414.10

SEC. 414.10. COMPLIANCE BY ENTERING INTO AN ARRANGEMENT WITH A NON-PROFIT ORGANIZATION. The sponsor of a development project subject to this Section may elect to satisfy its child-care requirement by entering into an arrangement pursuant to which a nonprofit organization will provide a child-care facility at a site within the City. The sponsor shall, prior to the issuance of the first certificate of occupancy by the Director of DBI for the development project, provide proof to the Director of Planning that: (a) A space for a child-care facility has been provided by the nonprofit organization, either for its own use if the organization will provide child-care services, or to a nonprofit child-care

provider without charge for rent, utilities, property taxes, building services, repairs, or any other charges of any nature, as evidenced by a lease or sublease and an operating agreement between the nonprofit organization and the provider with minimum terms of three years; (b) The child-care facility is a licensed child-care facility; (c) The child-care facility has a minimum gross floor area of 3,000 square feet or an area determined according to the following formula, whichever is greater: Net add. gross sq. ft. office or hotel space × .01 = sq. ft. of child-care facility In the event that the net addition of gross square feet of office or hotel space is less than 300,000 square feet, the child-care facility may have a minimum gross floor of 2,000 square feet or the area determined according to the above formula, whichever is greater; (d) The nonprofit organization has executed and recorded a binding written agreement, with a term of 20 years from the date of issuance of the first certificate of occupancy for the development project, pursuant to which the nonprofit organization guarantees that it will operate a child-care facility or it will lease or sublease a child-care facility to one or more nonprofit child-care providers for as long as there is a demonstrated need under Section 414.12, and that it will comply with all of the requirements imposed on the nonprofit organization under Section 414.10 and imposed on a sponsor under Sections 414.4. (e) To support the provision of a child-care facility in accordance with the foregoing requirements, the sponsor has paid to the nonprofit organization a sum which equals or exceeds the amount of the in-lieu fee which would have been applicable to the project under Section 414.8. (f) The Office of Early Care and Education, or any successor entity has determined that the proposed child-care facility will help meet the needs identified in the San Francisco Child Care Needs Assessment and will be consistent with the San Francisco Citywide Plan for Early Care and Education and Out of School Time; provided, however, that this Paragraph (f) shall not apply to any office or hotel development project approved by the Planning Commission prior to December 31, 1999. Upon compliance with the requirements of this Section, the nonprofit organization shall enjoy all of the rights and be subject to all of the obligations of the sponsor, and the sponsor shall have no further rights or obligations under Section 414.1 et seq. (Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 55-11, File No. 101523, App. 3/23/2011; Ord. 5-14 ,1 File No. 130864, App. 2/7/2014, Eff. 3/9/2014) AMENDMENT HISTORY Division (f) amended; Ord. 5-14 ,1 Eff. 3/9/2014. CODIFICATION NOTE 1. The reference in Ord. 5-14 to Sec. "410.10" appears to be a scrivener's error. Accordingly, the codifier has given effect to that ordinance by applying its amendments to this section. SEC. 414.11. SPONSOR REPORTS TO THE DEPARTMENT. In the event that a sponsor elects to satisfy its child-care requirement under Section 414.5, 414.6, 414.7, or 414.9 by providing an on-site or near-site child-care facility, the sponsor shall submit a report to the Department in January of each year for the life of the child-care facility. The report shall have attached thereto a copy of the license issued by the California Department of Social Services permitting operation of the child-care facility, and shall state: (1) The address of the child-care facility; (2) The name and address of the child-care provider operating the facility; (3) The size of the center in terms of floor area; (4) The capacity of the child-care facility in terms of the maximum number of children for which the facility is authorized to care under the license; (5) The number and ages of children cared for at the facility during the previous year; and (6) The fees charged parents for use of the facility during the previous year. (Added by Ord. 108-10, File No. 091275, App. 5/25/2010) SEC. 414.12. APPLICATION TO ELIMINATE THE CHILD-CARE FACILITY OR REDUCE THE FLOOR AREA. In the event that a sponsor elects to satisfy its child-care requirement under Sections 414.5, 414.6, 414.7 or 414.9 by providing an on-site or near-site child-care facility, or under Section 414.10 by agreement with a non-profit organization, the sponsor, or in the case of a facility created pursuant to Section 414.10 the non-profit organization, may apply to the Department to eliminate the facility or to reduce the floor area of the facility in any amount, providing, however, that the gross floor area of a reduced facility is at least 2,000 square feet. The Department shall schedule a public hearing on any such application before the Commission and provide notice pursuant to Section 306.3(a) of this Code at least two months prior to the hearing. The application may be granted only where the sponsor has demonstrated that there is insufficient demand for the amount of floor area then devoted to the on-site or near-site child-care facility. The actual reduction in floor area or elimination of the child-care facility shall not be permitted in any case until six months after the application is granted. Such application may be made only five years or more after the issuance of the first certificate of occupancy for the project. Prior to the reduction in floor area or elimination of the child care facility, the sponsor shall pay an in-lieu fee to the Development Fee Collection Unit at DBI to be computed as follows:

(20 - No. of years since issuance of first construction document or first certificate of occupancy, whichever applies) × Net reduction gross sq. ft. child-care facility × $100 = Total Fee

Upon payment of the fee in full to the Development Fee Collection Unit and upon request of the sponsor, Development Fee Collection Unit shall issue a certification that the fee has been paid. The sponsor shall present such certification to the Director prior to the reduction in the floor area or elimination of the child care facility. (Added by Ord. 108-10, File No. 091275, App. 5/25/2010) SEC. 414.13. AFFORDABILITY REQUIREMENT. The child care provider operating any child care facility pursuant to Sections 414.5, 414.6, 414.7 or 414.9 shall reserve at least 10 percent of the maximum capacity of the child care facility as determined by the license for the facility issued by the California Department of Social Services to be affordable to children of households of low income. The Department shall adopt rules and regulations to determine the rates to be charged to such households at the same time and following the procedures for the adoption of rules and regulations under Section 414.14. (Added by Ord. 108-10, File No. 091275, App. 5/25/2010) SEC. 414.14. CHILD CARE CAPITAL FUND. There is hereby established a separate fund set aside for a special purpose called the Child Care Capital Fund ("Fund"). All monies contributed pursuant to the provisions of Section 414.1 et seq., and all other monies from the City's General Fund or from contributions from third parties designated for the fund shall be deposited in the Fund. All monies in the fund shall be used solely to increase and/or improve the supply of child care facilities affordable to households of low and moderate income; except that monies from the fund shall be used by the Director to fund in a timely manner any nexus study required to demonstrate the relationship between commercial development projects and child care demand as described in Section 414.1. The Fund shall be administered by the Director, who shall adopt rules and regulations governing the disposition of the Fund which are consistent with Section 414.1 et seq. Such rules and regulations shall be subject to approval by resolution of the Board of Supervisors. (Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 55-11, File No. 101523, App. 3/23/2011)