401

SEC. 401. DEFINITIONS. In addition to the specific definitions set forth in Section 102 and elsewhere in this Article 4, the following definitions shall govern interpretation of this Article: (Amended by Ord. 63-20; Ord. 210-21; see Sec. 401 history note.) A “Affordable Price.” The price at which the Owned Unit would be Affordable to Qualifying Households. (Added by Ord. 258-24; see Sec. 401 history note.) “Affordable Unit” or “Affordable Housing Unit.” A unit that is Affordable to Qualifying Households under Section 415 et seq. (Amended by Ord. 210-21; Ord. 258-24; see Sec. 401 history note.) "Affordable to a household" shall mean a purchase price that a household can afford to pay based on an annual payment for all housing costs, as defined in California Code of Regulations ("CCR") Title 25, Section 6920, as amended from time to time, of 33 percent of the combined household annual gross income, assuming a down payment recommended by the Mayor's Office of Housing in the Procedures Manual, and available financing, or a rent that does not exceed 30 percent of a household's combined annual gross income. Where applicable, the purchase price or rent may be adjusted to reflect the absence or existence of a parking space(s), subject to the Department's policy on unbundled parking for affordable housing units as specified in the Procedures Manual and amended from time to time. “Affordable to Qualifying Households.” (A) With respect to Owned Units, the average purchase price on the initial sale of all Owned Units in a housing project shall not exceed the allowable average purchase price. Each unit shall be sold: (i) Only to first-time homebuyer households, as defined in this Section; (ii) Only to households with an annual gross income equal to or less than the qualifying income limits for a household of moderate income, adjusted for household size, except for the exceptions set forth in Section 415.8(a)(4)(C), (D), and (E); (iii) Only to households that meet the household size requirements, as defined in the Procedures Manual; (iv) On the initial sale, at or below the maximum purchase price, as defined in this Section; (v) On subsequent sales at or below the prices to be determined according to the formula specified in the Procedures Manual in place at the time of the purchase of the Owned Unit, as amended from time to time, such that the units remain affordable for the life of the project. The formula in the Procedures Manual shall permit the seller to include certain allowable capital improvements in the new maximum purchase price. The formula shall include a per unit cap on capital improvements of 10% of the resale price in order to maintain affordability. Special Assessments shall be added to the resale price at an uncapped rate. Capital improvement requests shall be evaluated by the Mayor’s Office of Housing according to the formula specified in the Procedures Manual. (B) With respect to Rental Units, the average annual rent shall not exceed the allowable average annual rent. Each unit shall be rented: (i) Only to households with an annual gross income equal to or less than qualifying limits for a household of lower income adjusted for household size, as defined in this Section, except for the exceptions set forth in Section 415.8(a)(4)(A) and (B); (ii) Only to households that meet the household size requirements, as defined in the Procedures Manual; (iii) At or less than the maximum annual rent. (Amended by Ord. 210-21; see Sec. 401 history note.) “Allowable average purchase price.” A price for all Owned Units of the size indicated below that are affordable to a household of median income as defined in this Section, adjusted for the household size indicated below as of the date of the close of escrow, except for Single Room Occupancy units and Group Housing units that are less than 350 square feet (both as defined in Section 102), which shall be 75% of the maximum purchase price level for studio units, and, where applicable, adjusted to reflect the Department's policy on unbundled parking for affordable housing units as specified in the Procedures Manual and amended from time to time:

Number of Bedrooms (or, for live/work units square foot equivalency) Number of Persons in Household 0 (Less than 600 square feet) 1 (601 to 850 square feet) 2 (851 to 1,100 square feet) 3 (1,101 to 1,300 square feet) 4 (More than 1,300 square feet)

(Amended by Ord. 164-15; Ord. 210-21 ; see Sec. 401 history note.) “Allowable average annual rent.” Annual rent for a Rental Unit of the size indicated below that is 30% of the annual gross income of a household of low income as defined in this Section, adjusted for the household size indicated below except for Single Room Occupancy units and Group Housing units that are less than 350 square feet (both as defined in Section 102), which shall be 75% of the maximum rent level for studio units, and, where applicable, adjusted to reflect the Department's policy on unbundled parking for affordable housing units as specified in the Procedures Manual and amended from time to time:

Number of Bedrooms (or, for live/work units square foot equivalency) Number of Persons in Household 0 (Less than 600 square feet) 1 (601 to 850 square feet) 2 (851 to 1,100 square feet) 3 (1,101 to 1,300 square feet) 4 (More than 1,300 square feet)

At no time can a rent increase, or can multiple rent increases within one year, exceed the percentage change in Maximum Monthly Rent levels as published by MOHCD from the previous calendar year to the current calendar year.

(Amended by Ord. 164-15; Ord. 210-21; see Sec. 401 history note.) "Area Median Income" or "AMI." The unadjusted median income levels derived from the Department of Housing and Urban Development ("HUD") on an annual basis for the San Francisco area, adjusted solely for household size, but not high housing cost area. “Annual gross income.” Gross income as defined in CCR Title 25, Section 6914, as amended from time to time, except that MOHCD may, in order to promote consistency with the procedures of the San Francisco Redevelopment Agency, develop an asset test that differs from the State definition if it publishes that test in the Procedures Manual. (Amended by Ord. 210-21; see Sec. 401 history note.) "Annual net income." Net income as defined in Title 25 of the California Code of Regulations Section 6916. "Area Plan Impact Fee" shall mean a development impact fee collected by the City to mitigate impacts of new development in the Area Plans of the San Francisco General Plan, under Article 4 of the Planning Code. (Added by Ord. 200-15 and Ord. 222-15 ; see Sec. 401 history note.) “Average annual rent.” The total annual rent for the calendar year charged by a housing project for all Rental Units in the project of an equal number of bedrooms divided by the total number of Affordable Units in the project with that number of bedrooms. (Amended by Ord. 210-21; see Sec. 401 history note.) “Average purchase price.” The purchase price for all Owned Units in an affordable housing project of an equal number of bedrooms divided by the total number of Affordable Units in the project with that number of bedrooms. (Amended by Ord. 210-21; see Sec. 401 history note.) B "Balboa Park Community Improvements Fund." The fund into which all fee revenue the City collects from the Balboa Park Impact Fee is deposited. "Balboa Park Community Improvements Program." The program intended to implement the community improvements identified in the Balboa Park Area Plan, as articulated in the Balboa Park Community Improvements Program Document on file with the Clerk of the Board in File No. 090179. "Balboa Park Impact Fee." The fee collected by the City to mitigate impacts of new development in the Balboa Park Program Area, as described in the findings in Section 422.1. "Balboa Park Program Area." The Balboa Park Plan Area in Figure 1 of the Balboa Park Station Area Plan of the San Francisco General Plan. "Base service standard." The relationship between revenue service hours offered by the Municipal Railway and the number of automobile and transit trips estimated to be generated by certain non-residential uses, expressed as a ratio where the numerator equals the average daily revenue service hours offered by MUNI and the denominator equals the daily automobile and transit trips generated by non-residential land uses as estimated by the TIDF Study, the TIDF Update Report, or as updated under Section 410 of this Article. "Base service standard fee rate." The TIDF that would allow the City to recover the estimated costs incurred by the Municipal Railway to meet the demand for public transit resulting from new development in the economic activity categories for which the fee is charged, after deducting government grants, fare revenue, and costs for non-vehicle maintenance and general administration. C “Change of Use.” A change from one land use to another land use. For purposes of calculating any impact fees, credits, or waivers under Article 4, if the Gross Floor Area to be changed has no legally established use, the change of use shall consider the last legal use. (Added by Ord. 124-25; see Sec. 401 history note.) “Child-care provider.” A provider as defined in California Health and Safety Code Section 1596.791. “Community apartment.” As defined in San Francisco Subdivision Code Section 1308(b). "Condominium." As defined in California Civil Code Section 783. "Cultural/Institution/Education (CIE)." An economic activity category subject to the TIDF that includes, but is not limited to, Schools and Post-Secondary Educational Institutions; Child Care Facilities; museums and zoos considered Public Facilities; and Community Facilities and Private Community Facilities, as defined in Section 102. D "Dedicated." Legally transferred to the City and County of San Francisco, including all relevant legal documentation, at no cost to the City. "Dedicated site." The portion of site proposed to be legally transferred at no cost to the City and County of San Francisco under the requirements of this section. “Designated affordable housing zones.” For the purposes of implementing the Eastern Neighborhoods Community Improvements Fund, shall mean the Mission Street NCT defined in Section 754. (Amended by Ord. 50-15; Ord. 188-15; Ord. 202-18; Ord. 296-18; see Sec. 401 history note.) Designated Child Care Unit. As defined in Section 102. (Added by Ord. 2-16; amended by Ord. 7-19 ; see Sec. 401 history note.) "Development Application" shall mean any application for a building permit, site permit, Conditional Use, Variance, Large Project Authorization, or any application pursuant to Planning Code Sections 309, 309.1, or 322 or any application to the Planning Department for ministerial approval pursuant to state law, including but not limited to California Government Code Sections 65913.4, 65650 et seq., or 65912.100 et seq. (Added by Ord. 200-15 and Ord. 222-15; amended by Ord. 188-25; see Sec. 401 history note.) "Development fee." Either a development impact fee or an in-lieu fee. It shall not include a fee for service or any time and material charges charged for reviewing or processing permit applications. "Development Fee Collection Unit" or "Unit." The Development Fee Collection Unit at DBI. "Development impact requirement." A requirement to provide physical improvements, facilities or below market rate housing units imposed on a development project as a condition of approval to mitigate the impacts of increased demand for public services, facilities or housing caused by the development project that may or may not be governed by the California Mitigation Fee Act (California Government Code Section 66000 et seq.). "Development project." Any change of use within an existing structure, addition to an existing structure, or new construction, which includes any occupied floor area. "Director of Transportation." The Director of Transportation of the MTA or his or her designee(s). E “Eastern Neighborhoods Community Improvements Fund.” The fund into which all fee revenue collected by the City from the Eastern Neighborhoods Impact Fee is deposited. (Amended by Ord. 296-18; see Sec. 401 history note.) "Eastern Neighborhoods Infrastructure Impact Fee." The fee collected by the City to mitigate impacts of new development in the Eastern Neighborhoods Program Area, as described in the Findings in Section 423.1 "Eastern Neighborhoods Program Area." The Eastern Neighborhoods Plan Area in Map 1 (Land Use Plan) of the Eastern Neighborhoods Area Plan of the San Francisco General Plan.

"Eastern Neighborhoods Public Benefits Program." The program intended to implement the community improvements identified in the five Area Plans affiliated with the Eastern Neighborhoods (Central Waterfront, East SoMa, Western SoMa, Mission, and Showplace Square/Potrero Hill), as articulated in the Eastern Neighborhoods Public Benefits Program Document, on file with the Clerk of the Board in File No. 081155, and the Western SoMa Public Benefits Program Document, on file with the Clerk of the Board in File No. 130004.) "Economic activity category." Under the TIDF, one of the following six categories of non-residential uses: Cultural/Institution/Education (CIE), Management, Information and Professional Services (MIPS), Medical and Health Services, Production/Distribution/Repair (PDR), Retail/Entertainment, and Visitor Services. "Entertainment use." For the purposes of this Section shall mean space within a structure or portion thereof intended or primarily suitable for or accessory to the operation of Nighttime Entertainment, General Entertainment, Adult Businesses, and Movie Theater uses as defined in Section 102 regardless of the zoning district that the use is located in. F “Final Approval.” For the purposes of this Section 401 shall mean (1) approval of a project’s first Development Application, unless such approval is appealed; or (2) if a project only requires a building permit, planning approval of the first site or building permit, unless such permit is appealed; or (3) if the first Development Application or first site or building permit is appealed, then the final decision upholding the Development Application, or first site or building permit, on the appeal by the relevant City Board or Commission. (Amended by Ord. 193-23; Ord. 188-25; see Sec. 401 history note.) "First Certificate of Occupancy." Either a temporary Certificate of Occupancy or a Certificate of Final Completion and Occupancy as defined in San Francisco Building Code Section 109A, whichever is issued first. "First construction document." As defined in Section 107A.13.1 of the San Francisco Building Code. "First-time homebuyer household." At a minimum, shall be a household in which no member of the qualifying household may have owned any interest in a dwelling unit for a three-year period prior to applying to qualify for purchase of a unit restricted as affordable under the Inclusionary Housing Program. The Procedures Manual may contain additional requirements as necessary. G "Gross Floor Area." The total area of each floor within the building's exterior walls, as defined in Section 102 of this Code, except for areas devoted to off-street parking and except that for the purposes of determining the applicability of the TIDF, the exclusion from this definition set forth in Subsection (b)(13) of the definition of Gross Floor Area shall not apply. The provision for certain projects in the Van Ness Special Use District set forth in Subsection (b)(20) of the definition shall apply. (Amended by Ord. 52-15; Ord. 188-15; see Sec. 401 history note.) "Gross square feet of use." The meaning set forth in Section 102 of this Code, except for areas devoted to off-street parking and with the exception of the TIDF. With respect to the TIDF, the total square feet of gross floor area in a building and/or space within or adjacent to a structure devoted to all uses covered by the TIDF, including any common areas exclusively serving such uses and not serving residential uses. Where a structure contains more than one use, areas common to two or more uses, such as lobbies, stairs, elevators, restrooms, and other ancillary spaces included in gross floor area that are not exclusively assigned to one uses shall be apportioned among the two or more uses in accordance with the relative amounts of gross floor area, excluding such space, in the structure or on any floor thereof directly assignable to each use. (Amended by Ord. 52-15; see Sec. 401 history note.) H "Hope SF Project Area" shall mean an area owned by or previously owned by the San Francisco Housing Authority that is currently undergoing, or planned to undergo redevelopment, whereby existing affordable dwelling units will be replaced, new affordable housing units will be constructed, and market-rate units may be constructed as a means to cross-subsidize newly needed infrastructure and affordable units. Hope SF Project Area shall include the Hunters View project, which is located within the Hunters View Special Use District, the Potrero Terrace and Annex Project, which includes Assessor's Block 4367, Lots 004 and 004A; Block 4220A, Lot 001, Block 4222, Lot 001; and Block 4223, Lot 001; and the Sunnydale/Velasco Project, which includes Assessor's Block 6310, Lot 001; Block 6311, Lot 001; Block 6312, Lot 001; Block 6313, Lot 001; Block 6314, Lot 001; and Block 6315, Lot 001. (Added by Ord. 200-15 and Ord. 222-15 ; see Sec. 401 history note.) "Household." Any person or persons who reside or intend to reside in the same housing unit. "Household of low income." For purposes of Section 415 et seq., a household whose combined annual gross income for all members does not exceed 55 percent of AMI. "Household of median income." For purposes of Section 415 et seq., a household whose combined annual gross income for all members does not exceed 90 percent of AMI. "Household of moderate income." For purposes of Section 415 et seq., a household whose combined annual gross income for all members does not exceed 110 percent of AMI. "Housing developer." Any business entity building housing units which receives a payment from a sponsor for use in the construction of the housing units. A housing developer may be (a) the same business entity as the sponsor, (b) an entity in which the sponsor is a partner, joint venturor, or stockholder, or (c) an entity in which the sponsor has no control or ownership. “Housing project.” Any development which includes a Residential Use as defined in Section 102 of this Code, including but not limited to Dwellings, Group Housing, Single Room Occupancy Units, independent living units, and other forms of development which are intended to provide long-term housing to individuals and households. “Housing project” shall not include that portion of a development that qualifies as an Institutional Use under the Planning Code. “Housing project” for purposes of the Inclusionary Housing Program shall also include the development of Live/Work units as defined by Section 102. Housing project for purposes of the Inclusionary Housing Program shall mean all phases or elements of a multi-phase or multiple lot residential development. (Amended by Ord. 164-15; Ord. 202-18; see Sec. 401 history note.) "Housing unit" or "unit." A residential use in a Housing project. For the purposes of the Inclusionary Affordable Housing Program, Planning Code Section 415 et seq., and corresponding definitions in this Section 401, the use of the word "unit" will also mean bedrooms where a Group Housing or other Housing project is measured by number of bedrooms. (Amended by Ord. 164-15; see Sec. 401 history note.) I "Improvements Fund." The fund into which all revenues collected by the City for each Program Area's impact fees are deposited. "Infrastructure." Open space and recreational facilities; public realms improvements such as pedestrian improvements and streetscape improvements; public transit facilities; and community facilities such as libraries, child care facilities, and community centers. "Institutional use." Space within a structure or portion thereof intended or primarily suitable for or accessory to the operation of an Institutional use as defined in Code Section 102, regardless of the zoning district that the use is located in. "Interim Guidelines." The Office Housing Production Program Interim Guidelines adopted by the Planning Commission on January 26, 1982, as amended. L "Life of the project." The time during which the development authorized by the Planning Department or Commission, or any modification of such development, remains in existence in or upon the subject property and thereby confers benefit upon the subject property. "Low income." For purposes of this Article, up to 80% of median family income for the San Francisco PMSA, as calculated and adjusted by the United States Department of Housing and Urban Development (HUD) on an annual basis, except that as applied to housing-related purposes such as the construction of affordable housing and the provision of rental subsidies with funds from the SOMA Stabilization Fund established in Section 418.7, it shall mean up to 60% of median family income for the San Francisco PMSA, as calculated and adjusted by HUD

on an annual basis. M “Management, Information and Professional Services (MIPS).” An economic activity category under the TIDF that includes, but is not limited to, Office Uses; Health Service uses; Business Service uses; Integrated PDR; and Small Enterprise Workspaces. (Amended by Ord. 202-18; Ord. 63-20; see Sec. 401 history note.) "Market and Octavia Community Improvements Fund." The fund into which all fee revenue collected by the City from the Market and Octavia Community Improvements Fee is deposited. "Market and Octavia Community Improvements Impact Fee." The fee collected by the City to mitigate impacts of new development in the Market and Octavia Program Area, as described in the findings in Section 421.1. “Market and Octavia Community Improvements Program.” The program intended to implement the community improvements identified in the Market and Octavia Area Plan, as articulated in the Market and Octavia Community Improvements Program Document on file with the Clerk of the Board in File No. 071157, and as updated in the revised Market and Octavia Community Improvements Program Document, identified as part of the amendments to the Market and Octavia Area Plan for the area known as the Hub, on file with the clerk of the board in File No. 200559. (Amended by Ord. 126-20; see Sec. 401 history note.) “Market and Octavia Program Area.” The Market and Octavia Plan Area in Map 1 (Land Use Plan) of the Market and Octavia Area Plan of the San Francisco General Plan, which includes those districts zoned RTO, NCT, or any neighborhood specific NCT, a few parcels zoned RH-1 or RH-2, and those parcels within the Van Ness and Market Downtown Residential Special Use District (VMDRSUD). The Program Area shall also include the entirety of the Upper Market NCT District, including any portions of such District that fall outside of the Market and Octavia Plan Area. (Amended by Ord. 83-17; see Sec. 401 history note.) "Market rate housing." Housing constructed in the principal project that is not subject to sales or rental restrictions. "Maximum annual rent." The maximum rent that a housing developer may charge any tenant occupying an affordable unit for the calendar year. The maximum annual rent for an affordable housing unit of the size indicated below shall be no more than 30% of the annual gross income for a household of low income as defined in this Section, as adjusted for the household size indicated below, except in the case of Single Room Occupancy units and Group Housing units that are less than 350 square feet (both as defined in Section 102), which shall be 75% of the maximum rent level for studio units, as of the first date of the tenancy:

Number of Bedrooms (or, for live/work units square foot equivalency) Number of Persons in Household 0 (Less than 600 square feet) 1 (601 to 850 square feet) 2 (851 to 1,100 square feet) 3 (1,101 to 1,300 square feet) 4 (More than 1,300 square feet)

At no time can a rent increase, or can multiple rent increases within one year, exceed the percentage change in Maximum Monthly Rent levels as published by MOHCD from the previous calendar year to the current calendar year. (Amended by Ord. 164-15; Ord. 210-21; see Sec. 401 history note.) “Maximum purchase price.” The maximum purchase price for an Owned Unit of the size indicated below except in the case of Single Room Occupancy units and Group Housing units that are less than 350 square feet (both as defined in Section 102), which shall be 75% of the maximum purchase price level for studio units, that is affordable to a household of moderate income, adjusted for the household size indicated below, assuming an annual payment for all housing costs of 33 percent of the combined household annual gross income, a down payment recommended by MOHCD and set forth in the Procedures Manual, and available financing:

Number of Bedrooms (or, for live/work units square foot equivalency) Number of Persons in Household 0 (Less than 600 square feet) 1 (601 to 850 square feet) 2 (851 to 1,100 square feet) 3 (1,101 to 1,300 square feet) 4 (More than 1,300 square feet)

(Amended by Ord. 164-15; Ord. 210-21 ; see Sec. 401 history note.) “Mayor’s Office of Housing” or “MOH.” The Mayor’s Office of Housing and Community Development or its successor. (Amended by Ord. 210-21; see Sec. 401 history note.) “Medical and Health Services.” An economic activity category under the TIDF that includes, but is not limited to, Hospital use and Social Service and Philanthropic Facility uses. (Amended by Ord. 202-18; see Sec. 401 history note.) "Middle Income Household." Except as used in Section 415 et seq., a household whose combined annual gross income for all members is between 120 percent and 150 percent of the local median income for the City and County of San Francisco, as calculated by the Mayor's Office of Housing using data from the United States Department of Housing and Urban Development (HUD) and adjusted for household size or, if data from HUD is unavailable, as calculated by the Mayor's Office of Housing using other publicly available and credible data and adjusted for household size. “MOH.” The Mayor’s Office of Housing, or the Mayor’s Office of Housing and Community Development, or its successor. (Amended by Ord. 210-21; see Sec. 401 history note.) “MOHCD.” The Mayor’s Office of Housing and Community Development, or its successor. (Added by Ord. 210-21; see Sec. 401 history note.) "MTA." The Municipal Transportation Agency, or its successor. "Municipal Railway; MUNI." The public transit system owned by the City and under the jurisdiction of the MTA. "Museum." A permanent institution open to the public, which acquires, conserves, researches, communicates and exhibits the heritage of humanity or the environment. N "Nonprofit child-care provider." A child-care provider that is an organization organized and operated for nonprofit purposes within the provisions of California Revenue and Taxation Code Sections 23701-23710, inclusive, as demonstrated by a written determination from the California Franchise Tax Board exempting the organization from taxes under Revenue and Taxation Code Section 23701.

"Nonprofit organization." An organization organized and operated for nonprofit purposes within the provisions of California Revenue and Taxation Code Sections 23701-23710, inclusive, as demonstrated by a written determination from the California Franchise Tax Board exempting the organization from taxes under Revenue and Taxation Code Section 23701. O “Off-site Unit.” A unit Affordable to Qualifying Households constructed pursuant to this Article on a site other than the site of the Principal Project. If a Housing Project is constructed in multiple phases or consists of multiple buildings, Affordable Units may be constructed in one building or phase. (Amended by Ord. 210-21; see Sec. 401 history note.) “On-site Unit.” A unit Affordable to Qualifying Households constructed pursuant to this Article on the site of the principal project. If a Housing Project is constructed in multiple phases or consists of multiple buildings, Affordable Units shall be distributed proportionally throughout the building or phase. (Amended by Ord. 210-21; see Sec. 401 history note.) “Owned Unit.” A unit Affordable to Qualifying Households that is a condominium, stock cooperative, community apartment, or detached single-family home. The owner or owners of an Owned Unit must occupy the unit as their primary residence. An Owned Unit shall not be Group Housing, as defined in Section 102. (Amended by Ord. 210-21; Ord. 13-26; see Sec. 401 history note.) "Owner." The record owner of the fee or a vendee in possession. “Owner Occupied.” A qualified-income owner lives in the affordable unit as his or her principal residence and resides in the unit for a minimum period of time set forth in the Procedures Manual. (Amended by Ord. 202-18; see Sec. 401 history note.) P "Principal project." A housing development on which a requirement to provide affordable housing units is imposed. "Principal site." The total site proposed for development, including the portion of site proposed to be legally transferred to the City and County of San Francisco. “Procedures Manual.” The City and County of San Francisco Inclusionary Affordable Housing Program Monitoring Procedures Manual issued by the Mayor’s Office of Housing and Community Development, as amended from time to time. (Amended by Ord. 210-21; see Sec. 401 history note.) "Program" or "Inclusionary Housing Program." The Inclusionary Affordable Housing Program as detailed in Sections 415-417. Q “Qualifying Income.” The income at which a household meets the income eligibility requirements for a particular BMR Unit. The Qualifying Income may be higher than the maximum income limit or income range required in the Notice of Special Restrictions or other document establishing affordability restrictions for the BMR Unit. (Added by Ord. 258-24; see Sec. 401 history note.) R "Rent" or "rental." The total charges for rent, utilities, and related housing services to each household occupying an affordable unit. “Rental Unit.” A unit Affordable to Qualifying Households that is not a condominium, stock cooperative, or community apartment. (Amended by Ord. 210-21; see Sec. 401 history note.) “Replacement of use.” The total amount of Gross Floor Area, as defined in Section 102 of this Code, to be demolished and reconstructed by a development project. For purposes of calculating any impact fees, credits, or waivers under Article 4, if the Gross Floor Area to be demolished has no legally established use, the replacement of use shall consider the last legal use. (Amended by Ord. 202-18; Ord. 124-25; see Sec. 401 history note.) "Research and development use." Space within any structure or portion thereof intended or primarily suitable for or accessory to the operation of uses defined in San Francisco Planning Code Section 890.52, regardless of the zoning district that the use is located in. “Retail/entertainment.” An economic activity category under the TIDF that includes, but is not limited to, a Retail Use, except those Retail Uses which are also PDR Uses; an entertainment use as defined in this section; and Massage Establishments. (Amended by Ord. 202-18; see Sec. 401 history note.) "Retail use." For the purposes of this Section, space within any structure or portion thereof intended or primarily suitable for or accessory to the operation of uses contained in the definition of Retail Sales and Services in Section 102, excluding any use that is also considered a PDR Use per Section 102, regardless of the zoning district that the use is located in. "Revenue services hours." The number of hours that the Municipal Railway provides service to the public with its entire fleet of buses, light rail (including streetcars), and cable cars. "Rincon Hill Community Improvements Fund." The fund into which all fee revenue collected by the City from the Rincon Hill Community Infrastructure Impact Fee is deposited. "Rincon Hill Community Infrastructure Impact Fee." The fee collected by the City to mitigate impacts of new development in the Rincon Hill Program Are, as described in the findings in Section 418.1. "Rincon Hill Program Area." Those districts identified as the Rincon Hill Downtown Residential (RH DTR) Districts in the Planning Code and on the Zoning Maps. S "Section 6932." Section 6932 of Title 25 of the California Code of Regulations as such section applies to the County of San Francisco. "Significant increase in residential development potential" shall mean, for purposes of Charter Section 16.110(h) and the implementation of the Inclusionary Affordable Housing Program, for areas subject to a change in zoning enacted after November 6, 2012 that affects 40 or more acres or greater and results in a significant increase in residential development potential, where the area is not also encompassed by a Special Use District adopted after November 6, 2012: (a) a 20% or greater increase in developable residential gross floor area, as measured by a change in height limits, Floor Area Ratio limits, or use, over prior zoning, or (b) a change in use permitting Residential Uses (either as a principally permitted use or with a Conditional Use authorization) where Residential Uses were not previously principally permitted or permitted with a Conditional Use authorization, or (c) For parcels with an existing residential development capacity of 10 units or greater, the lesser of 1. a 50% or greater increase in residential densities over prior zoning, or, 2. an increase in density of at least 15 additional units over the number of units allowed under prior zoning. 3. For the purposes of determining residential development capacity, the Planning Department shall use unit sizes and efficiency ratios typical (or the subject area at the time of the rezoning. This definition was adopted by the Board of Supervisors in Motion M13-097 and may only be amended under Charter Section 16.110(h)(1)(B)(iv). (Amended by Ord. 188-15; see Sec. 401 history note.)

Small Family Daycare Home. A Small Family Daycare Home is defined by California Health & Safety Code Section 1596.78(c), as amended from time to time. (Added by Ord. 2-16 ; see Sec. 401 history note.) "SOMA." The area bounded by Market Street to the north, Embarcadero to the east, King Street to the south, and South Van Ness and Division to the west. "SOMA Community Stabilization Fee." The fee collected by the City to mitigate impacts on the residents and businesses of SOMA of new development in the Rincon Hill Program Area, as described in the findings in Section 418.1. "SOMA Community Stabilization Fund." The fund into which all fee revenue collected by the City from the SOMA Community Stabilization Fee is deposited. "Sponsor" or "project sponsor." An applicant seeking approval for construction of a development project subject to this Article, such applicant's successor and assigns, and/or any entity which controls or is under common control with such applicant. "Stock cooperative." As defined in California Business and Professions Code Section 11003.2. T "TIDF; Transit Impact Development Fee." The development fee that is the subject of Section 411.1 et seq. of this Article. "TIDF Study." The study commissioned by the San Francisco Planning Department and performed by Nelson/Nygaard Associates entitled "Transit Impact Development Fee Analysis - Final Report," dated May 2001, including all the Technical Memoranda supporting the Final Report and the Nelson/Nygaard update materials contained in Board of Supervisors File No. 040141. "TIDF Update Report." The study commissioned by MTA and performed by Cambridge Systematics, Inc. and Urban Economics entitled "Transit Impact Development Fee Update Draft Final Report," dated February, 2011, and contained in Board of Supervisors File No. 120523. "Total developable site area." That part of the site that can be feasibly developed as residential development, excluding land already substantially developed, parks, required open spaces, streets, alleys, walkways or other public infrastructure. "Treasurer." The Treasurer for the City and County of San Francisco. "Trip generation rate." The total number of automobile and Municipal Railway trips generated for each 1,000 square feet of development in a particular economic activity category as established in the TIDF Study, the 2011 TIDF update report, or pursuant to the five-year review process established in Section 410 of this Article. U V "Visitacion Valley." The area bounded by Carter Street and McLaren Park to the west, Mansell Street to the north, Route 101 between Mansell Street and Bayshore Boulevard to the northeast, Bayview Park to the north, Candlestick Park and Candlestick Point Recreation Area to the east, the San Francisco Bay to the southeast, and the San Francisco County line to the south. "Visitor services." An economic activity category under the TIDF that includes, but is not limited to, Hotel use; Motel use, as defined in Section 102 of this Code; and time-share projects, as defined in Section 11003.5(a) of the California Business and Professions Code. W "Waiver Agreement." An agreement acceptable in form and substance to the City Attorney and the Planning Department under which the City agrees to waive all or a portion of the Community Improvements Impact Fee. (Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010; Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 321-10, File No. 101095, App. 12/21/2010; Ord. 3-11, File No. 101247, App. 1/7/2011; Ord. 25-11, File No. 101464, App. 2/24/2011; Ord. 196-11 , File No. 110786, App. 10/4/2011, Eff. 11/3/2011; Ord. 188-12 , File No. 111374, App. 9/11/2012, Eff. 10/11/2012; Ord. 247-12 , File No. 120523, App. 12/18/2012, Eff. 1/17/2013; Ord. 42-13 , File No. 130002, App. 3/28/2013, Eff. 4/27/2013; Ord. 62-13 , File No. 121162, App. 4/10/2013, Eff. 5/10/2013; Motion M13-097, File No. 130647, Ad. 7/23/2013, Eff. 8/22/2013; Ord. 22-15, File No. 141253, App. 2/20/2015, Eff. 3/22/2015; Ord. 50-15 , File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 52-15 , File No. 141266, App. 4/30/2015, Eff. 5/30/2015; Ord. 164-15 , File No. 150348, App. 9/23/2015, Eff. 10/23/2015, Retro. 5/20/2015; Ord. 188-15 , File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015; Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016; Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016; Ord. 83-17, File No. 170003, App. 3/24/2017, Eff. 4/23/2017; Ord. 202-18, File No. 180557, App. 8/10/2018, Eff. 9/10/2018; Ord. 296-18, File No. 180184, App. 12/12/2019, Eff. 1/12/2019; Ord. 7-19, File No. 180917, App. 1/25/2019, Eff. 2/25/2019; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020; Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021; Ord. 193- 23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023; Ord. 258-24, File No. 240802, App. 11/14/2024, Eff. 12/15/2024; Ord. 124-25, File No. 250542, App. 8/1/2025, Eff. 9/1/2025; Ord. 188-25, File No. 250680, App. 10/6/2025, Eff. 11/6/2025; Ord. 13-26, File No. 251099, App. 2/13/2026, Eff. 3/16/2026) AMENDMENT HISTORY Definition amended; Ord. 196-11 , Eff. 11/3/2011. Definition amended; definitions deleted; Ord. 188-12 , Eff. 10/11/2012. Definitions added, amended, and deleted; Ord. 247-12 , Eff. 1/17/2013. Definition amended; Ord. 42-13 , Eff. 4/27/2013. Definitions amended; Ord. 62-13 , Eff. 5/10/2013. Definition added; Motion M13-097, Eff. 8/22/2013. Definitions amended; Ord. 22-15, Eff. 3/22/2015. See individual definitions for subsequent history notes. Editor's Note: Ordinance 155-15 (File No. 150348, App. 8/6/2015, Eff. 9/5/2015) purported to amend this section. At the direction of the Office of the City Attorney, Ord. 155-15 was never codified (and accordingly is not referenced in the history notes above). Its provisions effectively were superseded by Ord. 164-15 (File No. 150348, App. 9/23/2015, Eff. 10/23/2015, Retro. 5/20/2015). SEC. 401A. FINDINGS. (a) General Findings. The Board makes the following findings related to the fees imposed under Article 4. (1) Application. The California Mitigation Fee Act, Government Code Section 66000 et seq. may apply to some or all of the fees in this Article 4. While the Mitigation Fee Act may not apply to all fees, the Board has determined that general compliance with its provisions is good public policy in the adoption, imposition, collection, and reporting of fees collected under this Article 4. By making findings required under the Act, including the findings in this Subsection and findings supporting a reasonable relationship between new development and the fees imposed under this Article 4, the Board does not make any finding or determination as to whether the Mitigation Fee Act applies to all of the Article 4 fees. (2) Timing of Fee Collection. For any of the fees in this Article 4 collected prior to the issuance of the certificate of occupancy, the Board of Supervisors makes the following findings set forth in California Government Code Section 66007(b): the Board of Supervisors finds, based on information from the Planning Department in Board File No. 150149, that it is appropriate to require the payment of the fees in Article 4 at the time of issuance of the first construction document because the fee will be collected for public improvements or facilities for which an account has been established and funds appropriated and for which the City has adopted a proposed construction schedule or plan prior to the final inspection or issuance of the certificate of occupancy or because the fee is to reimburse the City for expenditures previously made for such public improvements or facilities. (3) Administrative Fee. The Board finds, based on information from the Planning Department in Board File No. 150149, that the City agencies administering the fee will incur costs equaling 5% or more of the total amount of fees collected in administering the funds established in Article 4. Thus, the 5% administrative fee included in the fees in this Article 4 do not exceed the cost of the City to administer the funds. (b) Specific Findings. The Board of Supervisors has reviewed the San Francisco Citywide Nexus Analysis (“Nexus Analysis”) and the San Francisco Infrastructure Level of Service Analysis (“Level of Service Analysis”), both on file with the Clerk of the Board in File No. 230764 and adopts the findings and conclusions of those studies, specifically the sections of those studies establishing levels of service for and a nexus between new development and four infrastructure categories: Recreation and Open Space, Childcare, Complete Streets, and Transit Infrastructure. The Board of Supervisors finds that, as required by California Government Code Section 66001, for each infrastructure category analyzed, the Nexus Analysis and Infrastructure Level of Service Analysis: identify the purpose of the fee; identify the use or uses to which the fees are to be put, including a reasonable level of service; determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed; determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed; and determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the facility attributable to the development. Specifically, as discussed in more detail in and supported by the Nexus Analysis and Infrastructure Level of Service

Analysis the Board adopts the following findings: (1) Recreation and Open Space Findings. (A) Purpose. The fee will help maintain adequate park capacity required to serve new service population resulting from new development. (B) Use. The fee will be used to fund projects that directly increase park capacity in response to demand created by new development. Park and recreation capacity can be increased either through the acquisition of new park land, or through capacity enhancements to existing parks and open space. Examples of how development impact fees would be used include: acquisition of new park and recreation land; lighting improvements to existing parks, which extend hours of operation on play fields and allow for greater capacity; recreation center construction, or adding capacity to existing facilities; and converting passive open space to active open space including but not limited to through the addition of trails, play fields, and playgrounds. (C) Reasonable Relationship. As new development adds more employment and/or residents to San Francisco, it will increase the demand for park facilities and park capacity. Fee revenue will be used to fund the acquisition and additional capacity of these park facilities. Each new development project will add to the incremental need for recreation and open space facilities described above. Improvements considered in the Nexus Study are estimated to be necessary to maintain the City's effective service standard. (D) Proportionality. The new facilities and costs allocated to new development are based on the existing ratio of the City’s service population to acres of existing recreation and open space. The scale of the capital facilities and associated costs are proportional to the projected levels of new development and the existing relationship between service population and recreation and open space. The cost of the deferred maintenance required to address any operational shortfall within the City’s recreation and open space provision will not be financed by development fees. (2) Childcare Findings. (A) Purpose. The fee will support the provision of childcare facility needs resulting from an increase in San Francisco's residential and employment population. (B) Use. The childcare impact fee will be used to fund capital projects related to infant, toddler, and preschool-age childcare. Funds will pay for the expansion of childcare slots for infant, toddler, and preschool children. (C) Reasonable Relationship. New residential and commercial development in San Francisco will increase the demand for infant, toddler and preschool-age childcare. Fee revenue will be used to fund the capital investment needed for these childcare facilities. Residential developments will result in an increase in the residential population, which results in growth in the number of children requiring childcare. Commercial development results in an increase of the employee population, which similarly require childcare near their place of work. Improvements considered in this study are estimated to be necessary to maintain the City's provision of childcare at its effective service standard. (D) Proportionality. The costs allocated to new development are based on the estimated childcare demand generated by future development 1 Capital costs required to provide these childcare spaces to accommodate the new population are based on the City’s cost of funding new childcare facilities and assigned to new housing units and new non-residential development on a per-square-foot basis. The scale of the capital facilities and associated costs are directly proportional to the expected levels of new development and the corresponding increase in childcare demands. (3) Complete Streets Findings. (A) Purpose. “Complete Streets” encompass sidewalk improvements, such as lighting, landscaping, and safety measures, and sustainable street elements more broadly, including bike lanes, sidewalk paving and gutters, lighting, street trees and other landscaping, bulb-outs, and curb ramps. The primary purpose of the Complete Streets impact fee is to fund capital investments in bicycle, streetscape, and pedestrian infrastructure to accommodate the growth in street activity. (B) Use. The Complete Streets fees will be used to implement the Better Streets Plan (2010), on file in Board File No. 230764, including enhancement of the pedestrian network in the areas surrounding new development – whether through sidewalk improvements, construction of complete streets, or pedestrian safety improvements – and development of new premium bike lanes, upgraded intersections, additional bicycle parking, and new bicycle sharing program stations..1 (C) Reasonable Relationship. New residential and non-residential development brings an increased demand for new or expanded and improved Complete Streets infrastructure. This relationship between new development, an influx of residents and workers, and a demand for complete streets infrastructure provides the nexus for an impact fee. Complete Streets impact fees, imposed on new development, fund the construction of new and enhanced complete streets infrastructure for the additional residents and workers directly attributable to new development. (D) Proportionality. The fees allocated to new development are based on the existing ratio of the City’s service population to a conservative estimate of its current Complete Streets infrastructure provision to date – in the form of square feet of Complete Streets sidewalk per thousand service population units. The costs associated with this level of improvement are drawn from the cost per square foot associated with constructing Complete Streets elements based on data from the San Francisco Planning Department, Department of Public Works, Public Utilities Commission, and Municipal Transportation Agency. Due to the locational variation in the cost of building Complete Street elements, the fee calculation includes a 20 percent markup for the downtown area..1 The scale of the capital facilities and associated costs are directly proportional to the expected levels of new development and the existing relationship between service population and Complete Streets infrastructure. The cost of the deferred maintenance required to address any operational shortfall is not allocated to be funded by new development. (4) Transit Infrastructure Findings. (A) Purpose. Transit Infrastructure funds will be used to meet the demand for transit capital maintenance, transit capital facilities and fleet, and pedestrian and bicycle infrastructure generated by new development in the City. (B) Use. Transit Infrastructure fees will fund transit capital maintenance and transit capital facilities to maintain the existing level of service. Revenues for capital maintenance operating costs will improve vehicle reliability to expand transit services. Revenues for capital facilities will be used for transit fleet expansion, improvements to increase SFMTA transit speed and reliability, and improvements to regional transit operators. Though the fees are calculated based on transit maintenance and facilities, fee revenues may be used for pedestrian and bicycle improvements to complement revenue from the Complete Streets fee, including Area Plan complete street fees. (C) Reasonable Relationship. The Transit Infrastructure fee is reasonably related to the financial burden that development projects impose on the City. As development generates new trips, the SFMTA must increase the supply of transit services and therefore capital maintenance expenditures to maintain the existing transit level of service. Development also increases the need for expanded transit facilities due to increased transit and auto trips. (D) Proportionality. The existing level of service for transit capital maintenance is based on the current ratio of the supply of transit services (measured by transit revenue service hours) to the level of transportation demand (measured by number of automobile plus transit trips). The fair share cost of planned transit capital facilities is allocated to new development based on trip generation from new development as a percent of total trip generation served by the planned facility, including existing development. The variance in the fee by economic activity category based on trip generation, and the scaling of the fee based on the size of the development project, supports proportionality between the amount of the fee and the share of transit capital maintenance and facilities attributable to each development project. (5) Additional Findings. The Board finds that the Nexus Analysis and Level of Service Analysis establish that the fees are less than the cost of mitigation and do not include the costs of remedying any existing deficiencies. The City may fund the cost of remedying existing deficiencies through other public and private funds. The Board also finds that the Nexus Analysis and Level of Service Analysis establish that the fees do not duplicate other City requirements or fees. The Board further finds that there is no duplication in fees applicable on a Citywide basis and fees applicable within an Area Plan. Moreover, the Board finds that these fees are only one part of the City’s broader funding strategy to address these issues. Residential and non- residential impact fees are only one of many revenue sources necessary to address the City’s infrastructure needs. (Added by Ord. 50-15 , File No. 150149, App. 4/24/2015, Eff. 5/24/2015; amended by Ord. 188-15 , File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015; Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016; Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023) AMENDMENT HISTORY Nonsubstantive changes; Ord. 188-15 , Eff. 12/4/2015. Division (b) amended; new division (b)(5) added; former division (b)(5) redesignated as (b)(6) and amended; Ord. 200-15 , Eff. 12/25/2015 and Ord. 222-15 , Eff. 1/17/2016. Divisions (b), (b)(1)(D), (b)(2)(D), (b)(3)-(b)(3)(D) amended; (b)(4)-(b)(4)(D) deleted; (b)(5)-(6) amended as (b)(4)-(5); Ord. 193-23, Eff. 10/16/2023. CODIFICATION NOTE 1. So in Ord. 193-23. SEC. 402. PROCEDURE FOR PAYMENT AND COLLECTION OF DEVELOPMENT FEES.