424.8

SEC. 424.8. TRANSIT CENTER DISTRICT MELLO ROOS COMMUNITY FACILITIES DISTRICT PROGRAM. (a) Purpose. New construction that increases the density of the downtown area, and the C-3-O(SD) district in particular, will require the City to invest in substantial new infrastructure and services. By increasing height limits, relieving density and floor area ratio limitations, reducing requirements for acquisition of Transferrable Development Rights, and making other regulatory changes to the C-3-O(SD) district, the Transit Center District Plan, confers substantial benefits on properties in the district. In order to exceed base densities in the district, the City will require sufficient funding to supplement other applicable impact fees for infrastructure, improvements and services as described in the Transit Center District Implementation Document, including but not limited to the Downtown Extension of rail into the Transit Center, street improvements, and acquisition and development of open spaces. (b) Requirement. Any development on any lot in the C-3-O(SD) district that meets the applicability criteria of subsection (c) below shall participate in the Transit Center District Mello Roos Community Facilities District ("CFD") and successfully annex the lot or lots of the subject development into said CFD prior to the issuance of the first Temporary Certificate of Occupancy for the development. (c) Applicability. A development on any lot in the C-3-O(SD) District meeting any one of the following criteria shall be subject to the requirements of this Section 424.8. (1) The proposed project causes the development on the subject lot to exceed a floor area ratio of 9:1; or

(2) The proposed project would create a structure that exceeds the height limit that was applicable to the subject lot prior to the effective date of this Ordinance. (d) Notwithstanding Subsection (c) above, net additions of less than 20,000 gross square feet to existing buildings shall be exempt from the requirements of this Section, unless said addition results in a lot that exceeds a floor area ratio of 18:1. (Added by Ord. 182-12 , File No. 120665, App. 8/8/2012, Eff. 9/7/2012) [VAN NESS & MARKET COMMUNITY FACILITIES FEE AND FUND] SEC. 425. VAN NESS & MARKET COMMUNITY FACILITIES FEE AND FUND. Sections 425.1 through 425.4 set forth the requirements and procedures for the Van Ness & Market Community Facilities Fee and Fund. (Added by Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020) (Former Sec. 425 added by Ord. 108-10, File No. 091275, App. 5/25/2010; repealed by Ord. 296-18, File No. 180184, App. 12/12/2018, Eff. 1/12/2019) SEC. 425.1. PURPOSE AND FINDINGS. (a) Purpose. New development in the Van Ness & Market Residential Special Use District will increase the resident populations, generating new demand for use of community facilities, such as cultural facilities, health clinics, services for people with disabilities, and job training centers. New revenues to fund investments in community services are necessary to maintain the existing level of service. This fee will generate revenue that will be used to ensure an expansion in community service facilities as new development occurs in the Van Ness & Market Residential Special Use District area. (b) Findings. In adopting the amendments to the Market and Octavia Area Plan (Ordinance No. 125-20), on file with the Clerk of the Board of Supervisors in File No. 200557, and corresponding amendments to the Planning Code (Ordinance No. 126-20 on file with the Clerk of the Board of Supervisors in File No. 200559), the Board of Supervisors reviewed the Central SoMa Community Facilities Nexus Study, prepared by Economic & Planning Systems and dated March 2016, as well as the Hub Community Facilities Nexus Memo, prepared by the Planning Department and dated June 29, 2020 (collectively the “Nexus Study” for the purposes of Sections 425 et seq.). The Board of Supervisors reaffirms the findings and conclusions of the Nexus Study as they relate to the impact of new development in the Van Ness & Market Special Use District on community services facilities and hereby adopts the findings contained in the Nexus Study. (Added by Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020) SEC. 425.2. APPLICATION OF FEES. (a) Applicable Projects. Except as provided under Section 406(k) of this Code, the Van Ness & Market Community Facilities Fee is applicable to any development project within the Van Ness & Market Residential Special Use District, described in Section 249.33 of this Code, that: (1) Includes new construction, or an addition of space, in excess of 800 gross square feet of residential use; or (2) Converts 800 gross square feet or more of existing structure(s) from non-residential to residential use. (b) Fee Calculation. For applicable projects, the fee is $1.16 per net additional gross square foot of residential use or gross square foot of space converted from non-residential to residential use. (c) Option for In-Kind Provision of Community Improvements and Fee Credits. Project sponsors may propose to provide community improvements directly to the City. In such a case, the City may enter into an In-Kind Improvements Agreement with the sponsor and issue a partial or total fee waiver for the Van Ness & Market Community Facilities Fund from the Planning Commission, subject to the following rules and requirements: (1) Approval Criteria. The City shall not enter into an In-Kind Improvements Agreement unless the proposed in-kind improvements meet an identified community need for cultural/arts facilities, social welfare facilities, or community health facilities, as described in the Nexus Study. In addition, the City may reject in-kind improvements if they are not consistent with the priorities identified in the Market & Octavia Area Plan; the priorities identified by the Interagency Plan Implementation Committee (see Section 36 of the Administrative Code), or the Market & Octavia Citizens Advisory Committee; or other prioritization processes related to the Market & Octavia Area Plan community improvements programming. No physical improvement or provision of space otherwise required by the Planning Code or any other City Code shall be eligible for consideration as part of an In-Kind Improvements Agreement. (2) Valuation, Content, Approval Process, and Administrative Costs. The valuation, content, approval process, and administrative costs shall be undertaken pursuant to the requirements of subsections 421.3(d)(2) through 421.3(d)(5). (d) Timing of Fee Payments. The fee shall be due and payable to the Development Fee Collection Unit at DBI consistent with the timing set forth in Section 107A.13.3 of the San Francisco Building Code. (e) Waiver or Reduction of Fees. Development projects may be eligible for a waiver or reduction of impact fees, pursuant to Section 406. (Added by Ord. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020; amended by Ord. 188-25, File No. 250680, App. 10/6/2025, Eff. 11/6/2025; Ord. 196-25, File No. 250657, App. 10/24/2025, Eff. 11/24/2025) AMENDMENT HISTORY Division (a) amended; Ord. 188-25, Eff. 11/6/2025. Division (d) amended; Ord. 196-25, Eff. 11/24/2025. SEC. 425.3. IMPOSITION OF VAN NESS & MARKET COMMUNITY FACILITIES FEE. (a) Determination of Requirements. The Department shall determine the applicability of Section 425 et seq. to any residential development project requiring a first construction document and, if Section 425 et seq. is applicable, the Department shall determine the amount of the Van Ness & Market Community Facilities 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 425 et seq., the Department shall notify the Development Fee Collection Unit at DBI of its final determination of the amount of the Van Ness & Market Community Facilities 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 425 et seq. that has elected to fulfill all or part of its Van Ness & Market Community Facilities Fee requirement with an In-Kind Improvements Agreement. If the Department notifies the Unit at such time that the sponsor has not fully satisfied all of the terms of the In-Kind Improvements Agreement, the Director of DBI shall deny any and all certificates of occupancy until the project complies with the requirements of Section 425 et seq., either through conformance with the In-Kind Improvements Agreement or payment of the remainder of the Van Ness & Market Community Facilities Fee 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 425 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. 126-20, File No. 200559, App. 7/31/2020, Eff. 8/31/2020) SEC. 425.4. THE VAN NESS & MARKET COMMUNITY FACILITIES FEE