AMENDED IN COMMITTEE
FILE NO. 161157
12/5/2016
ORDINANCE NO.
007-17
[Planning Code - lnclusionary Housing Small Sites Program]
Ordinance amending the Planning Code to create an alternative for project sponsors of
smaller market rate projects to direct the Affordable Housing Fee to Small Sites
Projects; affirming the Planning Department's determination under the California
Environmental Quality Act; making findings of consistency with the General Plan, the
eight priority policies of Planning Code, Section 101.1; and making a finding of public
necessity, convenience, and welfare under 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 strikethrough italics Times }few 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. Findings.
(a) The Planning Department has determined that the actions contemplated in this
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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. 161157 and is incorporated herein by reference. The Board affirms
this determination.
(b) On November 17, 2016, the Planning Commission, in Resolution No. 19778,
adopted findings that the actions contemplated in this ordinance are consistent, on balance,
with the City's General Plan and eight priority policies of Planning Code Section 101.1. The
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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. 161157, and is incorporated herein by reference.
(c) Pursuant to Planning Code Section 302, the Board of Supervisors finds that the
proposed Planning Code amendments will serve the public necessity, convenience, and
welfare for the reasons set forth in Planning Commission Resolution No. 19778, and the
Board incorporates such reasons herein by reference.
Section 2. The Planning Code is hereby amended by revising Section 415.2 and 415.5
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'and adding Section 415.7-1, to read as follows:
SEC. 415.2. DEFINITIONS.
See Section 401 of this Article. For purposes of Sections 415.3et seq., "low income"
households shall be defined as households whose total household income does not exceed
55% of Area Median Income for purposes of renting an affordable unit, or 80% of Area
Median Income for purposes of purchasing an affordable unit, and "moderate income" and
"middle income" households shall mean households whose total household income does not
exceed 100% of Area Median Income for purposes of renting an affordable unit, or 120% of
!
!Area Median Income for purposes of purchasing an affordable unit. The Small Sites Fund,
defined in Section 415.5(f)(2), and the Small Sites Program, including anv program established
pursuant to Section 415. 7-1, may use Affordable Housing Fees to acquire sites and buildings
[consistent with the income parameters of the Programs, as periodically updated and
administered by MOHCD.
SEC. 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
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subject to this Program shall be required to pay an Affordable Housing Fee subject to the
following requirements:
* * * *
(f) Use of Fees. All monies contributed pursuant to the lnclusionary Affordable
[Housing Program shall be deposited in the Citywide Affordable Housing Fund ("the Fund"),
established in Administrative Code Section 10.100-49. The Mayor's Office of Housing and
Community Development ("MOHCD") shall use the funds collected under this Section 415.5 in
the following manner:
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* * * *
(2) "Small Sites Funds."
(A) Designation of Funds. MOHCD shall designate and separately
account for 10% percent of all fees that it receives under Section 415.1 et seq. that are
deposited into the Citywide Affordable Housing Fund, established in Administrative Code
Section 10.100-49, excluding fees that are geographically targeted such as those referred to
in Sections 415.5(b)(1) and 827(b)(1), to support acquisition and rehabilitation of Small Sites
("Small Sites Funds"). MOHCD shall continue to divert 10% percent of all fees for this purpose
until the Small Sites Funds reach a total of $15 million at which point, MOHCD will stop
designating funds for this purpose. At such time as designated Small Sites Funds are
1 expended and dip below $15 million, MOH CD shall start designating funds again for this
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purpose, such that at no time the Small Sites Funds shall exceed $15 million. When the total
amount offees paid to the City under Section 415.1_et seq. totals less than $10 million over
the preceding 12=-month period, MOHCD is authorized to temporarily divert funds from the
Small Sites Fund for other purposes. MOHCD must keep track of the diverted funds, however,
such that when the amount of fees paid to the City under Section 415.1_et seq. meets or
exceeds $10 million over the preceding 12-=month period, MOHCD shall commit all of the
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previously diverted funds and 10% percent of any new funds, subject to the cap above, to the
Small Sites Fund.
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(B) Use of Small Sites Funds. The funds shall be used exclusively to
!acquire or rehabilitate "Small Sites" defined as properties consisting of 2-25 units. Units
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supported by monies from the fund shall be designated as housing affordable to qualified
households as set forth in Section 415.2 for no less than 55 years. Properties supported by
the Small Sites Funds must be:
(i) rental properties that will be maintained as rental properties;
(ii) vacant properties that were formerly rental properties as long
as those properties have been vacant for a minimum of two years prior to the effective date of
this legislation;
(iii) properties that have been the subject of foreclosure; or
(iv) a Limited Equity Housing Cooperative as defined in
Subdivision Code Sections 1399.1_et seq. or a property owned or leased by a non-profit entity
modeled as a Community Land Trust.
* * * *
(E) Intent. In establishing guidelines for Small Sites Funds, the Board of
Supervisors does not intend to preclude MOHCD from expending other eligible sources of
I funding on Small Sites as described in this Section 415.5, or from allocating or expending
more than $15 million of other eligible funds on Small Sites.
* * * *
(g) Alternatives to Payment of Affordable Housing Fee.
(1) Eligibility: A project sponsor must pay the Affordable Housing Fee unless it
qualifies for and chooses to meet the requirements of the Program though an Alternative
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provided in this S~ubsection {gl. 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.
(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. Qualifj;ing project sponsors may elect to fimd
buildings as set forth in Section 415. 7-1.
(GD) Alternative #41_: 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.
* * * *
SEC. 415. 7-1. SMALL SITES AFFORDABLE HOUSING ALTERNATIVE.
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A project sponsor of a principal project comprised of-1::1-p-te 24 or fewere residential units may
i I elect under Section 415. 5 (g) to meet its Inclusionary Affordable Housing requirement by designating its
1payment ofthe Affordable Housing Fee due under Section 415. 5 ffitefor a Small Sites program that
MOHCD shall establish for this purpose. Affordable Housing Fees designated for this program shall
not be considered part o[the designated fimds specified by Section 415. 5 (/). MOH CD shall expend the
proaram funds tram a principal project on a Small Sites Project that meets the requirements set forth
in Section 415.5(/)(2){B) and that is within the same neighborhood as the principal project. The
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neighborhood of the principal project shall be determined by the Planning Department's
Neighborhood Groups Mapthe geographic area described in Section 415.7. JfMOHCD is
unable to identifj; a qualifying Small Sites Project and apply the fee to a qualifying Small Sites
Project within the geographic area required in Section 415.7 same neighborhood as the
principal project within two years o[the payment o[the fee. such fee shall be released into the
Affordable Housing Fund to fund other qualifj;ing Small Sites Projects in San Francisco.
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 J. HER
RA City Attorney
'\
By:
n:\legana\as2016\1700199\01154909.docx
Mayor Lee and Supervisor Campos
BOARD OF SUPERVISORS
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City and County ofSan Francisco
Tails
Ordinance
City Hall
1 Dr. Carlton B. Goodlett Place
San Francisco, CA 94102-4689
FileNumber:
161157
Date Passed: January 10, 2017
Ordinance amending the Planning Code to create an alternative for project sponsors of smaller
market rate projects to direct the Affordable Housing Fee to Small Sites Projects; affirming the
Planning Department's determination under the California Environmental Quality Act; and making
findings of consistency with the General Plan, the eight priority policies of Planning Code, Section
101.1; and making a finding of public necessity, convenience, and welfare under Planning Code,
Section 302.
December 05, 2016 Land Use and Transportation Committee -AMENDED, AN
AMENDMENT OF THE WHOLE BEARING SAME TITLE
December 05, 2016 Land Use and Transportation Committee - RECOMMENDED AS
AMENDED
December 13, 2016 Board of Supervisors - PASSED ON FIRST READING
Ayes: 10 - Avalos, Breed, Campos, Cohen, Farrell, Kim, Mar, Peskin, Tang and
Yee
Vacant: 1 - District 8
January 10, 2017 Board of Supervisors- FINALLY PASSED
Ayes: 11 - Breed, Cohen, Farrell, Fewer, Kim, Peskin, Ronen, Safai, Tang, Yee
and Sheehy
File No. 161157
I hereby certify that the foregoing
Ordinance was FINALLY PASSED on
1/10/2017 by the Board of Supervisors of
the City and County of San Francisco.
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May9J;1
Date Approved
City and County of San Francisco
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Printed at 11:57 am 0111111117
