414.15

SEC. 414.15. DECREASE IN CHILD CARE FORMULAE AFTER STUDY. If the Commission determines after review of an empirical study that the formulae set forth in Sections 414.5 through 414.9 impose a greater requirement for child care facilities than is necessary to provide child care for the number of employees attracted to office and hotel development projects subject to Section 414.1 et seq., the Commission shall, within three years of making such determination, refund that portion of any fee paid or permit a reduction of the space dedicated for child care by a sponsor consistent with the conclusions of such study. The Commission shall adjust any sponsor's requirement and the formulae set forth in Sections 414.5 through 414.9 so that the amount of the exaction is set at the level necessary to provide child care for the employees attracted to office and hotel development projects subject to Section 414.1 et seq. (Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 55-11, File No. 101523, App. 3/23/2011) [CHILD CARE REQUIREMENTS FOR RESIDENTIAL PROJECTS] SEC. 414A. CHILD CARE REQUIREMENTS FOR RESIDENTIAL PROJECTS. SEC. 414A.1. PURPOSE AND FINDINGS. (a) Purpose. Residential developments in the City are benefitted by the availability of childcare for persons residing in such developments. However, the supply of childcare in the City has not kept pace with the demand for childcare created by new residents. Due to this shortage of childcare, residents unable to find accessible and affordable quality childcare will be forced either to live where such services are available outside of San Francisco or leave the work force, in some cases seeking public assistance to support their children. In either case, there will be a detrimental effect on San Francisco's economy and its quality of life. The San Francisco General Plan requires that the City "balance housing growth with adequate infrastructure that serves the city's growing population." In light of this provision, the City should impose requirements on developers of certain residential projects designed to mitigate the adverse effects of the increase in population facilitated by such projects. (b) Findings. The Board of Supervisors reviewed the San Francisco Citywide Nexus Analysis (“Nexus Analysis”), and the San Francisco Infrastructure Level of Service Analysis, both on file with the Clerk of the Board of Supervisors in File No. 230764. The Board of Supervisors reaffirms the findings and conclusions of those studies as they relate to the impact of residential development on childcare and hereby readopts the General Findings in Section 401A(a) of the Planning Code and the Specific Findings in Section 401A(b) of the Planning Code relating to childcare. (Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016; amended by Ord. 193-23, File No. 230764, App. 9/15/2023, Eff. 10/16/2023) AMENDMENT HISTORY Division (b) amended; Ord. 193-23, Eff. 10/16/2023. SEC. 414A.2. DEFINITIONS. See Section 401 of this Article for definitions applicable to Section 414A et seq. (Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016) SEC. 414A.3. APPLICATION OF RESIDENTIAL CHILD CARE IMPACT FEE. (a) Application. (1) Sections 414A.1 et seq. shall apply to any residential development project that results in: (A) At least one net new dwelling unit; (B) Additional space in an existing dwelling unit of more than 800 gross square feet; (C) At least one net new group housing facility or residential care facility; or (D) Additional space in an existing group housing or residential care facility of more than 800 gross square feet. (2) Sections 414A.1 et seq. shall not apply to (A) That portion of a residential development project consisting of a retail use; (B) That portion of a residential development project located on property owned by the United States or any of its agencies; (C) That portion of a residential development project located on property owned by the State of California or any of its agencies, with the exception of such property not used for a governmental purpose; (D) That portion of a residential development project located on property under the jurisdiction of the Port of San Francisco or the San Francisco Office of Community Investment and Infrastructure where the application of Sections 414A.1 et seq. is prohibited by State or local law; and (E) Any residential development project that has obtained its First Construction Document prior to the effective date of Sections 414A.1 et seq. (Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016; amended by Ord. 7-19, File No. 180917, App. 1/25/2019, Eff. 2/25/2019) AMENDMENT HISTORY Divisions (a)(1)-(a)(1)(B), (a)(2), and (a)(2)(D)-(E) amended; Ord. 7-19, Eff. 2/25/2019. SEC. 414A.4. IMPOSITION OF RESIDENTIAL CHILD CARE IMPACT FEE REQUIREMENT. (a) Determination of Requirements. The Department shall determine the applicability of Section 414A to any development project requiring a First Construction Document and, if Section 414A is applicable, the number of gross square feet of space subject to its requirements, and shall impose these requirements as a condition of approval for issuance of the First Construction Document for the development project to mitigate the impact on the availability of child-care facilities that will be caused by the residents attracted to the proposed development project. The project sponsor shall supply any information necessary to assist the Department in this determination. (b) Department Notice to Development Fee Collection Unit at DBI. After the Department has made its final determination of the net addition of gross square feet of the space subject to Section 414A.1 et seq., it shall immediately notify the Development Fee Collection Unit at the Department of Building Inspection (DBI) of its determination in addition to the other information required by Section 402(b) of this Article. (c) Timing of Fee Payments. The Residential Child Care Impact Fee shall be paid to DBI for deposit into the Child Care Capital Fund at the time required by Section 402(d). (d) Development Fee Collection Unit Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing or electronically to the Department prior to issuing the First Certificate of Occupancy for any development project subject to this Section 414A whether the project sponsor has paid the required Residential Child Care Impact Fee. If the Department notifies the Unit at such time that the sponsor has not paid this fee in full, the Director of DBI shall deny any and all Certificates of Occupancy until the subject project is brought into compliance with the requirements of this Section 414A. (e) Process for Revisions of Determination of Requirements. In the event that the Department or Commission takes action affecting any development project subject to Section 414A, and such action is subsequently modified, superseded, vacated, or reversed by the Board of Appeals, the Board of Supervisors, or by a court, the procedures of Section 402(c) of this Article 4 shall be followed.

(f) Waiver or Reduction. Development projects may be eligible for a waiver or reduction of impact fees, per Section 406 of this Article 4, including Section 406(d), in the event a project located in an Area Plan may be assessed a child care fee. (Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016; amended by Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020) AMENDMENT HISTORY Division (c) amended; Ord. 63-20, Eff. 5/25/2020. SEC. 414A.5. CALCULATION OF THE RESIDENTIAL CHILD CARE IMPACT FEE. (a) For development projects for which the Residential Child Care Impact Fee is applicable: (1) Any net addition of gross square feet shall pay per the Fee Schedule in Table 414A.5A; and (2) Any replacement of gross square feet or change of use shall pay per the Fee Schedule in Table 414A.5B.

TABLE 414A.5A FEE SCHEDULE FOR NET ADDITIONS OF GROSS SQUARE FEET Residential projects of 10 or more units Residential Projects of up to 9 units $1.83/gsf $0.91/gsf

TABLE 414A.5B FEE SCHEDULE FOR REPLACEMENT OF USE OR CHANGE OF USE

Residential Use to Residential Use Non-Residential to Residential PDR to Residential Residential projects of 10 or more units $0/gsf $0.26/gsf $0.26/gsf Residential Projects of up to 9 units $0/gsf $0.13/gsf $0.13/gsf

(b) Credit for On-Site Childcare Facilities. A project may be eligible for a credit for on-site Childcare Facilities: The project sponsor must apply to the Planning Department to receive a credit for on-site child care facilities. To qualify for a credit, the facility shall be open and available to the general public on the same terms and conditions as to residents of the residential development project in which the facilities are located. Subject to the review and approval of the Planning Commission, the project sponsor may apply for a credit up to 100% of the required fee. The City shall enter into an In-Kind Agreement with the Project Sponsor under the conditions described for In-Kind Agreements in Section 421.3(d), subsections (2) through (5). (Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016) SEC. 414A.6. OPTION TO PROVIDE SMALL FAMILY CHILD CARE HOME IN LIEU OF FEE. (a) Election to Provide Designated Child Care Units in Lieu of Residential Child Care Impact Fee. Consistent with the timing to elect the option to provide On- or Off-site Units under Section 415.5(g), the sponsor of a development project subject to the requirements of Sections 414A.1 et seq., may elect to fulfill all or a portion of the Residential Child Care Impact Fee requirement by creating one or more Designated Child Care Units in the project, as follows: (1) The number of Designated Child Care Units in a project subject to this Section 414A shall be as follows: TABLE 414A.6A NUMBER OF DESIGNATED CHILD CARE UNITS

Residential Project Size Maximum allowable Designated Child Care Units 25-100 Dwelling Units 1 Unit 101-200 Dwelling Units 2 Units 201 or more Dwelling Units 3 Units

(2) A Designated Child Care Unit shall have two or more bedrooms and shall be 1,000 square feet or more; (3) A Designated Child Care Unit shall be offered only for rent and only to a tenant who agrees to operate a State-licensed Small Family Child Care Home in the Unit; (4) A Designated Child Care Unit shall be reserved for a period of at least ten years from the date the Designated Unit is first leased to a tenant for use as a State-licensed Small Family Child Care Home; and (5) A Designated Child Care Unit may not be an On-site or Off-site Unit, as defined in Planning Code Sections 415 et seq. establishing the Inclusionary Affordable Housing Program. (b) Calculation of Value of Designated Child Care Unit in Lieu of Residential Child Care Impact Fee. For purposes of determining the value of a Designated Child Care Unit to calculate a waiver of the Child Care Fee, the City shall use the following formula: Total number of gross square feet of the unit or units designated as Child Care Units * Residential Child Care Impact Fee * 20. This value shall be deducted from the amount of the Residential Child Care Impact Fee owed. (c) Development of Procedures. Within nine months of the Effective Date of the ordinance in Board File No. 180917 amending this subsection (c), the Office of Early Care and Education, in consultation with the Mayor’s Office of Housing and Community Development, will provide program regulations for Designated Child Care Units. The program regulations shall include the eligibility and occupancy requirements, the application process and assignment of the units, and the roles and responsibilities of the agencies in enforcing the program regulations. (1) The Office of Early Care and Education shall: (A) develop a set of written procedures, standards, and eligibility requirements for selecting State-licensed Small Family Child Care Home operators for these Designated Child Care Units; (B) provide outreach and information to the early care and education community about the availability of Designated Child Care Units; and (C) monitor Designated Child Care Units for program compliance listed in subsection (d) as Responsibilities of Operators of Small Family Child Care Homes and refer any instances of noncompliance as a child care provider to the Planning Department for enforcement.

(2) MOHCD shall: (A) publish program regulations on its website and update from time to time; and (B) screen applicants for income and household eligibility and perform annual income certification consistent with the Inclusionary Affordable Housing Monitoring and Procedures Guidelines as updated from time to time. (d) Responsibilities of Operators of Small Family Child Care Homes in Designated Child Care Units. A tenant of any Designated Child Care Unit shall agree to operate a State- licensed Small Family Child Care Home in the unit for a minimum of ten years as follows: (1) If, in the determination of the Office of Early Care and Education, the tenant does not begin to operate a State-licensed Small Family Child Care Home in the unit within nine months of occupying the unit, or if the tenant ceases to operate a State-licensed Small Family Child Care Home at any point in time within ten years from the date the Designated Child Care Unit is first leased to a tenant to operate a State-licensed Small Family Child Care Home, all tenants in the Unit shall be required to vacate the unit within 180 days, provided that if a Small Family Child Care Home has operated in the unit for ten years or more, a tenant who operated a Small Family Child Care Home in the unit will not be required to vacate the unit after such 10-year period; (2) At least one-third of the children served by the Small Family Child Care Home shall be from Households of Low- or Moderate-income, as defined in Section 401; and (3) The Small Family Child Care Home established in any Designated Child Care Unit shall serve at least four children of whom the operator of the Small Family Child Care Home is not a parent or guardian, based on an average over the previous 12 months. (e) Option to Provide Designated Child Care Units in the Ground Floor on Commercial Street Frontages. On street frontages where ground floor commercial uses are required pursuant to Section 145.4 of this Code, a Designated Child Care Unit may be considered an Active Commercial Use if the unit meets all of the following requirements: (1) The Dwelling Unit is a Rental Unit, as defined in Planning Code Section 401; (2) The Designated Child Care Unit shall have two or more bedrooms and shall be 1,000 square feet or more; (3) If a Designated Child Care Unit is being added to an existing building in the ground floor commercial space, and it is not physically possible to provide two code-complying bedrooms, such Designated Child Care Unit shall have one bedroom and shall be 1,000 square feet or more; (4) No more than one Designated Child Care Unit shall be permitted in each building; (5) The Dwelling Unit is eligible to be designated a below market rate unit affordable to moderate-income households, which shall have an affordable rent set at 80% of Area Median Income or less, with households earning from 65% to 90% of Area Median Income eligible to apply for such dwelling unit, but the Dwelling Unit may not be an On-site or Off-site Affordable Housing Unit, as required by Planning Code Sections 415 et seq. establishing the Inclusionary Affordable Housing Program; (6) A State-licensed Small Family Child Care Home is provided in such Dwelling Unit and complies with the applicable requirements set forth in Planning Code Section 414A.6(d) for a Designated Child Care Unit; (7) If a Designated Child Care Unit no longer provides a State-licensed Small Family Child Care Home in the unit, the owner of the project in which the unit is located shall provide notice to the Mayor’s Office of Housing and Community Development (MOHCD) and the Office of Early Care and Education within 30 days. All tenants in the Unit shall be required to vacate the unit within 180 days. The owner of the project in which the Designated Child Care Unit is located shall allow MOHCD, as assisted by the Office of Early Care and Education, to attempt to fill that unit with a Tenant eligible under the Inclusionary Affordable Housing Program who is also an eligible operator of a Small Family Child Care Home. If, in the determination of the Office of Early Care and Education, the tenant fraudulently did not intend to operate a State-licensed Small Family Child Care Home in the unit within nine months of occupying the unit, all tenants in such unit shall be required to vacate the unit within 60 days. MOHCD shall use its best efforts to fill such vacated unit with a Tenant registered with the Office of Early Care and Education and licensed to provide Small Family Child Care Home who also meets the Income restrictions for a Designated Unit; and (8) The Designated Child Care Unit shall provide a State-licensed Small Family Child Care Home in the Designated Child Care Unit for a minimum of 15 years. In the event one or more tenants has provided such child care in the Designated Child Care Unit for 15 years, the existing tenant who has provided a State-licensed Small Family Child Care Home in the Designated Child Care Unit shall not thereafter be obligated to vacate the unit if such tenant ceases to provide a State-licensed Small Family Child Care Home in the Designated Child Care Unit, and shall be permitted to remain in the Unit until such tenant elects to vacate or fails to comply with the laws applicable to occupancy of the Unit. Upon such vacation, the Unit shall not be designated a below market rate unit, and the owner may rent the Unit at market rate. (Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016, Oper. 7/19/2016 ; amended by Ord. 7-19, File No. 180917, App. 1/25/2019, Eff. 2/25/2019) AMENDMENT HISTORY Divisions (a), (a)(3)-(5), and (b) amended; table amended and designated as Table 414A.6A; division (c) amended and redesignated as divisions (c), (c)(1)(C), and (d); new divisions (c)(1)- (c)(1)(B) and (c)(2)(A)-(B) added; former divisions (c)(1)- (3) amended and redesignated as (d)(1)- (d)(3); divisions (e)-(e)(8) added; Ord. 7-19, Eff. 2/25/2019. SEC. 414A.7. USE OF FEES. All monies contributed pursuant to the provisions of Section 414A shall be deposited in the Child Care Capital Fund established by Section 414.14 of this Code. (Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016) SEC. 414A.8. NOTICE OF AVAILABLE DESIGNATED UNITS. Whenever a Designated Unit becomes available for rent, within 5 business days, the owner of the Unit shall notify governmental and nonprofit entities that can assist in publicizing the availability of the Unit, including, at a minimum, the following entities: the Office of Early Care and Education, the Family Child Care Association of San Francisco, the Children's Council, and Wu Yee Children's Services. (Added by Ord. 2-16 , File No. 150793, App. 1/19/2016, Eff. 2/18/2016) [INCLUSIONARY AFFORDABLE HOUSING PROGRAM] SEC. 415. HOUSING REQUIREMENTS FOR RESIDENTIAL AND LIVE/WORK DEVELOPMENT PROJECTS. (See Interpretations related to this Section.) Sections 415.1 through 415.11, hereafter Section 415.1 et seq., set forth the requirements and procedures for the Inclusionary Affordable Housing Program (“Program” or “Inclusionary Housing Program”). The Planning Department and MOHCD shall periodically publish a Procedures Manual containing procedures for monitoring and enforcement of the policies and procedures for implementation of this Program. The Procedures Manual must be made available on the Department’s web site. The Procedures Manual shall not be amended, except for an annual update of the affordability housing guidelines, which reflect updated income limits, prices, and rents, without approval of the Commission or as otherwise specified herein. The Procedures Manual in effect at the time of initial purchase or initial rental of an Affordable Unit shall govern the regulation of that unit until it is sold or re-rented unless an owner or current tenant chooses to be governed by all of the more up-to-date provisions of the then-current Procedures Manual. In that case, the owner or tenant must agree to be governed by the totality of the new regulations – an owner or tenant may not pick some provisions from the Procedures Manual in effect at the time of initial purchase or initial rental and some in effect in the then-current Procedures Manual. If the owner or tenant chooses to be governed by the then-current Procedures Manual he or she shall sign an agreement with the City to that effect, and the Department and MOHCD shall apply all of the rules and regulations in the then-current Procedures Manual to the unit. (Added as Sec. 315 by Ord. 37-02, File No. 001262, App. 4/5/2002; amended by Ord. 101-07, File No. 060529, App. 5/4/2007; Ord. 198-07, File No. 070444, App. 8/10/2007; redesignated and amended by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021)