423.4

SEC. 423.4. IMPOSITION OF EASTERN NEIGHBORHOODS INFRASTRUCTURE IMPACT FEE. (a) Determination of Requirements. The Department shall determine the applicability of Section 423.1 et seq. to any development project requiring a first construction document and, if Section 423.1 et seq. is applicable, the amount of Eastern Neighborhoods Infrastructure Impact 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 Notice to Development Fee Collection Unit at DBI. Prior to the issuance of a building or site permit for a development project subject to the requirements of Section 423.1 et seq., the Department shall notify the Development Fee Collection Unit at DBI of its final determination of the amount of Eastern Neighborhoods Infrastructure Impact Fees required, including any reductions calculated for an In-Kind Improvements Agreement, in addition to the other information required by Section 402(b) of this Article. (c) 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 Section 422.1 et seq. that has elected to fulfill all

or part of its Eastern Neighborhoods Impact Fee requirement with an In-Kind Improvements Agreement. If the Department notifies the Unit at such time that the sponsor has not satisfied any of the terms of the In-Kind Improvements Agreement, 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 422.1 et seq., either through conformance with the In-Kind Improvements Agreement or payment of the remainder of the Eastern Neighborhood Infrastructure Impact Fees that would otherwise have been required, plus a deferral surcharge as set forth in Section 107A.13.3.1 of the San Francisco Building Code. (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 422.1 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 and such action is subsequently modified, superseded, vacated, or reversed by the Department or the Commission, Board of Appeals, the Board of Supervisors, or by court action, the procedures of Section 402(c) of this Article 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. 423.5. THE EASTERN NEIGHBORHOODS COMMUNITY IMPROVEMENTS FUND. (a) Purpose. There is hereby established a separate fund set aside for a special purpose entitled the Eastern Neighborhoods Community Improvements Fund ("Fund"). All monies collected by the Development Fee Collection Unit at DBI pursuant to Section 423.3(e) shall be deposited in the Fund maintained by the Controller. The receipts in the Fund shall be appropriated in accordance with the normal budgetary process to fund Community Improvements subject to the conditions of this Section. Monies collected by the Development Fee Collection Unit at DBI pursuant to Section 423.3 shall be deposited as follows: (1) For projects located in any zoning districts in the Eastern Neighborhoods Program Area, excluding Designated Affordable Housing Zones, DBI shall deposit 100% of the funds in the Eastern Neighborhoods Community Improvements Fund maintained by the Controller. (2) For projects located in Designated Affordable Housing Zones, DBI shall deposit 25% of the funds in the Eastern Neighborhoods Community Improvement Fund and 75% in the Citywide Affordable Housing Fund, established in Administrative Code Section 10.100-49, but the funds shall be separately accounted for and expended as provided in this Section. (b) Use of Funds. The Fund shall be administered by the Board of Supervisors. (1) All monies deposited in the Fund or credited against Fund obligations shall be used to design, engineer, acquire, improve, and develop public open space and recreational facilities; transit, streetscape and public realm improvements; and child care facilities. Funds may be used for childcare facilities that are not publicly owned or publicly-accessible. (A) Funds collected from all zoning districts in the Eastern Neighborhoods Program Area, excluding Designated Affordable Housing Zones shall be allocated to accounts by improvement type according to Table 423.5. (B) Funds collected in Designated Affordable Housing Zones, as defined in Section 401, shall be allocated to accounts by improvement type as described in Table 423.5A.

Table 423.5 BREAKDOWN OF USE OF EASTERN NEIGHBORHOODS COMMUNITY IMPROVEMENTS FEE/FUND BY IMPROVEMENT TYPE* Improvement Type Dollars Received From Residential Development Dollars Received From Non- Residential/Commercial Development Complete Streets: Pedestrian and Streetscape Improvements, Bicycle Facilities 31% 34% Transit 10% 53% Recreation and Open Space 47.5% 6% Childcare 6.5% 2% Program Administration 5% 5%

* Does not apply to Designated Affordable Housing Zones, which are addressed in Table 423.5A

Table 423.5A BREAKDOWN OF USE OF EASTERN NEIGHBORHOODS COMMUNITY IMPROVEMENTS FEE/FUND BY IMPROVEMENT TYPE FOR DESIGNATED AFFORDABLE HOUSING ZONES Improvement Type Dollars Received From Residential Development Dollars Received From Non- Residential/Commercial Development Affordable Housing preservation and development 75% n/a Complete Streets: Pedestrian and Streetscape Improvements, Bicycle Facilities 4% 36% Transit 6% 53% Recreation and Open Space 10% 6% Program administration 5% 5%

(2) 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, or to complete a nexus study to demonstrate or update the relationship between 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 improvement. All interest earned on this account shall be credited to the Eastern Neighborhoods Community Improvements Fund. (c) Funds shall be allocated to accounts by improvement type as described below: (1) Funds collected from all zoning districts in the Eastern Neighborhoods Program Area, excluding Designated Affordable Housing Zones shall be allocated to accounts by improvement type according to Table 423.5. Funds collected from MUR Zoning Districts outside of the boundaries of either the East SoMa or Western SoMa Area Plans shall be allocated to accounts by improvement type according to Table 423.5. (2) Funds collected in Designated Affordable Housing Zones, as defined in Section 401, shall be allocated to accounts by improvement type as described in Table 423.5A. For funds allocated to affordable housing, MOHCD shall expend the funds as follows: (A) All funds collected from projects in the Mission NCT shall be expended on housing programs and projects within the Mission Area Plan boundaries. (B) Collectively, the first $10 million in housing fees collected between the two Designated Affordable Housing Zones shall be utilized for the acquisition and rehabilitation of existing housing. (d) The Planning Department shall work with other City agencies and commissions, specifically the Department of Recreation and Parks, DPW and MFA to develop a proposed expenditure plan, and to develop agreements related to the administration of the improvements to existing public facilities and development of new public facilities within public rights-of way or on any acquired public property. The proposed expenditure plan shall be approved by the Board of Supervisors.