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I FILE NO. 160321 I AMENDED IN COMMITTEE 09/19/16 ORDINANCE 188-16 ![Planning Code - Housing Balance Report] I !Ordinance amending the Planning Code to require inclusion in the Housing Balance Report data about the withdrawal of housing units from the rental market by all means, including owner move-ins; affirming the Planning Department's determination under the California Environmental Quality Act; and making findings of consistency with the General Plan and the eight priority policies of Planning Code Section 101.1 and findings of public convenience, necessity, and welfare under Planning Code Section 302. NOTE: Unchanged Code text and uncodified text are in plain Arial font. Additions to Codes are in single-underline italics Times New Roman font. Deletions to Codes are in strikethreugh italics Times Nevv Reman font. Board amendment additions are in double-underlined Arial font. Board amendment deletions are in strikethrough Arial font. Asterisks (* * * *) indicate the omission of unchanged Code subsections or parts of tables. Be it ordained by the People of the City and County of San Francisco: Section 1. Findings. (a) The Planning Department has determined that the actions contemplated in this ordinance comply with the California Environmental Quality Act (California Public Resources Code Sections 21000 et seq.). Said determination is on file with the Clerk of the Board of Supervisors in File No. 160321 and is incorporated herein by reference. The Board affirms this determination. (b) On July 7, 2016, the Planning Commission, in Resolution No. 19690, adopted findings that the actions contemplated in this ordinance are consistent, on balance, with the City's General Plan and the eight priority policies of Planning Code Section 101.1. The Board Supervisors Kim, Mar BOARD OF SUPERVISORS Page 1 !adopts these findings as its own. A copy of said Resolution [OR determination] is on file with I !the Clerk of the Board of Supervisors in File No.160321, and is incorporated herein by reference. I (c) Pursuant to Planning Code Section 302, the Board of Supervisors finds that !these Planning Code amendments will serve the public necessity, convenience, and welfare I jfor the reasons set forth in Planning Commission Resolution No. 19690, and the Board incorporates such reasons herein by reference. Section 2. The Planning Code is hereby amended by revising Section 103, to read as follows: SEC. 103. HOUSING BALANCE MONITORING AND REPORTING. * * * * (c) Housing Balance Calculation. (1) For purposes of this Section 103, "Housing Balance" shall be defined as the proportion of all new housing units affordable to households of extremely low, very low, lowL or moderate income households, as defined in California Health & Safety Code Sections 50079.5 et seq., as such provisions may be amended from time to time, less the number of units removed from rent-controlled or below-market status, to the total number of all new housing units for a 1 O~year Housing Balance Period. (2) The Housing Balance Period shall begin with the first quarter of year 2005 to the last quarter of 2014, and thereafter for the ten years prior to the most recent calendar quarter. (3) For each year that data is available, beginning in 2005, the Planning Department shall report net housing construction by income levels, as well as units that have been withdrawn from protection afforded by City law, such as laws providing for rent- Supervisors Kim, Mar I BOARD OF SUPERVISORS Page2 controlled and single resident occupancy (SRO) units. The affordable housing categories shall include net new units, as well as existing units that were previously not restricted by deed or regulatory agreement that are acquired for preservation as permanently affordable housing as determined by the Mayor's Office of Housing and Community Development (MOHCD) (not including refinancing or other rehabilitation under existing ownership), protected by deed or I regulatory agreement for a minimum of 55 years. The report shall include, by year, and for the latest quarter, all units that have received Temporary Certificates of Occupancy within that year, a separate category for units that obtained a site or building permit, and another category for units that have received approval from the Planning Commission or Planning , Department, but have not vet-.l'ff_obtained a site or building permit to commence construction (except any entitlements that have expired and not been renewed during the Housing Balance Period). Master planned entitlements, including but not limited to such areas as Treasure Island, Hunters Point ShipyardL and Park Merced, shall not be included in this latter category I until individual building entitlements or site permits are approved for specific housing projects. For each year or approval status, the following categories shall be separately reported: (A) Extremely Low Income Units, which are units available to individuals or families making between 0-30% Area Median Income (AMI) as defined in California Health & Safety Code Section 50106, and are subject to price or rent restrictions between 0-30% AMI; I (B) Very Low Income Units, which are units available to individuals or families making between 30-50% AMI as defined in California Health & Safety Code Section 50105, and are subject to price or rent restrictions between 30-50% AMI; (C) Lower Income Units, which are units available to individuals or families making between 50-80% AMI as defined in California Health & Safety Code Section 50079.5, and are subject to price or rent restrictions between 50-80% AMI; Supervisors Kim, Mar BOARD OF SUPERVISORS Page 3 (D) Moderate Income Units, which are units available to individuals or !families making between 80-120% AMI and are subject to price or rent restrictions between 180-120% AMI; [ (E) Middle Income Units, which are units available to individuals or [families making between 120-150% AMI and are subject to price or rent restrictions between 1120-150% AMI; (F) Market-rate units, which are units not subject to any deed or regulatory agreement with price restrictions; (G) Housing units withdrawn from protected status, including units 1 O withdrawn from rent control (except those units otherwise converted into permanently affordable housing), including all units that have been subject to rent control under the San Francisco Residential Rent Stabilization and Arbitration Ordinance but that a property owner ' removes permanently from the rental market including but not limited to through owner move-in pursuant to Administrative Code Section 37.9(a){8), condominium conversion pursuant to Administrative Code Section 37.9(a)(9), demolition or alterations (including dwelling unit mergers), or permanent removal pursuant to Administrative Code Section 37.9(a)(10) or removal pursuant to the Ellis Act under Administrative Code Section 37.9(a)(13); (H) Public housing replacement units and substantially rehabilitated units through the HOPE SF and Rental Assistance Demonstration (RAD) programs, as well as other substantial rehabilitation programs managed by MOHCD. (4) The Housing Balance shall be expressed as a percentage, obtained by dividing the cumulative total of extremely low, very low, low,_ and moderate income affordable housing units (all units 0-120% AMI) minus the lost protected units described in subsection (c){3){G) above by the total number of net new housing units within the Housing Balance Period. The Housing Balance shall also provide two calculations: Supervisors Kim, Mar BOARD OF SUPERVISORS Page 4 (A) the Cumulative Housing Balance, consisting of housing units that have already been constructed (and received a Temporary Certificate of Occupancy or other I certificate that would allow occupancy of the units) within the 10-year Housing Balance Period, plus those units that have obtained a site or building permit. A separate calculation of Cumulative Housing Balance shall also be provided, w.hich includes HOPE SF and RAD public housing replacement and substantially rehabilitated units (but not including general rehabilitation/maintenance of public housing or other affordable housing units) that have received Temporary Certificates of Occupancy within the Housing Balance Period. The Housing Balance Reports will show the Cumulative Housing Balance with and without public 1 O housing included in the calculation; and (B) the Projected Housing Balance, which shall include any residential project that has received approval from the Planning Commission or Planning Department, even if the housing project has not yet obtained a site or building permit to commence construction (except any entitlements that have expired and not been renewed during the Housing Balance period). Master planned entitlements shall not be included in the calculation until individual building entitlements or site permits are approved. (d) Bi-annual Housing Balance Reports. By June 1, 2015, the Planning Department shall calculate the Cumulative and Projected Housing Balance for the most recent two quarters City-wide, by Supervisorial District, Plan Area, and by neighborhood Planning Districts, as defined in the annual Housing Inventory, and publish it as an easily visible and accessible page devoted to Housing Balance and Monitoring and Reporting on the Planning Department's website. By September October 1st and March April 1st of each year, the Planning Department shall publish and update the Housing Balance Report, and present this report at an informational hearing to the Planning Commission and Board of Supervisors, as well as to any relevant body with geographic purview over a plan area upon request, along Supervisors Kim, Mar BOARD OF SUPERVISORS Page 5 [with the other quarterly reporting requirements of Administrative Code Section 1 OE.4. The annual report to the Board of Supervisors shall be accepted by resolution of the Board, which resolution shall be introduced by the Planning Department. The Housing Balance Report shall also be incorporated into the Annual Planning Commission Housing Hearing and Annual Report to the Board of Supervisors required in Administrat.ive Code Section 1 OE.4. (e) Annual Hearing by Board of Supervisors. (1) The Board of Supervisors shall hold a public Housing Balance hearing on an annual basis by April 1~ of each year, to consider progress towards the City's affordable housing goals, including the goal of a minimum 33% affordable housing to low and moderate 1 O income households, as well as the City's General Plan Housing Element housing production goals by income category. The first hearing shall occur no later than 30 days after the effective date of this ordinance, and by April 1 of each year thereafter. (2) The hearing shall include reporting by the Planning Department, which shall present the latest Housing Balance Report City-wide and by Supervisorial District and Planning District; the Mayor's Office of Housing and Community Development, the Mayor's Office of Economic and Workforce Development, the Rent Stabilization Board, by the Department of Building Inspection, and the City Economist on strategies for achieving and maintaining a housing balance in accordance with San Francisco's housing production goals. If the Cumulative Housing Balance has fallen below 33% in any year, MOHCD shall determine how much funding is required to bring the City into a minimum 33% Housing Balance and the Mayor shall submit to the Board of Supervisors a strategy to accomplish the minimum of 33% Housing Balance. City Departments shall at minimum report on the following issues relevant to the annual Housing Balance hearing: MOHCD shall report on the annual and projected progress by income category in accordance with the City's General Plan Housing Element housing production goals, projected shortfalls and gaps in funding and site control, and Supervisors Kim, Mar BOARD OF SUPERVISORS Page 6 I [progress toward the City's Neighborhood Stabilization goals for acquiring and preserving the affordability of existing rental units in neighborhoods with high concentrations of low and moderate income households or historically high levels of evictions; the Planning Department shall report on current and proposed zoning and land use policies that affect the City's 1General Plan Housing Element housing production goals; the Mayor's Office of Economic and i Workforce Development shall report on current and proposed major development projects, . dedicated public sites, and policies that affect the City's General Plan Housing Element housing production goals; the Rent Board shall report on the withdrawal or addition of rent- controlled units and current or proposed policies that affect these numbers; the Department of Building Inspection shall report on the withdrawal or addition of Residential Hotel units and current or proposed policies that affect these numbers; and the City Economist shall report on annual and projected job growth by the income categories specified in the City's General Plan Housing Element. (3) All reports and presentation materials from the annual Housing Balance hearing shall be maintained by year for public access on the Planning Department's website on its page devoted to Housing Balance Monitoring and Reporting. Section 3. Effective Date. This ordinance shall become effective 30 days after enactment. Enactment occurs when the Mayor signs the ordinance, the Mayor returns the I ordinance unsigned or does not sign the ordinance within ten days of receiving it, or the Board I 1 of Supervisors overrides the Mayor's veto of the ordinance Section 4. Scope of Ordinance. In enacting this ordinance, the Board of Supervisors intends to amend only those words, phrases, paragraphs, subsections, sections, articles, numbers, punctuation marks, charts, diagrams, or any other constituent parts of the Municipal Supervisors Kim, Mar BOARD OF SUPERVISORS Page 7 Code that are explicitly shown in this ordinance as additions, deletions, Board amendment additions, and Board amendment deletions in accordance with the "Note" that appears under the official title of the ordinance. APPROVED AS TO FORM: DENNIS J. HERRERA, City Attorney ~- ~ \ ~.<::--:.._~ .· By: ( \ ) . R~ JUDJTH A. BOYAJIAN Deputy City Attorney n:\legana\as2016\1600637\01136659.docx Supervisor Kim BOARD OF SUPERVISORS Page 8 City and County of San Francisco Tails Ordinance City Hall I Dr. Carlton B. Goodlett Place San Francisco, CA 94102-4689 File Number: 160321 Date Passed: October 04, 2016 Ordinance amending the Planning Code to require inclusion in the Housing Balance Report data about the withdrawal of housing units from the rental market by all means, including owner move-ins; affirming the Planning Department's determination under the California Environmental Quality Act; and making findings of consistency with the General Plan, and the eight priority policies of Planning Code, Section 101.1, and findings of public convenience, necessity, and welfare under Planning Code, Section 302. September 19, 2016 Land Use and Transportation Committee -AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE September 19, 2016 Land Use and Transportation Committee - RECOMMENDED AS AMENDED September 27, 2016 Board of Supervisors - PASSED ON FIRST READING Ayes: 10 - Breed, Campos, Cohen, Farrell, Kim, Mar, Peskin, Tang, Wiener and Yee Excused: 1 - Avalos October 04, 2016 Board of Supervisors - FINALLY PASSED Ayes: 11 - Avalos, Breed, Campos, Cohen, Farrell, Kim, Mar, Peskin, Tang, Wiener and Yee File No. 160321 I hereby certify that the foregoing Ordinance was FINALLY PASSED on 10/4/2016 by the Board of Supervisors of the City and County of San Francisco. Date Approved City and County of San Frm1cisco Page2 Printed at 9:45 am on 1015116