislative amendments to the lnclusionary Housing requirements. Updates to the City's lnclusionary Housing requirements shall address affordable housing fees, on-site affordable housing and off-site affordable housing, as well as the provision of affordable housing available to low-income households at or below 55% of Area Median Income for rental units Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page and up to 80% of Area Median Income for ownership units, and moderate/middle-income households from 80% to 120% of Area Median Income. SEC. 415.11. SEVERABILITY. If any subsection, sentence, clause, phrase, or word oftJ::Hs. Sections 4151.1 et seq .. or any application thereofto any person or circumstance, is held to be invalid or unconstitutional by a decision of a court of competent jurisdiction, such decision shall not affect the validity o[the remaining portions or applications o(the Section. The Board ofSupervisors hereby declares that it would have passed this ordinanceSections 415.1 et seq. and each and every subsection, sentence, clause, phrase, and word not declared invalid or unconstitutional without regard to whether any other portion o(this Sections 415.1 et seq. or application thereof would be subsequently declared invalid or unconstitutional. Section 4. The Planning Code is hereby amended by adding Section 207.7 to read as follows: SEC. 207.7. REQUIRED MINIMUM DWELLING UNIT MIX. (a) Purpose. To ensure an adequate supply of family-sized units in new housing stock, new residential construction must include a minimum percentage of units of at least two and three bedrooms. (b) Applicability. (1) This Section 207.7 shall apply to all applications for building permits and/or Planning Commission entitlements that propose the creation of 10 or more Dwelling Units in all districts that allow residential uses. unless that project is located in the RTO. RCD. NCT. DTR. and Eastern Neighborhoods Mixed Use Districts. or in an area or Special Use District with higher specific bedroom mix requirements. or is a HOME SF project subject to the requirements of Planning Code Section 206.3. Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page 44 (2) This Section 207. 7 shall not apply to buildings for which 100% of the residential uses are: Group Housing. Dwelling Units that are provided at below market rates pursuant to Section 406(b)(1) of this Code. Single Room Occupancy (SRO) Units, Student Housing (all as defined in Section 102 of this Code), or housing specifically and permanently designated for seniors or persons with physical disabilities, including units to be occupied by staff serving any of the foregoing residential uses. This Section 207.7 shall apply to Student Housing unless the educational institution with which it is affiliated has an Institutional Master Plan that the City has accepted, as required under Planning Code Section 304.5. (3) This Section 207.7 shall not apply to projects that filed a complete 1 O Environmental Evaluation Application on or prior to January 12. 2016, or to projects that have received an approval, including approval by the Planning Commission, as of June 15, 2017. (c) Controls. In all residential districts subject to this Section 207.7, the following criteria shall apply: (1) No less than 25% of the total number of proposed dwelling units shall contain at least two bedrooms. Any fraction resulting from this calculation shall be rounded to the nearest whole number of dwelling units: (2) No less than 10% of the total number of proposed dwelling units shall contain at least three bedrooms. Any fraction resulting from this calculation shall be rounded to the nearest whole number of dwelling units. Units counted towards this requirement may also count towards the requirement for units with two or more bedrooms as described in subsection (flUL (d) Modifications. (1) These requirements may be waived or modified with Conditional Use Authorization. In addition to those conditions set forth in Section 303, the Planning Commission shall consider the following criteria: Supervisors Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page (A) The project demonstrates a need or mission to serve unique populations. or (8) The project site or existing buildinq(s). if any. feature physical . constraints that make it unreasonable to fulfill these requirements. (2) These requirements may be waived in the case of projects subject to Section 329 through the procedures of that Section. Section~- Effective Date. This ordinance shall become effective 30 days after enactment. Enactment occurs when the Mayor signs the ordinance, the Mayor returns the 1 O 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 §. 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. n:\legana\as2017\ 1700109\01205466.docx Supervisors.Breed; Kim, Peskin, Safai, Tang BOARD OF SUPERVISORS Page City Hall City and County of San Francisco Tails 1 Dr. Carlton B. Goodlett Place San Francisco, CA 94102-4689 Ordinance File Number: 161351 Date Passed: July 18, 2017 Ordinance amending the Planning Code to revise the amount of the lnclusionary Affordable Housing Fee and the On-Site and Off-Site Affordable Housing Alternatives and other lnclusionary Housing requirements; to require minimum dwelling unit mix in most residential districts; affirming the Planning Department's determination under the California Environmental Quality Act; making findings of public necessity, convenience, and welfare under Planning Code, Section 302; and making findings of consistency with the General Plan, and the eight priority policies of Planning Code, Section 101.1. May 15, 2017 Land Use and Transportation Committee - CONTINUED May 22, 2017 Land Use and Transportation Committee -AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE May 22, 2017 Land Use and Transportation Committee - CONTINUED AS AMENDED June 05, 2017 Land Use and Transportation Committee - CONTINUED June 12, 2017 Land Use and Transportation Committee - CONTINUED June 19, 2017 Land Use and Transportation Committee - AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE June 19, 2017 Land Use and Transportation Committee - AMENDED June 19, 2017 Land Use and Transportation Committee - DUPLICATED June 19, 2017 Land Use and Transportation Committee - AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE June 19, 2017 Land Use and Transportation Committee - RECOMMENDED AS AMENDED June 27, 2017 Board of Supervisors -AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE Ayes: 11 - Breed, Cohen, Farrell, Fewer, Kim, Peskin, Ronen, Safai, Sheehy, Tang and Yee June 27, 2017 Board of Supervisors - PASSED ON FIRST READING AS AMENDED Ayes: 11 - Breed, Cohen, Farrell, Fewer, Kim, Peskin, Ronen, Safai, Sheehy, Tang and Yee City 1111d Co1111ty of S1111 Fmncisco P11ge I Printed 111 3:04 pm on 7119117 July 11, 2017 Board of Supervisors -AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE Ayes: 10 - Breed, Cohen, Farrell, Fewer, Kim, Peskin, Ronen, Safai, Sheehy and Tang Noes: 1 - Yee July 11, 2017 Board of Supervisors - AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE Ayes: 11 - Breed, Cohen, Farrell, Fewer, Kim, Peskin, Ronen, Safai, Sheehy, Tang and Yee July 11, 2017 Board of Supervisors - PASSED ON FIRST READING AS AMENDED Ayes: 11 - Breed, Cohen, Farrell, Fewer, Kim, Peskin, Ronen, Safai, Sheehy, Tang and Yee July 18, 2017 Board of Supervisors - DUPLICATED July 18, 2017 Board of Supervisors - Fl NALLY PASSED Ayes: 11 - Breed, Cohen, Farrell, Fewer, Kim, Peskin, Ronen, Safai, Sheehy, Tang and Yee File No. 161351 I hereby certify that the foregoing Ordinance was Fl NALLY PASSED on 7/18/2017 by the Board of Supervisors of the City and County of San Francisco. f/:Ar/tr Date Approved City 1111d County of S1111 Fra11cisco P11ge2 Printed 11t 3:04 pm 011 7119117