Planning Code- lnclusionary Housing Fee
Ord. No. 0070-19
in effectAMENDED IN BOARD
FILE NO. 181154
4/2/2019
ORDINANCE NO.
70-19
[Planning Code- lnclusionary Housing Fee]
Ordinance amending the Planning Code to require all projects using the State Density
Bonus law, regardless of environmental evaluation application date, to pay the
inclusionary fee on any additional units or square footage allowed by the state law;
affirming the Planning Department's determination under the California Environmental
Quality Act; making findings of consistency with the General Plan, and the eight
priority policies of Planning Code, Section 101.1; and making findings of public
convenience, necessity, and welfare under Planning Code, Section 302.
f'JOTE:
Unchanged Code text and uncodified text are in plain /\rial font.
Additions to Codes are in single-underline italics Times New Roman font.
Deletions to Codes are in striketlzrough italics Times I'le'rv Roman font.
Board amendment additions are in double-underlined Arial font.
Board amendment deletions are in strikethrough Arial font.
Asterisks (* * * *) indicate the omission of unchanged Code
subsections or parts of tables.
Be it ordained by the People of the City and County of San Francisco:
Section 1. Environmental and Land Use Findings.
(a) The Planning Department has determined that the actions contemplated in this
ordinance comply with the California Environmental Quality Act (California Public Resources
Code Sections 21000 et seq.). Said determination is on file with the Clerk of the Board of
Supervisors in File No. 181154 and is incorporated herein by reference. The Board affirms
this determination.
(b) On
, the Planning Commission, in Resolution No.
, adopted
findings that the actions contemplated in this ordinance are consistent, on balance, vvith the
City's General Plan and eight priority policies of Planning Code Section 1 01.1. The Board
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adopts those findings as its own. /\ copy of said Resolution is on file with tho Clerk of tho
Board of Supervisors in File No.
, and is incorporated heroin by reference.
(c) Pursuant to Planning Code Section 302, tho Board finds that tho actions
contemplated in this ordinance will servo tho public necessity, convenience, and \Nolfaro for
tho reasons sot forth in Planning Commission Resolution No.
and tho Board
incorporates such reasons heroin by reference. A copy of tho Planning Commission
Resolution No.
is on file with tho Clerk of tho Board of Supervisors in File
wNttco ·'""""=======-
(b) Tho Board finds that tho actions contemplated in this ordinance are consistent. on
balance, with tho eight priority policies of Planning Code Section 101.1, as follows:
1. That existing neighborhood-serving retail uses be preserved and be enhanced and
futuro opportunities for resident employment in and ownership of such businesses enhanced.
Tho proposed Ordinance would not have a negative effect on neighborhood serving
retail uses and will not have a negative effect on opportunities for resident employment in and
ownership of neighborhood-serving retail.
2. That existing housing and neighborhood character be conserved and protected in
order to preserve tho cultural and economic diversity of our neighborhoods.
Tho proposed Ordinance would not have a negative effect on housing or neighborhood
character.
3. That tho City's supply of affordable housing be preserved and enhanced.
Tho proposed Ordinance would not have an adverso effect on tho City's supply of
affordable housing. Tho proposed Ordinance would increase the supply of affordable housing
by applying tho Affordable Housing Foe. supported by tho 2016 Residential Affordable
Housing Nexus Analysis. to the entirety of a residential housing project regardless of
development application date.
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4. That commuter traffic not impede MUNI transit service or overburden our streets or
neighborhood parking.
The proposed Ordinance would not result in commuter traffic impeding MUNI transit
service or overburdening the streets or neighborhood parking.
5. That a diverse economic base be maintained by protecting our industrial and service
sectors from displacement due to commercial office development. and that future
opportunities for resident employment and ownership in these sectors be enhanced.
The proposed Ordinance would not cause displacement of the industrial or service
sectors due to office development. and future opportunities for resident employment or
ownership in these sectors would not be impaired.
6. That the City achieve the greatest possible preparedness to protect against injury
and loss of life in an earthquake.
The proposed Ordinance would not have an adverse effect on City's preparedness
against injury and loss of life in an earthquake.
7. That the landmarks and historic buildings be preserved.
The proposed Ordinance would not have an adverse effect on the City's Landmarks
and historic buildings.
8. That our parks and open space and their access to sunlight and vistas be protected
from development.
The proposed Ordinance would not have an adverse effect on the City's parks and
open space and their access to sunlight and vistas.
(c) The Board finds that the actions contemplated in this ordinance are consistent. on
balance. with the City's General Plan. as follows:
Housing Element Objective 1. Identify and Make available for development adequate
sites to meet the City's Housing needs. especially permanently affordable.
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Policy 1. Plan for the full range of housing needs in the City and County of San
Francisco. especially affordable housing.
Policy 1.9. Require new commercial developments and higher educational institutions
to meet the housing demand they generate. particularly the need for affordable housing for
lower income workers and students.
This ordinance furthers the potential for creation of permanently affordable housing in
San Francisco and facilitates an increase in the number of affordable housing units that could
be built in San Francisco by applying the Affordable Housing Fee to the entirety of a
residential housing project regardless of development application date. The lnclusionary
Housing Ordinance. supported by the 2016 Residential Affordable Housing Nexus Analysis,
assures that market-rate residential development projects adequately mitigate impacts to the
availability and affordability of housing in San Francisco.
Policy 3.3. Maintain balance in affordability of existing housing stock by supporting
affordable moderate ownership opportunities.
The ordinance would support affordable moderate ownership opportunities by applying
the Affordable Housing Fee to the entirety of a residential housing project regardless of
development application date, thereby increasing the ability of the City to support moderate
income housing opportunities and down payment assistance programs. The lnclusionary
Housing Ordinance, supported by the 2016 Residential Affordable Housing Nexus Analysis,
assures that market-rate residential development projects adequately mitigate impacts to the
availability and affordability of housing in San Francisco. Fees are deposited into the Citywide
Affordable Housing Fund, which MOHCD uses to increase the supply of affordable housing
and provide assistance to low- and moderate-income homebuyers.
Objective 4. Foster a Housing Stock that meets the needs of all residents across
lifecycles.
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This ordinance would apply the Affordable Housing Fee to the entirety of a residential
housing project regardless of development application date. thereby allowing the Mayor's
Office of Housing and Community Development to support and fund housing projects for all
residents. including projects with family housing. and senior housing. The lnclusionary
Housing Ordinance. supported by the 2016 Residential Affordable Housing Nexus Analysis.
assures that market-rate residential development projects adequately mitigate impacts to the
availability and affordability of housing in San Francisco.
Policy 4.5. Ensure that new permanently affordable housing is located in all of the
City's neighborhoods. and encourage integrated neighborhoods with a diversity of unit types
1 0
provided at a range of income levels.
The ordinance would apply the full Affordable Housing Fee to the entirety of a
residential housing project regardless of development application date, assuring that market-
rate residential development projects adequately mitigate all impacts on the availability and
affordability of housing in San Francisco. The fee. deposited into the Citywide Affordable
Housing Fund. supports and funds housing projects in all neighborhoods at very low-. low-.
and moderate-income levels.
Obiective 7. Secure funding and resources for permanently affordable housing.
including innovative programs that are not solely reliant on traditional mechanisms or capital.
Policy 7.1. Expand the financial resources available for permanently affordable
housing. especially permanent sources.
The ordinance would apply the full Affordable Housing Fee to the entirety of a housing
project regardless of development application date. thereby expanding the financial resources
of MOHCD to facilitate and/or create permanently affordable housing. The lnclusionary
Housing Ordinance. supported by the 2016 Residential Affordable Housing Nexus Analysis.
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assures that all market-rate residential development projects adequately mitigate impacts on
the availability and affordability of housing in San Francisco.
Policy 7.5. Encourage the production of affordable housing through process and
zoning accommodations. and prioritize affordable housing in the review and approval process.
This ordinance would support the production of affordable housing through payment of
the lnclusionarv Affordable Housing Fee into the Citywide Affordable Housing Fund. while
allowing for the zoning accommodations and additional market rate units allowed by the State
Density Bonus law.
Policy 8.1. Support the protection and management of permanently affordable
housing.
This ordinance would support production and management of affordable housing by
increasing the number of projects subject to Affordable Housing Fee. which allows MOHCD to
produce and manage affordable housing. The lnclusionary Housing Ordinance. supported by
the 2016 Residential Affordable Housing Nexus Analysis. assures that market-rate residential
development projects adequately mitigate impacts on the availability and affordability of
housing in San Francisco.
(d) Planning Code Section 302 Findings. The Board finds from the facts presented
that the public necessity. convenience and general welfare require the proposed amendments
to the Planning Code as set forth in Section 302.
Section 2. Article 4 of the Planning Code is hereby amended by revising Section 415.5
and 415.6, to read as follows:
II
II
II
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BOARD OF SUPERVISORS
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415.5 AFFORDABLE HOUSING FEE
The fees set forth in this Section 415.5 will be reviewed when the City completes an
Economic Feasibility Study. Except as provided in Section 415.5(g), all development projects
subject to this Program shall be required to pay an Affordable Housing Fee subject to the
following requirements:
*
*
*
*
(b) Amount of Fee. The amount of the fee that may be paid by the project sponsor
subject to this Program shall be determined by MOHCD utilizing the following factors:
*
*
*
*
(6) The fee shall be imposed on any additional units or square footage
authorized and developed under California Government Code Sections 65915 et seq. +hi&
subsection 415. 5(b) (6) shall not apply to development projects that have submitted a complete
Environmental Evaluation application on or bqf0re January 1, 2016.
* * * *
(g) Alternatives to Payment of Affordable Housing Fee.
(1) Eligibility: A project sponsor must pay the Affordable Housing Fee unless it
chooses to meet the requirements of the Program though an Alternative provided in this
subsection (g). The project sponsor may choose one of the following Alternatives:
(A) Alternative #1: On-Site Units. Project sponsors may elect to construct
units affordable to qualifying households on-site of the principal project pursuant to the
requirements of Section 415.6.
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(B) Alternative #2: Off-Site Units. Project sponsors may elect to construct
units affordable to qualifying households at an alternative site within the City and County of
San Francisco pursuant to the requirements of Section 415.7.
(C) Alternative #3: Small Sites. Qualifying project sponsors may elect to
fund buildings as set forth in Section 415.7-1.
(D) Alternative #4: Combination. Project sponsors may elect any
combination of payment of the Affordable Housing Fee as provided in Section 415.5,
construction of on-site units as provided in Section 415.6, or construction of off-site units as
provided in Section 415.7, provided that the project applicant constructs or pays the fee at the
appropriate percentage or fee level required for that option. Development Projects that have
submitted a complete En~vironmental Evahtation application cifter January 12, 2016 that are providing
on-site units under Section 415.6 and that qualify for and receive additional density under
California Government Code Section§: 65915 et seq. shall use Alternative #4 to pay the
Affordable Housing Fee on any additional units or square footage authorized under Section
65915.
*
*
*
*
SEC. 415.6. ON-SITE AFFORDABLE HOUSING ALTERNATIVE.
If a project sponsor elects to provide on-site units pursuant to Section 415.5(g), the
development project shall meet the following requirements:
* * * *
(d) Unless othenvise specified in this Section 415.1et seq., in In the event the project
sponsor is eligible for and elects to receive additional density under California Government
Code Section 65915, the Sponsor shall pay the Affordable Housing Fee on any additional
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units or square footage authorized under that section in accordance with the provisions in
Section 415.5(g)(1 )(D).
* * * *
Section 3. Effective Date. This ordinance shall become effective 30 days after
enactment. Enactment occurs when the Mayor signs the ordinance, the Mayor returns the
ordinance unsigned or does not sign the ordinance within ten days of receiving it, or the Board
of Supervisors overrides the Mayor's veto of the ordinance.
Section 4. Scope of Ordinance. In enacting this ordinance, the Board of Supervisors
intends to amend only those words, phrases, paragraphs, subsections, sections, articles,
numbers, punctuation marks, charts, diagrams, or any other constituent parts of the Municipal
Code that are explicitly shown in this ordinance as additions, deletions, Board amendment
additions, and Board amendment deletions in accordance with the "Note" that appears under
the official title of the ordinance.
APPROVED AS TO FORM:
DENNIS Jl. HERRERA,
Attorney
~~
By:
n:\legana\as2018\1900244\01347797.docx
Supervisor Peskin
BOARD OF SUPERVISORS
Page 9
City and County of San Francisco
Tails
Ordinance
City Hall
I Dr. Carlton B. Goodlett Place
San Francisco, CA 94102-4689
FileNumber:
181154
Date Passed: April 09, 2019
Ordinance amending the Planning Code to require all projects using the State Density Bonus law,
regardless of environmental evaluation application date, to pay the inclusionary fee on any additional
units or square footage allowed by the state law; affirming the Planning Department's determination
under the California Environmental Quality Act; making findings of consistency with the General
Plan, and the eight priority policies of Planning Code, Section 101.1; and making findings of public
convenience, necessity, and welfare under Planning Code, Section 302.
March 11, 2019 Land Use and Transportation Committee - RECOMMENDED
March 19, 2019 Board of Supervisors- CONTINUED ON FIRST READING
Ayes: 11 - Brown, Fewer, Haney, Mandelman, Mar, Peskin, Ronen, Safai, Stefani,
Walton and Yee
April 02, 2019 Board of Supervisors -AMENDED, AN AMENDMENT OF THE WHOLE
BEARING SAME TITLE
Ayes: 11 - Brown, Fewer, Haney, Mandelman, Mar, Peskin, Ronen, Safai, Stefani,
Walton and Yee
April 02, 2019 Board of Supervisors - PASSED ON FIRST READING AS AMENDED
Ayes: 11 - Brown, Fewer, Haney, Mandelman, Mar, Peskin, Ronen, Safai, Stefani,
Walton and Yee
April 09, 2019 Board of Supervisors - FINALLY PASSED
City and County of San Francisco
Ayes: 11 -Brown, Fewer, Haney, Mandelman, Mar, Peskin, Ronen, Safai, Stefani,
Walton and Yee
Page 1
Printed at 9:30am on 4110119
FileNo.181154
London N. Breed
Mayor
City and County of San Francisco
Page2
I hereby certify that the foregoing
Ordinance was FINALLY PASSED on
4/9/2019 by the Board of Supervisors of the
City and County of San Francisco.
Date Approved
Printed at 9:30am on 4/10/19
References
amendsSec. 415.5
amendsSec. 415.6
amendsSec. 415.7
Source: sf_ordinance_pdfURL: https://sfbos.archive.sf.gov/sites/default/files/o0070-19.pdfFetched: 7/4/2026