344

SEC. 344. HOUSING CHOICE HOUSING SUSTAINABILITY DISTRICT. (a) Purpose. This Section 344 establishes the Housing Choice - San Francisco Housing Sustainability District (“HSD”) under California Government Code Sections 66200 et seq. The purpose of the HSD is to encourage the development of on-site affordable housing in new residential and mixed-use projects by providing a streamlined, ministerial approval process for such projects. This Section 344 sets forth eligibility criteria, design review standards, and entitlement and approval procedures for projects seeking approval pursuant to the HSD. (b) Geography. The HSD shall be comprised of all parcels, other than those zoned as RH or RM, in the R-4 Height and Bulk District. (c) Relationship to Other Planning Code Provisions. Except as otherwise provided in this Section 344, the Planning Code shall apply to projects approved pursuant to this Section 344. In the event of a conflict between other provisions of the Planning Code and this Section 344, this Section shall control. (d) Eligibility. Projects seeking approval pursuant to this Section 344 shall meet all of the following requirements: (1) The project is located in a zoning district where Residential uses are principally permitted. (2) For Dwelling Unit projects, the project’s residential density is no less than 50 Dwelling Units per acre, and no more than 1,000 Dwelling Units per acre. (3) At least one-half of the project’s Gross Floor Area is designated for Residential uses. All proposed Non-Residential uses must be principally permitted in the underlying zoning district and any applicable SUD(s). The project shall not include more than 24,999 square feet of Gross Floor Area of Office use that would be subject to the annual limit on office development set forth in Sections 321 et seq.

(4) The project does not demolish or substantially alter a historic resource that is: designated as a landmark or listed as a contributor to or located within a historic district under Article 10; listed as a Significant or Contributory Building under Article 11; listed in the California Register of Historical Resources or the National Register of Historic Places; identified in an adopted survey or historic context statement as potentially eligible for individual listing in the California Register of Historical Resources or the National Register of Historic Places; or, located within an historic district that is listed in, or identified in an adopted survey or historic context statement as potentially eligible for listing in, the California Register of Historical Resources or the National Register of Historic Places. (5) Consistent with California Government Code Section 66201(f), the project shall provide no less than 10% of dwelling units as units affordable to very low or low income households. A project subject to Section 415 may apply any such affordable units towards its compliance with Section 415. Projects not subject to Section 415 shall enter into a regulatory agreement with the City to restrict the affordability of any such units for no less than 55 years. (6) The project does not demolish, remove, or convert to another use any existing Dwelling Unit(s), or Residential Flat. (7) The project complies with all applicable Planning Code requirements and any adopted Objective Standards. Projects seeking approval pursuant to this Section 344 may not seek any exceptions to height and bulk limits pursuant to Section 309(a)(17). (8) The project sponsor complies with all applicable mitigation measures in the Housing Element 2022 Update Environmental Impact Report (“Housing Element EIR”). (9) The project sponsor certifies that the project will comply with all applicable requirements of California Government Code Section 66201(f)(4). (10) The project complies with the requirement of Government Code Section 66201(f)(5). (11) The project provides relocation assistance to any displaced residential tenants. (12) A project is not deemed to be for residential use if it is infeasible for actual use as a single or multifamily residence. (13) The project does not demolish or convert any portion of a Hotel. (e) Approving Authority. The Planning Department is the approving authority designated to review permit applications for compliance with this Section 344. (f) Application. In addition to any requirements under other provisions of this Code for submittal of application materials, an application under this Section 344 shall be submitted to the Department on a form prescribed by the Department and shall not be considered complete until the project sponsor has provided all of the following: (1) A full plan set, including site plan, elevations, sections, and floor plans, showing total number of units, and number of and location of units affordable to very low or low income households; (2) All documentation required by the Planning Department and sufficient to support determinations that: (A) The project meets all applicable zoning and any Objective Standards. (B) The project sponsor will implement any and all mitigation measures in the Housing Element EIR that the Environmental Review Officer determines are applicable. The project sponsor shall submit scope(s) of work for any studies required as part of any mitigation measure, and the application shall not be deemed complete until such studies are completed to the satisfaction of the Environmental Review Officer. (C) The project will comply with subsections (d)(10) and (d)(11) of this Section 344. (g) Decision and Hearing. The Department shall ministerially approve projects that meet all the requirements in this Section 344, as follows: (1) Hearing. The Planning Department shall conduct an informational public hearing for all projects that are subject to this Section 344 within 100 days of receipt of a complete application, as set forth in subsection (f). (2) Decision. Within 120 days of receipt of a complete application, as set forth in subsection (f), the Planning Director or the Director’s designee shall issue a written decision approving, disapproving, or approving subject to conditions, the project. The applicant and the Department may mutually agree to extend this 120-day period. If no written decision is issued within 120 days of the Department’s receipt of a complete application, or within the period mutually agreed upon by the Department and applicant, the project shall be deemed approved. The Planning Director or the Director’s designee shall include any certifications required by California Government Code Section 66205(e) in a copy of the written decision. (3) Grounds for Permit Denial. The Department may deny an HSD project application only for one or more of the following reasons: (A) The proposed project does not fully comply with this Section 344, including but not limited to meeting all adopted Objective Standards and/or implementing all mitigation measures in the Housing Element EIR that the Department determines are applicable. (B) The project sponsor has not submitted all of the information or paid any application fee required by this Section 344 and necessary for an adequate and timely design review or assessment of potential impacts on nearby properties. (C) The Department determines, based upon substantial evidence in light of the whole record of the public hearing on the project, that a physical condition on the site of development that was not known and could not have been discovered with reasonable investigation at the time the application was submitted would have a specific adverse impact upon the public health or safety and that there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. As used in this subsection (g)(3)(C), “specific adverse impact” means a significant, quantifiable, direct, and unavoidable impact based on identified objective written public health or safety standards, policies, or conditions, in existence at the time the application was deemed complete. (4) Appeal. The procedures for appeal to the Board of Appeals of a decision by the Department under this Section 344 shall be as set forth in Section 8 of the Business and Tax Regulations Code. (5) Discretionary Review. No requests for discretionary review shall be accepted by the Planning Department for projects subject to this Section 344. As long as the Planning Commission has delegated its authority to the Planning Department to review applications for projects subject to this Section 344, the Planning Commission shall not hold a public hearing for discretionary review of projects subject to this Section 344. (6) Progress Requirement. Approval of a project pursuant to this Section 344 shall expire if the project sponsor has not procured a building permit or site permit for construction of the project within 30 months of the date of the Department’s issuance of a written decision pursuant to subsection (g)(2). If the Planning Director or the Director’s designee finds that the project sponsor has demonstrated good faith in its efforts to obtain the first site or building permit for the project, the Planning Director or designee may extend the approval for the project for a maximum of six additional months. Such deadline shall additionally be extended in the event of any appeal of such approval for the duration of the appeal, and in the event of litigation seeking to invalidate the approval for the duration of the litigation. (h) Design Review Standards. Projects subject to this Section 344 shall be reviewed for compliance with the design standards set forth in the Planning Code and any Objective Standards. (i) District Affordability Requirement. At the request of the California Department of Housing and Community Development, the Planning Department shall demonstrate that at least 20% of the residential units constructed in the HSD during the life of the District and pursuant to this Section 344 will be affordable to very low, low, and moderate-income households and subject to a recorded affordability restriction for at least 55 years. (j) Monitoring and Enforcement. The Planning Department shall include, as conditions of approval of all projects approved pursuant to this Section 344, monitoring and enforcement provisions to ensure that the project meets all applicable labor and wage requirements and complies with all identified applicable mitigation measures. Projects found to be in violation of any of these conditions shall be subject to the Administrative Enforcement Procedures in Section 176 of this Code, including initiation of abatement proceedings or referral to the City Attorney or District Attorney for prosecution, if not corrected within 90 days of service of any notice of violation issued under Section 176(b)(1). Conditions of approval shall include, but are not limited to: (1) A project sponsor shall submit weekly reports to the Office of Labor Standards Enforcement, certifying that a project approved pursuant to this Section 344 is complying with subsections (d)(11) and (d)(12), if applicable to the project. Projects found to be in violation of subsections (d)(11) and (d)(12) shall be subject to penalties pursuant to Section 1741 of the Labor Code, in addition to any penalties assessed pursuant to Section 176 of this Code. All penalties shall be paid prior to issuance of the project’s First Certificate of Occupancy, as defined in Section 401 of this Code. (2) The Planning Department shall monitor compliance with the Housing Element EIR mitigation measures for projects approved under the HSD. (3) The Planning Department shall monitor and report the construction of affordable housing units under the HSD in its annual Housing Inventory, which shall include the following information: (A) Number of projects approved pursuant to this Section 344.

(B) Number of projects under construction pursuant to approvals obtained under this Section 344. (C) Number of projects completed pursuant to approvals obtained under this Section 344. (D) Number of Dwelling Units or Group Housing beds within projects completed pursuant to approvals obtained under this Section 344. (E) Number of Dwelling Units affordable to very low, low, moderate, and middle income households within projects completed pursuant to approvals obtained under this Section 344. (k) Operative and Sunset Dates. (1) This Section 344 shall become operative upon confirmation of approval by the California Department of Housing and Community Development under California Government Code Section 66202(c) (“Operative Date”). (2) This Section 344 shall expire by operation of law seven years from the Operative Date, unless this Section 344 is renewed by ordinance pursuant to Government Code Section 66201(g), in which case this Section 344 shall expire on the date specified in that ordinance (“Sunset Date”). Upon the expiration of this Section 344, the City Attorney shall cause this Section 344 to be removed from the Planning Code. Pursuant to Government Code Section 66205(b), this Section 344 shall govern the processing and review of any complete application submitted pursuant to this Section 344 prior to the Sunset Date. (Added by Ord. 245-25, File No. 250701, App. 12/12/2025, Eff. 1/12/2026, Oper. 1/12/2026) ARTICLE 3.5: FEES

Sec. 350. Fees.

SEC. 350. FEES. (See Interpretations related to this Section.) (a) Authorization of Fees. The Planning Department shall charge fees to compensate the Department for the cost of processing applications, developing and revising land use controls, and performing or providing other activities and services. Notwithstanding the procedures set forth in this Section 350, the Board of Supervisors may modify the fees by ordinance at any time. (b) Base Fees. The base fee to be charged and collected by the Department for each class of application, permit, filing request, activity, or service processed or performed by the Department are stated in Section 4 of Ordinance No. 149-16 , available in Board of Supervisors File No. 160632 and on the website of the Board of Supervisors. The base fees stated in Section 4 of that ordinance are the fees in effect as of the date of introduction of the ordinance. If the Board of Supervisors adopts a new base fee, or modifies or deletes an existing base fee, the new or modified fee shall be included on the Planning Department Fee Schedule together with the applicable ordinance number. (c) Annual Adjustment of Base Fees. Consistent with preexisting law, beginning with the setting of fees for fiscal year 2016-2017, the Controller will annually adjust the base fee amounts referenced in subsection (b) and stated in Section 4 of Ordinance No. 149-16 in Board of Supervisors File No. 160632, without further action by the Board of Supervisors, to reflect changes in the two-year average Consumer Price Index (CPI) change for the San Francisco/San Jose Primary Metropolitan Area (PMSA). This process will occur as follows. No later than April 15 of each year, the Director shall submit the Department's current Fee Schedule to the Controller, who shall apply the CPI adjustment to produce a new Fee Schedule for the fiscal year beginning July 1. No later than May 15 of each year, the Controller shall file a report with the Board of Supervisors reporting the new Fee Schedule and certifying that: (1) the fees produce sufficient revenue to support the costs of providing the services for which the fee is charged and (2) the fees do not produce revenue that exceeds the costs of providing the services for which each permit fee is charged. No later than September of each year, the Department's Fee Schedule showing the current fee amounts inclusive of annual adjustments shall be published in an Appendix to the Planning Code, posted on the Department's website, and made available upon request at the main office of the Department. (d) Surcharges. In addition to fees, a surcharge shall be assessed on some fees to compensate the Department for the cost of appeals to the Board of Supervisors or the Board of Appeals. These surcharges are stated in Section 4 of Ordinance No. 149-16 in Board of Supervisors File No. 160632. These surcharges are not part of base fees as described in subsection (b) and are not subject to the annual adjustment process described in subsection (c). However, to fully inform the public, such surcharges shall be included in the Planning Department Fee Schedule referenced in subsection (c). Notwithstanding the surcharges stated in Section 4 of Ordinance No. 149-16 in Board of Supervisors File No. 160632, all surcharges identified in that Section 4 for appeals to the Board of Supervisors shall be $240. In addition, there shall be a surcharge assessed on certain permit fees to fully compensate the Department for the costs of discretionary review, as detailed in Section 4 of the aforementioned ordinance. That surcharge will be treated as if it were a base fee, and will be subject to the annual adjustment process described in subsection (c) and included in the Planning Department Fee Schedule referenced in subsection (c). (e) Estimated Construction Costs. Estimated construction costs are as defined by the San Francisco Building Code. Certain of the fees specified in Section 4 of Ordinance No. 149-16 in Board of Supervisors File No. 160632 place a limit on the fee based on its not exceeding a specified percentage of construction cost. This limit shall apply to certain fees, as set forth in Ordinance No. 149-16 , Ordinance No. 221-18, amending Ordinance No. 149-16, and Ordinance No. ______, further amending Ordinance No. 149-16 , in Board of Supervisors File No. 250888. Unless otherwise noted, the fee amounts shown in Ordinance No. 149-16 are the amounts originally established in 2016. The Planning Department maintains the Department’s Fee Schedule, which includes any annual adjustments, and is available at the Department and on the Department’s website. (f) Time for Payment. All fees are payable at time of filing application or request, except where noted otherwise. However, the Director of Planning or his/her designee may authorize phased collection of the fee for a project whose work is projected to span more than one fiscal year. The balance of phased payments must be paid in full one week in advance of the first scheduled public hearing before the Planning Commission to consider the project or before issuance of the first site permit if no hearing is required. (g) Time and Materials. The Planning Department shall charge the applicant for any time and materials costs incurred in excess of the initial fee charged if required to recover the Department’s costs for providing services. (1) The Department shall charge time and materials to recover the cost of correcting code violations and violations of Planning Commission and Department conditions of approval of use if such costs are not covered by the monitoring fee for conditions of approval specified in the Planning Department Fee Schedule. (2) Where a different limitation on time and materials charges is set forth elsewhere in this Article 3.5, that limitation shall prevail. (3) The Planning Department may also charge the applicant for any time and materials costs incurred by other departments or agencies of the City and County of San Francisco, or may authorize such other departments or agencies to charge directly for any time and materials costs incurred by the respective department or agency to recover the cost of correcting code violations and violations of Planning Commission and Department conditions of approval. (4) Any balance of time and materials costs for active and open projects must be paid in full one week in advance of a scheduled public hearing before the Planning Commission to consider the project or before Planning Department approval of the first site permit if no hearing is required. (h) Document Retrieval. The fee for files stored on-site shall be the actual costs for printing the file(s). The fee for files stored off-site shall be the actual costs for retrieval, printing, and return of files, as specified in a retrieval schedule prepared by the Director of Planning, or the Director’s designee. (i) Refunds. When an application is withdrawn by the applicant prior to a public hearing, or deemed canceled by the Planning Department due to inactivity on the part of the applicant, then the applicant shall be entitled to a refund of the fee paid to the Department less the time and materials expended. Refund requests must be submitted within six months of the project closure date. (j) Deferred or Reduced Fee; Fee Waivers.