321.2

SEC. 321.2. LEGISLATIVE REDUCTION OF ANNUAL LIMIT. The Board of Supervisors is permitted to reduce the annual limit defined in Subsection 321(a)(1).

(Added by Proposition M, 11/4/86) SEC. 321.3. VOTER APPROVAL OF EXEMPTIONS OF OFFICE PROJECTS AUTHORIZED BY DEVELOPMENT AGREEMENTS. Any office development approved pursuant to a development agreement under Government Code Section 65865 or any successor Section may only be exempted from the annual limit set forth in Subsection 321(a)(1) after the exemption for such office development has been approved by the voters at a regularly scheduled election. (Added by Proposition M, 11/4/86) SEC. 321.4. CONVERTED SQUARE FOOTAGE; ANNUAL LIMIT INCREASE. (a) Definitions. For purposes of this Section 321.4, the following terms have the following meanings: “Converted Square Footage” means the total converted or demolished gross floor area of Office Space associated with a project that received on or after January 1, 1986: (1) a First Certificate of Occupancy authorizing the change of use of at least 10,000 square feet of gross floor area from Office Space to a non-office use, or (2) a completed permit, including any final inspections, to demolish at least 10,000 square feet of gross floor area of Office Space. “Converted Square Footage” includes the gross floor area associated with any approved Office Space, regardless of the type of Project Authorization approved for the Office Space, or if the Office Space was approved prior to November 29, 1984. “First Certificate of Occupancy” has the meaning set forth in Section 401, as amended from time to time. (b) Increases to Annual Limit. (1) For any projects that convert or demolish Office Space on or after March 5, 2024, the Planning Department shall track the total Converted Square Footage resulting from the conversions and demolitions during each Approval Period, and add the total Converted Square Footage to the Large Cap Maximum annually. (2) For any project that converted or demolished office space before March 5, 2024, the Large Cap Maximum shall be increased by the total Converted Square Footage of such projects no later than the Approval Period beginning October 17, 2024, consistent with the procedures in subsection (c), including any adjustments pursuant to subsection (c)(2). (3) Any Converted Square Footage calculated pursuant to subsections (b)(1)-(2) of this Section 321.4 shall be treated the same as the newly available office development pursuant to Section 321(a)(1)(A), including being carried over to the next Approval Period; however, pursuant to Section 321(a)(1)(D), such Converted Square Footage shall not be subject to the reductions set forth in Section 321(a)(1)(C). (c) Administration. (1) No later than September 1, 2024, the Zoning Administrator shall publish an inventory of projects that converted or demolished Office Space between January 1, 1986 and March 5, 2024 (“Inventory”), inclusive, and the Converted Square Footage proposed to be added to the Large Cap Maximum for the Approval Period beginning October 17, 2024. The Zoning Administrator shall provide the public with an opportunity for meaningful review and comment on the Inventory. Following public review and comment, the Zoning Administrator shall adopt the Inventory, including any revisions, pursuant to the standard set forth in subsection (c)(3) of this Section 321.4. The Zoning Administrator shall then update the Large Cap Maximum accordingly. (2) Should the Zoning Administrator identify additional Converted Square Footage after the deadlines specified in subsection (c)(1), the Zoning Administrator shall publish an updated Inventory. Following public review and comment, the Zoning Administrator shall adopt the updated Inventory, including any revisions, pursuant to the standard set forth in subsection (c) (3) of this Section 321.4. The new Converted Square Footage shall be added to the Large Cap Maximum for the Approval Period following final approval of the updated Inventory. (3) In determining whether Converted Square Footage was lawfully converted or demolished for the purposes of this Section 321.4, the Zoning Administrator shall presume that such space was lawfully converted or demolished unless there is clear and convincing evidence otherwise. (4) The Zoning Administrator is authorized to adopt such rules and regulations as the Zoning Administrator determines are appropriate to carry out the purposes and provisions of this Section 321.4, including but not limited to the process for verifying increases to the Large Cap Maximum resulting from any Converted Square Footage. (d) Loss of Existing Office Space. Upon the issuance of a First Certificate of Occupancy or completed demolition permit for a project that converted or demolished Office Space, the amount of Preexisting Office Space on the site shall be reduced by the amount of Converted Square Footage that was returned to the Large Cap Maximum. (Added by Proposition C, 3/5/2024, Eff. 4/12/2024) SEC. 322. PROCEDURE FOR ADMINISTRATION OF OFFICE DEVELOPMENT LIMIT. (a) Project Authorization Required. During the approval period, every site or building permit application for an office development must, before final action on the permit, include a copy of a project authorization for such office development, certified as accurate by the Planning Department. No such application shall be considered complete and the Department of Building Inspection shall not issue any such site or building permit unless such a certified copy is submitted. No site or building permit shall be issued for an office development except in accordance with the terms of the project authorization for such office development. Any such site or building permit which is inconsistent with the project authorization shall be invalid. (b) Application for Project Authorization. During the approval period, an applicant for approval of an office development shall file an application for a project authorization with the Planning Department contemporaneously with the filing of an application for environmental evaluation for such development. Such application shall state such information as the Planning Department shall require; provided, however, that an application for a project authorization for each office development for which an environmental evaluation application has been filed prior to the effective date of this Section, shall be deemed to have been filed effective as of the date such environmental evaluation application was filed. (c) Processing of Applications. (1) The approval period shall be divided into such review periods as the Planning Commission shall provide by rule. The first review period shall commence on the effective date. (2) Applications for project authorizations shall be considered by the Planning Commission during a specific review period in accordance with the following procedures: (A) During a specific review period the Planning Commission shall consider all project authorization applications for which, prior to the first day of such review period, a final Environmental Impact Report has been certified, or a final Negative Declaration has been issued, or other appropriate environmental review has been completed; provided, however, that during the first review period, the Planning Commission shall consider only those office developments for which (i) an environmental evaluation application and a site or building permit application were submitted prior to June 1, 1985, or (ii) a draft environmental impact report or a preliminary negative declaration was published prior to the effective date. (B) The Planning Commission may hold hearings on all project authorization applications assigned to a specific review period before acting on any such application. (C) In reviewing project authorization applications, the Planning Commission shall apply the criteria set forth in Section 321, and shall, prior to the end of such a review period, approve, deny, or, with the consent of the applicant, continue to the next subsequent review period each such application based on said criteria. (D) Notwithstanding any other provisions of this Section or Section 321, the Planning Commission may at any time, after a noticed hearing, deny or take other appropriate action with respect to any application for a project authorization as to which environmental review, in the judgment of the Commission, has not been or will not be completed in sufficient time to allow timely action under applicable law. (E) Any project authorization application which is denied by the Planning Commission, unless such denial is reversed by the Board of Appeals or Board of Supervisors, shall not be resubmitted for a period of one year after denial. (d) Appeal of Project Authorization. The Planning Commission’s determination to approve or deny the issuance of a project authorization may be appealed to the Board of Appeals within 15 days of the Commission’s issuance of a dated written decision pursuant to the procedural provisions of Section 308.2 of this Code, except in those cases where either (i) a conditional use application was filed, or (ii) the project would proceed under terms of a development agreement authorized by Government Code Section 65865 or any successor section. In such case, the decision of the Planning Commission may be appealed only to the Board of Supervisors pursuant to Section 308.1 of this Code. The decision on the project authorization by the Board of Appeals or Board of Supervisors shall be the final administrative determination as to all matters relating to the approval of the office development that is the subject of the project authorization, except for matters, not considered in connection with the project authorization, which arise in connection with a subsequent building or site permit application for the development in question. (e) Modification of Project Authorization. The Planning Commission may approve a modified project authorization, after a noticed hearing, during the review period in which the