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[FILE NO. 160510 ORDINANCE NO. 245-16 I I ![Planning Code - Student Housing Exemption from lnclusionary Housing Requirements] I ,Ordinance amending the Planning Code to change the requirement from five to two years that Student Housing be owned or leased by an educational institution to be exempt from the lnclusionary Housing Program; affirming the Planning Department's determination under the California Environmental Quality Act; and making findings of public necessity, convenience, and welfare under Planning Code, Section 302, and 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 font. Deletions to Codes are in strikethrough italics Times }few Romfln font. 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. Findings. The Board of Supervisors of the City and County of San Francisco hereby finds and determines that: (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 I Supervisors in File No. 160510 and is incorporated herein by reference. The Board affirms I 1this determination. (b) On September 8, 2016, the Planning Commission, in Resolution No. 19731, adopted findings that the actions contemplated in this ordinance are consistent, on balance, Supervisor Wiener BOARD OF SUPERVISORS Page 1 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 Board of Supervisors in File No. 160510, and is incorporated herein by reference. (c) On September 8, 2016, the Planning Commission, in Resolution No. 19731, approved this ordinance, recommended it for adoption by the Board of Supervisors, and adopted findings that it will serve the public necessity, convenience, and welfare. Pursuant to Planning Code Section 302, 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. 160510, and is incorporated herein by reference. Section 2. The Planning Code is hereby amended by revising Section 415.3(c)(5), to read as follows: SEC. 415~3. APPLICATION. * * * * (c) Section 415.1 et seq., the lnclusionary Housing Program, shall not apply to: * * * * (5) A Student Housing project that meets all of the following criteria: (A) The building or space conversion does not result in loss or conversion of existing housing, including but not limited to rental housing and dwelling units; (B) An institutional master plan (IMP) pursuant to Section 304.5 is on file with the Planning Department prior to the issuance of any building permit or alteration permit in connection with the creation of the Student Housing project, and, in addition to the requirements of Section 304.5, such IMP shall describe: (i) to the extent such information is available, the type and location of housing used by its students; Supervisor Wiener BOARD OF SUPERVISORS Page 2 (ii) any plans for the provision of Student Housing; and (iii) the Educational Institution's need for student housing to support its program; and (iv) the percentage of its students, on an average annual basis, that receive some form of need-based assistance as described in (113B). (C) The Mayor's Office of Housing and Community Development (MOH CD) 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 1 O real property and each Post-Secondary Educational Institution or Institutions shall agree to submit annual documentation to the }Jayor's Office ofHousing (MOHCDi and the Planning Department, on or before December 31 of each year, that addresses the following: (i) Evidence that the Post-Secondary Educational Institution continues to own or otherwise control the Student Housing project under a master lease or other contractual agreement with at least a .§two-year term, including a certificate from the owner of the real property and the Post-Secondary Educational Institution attaching a true and I complete copy of the master lease or other contractual agreement (financial information may be redacted) and certifying that the lease or contract has not otherwise been amended or terminated; and (ii) Evidence, on an average annualized basis, of the percentage of students in good standing enrolled at least half time or more in the pEost-sSecondary Educational Institution or Institutions who are occupying the beds or accessory living space in the Student Housing project; and Supervisor Wiener BOARD OF SUPERVISORS Page 3 (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: The Post-Secondary Educational Institution, or the owner of the real property on its behalf, must file a statement with the Department if it intends to terminate the Student Housing project at least 60 days before it terminates such use ("statement of termination"); The Student Housing project becomes subject to the lnclusionary Housing Ordinance requirements applicable to Housing Projects other than 1 O Qualified Housing Projects if (1) a Post-Secondary Educational Institution files a statement of termination with the Department and another pfost-sSecondary Educational Institution or Institutions have not been substituted or obligated to meet the requirements of this subsection; or (2) the owner of the real property or the fpost-Ssecondary Educational Institution fails to file a statement of termination and fails to meet the requirements for a Student Housing project, then within not more than one year of a Notice Of Violation issued by the Planning Department; If units in a Student Housing project become subject to the lnclusionary Housing Ordinance then the owner of those units shall (1) pay the Affordable Housing Fee plus interest from the date the project received its first construction document for the project if there is no evidence the F.Qroject ever qualified as Student Housing or, if Student Housing was provided and occupied, then the Affordable Housing Fee with no interest is due on the date the units were no longer occupied by qualifying households and interest would accrue from that date if the fee is not paid; or (2) provide the required number of on-site affordable units required at time of original project approval and that those units shall be subject to all of the requirements of this Program. In this event, the owner of the real 'I Supervisor Wiener BOARD OF SUPERVISORS Page4 property shall record a new NSR providing that the designated units must comply with all of the requirements of this Program. The Post-Secondary Educational Institution is required to report annually as required in Subsection (£1_(,U(C) above; The City may commence legal action against the I owner and/or Post-Secondary Educational Institution to enforce the NSR and the terms of Article IV of the Planning Code and Planning Code Section 415 et seq. if it determines that the project no longer meets the requirements for a Student Housing project; and The Student Housing project may be inspected by any City employee to determine its status as a Student Housing project and its compliance with the requirements o(this Code is Section at any time upon at least 24 hours' prior notice to the owner of the real property or to the master lessee. * * * * Section 3. Effective Date. This ordinance shall become effective 30 days after enactment. Enactment occurs when the Mayor signs the ordinance, the Mayor returns the ordinance unsigned or does not sign the ordinance within ten days of receiving it, or the Board of Supervisors overrides the Mayor's veto of the ordinance. Section 4. Scope of Ordinance. In enacting this ordinance, the Board of Supervisors intends to amend only those words, phrases, paragraphs, subsections, sections, articles, numbers, punctuation marks, charts, diagrams, or any other constituent parts of the Municipal Code that are explicitly shown in this ordinance as additions, deletions, Board amendment additions, and Board amendment deletions in accordance with the "Note" that appears under the official title of the ordinance. Supervisor Wiener BOARD OF SUPERVISORS Page 5 ! APPROVED AS TO FORM: DENNIS J. HERRERA, City Attorney lsy n:\legana\as2016\1600645\01104945.docx Supervisor Wiener BOARD OF SUPERVISORS Page6 City and County of San Francisco Tails Ordinance City Hall I Dr. Carlton B. Goodlett Place San Francisco, CA 94102-4689 File Number: 160510 Date Passed: December 06, 2016 Ordinance amending the Planning Code to change the requirement from five to two years that Student Housing be owned or leased by an educational institution to be exempt from the lnclusionary Housing Program; affirming the Planning Department's determination under the California Environmental Quality Act; and making findings of public necessity, convenience, and welfare under Planning Code, Section 302, and of consistency with the General Plan, and the eight priority policies of Planning Code, Section 101.1. November 14, 2016 Land Use and Transportation Committee - RECOMMENDED November 29, 2016 Board of Supervisors - PASSED, ON FIRST READING Ayes: 11 - Avalos, Breed, Campos, Cohen, Farrell, Kim, Mar, Peskin, Tang, Wiener and Yee December 06, 2016 Board of Supervisors - FINALLY PASSED Ayes: 1 O - Avalos, Breed, Campos, Cohen, Farrell, Kim, Mar, Peskin, Tang and Yee File No. 160510 I hereby certify that the foregoing Ordinance was FINALLY PASSED on 12/6/2016 by the Board of Supervisors of the City and County of San Francisco. Date Approved City a11d Cou11ty of Sa11 Fra11cisco Page3 Pri11ted at 1:19 pm 0111217116