o0292-24

FILE NO. 230596 AMENDED IN COMMITTEE 12/2/2024 ORDINANCE NO. 292-24 [Planning Code - Conditional Use Minimum Densities for Residential Projects in RM, RC, and RTO Districts] Ordinance amending the Planning Code to require oonditional use authorization for residential housing developments that do not maximize minimum residential density, as defined, in Residential-Mixed (RM), Residential Commercial (RC), and Residential Transit Oriented (RTO) Districts except for Residential-Transit Oriented - Mixed Mission (RTO-M) Districts; affirming the Planning Department's determination under the California Environmental Quality Act;-aAd making findings of consistency with the General Plan and the eight priority policies of Planning Code Section 101.1. and making findings of public necessity. convenience. and welfare pursuant to 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 iff:l:lics Til'nes }lcw Roman font. Board amendment additions are in d • • Board amendment deletions are in SH-i~~i:H:ff:Jf-hl-\+ti:iH-Httt. 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 Planning Code 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. 230596 and is incorporated herein by reference. The Board affirms this determination. Supervisors Peskin; Chan BOARD OF SUPERVISORS Page 1 (b) On July 20, 2023, the Planning Commission, in Resolution No. 21364, 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. 230596, and is incorporated herein by reference. (c) Pursuant to Planning Code Section 302, the Board of Supervisors find that this ordinance will serve the public necessity, convenience, and welfare for the reasons set forth in Planning Commission Resolution No. 21364, and incorporates such reasons by this reference thereto. A copy of said resolution is on file with the Clerk of the Board of Supervisors in File No. 230596. Section 2. General Findings. (a) In recent decades, the rate of housing production in San Francisco has failed to keep pace with the growing demand for housing in the City and in the broader Bay Area. As a result, housing is unaffordable to many City residents, and there have been waves of evictions and displacement, largely to the detriment of long-term residents and lower-income communities. (b) Policymakers at the City and state level have sought to increase housing density both in San Francisco and across the state. For example, San Francisco's Citywide Accessory Dwelling Unit Program, which applies to existing structures and new construction, allows for the increased densification of residential and mixed-use neighborhoods and zoning districts. Section 207(c)(8) of the Planning Code, enacted in 2022, increased density to allow four units, or six units on corner lots, in Residential-Housing (RH) zones in certain circumstances. And California Government Code Sections 65852.21 and 664117 require Supervisors Peskin; Chan BOARD OF SUPERVISORS Page 2 ministerial approval of two units in single-family zoning districts and lot splits in single-family districts, respectively. (c) While significant emphasis has been placed on increasing the capacity for increased housing density in residential and mixed-use zoning districts, and to remove various substantive and procedural restrictions on the construction of affordable housing in particular, comparatively little emphasis has been placed on setting density minimums and prohibiting the creating disincentives for construction of low-density projects in zoning districts that allow for greater density. (d) The construction of large residences and low-density buildings in areas that are zoned for greater density and that tend to be characterized by higher density, more affordable, and rent-stabilized housing, is indicative of a market preference for demonstrably unaffordable housing. (e) The construction of large residences and low-density buildings in zoning districts that permit greater capacity for housing density, such as Residential-Commercial (RC), Residential - Mixed (RM), and Residential - Transit Oriented (RTO) districts, is at the expense of opportunities for more units, and more affordable housing, and frequently results in the loss or conversion of housing protected by rent stabilization provisions of the San Francisco Rent Ordinance. (f) Objective 4B of San Francisco's 2022 Housing Element is to "expand small and mid-rise multi-family housing production to serve our workforce, prioritizing middle-income households." (g) The~ October 2024 Housing Balance Report, produced by the Planning Department pursuant to Section 103 of the Planning Code, indicates that for the period from 2010 Quarter 1 to 2019 Quarter 4 2013 Quarter 1 to 2024 Quarter 2, +-;-0&1-10.153 units of net Supervisors Peskin; Chan BOARD OF SUPERVISORS Page 3 new affordable housing have been built in San Francisco while~ 2,722 units have been removed from protected status, a ratio of just~ 3.73 units built for every 1 unit lost. (h) The loss of affordable and rent controlled housing is driven in part by the demolition, merger, and conversion of such housing, and its replacement with market rate housing and large single-family homes in zoning districts that permit increased capacity for housing density. (i) To address the loss of affordable and rent controlled housing and the construction of large single-family homes in zoning districts that allow greater density, in January 2021, the Board of Supervisors adopted interim controls to require projects that did not maximize the number of units on a lot to seek conditional use authorization. The Planning Department issued a report studying the interim controls and recommended permanent legislation to address the issues posed by large residential developments that do not maximize the allowable density. The Board has reviewed and considered the Planning Department report, and proposes the controls as set forth in this ordinance. U) This ordinance will facilitate and encourage the development of multi-family housing in zoning RM, RC, and RTO districts. By incentivizing requiring the creation of mefe the maximum number of units on a parcel, the cost per unit of housing will be reduced. Similarly, the ordinance will preserve and facilitate the construction of housing for moderate- and lower- income households by requiring the preservation of existing units unless the minimum number of units on a subject lot will be constructed. incentivizing the creation of additional units on a subject lot. Units in multi-family housing are generally lower in price per square foot than units in a comparably sized single-family home. Therefore, by creating more multi-family units, rather than large single-family homes in areas where multi-family tl-R+ts buildings are allowed, the price per square foot of each unit will be lower and more affordable to lower;;;and moderate;;;income households. Supervisors Peskin; Chan BOARD OF SUPERVISORS Page 4 (k} Likewise, as density increases, per capita water and energy use, stormwater runoff, and air pollutant and greenhouse gas emissions are reduced. In addition, multi-modal travel becomes more feasible, improving choices for non-drivers, as well as cost savings for households. Finally, dense residential development lowers per capita infrastructure capital and operating costs, and increases tax revenue per acre. Section 3. Articles l ~ of the Planning Code is are hereby amended by revising Sections 209.2, 209.3, and 209.4, and 303, to read as follows: SEC. 209.2. RM (RESIDENTIAL, MIXED) DISTRICTS. * * * * Table 209.2 ZONING CONTROL TABLE FOR RM DISTRICTS Zoning § References RM-1 Category * * * * RESIDENTIAL STANDARDS AND USES Residential Uses Residential § 207 Density, Dwelling Units (7) Supervisors Peskin; Chan BOARD OF SUPERVISORS P if3 units per lot or up le at least one unit per 800 1067 square feet RM-2 RM-3 RM-4 P if3 units P i[3 units P if 3 units per per lot or up per lot or up lot or ttp-te at le at least le at least least one unit one unit per one unit per per~ 267 W0800 400 533 square feet of square feet square feet lot area,. Page 5 of lot area,_ of lot area,_ of lot area,_ whichever is whichever is whichever is whichever is greater. Total greater. greater. greater. Total maximum Total Total maximum permitted maximum maximum permitted density is one . permitted permitted density is unit per 200 density is density is one unit per square feet of one unit per one unit per 400 square lot area. (8)Jl.ll 800 square 600 square feet of lot feet of lot feet of lot area {lll area. on area. {111 * * * * * * * * * * * * * * * * * * * * * * * * * * * * {lJj_C per Section 303(cc) if the residential building does not maximize principally permitted density, while meeting minimum unit size requirements set forth in Section 415.6(f)(2), except as set forth in section 303(cc)(1 ). NP if less than minimum density as set forth in the table. Expansions of existing single-family residential buildings may not exceed more than 25% of Gross Floor Area over 10 years, or result in a building over 3,000 square feet. In new construction, no unit may be smaller than one-third the Gross Floor Area of the largest unit in the building. SEC. 209.3. RC (RESIDENTIAL-COMMERCIAL) DISTRICTS. * * * * Table 209.3 ZONING CONTROL TABLE FOR RESIDENTIAL-COMMERCIAL DISTRICTS Supervisors Peskin; Chan BOARD OF SUPERVISORS Page 6 Zoning § References RC-3 RC-4 Category * * * * RESIDENTIAL STANDARDS AND USES Development Standards Residential §207 P if3 units per lot or P if 3 units per lot or -up-te Density, Dwelling -up-teat least one unit at least one unit per 2-00 Units (7), {111 per 400-533 square 267 square feet of lot feet of lot area,. area, whichever is greater. whichever is greater. Total maximum permitted Total maximum density is one unit per 200 permitted density is square feet of lot area. No one unit per 400 density limits in the Van square feet of lot Ness SUD (§243). (8)J111 area. 031 * * * * * * * * (l}J_C per Section 303(cc) if the residential building does not maximize principally permitted residential density, 1.vhile meeting minimum unit size requirements set forth in Section 415.6(f)(2), except as set forth in section 303(cc)(1 ). NP if less than minimum density as set forth in the table. Expansions of existing single-family residential buildings may not exceed more than 25% of Gross Floor Area over 10 years, or result in a building over 3,000 square feet. In new construction, no unit may be smaller than one-third the Gross Floor Area of the largest unit in the building. Supervisors Peskin; Chan BOARD OF SUPERVISORS Page 7 SEC. 209.4. RTO (RESIDENTIAL TRANSIT ORIENTED) DISTRICTS. * * * * Table 209.4 ZONING CONTROL TABLE FOR RTO DISTRICTS Zoning § References RTO Category * * * * RESIDENTIAL STANDARDS AND USES * * * * Residential Uses Residential Density, Dwelling Units (7) * * * * Supervisors Peskin; Chan BOARD OF SUPERVISORS §207 P if at least ttp-te one unit per eOO 800 square feet of lot area (8),. Maximum density as of right is one unit per 600 square feet of lot area. C abme belmu above, per criteria of §207(a).1Lll RTO-M No density limit. Density is regulated by the permitted height and bulk, and required setbacks, exposure, and open space of each parcel, along with Residential Design Guidelines. Page 8 {lll_C per Section 303(cc) if the residential building does not maximize principally permitted residential density, 11.1hile meeting minimum unit size requirements set forth in Section 415.6(f)(2), except as set forth in section 303(cc)(1 ). NP if less than minimum density as set forth in the table. Expansions of existing single-family residential buildings may not exceed more than 25% of Gross Floor Area over 10 years, or result in a building over 3,000 square feet. In new construction. no unit may be smaller than one-third the Gross Floor Area of the largest unit in the building. SECTION 303. CONDITIONAL USES. (a) General. The Planning Commission shall hear and make determinations regarding applications for the authorization of Conditional Uses in the specific situations in which such authorization is provided for elsewhere in this Code. The procedures for Conditional Uses shall be as specified in this Section 303 and in Sections 306 through 306.6, except that Planned Unit Developments shall in addition be subject to Section 304, Hospitals and Post- Secondary Educational Institutions shall in addition be subject to the Institutional Master Plan requirements of Section 304.5. * * * * (cc) Maximizing Density in RM, RC, and RTO Districts. (1) In order to promote, protect, and maintain the maximum number of residential units in RM, RC, and RTO Districts, except for RTO M Districts, new construction or alterations of existing buildings that do not meet the maximum principally permitted residential density as set forth in Tables 209.2, 209.3, and 209.4, respectively, v.ihile meeting the minimum unit size requirements set forth in Planning Code Section 415.6(f)(2), shall be permitted only as a Conditional Use. The maximum principally permitted residential density Supervisors Peskin; Chan BOARD OF SUPERVISORS Page 9 shall not include any additional density permitted under state la•.v or Planning Code sections 206 et seq. Notwithstanding the preceding sentence, a project meeting one of the follmving exceptions to this Section 303(cc) shall not require a Conditional Use: (A) The project includes new construction or alteration of an existing building and meets all of the following conditions: (i) existing lot conditions or form based restrictions on development (e.g., height, bulk, rear yard requirements) are such that a proposed project cannot maximize density without seeking a variance or subdividing existing units on the lot because it is physically inf.easible to do so; and (ii) the proposed project •.viii create more units on the subject lot; (iii) the project does not include any single unit greater than 2,000 square feet in size; and (iv) the project is not subject to Conditional Use Authorization under any other provision of the Planning Code. (B) The project is an expansion of an existing residential building that 'Nould increase the total square footage of the residential building by no more than 25% of the square footage of the existing residential building, and meets all of the following requirements: (i) the expansion does not increase the size of any unit that is already larger than 2,000 square f.eet; and (ii) the expansion does not create any new unit that is greater than 2,000 square feet; and (iii) the expansion \Nould not cause an existing unit that is less than 2,000 square feet to be larger than 2,000 square f.eet. Supervisors Peskin; Chan BOARD OF SUPERVISORS Page 10 (C) For a project consisting of an expansion to a building 1.vith two or more units, no resulting individual unit 1.vould be greater than 3,000 square feet, and no resulting individual unit would be less than 50% of the size of the largest unit in the building. (D) For any project consisting of an expansion to an existing building of 600 square feet or less. (E) For any project where maximizing density would be inconsistent 1.vith the preservation of a historic resource or would preclude the issuance of a Certificate of Appropriateness under Article 10 of this Code. (2) In addition to the findings stated in Section 303(c), the Commission shall make the follo111ing findings: (/\) The project proposes the maximum physically feasible density based on existing lot conditions or form based restrictions on development (e.g. height, bulk, rear yard requirements); and (B) The project proposes additional density equal to that of adjacent buildings; and (C) Maximizing density is financially or physically infeasible. Section 4. 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 5. 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 Peskin; Chan BOARD OF SUPERVISORS Page 11 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: Isl Audrey Pearson AUDREY PEARSON Deputy City Attorney n:\legana\as2023\2300223\01803203.docx Supervisors Peskin; Chan BOARD OF SUPERVISORS Page 12 City and County of San Francisco Tails Ordinance City Hall l Dr. Carlton B. Goodlett Place San Francisco, CA 94102-4689 File Number: 230596 Date Passed: December 17, 2024 Ordinance amending the Planning Code to require minimum residential density, in Residential-Mixed (RM), Residential Commercial (RC), and Residential Transit Oriented (RTO) Districts except for Residential-Transit Oriented - Mission (RTO-M) Districts; 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 public necessity, convenience, and welfare pursuant to Planning Code, Section 302. September 11, 2023 Land Use and Transportation Committee - CONTINUED TO CALL OF THE CHAIR December 02, 2024 Land Use and Transportation Committee - AMENDED, AN AMENDMENT OF THE WHOLE BEARING NEW TITLE December 02, 2024 Land Use and Transportation Committee - CONTINUED AS AMENDED December 09, 2024 Land Use and Transportation Committee - RECOMMENDED AS COMMITTEE REPORT December 10, 2024 Board of Supervisors - PASSED, ON FIRST READING Ayes: 10 - Chan, Dorsey, Engardio, Mandel man, Melgar, Peskin, Preston, Ronen, Safai and Walton December 17, 2024 Board of Supervisors - Fl NALLY PASSED City and County of San Francisco Ayes: 9 - Dorsey, Engardio, Mandelman, Melgar, Peskin, Preston, Ronen, Safai and Walton Excused: 1 - Chan Pagel Printed at 9:II amon 12/18/24 File No. 230596 London N. Breed Mayor City and Coullty of San Francisco Page2 I hereby certify that the foregoing Ordinance was Fl NALLY PASSED on 12/17/2024 by the Board of Supervisors of the City and County of San Francisco. Angela Calvillo Clerk of the Board Date Approved Printed at 9: 11 am on 12/18/24