FILE NO. 250657
ORDINANCE NO. 196-25
[Building and Planning Codes - Development Impact Fees for Residential Development
Projects]
Ordinance amending the Building and Planning Codes to comply with California
Government Code, Section 66007, by postponing the collection of development impact
fees for designated residential development projects to the date of first certificate of
occupancy or first temporary certificate of occupancy, whichever occurs first; 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 necessity,
convenience, and welfare pursuant to Planning Code, Section 302.
NOTE:
Unchanged Code text and uncodified text are in plain Arial font.
Additions to Codes are in single-underline italics Times New Roman font.
Deletions to Codes are in strikethrobtgh i{(l/ics Times l\/ew Romanf-cmt.
Board amendment additions are in double-underlined Arial font.
Board amendment deletions are in strikethrough Arial f.ont.
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. 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. 250657 and is incorporated herein by reference. The Board affirms
this determination.
(b) On September 11, 2025, the Planning Commission, in Resolution No. 21803,
adopted findings that the actions contemplated in this ordinance are consistent, on balance,
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with the City's General Plan and eight priority policies of Planning Code Section 101.1. The
Board adopts these findings as its own. A copy of said Resolution is on file with the Clerk of
the Board of Supervisors in File No. 250657, and is incorporated herein by reference.
(c) Pursuant to Planning Code Section 302, this Board finds that these Planning Code
amendments will serve the public necessity, convenience, and welfare for the reasons set
forth in Planning Commission Resolution No. 21803, and the Board incorporates such
reasons herein by reference. A copy of said resolution is on file with the Clerk of the Board of
Supervisors in File No. 250657.
(d) On July 16, 2025, at a duly noticed public hearing, the Building Inspection
Commission considered this ordinance in accordance with Charter Section 4.121 and Building
Code Section 104A.2.11.1.1. A copy of a letter from the Secretary of the Building Inspection
Commission regarding the Commission's recommendation is on file with the Clerk of the
Board of Supervisors in File No. 250657.
(e) No local findings are required under California Health and Safety Code
Section 17958.7 because the amendments to the Building Code contained in this ordinance
do not regulate materials or manner of construction or repair, and instead relate in their
entirety to administrative procedures for implementing the code, which are expressly excluded
from the definition of a "building standard" by California Health and Safety Code
Section 18909(c).
Section 2. Chapter 1 A of the Building Code is hereby amended by revising
Sections 107A.13.3, 107A.13.4, and 107A.13.7, to read as follows:
107 A.13.3 Timing of development fee payments and satisfaction of development
impact requirements.
(a) Timing for payment and compliance.
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{lLAII development impact or in-lieu fees owed for a development project shall
be paid by the project sponsor prior to issuance of the first construction document; provided,
however, that the project sponsor may elect to defer payment of said fees under Section
107A.13.3.1.
-(hf
(2) Any development impact requirement shall be completed prior to issuance of
the first certificate of occupancy for the development project.
fJ2l Designated Residential Development Projects. Pursuant to California Government Code
Section 66007, development impact fees for Designated Residential Development Proiects, as that term
is defined in Government Code Section 66007(c)(4), shall be paid on the issuance date o(the First
Certificate of Occupancy or first Temporary Certificate o(Occupancy, whichever occurs first, unless
the development impact fee qualifies for early collection pursuant to Subsection 66007(c)(2).
107A.13.4 Development Fee Collection Unit. There shall be a Development Fee
Collection Unit established within the Department. The Unit's duties include: (1) receiving and
organizing information from various City agencies concerning the amount of development fees
owed or specific development impact requirements imposed under various sections of the
San Francisco Municipal Code or other legal authority, (2) working with the project sponsor
and relevant agencies to resolve any disputes or questions concerning the development fees
or development impact requirements applied to specific development projects, (3) ensuring
that the first construction document, or first certificate <>foccbtfJal'lcy First Certificate o(Occupancy
or first Temporary Certificate of Occupancy if the project is a Designated Residential Development
Proiect or i(the sponsor elects to defer payment, is not issued prior to payment of all
development fees that are due and owing, (4) confirming with the Planning Department that
any outstanding development impact requirements are satisfied prior to issuance of the first
certificate of occupancy for projects subject to such requirements, (5) generating Project
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Development Fee Reports, (6) processing any development fee refunds, (7) publishing and
updating the Citywide Development Fee Register, (8) initiating lien proceedings to collect any
unpaid development impact or in-lieu fees, and (9) performing such other duties as the
Building Official requires. The fee for the Department's services shall be as provided in
Section 107A.13.14.
107 A.13.7 Project Development Fee Report. Prior to the issuance of the building or
site permit for a development project that owes a development fee or fees or is subject to
development impact requirements, and at any time thereafter, the Development Fee
Collection Unit shall prepare and provide to the project sponsor, or any member of the public
upon request, a Project Development Fee Report. The Report shall: (i) identify the
development project, (ii) list which specific development fees and/or development impact
requirements are applicable and the legal authorization for their application, (iii) specify the
amount of the development fee or fees that the department or agency calculates is owed or
that the project sponsor has elected to satisfy a development impact requirement through the
direct provision of physical improvements, (iv) list the name and contact information for the
staff person at each agency or department responsible for calculating the development fee or
monitoring the development impact requirement, (v) identify the fee dispute process pursuant to
Section 107A. l 3.9,_and (vD state by whenwhether the development fee or fees are due and
payable pursuant to prior kJ issuance of the first construction docu,.,wnt or whether the project
spm~sor has re€Juested dc/b·ral imder Section 107 A.13.3:-J., and note the status of payment. A
copy of the Project Development Fee Report shall always be made available to the project
sponsor immediately prior to issuance of the site or building permit for a development project
subject to any development fee or fees to provide adequate notice of the proposed
development fee or fees. The Development Fee Collection Unit shall not issue a Final
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Development Fee Report and the respective site or building permit for a development project
until it has received written confirmation from the First Source Hiring Administration (FSHA)
that the project sponsor has executed a first source hiring agreement(s) with the FSHA
consistent with Administrative Code Section 83.11.
Section 3. Article 4 of the Planning Code is hereby amended by revising
Sections 402,403, 411A.3, 413.5, 424.6.2, 424.7.2, and 452.2, to read as follows:
SEC. 402. PROCEDURE FOR PAYMENT AND COLLECTION OF DEVELOPMENT
FEES.
* * * *
(d) Timing of Fee Payments. All impact fees are due and payable to the
Development Fee Collection Unit at DBI consistent with the provisions ofat the time o_f; arui in no
event lakr than, iss1:1mwe of the ''first construction document" as defined in Section 401 of this Code
-and Section I 07A. I 3. I &/the Building Code provided that a pmject sponsor rnay defer payment &jthe
fee, excluding any.fees that ,1nust he deposikd in the Citywide Aiferdahl-e Ho1:1sing F'und (Ad."l'linistrath1e
Code Section IO.JOO 49), t:o a l£1krda,tep1:wsuaNtto Section 107A.13.3 of the Building Code.
(e) Amount and Applicability of Impact Fees. When the Planning Department
determines that a project is subject to development impact fees established in the Planning
Code, with the exception of the lnclusionary Housing Fee as set forth in Section 415 et seq.,
the assessment shall be based on the types of fees and the rates of those fees in effect at the
time of Final Approval. After Final Approval, the City shall not impose subsequently
established development impact fees or increase the rate of existing fees on the development
project, including annual inflation adjustments pursuant to Section 409, except as provided in
subsection~ (e)(1 )-W(2) of this Section 402. The Planning Department shall transmit the fee
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assessment to the Development Fee Collection Unit at DBI in accordance with this
Section 402.
(1) Modification, Renewal, Extension for Projects. After the Final Approval,
if a development project requires a modification to, renewal, or extension of a previously
approved Development Application, the Planning Department shall reassess development
impact fees pursuant to subsection (e)(2). For the purposes of this subsection (e)(1 ), a
"modification" shall not include a legislatively-authorized reduction or waiver of fees, including
any waivers pursuant to Section 406.
(2) Amount of Reassessment. For any development project that requires a
modification to, renewal, or extension pursuant to subsection (e)(1 ), the Planning Department
shall reassess fees as follows:
(A) Modified Projects. For projects increasing Gross Floor Area of any
use, the Planning Department shall assess the new or increased Gross Floor Area by
applying the types of impact fees in effect at the time of Final Approval at the rates in effect at
the time of modification. For projects reducing Gross Floor Area, the Planning Department
shall assess the types and rates of fees in effect at the time of Final Approval only on the
remaining Gross Floor Area. If the modified project would result in a new type of fee or a
different rate based on applicable thresholds in effect at the time of Final Approval, the entire
project square footage is subject to the new type of fee or different rate in effect at the time of
modification. The City shall refund fees, if any, without interest, based on the fees in effect at
the time of Final Approval.
(B) Renewal and Extended Projects. For projects receiving a renewal
or extension, the Planning Department shall reassess fees for the entire project's Gross Floor
Area based on the type of fees and rates of those fees in effect at the time of renewal or
extension.
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* * * *
SEC. 403. PAYMENT OF DEVELOPMENT FEE(S) OR SATISFACTION OF
DEVELOPMENT IMPACT REQUIREMENT(S) AS A CONDITION OF APPROVAL;
TEMPORARY FEE REDUCTION PROGRAM.
In addition to any other condition of approval that may otherwise be applicable, the
Department or Commission shall require as a condition of approval of a development project
subject to a development fee or development impact requirement under this Article 1.. that such
development fee or fees be paid consistent with the timing set forth in Building Code Section
I 07 A. I 3. 3prior lo the issHance ofthefirst construction document/or any buitding or buitdings within
the de'lre!opmentproject, in proportion to the amount required for each building if there are
multiple buildings, with an option for the project sponsor to defer payment of 85% percent of
the fees, or 80% pe,-cen.' of the fees if the project is subject to a neighborhood infrastructure
impact development fee, to prior to issuance of the first certificate of occupancy, as provided
by Section 107A.13.3:.1 of the San Francisco Building Code ("Fee Deferral Program"). The
Fee Deferral Program shall not apply to fees that must be deposited in the Citywide Affordable
Housing Fund (Administrative Code Section 10.100-49). Projects subject to development
agreements executed pursuant to Chapter 56 of the Administrative Code shall be eligible for
the Fee Deferral Program, except as may otherwise be agreed to by the parties to the
development agreement. The Department or Commission shall also require as a condition of
approval that any development impact requirement imposed on a development project under
this Article shall be satisfied prior to issuance of the first certificate of occupancy for any
building or buildings within the development project, in proportion to the amount required for
each building if there are multiple buildings.
* * * *
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SEC. 411A.3. APPLICATION OF TSF.
* * *
*
(c) Timing of Payment. The TSF shall be paid at the time ofand in no event tater than
when the City issues a first construction document, with an option for the project sponsor to defer
paynwNt to prior to issumwe of thejirst certificate ofoccbtf3ancy upon agreeing to pay· a deferral
surtharge in accordance with consistent with the timing set forth in Section 107 A.13.3 of the San
Francisco Building Code.
* * * *
SEC. 413.5. COMPLIANCE BY PAYMENT OF IN-LIEU FEE.
* * * *
(b) Any in-lieu fee required under this Section 413.5 is due and payable to the
Development Fee Collection Unit at DBI at the time ofand in no event tater than issuance of the
first construction document, with an option .fer the project sponsor to deferpaynwnt to prior to
issua,we of the first certificate ofoccttpancy bt-J30f9 agreeing to ]361)' a deferral sttrcharge that would he
deposited into the Citywide Ajfm'€iahl-e Housing Ftmd in accorda,we with consistent with the timing set
.forth in Section 107A.13.3 of the San Francisco Building Code.
* * *
*
SEC. 424.6. 2. APPLICATION OF TRANSIT CENTER DISTRICT OPEN SPACE
IMPACT FEE.
* * * *
(e) Timing of Fee Payments. The Transit Center District Open Space Impact Fee
is due and payable to the Development Fee Collection Unit at DBI at the time ofand in no event
tater than isst1mwe of the first constrtwtion docunwnt, with an option for the p,'Oject sponsor to defer
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payment lo prior lo issuance r>jthefirst certificate r>joccupcmcy tl:jJOn agreeing lo pay a deferral
surcharge that would be paid inlo t11e appropriatcfimd iN accordance withconsistent with timing set
forth in Section 107 A.13.3 of the San Francisco Building Code .
SEC. 424.7. 2. APPLICATION OF TRANSIT CENTER DISTRICT TRANSPORTATION
AND STREET IMPROVEMENT IMPACT FEE.
* * * *
(e) Timing of Fee Payments. The Transit Center District Transportation and Street
Improvement Impact Fee is due and payable to the Development Fee Collection Unit at DBI e-t
the time of and in no e·;1ent later than issttance of the first construction document, with an option for the
project sponsor lo defer payment lo prior lo issuance r>jthe first certificate ofocc1,1pancy up011 ag,'Cei,qg
to pay €l deferral surchergc that would be paid inlo the approprietc fund in eccordance withconsistent
with the timing set forth in Section 107 A.13.3 of the San Francisco Building Code.
* * * *
SEC. 425.2. APPLICATION OF FEES.
* * * *
(d) Timing of Fee Payments. The fee shall be due and payable to the Development
Fee Collection Unit at DBI et the time erfissumwe r>jthefirst construction ciocumel'ltfor the
devdop,"lwnt pr-eject. However, the project sp011sor shall have the option lo defer payment lo prior lo
issuance r>jthe first cer4ifi-catc ofoccupal'lcy upon ag,'Ceil'lg lo pay a deferral surcharge as set f-ort,½
inconsistent with the timing set forth in Section 107 A.13.3 of the San Francisco Building Code.
* * * *
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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:
DAVID CHIU, City Attorney
By:
/s/ Robb Kapla
ROBB KAPLA
Deputy City Attorney
n:\legana\as2025\2500238101846615.docx
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City and County of San Francisco
Tails
Ordinance
City Hall
I Dr. Carlton B. Goodlett Place
San Francisco, CA 94102-4689
File Number:
250657
Date Passed: October 21, 2025
Ordinance amending the Building and Planning Codes to comply with California Government Code,
Section 66007, by postponing the collection of development impact fees for designated residential
development projects to the date of first certificate of occupancy or first temporary certificate of
occupancy, whichever occurs first; 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 necessity,
convenience, and welfare pursuant to Planning Code, Section 302.
September 29, 2025 Land Use and Transportation Committee - RECOMMENDED
October 07, 2025 Board of Supervisors - PASSED ON FIRST READING
Ayes: 10 - Chan, Chen, Dorsey, Engardio, Mahmood, Mandelman, Melgar, Sauter,
Sherrill and Walton
Noes: 1 - Fielder
October 21, 2025 Board of Supervisors - Fl NALLY PASSED
Ayes: 9 - Chan, Chen, Dorsey, Mahmood, Mandelman, Melgar, Sauter, Sherrill and
Walton
Noes: 1 - Fielder
File No. 250657
I hereby certify that the foregoing
Ordinance was Fl NALLY PASSED on
10/21/2025 by the Board of Supervisors of
the City and County of San Francisco.
City a,ul County of San Fm11cisco
Page I
"'
~~
Angela Calvillo
Clerk of the Board
oc.r 2'1, iozs
Date Approved
Printed at 10:25 am 011 10/22/25
