424.4

SEC. 424.4. VAN NESS & MARKET RESIDENTIAL SPECIAL USE DISTRICT AFFORDABLE HOUSING FUND. (a) That portion of gross floor area subject to the $30 per gross square foot fee referenced in Section 424.3(b)(1) above shall be deposited into the special fund maintained by the Controller called the Citywide Affordable Housing Fund established by Section 413.9. Except as specifically provided in this Section, collection, management, enforcement, and expenditure of funds shall conform to the requirements related to in-lieu fees in Planning Code Section 415.1 et seq., specifically including, but not limited to, the provisions of Section 415.7. (b) Priorities for SUD Affordable Housing Fees Implementation. In order to increase the supply of housing Affordable to Qualifying Households in the Market and Octavia Plan Area, the Upper Market NCT District, and to the City, the following is the prioritization of the use of these fees; (1) First, to increase the supply of housing Affordable to Qualifying Households in the Van Ness & Market Residential Special Use District; (2) Second, to increase the supply of housing Affordable to Qualifying Households within one mile of the boundaries of the Market and Octavia Area Plan; (3) Third, to increase the supply of housing Affordable to Qualifying Households in the City and County of San Francisco.

(Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 251-19, File No. 190548, App. 11/15/2019, Eff. 12/16/2019; 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) AMENDMENT HISTORY Amended to update reference; Ord. 251-19, Eff. 12/16/2019. Section header amended; division (a) designated and amended; divisions (b)-(b)(3) added; Ord. 126-20, Eff. 8/31/2020. Divisions (a) and (b)-(b)(3) amended; Ord. 210-21, Eff. 12/20/2021. SEC. 424.5. VAN NESS & MARKET RESIDENTIAL SPECIAL USE DISTRICT INFRASTRUCTURE FUND. (a) Purpose. There is hereby established a separate fund set aside for a special purpose entitled the Van Ness and Market Neighborhood Infrastructure Fund ("Fund"). That portion of Gross Floor Area subject to the $15.00 per gross square foot fee referenced in Section 424.3(b)(ii) above shall be deposited into the Fund, maintained by the Controller. The receipts of the Fund are hereby 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.

Table 424.5A. Breakdown of Use of Van Ness and Market Neighborhood Infrastructure Fund by Infrastructure Type Infrastructure Type Dollars Received From Residential Development Dollars Received From Non-Residential Development Complete Streets: Pedestrian and Streetscape Improvements, Bicycle Facilities 44% 30% Transit 22% 45% Recreation and Open Space 21% 20% Childcare 8% Not applicable Program Administration 5% 5%

(1) Infrastructure. All monies deposited in the Fund, plus accrued interest, shall be used solely to design, engineer, acquire and develop neighborhood recreation and open space, pedestrian amenities and streetscape improvements, and bicycle infrastructure that result in new publicly-accessible facilities. First priority should be given to projects within the Van Ness & Market Residential Special Use District. Second Priority should be given to projects within the Market and Octavia Plan Area or within 1,250 feet of the Plan Area. These improvements shall be consistent with the Market and Octavia Area Plan of the General Plan and any Plan that is approved by the Board of Supervisors in the future for the area covered by the Van Ness & Market Residential Special Use District, except that monies from the Fund may be used by the Planning Commission to commission studies to revise the fee above, or to commission landscape, architectural or other planning, design and engineering services in support of the proposed public improvements. (2) 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. (3) At the close of a fiscal year in which the Market and Octavia Community Improvements Program has generated funding for no less than $211 million of expenditures in the plan area, including revenue generated through this Section 424.1 et seq., Section 421 fee payments, in-kind improvements, public grants, San Francisco general funds, assessment districts, and other sources which contribute to the overall programming, all future funds generated through Section 424.1 et seq. shall be redirected 100% to the Citywide Affordable Housing Fund. (4) Expenditure of funds shall be coordinated with appropriate City agencies as detailed in Section 421.5. (5) The Director shall have the authority to prescribe rules and regulations governing the Fund, which are consistent with Section 424.1 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. 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; Ord. 188-15 , File No. 150871, App. 11/4/2015, Eff. 12/4/2015; Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020) AMENDMENT HISTORY Former divisions (a)(i)-(vi) redesignated as (a)(1)-[former] (a)(6); [former] division (a)(3) amended; Ord. 263-13, Eff. 12/27/2013. Divisions (a) and (a)(1) amended; former division (a)(3) deleted; former divisions (a)(4)-(6) redesignated as (a)(3)- (5) and amended; Ord. 50-15 , Eff. 5/24/2015. Division (a) and Table 424.5A amended; Ord. 188-15 , Eff. 12/4/2015. Section header and division (a)(1) amended; Ord. 126-20, Eff. 8/31/2020. [TRANSIT CENTER DISTRICT] SEC. 424.6. TRANSIT CENTER DISTRICT OPEN SPACE IMPACT FEE AND FUND. Sections 424.6.1 through 424.6.4 set forth the requirements and procedures for the Transit Center District Open Space Impact Fee and Fund. The effective date of these requirements shall be the effective date of this Ordinance or the date a subsequent modification, if any, became effective. (Added by Ord. 182-12 , File No. 120665, App. 8/8/2012, Eff. 9/7/2012) SEC. 424.6.1. FINDINGS. (a) General. Existing public park and recreational facilities located in the downtown area are at or approaching capacity utilization by the population of the area. There is substantial additional population density, both employment and residential, planned and projected in the Transit Center District. This district, more than other parts of the downtown, is lacking in existing public open space amenities to support population growth. The need for additional public park and recreation facilities in the downtown area, and specifically in the Transit Center District, will increase as the population increases due to continued office, retail, institutional, and residential development. Additional population will strain and require improvement of existing open spaces both downtown and citywide, and will necessitate the acquisition and development of new public open spaces in the immediate vicinity of the growth areas. While the open space requirements imposed on individual commercial developments address the need for plazas and other local outdoor sitting areas to serve employees and visitors in the districts, and requirements imposed on individual residential developments address the need for small-scale private balconies, terraces, courtyards or other minor common space such as can be accommodated on individual lots, such open space cannot provide the same recreational opportunities as a public park. In order to provide the City and County of San Francisco with the financial resources to acquire and develop public park and recreation facilities necessary to serve the burgeoning population in the downtown area, a Transit Center District Open Space Fund shall be established as set forth herein. The Board of Supervisors adopts the findings of the the1 San Francisco Citywide Nexus Analysis (“Nexus Analysis”), on file with the Clerk of the Board in File No. 230764, in accordance with the California Mitigation Fee Act, Government Code Section 66001(a). (b) Transit Center District Open Space Impact Fee. Development impact fees are an effective approach to mitigate impacts associated with growth in population. The proposed Transit Center District Open Space Impact Fee shall be dedicated to fund public open space improvements in the Transit Center District Plan Area and adjacent downtown areas that will provide direct benefits to the property developed by those who pay into the fund, by providing necessary open space improvements needed to serve new development. The Planning Department has calculated the fee rate using accepted professional methods for calculating such fees. The calculations are described fully in the Nexus Analysis, on file with the Clerk of the Board in File No. 230764. The proposed fee, in combination with the Downtown Park Fee established in Section 412 et seq., is supported by the Nexus Analysis..1 While no project sponsor would be required to pay more than the maximum amount justified for that project as calculated in the Nexus Study, the Transit Center District Open Space Fee is tiered such that denser projects are assessed higher fees because it is economically feasible for such projects to pay a higher proportion of the maximum justified amount. The proposed fee covers impacts caused by new development only and is not intended to remedy existing deficiencies. The cost to remedy existing deficiencies will be paid for by public, community, and other private sources as described in the Nexus