Inclusionary Housing Program Fee Schedule 2019

Effective January 1, 2019, residential development projects that comply with the Inclusionary Affordable Housing Program by paying the Affordable Housing Fee will be subject to the following fee based on the Gross Floor Area of residential use, rather than the number of dwelling units. The fee will be applied to the applicable percentage of the project, as set forth in Section 415.5 of the Planning Code and indicated below.

The impact fee register in place at the time of payment shall be applied. However, a project for which a Site Permit has been issued prior to January 1, 2019 shall remain subject to the fee method and amount set forth in the impact fee register in place as of December 31, 2018. Additionally, projects with an Environmental Evaluation Application that was accepted prior to January 1, 2013 pursuant to Planning Code Section 415.3(b) shall also remain subject to the fee method and amount set forth in the impact fee register in place as of December 31, 2018.

2019 Fee Schedule

Affordable Housing Fee: $199.50 per square foot of Gross Floor Area of residential use, applied to the applicable percentage of the project:

  • Small Projects (fewer than 25 dwelling units): 20% of the project’s Gross Floor Area of residential use
  • Large Projects (25 or more units), Rental: 30% of the project’s Gross Floor Area of residential use
  • Large Projects (25 or more units), Ownership: 33% of the project’s Gross Floor Area of residential use

Project Sponsors should work with their assigned Planner to determine their fee due and to receive a fee determination.  Any overarching questions regarding the fee application should be directed to the Planning Department, Carly Grob at carly.grob@sfgov.org or Jacob Bintliff at jacob.bintliff@sfgov.org.


Background

The Inclusionary Affordable Housing Program (Section 415 of the Planning Code) requires that all residential projects of 10 or more dwelling units pay the Affordable Housing Fee (the “Fee”), or elect an alternative method of compliance, including providing affordable units On-site, Off-site, or via the Land Dedication or Small Sites option in certain cases.

In previous years, the Fee was applied on a per unit basis, varied by dwelling unit type. As of January 1, 2019, the Fee is applied on a Gross Floor Area basis. This change is pursuant to amendments to Section 415.5 that were adopted by the Board of Supervisors in July, 2017 (Board File No. 161351). Specifically, the Code requires that the Fee reflect MOHCD’s actual cost to subsidize the construction of affordable housing units over the past three years, and directed the Controller to develop a new methodology for calculating, indexing, and applying the Fee, in consultation with the Inclusionary Housing Technical Advisory Committee (TAC). In May, 2018 the Controller and TAC determined that the Fee should be applied on a per gross square foot basis to ensure that MOHCD’s cost to construct the required amount of off-site affordable housing is appropriately and equitably captured from all projects, regardless of the size and number of units distributed within the project. The Controller directed MOHCD, in consultation with the Planning Department, to convert MOHCD’s per unit cost to a per-square-foot fee, based on the average residential Gross Floor Area of projects that have paid the Fee in the past three years. The Fee amount indicated above has been calculated accordingly.
   
Please see San Francisco Planning Department's Inclusionary Housing Program Overview for more.


Annual Updates to the Fee

Pursuant to Section 415.5 and the specific direction of the Controller and TAC, MOHCD shall update the amount of the Affordable Housing Fee each year on January 1, using the MOHCD average cost to construct an affordable unit in projects that were financed in the previous three years and the Planning Department’s average residential Gross Floor Area of projects that have elected to pay the Fee and have been entitled in the same time period. Each year this analysis will be updated to include new projects from the most recent year, and drop older projects that no longer fall into the three year period of analysis. The updated Fee amount will be included in the Citywide Impact Fee Register that is posted December 1 and effective on January 1.