Background
Section 415 of the San Francisco Planning Code, or the Inclusionary Affordable Housing Program, requires residential developments with 10 or more units to pay an Affordable Housing Fee. Project sponsors may apply for an alternative to the fee in the form of providing 12% of their units on-site or 20% of their units off-site as affordable to low- to moderate-income households. These percentages are higher in certain parts of the Eastern Neighborhoods Plan Area. Project Sponsors in the certain parts of the Eastern Neighborhoods Plan Area may also apply for the alternative of dedicating land for affordable housing.
Governing Documents
The Inclusionary Affordable Housing Program is governed by Planning Code Section 415 and by the City and County of San Francisco Residential Inclusionary Affordable Housing Program Monitoring and Procedures Manual ("Procedures Manual"). Project Sponsors and their agents must read and understand the current 2013 Procedures Manual to remain in compliance with the Program. Units that sell or rent under the Inclusionary Affordable Housing Program are subject to the current manual in place at the time of sale or rental, even in the case of resale or re-rental units.
For an informal overview of Program options and the evolution of the Program, click here. To review consumer information on the Below Market Rate ownership and rental programs, click here.
Process
At the onset of a project, a development undergoes a hearing before the Planning Commission or planning approval process to determine the project's affordable housing requirement under the Inclusionary Affordable Housing Program. Planners work with project sponsors to determine their intent under the Program and then to record a Notice of Special Restrictions (NSR) stating the sponsor's intent.
Once a project is approved by the Planning Department, project sponsors should contact the Mayor's Office of Housing (MOH) to pay the Affordable Housing Fee or to comply with the specific marketing requirements set forth in the City and County of San Francisco Residential Inclusionary Affordable Housing Program Monitoring and Procedures Manual ("Procedures Manual"). Units are sold or leased under the Procedures Manual in place at the time.
Paying the Affordable Housing Fee
MOH must issue a fee determination letter to project sponsors who choose to pay the Affordable Housing Fee. Sponsors should complete the Affordable Housing Fee Request Form (see below) and submit any required documentation to chandra.egan@sfgov.org.
Important: Sponsors must make final payment of all development fees through the Department of Building Inspection (DBI). DBI must issue a report on all fees owed before sponsors can pay the Affordable Housing Fee or any other fee. Prior to issuance of the first building permit or, in the case where a site permit is issued, the first addendum authorizing construction of the project, a final fee report will be issued and project sponsors must commit to either paying the full amount of development impact and in-lieu fees or, if eligible, deferring a portion of all development impact and in-lieu fees owed based on the formula in San Francisco Building Code Section 107A.13. A surcharge on the amount deferred will be due prior to issuance of the first certificate of occupancy. The Development Deferral Surcharge Rate is posted on the DBI website at http://www.sfdbi.org/ and it will be updated monthly.
Payments for fees must be made at the Permit Center, DBI, 1660 Mission, 6th floor, San Francisco, CA 94103. Questions on paying fees or the fee deferral program should be directed to DBI at (415) 558-6131. However, MOH must issue an Inclusionary Fee Determination letter before a sponsor can pay the Inclusionary fee at DBI.
Providing On-site or Off-site Affordable Units
Developers who have qualified to build below market rate (BMR) units either on-site or off-site (either rental or ownership units) must review and complete the following pricing, marketing and application review requirements. Please review the following links very carefully and please contact chandra.egan@sfgov.org when you are ready to price your units and please contact vanessa.dandridge@sfgov.org when you have received your pricing from MOH and are ready to begin the process of marketing your units. We recommend beginning this process at least 6 months prior to the anticipated date of owner or renter occupancy.
New on-site ownership BMR units are priced to be affordable to households at 90% of median income on average and rental units at 55% of median income. New off-site BMR units are priced to be affordable to households at 70% of median income on average and rental units at 55% of median income.
MOH posts sample sales prices and rent levels at the beginning of each calendar year but actual pricing is determined once the final HOA dues are established (in the case of ownership units) and generally 6 months prior to expected date of occupancy.
Managing Existing Rental Units
Please review the links below and then contact aissia.ashoori@sfgov.org for questions regarding the re-rental of BMR rental units.
Document Governing & Explaining the Inclusionary Housing Program
Developers seeking to learn more about the general requirements governing their obligation may review the following link.
Staff Contacts for Questions from Project Sponsors, Building Owners, Sales and Rental Agents
Developer Questions Regarding Program Compliance: Chandra Egan is out of the office on maternity leave until late May 2013. Please send an email to chandra.egan@sfgov.org to receive a list of suggestions for alternative contacts during this period.
Rental Agent Questions Regarding Rerentals: Aissia Ashoori - aissia.ashoori@sfgov.org or 415-701-5559
General Questions from the Public: 415-701-5500
Contact Information
Inclusionary Housing Program
San Francisco Mayor's Office of Housing
1 South Van Ness Avenue, 5th Floor
San Francisco, CA 94103
phone: (415) 701-5500
fax: (415) 701-5501
www.sf-moh.org
