418.4

SEC. 418.4. IMPOSITION OF COMMUNITY INFRASTRUCTURE IMPACT FEE AND SOMA STABILIZATION FEE. (a) Determination of Requirements. The Department or Commission shall determine the applicability of Section 418.1 et seq. to any development project requiring a first construction document and, if Section 418.1 et seq. is applicable, the amount of Community Infrastructure Impact and SOMA Stabilization Fees required and shall impose these requirements as a condition of approval for issuance of the first construction document for the development project. The project sponsor shall supply any information necessary to assist the Department in this determination. (b) Department's Notice to Development Fee Collection Unit at DBI. Prior to issuance of a building or site permit for a development project subject to the requirements of Section 418.1 et seq., the Department shall notify the Development Fee Collection Unit at DBI of its final determination of the amount of Community Infrastructure and SOMA Stabilization Fees required, including any fee credits for in-kind improvements, in addition to the other information required by Section 402(b) of this Article. (c) Development Fee Collection Unit's Notice to Department Prior to Issuance of the First Certificate of Occupancy. The Development Fee Collection Unit at DBI shall provide notice in writing and electronically to the Department prior to issuing the first certificate of occupancy for any development project subject to Section 418.1 et seq. that has elected to fulfill all or part of the requirement with an In-Kind Improvement Agreement. If the Department notifies the Unit at such time that the sponsor has not satisfied the requirements, the Director of

DBI shall deny any and all certificates of occupancy until the subject project is brought into compliance with the requirements of Section 418.1 et seq. (d) Process for Revisions of Determination of Requirements. In the event that the Department or the Commission takes action affecting any development project subject to Section 418.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the Department or the Commission, Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) shall be followed. (Added by Ord. 108-10, File No. 091275, App. 5/25/2010; Ord. 55-11, File No. 101523, App. 3/23/2011) SEC. 418.5. RINCON HILL COMMUNITY IMPROVEMENTS FUND. (a) There is hereby established a separate fund set aside for a special purpose entitled the Rincon Hill Community Improvements Fund ("Fund"). All monies collected by the Development Fee Collection Unit at DBI pursuant to Section 418.3 shall be deposited in the Fund maintained by the Controller. The receipts in the Fund shall be appropriated in accordance with law through the normal budgetary process to fund public infrastructure and other allowable improvements subject to the conditions of this Section. (b) Use of Funds. (1) Rincon Hill Infrastructure. All monies deposited in the Fund shall be used solely to design, engineer, acquire, improve, and develop neighborhood recreation and open spaces, pedestrian and streetscape improvements, and bicycle infrastructure that result in new publicly-accessible facilities or other allowable improvements within the Rincon Hill Downtown Residential (DTR) District or within 250 feet of the District. These expenditures shall be consistent with the Rincon Hill Public Open Space System as described in Map 5 of the Rincon Hill Area Plan of the General Plan and the Rincon Hill Streetscape Plan. The Fund shall be allocated in accordance with Table 418.5.

Table 418.5 Breakdown of Use of Rincon Hill Community Improvements Fee by Infrastructure Type Improvement Type Dollars Received from Residential Development Dollars Received from Commercial Development Complete Streets: Pedestrian and Streetscape Improvements 79% Not applicable Recreation and Open Space 16% Not applicable Program Administration 5% Not applicable

(2) SoMa Stabilization Fund. Notwithstanding Subsection (b)(1) above, $6 million of the Fund shall be transferred to the SoMa Stabilization Fund described in Section 418.7 to be used exclusively for the following expenditures: SoMa Open Space Facilities Development and Improvement; Community Facilities Development and Improvement; SoMa Pedestrian Safety Planning, Traffic Calming, and Streetscape Improvement; and Development of new affordable housing in SoMa. The Board of Supervisors finds that it is in the best interest of the City that the Rincon Hill Community Improvements be built. (3) Program Administration. No portion of the Fund may be used, by way of loan or otherwise, to pay any administrative, general overhead, or similar expense of any public entity, except for the purposes of administering this fund in an amount not to exceed 5% of the total annual revenue. Administration of this fund includes maintenance of the Fund, time and materials associated with processing and approving fee payments and expenditures from the Fund (including necessary hearings), reporting or informational requests related to the Fund, and coordination between public agencies regarding determining and evaluating appropriate expenditures of the Fund. Monies from the Fund may be used by the Planning Commission to commission economic analyses for the purpose of revising the fee under Section 418.3 above, to complete a nexus study to demonstrate or update the relationship between residential development and the need for public facilities, or to commission landscape, architectural or other planning, design and engineering services in support of the proposed public improvements. All interest earned on this account shall be credited to the Rincon Hill Community Improvements Fund. (c) Acquisition of New Open Space. A public hearing shall be held by both the Planning and Recreation and Parks Commissions to elicit public comment on proposals for the acquisition of property using monies in the Fund or through agreements for financing In-Kind Community Improvements via a Mello-Roos Community Facilities District that will ultimately be maintained by the Department of Recreation and Parks. Notice of public hearings shall be published in an official newspaper at least 20 days prior to the date of the hearing, which notice shall set forth the time, place, and purpose of the hearing. The hearing may be continued to a later date by a majority vote of the members of both Commissions present at the hearing. The Recreation and Parks Commission may vote to recommend to the Board of Supervisors that it appropriate money from the Fund for acquisition of property for park use and/or for development of property for park use. (d) The Planning Commission shall work to develop a proposed expenditure plan with other City agencies and commissions, specifically the Department of Recreation and Parks, DPW, and the San Francisco Municipal Transportation Agency, to develop a proposed expenditure plan, and to develop agreements related to the administration of the development of new public facilities within public rights-of-way or on any acquired property. The proposed expenditure plan shall be subject to approval by the Board of Supervisors (e) The Director shall have the authority to prescribe rules and regulations governing the Fund, which are consistent with Section 418.1 et seq. The Director of Planning, as the head of the Interagency Plan Implementation Committee (IPIC), shall make recommendations to the Board regarding allocation of funds. (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. 263-13, File No. 130549, App. 11/27/2013, Eff. 12/27/2013; Ord. 50-15 , File No. 150149, App. 4/24/2015, Eff. 5/24/2015) AMENDMENT HISTORY [Former] division (c) amended; Ord. 263-13, Eff. 12/27/2013. Divisions (a)-(b)(3) amended; former division (c) deleted; former divisions (d)-(f) redesignated as (c)-(e) and amended; Ord. 50-15 , Eff. 5/24/2015. SEC. 418.6. DIRECTOR OF PLANNING'S EVALUATION. Within 18 months following the effective date of Section 418.1 et seq., the Director of Planning and the Director of MOH shall report to the Planning Commission, the Board of Supervisors, and the Mayor on the status of compliance with Section 418.1 et seq., the efficacy of Section 418.1 et seq. in funding infrastructure and stabilization programs in the Rincon Hill Program Area and in SoMa, and the impact of the Program on property values in the vicinity of the Program Area. (Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 270-10, File No. 100917, App. 11/5/2010) SEC. 418.7. SOMA COMMUNITY STABILIZATION FUND. (a) Purpose. There is hereby established a separate fund set aside for a special purpose entitled the SOMA Community Stabilization Fund (“Fund”), and within the Fund an account related to the Community Facilities District defined in Section 434 called the SoMa Community Facilities District Account (“Community Facilities District Account”). The Fund and the Community Facilities District Account shall be held and maintained by the Controller. All monies collected by DBI pursuant to Section 418.3 shall be deposited in the Fund, to be maintained by the Controller. The Controller may direct certain proceeds of the Community Facilities District special tax, as defined in Section 434, collected pursuant to Section 434, to be deposited into the Community Facilities District Account. Proceeds of bonds issued for the Community Facilities District shall not be deposited into the Community Facilities District Account. The receipts in the Fund and the Community Facilities District Account are hereby appropriated in accordance with law to be used solely to address the effects of destabilization on residents and businesses in SOMA subject to the conditions of this Section 418.7. (b) Use of Funds. (1) All monies deposited in the Fund shall be used to address the impacts of destabilization on residents and businesses in SOMA including assistance for: affordable housing and community asset building, small business rental assistance, development of new affordable homes for rental units for low income households, rental subsidies for low income households, down payment assistance for home ownership for low income households, eviction prevention, employment development and capacity building for SOMA residents, job growth and job placement, small business assistance, leadership development, community cohesion, civic participation, cultural preservation, and community based programs and economic development. Monies in the Community Facilities District Account may be used for the purposes specified in this subsection (b) that are authorized uses of Community Facilities District revenues under the proceedings for the Community Facilities District and that are described in the Central SoMa Implementation Program Document. (2) Monies from the Fund may be appropriated by the Mayor’s Office of Housing and Community Development (“MOHCD”) without additional approval by the Board of Supervisors to the Planning Commission or other City department or office to commission economic analyses for the purpose of revising the fee, to complete a nexus study to demonstrate the relationship between residential development and the need for stabilization assistance if this is deemed necessary, provided these expenses do not exceed a total of $100,000. The receipts in