419.3

SEC. 419.3. APPLICATION OF UMU AFFORDABLE HOUSING REQUIREMENTS.

New Ordinance Notice Publisher's Note: This section has been AMENDED by new legislation (Ord. 187-23 , approved 9/14/2023, effective 10/15/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective. New Ordinance Notice Publisher's Note: This section has been AMENDED by new legislation (Ord. 201-23 , approved 10/12/2023, effective 11/12/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective. (a) Section 419.1 et seq. shall apply to any housing project located in the UMU Zoning District of the Eastern Neighborhoods, that is subject to the requirements of Sections 415 et seq. (b) Additional UMU Affordable Housing Requirements to the Section 415 Inclusionary Affordable Housing Program Requirements. The requirements of Section 415 through 415.9 shall apply subject to the following exceptions: (1) For all projects sites designated as Tier A, a minimum of 14.4 percent of the total units constructed shall be affordable to and occupied by qualifying persons and families as defined elsewhere in this Code, so that a project sponsor must construct .144 times the total number of units produced in the principal project beginning with the construction of the tenth unit. If the total number of units is not a whole number, the sponsor shall round up to the nearest whole number for any portion of .5 or above. (A) If the project sponsor is eligible for and elects pursuant to Section 415.5(g) to build off-site units to satisfy the requirements of this program, the sponsor shall construct 23 percent so that a sponsor must construct .23 times the total number of units produced in the principal project beginning with the construction of the tenth unit. If the total number of units is not a whole number, the sponsor shall round up to the nearest whole number for any portion of .5 or above. (B) If the project sponsor elects pursuant to Section 415.5 to pay the fee to satisfy the requirements of this program, the sponsor shall meet the requirements of Section 415 according to the number of units required above if the project applicant were to elect to meet the requirements of this Section by off-site housing development. For the purposes of this Section, the City shall calculate the fee using the direct fractional result of the total number of units multiplied by the percentage of off-site housing required, rather than rounding up the resulting figure. (2) For all project sites designated Tier B, a minimum of 16 percent of the total units constructed shall be affordable to and occupied by qualifying persons and families as defined elsewhere in this Code, so that a project sponsor must construct .16 times the total number of units produced in the principal project beginning with the construction of the tenth unit. If the total number of units is not a whole number, the sponsor shall round up to the nearest whole number for any portion of .5 or above. (A) If the project sponsor is eligible for and elects pursuant to Section 415.5(g) to build off-site units to satisfy the requirements of this program, the sponsor shall construct 25 percent so that a sponsor must construct .25 times the total number of units produced in the principal project beginning with the construction of the tenth unit. If the total number of units is not a whole number, the sponsor shall round up to the nearest whole number for any portion of .5 or above. (B) If the project sponsor elects pursuant to Section 415.5(g) to pay the fee to satisfy the requirements of this program, the sponsor shall meet the requirements of Section 415 according to the number of units required above if the sponsor were to elect to meet the requirements of this Section by off-site housing development. For the purposes of this Section, the City shall calculate the fee using the direct fractional result of the total number of units multiplied by the percentage of off-site housing required, rather than rounding up the resulting figure. (3) For all project sites designated Tier C, a minimum of 17.6 percent of the total units constructed shall be affordable to and occupied by qualifying persons and families as defined elsewhere in this Code, so that a project sponsor must construct .176 times the total number of units produced in the principal project beginning with the construction of the tenth unit. If the total number of units is not a whole number, the sponsor shall round up to the nearest whole number for any portion of .5 or above. (A) If the project sponsor is eligible for and elects pursuant to Section 415.5(g) to build off-site units to satisfy the requirements of this program, the sponsor shall construct 27 percent so that a sponsor must construct .27 times the total number of units produced in the principal project beginning with the construction of the tenth unit. If the total number of units is not a whole number, the sponsor shall round up to the nearest whole number for any portion of .5 or above. (B) If the project sponsor elects pursuant to Section 415.5 to pay the fee to satisfy the requirements of this program, the sponsor shall meet the requirements of Section 415 according to the number of units required above if the sponsor were to elect to meet the requirements of this Section by off-site housing development. For the purposes of this Section, the City shall calculate the fee using the direct fractional result of the total number of units multiplied by the percentage of off-site housing required, rather than rounding up the resulting figure. (c) Timing of Fee Payments. Any fee required by Section 419.1 et seq. shall be paid to DBI for deposit into the Citywide Affordable Housing Fund at the time required by Section 402(d). (Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord. 55-11, File No. 101523, App. 3/23/2011; Ord. 219-12, File No. 120464, App. 10/23/2012, Eff. 11/22/2012, Oper. 1/15/2013 ; Ord. 62-13 , File No. 121162, App. 4/10/2013, Eff. 5/10/2013; Ord. 50-15 , File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020) AMENDMENT HISTORY Divisions (b)(1), (b)(1)(A), (b)(2), (b)(2)(A), (b)(3), and (b)(3)(A) amended; Ord. 219-12, Oper. 1/15/2013. Divisions (b)(1), (b)(2), and (b)(3) amended; Ord. 62-13 , Eff. 5/10/2013. Division (c) amended; Ord. 50-15 , Eff. 5/24/2015. Division (c) amended; Ord. 63-20, Eff. 5/25/2020.

SEC. 419.4. IMPOSITION OF UMU AFFORDABLE HOUSING REQUIREMENTS.

(a) The Department shall determine the applicability of Section 419.1 et seq. to any development project requiring a first construction document and, if Section 419.1 et seq. is applicable, the additional affordable housing required pursuant to Section 419.1 et seq. and shall impose these requirements as condition on the 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) Notice to Development Fee Collection Unit at DBI. After the Department has made its final determination of the additional affordable housing required pursuant to Section 419.1 et seq., it shall immediately notify the Development Fee Collection Unit at DBI of its determination in addition to the other information required by Section 402(b) of this Article. (c) Sponsor’s Choice to Fulfill Requirements. Prior to issuance of a building or site permit for a development project subject to the requirements of Section 419.1 et seq., the sponsor of the development project shall select one of the options described in Section 419.3 above or the Alternatives described in Section 419.5 below to fulfill the affordable housing requirements and notify the Department of their choice. (d) Department Notice to Development Fee Collection Unit of Sponsor Choice. After the sponsor has notified the Department of their choice to fulfill the additional affordable housing requirements of Section 419.1 et seq., the Department shall immediately notify the Development Fee Collection Unit at DBI of the sponsor's choice. (e) The 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 419.1 et seq. that has elected to fulfill its requirement with an option other than payment of an in-lieu fee. If the Department notifies the Unit at such time that the sponsor has not satisfied the requirements, 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 419.1 et seq. (f) 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 419.1 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; amended by Ord. 210-21, File No. 210868, App. 11/19/2021, Eff. 12/20/2021) AMENDMENT HISTORY Division (c) amended; Ord. 210-21, Eff. 12/20/2021.

SEC. 419.5. ALTERNATIVES TO THE INCLUSIONARY HOUSING COMPONENT.

New Ordinance Notice Publisher's Note: This section has been AMENDED by new legislation (Ord. 187-23 , approved 9/14/2023, effective 10/15/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective. New Ordinance Notice Publisher's Note: This section has been AMENDED by new legislation (Ord. 201-23 , approved 10/12/2023, effective 11/12/2023, oper. 11/21/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is effective. (See Interpretations related to this Section.) (a) Alternatives to the Inclusionary Housing Component. In addition to the Alternatives specified in Section 415.5(g) the project sponsor may elect to satisfy the requirements of Section 415.5 by one of the Alternatives specified in this Section. The project sponsor has the choice between the Alternatives and the Planning Commission may not require a specific Alternative. The project sponsor must elect an Alternative before it receives project approvals from the Planning Commission or Planning Department and that Alternative will be a condition of project approval. The Alternatives are as follows: (1) Middle Income Alternative. On sites with less than 50,000 square feet of total developable area, applicants may provide units as affordable to qualifying “middle income” households as follows: (A) A minimum percent of the total units constructed shall be affordable to and occupied affordable to qualifying “middle income” households upon initial sale, according the schedule in Table 419.5. If the total number of units is not a whole number, the project applicant shall round up to the nearest whole number for any portion of .5 or above. Units shall be affordable to households between 120% and 150% of the San Francisco Area Median Income, with an average affordability level of 135% for all units provided through this Alternative. (B) Where market rate sales prices exceed restricted sales prices, the difference between the market rate sales prices and the restricted sales prices shall be held by the MOHCD as a silent second mortgage according to the Procedures Manual. The City shall hold a deed of trust and promissory note for the second mortgage. MOHCD shall hold this mortgage and shall release it when the original note and proportional share of the appreciation are paid in full to the City.