o0171-25

AMENDED IN COMMITTEE FILE NO. 250191 7/29/2025 ORDINANCE NO. 171-25 [Planning and Building Codes - Amnesty for Properties in the Department of Building Inspection's Internal Quality Control Audit] Ordinance amending the Planning Code to: create a time-limited amnesty program for properties listed on the Department of Building Inspection's Internal Quality Control Audit and subject to a Notice of Violation; consider those properties as noncomplying structures and nonconforming uses following certification; and waive fees and penalties associated with the Planning Department's review of requests for amnesty, and refund any fees and penalties already paid by amnesty projects; amending the Building Code to: require certification of existing conditions for amnesty projects; prohibit expansion or intensification of non-complying amnesty structures; create a streamlined process for reviewing amnesty project applications; and waive fees associated with amnesty projects, and refund any fees and penalties already paid by amnesty projects; affirming the Planning Department's determination under the California Environmental Quality Act; making findings of consistency with the General Plan, and the eight priority policies of Planning Code, Section 101.1; and making findings of necessity and convenience under Planning Code, Section 302. NOTE: Unchanged Code text and uncodified text are in plain Arial font. Additions to Codes are in single-underline italics Times New Roman font. Deletions to Codes are in strikethrough italics Times Plew Rmntmfent. Board amendment additions are in double-underlined Arial font. Board amendment deletions are in strikethrough ,.\rial font. Asterisks (* * * *) indicate the omission of unchanged Code subsections or parts of tables. Be it ordained by the People of the City and County of San Francisco: Section 1. Environmental and General Findings. Supervisors Mandelman; Chan BOARD OF SUPERVISORS Page 1 (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. 250191 and is incorporated herein by reference. The Board affirms this determination. (b) On May 1, 2025, the Planning Commission, in Resolution No. 21729, adopted findings that the actions contemplated in this ordinance are consistent, on balance, with the City's General Plan and eight priority policies of Planning Code Section 101.1. The Board 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. 250191, and is incorporated herein by reference. (c) Pursuant to Planning Code Section 302, the Board of Supervisors finds that the Planning Code amendments in this ordinance will serve the public necessity, convenience, and welfare for the reasons set forth in Planning Commission Resolution No. 21729, and the Board incorporates such reasons herein by reference. (d) On April 17, 2025, at a duly noticed public hearing, the Building Inspection Commission considered this ordinance in accordance with Charter Section 4.121 and Building Code Section 104A.2.11.1 .1. A copy of a letter from the Secretary of the Building Inspection Commission regarding the Commission's recommendation is on file with the Clerk of the Board of Supervisors in File No. 250191. (e) No local findings are required under California Health and Safety Code Section 17958. 7 because the amendments to the Building Code contained in this ordinance do not regulate materials or manner of construction or repair, and instead relate in their entirety to administrative procedures for implementing the code, which are expressly excluded from the definition of a "building standard" by California Health and Safety Code Section 18909(c). Supervisors Mandelman; Chan BOARD OF SUPERVISORS Page2 Section 2. Legislative Findings. (a) In January 2023, Rodrigo Santos, a building and construction engineer who did business in San Francisco, was found guilty of leading multiple fraud schemes, tax evasion, and providing falsified documents to the Federal Bureau of Investigations. Santos had defrauded his clients, submitted false plans to the Department of Building Inspection ("DBI") and worked beyond the scope of his permits dozens of times. He also stole money from his clients by misrepresenting the fees that were due to DBI and keeping the difference. (b) In July 2023, former DBI Inspector Bernie Curran was found guilty of accepting illegal gratuities for personal gain in connection with building inspections he performed. Santos had made payments to Curran to approve illegal work including unauthorized demolitions and unpermitted construction. (c) In May 2021, DBI initiated the Internal Quality Control Audit ("Audit") - a review of properties that were associated with Rodrigo Santos and former Inspector Bernard Curran. (d) DBI identified 5,445 properties for review ("Audit Properties"). The Audit identified three Tiers of properties: (1) Tier 1: those that were associated with both Santos and Curran - 119 properties; (2) Tier 2: those associated with Santos or Curran and in a slope protection area - 158 properties; and (3) Tier 3: those associated with Santos or Curran but not in a slope protection area - 5, 168 properties. (e) Within the scope of the audit, DBI auditors have looked for evidence of work beyond the scope of the permit, unpermitted work, missing inspections, missing slope protection review, missing trade permits, missing special inspections, and complaints that were not investigated. (f) DBI completed the Audit in January 2025, and did not find any imminent life-safety hazards. Most of the Audit Properties, were cleared without DBI issuing a Notice of Violation Supervisors Mandelman; Chan BOARD OF SUPERVISORS Page 3 ("NOV"), including all Audit Properties in Tier 3. As of January 2025, DBI had issued NOVs for approximately 1304-00 Audit Properties in Tiers 1 and 2. (g) Many owners of the Audited Properties that received NOVs purchased the property after renovations had been completed and were unaware that unauthorized work had been done. (h) For some of these properties, the work needed to abate a violation can be costly, leaving these owners responsible for tens of thousands of dollars in unanticipated permit and architectural fees. (i) To provide relief for these property owners, this ordinance amends the Planning and Building Codes to create a time-limited amnesty program for properties that have been issued NOVs pursuant to the Audit. Section 3. Article 1.7 of the Planning Code is hereby amended by adding Section 187, to read as follows: SEC. 187. AUDIT PROPERTIES;. AMNESTY PROGRAM. (a) Intent. The purpose of this amnestv program is to provide relie[from strict compliance with the Planning Code for properties subiect to Notices of Violation CNOV") issued by the Department of Building Inspection as part of its Internal Quality Control Audi/ ("Audit"). The Audit identified approximately 5,500 properties that could have been subiect to permilting and inspection irregularities. Pursuant to the Audit procedures. these properties were subiect to additional review by DBI As o(January 1. 2025, DBI had issued approximately 100 NO Vs as a result o(/he~Audit. (b) Limitatiolls. This Section 187 does not alter. modify, waive. or otherwise change the City 's legal defenses to and immunity from any responsibiUty or liability for harm caused by the conduct of any permit expediter. engineer, architect of record, or other design professional, such as Rodrigo Santos~orJnspections by City employees, such as Bernard Curran. or anyone acting on behal(of or in Supervisors Mandelman; Chan BOARD OF SUPERVISORS Page4 concert with those individuals. The amnesty provided in this Section 187 does not relieve any property owner fi·om complying with the Building Code or obtaining final legal inspection for any work subiect to the Audit. (c) De[i11itions. For purposes of this Section 187 the following definitions shall apply: "Audit" means the Department of Building Inspection's Internal Ouality Control Audit, as it may be updated "NOV Property" means any propertv identified in the Audit that is or has been subiect to a NOV arising..fj:_om the Audit. (d) Amnesty Determination. NotwiLhstanding any other provision o[lhis Code. upon a written determination ofthe existing conditions made bv the Planning Director ("Director") or the Director's designee pursuant to subsection (e). the phvsical condition and use ofanv NOV Property shall be considered an existing noncomplving structure and/or nonconforming use subiecl to this Article 1. 7, afier the property owner abates the NOV bv obtaining a final certificalion ofnoncomplying conditions from the Department of Building Inspection pursuant Lo Building Code Section 106A. 6. or a Building Permit. (e) Plamzillg Determination o(No11conformitv and No11compliance. The Director Qr their designee shall document the degree o(nonconformily or noncompliance for each NOV Property that is granted amnesty under this Section 187. The Direclor's determinalion ofthe degree of nonconformity and/or noncompliance shall be based on any of the following: (1) historical photographs: (2) publicly available information, including any NO Vs: (3) current photographs provided by the applicant including photographs showing the NOV Property: (4) drawings provided by the applicant prepared bv a slate licensed contractor, architect, or registered engineer depicting the wid!h, depth. height, projection. elevation. and other key characteristics o[Lhe NOV Property: (5) site inspections by the Planning Department, Department of Building Inspection. or other department having iurisdiction Lo perform such an inspection, i{requested: and (6) any other document or information the Director Supervisors Mandelman; Chan BOARD OF SUPERVISORS Page 5 deems relevant. Such determination shall be provided to the Department o(Building Inspection under Building Code Section 106A. 6. It shall be the obligation ofthe property owner to demonstrate eligibility for amnesty under this Section 187. The Director's determination regarding the degree of nonconformity or noncompliance shall not be subiect to appeal. CO Waiver of Fees. The Planning Department shall waive all fees for applications or other actions zmderjhis SecliQIJ)87. The~PlanningDepartm.ent shall also refimd any permit fees or enforcement fees and penalties related lo abating a NOV issued pursuant to the Audit. regardless of whether the fees or penalties were paid prior to the effective date ofthe ordinance in Board File No. 250191. (g) Re/atio11ship to Planning Code. Pursuant to the provisions o[lhis Section 187 and Building Code Section 106A.6, NOV Properties subiect to the Audit mav receive amnesty from the Planning Code and be considered existing noncomplying structures and/or nonconforming uses. Although NOV Properties may receive amnesty from strict compliance with the Planning Code for work sub;ect to the Audit, NOV Properlies may not enlarge. modify or otherwise intensify the noncomplving structures and/or nonconforming uses. Following receipt by propertv owner ofa certification of existing conditions pursuant to Building Code Section 106A or a Building Permit to abate a NOV. anv changes to the propertv shall be subiect to the requirements of the Planning Code in effect as of the date ofthe subsequent work. (h) Application deadline. Any NOV Property must submit a complete amnesty application no later than three vears after the effective date ofthe ordinance in Board File No. 250191. (i) Sunset. This Section 187 shall expire by operation of/aw five years after the effecLive date of the ordinance in Board File No. 250191. following which the Citv Allorney is authorized to cause it to be removed from the Planning Code. Supervisors Mandelman; Chan BOARD OF SUPERVISORS Page6 Section 4. Chapter 1A of the Building Code is hereby amended by adding Section 106A.6, consisting of Sections 106A.6.1 to 106A.6.6, to read as follows: 106A. 6 Internal Quality Control Audit Amnesty Program. This Section 106A. 6 applies to Notices of Violation ("NOV") Properties, as defined in Planning Code Section 187. Planning Code Section 187 creates an amnesty program for properties subiect Lo NO Vs resulting Ii-om the Department's Internal Quality Control Audit ("Audit") by exempting those NOV Properties from strict compliance with the Planning Code. provided that the property owner obtains certifzcation from the Department documenting the status of the noncomplying conditions. The Department shall implement the amnesty program outlined in this Section 106A. 6 to document the noncomplying condition-L and expedite the abatement o(NOVs associated ·with Audit. 1061-J.p.J Certification of Existing Conditions a11d Necessary Repairs: No New Construction or bzte11sificatio11 of Non-Conformity. The Department shall provide a streamlined process to ·verifv exisling conditions and abate any Building Code issues: provided that the application for certification of existing conditions shall be consistent with the information on Plans and Specification requi[emenJ£ provided in Section J06A.3.3. and require the propertv owner to designate an architect or engineer of record The amnesty program shall not authorize new construction. additions. or any intensification of structural non-conformitv bevond what is determined bv the Planning Department to be a noncomplving structure and/or nonconforming use pursuant to Planning Code Section 187. 106A. 6.2 Abatement of Notices of Violation. A certification pursuant to this Section I 06A. 6 shall be sufficient to abate a pending NOV related to failure to comply with the Planning Code. Building Code violations must be brought into compliance with all applicable building standard!i. 106A.6.3 No Relaxatio11 of Building Standards. The certification process in this Section l il6A.6.3 mav be used to abate a NOV based on failure to comply with the Planning Code, but nothing in this Section 106A. 6 relaxes or suspends any building standards or the obligation to obtain a Building Permit to abate a NOV premised upon violations of the Building Code. Supervisors Mandelman; Chan BOARD OF SUPERVISORS Page 7 106A.6.4 Waiver o[Fees. Notwithstanding any other provision of the Building Code, the Department shall waive all fees for applications and inspections necessary to obtain a certification pursuant to this Section 106A. 6 and building permits necessary to abate any NOV issued pursuant to the AudiCincluding the application fee for plan review. permit issuance fee for inspections. and any enforcement fees and penalties, such as inspection fees required under Section 107A.5 for ·work wjthout a permit. The Department shall refund anv permit fees and any related enforcement fees andpenaWes as~oclat~d~ith qbqting a NOV for failure to complv with the Building Code issued pursuant to the Audit. regardless of whether the fees were paid prior to the effective date ofthe OLdLnance in Board File No. 250191. J()6A.~5 StceqmJing_dApplication Process. The Department shall develop a.streamlined application process to facilitate and expedite review of applications filed.Jmsfer.. thjs~Section l 06A. 6. 106A.6.6 Sunset. This SectionJ06A.6 shQl! expire by operation o(law five years after the effective date o(the ordinance in Board File No. 2j0J91. following which the City Attorne11 iS. authorized to cause ii Lo be removed from the Building Code. Section 5. Effective Date. This ordinance shall become effective 30 days after enactment. Enactment occurs when the Mayor signs the ordinance, the Mayor returns the ordinance unsigned or does not sign the ordinance within ten days of receiving it, or the Board of Supervisors overrides the Mayor's veto of the ordinance. Ill Ill Ill Supervisors Mandelman; Chan BOARD OF SUPERVISORS Page 8 Section 6. Scope of Ordinance. In enacting this ordinance, the Board of Supervisors intends to amend only those words, phrases, paragraphs, subsections, sections, articles, numbers, punctuation marks, charts, diagrams, or any other constituent parts of the Municipal Code that are explicitly shown in this ordinance as additions, deletions, Board amendment additions, and Board amendment deletions in accordance with the "Note" that appears under the official title of the ordinance. APPROVED AS TO FORM: DAVID CHIU, City Attorney By: /s/ Robb Kapla Robb Kapla Deputy City Attorney n :\legana\as2024 \2500083\01856384.docx Supervisors Mandelman; Chan BOARD OF SUPERVISORS Page9 City and County of San Francisco Tails Ordinance City Hall l Dr. Carlton B. Goodlett Place San Francisco, CA 94102-4689 File Number: 250191 Date Passed: September 02, 2025 Ordinance amending the Planning Code to: create a time-limited amnesty program for properties listed on the Department of Building Inspection's Internal Quality Control Audit and subject to a Notice of Violation; consider those properties as noncomplying structures and nonconforming uses following certification; and waive fees and penalties associated with the Planning Department's review of requests for amnesty, and refund any fees and penalties already paid by amnesty projects; amending the Building Code to: require certification of existing conditions for amnesty projects; prohibit expansion or intensification of non-complying amnesty structures; create a streamlined process for reviewing amnesty project applications; and waive fees associated with amnesty projects, and refund any fees and penalties already paid by amnesty projects; affirming the Planning Department's determination under the California Environmental Quality Act; making findings of consistency with the General Plan, and the eight priority policies of Planning Code, Section 101.1; and making findings of necessity and convenience under Planning Code, Section 302. July 23, 2025 Budget and Finance Committee - CONTINUED TO CALL OF THE CHAIR July 29, 2025 Budget and Finance Committee -AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE July 29, 2025 Budget and Finance Committee - RECOMMENDED AS AMENDED AS A COMMITTEE REPORT July 29, 2025 Board of Supervisors - PASSED, ON FIRST READING Ayes: 11 - Chan, Chen, Dorsey, Engardio, Fielder, Mahmood, Mandelman, Melgar, Sauter, Sherrill and Walton September 02, 2025 Board of Supervisors - FINALLY PASSED City and County of San Francisco Ayes: 11 - Chan, Chen, Dorsey, Engardio, Fielder, Mahmood, Mandelman, Melgar, Sauter, Sherrill and Walton Page I Printed at 12:05 pm on 9/3125 File No. 250191 City and County of San Francisco Daniel Lurie Mayor Pagel I hereby certify that the foregoing Ordinance was FINALLY PASSED on 9/2/2025 by the Board of Supervisors of the City and County of San Francisco. <::2..LOv Angela Calvillo Clerk of the Board ". s. 202 er Date Approved Printed at 12:05 pm on 9/3125