Planning Director Bulletin No. 1: Overview of Development Impact Fees

City-Wide Impact Fees

Affordable Housing Fee (Planning Code Section 415)

This fee addresses the impact created by new market-rate housing to the stock of, and need for, affordable housing. It applies city-wide to residential projects and is triggered by the creation of ten or more dwelling units. Generally, the fee is calculated based on twenty percent of the number of proposed units, at a unit-size mix reflective of the overall project. There are additional options for compliance with this fee, including providing affordable units on or off-site.

Child Care Fee: Office/Hotel Projects (Planning Code Section 414)

This fee addresses the impact created by certain employment-generating uses on the availability of child care. It applies city-wide to office and hotel projects and is triggered by the creation of 25,000 square feet or more of office or hotel uses. There are additional options for compliance with this fee, including the provision of on or off-site child care.

Child Care Fee: Residential Projects (Planning Code Section 414A)

This fee addresses the impacts of increased residential population on the demand for additional child care services. It applies city-wide to almost all residential projects and is triggered by (1) the creation of at least one new dwelling unit, (2) the creation of new group housing or residential care facilities, and (3) additions to any existing residential uses of more than 800 gross square feet. There are additional options for compliance with this fee, including the provision of on-site Designated Child Care Units through an in-kind agreement. Additionally, this fee may be reduced if a project is also subject to an impact fee that dedicates a portion of that fee to child care.

Jobs-Housing Linkage Fee (Planning Code Section 413)

This fee addresses the impact created by employment-generating uses to the availability of affordable housing. It applies city-wide to most non-residential uses and is triggered by the creation of at least 25,000 square feet. In the case of a change of use, fees are lowered to provide credit for the existing use. There are additional options for compliance with this fee, including an in-lieu payment to a housing developer.

School Impact Fee (California Education Code Section 17620)

This fee addresses the impacts to the school system created by employment-generators and housing. It applies city-wide to most projects and is triggered by any addition of floor area. This fee is assessed by the Department of Building Inspection (DBI) and associated questions should be directed to either DBI or the San Francisco Unified School District.

Street Tree In-Lieu Fee (Planning Code Section 425)

This fee addresses the impact on the urban forest from development projects that are physically unable to provide the otherwise-required number of street trees. It applies on a per-tree basis to only those projects for which the City determines that site constraints preclude the planting of required street trees. Elective payment of this fee (e.g. in-lieu of planting a required tree) is not allowed.

Transit Impact Development Fee (TIDF) (Planning Code Section 411)

This fee addresses the impact created by non-residential uses on the transit system. It applies city-wide to all non-residential projects and is triggered by (1) construction of a new building or (2) an addition or conversion of at least 800 square feet. In the case of a change of use, fees are lowered to provide credit for existing legal uses that have been active within the most recent five years. The TIDF has been replaced by the Transportation Sustainability Fee (TSF), but remains effective for grandfathered projects.

Transportation Sustainability Fee (TSF) (Planning Code Section 411A)

This fee addresses the impact created by all uses on the transportation system. It applies city-wide to all non-residential and PDR projects and large residential projects. It is triggered by (1) construction of a new non-residential or PDR building, (2) additions and conversions to non-residential and PDR uses of varying sizes, or (3) the creation of 21 or more new dwelling units. In the case of a change of use, fees are lowered to provide credit for existing legal uses. The TSF replaces the TIDF (see above), which remains effective for grandfathered projects.

Wastewater Capacity Charge (SFPUC Resolution Number 07-0100)

This fee—which is technically a capacity charge rather than an impact fee—covers City costs in providing new or increased sewerage service to customers. It applies city-wide to all projects and is triggered by either (1) a new connection to the wastewater system or (2) an increase in capacity as a result of any addition, alteration or change of use. This fee is assessed by the San Francisco Public Utilities Commission (SFPUC) and associated questions should be directed to the SFPUC.

Water Capacity Charge (SFPUC Resolution Number 07-0099)

This fee—which is technically a capacity charge rather than an impact fee—covers City costs in providing new or increased water service to customers. It applies city-wide to all projects and is triggered by (1) a new connection to the water system or (2) an increase in water capacity as a result of any addition, alteration or conversion. This fee is assessed by the San Francisco Public Utilities Commission (SFPUC) and associated questions should be directed to the SFPUC.

Neighborhood-Specific Impact Fees

Balboa Park Infrastructure Fee (Planning Code Section 422)

This fee addresses the impact on neighborhood infrastructure created by the increased development permitted under the Balboa Park Area Plan. It applies to all projects within the Balboa Park Area Plan and is triggered by (1) the addition of a dwelling unit or (2) the addition or conversion of 800 square feet or more. In the case of a change of use, fees are lowered to provide credit for the existing use. There are additional options for compliance with this fee, including in-kind provision of infrastructure.

Downtown Park Fee (Planning Code Section 412)

This fee addresses the impact created by office uses on downtown parks. It applies to office uses in C-3 Zoning Districts and is triggered by any addition of, or conversion to, office space.

Eastern Neighborhoods Infrastructure Fee (Planning Code Section 423)

This fee addresses the impact on neighborhood infrastructure created by the increased development permitted under the Eastern Neighborhoods Area Plan. It applies to all projects within the Eastern Neighborhoods Plan Area (East SoMa, Western SoMa, Showplace Square/Potrero Hill, the Mission, and Central Waterfront) and is triggered by (1) the addition of a dwelling unit or (2) the addition or conversion of 800 square feet or more of space. In the case of a change of use, fees are lowered to provide credit for the existing use. There are additional options for compliance with this fee, including in-kind provision of infrastructure.

Market & Octavia and Upper Market Street Affordable Housing Fee (Planning Code Section 416)

This fee addresses the impact created by new market-rate housing to the stock of, and need for, affordable housing within and nearby the Market and Octavia Plan Area. It applies in (1) the Market and Octavia Plan Area and (2) the Upper Market Neighborhood Commercial District and is triggered by the creation of 10 or more dwelling units. It applies in addition to the city-wide Affordable Housing Fee (discussed above). In the case of a change of use, fees are lowered to provide credit for the existing use.

Market & Octavia Infrastructure Fee (Planning Code Section 421)

This fee addresses the impact on neighborhood infrastructure created by the increased development permitted under the Market and Octavia Area Plan. It applies in the Market and Octavia Plan Area to all projects and is triggered by (1) the addition of a dwelling unit or (2) the addition or change of use of 800 square feet of space. In the case of a change of use, fees are lowered to provide credit for the existing use. There are additional options for compliance with this fee, including in-kind provision of infrastructure.

Rincon Hill Infrastructure Fee (Planning Code Section 418)

This fee addresses the impact on neighborhood infrastructure created by the increased development permitted under the Rincon Hill Area Plan. It applies to all projects in the Rincon Hill Plan Area and is triggered by (1) the addition of a dwelling unit or (2) the addition or change the use of 800 square feet of space. In the case of a change of use, fees are lowered to provide credit for the existing use. There are additional options for compliance with this fee, including in-kind provision of infrastructure.

South of Market Community Stabilization Fee (Planning Code Section 418.3(d))

This fee addresses the impact on existing neighborhoods created by the increased development permitted under the Rincon Hill Area Plan. It applies in the Rincon Hill Plan Area and is triggered by any addition of residential square footage.

Transit Center Open Space Fee (Planning Code Section 424.6)

This fee addresses the impact on parks and recreational facilities created by the increased development permitted under the Transit Center District Plan. It applies to all projects in the Transit Center Special Use District and is triggered by (1) the addition of a dwelling unit, (2) the addition of 800 square feet of space or (3) the creation of any new use subject to higher fees than the use it replaces. Fees vary depending on use and increase for square footage beyond a Floor Area Ratio (FAR) of 9:1. There are additional options for compliance with this fee, including in-kind provision of open space.

Transit Center Transportation and Street Improvement Fee (Planning Code Section 424.7)

This fee addresses the impact on the transportation system created by the increased development permitted under the Transit Center District Plan. It applies in addition to the Transit Impact Development Fee (TIDF) to all projects in the Transit Center Special Use District and is triggered by (1) the addition of a dwelling unit, (2) the addition of 800 square feet of space, or (3) the creation of any new use subject to higher fees than the use it replaces. Fees vary depending on use, with an increase for square footage beyond a Floor Area Ratio (FAR) of 9:1 and a further increase for square footage beyond a Floor Area Ratio (FAR) of 18:1. There are additional options for compliance with this fee, including in-kind provision of infrastructure.

UMU District Affordable Housing Fee (Planning Code Section 419)

This fee addresses the impact created by new market-rate housing in formerly industrial areas to the stock of affordable housing. It applies in the UMU Zoning District instead of the Affordable Housing Fee that applies elsewhere in the City (discussed above), and is triggered by the addition of ten or more dwelling units. Generally between 23% and 27% of the number of new units, depending on the applicable Fee Tier, at a unit-size mix reflective of the overall project, are used as the basis for the fee. There are additional options for compliance with this fee, including providing on-site units, providing middle-income affordable units, and dedicated land for the future development of affordable housing.

Van Ness & Market Affordable Housing and Infrastructure Fee (Planning Code Section 424)

This fee addresses the impact created by new development to the stock of, and need for, affordable housing and neighborhood infrastructure nearby the intersection of Market Street and Van Ness Avenue. It applies in the Van Ness and Market Downtown Residential Special Use District and is triggered by any addition or new construction in excess of a Floor Area Ratio (FAR) of 6:1. It applies in addition to the city-wide Affordable Housing Fee (discussed above). Fees vary depending on use, and increase for square footage beyond a Floor Area Ratio (FAR) of 9:1. There are additional options for compliance with this fee, including in-kind improvements.

Visitacion Valley Facilities & Infrastructure Fee (Planning Code Section 420)

This fee addresses the impact on infrastructure created by development anticipated in the Visitacion Valley neighborhood. It applies in the Visitacion Valley Fee Area to all projects that contain 20 or more dwellings and is triggered by either (1) the addition of a dwelling or (2) the addition of at least 800 square feet of space to a dwelling. In the case of a change of use, fees are lowered to provide credit for existing uses. There are additional options for compliance with this fee, including in-kind provision of infrastructure.

Elective Impact Fees

Bicycle Parking Fee (Planning Code Section 430)

This fee addresses impacts to the City's bicycle infrastructure from development projects that seek to not provide otherwise-required Class 2 bicycle parking spaces (e.g. short-term publicly accessible bicycle racks). It is available to any project that either (a) chooses to pay a fee rather than provide the required number of Class 2 spaces, within specific parameters or (b) receives a Variance or exception from providing the required number of Class 2 spaces beyond those parameters.

Downtown Special Development District Open Space Fee (Planning Code Section 427(b))

This fee addresses the impact on parks and open spaces from development projects that seek to not provide the otherwise-required on-site open space. It applies in the C-3-O(SD) District to all projects that (a) receive a Variance from providing the required amount of residential Usable Open Space or (b) are required to provide Privately Owned Public Open Space (POPOS) but choose to pay a fee for some or all of that space.

Eastern Neighborhoods Alternate Affordable Housing Fee (Planning Code Section 417)

This fee addresses the impact created by new small-scale market-rate housing to the stock of, and need for, affordable housing. It is available to projects within the Eastern Neighborhoods Plan Area that create between 10 and 20 dwelling units, or no more than 25,000 square feet of residential space. Eligible projects can opt-out of the Affordable Housing Fee (discussed above) and instead choose to pay a rate based on the project's total residential square footage.

Eastern Neighborhoods Non-Residential Open Space Fee (Planning Code Section 426)

This fee addresses the impact on parks and open spaces from development projects that do not provide the otherwise-required on-site open space. It is available only in Eastern Neighborhoods Mixed Use Districts to non-residential projects that choose not to provide the required amount of Usable Open Space.

Eastern Neighborhoods Residential Open Space Fee (Planning Code Section 427(a))

This fee addresses the impact on parks and open spaces from development projects that seek to not provide the otherwise-required on-site open space. It is available only in Eastern Neighborhoods Mixed Use Districts to residential projects that receive a Variance or exception from providing the required amount of Usable Open Space.

Public Artwork Fee (Planning Code Section 429)

This fee addresses impacts on arts and cultural resources from development projects that seek to not provide otherwise-required on-site public artwork. It is available to a subset of those projects which are required to install public art. Rather than providing on-site public art of a value equivalent to one percent of a project's construction cost, projects may choose to pay a portion of that amount into the City's Public Artwork Trust Fund.

South of Market Non-Residential Open Space Fee (Planning Code Section 425)

This fee addresses the impact on parks and open spaces from development projects that seek to not provide the otherwise-required on-site open space. It is available only in South of Market Mixed Use Districts to projects that choose not to provide the required amount of Usable Open Space.