425.2

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,