416.3

SEC. 416.3. APPLICATION OF AFFORDABLE HOUSING FEE REQUIREMENT.

The requirements of Sections 415.1 through 415.9 shall apply in the Market and Octavia Plan Area and the entirety of the Upper Market NCT District in addition to the following affordable housing requirement: (a) Amount of Fee. Development projects that are subject to the Residential Inclusionary Affordable Housing Program shall pay an additional affordable housing fee per the fee schedule in Table 416.3A, except as provided under Section 406(k). TABLE 416.3A AFFORDABLE HOUSING FEE SCHEDULE IN THE MARKET AND OCTAVIA PROGRAM AREA Van Ness and Market Special Use District NCT RTO Net addition of residential use or change of use to residential use $7.20/gross square foot $3.60/gross square foot $0.00/gross square foot Replacement of, or change of use from, non- residential to residential use $3.80/gross square foot $0.20/gross square foot $0.00/gross square foot Replacement of, or change of use from, PDR to residential use $5.50/gross square foot $1.90/gross square foot $0.00/gross square foot (b) Other Fee Provisions. This additional affordable housing fee shall be subject to the inflation adjustment provisions of Section 409 and the waiver and reduction provisions of Section 406. This additional affordable housing fee may not be met through the in-kind provision of community improvements or Community Facilities (Mello Roos) financing options of Sections 421.3(d) and (e). Pursuant to Section 249.33, in the Van Ness & Market Residential Special Use District this fee may be paid in any of the Alternatives set forth in Section 415.5(g). (c) Exemption for Affordable Housing. A project applicant shall not pay a supplemental affordable housing fee for any square foot of space designated as a below market rate unit under Section 415.1 et seq., the Citywide Inclusionary Affordable Housing Program, or any other residential unit that is designated as an affordable housing unit under a Federal, State, or local restriction in a manner that maintains affordability for a term no less than 50 years. (d) Timing of Fee Payments. The Market and Octavia Plan Area and Upper Market NCD Affordable Housing Fee 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. 270-10, File No. 100917, App. 11/5/2010; Ord. 312-10, File No. 100046, App. 12/23/2010; Ord. 25-11, File No. 101464, App. 2/24/2011; Ord. 55-11, File No. 101523, App. 3/23/2011; Ord. 56-13 , File No. 130062, App. 3/28/2013, Eff. 4/27/2013; Ord. 50-15 , File No. 150149, App. 4/24/2015, Eff. 5/24/2015; Ord. 83-17, File No. 170003, App. 3/24/2017, Eff. 4/23/2017; Ord. 63-20, File No. 200077, App. 4/24/2020, Eff. 5/25/2020; 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; Ord. 188-25, File No. 250680, App. 10/6/2025, Eff. 11/6/2025) AMENDMENT HISTORY Table 416.3A amended; Ord. 56-13 , Eff. 4/27/2013. Division (d) amended; Ord. 50-15 , Eff. 5/24/2015. Introductory paragraph amended; Ord. 83-17, Eff. 4/23/2017. Division (d) amended; Ord. 63-20, Eff. 5/25/2020. Division (b) amended; Ord. 126-20, Eff. 8/31/2020. Division (b) amended; Ord. 210-21, Eff. 12/20/2021. Introductory paragraph and division (a) amended; Ord. 188-25, Eff. 11/6/2025.

SEC. 416.4. IMPOSITION OF AFFORDABLE HOUSING FEE REQUIREMENT.

(a) Determination of Requirements. The Department shall determine the applicability of Section 416.1 et seq. to any development project requiring a first construction document and, if Section 416.1 et seq. is applicable, shall impose any such requirements as a condition of approval for issuance of the first construction document. The project sponsor shall supply any information necessary to assist the Department in this determination. (b) Department Notice to Development Fee Collection Unit of Fee Requirements. After the Department has made its final determination regarding the application of the affordable housing requirements to a development project pursuant to Section 416.1 et seq., it shall immediately notify the Development Fee Collection Unit at DBI of the applicable affordable housing fee amount in addition to the other information required by Section 402(b) of this Article. (c) 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 416.1 et seq. and such action is subsequently modified, superseded, vacated, or reversed by the 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. 312-10, File No. 100046, App. 12/23/2010)

SEC. 416.5. USE OF FUNDS.

The additional affordable housing requirement specified in this Section 416.5 for the Market and Octavia Plan Area and the Upper Market NCT District shall be paid into the Citywide Affordable Housing Fund, established in Administrative Code Section 10.100-49, but the funds shall be separately accounted for. MOHCD shall expend the funds according to the following priorities: First, to increase the supply of housing Affordable to Qualifying Households in the Market and Octavia Plan Area and the Upper Market NCT District; second, to increase the supply of housing Affordable to Qualifying Households within one mile of the boundaries of the Plan Area and the Upper Market NCT District; third, to increase the supply of housing affordable to qualifying households in the City and County of San Francisco. The funds may also be used for monitoring and administrative expenses subject to the process described in Section 415.5(f) (Added by Ord. 108-10, File No. 091275, App. 5/25/2010; amended by Ord.