SEC. 413. JOBS-HOUSING LINKAGE PROGRAM; HOUSING REQUIREMENTS FOR LARGE-SCALE
DEVELOPMENT PROJECTS.
Sections 413.1 through 413.11, hereafter referred to as Section 413.1 et seq., set forth the requirements and procedures for the Jobs-Housing Linkage Program. The effective date of these
requirements shall be either March 28, 1996, which is the date that the requirements originally became effective, or the date a subsequent modification, if any, became effective.
(Added by Ord. 108-10, File No. 091275, App. 5/25/2010)
SEC. 413.1. FINDINGS.
The Board hereby finds and declares as follows:
(a) Large-scale entertainment, hotel, office, laboratory, and retail developments in the City have attracted and continue to attract additional employees to the City, and there is a causal
connection between such developments and the need for additional housing in the City, particularly housing affordable to households of lower and moderate income. Such commercial uses
in the City benefit from the availability of housing close by for their employees. However, the supply of housing units in the City has not kept pace with the demand for housing created by
these new employees. Due to this shortage of housing, employers will have difficulty in securing a labor force, and employees, unable to find decent and affordable housing, will be forced
to commute long distances, having a negative impact on quality of life, limited energy resources, air quality, social equity, and already overcrowded highways and public transport.
(b) There is a low vacancy rate for housing affordable to persons of lower and moderate income. This low vacancy rate is due in part to large-scale commercial developments, which
have attracted and will continue to attract additional employees and residents to the City. Consequently, some of the employees attracted to these developments are competing with present
residents for scarce, vacant affordable housing units in the City. Competition for housing generates the greatest pressure on the supply of housing affordable to households of lower and
moderate income. In San Francisco, office or retail uses of land generally yield higher income to the owner than housing. Because of these market forces, the supply of these affordable
housing units will not be expanded. Furthermore, Federal and State housing finance and subsidy programs are not sufficient by themselves to satisfy the lower and moderate income housing
requirements of the City.
(c) The City has consistently set housing production goals to address the regional and citywide forecasts for population, households, and employment. Although San Francisco has seen
increased housing production each successive decade since the 1970s, the City has not been able to close the gap between its housing production goals and actual production.
(d) There is a continuing shortage of low- and moderate-income housing in San Francisco. It is desirable to impose the cost of the increased burden of providing housing necessitated by
large-scale commercial development projects directly upon the sponsors of the development projects by requiring that the project sponsors contribute land or pay a fee to the City to
subsidize housing development as a condition of the privilege of development and to assist the community in solving those of its housing problems generated by the development.
(e) The Bay Area has seen dramatic increases in land acquisition costs for housing, the cost of new housing development and the affordability gap for low to moderate income workers
seeking housing. Commute patterns for the region have also changed, with more workers who work outside of San Francisco seeking to live in the City, thus increasing demand for housing
and decreasing housing availability.
(f) As the regional job center, San Francisco has historically had the highest ratio of jobs-to-housing units in the Bay Area.
(g) The required housing exaction shall be based upon formulas derived in a periodic jobs housing nexus analysis. Consistent with the requirements of the California Mitigation Fee Act,
the jobs housing nexus analysis shall demonstrate the validity of the nexus between new, large scale entertainment, hotel, office, laboratory, and retail development and the increased