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CITY AND COUNTY OF SAN FRANCISCO
MUNICIPAL CODE
SUBDIVISION CODE
The San Francisco Municipal Code is current through Ordinance 128-13, File No. 130501, approved July 3, 2013, effective August 2, 2013.
The Subdivision Code was last amended by Ordinance 117-13, File No. 120669, passed June 18, 2013.
The San Francisco Municipal Code:Charter
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Business and Tax Regulations Code
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Planning Code
Police CodePort Code
Public Works Code
Subdivision Code
Transportation Code
Zoning Maps
Comprehensive Ordinance Table
AMERICAN LEGAL PUBLISHING CORPORATION
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PREFACE TO THE SUBDIVISION CODE
This electronic version of the City and County of San Francisco Municipal Code is updated as amending legislation is approved. New Ordinance Notices are inserted where applicable to call the user's attention to material that has been affected by legislation that has been passed but is not yet effective. Any references to such legislation are also compiled in a table at the end of this Code. The amendments are then incorporated into the Code when they become effective.
Beginning with ordinances passed in 2011, all ordinances affecting this Code are summarized in a table that lists the identifying information (ordinance and file numbers), effective date, short title, and sections affected for each such ordinance. Users should note that the operative date of an ordinance may be later than the effective date of the ordinance. A delayed operative date will be noted in the ordinance.
This Code may contain various Editor's Notes (explaining the disposition of or cross referencing various provisions), and/or Codification Notes (documenting scrivener's errors and the like found in the underlying ordinances). Such notes have been inserted by the publisher for the convenience of the user or as historical references. They have not been approved or adopted by the City and County of San Francisco, and are of no legal force or effect.
Article
DIVISION 1. SUBDIVISION CODE1.GENERAL PROVISIONS2.DEFINITIONS3.GENERAL PROCEDURAL PROVISIONS4.TENTATIVE MAPS5.SUBDIVISION REQUIREMENTS6.IMPROVEMENT REQUIREMENTS 7.FINAL MAPS AND PARCEL MAPS8.BONDS9.CONVERSIONS10.CONSISTENCY WITH STATE LAW11.LIMITED EQUITY HOUSING COOPERATIVE CONVERSIONS
Article
DIVISION 2. MISSION BAY SUBDIVISION CODE1.GENERAL PROVISIONS2.DEFINITIONS3.GENERAL PROCEDURAL PROVISIONS4.TENTATIVE MAPS5.SUBDIVISION REQUIREMENTS6.IMPROVEMENT REQUIREMENTS7.FINAL MAPS AND PARCEL MAPS8.SECURITY, BONDS, TAXES 10.CONSISTENCY WITH STATE LAW11.REVERSION TO ACREAGE
Article
DIVISION 3. CANDLESTICK POINT/HUNTERS POINT SHIPYARD SUBDIVISION CODE1.GENERAL PROVISIONS2.DEFINITIONS3.GENERAL PROCEDURAL PROVISIONS4.TENTATIVE MAPS5.SUBDIVISION REQUIREMENTS6.IMPROVEMENT REQUIREMENTS7.FINAL MAPS AND PARCEL MAPS8.SECURITY, BONDS, TAXES
DIVISION 1.
SUBDIVISION CODE
ARTICLE 1:
GENERAL PROVISIONS*
Sec. 1300.Title.Sec. 1301.Authority and Mandate.Sec. 1302.Purposes.Sec. 1302A.Fair Housing Requirements.Sec. 1303.Scope.Sec. 1304.Enforcement.Sec. 1305.Severability.
* Editorís Note:
Refer to Division 2 of the San Francisco City and County Subdivision Code for provisions regulating subdivision of land within the Mission Bay Project Area.
SEC. 1300. TITLE.
This Chapter shall be known as the "Subdivision Code of the City and County of San Francisco."
SEC. 1301. AUTHORITY AND MANDATE.
(a) This Code is adopted pursuant to the Subdivision Map Act of California, Title 7, Division 2 of the Government Code, commencing with Section 66410 (hereinafter referred to as "SMA").
(b) Any amendments to SMA, adopted subsequent to the effective date of this Code, shall not invalidate any provisions of this Code. Any amendments to SMA that may be inconsistent with this Code shall govern.
(c) This Code shall govern in relation to all other ordinances of the City and County of San Francisco and rules and regulations pursuant thereto. In the event of any inconsistency or conflict between the provisions of this Code and other provisions of the Municipal Code, the most restrictive shall prevail.
SEC. 1302. PURPOSES.
(a) This Code is enacted to establish procedures and requirements for the control and approval of subdivision development within the City and County of San Francisco in accordance with SMA.
(b) This Code is enacted to encourage and ensure the development of subdivisions consistent with the objectives of the San Francisco Master Plan.
(c) Recognizing that, by their unique character and impact on the City's population and housing stock, condominium conversion subdivisions differ from other subdivisions, implementation of Subsections (a) and (b) of this Section requires the adoption of special requirements for conversions, the purposes of which are:
(1) To preserve a reasonable balance of ownership and rental housing within the City and County of San Francisco by providing for an annual limitation on the number of units which may be converted to condominiums in any year.
(2) To promote the meaningful expansion of homeownership opportunities for existing tenants and to prevent the displacement of existing tenants by requiring a high degree of tenant intent to purchase their rental units as a condition of approval.
(3) To reduce the impact of conversions on nonpurchasing tenants who may be required to relocate, by providing for procedures for notification and adequate time and assistance for relocation, and providing for the reimbursement of costs resulting from such relocation.
(4) To prevent the displacement of elderly and disabled tenants by assuring them of extended leases to remain in their units subsequent to conversion.
(5) To assure that purchasers of converted housing have been properly informed as to the physical condition of the structure which is offered for purchase.
(6) To prevent the effective loss of the City's low or moderate income housing stock by requiring sales price limitations on those units proposed for conversion which are found to be part of the low or moderate income housing stock.
(7) To expand the supply of the City's low or moderate income housing stock by provision of a minimum of 10 percent low or moderate income housing units in any condominium subdivision, or by construction of an equivalent number of such units elsewhere, or by in-lieu payments into a City housing development fund.
(Amended by Ord. 337-79, App. 7/6/79; Ord. 161-01, File No. 010891, App. 7/9/2001; Ord. 281-04, File No. 041353, App. 12/1/2004)
SEC. 1302A. FAIR HOUSING REQUIREMENTS.
When making any decision regarding the control or approval of subdivision development within the City and County of San Francisco which includes "dwellings" as defined in Chapter 87 of the San Francisco Administrative Code, the applicable City department or official shall comply with that Chapter which requires, among other things, that the applicable City department or official not base any decision regarding the development of "dwellings" in which "protected class" members are likely to reside on information which may be discriminatory to any member of a "protected class" (as all such terms are defined in Chapter 87 of the San Francisco Administrative Code).
(Added by Ord. 308-99, File No. 990499, App. 12/3/99)
SEC. 1303. SCOPE.
(a) This Code supplements SMA, prescribing rules, regulations and procedures authorized therein.
(b) The necessity for Tentative Maps, Final Maps and Parcel Maps shall be governed by this Section and SMA.
(c) For subdivisions creating five or more parcels or units, a Tentative Map and a Final Map or Parcel Map shall be required pursuant to this Code and SMA.
(1) A Tentative Map and a Final Map shall be required for all such subdivisions except those coming within the exceptions set forth in Section 66426 of SMA.
(2) A Tentative Map and a Parcel Map shall be required for all such subdivisions coming within the exceptions set forth in Section 66426 of SMA.
(d) For subdivisions creating fewer than five parcels or units, no Tentative Map shall be required except as provided in Section 1333.1(a) with respect to vesting tentative maps. In all subdivisions creating fewer than five parcels or units where the subdivider does not choose to file a vesting other Tentative Map, a Parcel Map containing the information specified by Section 1359 of this Code and SMA shall be required. Said Parcel Map shall be filed with the City Engineer and recorded according to the procedure set forth in Sections 1360 through 1364 of this Code.
(e) No Tentative Map, Final Map or Parcel Map shall be required for those specific types of subdivision exempted by Sections 66412 and 66428 of SMA; provided, however, that with respect to subdivisions described in Subsection (h) of Section 66412 of the SMA, certification pursuant to the provisions of Section 1397 must be obtained.
(f) The Director of Public Works shall waive the requirement of a Parcel Map for any improved or unimproved land shown on the latest equalized County assessment roll as contiguous units or parcels where the units or parcels have been subdivided legally and comply with the requirements as to lot width and area, improvement and design, floodwater drainage control, appropriate improved public roads, sanitary disposal facilities, water supply availability and environmental protection.
(Amended by Ord. 576-85, App. 12/27/85)
SEC. 1304. ENFORCEMENT.
(a) It is unlawful for any person, firm, corporation, partnership or association to offer to sell or lease, contract to sell or lease, or sell or lease any subdivision or any part thereof until a Final Map or a Parcel Map thereof, in full compliance with the provisions of this Code and SMA, has been duly recorded in the office of the Recorder.
(b) All departments, officials and public employees of the City, vested with the duty or authority to approve or issue permits, shall conform to the provisions of this Code and shall neither approve nor issue any permit or license for use, construction, or purpose in conflict with the provisions of this Code. Any such permit or license issued in conflict with the provisions of this Code shall be null and void.
(c) Any subdivider, agent of a subdivider, successor in interest of a subdivider, tenant, purchaser, builder, contractor or other person who violates any of the provisions of this Code or any conditions imposed pursuant to this Code, or who knowingly submits incorrect information to endeavor to mislead or misdirect efforts by agencies of the City and County of San Francisco in the administration of this Code, shall be deemed guilty of a misdemeanor and upon conviction thereof shall be fined in an amount not exceeding $2,000 or be imprisoned for a period not exceeding six months or be both so fined and imprisoned. Each day such violation is committed or permitted to continue shall constitute a separate offense and shall be punishable as such hereunder.
(d) The Director of Public Works shall have the authority to enforce this Code against violations thereof by any of the following actions:
(1) The Director may serve notice requiring the cessation or correction of any action in violation of this Code upon the subdivider, agent of the subdivider, successor in interest of the subdivider, tenant, purchaser, builder, contractor or other person who commits or assists in such violation;
(2) The Director may call upon the City Attorney to maintain an action for injunction to restrain or abatement to cause the correction of any such violation; and
(3) The Director may call upon the District Attorney to institute criminal proceedings in enforcement of this Code against any such violation.
(e) The current or former tenant or tenants of the property proposed for conversion may institute a civil proceeding for injunctive relief, money damages of not less than three times actual damages, and whatever other relief the Court deems appropriate. The prevailing party shall be entitled to reasonable attorney's fees and costs pursuant to order of the Court. The remedy available under this subsection shall be in addition to any other existing remedies which may be available to the tenant or tenants.
(Amended by Ord. 86-81, App. 2/20/81)
SEC. 1305. SEVERABILITY.
(a) If any Article, Section, subsection, paragraph, sentence, clause or phrase of this Code, or any part thereof, is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, or other competent agency, such decisions shall not affect the validity or effectiveness of the remaining portions of this Code or any part thereof. The Board of Supervisors hereby declares that it would have passed each Article, Section, subsection, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more Articles, Sections, subsections, paragraphs, sentences, clauses or phrases be declared unconstitutional or invalid or ineffective.
(b) If the application of any provisions or provisions of this Code to any person, property or circumstances is found to be unconstitutional or invalid or ineffective in whole or in part by any court of competent jurisdiction, or other competent agency, the effect of such decision shall be limited to the person, property or circumstances immediately involved in the controversy and the application of any such provisions to other persons, properties and circumstances shall not be affected.
(c) This Section shall apply to this Code as it now exists and as it may exist in the future, including all modifications thereof and additions and amendments thereto.
(Amended by Ord. 163-75, App. 4/28/75)
ARTICLE 2:
DEFINITIONS
Sec. 1306.General.Sec. 1307.Government Agencies.Sec. 1308.Subdivisions.Sec. 1309.Terminology.
SEC. 1306. GENERAL.
Officials and agencies referred to in this Code and in SMA are officials and agencies of the City and County of San Francisco, unless the contrary is either stated or implied.
SEC. 1307. GOVERNMENT AGENCIES.
(a) "Advisory Agency" and "Director" mean the Director of Public Works.
(b) "Bureau of Building Inspection" and "BBI" mean the Bureau of Building Inspection of the Department of Public Works.
(c) "Bureau of Engineering" means the Bureau of Engineering of the Department of Public Works.
(d) "City Engineer" and "County Engineer" mean the City Engineer and his staff.
(e) "City Planning" means the Department of City Planning.
(f) "Clerk" means the Clerk of the Board.
(g) "County," "City," "City and County," "Municipality" and "Local Agency" mean the City and County of San Francisco.
(h) "County Surveyor" means the County Surveyor and his staff.
(i) "Governing Body," "Legislative Body" and "Board" mean the Board of Supervisors.
(Amended by Ord. 284-04, File No. 041335, App. 12/14/2004)
SEC. 1308. SUBDIVISIONS.
(a) "Common areas" shall mean an entire project excepting all units therein granted or reserved.
(b) "Community Apartments" shall mean an estate in real property consisting of an undivided interest in common in a parcel of real property and the improvements thereon coupled with the right of exclusive occupancy of any apartment located therein.
(c) "Condominium" shall mean an estate in real property consisting of an undivided interest in common in a portion of a parcel of real property together with a separate interest in space in a residential, industrial, or commercial building on such real property, such as an apartment, office, or store. A Condominium may include in addition a separate interest in other portions of such real property. Such estate may, with respect to the duration of its enjoyment, be either (1) an estate of inheritance or perpetual estate, (2) an estate for life, or (3) and estate for years, such as a leasehold or subleasehold. This definition is intended to conform to Section 783 of the California Civil Code and any other section of California law.
(d) "Conversion" shall mean a subdivision which changes the type of ownership of real property to that defined as a Condominium project, Community Apartment project or Stock Cooperative and in which two or more condominiums, community apartments or units in a stock cooperative are newly created wholly or in substantial part within an existing residential structure or structures, regardless of the present or prior use of such structures and of whether substantial improvements have been made to such structures. A conversion also shall include a subdivision that: (1) is created wholly or in substantial part within an existing residential structure or structures, regardless of the present or prior use of such structures and of whether substantial improvements have been made to such structures and (2) divides one or more of the existing residential dwelling units into separate lots, parcels, or units.
(e) "Project" shall mean the entire parcel or real property divided or to be divided in any of the methods defined as a subdivision.
(f) "Stock Cooperative" shall mean a corporation formed or availed of primarily for the purpose of holding title to, either in fee simple or for a term of years, improved real property, if all or substantially all of the shareholders of such corporation receive a right of exclusive occupancy in a portion of the real property, title to which is held by the corporation, which right of occupancy is transferable only concurrently with the transfer of the share or shares of stock in the corporation held by the person having such right of occupancy.
(g) "Subdivider" shall mean a person, firm, corporation, partnership or association who proposes to divide, divides or causes to be divided real property into a subdivision for himself or for others. City agencies, including the San Francisco Redevelopment Agency, are exempted from this definition.
(h) "Subdivision" shall mean the division of any improved or unimproved land, shown on the latest equalized County assessment roll as a unit or as contiguous units, for the purpose of sale, lease or financing, whether immediate or future. Property shall be considered as contiguous units even if it is separated by roads, streets, utility easements or railroad rights-of-way. This definition shall specifically but not exclusively include Condominiums, Community Apartments, Stock Cooperatives and Conversions.
(i) "Unit" shall mean the elements of a project which are to be owned individually and not in common with the owners of other elements of the project.
(j) "Tenant" shall mean a person or persons entitled under a lease, rental agreement or other agreement with the owner of record of the property or his or her agent to occupy a dwelling unit. A "tenant" can be an owner or a shareholder of the owner of record who resides in the property. For purposes of this definition, "Tenant" shall mean "Subtenant" as defined in Section 1308(k) where the subtenant occupies and resides in the unit in agreement with and to the exclusion of the tenant and with the consent of the owner.
(k) "Subtenant" shall mean a person or persons whose rights to occupy a dwelling are derived from the tenant rather than from the property owner or his or her agent.
(l) "Low-Income Housing Stock" shall mean those rental dwelling units in buildings being proposed for conversion for which the rent, at the time the application for conversion is filed, does not exceed 25 percent of the gross monthly income of a low-income household as defined in Section 1309(e). For purposes of applying this Section and Section 1309(e), a studio apartment shall be deemed to be a one-person household, a one-bedroom apartment shall be deemed to be a two-person household, a two-bedroom apartment shall be deemed to be a three-person household, and a three-bedroom apartment shall be deemed to be a four-person household.
(m) "Moderate-Income Housing Stock" shall mean those rental dwelling units in buildings being proposed for condominium conversion, the rental for which at the time of filing the application for conversion exceeds the amount which would cause the unit to be defined as low-income housing stock pursuant to Section 1308(l), but does not exceed 25 percent of the gross monthly income of a moderate-income household as defined in Section 1309(f). In relating the size of the unit to household size, the same relationships set forth for low-income housing shall apply.
(n) "Gross Income" shall have the meaning set forth in Section 1344.
(o) "Household" shall mean any person or persons who reside or intend to reside in the same housing unit.
(p) "Household of median income" and "Household of low income" shall have the meaning set forth in Section 1344.
(Amended by Ord. 337-79, App. 7/6/79; Ord. 426-89, App. 11/22/89; Ord. 161-01, File No. 010891, App. 7/9/2001; Ord. 203-02, File No. 021503, App. 10/11/2002; Ord. 281-04, File No. 041353, App. 12/1/2004; Ord. 185-08, File No. 080407, App. 8/5/2008; Ord. 320-08, File No. 080520, App. 12/19/2008)
SEC. 1309. TERMINOLOGY.
(a) "Affirmative Action in Housing" shall mean informational and promotional activity for the purpose of eliminating discrimination in housing accommodations because of race, religion, national origin, sex, or any other basis prohibited by law.
(b) "Application Packet" shall mean the Tentative Map together with all documents, statements and other matters that are required as attachments thereto.
(c) "Final Map" shall mean a map prepared in accordance with Chapter 2, Article 2 of SMA and this Code, which map is designed to be placed on record in the office of the Recorder.
(d) "Improvement Plan" shall mean an engineering plan or a set of engineering plans showing the location and construction details of improvements.
(e) Intentionally left blank.
(f) Intentionally left blank.
(g) "Parcel Map" shall mean a map prepared in accordance with Chapter 2, Article 3 of SMA and this Code, which map is designed to be placed on record in the office of the Recorder.
(h) "Soil Engineer" shall mean a registered civil engineer, experienced in engineering geology, responsible for the soil engineering work outlined in this Code, including supervision, analysis and interpretation of field investigation and laboratory tests for a specific project; preparation of geological and soil engineering recommendations and specifications; and supervision of grading construction work.
(i) "Standard Specifications" shall mean the Standard Specifications of the Bureau of Engineering.
(j) "Subdivision Regulations" shall mean the detailed technical and administrative requirements adopted by the Advisory Agency to supplement this Code, including amendments thereto.
(k) "Tentative Map" shall mean a map made for the purpose of showing the design of a proposed subdivision and the existing conditions in and around it; such a map need not be based upon an accurate or detailed final survey of the property.
(l) "Vesting tentative map" shall mean a tentative map which shall have at the time of filing printed conspicuously on its face the words "Vesting Tentative Map."
(Amended by Ord. 576-85, App. 12/27/85; Ord. 38-88, App. 2/8/88; Ord. 320-08, File No. 080520, App. 12/19/2008)
ARTICLE 3:
GENERAL PROCEDURAL PROVISIONS
Sec. 1310.Advisory Agency.Sec. 1311.Subdivision Regulations.Sec. 1312.Exceptions.Sec. 1313.Notice and Hearing.Sec. 1314.Appeals.Sec. 1315.Fees.
SEC. 1310. ADVISORY AGENCY.
(a) The Director of Public Works is hereby continued as the Advisory Agency.
(b) All maps, plans and reports required by this Code shall be filed with the County Surveyor.
(Amended by Ord. 284-04, File No. 041355, App. 12/14/2004)
SEC. 1311. SUBDIVISION REGULATIONS.
(a) The County Surveyor and the City Engineer, with the assistance of other City agencies, shall prepare and publish the Subdivision Regulations, including amendments thereto, needed to supplement this Code.
(b) Such Regulations, including amendments thereto, shall be adopted by the Director after holding a public hearing. The decision of the Director in adopting the Subdivision Regulations, including amendments thereto, shall be final.
(Amended by Ord. 284-04, File No. 041355, App. 12/14/2004)
SEC. 1312. EXCEPTIONS.
(a) Upon application by the subdivider, the Director may authorize exceptions to any of the substantive requirements set forth in this Code and in the Subdivision Regulations.
(b) Before granting any such exception in whole or in part, the Director shall hold a public hearing on the requested exception. Furthermore, he must find:
(1) That there are unusual circumstances or conditions affecting the property;
(2) That the exception is necessary for the preservation and enjoyment of a substantial property right of the applicant;
(3) That the granting of the exception will not be materially detrimental to the public welfare or injurious to other property in the area in which said property is situated; and
(4) That the granting of such exception has been determined by the City Planning Commission to be consistent with the Master Plan, after said Commission has held a public hearing.
(c) In granting any such exception, the Director shall designate the conditions under which the exception is granted.
SEC. 1313. NOTICE AND HEARING.
(a) Other than with respect to an application for a conversion including one or more residential units, the Director shall give notice in the following manner to the public and interested parties of each application for a Tentative Map, or for a Parcel Map for which a Tentative Map is not required. If the application is for a vesting tentative map, the notice shall so state.
Notice of the Director's receipt of the application shall be mailed or delivered to any person who has filed a written request for notice with the Director's office.
(b) The Department of City Planning shall publish, and shall give to the same persons and agencies as entitled to notice under Subsection (a), notice of any Planning Commission hearing on a proposed subdivision and shall also give similar notice to any tenants if the property is proposed to be converted. If the application is for a vesting tentative map, the notice shall so state.
If the Director is required under Section 1312 or elects to hold a public hearing with respect to an application, he or she shall give notice not less than 10 days prior to the hearing date as provided in Subsection (a) of this Section. If the application is for a Conversion, he or she shall also notify each tenant of the property proposed for Conversion
(d) Other than applications for a Conversion which includes one or more residential units, all applications for a Tentative Map or for a Parcel Map for which a Tentative Map is not required, shall include, in addition to all other information required:
(1) A list of the names, assessor's lot and block numbers and mailing addresses of all those shown in the last equalized assessment roll as owning property within 300 feet of the property proposed to be subdivided.
(2) A 300-foot radius map delineating all the properties described in Subsection (c)(1).
(3) One stamped envelopes preaddressed to each or the listed property owners, suitable for mailing notice of the application and of any hearing or appeal thereon. Blank Department of Public Works envelopes will be furnished to a proposed subdivider on request. Unused envelopes will be returned to the proposed subdivider on request.
(e) Any Department hearing required under Section 1312 or permitted by this Code may, at the discretion of the Director, be held jointly with the Department of City Planning.
(f) The provisions of this Section shall be superseded by those of any amendment to California Government Code Sections 65090 or 65091, or to any provision of the SMA, should the amended provisions require additional notice.
(Amended by 576-85, App. 12/27/85; Ord. 283-08, File No. 081235, App. 12/5/2008)
SEC. 1314. APPEALS.
(a) The proposed subdivider, or any interested party may appeal to the Board from a final decision of the Director approving, conditionally approving, or disapproving a Tentative Map, or a Parcel Map for which a Tentative Map is not required. Any such appeal must be filed in writing with the Clerk of the Board within 10 days of release of the decision appealed, and must be accompanied by the fee specified in Section 1315 (b) of this Code.
(b) The Director shall mail or deliver to the proposed subdivider, any tenant in a property for which a Conversion is proposed, and any person who owns property within 300 feet of a proposed subdivision, other than a Conversion for which a Tentative Map is not required, notice of: (1) his or her decision on any Tentative Map, or Parcel Map for which a Tentative Map is not required, and of any conditions which may have been incorporated in a conditional approval; (2) the right to appeal the Director's decision; and (3) the availability for examination of the Director's report.
(c) With respect to appeals under this Section, the Board shall schedule a hearing on the appeal to be held within 30 days after the appeal has been filed, and shall give notice as provided in Section 1313 (a)(1) and to the persons entitled to notice of the Director's decision under Section 1314 (b). The Board also shall publish notice of the hearing in at least one newspaper of general circulation within the City and County of San Francisco.
(Amended by Ord. 427-85, App. 9/12/85; Ord. 283-08, File No. 081235, App. 12/5/2008)
SEC. 1315. FEES.
(a) Fees, payable to the Department of Public Works, shall be charged for checking and processing the maps, plans and reports, lot line adjustments, certificates of compliance, amended maps, records of survey, certificates of correction, and other actions and procedures set forth in California Government Code section 66451.2. Said fees shall be due at the time of filing an application. Failure to pay such fees shall result in a return of the application as incomplete to the applicant. The fee schedule is as follows:
(1) Air Space (four lots or less) is $8,598.00 with a fee of $500.00 for each additional lot;
(2) Lot Subdivision "Final Map" is $8,437.00;
(3) Condominium Conversion is $8,336.00;
(4) Parcel Map is $7,770.00;
(5) Lot Merger Re-subdivision is $6,943.00;
(6) Amended Map is $2,704.00;
(7) Lot Line Adjustment is $2,704.00;
(8) Lot Merger is $2,581.00;
(9) Certificate of compliance is $2,139.00;
(10) Certificate of correction is $2,139.00;
(11) Record of survey is $507.00; and
(12) Other actions not specified above, shall be based on actual costs that the Department incurs in administering and processing the action or procedure and shall be charged on a time and materials basis. The Department shall provide the applicant with a written estimate of said costs at the time of application, and the applicant shall pay such fees prior to the time that the application is deemed complete. To the extent that the estimated fees do not cover actual costs, any outstanding amount due shall be a condition of the Department's final decision on the action or procedure. To the extent that the estimated fees exceeded the actual costs, the Department shall refund the excess amount to the applicant within a reasonable period after the Department's final decision on the action or procedure.
(b) A fee of $250 shall be charged to defray costs of an appeal under Section 1314 of this Code.
(c) Payment of fees charged under this Code does not waive the fee requirements of other ordinances and rules and regulations pursuant thereto.
(d) There is hereby created a Subdivision Fund wherein all funds received under the provisions of this Section shall be deposited. All expenditures from the Fund shall be for engineering or technical investigations and equipment directly related to the checking and processing of the maps, plans, reports and parcel map waivers filed under this Code, and all such expenditures are hereby appropriated for said purposes.
(e) Additional Fees.
(1) In instances where administration or processing of any application, action, or procedure is or will exceed the fee amount established pursuant to subsection (a), the Director, in his or her discretion, may require an applicant or permittee to pay a sum in excess of the subject fee amounts. This additional sum shall be sufficient to recover actual costs that the Department incurs and shall be charged on a time and materials basis. The Director also may charge for any time and materials costs that other agencies, boards, commissions, or departments of the City, including the City Attorney's Office, incur in connection with the processing or administration of a particular application, action, or procedure. Whenever additional fees are or will be charged, the Director, upon request of the applicant or permittee, shall provide in writing the basis for the additional fees or an estimate of the additional fees to be charged.
(2) DBI Review Fee. A fee of $374.00 shall be charged for each action specified above that the Department of Building Inspection reviews. This fee is in addition to the fees specified above and shall be paid separately at the time of application.
(f) Beginning with fiscal year 2006-2007, the fees which are established herein may be adjusted each year, without further action by the Board of Supervisors, to reflect changes in the relevant Consumer Price Index, as determined by the Controller. No later than April 15th of each year, the Director shall submit the Department's current fee schedule to the Controller, who shall apply the price index adjustment to produce a new fee schedule for the following year. No later than May 15th of each year, the Controller shall file a report with the Board of Supervisors reporting the new fee schedule and certifying that: (a) the fees produce sufficient revenue to support the costs of providing the services for which the fee is charged and (b) the fees do not produce revenue that exceeds the costs of providing the services for which each permit fee is charged. Notwithstanding the procedures set forth in this Section, the Board of Supervisors, in its discretion, may modify the fees at any time.
(Amended by Ord. 427-85, App. 9/12/85; Ord. 142-89, App 5/3/89; Ord. 251-05, File No. 051460, App. 11/15/2005; Ord. 283-08, File No. 081235, App. 12/5/2008)
Sec. 1316.
(Added by Ord. 161-01, File No. 010891, App. 7/9/2001; amended by Ord. 203-02, File No. 021503, App. 10/11/2002; repealed by Ord. 281-04, File No. 041353, App. 12/1/2004; Ord. 251-05, File No. 051460, App. 11/15/2005)
ARTICLE 4:
TENTATIVE MAPS
Sec. 1320.Pre-filing Conference.Sec. 1321.Application Packet.Sec. 1322.Tentative Map.Sec. 1323.Tentative Map Documents.Sec. 1324.Filing.Sec. 1325.Referral to Other Agencies.Sec. 1326.Time Limit for Agency Review.Sec. 1327.Agency Report.Sec. 1328.Subdivision Conference.Sec. 1329.County Surveyor's Consolidated Report.Sec. 1331.Advisory Agency's Report.Sec. 1332.Hearings on Conversions; Master Plan.Sec. 1333.1.Vesting Tentative Map Authorized.Sec. 1333.2.Vesting Tentative Map Requirements.Sec. 1333.3.Rights Conveyed.Sec. 1333.4.Inconsistency with Ordinances and Other Standards.Sec. 1333.5.Conditions.
SEC. 1320. PRE-FILING CONFERENCE.
Prior to filing a Tentative Map, the subdivider may elect to submit to the County Surveyor preliminary maps, plans and other data concerning a proposed subdivision. Within 14 days after the receipt of said material, the County Surveyor will hold a conference with the subdivider, City Planning and any other interested agencies to discuss the proposed subdivision. This procedure is optional and does not waive the requirements for filing a Tentative Map.
(Amended by Ord. 284-04, File No. 041355, App. 12/14/2004)
SEC. 1321. APPLICATION PACKET.
The initial action in connection with the making of any subdivision for which a Tentative Map is required shall be the preparation of the Application Packet. Sections 1322 and 1323, and with respect to vesting tentative maps Sections 1333.2, of this Code cover the preparation of the component parts of said Application Packet.
(Amended by Ord. 576-85, App. 12/27/85)
SEC. 1322. TENTATIVE MAP.
(a) The Tentative Map shall be prepared by a registered civil engineer or a registered land-surveyor.
(b) the Tentative Map shall contain the following data, in sufficient detail to enable the Director and other agencies to evaluate the proposed subdivision:
(1) Title;
(2) Explanatory Notes; and
(3) Topographic Map of the proposed subdivision and adjacent lands showing the existing conditions and the proposed changes.
(c) The Tentative Map shall conform to the Subdivision Regulations regarding detailed format and contents.
SEC. 1323. TENTATIVE MAP DOCUMENTS.
(a) Statement. A written statement shall contain the following information:
(1) Existing use or uses of the property, including whether or not there are existing tenancies and the conditions and terms thereof;
(2) Description of the proposed subdivision, including the number of lots or units, their sizes and intended uses, nature of the development, and the total area of the development represented by each use;
(3) The improvements proposed to be constructed or installed and the tentative schedule for the start and completion thereof;
(4) Whether the subdivider intends to file a Final Map or a Parcel Map;
(5) Description of variances and exceptions that are requested; and
(6) Certification that the subdivider or his or her agent shall not retain any right, title or interest in any common area or areas or facilities of the subdivision and its amenities, except those common areas in which the subdivider retains an individual interest by virtue of ownership of one or more of the units.
(b) Environmental Evaluation Data. Data shall be supplied on the appropriate City Planning forms for an Environmental Impact Evaluation or in appropriate format to satisfy requirements for environmental review under the California Environmental Quality Act.
(Amended by Ord. 337-79, App. 7/6/79)
SEC. 1324. FILING.
(a) The Application Packet, together with the initial fee payment, shall be filed with the County Surveyor.
(b) The date of filing shall be the date when a complete Application Packet has been accepted by the County Surveyor.
(c) Upon date of filing the Application Packet shall become a Public Record.
(Amended by Ord. 284-04, File No. 041355, App. 12/14/2004)
SEC. 1325. REFERRAL TO OTHER AGENCIES.
Within three working days after the Application Packet has been filed with the County Surveyor, the County Surveyor shall forward copies to City Planning, the Bureau of Engineering, the Bureau of Building Inspection, the Human Rights Commission and other appropriate government agencies for their review.
(Amended by Ord. 284-04, File No. 041355, App. 12/14/2004)
SEC. 1326. TIME LIMIT FOR AGENCY REVIEW.
(a) The time limit for agency review shall 30 days from the date of receipt by said agency of a copy of the Application Packet.
(b) The time limit for agency review may be extended by mutual consent of the subdivider and the County Surveyor.
(Amended by Ord. 284-04, File No. 041355, App. 12/14/2004)
SEC. 1327. AGENCY REPORT.
Each reviewing agency shall report, in writing, to the County Surveyor, with a copy to the subdivider, its findings on and recommendation for approval, conditional approval or denial of an Application Packet. City Planning's report shall include a finding on consistency with the Master Plan. The Bureau of Building Inspection's report shall include a finding on the necessity of a Preliminary Report.
(Amended by Ord. 284-04, File No. 041355, App. 12/14/2004)
SEC. 1328. SUBDIVISION CONFERENCE.
Within six days after all agency reports have been received or after expiration of the review time limits or any mutually agreed extension thereof, the County Surveyor at his or her discretion may hold a subdivision conference to discuss the reports submitted. Written notice of such conference shall be sent to the subdivider, to all agencies who have submitted a report, and to other persons and organizations who have expressed an interest in the proposed subdivision.
(Amended by Ord. 427-85, App. 9/12/85; Ord. 284-04, File No. 041355, App. 12/14/2004)
SEC. 1329. COUNTY SURVEYOR'S CONSOLIDATED REPORT.
(a) Whenever a subdivision conference is required, the County Surveyor shall submit to the Director a written report on the findings and recommendations discussed in the conference, attaching thereto copies of the reports from other agencies. A copy of said report shall be sent to each participant in the subdivision conference. Said report shall be submitted to the Director within four days after the subdivision conference.
(b) Whenever a public hearing is required, the County Surveyor shall submit to the Director, with a copy to the subdivider, a written report on the findings and recommendations received from the reviewing agencies, attaching thereto copies of the reports from said agencies. Said report shall be submitted within five days after expiration of the review time limits.
(Amended by Ord. 284-04, File No. 041355, App. 12/14/2004)
SEC. 1331. ADVISORY AGENCY'S REPORT.
(a) Within 50 days after the filing of the Tentative Map, unless the time has been extended by mutual consent of the subdivider and the Director, the Director shall report in writing on said map to the subdivider. Said report shall approve, conditionally approve or disapprove the Tentative Map. If the map is disapproved, the report shall also state the reasons for disapproval.
(b) Copies of the Director's report shall be sent to all agencies that submitted a report and to the Board.
SEC. 1332. HEARINGS ON CONVERSIONS; MASTER PLAN.
(a) The City Planning Commission shall hold a public hearing in the case of Conversions of five or more units which include one or more residential units. The City Planning Department shall give notice of such hearings as provided in Section 1313(b).
(b) Whenever a property is to be subdivided, the Department of City Planning shall report on the question of consistency of the subdivision with the Master Plan.
(c) The Director shall disapprove the proposed subdivision when the Department of City Planning finds that the proposed subdivision is not consistent with the Master Plan, subject to any decision on appeal by the Board of Supervisors.
(d) When the Department of City Planning finds, subject to any decision on appeal by the Board of Supervisors, or when the Board of Supervisors finds, that a proposed subdivision will be consistent with the Master Plan only upon compliance with certain conditions, the Director shall incorporate said conditions in his or her conditional approval of the proposed subdivision.
(Amended by Ord. 427-85, App. 9/12/85)
SEC. 1333.1. VESTING TENTATIVE MAP AUTHORIZED.
(a) With respect to any subdivision for which a tentative map and final map are required under this Code, the subdivider may file instead a vesting tentative map and final map. With respect to any subdivision for which a parcel map is required under this Code, the subdivider may file instead a vesting tentative map and final map.
(b) Except as otherwise provided in Sections 1333.2 through 1333.5 of this Code, a vesting tentative map shall be subject to the same procedures, requirements and other Code provisions as any other tentative map.
(Amended by Ord. 576-85, App. 12/27/85; Ord. 38-88, App. 2/8/88)
SEC. 1333.2. VESTING TENTATIVE MAP REQUIREMENTS.
(a) In addition to meeting the requirements otherwise applicable to tentative maps, any subdivider applying for approval of a vesting tentative map shall also file with the Department of Public Works:
(1) A site survey signed by a licensed surveyor or licensed engineer;
(2) Plot plans showing: (i) the location and scale of all structures existing or to be constructed or improved within the subdivision, and (ii) the location and scale of all structures on adjoining property, including the front and rear walls of all structures;
(3) Floor plans, elevations, sections, a parking plan and a roof plan for all structures existing or to be constructed or improved within the subdivision;
(4) Plan showing all landscaping, tree planting, off-street parking and screening existing or to be constructed or improved within the subdivision and on adjacent public rights-of-way; and
(5) Evidence that the proposed subdivider has obtained all of the following which will be sought or required in connection with the proposed subdivision or its design or improvements:
(A) Zoning reclassification(s) and amendment(s), including any such action affecting the existence, boundary or restrictions of a historic or conservation district;
(B) Amendments to the Master Plan, including any applicable institutional master plan;
(C) Conditional use approval(s) under the City Planning Code;
(D) Variance(s) or exception(s) under the City Planning Code;
(E) Amendment, repeal or adoption of setback(s);
(F) Completion of, or approval by the public entities involved of any vacation of a public street or other conveyance of public property or right-of-way which is proposed;
(G) Issuance or final approval of any special use, any coastal zone or Bay Conservation and Development Commission permission, any certificate of appropriateness under Article 10 of the City Planning Code or any other permit, license or approval, other than a building, site, demolition or other permit under the Building Code, which is prerequisite to carrying out the subdivision or its proposed design or improvements; and
(6) A complete application for environmental evaluation of the proposed subdivision and all development proposed on the site.
(b) No vesting tentative map application shall be complete until all the material specified by the preceding sentence has been received by the Department of Public Works. Failure to have obtained any item required by Subsection (a)(5) of this Section prior to applying for a vesting tentative map shall be grounds for disapproval of a vesting tentative map application. Application for, or approval of, any such item affecting the subdivision; which item was not contained in the application for a vesting tentative map may be grounds to invalidate the map and to deny any subsequent permit, license or approval for the subdivision where approval of the item would substantially affect the subdivision or the conditions of its approval.
(Added by Ord. 576-85, App. 12/27/85)
SEC. 1333.3. RIGHTS CONVEYED.
(a) Approval of a vesting tentative map shall confer a vested right to proceed with development as provided, and only to the extent provided, in Section 66498.1(b) of the California Government Code, subject to Sections 66498.1(c) and 66498.1(d) of the California Government Code and the limitations and conditions thereof.
(b) The right referred to in Subsection (a) shall expire if a final map is not approved before expiration of the related vesting tentative map under California Government Code Section 66452.6. If a final map is approved, the right referred to shall continue during the following periods of time:
(1) One year from recording of the approved final map. Where several final maps are recorded on various phases of a project covered by a single vesting tentative map, this initial time period shall begin for each when the final map for that phase is recorded. Where the City uses more than 30 days to process a completed application for a grading permit, this initial time period shall be extended by the processing time, counted from the date the application was completed.
(2) An additional period of not more than one year, if the proposed subdivider applies for such an extension at any time before the expiration of the period provided in Subsection (b)(1), and if the Department of Public Works determines that such extension will not prejudice the interests of the public or other private parties. If the Department of Public Works does not approve an application for extension within 30 days after receiving it, it shall be deemed disapproved. The proposed subdivider may appeal by filing a written appeal with the Clerk of the Board of Supervisors not later then 15 days after the disapproval. Any such appeal shall be heard at the time and under the procedural rules then applicable to appeals from denial of tentative maps.
(3) If the subdivider submits a complete building or site permit application before the expiration of the applicable period stated in Subsection (b)(1) or (b)(2), the period during which that application is being processed and the period of the life of any corresponding permit, or any extension thereof. For purposes of this subsection, no permit application shall be complete until any required corresponding application for environmental evaluation has been completed and received by the Department of City Planning.
(Added by Ord. 576-85, App. 12/27/85)
SEC. 1333.4. INCONSISTENCY WITH ORDINANCES AND OTHER STANDARDS.
(a) Whenever a proposed subdivider files a proposed vesting tentative map for a subdivision whose intended development is inconsistent with the Planning Code, that inconsistency shall be noted on the proposed map. The City may deny such a map based on the inconsistency.
(b) Notwithstanding any other provision of this Article, a property owner or his or her designee may seek approvals or permits for development which depart from the ordinances, policies or standards applicable under Section 1333.3(a), and the City may grant such approvals or issue such permits to the extent permitted by otherwise applicable law.
(Added by Ord. 576-85, App. 12/27/85)
SEC. 1333.5. CONDITIONS.
(a) Conditions on approval of a vesting tentative map may relate wholly or in part to any improvements or structures which may be constructed within, or associated with, the subdivision, as well as to the subdivision itself.
(b) Conditions may be required to be fulfilled before or after such filing of the related final or parcel map. Where such conditions are to be fulfilled after filing of the related final map, the subdivider shall furnish security for performance including but not limited to security satisfying the requirements of California Government Code Section 66499.
(Added by Ord. 576-85, App. 12/27/85)
ARTICLE 5:
SUBDIVISION REQUIREMENTS
Sec. 1335.Public Facilities.Sec. 1336.Utilities.Sec. 1337.Beautification.Sec. 1338.Recreation Facilities.Sec. 1339.Easements.Sec. 1340.Monuments.Sec. 1340.1.Monument Preservation.Sec. 1341.Low and Moderate Income Occupancy.Sec. 1341A.Suspension of Provisions of Section 1341 With Respect to Certain Applications.Sec. 1341B.Requirements for Resale of Converted Units On or After June 1, 1988.Sec. 1342.Sales Program.Sec. 1343.Reserved.Sec. 1344.Below Market Rate Condominium Conversion Program.
SEC. 1335. PUBLIC FACILITIES.
(a) General. Public facilities listed in this Section shall meet the design and construction standards in the Subdivision Regulations.
(b) Streets.
(1) Dedicated Public Streets. A subdivision shall have direct access to a dedicated public street. Title to a new or widened dedicated public street shall be conveyed to the City by proper deed prior to approval of the Final Map. Newly created publicly-accessible rights-of-way created as part of subdivisions shall conform with the policies and guidelines of the Better Streets Plan.
(2) Private Streets. Easements for government facilities in private streets shall meet the requirements of Section 1339 of this Code.
(c) Pedestrian Ways. A pedestrian way through a block shall be required when the length of that block exceeds the criteria in the Subdivision Regulations.
(d) Sanitary and Drainage Facilities. The subdivider shall provide sewerage and drainage facilities, connected to City facilities, to serve adequately all lots, dedicated areas and all other areas comprising the subdivision.
(e) Fire Protection. The subdivider shall provide for the installation of fire hydrants, gated connections and other appurtenances and facilities needed for adequate fire protection, including a street fire-alarm box system.
(f) Street Lighting. The subdivider shall provide street-lighting facilities along all streets, alleys and pedestrian ways for the purposes of traffic safety and crime deterrence.
(Ord. 310-10, File No. 101194, App. 12/16/2010)
SEC. 1336. UTILITIES.
(a) The subdivider shall provide a domestic water system, connected to the San Francisco Water Department's water distribution system. He shall also provide electric, gas and communication services connected to the appropriate public utility's distribution system.
(b) Stormwater facilities. In the case of all newly constructed subdivisions, the subdivider shall provide facilities for the on-site detention, retention, infiltration and/or conveyance of stormwater, following the principles of low-impact design for stormwater management, in accordance with the Better Streets Plan and the Stormwater Design Guidelines.
(Ord. 310-10, File No. 101194, App. 12/16/2010)
SEC. 1337. BEAUTIFICATION.
(a) Undergrounding of Utilities. All new utility lines shall be undergrounded as specified in Article 18 of the Public Works Code.
(b) Street Trees and Landscaping. Trees planted along a public street, within the right-of-way, and all landscaping within said right-of-way shall conform to the requirements of Article 16 of the Public Works Code. In the case of all newly constructed subdivisions, the subdivider shall provide street trees and landscaping conforming to the policies of the Master Plan. Maintenance of said trees and landscaping shall be the responsibility of the abutting property owners.
(c) Pedestrian and Streetscape Elements. Pedestrian and streetscape elements within any new publicly-accessible right-of-way shall conform with the policies and guidelines of the Better Streets Plan.
(d) Open Areas. Where required pursuant to the Master Plan, the subdivider shall provide for the landscaping of open areas and the maintenance thereof. Such open areas shall be restricted to such use by recorded covenants which run with the land in favor of the future owners of the property within the subdivision. No such covenant shall be terminated without the consent of the Board.
(Ord. 310-10, File No. 101194, App. 12/16/2010)
SEC. 1338. RECREATION FACILITIES.
Recreation facilities provided in the subdivision for use by the residents shall be restricted to recreational use by recorded covenants as described in Section 1337(c) of this Code. Provisions shall be included in said covenants for maintenance of said facilities.
SEC. 1339. EASEMENTS.
Easements for sanitary and drainage facilities, fire protection facilities and city-owned street lighting faciltities shall be for the exclusive use of such governmental facilities, with the right of immediate access to the facilities by the City.
SEC. 1340. MONUMENTS.
(a) The location and installation of survey monuments shall conform to the standards in the Subdivision Regulations. When such monuments are "tied" to the City or State monuments, for which coordinates of the California Coordinate System are available, the corresponding coordinates for such monuments shall be determined and recorded.
(b) All survey monuments shall be installed prior to filing of the Final map or Parcel Map with the County Surveyor. In lieu thereof a monument bond shall be filed at that time.
(Amended by Ord. 284-04, File No. 041355, App. 12/14/2004)
SEC. 1340.1. MONUMENT PRESERVATION.
The County Surveyor is hereby authorized to use monies collected in Administrative Code Section 10.100-50 for the exclusive purpose of undertaking actions related to a retracement or remonument survey of major historical vertical or horizontal land division lines upon which later surveys are based. Historical vertical or horizontal land division lines include, but are not limited to, government section lines, rancho lines, grant lines, rancho section lines, acreage subdivision lot lines, and subdivision boundary lines within the City and County of San Francisco, including those areas subject to the Mission Bay Subdivision Code and Hunters Point Shipyard Subdivision Code.
(Added by Ord. 258-05, File No. 051461, App. 11/17/2005)
SEC. 1341. LOW AND MODERATE INCOME OCCUPANCY.
The provisions of this Section and its application to certain properties may be affected by amendments creating Section 1344. Please consult Section 1344 in addition to this Section for Units subject to the Below Market Rate Condominium Conversion Program.
(a) In all subdivisions involving 50 or more lots or units, except for condominium or cooperative conversion subdivisions, the subdivider shall make available 10 percent of the units for low and moderate income occupancy provided that the Department of City Planning finds that governmental subsidies for such occupancy are available to the subdivider. This requirement shall not limit the authority of the City otherwise to encourage the provision of low and moderate income housing, or of the subdivider to make available additional low and moderate income housing.
(b) In all condominium or cooperative conversion subdivisions with five or more lots or units, the subdivider shall make available 10 percent of the lots or units for rental or for purchase by households of low or moderate income. In the event that the total number of units determined to be within the low or moderate income housing stocks pursuant to Section 1385 is greater that 10 percent of the total number of units in the subdivision, such greater number shall apply, and such number of units determined to be within the low or moderate income housing stock shall be made available for purchase as set forth in Section 1385, thereby precluding the application of the alternatives set forth in Section 1341 to such number of units. In the event the total number of units determined to be within the low or moderate income housing stock pursuant to Section 1385 is less than 10 percent of the total number of units in the subdivision, the difference between such number of units determined to be within the low or moderate income housing stock and the 10 percent required by Section 1341 may be satisfied by the alternatives set forth in this Section.
(c) If the units are to be made available for purchase, then the sales prices of such units shall not exceed 2.5 times the annual median income for low or moderate income households, as defined, and as adjusted for household size according to the relationship to the size of the dwelling, as set forth in Section 1309. Priority for purchase of these units shall be as set forth in Section 1385. Any low or moderate income household which purchases a dwelling pursuant to this Section shall grant a right-of-first-refusal, to the City and County of San Francisco, or to such other entity that at a future time may be designated by the City and County of San Francisco, to repurchase the dwelling from the initial purchaser at the original price plus the cost of any improvements paid for by the owner, plus an increase proportionate to the increases in the housing component of the "Bay Area Cost of Living Index, U.S. Dept. of Labor," over the intervening time period. The City and County of San Francisco, or designated agent, shall reconvey such unit to other qualified purchasers if the right to purchase is exercised by the City or its designated agent.
(d) If the converted units are to be for rental, then the rent in such units shall not exceed the rent charged at the time of filing the application for conversion, or the maximum rent that would be allowed so as to keep the unit within moderate income housing stock, whichever rent level is lower. Once established, rent levels for any units remaining as rental pursuant to this Section may be increased annually consistent with any changes in the residential rent component of the "Bay Area Cost of Living Index, U.S. Dept. of Labor." In cases of hardship to the subdivider, or in cases where a rent increase authorized herein is considered by the tenant to be not consistent with increases in the residential rent component of the Bay Area Cost of Living Index, either a subdivider or a tenant may request relief under this Section from the Director or his or her designee. In considering the reasonableness of a rent increase, the Director shall consider whether the rental revenues are sufficient to adequately maintain the building in safe and sound condition, and in conformity with any applicable sections of the San Francisco Housing and Building Codes. The Director may allow rent increases greater than the proportionate increases in the residential rent component of the "Bay Area Cost of Living Index, U.S. Dept. of Labor," in order to allow the building to be maintained in safe and sound condition. The rental increase provisions of this Section shall apply only in the absence of other applicable rent increase or arbitration laws.
(e) Converted units made available for purchase by households of low or moderate income pursuant to this Section, or purchased by a tenant or qualified household subject to the price limitation of Section 1385, shall remain within the low or moderate income housing stock pursuant to the recapture provision of Subsection (c) above. Units made available for rental pursuant to Subsection (d) above shall remain as rental units for no less than 20 years, provided, however, that such rental units may be sold by the original subdivider or any subsequent owner during such 20-year period at a price not exceeding the price at which the City and County of San Francisco would be entitled to repurchase the unit if exercising its right of first refusal under Subsection (c) above, and further provided that such maximum price shall not reflect the cost of any improvements made within two years after recording of the final or parcel map for the conversion.
(f) As an alternative to the provisions of Subsections (b) and (c) above, the subdivider shall make a bona fide agreement, satisfactory to the Department of City Planning, to construct or cause to be constructed within a period commencing 18 months prior to the date of filing the application for conversion and ending 18 months after filing of the final or parcel map, or to provide through other means, the same number of units and under the same conditions as would be required for low or moderate income occupancy under the provisions of Subsections (b), (c) and (d) above, in areas approved by the Department of City Planning as being non-impacted with assisted housing.
(g) As a further alternative to the provisions of Subsections (b), (c) and (f) above, the subdivider shall pay to the City and County of San Francisco an amount equal to 10 percent of the difference between the aggregated total of the proposed market rate sales prices, as indicated on the price list supplied with the application packet, and the aggregate total of the sales prices if the units were to be sold at moderate-income sales prices, as determined by the sales price formula of Section 1385 and Subsection (c) above. This payment shall be made within two years of the recordation of the Final Map.
(h) Funds collected pursuant to Subsection (g) above, shall be deposited into the Housing Development Fund, which fund is to be used for persons and households of low or moderate income.
(Amended by Ord. 45-82, App. 2/11/82; Ord. 148-88, App. 3/30/88; Ord. 257-88, App. 6/22/88; Ord. 320-08, File No. 080520, App. 12/19/2008)
SEC. 1341A. SUSPENSION OF PROVISIONS OF SECTION 1341 WITH RESPECT TO CERTAIN APPLICATIONS.
(1) The provisions of Section 1341 shall not apply to applications for initial conversion of residential units filed on or after June 1, 1988. For purposes of this Section, initial conversion shall mean the first time the parcel containing the subject units is converted to condominiums.
(2) The suspension of Section 1341 shall continue so long as the 200 unit annual conversion limit set forth in Section 1396 remains in effect.
(Added by Ord. 257-88, App. 6/22/88)
SEC. 1341B. REQUIREMENTS FOR RESALE OF CONVERTED UNITS ON OR AFTER JUNE 1, 1988.
The provisions of this Section and its application to certain properties may be affected by amendments creating Section 1344. Please consult Section 1344 in addition to this Section for Units subject to the Below Market Rate Condominium Conversion Program.
(1) This Section shall govern exclusively where the City and County of San Francisco, on or after June 1, 1988, exercises the right of first refusal under Section 1341(c) to repurchase converted units. This Section shall not apply, however, to any units which are the subject of an application for conversion filed on or after June 1, 1988.
(2) The following definitions shall apply:
(a) "Household" shall mean the person or persons who will permanently reside in the unit. Such persons shall include dependents as that term is defined in the Internal Revenue Code provided that said dependents permanently reside in the unit.
(b) "Eligible household" shall mean a household in which the combined gross income plus 10 percent of the value of all interests in real estate, notes receivable, bank accounts, stocks and bonds does not exceed the maximum allowable income for the household under Subsection (d) below at the time of purchase of the unit.
(c) "Gross income" shall mean all income from whatever source derived as provided in the Internal Revenue Code (26 USC 61), whether or not exempt from federal income tax. Such income includes, but is not limited to, the following:
(1) Compensation for services, including fees, commissions, and similar items;
(2) Gross income derived from business;
(3) Gains derived from dealings in property;
(4) Interest;
(5) Rents;
(6) Royalties;
(7) Dividends;
(8) Alimony and separate maintenance payments;
(9) Annuities;
(10) Income from life insurance and endowment contracts;
(11) Pensions;
(12) Income from discharge of indebtedness;
(13) Distributive share of partnership gross income;
(14) Income in respect of a decedent; and
(15) Income from an interest in an estate or trust.
(d) "Maximum allowable income" shall mean 120 percent of the San Francisco Standard Metropolitan Statistical Area Median Income as published annually by the U.S. Department of Housing and Urban Development. The resulting figures may be adjusted upwards as necessary, not to exceed 15 percent, by the Director the Mayor's Office of Housing in order to assure that eligible households qualify for financing by institutional lenders.
(e) "First-time buyer" shall mean a person who has not purchased any dwelling as a principal place of residence within the past three years as verified by federal tax returns for said three-year period.
(3) The Mayor's Office of Housing shall be responsible for administering the resale of and reconveyance of units converted to condominiums under Sections 1341 and 1385 of this Code, including the exercise of the City's right-of-first-refusal as to sales following the first sale of the unit referred to in Section 1341(c). The Mayor's Office of Housing shall, whenever possible, reconvey converted units to purchasers who qualify as eligible households. The Mayor's Office of Housing shall give preferential consideration to households with dependents and to first-time buyers. The Mayor's Office of Housing shall adopt a preferential rating system to accomplish this purpose.
(4) All purchasers must become owner occupants.
(Added by Ord. 257-88, App. 6/22/88; amended by Ord. 400-89, App. 11/6/89; Ord. 320-08, File No. 080520, App. 12/19/2008)
SEC. 1342. SALES PROGRAM.
The sales program shall promote affirmative action in housing. The following aspects shall be included in the sales program:
(a) All sales and sales-related personnel for the project shall be trained in affirmative action sales policy and fair housing laws.
(b) An adequate part of the sales program shall be advertising designed to attract qualified minority buyers.
(c) If a waiting list is used, there shall be a public written statement of procedure as to how it is used.
(d) The sales program and sales procedures shall not have the effect of excluding or discriminating against any person on the basis of race, religion, national origin, sex or any other basis prohibited by law.
(e) Adequate records shall be maintained by the subdivider and made available to the Director of the Human Rights Commission during the period the subdivision is controlled by the subdivider, in order to show that such an affirmative action sales program is being carried out. Said reports shall be made in accordance with the Subdivision Regulations.
SEC. 1343. RESERVED.
(Amended by Ord. 168-86, App. 5/16/86; Ord. 257-88, App. 6/22/88; Ord. 400-89, App. 11/6/89; Repealed by Ord. 320-08, File No. 080520, App. 12/19/2008)
SEC. 1344. BELOW MARKET RATE CONDOMINIUM CONVERSION PROGRAM.
As described below, this Section is intended to supersede, to the extent described in subsection (a) below, the provisions of Sections 1341, 1341B and 1385 relating to the regulation of units subject to those provisions ("Condominium Conversion BMR Units" or "BMR Units").
(a) Application.
(1) BMR Units purchased or acquired on or after the effective date of this ordinance. Unless a Section specifically applies only to BMR Units purchased before the effective date of this ordinance, every part of this Section 1344 applies to BMR Units purchased on or after the effective date of this ordinance. For these BMR Units, this Section 1344 replaces and supersedes all provisions of Sections 1341, 1341B, and 1385.
(2) BMR Units purchased or acquired before the effective date of this ordinance.
(A) This ordinance applies to all BMR Units purchased or acquired before the effective date of this ordinance as specified in each subsection and supersedes Sections 1341, 1341B and 1385 only as provided herein.
(B) Alternatives To Compliance With This Section. At the election of any Pre-Legislation Owner who qualifies, he or she may enter into a contract with the City to exercise one of the alternatives to compliance with this Section listed in Section 1344(j) below.
(3) This legislation applies to Original Subdividers as defined herein and as provided for in Section 1344(h).
(b) Definitions. For purposes of this Program the following definitions shall apply. For terms not defined below, the definitions in the Subdivision Code and the definitions in the City and County of San Francisco Residential Inclusionary Affordable Housing Program Monitoring Procedures Manual, published in 2007 under Planning Code Sections 315 et seq. and under this Section shall apply.
(1) "Annual Gross Income" shall mean gross income as defined in CCR Title 25, Section 6914, as amended from time to time, except that the Mayor's Office of Housing may, in order to promote consistency with the procedures of the San Francisco Redevelopment Agency, develop an asset test that differs from the State definition if it publishes that test in the Procedures Manual.
(2) "Base Price" shall mean the price that the current owner paid for their property or the reset price the current owner received when entering into a contract under Section 1344(i).
(3) "Below Market Rate Condominium Conversion Program" or "Program" shall mean the actions taken by the City to preserve certain low and moderate income housing through the implementation of Sections 1341 and 1385.
(4) "BMR Unit" shall mean a unit restricted as a below market rate unit under the provisions of Section 1341 or 1385.
(5) "Conditional Use" for purposes of this Ordinance means a conditional use authorization that, pursuant to the Planning Code, is required for the residential component of a project.
(6) "Conditions of Approval" shall be a set of written conditions imposed by the Planning Commission or another permit-issuing City agency or appellate body to which a project applicant agrees to adhere and fulfill when it receives a conditional use or planned unit development permit for the conversion of a BMR Unit subject to this Program.
(7) "Fair Market Value" shall mean the greater of the Unit sales price or the Appraised Value of the Unit as of the date of valuation. The owner and the City, acting through the Mayor's Office of Housing, may determine the Fair Market Value by mutual agreement without obtaining an appraisal. If the owner and the City are unable to agree on a Fair Market Value, then the "Appraised Value" of the Unit is defined as the value that would be agreed to by a seller who is willing to sell but under no particular urgent necessity or obligation to sell, and a buyer who is ready, willing and able to buy but under no particular or urgent necessity to buy, each dealing with the other with full knowledge of all the uses and purposes for which the Property is reasonably adaptable and available. For purposes of determining the Appraised Value, the Borrower shall select and pay for an appraiser who is an "MAI" member of the American Institute of Real Estate Appraisers or an "SRPA" member of the Society of Real Estate Appraisers (or any such equivalent designations). The City has the option, at City's sole expense, to select an appraiser to conduct an additional appraisal of the Property. If the two appraisals are not in agreement as to the Appraised Value of the Property, the amounts determined by the appraisals will be averaged to determine the Appraised Value of the Property for purposes of this ordinance.
(8) "First Time Homebuyer" shall mean a household who has not held an ownership interest in any residential or commercial real property in the last three years.
(9) "Household of Low Income" shall mean a household whose combined annual gross income for all members does not exceed 80 percent of Area Median Income as published by the United States Department of Housing and Urban Development (HUD) and adjusted for household size.
(10) "Household of Moderate Income" shall mean a household whose combined annual gross income for all members does not exceed 120 percent of Area Median Income as published by the United States Department of Housing and Urban Development (HUD) and adjusted for household size.
(11) "Maximum Annual Rent" shall mean the maximum rent that a Property Owner may charge any tenant occupying a BMR Unit for the calendar year as published by MOH. The maximum annual rent for a BMR Unit of the size indicated below shall be no more than 30 percent of the annual gross income for a household of low or moderate income as defined in this Section, depending on how the BMR Unit is designated, and as adjusted for the household size indicated below as of the first date of the tenancy:
Number of BedroomsNumber of Persons in Household0112233445
(12) "Mayor's Office of Housing or MOH" shall mean the Mayor's Office of Housing or its successor.
(13) "Notice of Special Restrictions" shall mean a document recorded with the San Francisco Recorder's Office for any unit subject to this Program detailing the sale and resale or rental restrictions and any restrictions on purchaser or tenant income levels included as a Condition of Approval of the principal project relating to the unit.
(14) "Original Subdivider" for purposes of this Section 1344 only shall mean a Subdivider, or its successor in interest, that was subject to Section 1341 and/or 1385 and that chose to rent the BMR Units under Section 1341(d) and has continued to rent the Units.
(15) "Owner" shall mean the record owner of the fee or a vendee in possession.
(15a) "Pre-Affidavit Owner" shall mean an owner who purchased or acquired a BMR Unit before December 1, 1992."
(15b) "Post-Affidavit Owner" shall mean an owner who purchased or acquired a BMR Unit on or after December 1, 1992 and before the effective date of this legislation;
(15c) "Pre-Legislation Owner" shall mean all owners who purchased or acquired a BMR Unit before the effective date of this legislation;
(15d) "Post-Legislation Owner" shall mean an owner who purchases or acquires a Unit on or after the effective date of this legislation;
(16) "Procedures Manual" shall mean the City and County of San Francisco Residential Inclusionary Affordable Housing Program Monitoring Procedures Manual published in 2007 under Planning Code Sections 315 et seq., with Condominium Conversion BMR Addendum, on file with the Clerk of the Board in File No. 080520. The Mayor's Office of Housing shall update the Procedures Manual from time to time as necessary in the same manner as established in Planning Code Section 315 and shall make the Procedures Manual available to the public, including on its website.
(c) Sale Price.
(1) BMR Units purchased or acquired on or after the effective date of this ordinance. The sale price of all BMR units shall be equal to the current owner's purchase price adjusted by the percentage change in HUD unadjusted area median income from the purchase date to the date of resale pricing, depending on how the BMR Unit is designated and as adjusted for household size as indicated below. In addition, a seller may recoup the cost of approved capital improvements as defined herein and special assessments that were paid by the seller, as well as the cost of using a real estate agent and Multiple Listing Service ("MLS") of up to five percent (5%) of the sale price if they follow the marketing requirements set forth in the Procedures Manual.
Number of BedroomsNumber of Persons in Household0112233445
(2) BMR Units purchased or acquired before the effective date of this ordinance. BMR Units purchased or acquired before the effective date of this ordinance and BMR Units that have not been sold by the original subdivider shall have the sale price as provided in Section 1341(c).
(3) Notwithstanding the provisions of subsection (2), the Board of Supervisors ratifies the decision by the Mayor's Office of Housing to set the sale price for certain BMR Units purchased or acquired before the effective date of this legislation at 45 Ora Way through 95 Ora Way equal to 2.5 times the annual median income for low or moderate income households, depending on how the BMR Unit is designated, and as adjusted for household size as indicated above in subsection (1).
(d) Capital improvements.
(1) BMR Units purchased or acquired on or after the effective date of this ordinance. The Capital Improvements Policy for this Program is contained in the Procedures Manual, on file with the Clerk of the Board in File No. 080520 and available on MOH's website. The Policy shall include a per unit cap of 10% of the resale price in order to maintain affordability and shall be consistent with the policy for the Residential Inclusionary Affordable Housing Program, Planning Code Sections 315 et seq.
(2) BMR Units purchased or acquired before the effective date of this ordinance. MOH shall continue to use the 1993 Capital Improvements Policy, on file with the Clerk of the Board in File No. 080520 and available on the Mayor's Office of Housing website, to implement the requirements of Section 1341(c) and shall publish the Policy on its website.
(e) Sale Procedures.
(1) Purchasers. MOH shall insure that all BMR Units conveyed under this Program are sold or transferred to households that qualify as both (A) low- or moderate-income households, depending on how the BMR Unit is designated, as defined; and (B) a First Time Homebuyer household. MOH shall give preference as provided in Subsection (5) below and shall follow the procedures set forth in the Procedures Manual.
(2) Duration and Monitoring of Affordability. As provided by Sections 1341 and 1385 BMR Units restricted under this Program are to remain affordable for the life of the BMR Unit. MOH shall insure the BMR Units remain affordable through the following mechanisms. Nothing in this legislation shall preclude the Mayor's Office of Housing from instituting additional mechanisms to insure affordability through the Procedures Manual.
(A) BMR Units purchased or acquired on or after the effective date of this legislation. MOH shall require all BMR Units subject to this Program to record a Notice of Special Restrictions with the Recorder of the City and County of San Francisco. The Notice of Special Restrictions must incorporate the procedures for resale or transfer, affordability restrictions, and other requirements of this Program and provide that the owner or tenant shall adhere to the marketing, monitoring, and enforcement procedures outlined in the Procedures Manual, as amended from time to time, in effect at the time of sale. MOH shall maintain records of the applicable Procedures Manual for each BMR Unit transferred or resold under this Program. The Procedures Manual will be referenced in the Notice of Special Restrictions for each BMR Unit.
(B) BMR Units purchased or acquired before the effective date of this legislation. The Mayor's Office of Housing has a right of first refusal. MOH shall exercise this right of first refusal at sale consistent with the provisions of Section 1341 and 1341B. In addition, for some BMR Units, a Notice of Special Restrictions (NSR) was recorded against the BMR Unit. For those BMR Units, the provisions in subsection (A) apply. For some BMR Units, the conditions of approval for the project require that an NSR be recorded, but no NSR has yet been recorded. For these BMR Units, the Planning Department and the Mayor's Office of Housing shall work with the owner to insure that the owner records an NSR and thereafter, the provisions in subsection (A) shall apply.
(3) Marketing the BMR Units. The Mayor's Office of Housing shall be responsible for overseeing and monitoring the marketing of BMR Units under this Section. In general, the marketing requirements and procedures shall encourage an open public marketing strategy and will be contained in the Procedures Manual, as amended from time to time. The Mayor's Office of Housing may develop occupancy standards for BMR Units of different bedroom sizes in the Procedures Manual in order to promote an efficient allocation of affordable units. The Mayor's Office of Housing may require in the Procedures Manual that prospective purchasers complete homebuyer education training or fulfill other requirements to adequately prepare the buyer for homeownership.
(4) Lottery: MOH shall require a general public lottery for all BMR units available for purchase.
(A) BMR Units purchased or acquired on or after the effective date of this legislation. The specific procedures for passing a BMR Unit through inheritance are contained in the Procedures Manual. All transfers through inheritance must be reported to and approved by MOH and in all cases, the heir must acknowledge and agree to the provisions of the BMR Program. The following households may inherit the right to occupy a BMR Unit: (i) a spouse or registered domestic partner, regardless of income; (ii) a child of the owner if it qualifies as a low- or moderate-income household depending on the designation of the Unit. Consistent with the provisions herein related to owners who acquire BMR Units after the effective date of this legislation, any heir must owner occupy the Unit. If the heir chooses not to occupy the Unit, the heir may market and sell the Unit at the BMR Price through a public lottery process. The heir will retain the proceeds of the sale.
(B) BMR Units purchased or acquired before the effective date of this ordinance. An owner may pass on the right to occupy a Unit through inheritance to a specific household as long as that household agrees to owner-occupy the BMR Unit. If the household chooses not to owner-occupy the Unit, it may sell the Unit at its restricted price consistent with the provisions of this legislation and receive the proceeds of the sale. All transfers through inheritance must be reported to and approved by MOH and in all cases, the heir must acknowledge and agree to the provisions of the BMR Program.
(5) Preferences. The Mayor's Office of Housing shall give first priority to an existing tenant of a BMR Unit at the time of sale if that tenant qualifies as a low or moderate income household, depending on how the BMR Unit is designated. If there is no existing qualifying tenant who wishes to purchase the BMR Unit, the Mayor's Office of Housing shall use a lottery system that gives preference to households who live or work in San Francisco and meet all other homebuyer requirements. Otherwise, it is the policy of the Board of Supervisors to treat all households equally in allocating affordable BMR Units under this Program.
(f) Rental Procedures.
(1) BMR Units purchased or acquired on or after the effective date of this ordinance. All owners purchasing or acquiring BMR Units on or after the effective date of this legislation must owner-occupy the BMR Unit. No rental of such BMR Units shall be permitted without the express written consent of MOH and under the circumstances outlined in the Procedures Manual.
(2) BMR Units purchased or acquired before the effective date of this ordinance.
Renting is permitted under the following conditions. The owner may continue to rent the BMR Unit to an income qualified tenant at an affordable rent, as defined. The owner may continue to rent to the current tenant at the current rent level until the tenant vacates, at which time the owner must notify MOH of their intent to re-rent the Unit. The owner and MOH shall follow the rental procedures as set forth in the Procedures Manual. Additionally, the owner must submit a monitoring report to the Mayor's Office of Housing (MOH), at a timeframe determined by MOH, to verify current tenant information and rent levels. For current owners only, the Board hereby supersedes the requirement of Section 1341B effective June 1, 1988 that BMR Units in this Program be owner-occupied.
(g) Other regulations: This Section 1344 sets forth the current requirements and procedures for the Condominium Conversion Below Market Rate Program ("Program"). To implement this Section, the Mayor's Office of Housing shall periodically publish a Procedures Manual containing procedures for monitoring and enforcement of the policies and procedures for implementation of this Program. The Procedures Manual must be made available upon request and on the Mayor's Office of Housing website. The Procedures Manual shall not be amended, except for an annual update of the affordability housing guidelines, which reflect updated income limits, prices, and rents, without approval of the Planning Commission or as otherwise specified herein.
The Procedures Manual in effect at the time of the most recent owner's purchase of a BMR Unit shall govern the regulation of that BMR Unit until it is transferred or sold. Any future amendments to the Procedures Manual will not be retroactive and will only apply to new owners of BMR Units, unless the owner chooses an alternative that provides otherwise under Section 1344(i).
(h) Original Subdividers. The following provisions shall apply only to Original Subdividers as defined herein.
(1) The Mayor's Office of Housing shall release any BMR rental units if an Original Subdivider can demonstrate a 20-year rental history at the affordable rate for the unit size and income designation of the Unit. A release of the restrictions under the Program will be recorded against the property. The standards used to determine rental history at the affordable rate for the unit size and income designation of the Unit are found on file with the Clerk of the Board in File No. 080520 and on the Mayor's Office of Housing website.
(2) If an Original Subdivider cannot demonstrate 20 years of rental at the affordable rate for the unit size and income designation of the Unit, the Original Subdivider may;
(A) Continue to rent the Units until a 20-year rental history at the affordable rate for the unit size and income designation of the Unit can be demonstrated. The Units shall be governed by the rules in Section 1344(f)(2). The standards used to determine rental history at the affordable rate for the unit size and income designation of the Unit are found on file with the Clerk of the Board in File No. and on the Mayor's Office of Housing website.
(B) Enter into an agreement with the City, acting through the Mayor's Office of Housing, to pay a housing replacement fee adjusted for income level and number of bedrooms as provided in the table below, or 50% of the difference between the BMR Resale Price and the Fair Market Value at the time of payment, as defined herein, whichever is less, The fee may be paid immediately upon execution of the Agreement or as a City lien, recorded through a note and deed of trust in favor of the City against the property, with a simple interest of 3%. Interest will not start accruing until the date which is 24 months from the effective date of this ordinance. Fifty percent (50%) of the difference between the BMR Resale Price and the Fair Market Value will be established at the time of repayment. Upon payment of the fee or recordation of a lien in favor of the City, a release of the restrictions under the Program will be recorded against the property. As part of any Agreement under this subsection, the Original Subdivider must waive all claims against the City for damages or other alleged injury arising from the Subdivider's participation in the Program. The fee shall be as follows:
Unit SizeModerate Income Designation
(120% AMI)Low Income Designation
(80% AMI)1-Bedroom or Smaller$150,000*$200,000*2-Bedroom$250,000*$300,000*3-Bedroom$350,000*$400,000*4-Bedroom$450,000*$500,000*
(i) [Expired.]a
(j) Funds. Any funds received by the City through payments made in accordance with subsections (h) and (i) shall be deposited in the Mayor's Home Ownership Assistance Loan Fund, created under Administrative Code Section 10.100-108 and use of the funds shall be governed by that section.
(Added by Ord. 320-08, File No. 080520, App. 12/19/2008)
aEditor's Note:
Former division (i) ("Alternatives to Compliance with this Section") expired by operation of its sunset clause on 1/18/2011.
ARTICLE 6:
IMPROVEMENT REQUIREMENTS
Sec. 1345.General.Sec. 1346.Improvement Plans.Sec. 1347.Construction.Sec. 1348.Failure to Complete Improvements Within Agreed Time.Sec. 1349.Inspection and Testing Fees.Sec. 1350.Fees for Construction of Planned Facilities.
SEC. 1345. GENERAL.
(a) The subdivider shall provide for the construction and installation of all improvements in the subdivision.
(b) The subdivider shall file an improvement bond whenever all such work has not been completed prior to the filing of the Final Map.
SEC. 1346. IMPROVEMENT PLANS.
(a) Prior to filing of the Final Map, the subdivider's engineer shall submit any required improvement plans to the City Engineer for approval.
(b) Improvement plans shall be prepared under the direction of a registered civil engineer.
(c) Improvement plans shall conform to the Subdivision Regulations regarding format, size and contents.
(d) Any specifications supplementing the Standard Specifications shall be considered a part of the improvement plans.
(e) Within 14 days after submittal by the subdivider's engineer the City Engineer shall return to the subdivider's engineer a set of the submittal improvement plans noting thereon his approval, disapproval or conditional approval of said plans. This time limit may be extended by mutual agreement.
SEC. 1347. CONSTRUCTION.
(a) No construction shall commence until the improvement plans have been submitted to the City Engineer and have been approved by him.
(b) Construction of improvements which are to be accepted by the City for maintenance shall be subject to inspection by the City Engineer.
(c) Any work done by the subdivider prior to approval of the improvement plans, including changes thereto, or without the inspection and testing required by the City Engineer is subject to rejection. Such work shall be deemed to have been done at the risk and peril of the subdivider.
(d) Installation of Underground Facilities. All underground facilities including sewerage and drainage facilities and excepting survey monuments installed in streets, alleys or pedestrian ways shall be constructed prior to the surfacing of such street, alley or pedestrian way. Service connections for all underground utilities and sewers shall be laid to such length as will obviate the necessity for disturbing the street, alley or pedestrian way improvements when service connections are completed to properties in the subdivision.
SEC. 1348. FAILURE TO COMPLETE IMPROVEMENTS WITHIN AGREED TIME.
The provisions of Section 206(b) of the Public Works Code apply to this Article regarding extensions of time and liquidated damages when improvements are not completed within the agreed time.
SEC. 1349. INSPECTION AND TESTING FEES.
(a) The costs of inspecting the construction of improvements under Section 1347(b) of this Code shall be paid by the subdivider.
(b) The costs of testing the materials incorporated in the improvements under Section 1347(b) of this Code shall be paid by the subdivider.
SEC. 1350. FEES FOR CONSTRUCTION OF PLANNED FACILITIES.
(a) As a conditions for approval of a Final Map, fees shall be required to defray the actual or estimated construction or reconstruction costs of the following planned facilities to serve the general area in which said subdivision is located:
(1) Sanitary and drainage facilities;
(2) Bridges; and
(3) Major thoroughfares.
(b) Such fees shall equal the subdivision's prorated share of the actual or estimated construction costs of said facilities.
ARTICLE 7:
FINAL MAPS AND PARCEL MAPS
Sec. 1355.Time Limit for Submittal.Sec. 1356.Final Map.Sec. 1357.Certificates on Final Map.Sec. 1358.Preliminary Soil Report.Sec. 1359.Parcel Map.Sec. 1360.Check Prints.Sec. 1361.Map Check.Sec. 1362.Filing.Sec. 1363.Submittal to Board.Sec. 1364.Recordation.
SEC. 1355. TIME LIMIT FOR SUBMITTAL.
Within 18 months after the approval of the Application Packet, unless such time has been extended, the Final Map or Parcel Map shall be filed with the County Surveyor.
(Amended by Ord. 284-04, File No. 041355, App. 12/14/2004)
SEC. 1356. FINAL MAP.
(a) The Final Map shall consist of the Title Sheets and Map Sheets.
(b) The Title Sheets shall contain the following data:
(1) The title, consisting of the name of the subdivision and the location;
(2) A general description of all the property being subdivided by references to recorded deeds or to recorded maps;
(3) Certificates, affidavits and acknowledgements; and
(4) General information including a key map when there is more than one Map Sheet.
(c) The Map Sheets shall contain the following data, in sufficient detail so that the sale, transfer and description of real property may be accomplished by reference to the Final Map and that all public facilities, properties and easements may be determined as to location, extent and condition:
(1) Title;
(2) Explanatory and Description Notes; and
(3) Map.
(d) The Final Map shall conform to the requirements of Chapter 2, Article 2 of SMA and to the Subdivision Regulations regarding detailed format and contents.
SEC. 1357. CERTIFICATES ON FINAL MAP.
(a) In addition to the certificates required by SMA, the following certificates shall be on the Final Map.
(1) City Attorney's Certificate;
(2) Advisory Agency's Certificate; and
(3) A Certificate of Agreement. Whenever the conditional approval of the Application Packet includes conditions which are to be met after the recordation of the Final Map, a certificate signed by the subdivider agreeing to perform said conditions, which are listed on the certificate, shall be required.
(Amended by Ord. 337-79, App. 7/6/79)
SEC. 1358. PRELIMINARY SOIL REPORT.
(a) A Preliminary Soil Report, prepared by a soils engineer or a registered engineering geologist, and based upon test borings and excavations done at the subdivision site, shall contain the following elements:
(1) The specific geologic and soil conditions within and immediately adjacent to the subdivision;
(2) Indication and delineation of critically expansive soils or other soil problems which, if not corrected, may lead to defects in structures, buildings and other improvements;
(3) Report on the suitability of the earth material for the construction of stable embankments and excavation slopes, together with recommended construction procedures needed to obtain the required stability; and
(4) Report on slides, springs and seepage conditions, faults and erosion problems, together with recommendations for correction of any problems or hazards presented by such conditions.
SEC. 1359. PARCEL MAP.
(a) The requirements of Subsection (c) of Section 1356 of this Code shall apply to Parcel Maps.
(b) The Parcel Map shall conform to the requirements of Chapter 2, Article 3 of SMA and to the Subdivision Regulations regarding detailed format and contents.
(c) In the case of Conversions where a Tentative Map is not required, the requirements of Section 1314 and the requirements of Article 9 on Conversions shall apply, provided that hearings as provided in Sections 1313 and 1332 shall not be required, and provided further that Article 9 shall not be applied to two-unit buildings where both units are owner-occupied for one year prior to the application for Conversion.
(d) In addition to the requirements of Subsection (c), the owners of record of a two-unit building conversion that qualify for the exemption from Article 9 must certify under penalty of perjury and the Department must verify with the Rent Stabilization and Arbitration Board, and with the Human Rights Commission as applicable, that since November 16, 2004, no eviction as defined in San Francisco Administrative Code Section 37.9(a)(8) ñ (14) of a senior, disabled person, or catastrophically ill tenant as defined below has occurred, or if an eviction has taken place under Administrative Code Section 37.9(a)(11) or (14), that the original tenant reoccupied the unit after a temporary eviction. For purposes of this Subsection a "senior" shall be a person who is 60 years or older and has been residing in the unit for 10 years or more at the time of the lottery; a "disabled" tenant is defined for purposes of this Subsection as a person who is disabled within the meaning of Title 42 U.S.C. Section 12102(2)(A); and a "catastrophically ill" tenant is defined for purposes of this Subsection as a person who is disabled as defined above, and who is suffering from a life threatening illness as certified by his or her primary care physician.
(e) If the owners of record cannot satisfy the requirements of Subsection (d), then the owners of record shall comply with Article 9, including its Section 1396.1(g)(3), prior to submitting an application for Conversion.
(f) If the Department determines that an applicant has knowingly provided false material information under Subsection (d) above, the Department shall immediately deny the application, or if the applicant has submitted an application for conversion, shall immediately deny the application for conversion. Moreover, the Department, the Director, or other authorized person or entity may also enforce the provisions of this Subsection under Section 1304 or any other applicable provision of law as warranted.
(Amended by Ord. 427-85, App. 9/12/85; Ord. 426-89, App. 11/22/89; Ord. 161-01, File No. 010891, App. 7/9/2001; Ord. 281-04, File No. 041353, App. 12/1/2004; Ord. 283-08, File No. 081235, App. 12/5/2008; Ord. 320-08, File No. 080520, App. 12/19/2008)
SEC. 1360. CHECK PRINTS.
(a) Prior to filing of the Final Map or Parcel Map, the subdivider's engineer shall submit to the County Surveyor:
(1) Prints of the Final Map sheets or the Parcel Map sheets;
(2) A preliminary title report;
(3) Traverse sheets, showing the mathematical closure of the exterior boundaries around the subdivision, of each lot boundary in the subdivision, and of boundaries of easements and of dedicated rights-of-way;
(4) The Preliminary Soil Report, unless it has been waived; and
(5) If the subdivision is subject to City Planning Code Section 313.5, certification from the Director of City Planning or his or her designee that the subdivider has complied with the requirements of City Planning Code Section 313.5(e) and the guidelines adopted by the Director of City Planning.
(Amended by Ord. 105-90, App. 3/23/90; Ord. 284-04, File No. 041355, App. 12/14/2004)
SEC. 1361. MAP CHECK.
(a) The County Surveyor shall check the prints of the Final Map or the Parcel Map to determine if it substantially conforms to the approved Tentative Map, this Code and SMA.
(b) If the prints do not substantially conform to the approved Tentative Map, the County Surveyor shall refer a set of said prints to City Planning for its review and recommendation.
(c) The County Surveyor shall send copies of the Preliminary Soil Report to BBI for evaluation.
(d) Within 14 days after submittal of 28 days if referral to City Planning is required under Subsection (b) of this Section, the County Surveyor shall return a set of the submitted prints, noting therein any required corrections, to the subdivider's engineer.
(Amended by Ord. 284-04, File No. 041355, App. 12/14/2004)
SEC. 1362. FILING.
(a) After the check prints have been approved by the County Surveyor, the subdivider shall file with the County Surveyor:
(1) The Final Map or Parcel Map, corrected to its final form, together with the copies specified in the Subdivision Regulations;
(2) The bonds that may be required;
(3) When applicable, deeds conveying all streets in the subdivision to the City and deeds granting easements for sewers, drains and pedestrian walkways which are not dedicated on the Map;
(4) Evidence of title;
(5) The recording fee and evidence that all fees required by this Code have been paid; and
(6) The corrected Preliminary Soil Report, when required.
(Amended by Ord. 284-04, File No. 041355, App. 12/14/2004)
SEC. 1363. SUBMITTAL TO BOARD.
(a) After obtaining the required certificates on the Final Map, or on the Parcel Map when dedications are included therein, the County Surveyor shall submit said Map and the other documents to the City Engineer and Director.
(b) After determining that all requirements of SMA and this Code have been met, the City Engineer and Director shall endorse the map and file the same, together with the other documents, with the Clerk.
(Amended by Ord. 284-04, File No. 041355, App. 12/14/2004)
SEC. 1364. RECORDATION.
(a) After approval of a Final Map or Parcel Map by the Board, the Clerk shall file said map with the Recorder.
(b) After signing a Parcel Map, when no dedications are included therein, the County Surveyor City Engineer shall file said map with the Recorder.
(c) No Final Map or Parcel Map for a subdivision governed by this Code shall be recorded unless said Map has been approved by the County Surveyor or by the Board as required herein.
(Amended by Ord. 284-04, File No. 041355, App. 12/14/2004)
ARTICLE 8:
BONDS
Sec. 1370.Improvement Bonds.Sec. 1371.Monument Bonds.Sec. 1372.Payment of Taxes and Liens.
SEC. 1370. IMPROVEMENT BONDS.
(a) As a guarantee of good faith to furnish, install and construct the required improvements, the subdivider shall furnish a corporate surety bond or other acceptable security deposit for an amount not less than 50 percent of the estimated cost of said improvements.
(b) As a guarantee of payment for the labor, materials, equipment and services required to furnish, install and construct said improvements, the subdivider shall furnish a corporate surety bond or other acceptable security deposit for an amount not less than 50 percent of the estimated cost of said improvements.
SEC. 1371. MONUMENT BONDS.
As a guarantee of good faith to furnish and install the required survey monuments and to pay the subdivider's engineer or surveyor for said work, the subdivider shall furnish a corporate surety bond or other acceptable security deposit for an amount equal to 100 percent of the estimated cost of such work. Such work shall consist of satisfactorily furnishing and installing the said survey monuments and of accurately fixing exact survey points thereon.
SEC. 1372. PAYMENT OF TAXES AND LIENS.
Prior to recordation of a Final Map or Parcel Map, the subdivider shall comply with all applicable provisions governing taxes and assessments as set forth in Sections 66492, 66493 and 66494 of the SMA and any amendments thereto.
(Added by Ord. 427-85, App. 9/12/85)
ARTICLE 9:
CONVERSIONS
Sec. 1380.General.Sec. 1381.Additions to Application Packet.Sec. 1382.Exceptions from Application Packet.Sec. 1383.Conformity of Housing, Building and Planning Codes.Sec. 1385.Preservation of Low and Moderate Income Housing.Sec. 1385A. Suspension of Provisions of Section 1385.Sec. 1386.Denial of Tentative Map.Sec. 1387.Right of Tenants to Contract for the Purchase of Unit.Sec. 1388.Tenant Intent to Purchase.Sec. 1389.Temporary Relocation of Tenants.Sec. 1390.Rent Increase Limitation.Sec. 1391.Vacation of Units: Statutory Notice of Eviction Required; Extension of Leases for Elderly Tenants.Sec. 1392.Subdivider to Provide Moving Expenses.Sec. 1393.Subdivider to Provide Relocation Assistance.Sec. 1394.Time Limits for Reapplication.Sec. 1395.Time Limits for Sale.Sec. 1396.Annual Conversion Limitation.Sec. 1396.1.Annual Conversion Limitation Lottery Procedures.Sec. 1396.2.Prohibition on Condominium Conversions for Certain Buildings.Sec. 1396.3.Annual Conversion Limitation Lottery Procedures Based on Seniority of Participation.Sec. 1396.4.Condominium Conversion Fee and Expedited Conversion Program.Sec. 1396.5.Suspension of the Lottery Pending Production of Replacement Units for Expedited Conversion Units.Sec. 1396A.Low and Moderate Income Housing Review.Sec. 1397.Certification of Exempt Conversions.
SEC. 1380. GENERAL.
The Sections of this Article 9 modify the applicable provisions of Article 3 through 8, inclusive, of this Code in the case of Conversions.
SEC. 1381. ADDITIONS TO APPLICATION PACKET.
(a) Application Packets for Conversions shall contain the following information in addition to that required by previous provisions of this Code:
(1) A building history detailing the date of construction, major uses since construction, major repairs since construction, current ownership of buildings and underlying land, and the proposed ownership upon conversion;
(2) A report of residential record ("3-R Report"), obtained from the Bureau of Building Inspection;
(3) A rental history detailing for each unit the size in square feet, the number of bedrooms, the current or last rental rate, the monthly rental rate for the preceding five years, the monthly vacancy over the preceding three years, and the names of the current tenant or tenants for each unit, including the names of all tenants aged 62 or older or permanently disabled who have resided in the building over the past three years to the extent that such information is known or can be made known to the subdivider;
(4) A building condition and sales program report including:
(A) A building inspector's report made by either the Bureau of Building Inspection or a certified engineer or architect acceptable to the Bureau of Building Inspection; with said report to contain any Housing Code violations and incipient or potential deficiencies including electrical, plumbing and boiler and energy conservation requirements; where a building to be converted to condominiums is two years old or less, a Certificate of Completion issued by the Bureau of Building Inspection may be accepted in lieu of a building inspector's report;
(B) A statement of repairs and improvements and projected cost of same the subdivider plans to make before conveyance of the units by the subdivider;
(C) A list of the proposed sales prices for each unit including an indication as to whether the unit will be sold in fee simple or a leasehold interest, the estimated condominium association dues, the rentals if a leasehold interest is proposed, and a statement of the proposed sales program, particularly plans to promote affirmative action in housing; this information to be used to assure compliance with the requirements of this Code and SMA. The sales prices listed for each unit shall remain in effect and shall not be increased by the subdivider until the unit is sold to the tenant or until the tenant has waived his or her right of first refusal and the unit is made available to the general public, provided that the sales price may be increased by the following amounts: (1) The percentage increase in the Housing Component of the "Bay Area Consumer Price Index, U.S. Dept. of Labor," above the price index in existence as of the date the application is filed; and (2) the pro rata actual cost of any repairs or improvements made by the applicant in addition to those set forth in the application, pursuant to Section 1381(a)(4)(B). During this period of time, any reduction in price of any one unit from the price level indicated on the statement shall not be made without comparable reductions to the prices of all other units;
(D) A summary of tenant contacts including all meetings held with tenants and all information provided to them about the project and their own options; a list of all tenants who have expressed a desire to buy their own units; proposed methods of dealing with those tenants who do not plan to buy, especially those aged 62 or older, the permanently disabled and families with children; and any proposed program for relocation services;
(5) The survey information obtained pursuant to Section 1388 of this Code and as further required in the Subdivision Regulations;
(6) Notice to tenants:
(A) Within five days of filing an application with the Department of Public Works for condominium conversion subdivision, the subdivider shall give written notice concerning the proposed conversion to all lessees and tenants. If five or more units are involved, said notice shall advise all lessees and tenants that a public hearing concerning the application for conversion will be held and that notice of said hearing will be given to all lessees and tenants by the City Planning Commission. Said notice shall contain all the information as required in Subsections 4 and 8 of this Section. Said notice shall contain a description of the rights of tenants as herein provided, including the right of first refusal to purchase the unit, the right to attend and be heard at the public hearing, the right to receive relocation assistance and benefits, the right of all tenants to extend occupancy for a period of from one to three years depending upon length of prior occupancy, the right of elderly and disabled tenants to a lifetime lease, and the prohibition against rent increases during the process of conversion;
(B) Notice of the proposed conversion must be given to all persons or parties who lease or reside in any units which are proposed for conversion subsequent to approval of the application for conversion;
(C) The application packet for conversion shall include a statement that such notice has been given, and will continue to be given to any lessees or tenants subsequent to the submission of the application packet for conversion;
(7) A copy of the purchase agreement to be used for the project;
(8) Copies of all management documents submitted to the California State Department of Real Estate.
(b) When neither new buildings nor major additions to existing facilities are indicated in the Tentative Map, a Statement of Known Soil and Geologic Conditions may be substituted for the required Soil and Geologic Reconnaissance Report. Said Statement shall be prepared by the engineer or surveyor who prepares the Tentative Map and shall contain the following information as taken from the latest U.S. Geologic Maps:
(1) Soil deposits;
(2) Rock formations;
(3) Faults;
(4) Groundwater; and
(5) Landslides.
(Amended by Ord. 72-82, App. 2/19/82)
SEC. 1382. EXCEPTIONS FROM APPLICATION PACKET.
(a) Application Packets for Conversions shall have deleted the following information required by provisions of this Code:
(1) Except as otherwise required by other Sections of this Article 9, the statements required by Sections 1323(a), paragraphs 1, 2, and 3 shall be deleted.
(2) Except in the case of a vesting tentative map, the environmental evaluation data required by Section 1323(b) shall be deleted.
(Amended by Ord. 576-85, App. 12/27/85)
SEC. 1383. CONFORMITY OF HOUSING, BUILDING AND PLANNING CODES.
As a condition of Final Map approval, the subdivider must demonstrate that all applicable provisions of the City's Housing, Building and City Planning Codes have been met and that all violations of such codes have been satisfactorily corrected or, upon the approval of the Director, and prior to recordation of the Final Map or Parcel Map, funds have been adequately escrowed or bonded to assure completion of such corrective work prior to the closing of escrow of any unit in the project.
SEC. 1385. PRESERVATION OF LOW AND MODERATE INCOME HOUSING.
The provisions of this Section and its application to certain properties may be affected by amendments creating Section 1344. Please consult Section 1344 in addition to this Section for Units subject to the Below Market Rate Condominium Conversion Program.
The Department of City Planning shall determine whether any units to be converted are part of the City's low and moderate income housing stocks. If the Department of City Planning determines that any unit to be converted is part of the City's low or moderate income housing stocks, then the price of the unit upon conversion shall not be such as to remove if effectively from said low or moderate income housing stocks and shall be no greater than 2.5 times the highest income level for low and moderate income households as defined in Section 1309(e) and (f), and as adjusted for household size according to the size of the dwelling, as set forth in Sections 1309(1) and (m). The resulting sales prices established pursuant to this formula may be increased consistent with any increases in the housing component of the "Bay Area Cost of Living Index, U.S. Dept. of Labor," during the period between the most recent establishment of the above highest income levels and the date of commencement of sales. If the tenant does not exercise the contract right to purchase the unit which has been determined to be part of the low or moderate income housing stock, then the unit shall be made available exclusively for purchase by qualified households of low or moderate income on first-come, first-served basis for a period of not less than 12 months from the date of the decision by the tenant not to exercise the contract right to purchase or, if there is no tenant, from the date of issuance of the State Department of Real Estate Final Subdivision Public Report, at a price no greater than that allowed under the low and moderate income price guidelines set forth above. Priority, however, shall be given to low or moderate income households who can demonstrate that they had previously relocated from a dwelling in a building which has been approved for condominium conversion. The alternatives for low and moderate income occupancy set forth in Section 1341 shall not apply, except for those additional number of units which may be required pursuant to Section 1341(a) to be made available for rental or for purchase by households of low or moderate income. In cases where no low or moderate income household has purchased or contracted to purchase such unit within this 12-month period, after good-faith efforts by the subdivider, the subdivider may offer the unit to the general public with no price limitation.
(Amended by Ord. 45-82, App. 2/11/82; Ord. 257-88, App. 6/22/88; Ord. 320-08, File No. 080520, App. 12/19/2008)
SEC. 1385A. SUSPENSION OF PROVISIONS OF SECTION 1385.
(1) The provisions of Section 1385 shall not apply to applications for initial conversion of residential units filed on or after June 1, 1988. For purposes of this Section initial conversion shall mean the first time the parcel containing the subject units is converted to condominiums.
(2) The suspension of Section 1385 shall continue so long as the 200 unit annual conversion limit set forth in Section 1396 remains in effect.
(Added by Ord. 257-88, App. 6/22/88)
SEC. 1386. DENIAL OF TENTATIVE MAP.
When the City Planning Commission determines that vacancies in the project have been increased, or elderly or permanently disabled tenants displaced or discriminated against in leasing units, or evictions have occurred for the purpose of preparing the building for conversion, or if rents in the project over the previous 18 months preceding the date of filing the application have been increased substantially greater than any increase in the residential rent component of the "Bay Area Cost of Living Index, U.S. Dept. of Labor," (except for increases reasonably related to construction of Code-required capital improvements directly related to Code enforcement, or to recoup the costs thereof), or when the City Planning Commission determines that the subdivider has knowingly submitted incorrect information (to mislead or misdirect efforts by agencies of the City and County of San Francisco in the administration of this Code), the Tentative Map shall be disapproved and the subdivider may not reapply for 18 months from the date of denial. In evaluation of the current vacancy level under this Section, the increase in rental rates for each unit over the preceding five years and the average monthly vacancy rate for the project over the preceding three years shall be considered. In the evaluation of displacement of elderly tenants any such displacements over the preceding three years, and the reasons therefor, shall be considered.
(Amended by Ord. 86-81, App. 2/20/81)
SEC. 1387. RIGHT OF TENANTS TO CONTRACT FOR THE PURCHASE OF UNIT.
(a) The present tenant or tenants at the date of filing of the application for a Tentative Map of any unit to be converted or, in the event of a voluntary vacation, or eviction for cause, the tenant or tenants in occupancy at the date of issuance of the State Department of Real Estate's Final Subdivision Public Report shall be given a nontransferable contract right to purchase the unit occupied at a price no greater than the price offered to the general public.
(b) The right of contract for purchase of the unit shall extend for 60 days from the date the unit is initially offered to the tenant in writing by the subdivider. The period of acceptance of the offer may be extended if such an agreement is executed in writing by the subdivider and tenant, provided that the tenant may cancel the purchase agreement if the unit is not conveyed to that tenant within six months of the agreement to purchase.
(c) The offer of sale may not be extended by the subdivider to the tenant until the recordation of the Final Map or Parcel Map, and until the issuance of the State Department of Real Estate's Final Subdivision Public Report.
SEC. 1388. TENANT INTENT TO PURCHASE.
No application for conversion shall be approved unless there are substantial numbers of tenants who have indicated their intent to purchase their rental unit. This intent shall be evidenced by the submittal in writing by no less than 40 percent of the tenants of intent to purchase forms, as provided by the Department of Public Works. In obtaining or soliciting intent to purchase forms from tenants, subdividers shall comply with any restrictions set forth in the California Business and Professions Code and Regulations of the Real Estate Commissioner. In calculating the total number of units necessary to satisfy this provision, there shall be included in the 40 percent requirement any units in which the occupant qualified for and has expressed an intent to obtain a renewable lifetime lease pursuant to Section 1391(c).
Any tenant intent to purchase forms obtained by way of an inducement of the subdivider to provide benefits to that tenant beyond those established by the Code shall be so identified and the specific representations of the subdivider shall be set forth in detail. All such intent to purchase forms shall become a matter of public record and the subdivider shall be required to comply with his or her representations as conditions of approval.
The intent to purchase forms, once signed by a tenant, shall be irrevocable by said tenant, for purposes of compliance with this Section, provided, however, that the Director shall invalidate any such form upon a determination that the subdivider has used coercion, fraud, duress, misrepresentation or threat in connection with obtaining or soliciting such form.
(Amended by Ord. 161-01, File No. 010891, App. 7/9/2001; Ord. 281-04, File No. 041353, App. 12/1/2004)
SEC. 1389. TEMPORARY RELOCATION OF TENANTS.
If temporary relocation of any tenant is necessary for renovation of a unit between the date of submission of the Tentative Map and the date established for permanent relocation, then the subdivider shall find equivalent substitute housing for that tenant for the period of renovation, and shall pay to that tenant any additional cost of the substitute housing. Any tenant temporarily relocated shall have the right to return to his or her former unit until the expiration of all rights granted to such tenant as provided in this Code.
SEC. 1390. RENT INCREASE LIMITATION.
The rent to tenants at the time of filing the application for conversion shall not be increased for the period between the filing of the application until relocation takes place or until the subdivision is denied or withdrawn, except that such period shall not exceed two years. At the end of such period, and for one-year period thereafter, any increase in rent shall not exceed the proportionate increase in the residential rent component of the "Bay Area Cost of Living Index, U.S. Dept. of Labor," over that period of time, provided, that the rental increase provisions of this section shall be operative only in the absence of other rent increase or arbitration laws. In cases of hardship due to unusual circumstances to the subdivider, or in cases where a rent increase authorized herein is considered by the tenant to be not consistent with increases in the residential rent component of the "Bay Area Cost of Living Index, U.S. Dept. of Labor," either a subdivider or a tenant may request relief under this Section from the Director of Public Works or his or her designee. In considering the reasonableness of a rent increase, the Director shall consider the current rent paid for comparable units in comparable areas.
SEC. 1391. VACATION OF UNITS: STATUTORY NOTICE OF EVICTION REQUIRED; EXTENSION OF LEASES FOR ELDERLY TENANTS.
(a) Except for tenants availing themselves of the lease option set forth below, each nonpurchasing tenant shall be given 120 days from the date of receipt of notification from the subdivider of the intent to convert (as required in California Government Code Section 60427.1) to find substitute housing and to relocate. The subdivider shall not transmit such notice, however, prior to recordation of the Final Map or Parcel Map. If any tenant has a lease to occupy a unit in which the term of said lease extends longer than the 120-day period provided herein, such tenant shall not be evicted except for cause until the expiration of such lease.
Each nonpurchasing tenant shall be given the option of entering into or renewing a lease agreement to occupy said tenant's dwelling unit for period of up to one year following the date of approval of the Final Map; the rental charge and rights and obligations of the parties during said period shall be in accordance with Subsection (c) of this Section.
(b) Upon expiration of all such time requirements and upon satisfaction of any conditions required for conformity with the Master Plan, including the recordation of the Final Map or Parcel Map, the tenant shall also be entitled to the statutory period for notice of eviction as provided in California Civil Code Section 1946.
This provision shall not affect the requirement that a tenant receive relocation services and reimbursements for moving expenses provided that the tenant request and be eligible for said services as provided in Section 1392 and Section 1393, and provided that the time for relocation assistance not extend beyond the 120-day period of the notice of intent to convert or any lease extension as required in Subsection (a) of this Section.
(c) No subdivider or subsequent condominium unit owner shall refuse to renew a lease or extend a rental agreement to any nonpurchasing tenant aged 62 or older at the time of recordation; of the Final Map or Parcel Map, or any tenant permanently disabled. Any extended leases or rental agreements made pursuant hereto shall expire only upon the death or demise of such tenant or the last surviving member of the tenant's household, provided such surviving member is related to the tenant by blood or marriage and is aged 62 or older at the time of death or demise of such tenant, or at such time as the tenant voluntarily vacates the unit after giving due notice of such intent to vacate. Each lease shall contain a provision allowing the tenant to terminate the lease and vacate the unit upon 30 days' notice. Rent charged during the term of any extended lease or rental agreement pursuant to the provisions of this Section shall not exceed the rent charged at the time of filing of the application for conversion, plus any increases proportionate to the increases in the residential rent component of the "Bay Area Cost of Living Index, U.S. Dept. of Labor," provided that the rental increase provisions of this Section shall be operative only in the absence of other applicable rent increase or arbitration laws. This Section shall not alter or abridge the rights or obligations of the parties in performance of their covenants, including but not limited to the provision of services, payment of rent or the obligations imposed by Sections 1941, 1941.1 and 1941.2 of the California Civil Code. There shall be no decrease in dwelling unit maintenance or other services historically provided to such units and such tenants.
SEC. 1392. SUBDIVIDER TO PROVIDE MOVING EXPENSES.
(a) The subdivider shall bear the cost of moving expenses of any tenant who relocates from the building to be converted. The tenant, at his or her option, shall be reimbursed either for the actual moving expenses up to a maximum of $1,000, or for the fixed amount allowed by the moving expense schedule of the Central Relocation Services agency. In the event the unit is occupied by a subtenant under an agreement with the tenant, the moving expense reimbursement herein provided shall be shared proportionately by both parties in relation to the actual costs of moving the property of each party.
(b) Availability for such assistance shall be limited to the 120-day period or the period of any lease extension as provided in Section 1391(a) unless a contrary agreement is reached by the subdivider and tenant; provided that tenants aged 62 years or older, or permanently disabled whose tenancy is extended pursuant to Section 1391(c), would be eligible for such assistance at such time that such tenant elects to voluntarily vacate the unit and gives due notice therefor.
(c) Those parties who lease a unit subsequent to the date of filing the application for conversion shall not be eligible to receive assistance provided in this Section unless such an agreement is made between the subdivider and prospective tenant.
SEC. 1393. SUBDIVIDER TO PROVIDE RELOCATION ASSISTANCE.
(a) Any tenant who requests assistance in finding relocation housing shall be referred to the Central Relocations Services Agency of the City and County of San Francisco, or, with the mutual consent of the tenant and subdivider, such assistance may be provided by the subdivider or a real estate brokerage firm selected by the subdivider. The subdivider shall bear any costs to the tenant of such assistance in finding relocation housing.
(b) Availability for such assistance shall be limited to the expiration of the 120-day period or the period of any lease as provided in Section 1391(a) and (c), unless a contrary agreement is reached by the subdivider and tenant.
(c) Those parties who lease a unit subsequent to the date of filing the application for conversion shall not be eligible to receive assistance provided in this Section unless such an agreement is made between the subdivider and prospective tenant.
SEC. 1394. TIME LIMITS FOR REAPPLICATION.
(a) In the event an application for condominium conversion subdivision is withdrawn by the applicant, said application may not be resubmitted for six months from the date of withdrawal.
(b) In the event an application for condominium conversion subdivision is denied, or a Tentative Map is disapproved, the applicant therefor may not submit a new application for the same building for one year from the date of such denial, except that this period may be extended pursuant to the provisions of Section 1386.
SEC. 1395. TIME LIMITS FOR SALE.
All units approved for conversion shall be offered for sale to the tenants within one year of the issuance of the State Department of Real Estate's Final Subdivision Public Report.
SEC. 1396. ANNUAL CONVERSION LIMITATION.
(a) This Section governing annual limitation shall apply only to conversation of residential units. This Section also is subject to the limitations established by Section 1396.5's suspension of the lottery.
(b) Applications for conversion of residential units, whether vacant or occupied, shall not be accepted by the Department of Public Works, except that a maximum of 200 units as selected yearly by lottery by the Department of Public Works from all eligible applicants, may be approved for conversion per year for the following categories of buildings:
(1) Buildings consisting of four units in which at least three of the units have been occupied continuously by the applicant owners of record as their principle place of residence for three years prior to the date of registration for the lottery as selected by the Director;
(2) Buildings consisting of three units in which at least two of the units have been occupied continuously by the applicant owners of record as their principle place of residence for three years prior to the date of registration for the lottery as selected by the Director;
(3) Buildings consisting of two units in which at least one unit has been occupied continuously by the applicant owner of record as his or her principle place of residence for three years prior to the date of registration for the lottery as selected by the Director;
(4) Buildings consisting of five or six units that were subject to the requirements of Section 1396.2(f) on or before April 15, 2013 where (A) no further evictions as set forth in Section 1396.2 have occurred in the building after April 15, 2013, (B) the building and all applicants first satisfied all the requirements for conversion under Section 1396.2(f) after January 24, 2020 and before resumption of the lottery under in accordance with the terms of Section 1396.5; and (C) 50 percent or more of the units have been occupied continuously by owners of record as their principle place of residence for ten years prior to the date of registration for the lottery as selected by the Director. Applicants for such buildings must apply for the lottery within five years of the resumption of the lottery under Section 1396.5(c) and remain eligible until selected;
(5) If the Expedited Conversion program under Section 1396.4 has been suspended until 2024 as a result of a successful lawsuit against the City and County of San Francisco challenging Section 1396.4(g) or 1396.5: (A) buildings consisting of five or six units that participated in but were not selected for the 2012 or 2013 condominium conversion lottery in which 50 percent or more of the units have been occupied continuously by the applicant owners of record for no less than six years prior to the date of registration for the lottery as selected by the Director or (B) buildings consisting of five or six units in which: (i) 50 percent or more of the units have been occupied continuously by the applicant owners of record for no less than six years prior to the date of registration for the lottery as selected by the Director and (ii) the eligible applicant owners of record have a fully executed written agreement as of April 15, 2013 in which the owners each have an exclusive right of occupancy to individual units in the building to the exclusion of the owners of the other units. Applicants for buildings identified in this Subsection must first apply for the lottery within five years of the resumption of the lottery under Section 1396.5(c) and remain eligible until selected; or
(6) Community apartments as defined in Section 1308 of this Code, which, on or before December 31, 1982, met the criteria for community apartments in Section 1308 of this Code and which were approved as a subdivision by the Department of Public Works on or before December 31, 1982, and where 75 percent of the units have been occupied continuously by the applicant owners of record for three years prior to the date of registration for the lottery as selected by the Director.
(c) The conversion of a stock cooperative as defined in Section 1308 of this Code to condominiums shall be exempt from the annual limitation imposed on the number of conversions in this Section and from the requirement to be selected by lottery where 75 percent of the units have been occupied for the lottery as selected by the Director.
(d) No application for conversion of a residential building submitted by a registrant shall be approved by the Department of Public Works to fill the unused portion of the 200-unit annual limitation for the previous year.
(e) (1) Any application for a condominium conversion submitted after being selected in the lottery must meet the following requirements applicable to Subdivision Code Article 9, Conversions: Sections 1381, 1382, 1383, 1386, 1387, 1388, 1389, 1390, 1391(a) and (b), 1392, 1393, 1394, and 1395.
(2) Any building subject to Section 1396.2 shall have all applicant(s) satisfy all the requirements for conversion under Section 1396.2(f) in order be eligible to convert pursuant to this Section 1396; provided, however, that any building subject to the prohibition on conversion under Section 1396.2, in particular a property with the eviction(s) set forth in Section 1396.2(b), is ineligible for conversion.
(3) (A) In addition, the applicant(s) shall certify that to the extent any tenant vacated his or her unit within the seven years prior to the date of registration for the lottery as selected by the Director and before recordation of the final parcel or subdivision map, such tenant did so voluntarily or if an eviction or eviction notice occurred it was not pursuant to Administrative Code Sections 37.9(a)(8)-(14) unless such eviction or eviction notice complied with the requirements of Subsections (B)-(D) below.
(B) If the evicting owner(s) recovered possession of the unit under Administrative Code Sections 37.9(a)(11) or 37.9(a)(14), then the applicant(s) shall certify that the original tenant reoccupied or was given an opportunity to reoccupy the unit after the temporary eviction.
(C) If the evicting owner(s) recovered possession of the unit under Administrative Code Section 37.9(a)(10), then the applicant(s) shall certify that the Department of Building Inspection required the unit be demolished or permanently removed from housing use pursuant to a Notice of Violation or Emergency Order or similar notice, order, or act; all the necessary permits for demolition or removal were obtained; that the evicting owner(s) complied in full with Administrative Code Section 37.9(a)(10) and (c); and that an additional unit or replacement unit was not constructed in the building after the demolition or removal of the unit previously occupied by the evicted tenant.
(D) If the evicting owner(s) recovered possession of a unit under Administrative Code Section 37.9(a)(8), then the applicants shall certify that: (i) only one unit in the building was the subject of such eviction during the seven year period, (ii) any surviving owner or relative named as the intended resident of the unit in the Section 37.9(a)(8) eviction notice also is presently an owner applying for the conversion of the same unit, and (iii) the subject applicant owner has occupied the unit continuously as his or her principle residence for three years prior to the date of registration for the lottery as selected by the Director.
(f) The Department shall review all available records, including eviction notices and records maintained by the Rent Board for compliance with Subsection (e). If the Department finds that a violation of Subsection (e) occurred prior to recordation of the final map or final parcel map, the Department shall disapprove the application or subject map. If the Department finds that a violation of Subsection (e) occurred after recordation of the final map or parcel map, the Department shall take such actions as are available and within its authority to address the violation.
(Amended by Ord. 498-85, App. 11/15/85; Ord. 426-89, App. 11/22/89; Ord. 418-93, App. 12/23/93; Ord. 434-97, App. 11/25/97; Ord. 372-98, App. 12/18/98; Ord. 161-01, File No. 010891, App. 7/9/2001; Ord. 48-03, File No. 030099, App. 4/3/2003; Ord. 281-04, File No. 041353, App. 12/1/2004; Ord. 6-07, File No. 061519, App. 1/18/2007; Ord. 238-08, File No. 081087, App. 10/30/2008; Ord. 117-13, File No. 120669, Pass. 6/18/2013)
SEC. 1396.1. ANNUAL CONVERSION LIMITATION LOTTERY PROCEDURES.
This Section shall govern conduct of the lottery required by Section 1396 for the conversion of residential units.
(a) The lottery shall be comprised of two pools (Pool A and Pool B).
(b) Pool A.
(1) For the 1995 lottery, Pool A shall consist only of those eligible buildings which participated but which failed to be selected in any previous lottery held during the years 1990 through 1994. For the 1996 lottery, Pool A shall consist of only those eligible buildings which participated but failed to be selected in any lottery held during the years 1990 through 1994 and the 1995 lottery. For all subsequent lotteries after 1996, Pool A shall consist of only those eligible buildings which participated but which have failed to be selected for conversion in at least three previous lotteries, two of which must be lotteries held after 1994. If all buildings eligible in Pool A comprise 100 or fewer units, all such buildings shall automatically be approved for conversion. Any unallocated units in Pool A shall be added to Pool B.
(2) If all buildings eligible in Pool A comprise more than 100 units, the Director of the Department of Public Works (Director) shall conduct a lottery among the buildings eligible for Pool A so that no more than 100 units are selected for conversion in Pool A. All buildings not selected for conversion through the Pool A lottery shall then participate in Pool B, under the procedures set forth below.
(c) Pool B.
(1) Pool B shall consist of all eligible buildings pursuant to Section 1396 above, together with any buildings from Pool A that were not selected for conversion in the Pool A lottery.
(2) Buildings from Pool B shall be selected for conversion by random selection of lottery tickets submitted for eligible buildings.
(3) Each building in Pool B shall receive one lottery ticket for the current lottery, plus a maximum of one lottery ticket for any and all lotteries held during the years 1990 through 1994 in which the building participated but failed to be selected for conversion in the lottery, plus one lottery ticket for every lottery after 1994 in which the building participated but failed to be selected for conversion.
(4) No building in Pool B shall receive more than five tickets.
(d) Applicants shall provide proof of participation in past lotteries to the Director.
(1) Proof of participation in any lottery held during the years 1990 through 1994 shall be as follows:
(i) Presentation by the registrant of a letter of regret from the Director for any lottery held during the years 1990 through 1994; or
(ii) Presentation by the registrant of a cancelled check for payment of lottery registration fees from any lottery held during the years 1990 through 1994; or
(iii) Any other proof of participation in any lottery held during the years 1990 through 1994, as determined acceptable by the Director.
(2) Proof of participation in any lottery held in or after 1995 shall be determined upon presentation by the registrant of a letter of regret from the Director.
(e) Commencing with the 1997 lottery, any building seeking more than one lottery ticket shall demonstrate to the satisfaction of the Director that one or more of the qualified owners of the building were owners of the building at the time of the lotteries in which the building participated but failed to be selected for conversion.
(f) For purposes of determining whether a building failed to be selected for conversion in a previous lottery:
(1) Those buildings which were chosen in a previous lottery but were not converted for any reason whatsoever shall not be considered as having failed to be selected in that lottery.
(2) Any previous failures to be selected by lottery do not have to occur in consecutive years.
(3) No credit shall be given for any year in which the building did not participate in the lottery.
(g) In addition to the other provisions relating to Pool A and Pool B described in subsections (b) through (f) above:
(1) the first 175 units selected by lottery in Pools A and B must meet the following requirements: the Applicant for the lottery must certify under penalty of perjury and the Department must verify with the Rent Stabilization and Arbitration Board, and with the Human Rights Commission as applicable, that since November 16, 2004, no eviction as defined in San Francisco Administrative Code Section 37.9(a)(8) ñ (14) of a senior, disabled person, or catastrophically ill tenant as defined below has occurred, or if an eviction has taken place under Administrative Code Section 37.9(a)(11) or (14), that the original tenant reoccupied the unit after a temporary eviction. For purposes of this section a "senior" shall be a person who is 60 years or older and has been residing in the unit for 10 years or more at the time of the lottery; a "disabled" tenant is defined for purposes of this Section as a person who is disabled within the meaning of Title 42 U.S.C. Section 12102(2)(A); and a "catastrophically ill" tenant is defined for purposes of this Subsection as a person who is disabled as defined above, and who is suffering from a life threatening illness as certified by his or her primary care physician.
(2) If there are not 175 units that meet the requirements of subsection (g)(1) above, then the remaining units will not be awarded by lottery in that year's lottery or any future lottery. If there are more than 175 units that meet the requirements of subsection (g)(1) above, then those units may compete for the remaining 25 units as described in subsection (g)(3) below.
(3) The remaining 25 units in Pool A and Pool B will be selected as described in subsections (b) through (f) and may, but do not need to, meet the additional requirements of subsection (g)(1) above.
(4) If the Department determines that an Applicant has knowingly provided false material information under subsection (g)(1) above, the Department shall immediately deny the application for the lottery, or if the Applicant has submitted an application for conversion, shall immediately deny the application for conversion. Moreover, the Department, the Director or other authorized person or entity may also enforce the provisions of this Section under Section 1304 or any other applicable provision of law as warranted.
(h) Standby List.
(1) Once all units have been allocated in Pools A and B, the Department shall place the remaining buildings on a standby list as set forth in Subsection (2). Buildings on the standby list may convert if selected units in Pools A and B are unable to convert within the time limits that the Department establishes and as long as the maximum number of allocated units is not exceeded.
(2) The Department shall determine the standby list by random selection in a lottery; provided, however, that only buildings satisfying the requirements of subsection (g)(1) shall participate in the lottery authorized under this Subsection. The standby list lottery shall terminate after the Department selects the first 20 buildings.
(3) All remaining buildings shall be kept on file with the Department. These buildings are eligible to convert if selected units in Pools A and B and the standby list lottery are unable to convert within the time limits that the Department establishes and as long as the maximum number of allocated units is not exceeded. In such an event, the Department shall conduct a random selection lottery among the remaining buildings for any unallocated units.
(Added by Ord. 428-94, App. 12/23/94; amended by Ord. 161-01, File No. 010891, App. 7/9/2001; Ord. 281-04, File No. 041353, App. 12/1/2004; Ord. 281-05, File No. 051462, App. 12/21/2005; Ord. 6-07, File No. 061519, App. 1-18-2007)
SEC. 1396.2. PROHIBITION ON CONDOMINIUM CONVERSIONS FOR CERTAIN BUILDINGS.
(a) Notwithstanding any provisions in this Code to the contrary, including Section 1359, the Department of Public Works shall not sell residential condominium conversion lottery tickets to; shall not accept a residential condominium conversion subdivision application from; and shall deny a tentative subdivision or tentative parcel map for residential condominium conversion submitted by the owner(s) of a building that meets all of the following conditions:
(1) the building had two or more evictions with each eviction associated with a separate unit(s);
(2) issuance of each eviction notice occurred on or after May 1, 2005; and,
(3) issuance of the eviction notice(s) occurred pursuant to San Francisco Administrative Code Sections 37.9(a)(8), 37.9(a)(10), 37.9(a)(11), or 37.9(a)(13).
(b) Subsection (a) also shall apply to the owner(s) of a building with one or more evictions if the person(s) evicted was a senior, disabled, or catastrophically ill tenant and the issuance of the eviction notice occurred in accordance with the conditions of Subsections (a)(2) and (3).
(1) For purposes of this Subsection, a "senior" shall be a person who is 60 years or older and has been residing in the unit for ten years or more at the time of issuance of the eviction notice; a "disabled" tenant is defined for purposes of this Section as a person who is disabled within the meaning of Title 42 U.S.C. Section 12102(2)(A); and a "catastrophically ill" tenant is defined for purposes of this Subsection as a person who is disabled as defined above, and who is suffering from a life threatening illness as certified by his or her primary care physician.
(c) Subsections (a) and (b) shall apply to all buildings subject to such provisions without regard to whether the current owner(s) initiated or otherwise participated in the eviction(s).
(d) If the Department determines that an applicant has knowingly provided false material information concerning subsections (a) or (b) above, the Department shall immediately deny the application for the lottery, or if the applicant has submitted an application for conversion, shall immediately deny the application for conversion. Moreover, the Department, the Director, or other authorized person or entity may also enforce the provisions of this Section under section 1304 or any other applicable provision of law as warranted.
(e) For purposes of subsections (a) and (b), "eviction" shall mean the issuance of a written notice terminating tenancy pursuant to Administrative Code Sections 37.9(a)(8), 37.9(a)(10), 37.9(a)(11), or 37.9(a)(13); provided, however, that if the property owner(s) issues then withdraws the eviction notice prior to its expiration and the tenant receiving the notice remains in tenancy for at least 120 days following the expiration of the notice, the property owner's action shall not be deemed an eviction pursuant to this subsection.
(f) Notwithstanding the limitations set forth in Subsection (a), a building that meets the conditions of Subsections (a)(1) ñ (3) but did not result in the issuance of an eviction notice, as defined, to a senior, disabled, or catastrophically ill tenant shall be eligible for conversion ten (10) years following the date of the last eviction from the building. Conversion of a 2-unit building pursuant to this Section shall be subject to Section 1359 except that both units in the building shall be owner-occupied by the same owners of record for ten (10) years prior to the date of application for Conversion. Conversion of a building of up to six (6) units pursuant to this section shall be subject to the provisions of Article 9 except that the owner occupancy requirements of Sections 1396(a) and (b) shall be ten (10) years prior to the date of registration for the lottery as selected by the Director.
(g) Notwithstanding the limitations set forth in Subsection (a) or (b), a building where one or more eviction notices, as defined, were issued after May 1, 2005, shall be exempt from this Section 1396.2 if each unit in the building was occupied by a separate owner of record on April 4, 2006, the introduction date of this legislation.
(Ord. 112-06, File No. 060443, App. 5/22/2006)
SEC. 1396.3. ANNUAL CONVERSION LIMITATION LOTTERY PROCEDURES BASED ON SENIORITY OF PARTICIPATION.
This Section shall govern conduct of the lottery required by Section 1396 and shall prevail over the lottery selection process of Section 1396.1 for the conversion of residential units.
(a) The lottery shall be comprised of two pools (Pool A and Pool B).
(b) Pool A.
(1) Pool A shall consist of only those eligible buildings which participated but which have failed to be selected for conversion in at least three previous lotteries. In addition, Pool A eligibility requires that each applicant for the lottery certify under penalty of perjury, and the Department must verify with the Rent Stabilization and Arbitration Board, and with the Human Rights Commission as applicable, that since January 1, 2000, no eviction as defined in San Francisco Administrative Code Section 37.9(a)(8) ñ (14) of a senior, disabled person, or catastrophically ill tenant as defined below has occurred, or if an eviction has taken place under Administrative Code Section 37.9(a)(11) or (14), that the original tenant reoccupied the unit after a temporary eviction. For purposes of this section a "senior" shall be a person who is 60 years or older and has been residing in the unit for 10 years or more at the time of the lottery; a "disabled" tenant is defined for purposes of this Section as a person who is disabled within the meaning of Title 42 U.S.C. Section 12102(2)(A); and a "catastrophically ill" tenant is defined for purposes of this Subsection as a person who is disabled as defined above, and who is suffering from a life threatening illness as certified by his or her primary care physician. If an applicant for Pool A cannot satisfy this certification requirement, the applicant shall participate in Pool B as set forth in Subsections (c) ñ (g). This certification also is subject to the procedures of Subsection (g)(4). If all buildings eligible in Pool A comprise 100 or fewer units, all such buildings shall automatically be approved for conversion. Any unallocated units in Pool A shall be added to Pool B.
(2) If all buildings eligible in Pool A comprise more than 100 units, the Director of the Department of Public Works (Director) rank the buildings according to the number of times a building has participated in and failed to be selected in any lottery, to be known as a Class. The Director shall enter the buildings having participated the most times into the Senior Class. If the total number of units in the Senior Class exceeds 100 units, then the Director shall conduct a lottery among all the buildings eligible for the Senior Class so that no more than 100 units are selected for conversion in Pool A. If the total number of units in the Senior Class is fewer than 100 units, all buildings shall automatically be approved for conversion. If there are remaining units to be selected to reach the maximum total of 100 units in Pool A, the process will then proceed to the next most senior Class. If the next most senior Class would result in more than 100 total units being selected in Pool A, then the Director shall conduct a lottery among all the buildings eligible for the next most senior Class so that no more than 100 total units are selected for conversion in Pool A. If the number of units in next most senior Class(es) combined with the units previously selected in Pool A is fewer than 100 total units, all buildings in the next most senior Class shall automatically be approved for conversion. If there are remaining units to be selected to reach the maximum total of 100 units in Pool A, the process will then proceed as described above for the next most senior Class so that those buildings with the most seniority are prioritized over the junior Class(es). At such time as the number of units in the Class next eligible for conversion exceeds the total number of units remaining for selection in Pool A, a lottery will be held among that Class to determine which units shall be selected for conversion as part of Pool A. All buildings not selected for conversion through the Pool A lottery shall then participate in Pool B, under the procedures set forth below.
(c) Pool B.
(1) Pool B shall consist of all eligible buildings pursuant to Section 1396 above, together with any buildings from Pool A that were not selected for conversion in the Pool A lottery.
(2) Buildings from Pool B shall be selected for conversion by random selection of lottery tickets submitted for eligible buildings.
(3) Each building in Pool B shall receive one lottery ticket for the current lottery, plus one lottery ticket for every lottery in which the building participated but failed to be selected for conversion.
(d) Applicants shall provide proof of participation in past lotteries to the Director.
(1) Proof of participation in any lottery held during the years 1990 through 1994 shall be as follows:
(i) Presentation by the registrant of a letter of regret from the Director for any lottery held during the years 1990 through 1994; or
(ii) Presentation by the registrant of a cancelled check for payment of lottery registration fees from any lottery held during the years 1990 through 1994; or
(iii) Any other proof of participation in any lottery held during the years 1990 through 1994, as determined acceptable by the Director.
(2) Proof of participation in any lottery held in or after 1995 shall be determined upon presentation by the registrant of a letter of regret from the Director.
(e) Commencing with the 1997 lottery, any building seeking more than one lottery ticket shall demonstrate to the satisfaction of the Director that the required number of qualified owners of the building were owners of the building at the time of the lotteries in which the building participated but failed to be selected for conversion.
(f) For purposes of determining whether a building failed to be selected for conversion in a previous lottery:
(1) Those buildings which were chosen in a previous lottery but were not converted for any reason whatsoever shall not be considered as having failed to be selected in that lottery.
(2) Any previous failures to be selected by lottery do not have to occur in consecutive years.
(3) No credit shall be given for any year in which the building did not participate in the lottery.
(g) In addition to the other provisions relating to Pool A and Pool B described in subsections (b) through (f) above:
(1) The first 175 units selected by lottery in Pools A and B must meet the following requirements: the Applicant for the lottery must certify under penalty of perjury and the Department must verify with the Rent Stabilization and Arbitration Board, and with the Human Rights Commission as applicable, that since November 16, 2004, no eviction as defined in San Francisco Administrative Code Section 37.9(a)(8) ñ (14) of a senior, disabled person, or catastrophically ill tenant as defined below has occurred, or if an eviction has taken place under Administrative Code Section 37.9(a)(11) or (14), that the original tenant reoccupied the unit after a temporary eviction. For purposes of this section a "senior" shall be a person who is 60 years or older and has been residing in the unit for 10 years or more at the time of the lottery; a "disabled" tenant is defined for purposes of this Section as a person who is disabled within the meaning of Title 42 U.S.C. Section 12102(2)(A); and a "catastrophically ill" tenant is defined for purposes of this Subsection as a person who is disabled as defined above, and who is suffering from a life threatening illness as certified by his or her primary care physician.
(2) If there are not 175 units that meet the requirements of subsection (g)(1) above, then the remaining units will not be awarded by lottery in that year's lottery or any future lottery. If there are more than 175 units that meet the requirements of subsection (g)(1) above, then those units may compete for the remaining 25 units as described in subsection (g)(3) below.
(3) The remaining 25 units in Pool A and Pool B will be selected as described in subsections (b) through (f) and may, but do not need to, meet the additional requirements of subsection (g)(1) above.
(4) If the Department determines that an Applicant has knowingly provided false material information under subsection (g)(1) above, the Department shall immediately deny the application for the lottery, or if the Applicant has submitted an application for conversion, shall immediately deny the application for conversion. Moreover, the Department, the Director or other authorized person or entity may also enforce the provisions of this Section under Section 1304 or any other applicable provision of law as warranted.
(h) Standby List.
(1) Once all units have been allocated in Pools A and B, the remaining buildings shall be placed on a standby list as set forth in subsection (2). Buildings on the standby list may convert in the event that selected units in Pools A and B are unable to convert within the time limits that the Department establishes and as long as the maximum number of allocated units is not exceeded.
(2) The standby list shall be determined by a lottery or, if necessary, a series of lotteries among a Class(es) of buildings prioritized by seniority of participation in the annual condominium conversion lottery. Only buildings satisfying the requirements of subsection (g)(1) shall be assigned to the standby list in the manner specified above. The standby list lottery shall terminate after the Department selects the first 20 buildings.
(3) All remaining buildings shall be kept on file with the Department. These buildings are eligible to convert if selected units in Pools A and B and the standby list lottery are unable to convert within the time limits that the Department establishes and as long as the maximum number of allocated units is not exceeded. In such an event, the Department shall conduct a random selection lottery among the remaining buildings for any unallocated units.
(Added by Ord. 13-07, File No. 061563, App. 2/2/2007; Ord. 238-08, File No. 081087, App. 10/30/2008)
SEC. 1396.4. CONDOMINIUM CONVERSION FEE AND EXPEDITED CONVERSION PROGRAM.
(a) Findings. The findings of Planning Code Section 415.1 concerning the City's inclusionary affordable housing program are incorporated herein by reference and support the basis for charging the fee set forth herein as it relates to the conversion of dwelling units into condominiums.
(b) Any building may be exempted from the annual lottery provisions of Section 1396 if the building owners for said building comply with Section 1396.3(g)(1) and all the requirements of this Section 1396.4. Notwithstanding the foregoing, no property or applicant subject to any of the prohibition on conversions set forth in Section 1396.2, in particular a property with the eviction(s) set forth in Section 1396.2(b), is eligible for the Expedited Conversion program under this Section 1396.4. Eligible buildings as set forth in this Section (b) may exercise their option to participate in this program according to the following requirements:
(1) Any building that participated in but was not selected for the 2012 or 2013 condominium conversion lottery consisting of (a) four units or less in which one unit has been occupied continuously by one of the applicant owners of record for no less than five years prior to April 15, 2013, or (b) buildings consisting of five or six units in which 50 percent or more of the units have been occupied continuously by the applicant owners of record for no less than five years as of April 15, 2013, is eligible for conversion under this Subsection. The applicant(s) for the subject building seeking to convert under this Subsection shall pay the fee specified in Subsection (e) no later than April 14, 2014 for the entire building along with additional information as the Department may require including certification of continued eligibility; however, the deadline for an applicant to pay the fee may be extended pursuant to (j)(3) of this Section.
(2) Any building that participated in but was not selected for the 2012 or 2013 condominium conversion lottery consisting of (a) four units or less in which one unit has been occupied continuously by one of the applicant owners of record for no less than three years prior to April 15, 2014, or (b) buildings consisting of five or six units in which 50 percent or more of the units have been occupied continuously by the applicant owners of record for no less than three years as of April 15, 2014, is eligible for conversion under this Subsection. The applicant(s) for the subject building may apply for conversion under this Subsection on or after April 15, 2014 and shall pay the fee specified in Subsection (e) no later than January 23, 2015 along with additional information as the Department may require including certification of continued eligibility; however, the deadline for an applicant to pay the fee may be extended pursuant to (j)(3) of this Section.
(3) For Additionally Qualified Buildings consisting of (a) four units or less in which one unit has been occupied continuously by one owner of record for no less than six years as of April 15, 2015 or (b) buildings consisting of five or six units in which 50 percent or more of the units have been occupied continuously by owners of record for no less than six years as of April 15, 2015, the applicant(s) for the subject building may apply for conversion under this Subsection on or after April 15, 2015 and shall pay the fee specified in Subsection (e) no later than January 22, 2016 along with additional information as the Department may require including certification of continued eligibility.
(4) For Additionally Qualified Buildings consisting of (a) four units or less in which one unit has been occupied continuously by one owner of record for no less than six years as of April 15, 2016, or (b) buildings consisting of five or six units in which 50 percent or more of the units have been occupied continuously by owners of record for no less than six years as of April 15, 2016, the applicant(s) for the subject building may apply for conversion under this Subsection on or after April 15, 2016 and shall pay the fee specified in Subsection (e) no later than January 20, 2017 along with additional information as the Department may require including certification of continued eligibility.
(5) For Additionally Qualified Buildings consisting of (a) four units or less in which one unit has been occupied continuously by one owner of record for no less than six years as of April 15, 2017, or (b) buildings consisting of five or six units in which 50 percent or more of the units have been occupied continuously by owners of record for no less than six years as of April 15, 2017, the applicant(s) for the subject building may apply for conversion under this Subsection on or after April 15, 2017 and shall pay the fee specified in Subsection (e) no later than January 19, 2018 along with additional information as the Department may require including certification of continued eligibility.
(6) For Additionally Qualified Buildings consisting of (a) four units or less in which one unit has been occupied continuously by one owner of record for no less than six years prior to April 15, 2018, or (b) buildings consisting of five or six units in which 50 percent or more of the units have been occupied continuously by owners of record for no less than six years as of April 15, 2018, the applicant(s) for the subject building may apply for conversion under this Subsection on or after April 15, 2018 and shall pay the fee specified in Subsection (e) no later than January 25, 2019 along with additional information as the Department may require including certification of continued eligibility.
(7) For Additionally Qualified Buildings consisting of (a) four units or less in which one unit has been occupied continuously by one owner of record for no less than six years prior to April 15, 2019, or (b) buildings consisting of five or six units in which 50 percent or more of the units have been occupied continuously by owners of record for no less than six years as of April 15, 2019, the applicant(s) for the subject building may apply for conversion under this Subsection on or after April 15, 2019 and shall pay the fee specified in Subsection (e) no later than January 24, 2020 along with additional information as the Department may require including certification of continued eligibility. An Additionally Qualified Building subject to Subsection 9(A) shall be eligible to convert pursuant to this Subsection as long as there is fully executed written agreement in which the owners each have an exclusive right of occupancy to individual units in the building to the exclusion of the owners of the other units and 50 percent or more of the units have been occupied continuously by owners of record for no less than six years as of January 24, 2020.
(8) For applications for conversion pursuant to Subsections (3)-(7) only, a unit that is "occupied continuously" shall be defined as a unit occupied continuously by an owner of record for the six year period without an interruption of occupancy and so long as the applicant owner(s) occupied the subject unit as his/her principal place of residence for no less than one year prior to the time of application. Notwithstanding the occupancy requirements set forth above, each building may have one unit where there is an interruption in occupancy for no more than a three month period that is incident to the sale or transfer to a subsequent owner of record who occupied the same unit. For any unit with an interruption of occupancy, the applicant shall provide evidence to establish to the satisfaction of the Department that the period did not exceed three months.
(9) An "Additionally Qualified Building" within the meaning of this Section is defined as a building in which the initially eligible applicant owners of record have a fully executed written agreement as of April 15, 2013 in which the owners each have an exclusive right of occupancy to individual units in the building to the exclusion of the owners of the other units; provided, however, that said agreement can be amended to include new applicant owner(s) of record as long as the new owner(s) satisfy the requirements of Subsection (8) above. In addition to the requirements listed in this Subsection (8), an Additionally Qualified Building also includes a five or six unit building that: (A) on April 15, 2013, had 50 percent or more of the units in escrow for sale as a tenancy-in-common where each buyer shall have an exclusive right of occupancy to an individual unit in the building to the exclusion of the owners of other units or (8) is subject to the requirements of Section 1396.2(f) and 50 percent or more of the units have been occupied continuously by owners of record for no less than ten years prior to the date of application as set forth in Subsections (3)-(7).
(10) In addition to all other provisions of this Section, the applicant(s) must meet the following requirements applicable to Subdivision Code Article 9, Conversions: Sections 1381, 1382, 1383,1386, 1387, 1388, 1389, 1390, 1391(a) and (b), 1392, 1393, 1394, and 1395. Also, the applicant(s) must certify that to the extent any tenant vacates his or her unit after March 31, 2013 and before recordation of the final parcel or subdivision map, such tenant did so voluntarily or if an eviction or eviction notice occurred it was not pursuant to Administrative Code Sections 37.9(a)(8)-(14). If an eviction has taken placed under 37.9(a)(11) or 37.9(a)(14) then the applicant(s) shall certify that the original tenant reoccupied the unit after the temporary eviction.
(11) If the Department finds that a violation of this Section occurred prior to recordation of the final map or final parcel map, the Department shall disapprove the application or subject map. If the Department finds that a violation of this Section occurred after recordation of the final map or parcel map, the Department shall take such actions as are available and within its authority to address the violation.
(c) Decisions and Hearing on the Application.
(1) The applicant shall obtain a final and effective tentative map or tentative parcel map approval for the condominium subdivision or parcel map within one (1) year of paying the fee specified in Subsection (e).
(2) No less than twenty (20) days prior to the Department's proposed decision on a tentative map or tentative parcel map, the Department shall publish the addresses of building being considered for approval and post such information on its website. During this time, any interested party may file a written objection to an application and submit information to the Department contesting the eligibility of a building. In addition, the Department may elect to hold a public hearing on said tentative map or tentative parcel map to consider the information presented by the public, other City department, or an applicant. If the Department elects to hold such a hearing it shall post notice of such hearing and provide written notice to the applicant, all tenants of such building, any member of the public who submitted information to the Department, and any interested party who has requested such notice. In the event that an objection to the conversion application is filed in accordance with this Subsection, and based upon all the facts available to the Department, the Department shall approve, conditionally approve, or disapprove an application and state the reasons in support of that decision.
(3) Any map application subject to a Departmental public hearing on the subdivision or a subdivision appeal shall have the time limit set forth in this Subsection (c)(1) extended for another six (6) months.
(4) The Director of the Department of Public Works is authorized to waive the time limits set forth in this Subsection (c)(1) as it applies to a particular building due to extenuating or unique circumstances. Such waiver may be granted only after a public hearing and in no case shall the time limit extend beyond two (2) years after submission of the application.
(d) Should the subdivision application be denied or be rejected as untimely in accordance with the dates specified above, or the tentative subdivision map or tentative parcel map disapproved, the City shall refund the entirety of the applicant's fee specified in Subsection (e).
(e) The fee amount is $20,000.00 per unit for all buildings that seek to convert under Subsection (b)(1)-(7). Said fee shall be adjusted annually in accordance with the terms of Section 1315(f). Said fee is reduced for each year the building has participated in the condominium conversion lottery up to and including the 2013 lottery in accordance with the following formula:
(1) 2 years of participation, 20% fee reduction per unit;
(2) 3 years of participation, 40% fee reduction per unit;
(3) 4 years of participation, 60% fee reduction per unit; and
(4) 5 or more years of participation, 80% fee reduction per unit.
(f) For purposes of Section (e), a building's owner(s) shall get credit only for those years that he or she participated in the lottery even though such building could have qualified for and participated in other condominium conversion lotteries.
(g) Life Time Lease for Non-purchasing Tenants.
(1) Any application for conversion under this Section shall include a certification under penalty of perjury by the applicants that any non-purchasing tenant(s) in the building has been given a written offer to enter into a life time lease in the form and with the provisions published and prescribed by the Department in consultation with the Rent Board. Such written offer for a life time lease shall be executed by the owners of the building(s) and recorded prior to the time of Final Map or Parcel Map approval. Any life time leases made pursuant hereto shall expire only upon the death or demise of the last such life-tenant residing in the unit or the last surviving member of the life-tenant's household, provided such surviving member is related to the life- tenant by blood, marriage, or domestic partnership, and is either disabled, catastrophically ill, or aged 62 or older at the time of death or demise of any such life-tenant, or at such time as the life-tenant(s) in the unit voluntarily vacates the unit after giving due notice of such intent to vacate.
(2) (A) Each lease shall contain a provision allowing the tenant to terminate the lease and vacate the unit upon 30 days' notice and a provision that rent charged during the term of the lease shall not exceed the rent charged at the time of filing of the application for conversion, plus any increases proportionate to the increases in the residential rent component of the "Bay Area Cost of Living Index, U.S. Dept, of Labor," provided that the rental increase provisions of this Section shall be operative only in the absence of other applicable rent increase or arbitration laws.
(B) The lease also shall state that it shall not alter or abridge the rights or obligations of the parties in performance of their covenants, including but not limited to the provision of services, payment of rent or the obligations imposed by Sections 1941, 1941.1, 1941.2, 1941.3, and 1941.4 of the California Civil Code and that there shall be no decrease in dwelling unit maintenance or other services historically provided to such units and such life-tenants.
(C) The lease shall include the following language:
Tenant agrees that this Lease shall be subject and subordinate at all times to (i) all ground leases or underlying leases that may now exist or hereafter be executed affecting the Real Property or any portion thereof; (ii) the lien of any mortgage, deed of trust, assignment of rents and leases or other security instrument (and any advances thereunder) that may now exist or hereafter be executed in any amount for which the Real Property or any portion thereof, any ground leases or underlying leases or Landlord's interest or estate therein, is specified as security; and (iii) all modifications, renewals, supplements, consolidations and replacements thereof, provided in all cases the mortgagees or beneficiaries named in mortgages or deeds of trust hereafter executed or the assignee of any assignment of rents and leases hereafter executed to recognize the interest and not disturb the possession, use and enjoyment of Tenant under this Lease, and, in the event of foreclosure or default, the lease will continue in full force and effect by operation of San Francisco Administrative Code Chapter 37, Section 37.9D, and the conditions imposed on each parcel or subdivision map pursuant to Section 1396.4(g), as long as Tenant is not in default under the terms and conditions of this Lease. Tenant agrees to execute and deliver, upon demand by Landlord and in the form requested by Landlord, any additional reasonable documents evidencing the priority or subordination of this Lease with respect to any such ground leases, underlying leases, mortgages, deeds of trust, assignment of rents and leases or other security instruments. Subject to the foregoing, Tenant agrees that Tenant shall be bound by, and required to comply with, the provisions of any assignment of rents and leases with respect to the Building.
(3) The Department shall impose the following tentative map conditions on each parcel and subdivision map subject to this Subsection 1396.4(g) and require that the conditions be satisfied prior to Final Subdivision Map or Parcel Map approval: (A) the property owner(s) of the building provide a written offer for a life time lease pursuant to this Subsection to the tenant(s) in the building and record such offer against the building's title, (B) at the time the tenant(s) accepts the life time lease offer, and even if such acceptance occurs after map approval, a binding agreement between the tenant(s) and the property owner(s) shall be executed and recorded against the property's title, and (C) a binding agreement between the City and the property owner(s) concerning the requirements of this Subsection be recorded against the property's title. For purposes of this Subsection, the Board of Supervisors delegates authority to the DPW Director, in consultation with the Mayor's Office of Housing, to enter in said agreement on behalf of the City and County of San Francisco.
(4) If the owner(s) of a building subject to the life time lease provisions of this Section 1396.4(g) enters into any contract or option to sell or transfer any unit that would be subject to the lifetime lease requirements or any interest in any unit in the building that would be subject to the lifetime lease requirements at any time between the initial application and recording of the final subdivision map or parcel map, said contract or option shall be subject to the following conditions: (a) the contract or option shall include written notice that the unit shall be subject to the life time lease requirements of Subdivision Code Section 1396.4(g), (b) prior to final execution of any such contract or option, the owner(s) shall record a notice of restrictions against the property that specifically identifies the unit potentially subject to the life time lease requirements and specifies the requirements of the life time lease as set forth in Section 1396.4(g)(1), and (c) the recorded notice of restrictions shall be included as a note on the final subdivision map or parcel map. Prior to approval of a final subdivision map or parcel map, the applicant(s) shall certify under penalty of perjury to the Department that he, she, or they have complied with the terms of this Subsection as it applies to a building. Failure to provide this certification from every current owner of a building shall result in disapproval of the map. The content of the notices and certifications required by this Subsection shall comply with the instructions and procedures developed by the Department.
(h) In recognition of the rental requirements of Section (g), the fee for each unit in which a non-purchasing tenant resides at the time specified in Section (g) who is offered a life time lease and is unrelated by blood, marriage, or domestic partnership to any owner of the building shall be refunded to the subdivider under the following formula:
(1) One unit, 10% fee reduction for such unit;
(2) Two units, 20% fee reduction for each unit;
(3) Three units, 30% fee reduction for each unit.
(i) Upon confirmation of compliance with the rental requirement, DPW or the City department in possession of the fee revenue shall refund the amount specified in Section (h) to the subdivider and have all remaining fee revenues transferred, in the following percentage allocations: 25% to the Mayor's Office of Housing's program for small site acquisition to purchase market rate housing and convert it to affordable housing and 75% to the Citywide Affordable Housing Fund for the purpose of expanding affordable housing opportunities for low or moderate income households in San Francisco, including, but not limited to, expanding public housing opportunities.
(j) Waiver or reduction of fee based on absence of reasonable relationship or deferred payment based upon limited means.
(1) A project applicant of any project subject to the requirements in this Section may appeal to the Board of Supervisors for a reduction, adjustment, or waiver of the requirements based upon the absence of any reasonable relationship or nexus between the impact of development and the amount of the fee charged or for the reasons set forth in Subsection (2) below, a project applicant may request a waiver from the Board of Supervisors.
(2) Any appeal of requests under this clause shall be made in writing and filed with the Clerk of the Board no later than 15 days after the date the sponsor is required to pay and has paid to the Treasurer the fee as required in this Section. The appeal shall set forth in detail the factual and legal basis for the claim of waiver, reduction, or adjustment. The Board of Supervisors shall consider the appeal at the hearing within 60 days after the filing of the appeal. The appellant shall bear the burden of presenting substantial evidence to support the appeal, including comparable technical information to support appellant's position. If a reduction, adjustment, or waiver is granted, any change of use or scope of the project shall invalidate the waiver, adjustment or reduction of the fee. If the Board grants a reduction, adjustment or waiver, the Clerk of the Board shall promptly transmit the nature and extent of the reduction, adjustment or waiver to the Treasurer and Department of Public Works.
(3) A project applicant may apply to the Department of Public Works for a deferral of payment of the fee described in Subsection (e) for the period that the Department completes its review and until the application for expedited conversion is approved, provided that for the twelve months prior to the application, the applicant resided in his or her unit in the subject property as his or her principle place of residence and the applicant's household income was less than 120% of median income of the City and County of San Francisco as determined by the Mayor's Office of Housing.
(k) Buildings that convert pursuant to this Section shall have no effect on the terms and conditions of Section 1341A, 1385A, or 1396 of this Code.
(Added by Ord. 117-13, File No. 120669, Pass. 6/18/2013)
SEC. 1396.5. SUSPENSION OF THE LOTTERY PENDING PRODUCTION OF REPLACEMENT UNITS FOR EXPEDITED CONVERSION UNITS.
(a) Within twelve months after issuing tentative or tentative parcel map approval for the last conversion under Section 1396.4 or December 29, 2023, whichever is earlier, the Department shall publish a report stating the total number of units converted under the Expedited Conversion program and every twelve months thereafter until the Expedited Conversion program is completed.
(b) No later than April 15 of each year until the termination of the suspension period, the Mayor's Office of Housing shall publish a report stating the total number of permanently affordable rental housing produced in San Francisco and the "Conversion Replacement Units" produced in the previous calendar year and a cumulative total of such housing produced in preceding years during the tracking period. For purposes of this Subsection, the Mayor's Office of Housing shall have the authority to determine what type and form of housing constitutes permanently affordable rental housing that has been produced.
(c) The Department shall not accept an application for the conversion of residential units under Section 1396 nor conduct a lottery under this Article prior to January 1, 2024. Thereafter, the lottery shall resume upon the earlier of the following: (1) the first February following the Mayor's Office of Housing report pursuant to Subsection (b) showing that the total number of Conversion Replacement Units produced in the City of San Francisco exceeded the total number of units converted as identified in the Department's report prepared pursuant to Subsection (a); or (2) completion of the "Maximum Suspension Period" as defined below.
(d) "Conversion Replacement Units" in any year shall be determined by subtracting 300 from the total number of permanently affordable rental units that the City produced in that year starting on January 1, 2014.
(e) The "Maximum Suspension Period" shall be the number of years calculated by dividing the total number of units approved for conversion under Section 1396.4(b)(1)-(7) (the Expedited Conversion program) divided by 200 and rounded to the nearest whole number with the year 2014 as the starting point. For example, if 2400 units have been converted under Section 1396.4(b)(1)-(7), then the maximum suspension period would be 12 years and expire on December 31, 2025.
(Added by Ord. 117-13, File No. 120669, Pass. 6/18/2013)
SEC. 1396A. LOW AND MODERATE INCOME HOUSING REVIEW.
The availability of low and moderate income housing shall be reviewed every two years by the Department of City Planning and the results of this review shall be included in the Department of City Planning's "Residence Element Update" which is submitted to the Board of Supervisors.
(Added by Ord. 257-88, App. 6/22/88)
SEC. 1397. CERTIFICATION OF EXEMPT CONVERSIONS.
(a) The conversion of a stock cooperative, as defined in Section 11003.2 of the Business and Professions Code, to a condominium, as defined in Section 783 of the Civil Code, is exempt from the provisions of this Code, including, but not limited to, any annual limitation imposed on the number of conversions to condominiums set forth in Section 1396, upon issuance of a Certificate of Exemption pursuant to this Section, but only if the following requirements are met:
(1) At least 51 percent of the units in the cooperative were occupied by stockholders of the cooperative on January 1, 1981, or individually owned by stockholders of the cooperative on January 1, 1981. As used in this paragraph a cooperative unit is "individually owned" if and only if the stockholder of such unit owns or partially owns an interest in no more than one unit in the cooperative; and
(2) No more that 25 percent of the shares of the cooperative were owned by any one person, as defined in Section 17, including an incorporator or director of the cooperative, on January 1, 1981.
(b) In addition to notice requirements hereafter provided, each tenant of a unit in a stock cooperative that is converting to condominiums shall have the nontransferable right (i) to contract for the purchase of the unit upon the same terms and conditions that such unit will be initially offered to the general public or on terms more favorable to the tenant, which right shall run for a period of not less than 90 days from the date of issuance of the subdivision public report pursuant to Business and Professions Code Section 11018.2 where the building to be converted consists of five or more units, or from the date of issuance of a Certificate of Exemption in the case where the building to be converted consists of four units or less; or (ii) to receive moving expenses, up to a maximum of $1,000, which right shall extend for 120 days from the date of issuance of a Certificate of Exemption; or (iii) to enter into a one-year lease of the unit; or (iv) as to tenants aged 62 years or older or permanently disabled, to enter into a lease under the terms and conditions set forth in Section 1391(c) of this Code.
(c) Applications for a Certificate of Exemption shall be filed with the Department of Public Works and shall contain the following information, based on a declaration under penalty of perjury executed by the applicant that the information provided is, to the best of the applicant's knowledge, correct:
(1) A copy of a report of residential record ("3-R Report") obtained from the Bureau of Building Inspection showing the type of building and the number of units;
(2) The name and mailing address of the occupant of each unit;
(3) Identification of any occupant who is a tenant; for purposes of this Section, a "tenant" is a person other than a shareholder of the stock cooperative who rents or leases a unit in a stock cooperative;
(4) Verification under penalty of perjury by each non-tenant occupant of a unit that he or she is one of the share owners of a stock cooperative, along with documentary proof of that status in a form acceptable to the Director.
(5) Information showing that the applicant meets the requirements for exemption under Section 66412(h)(1) and (2) of the SMA.
(6) Certification that the applicant has provided written notice to every tenant of (i) the applicant's intent to convert to condominiums; and (ii) the applicant's intent to seek the exemption provided herein; and (iii) the rights afforded tenants of stock cooperatives that convert to condominiums pursuant to this Section. The applicant shall also submit a copy of the notice provided to the tenants and the date that it was so provided.
(7) Certification that the applicant (i) will give, prior to issuance of the Certificate of Exemption, written notice to each person applying for rental of a unit in the building of the tenant rights described in Subsection (4), which notice shall be given prior to acceptance of any rent or deposit from the prospective tenant; and (ii) will give written notice to all tenants that an application for a public report has been submitted to the Department of Real Estate at least 10 days before its submission where the building to be converted consists of five or more units; and (iii) will not terminate any tenancy because of a conversion or proposed conversion without 180 days' written notice to the tenant. Failure to comply with Subsection (i) of this Section will make the applicant subject to payment to the tenant of moving expenses and rent as provided in Government Code Section 66452.8.
The applicant shall also provide stamped envelopes addressed to the occupant of every unit in the stock cooperative. Such stamped and self-addressed envelopes shall be furnished to the Department of Public Works at the time of the filing of the application for a Certificate of Exemption.
(d) The Director shall determine whether the applicant has met the requirements for exemption set forth in Section 66412(h)(1) and (2) of the SMA and whether a parcel or final map was approved by the Legislative Body of the City and County of San Francisco. If it is determined that these requirements are not met or that a parcel or final map was so approved, the Director shall deny the application.
(e) If the Director determines that an application meets all the requirements described in Subsection (c), that officer shall take the following action:
(i) If the applicant has certified that no tenants reside in any of the units, a notice shall be sent to each occupant of the building setting forth the rights of tenants of stock cooperatives that convert to condominiums and stating that the Department intends to issue the applicant a Certificate of Exemption for conversion to condominiums on the grounds that the applicant meets the requirements of Section 66412(h) of the SMA and that no tenants are occupying any of the units in the building. It shall also state that the Certificate of Exemption will be issued within 30 days if no request is made for a hearing to dispute the validity of that action. Upon receipt of a written request, the Director or a designee shall conduct a hearing, after providing notice to the applicant and all occupants of the units, in order to determine whether the Certificate of Exemption should be issued and whether tenant rights have been provided as required herein. If no request for a hearing is made within 30 days of the mailing of such notice, the Director shall issue the Certificate of Exemption.
(ii) If the applicant has certified that one or more tenants occupy any unit in the building, the Director shall set a date by which the applicant must comply with the requirements of this Section governing tenant rights, which date shall be not less than 60 days from the date that the applicant notified the tenants of the intent to convert and of the rights afforded to such tenants, and shall provide written notice of that date to the applicant and each occupant of the building.
(f) On or after the date set by the Director for compliance by the applicant with the requirements regarding tenant rights, the applicant shall provide the Department of Public Works with respect to each tenant one of the following:
(i) A contract executed by every owner of the building and the tenant giving the tenant the right to purchase the unit on the terms set forth above in Subsection (b)(i); or
(ii) Written certification by the tenant that the tenant has received money for moving expenses or, in the alternative, a contract between the owner(s) of the building and the tenant in which the owner(s) agree to pay the tenant's moving expenses (which contract may contain a provision that the right to such expenses shall expire after 120 days from the date of issuance of the Certificate of Exemption); or
(iii) A lease executed between the owner(s) of the building and the tenant for either one year or, as to elderly or disabled tenants, on the terms set forth in Section 1391(c) of this Code; or
(iv) A statement by the applicant that the tenant has been offered each of the tenant rights set forth in this subsection, but has failed to exercise any of those rights.
In every contract and lease entered into pursuant to this Section, every owner of the building shall expressly waive the right to assert as a defense to any legal action brought by a tenant for violation of the contract or lease the claim that the contract is unenforceable because it was not based on consideration provided by the tenant.
(g) If the applicant has complied with the requirements of this Section governing tenant rights, the Director shall issue the Certificate of Exemption; provided, however, that if any tenant or occupant of the building disputes the validity of that action on the grounds that tenant rights have not been provided as required herein, the Director of a designee shall conduct a hearing, after providing notice to the applicant and the occupant of each unit, in order to determine whether all such rights have been provided. The Certificate of Exemption shall not be issued unless the Director makes the determination that such rights have been provided.
(h) All decisions of the director made pursuant to this Section are final administrative determinations.
(i) A subdivider, having applied for and been granted a Certificate of Exemption under this Section 1397 and Section 66412(h) of SMA may elect to file a parcel or final map for recordation, in which case such parcel or final map shall be filed with the Department of Public Works for the sole purpose of recordation. Unless the subdivider requests approval of such data by the County Surveyor, it shall bear a certificate on the title sheet of the map, signed by the County Surveyor, certifying that this map is filed under provisions of the Certificate of Exemption procedure for the sole purpose of recordation, and that approval of the technical and engineering data shown thereon is not implied. Such parcel or final map shall be signed by all parties having any record title interest in the real property subdivided. If the map is not signed by all of the stockholders, the person or persons signing shall produce evidence satisfactory to the Director that they are authorized to sign on behalf of the stock cooperative.
(j) A fee of $500 shall be charged for investigating and processing an application for Certificate of Exemption for converting a stock cooperative consisting of four units or less to condominiums and all other costs incidental thereto.
A fee of $800 shall be charged for investigating and processing an application for Certificate of Exemption for converting a stock cooperative consisting of five units or more to condominiums and all other costs incidental thereto.
(k) A fee of $200 shall be charged for processing and filing a parcel or final map, excluding any recordation fee charged by the Office of the Recorder; provided, however, that if the subdivider requests approval of the technical and engineering data shown on a parcel or final map, the fee shall be the same as that charged for the processing and filing of a condominium map.
(l) Fees charged under Subsections (j) and (k) above shall be payable to the Department of Public Works and shall be paid at the time of filing the application for Certificate of Exemption, or at the time of filing the parcel or final map, whichever is applicable. Said fees shall be nonrefundable.
(m) Funds received under Subsections (j) and (k) above shall be deposited in the Subdivision Fund created by Section 1315(c) of this Code and shall be governed by the provisions specified therein.
(n) Section 1315(b) of this Code shall be applicable to the payment of fees under Section 1397 of said Code as well.
(Added by Ord. 289-85, App. 6/13/85; amended by Ord. 284-04, File No. 041355, App. 12/14/2004)
ARTICLE 10:
CONSISTENCY WITH STATE LAW
Sec. 1398.Subdivision Map Act Provisions.
SEC. 1398. SUBDIVISION MAP ACT PROVISIONS.
If any Section, Subsection, sentence or provision of this Code is ruled inconsistent with provisions of the Subdivision Map Act of the State of California as a result of passage of any Senate or Assembly bills amending said Act, such said Section, Subsection, sentence or provision shall be deemed to have been amended to comply with said Act, so as to bring the intent of this Code in conformance therewith. Notwithstanding the above, such said amendment or amendments shall not in any way invalidate or change any other portion of this Code.
(Added by Ord. 86-81, App. 2/20/81)
DIVISION 11:
LIMITED EQUITY HOUSING COOPERATIVE CONVERSIONS
Sec. 1399.1.Purpose.Sec. 1399.2.Modification to Existing Code.Sec. 1399.3.Definitions.Sec. 1399.4.Application.Sec. 1399.5.Limitation on Number of Conversions.Sec. 1399.6.Mayor's Office of Housing:Certificate of Clearance; Conversion Oversight and Monitoring.Sec. 1399.7.Administrative FeesSec. 1399.8.Tenant Purchase Rights.Sec. 1399.8ATenant Lifetime Lease Rights.Sec. 1399.9.Formula for Determining Initial Purchase Price of Member Share and Member Carrying Charge for Qualifying Households.Sec. 1399.10.Subdivider's Notice of Intent to Convert.Sec. 1399.11.Tenant Opt-In.Sec. 1399.13.Sale of Vacant Units.Sec. 1399.15.Intent to Purchase Form.Sec. 1399.16.Income Certification.Sec. 1399.17.Additions and Deletions to the Application Packet for Subdivisions Under this Article.Sec. 1399.18.Action on Application Packet; Conditions of Approval.Sec. 1399.21.Resale Formula.Sec. 1399.22.Final Maps and Parcel Maps; Deed Restrictions.
SEC. 1399.1. PURPOSE.
This Article 11 is enacted to establish a method for converting parcels containing 2 or more existing residential units into limited equity housing cooperatives. The conversions allowable under this Article 11 are intended to:
(a) promote the expansion of residential ownership opportunities for existing tenants by making conversions into limited equity housing cooperatives possible at a level they can afford because limited equity housing cooperatives are widely recognized as vehicles to:
(1) provide affordable home ownership opportunities for very low and low-income individuals and families.
(2) allow low-income individuals and families the ability to acquire a limited ownership interest in a building.
(3) participate, through the voting rights granted to each share owner, in the management of the limited equity cooperative, and
(4) restrict the annual appreciation of membership shares to increases not to exceed 10 percent of the original consideration paid for the share in order to provide appreciation for the share owner and continued affordability for other low-income households at resale;
(b) balance the interests of home ownership with the need to protect existing tenants from displacement;
(c) increase the availability of affordable home ownership opportunities citywide;
(d) target affordability levels that reflect the needs and income distribution of the City's residents; and
(e) improve the physical condition of the converted housing stock without fueling neighborhood gentrification.
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
SEC. 1399.2. MODIFICATION TO EXISTING CODE.
This Article modifies applicable provisions of the San Francisco Subdivision Code ("Code") for all conversion applications submitted under Section 1399.17. Article 9 of the Code does not apply to conversions to stock cooperatives under this Article except as expressly noted herein, but would apply in the event that a stock cooperative formed under this Article seeks to convert to a condominium. The provisions of Sections 1332(a), 1341 and 1385 of the Code do not apply to conversions under this Article. Subdivisions permitted by this Article shall not constitute an increase in the limits of Section 1396 for purposes of Sections 1341A(2) or 1385A(2).
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
SEC. 1399.3. DEFINITIONS.
In addition to the definitions in Section 1308, the definitions below shall govern this Article. To the extent that there is a conflict between the definitions below and those in Section 1308, the definitions in this Section control.
(a) "Carrying Charge" shall refer to the sole monthly charge to Resident Members covering that Resident Member's share of the operating and maintenance costs including, but not limited to, debt service on mortgages held by the Limited Equity Housing Cooperative, property taxes, management fees, maintenance costs, insurance premiums, common utilities, and contributions to reserve funds. Carrying Charge shall not refer to utilities solely attributable to the unit occupied by the Resident Member.
(b) "Department" shall refer to the Department of Public Works.
(c) "Director" shall refer to the Director of the Department of Public Works.
(d) "Limited Equity Housing Cooperative" shall refer to a non profit public benefit corporation formed as a limited equity housing cooperative as defined under California Civil Code section 1351(m) and California Health and Safety Code section 33007.5.
(e) "Maximum Allowable Allocation" shall mean the maximum number of unit conversions permitted per year, beginning on June 1st of each year, and shall equal 200 units per year plus any unused allocation from the previous year. Notwithstanding the foregoing, the number of unit conversions under this Article shall not exceed 400 in any year. Units or member shares located in City-owned buildings shall not be counted as part of the Maximum Allowable Allocation.
(f) "Maximum Annual Rent" shall mean the maximum rent that a Limited Equity Housing Cooperative may charge any Resident Tenant who is also a Qualifying Household as rent or any Member who is also a Qualifying Household as an annual Carrying Charge for the calendar year as published by the Mayor's Office of Housing. The maximum annual rent for a unit of the size indicated below shall be no more than 30 percent of the annual gross income for a Qualifying Household as defined in this Section, and as adjusted for the household size indicated below as of the first date of the tenancy or purchase of the Member Share:
Number of BedroomsNumber of Persons in Household0112233445
(g) "Member Share" shall refer to a share of stock in the Limited Equity Housing Cooperative that provides the owner(s) with an exclusive right of occupancy to a portion of the residential property converted under this Article.
(h) "Qualifying Household" shall refer to the residents of a unit in the residential property to be converted who, taken together as a household, earn less than eighty (80) percent of the San Francisco Median Income, as defined by the San Francisco Mayor's Office of Housing, and at least one of whom has occupied the unit as his or her primary residence for at least one year prior to the date of submission of the Certificate of Clearance.
(i) "Permitted Eviction" shall refer to any attempt to terminate a tenancy of a Resident Tenant pursuant to San Francisco Administrative Code Section 37.9(a)(1) ñ (4), (6), and (7).
(j) "Resident Member" shall refer to a resident of the Limited Equity Housing Cooperative who has purchased a Member Share in the Limited Equity Cooperative.
(k) "Resident Tenant" shall refer to a tenant of the Limited Equity Cooperative who has entered into a lease with the Limited Equity Housing Cooperative pursuant to section 1399.8A.
(l) "Subdivider" shall mean, for purposes of this Article, a nonprofit public benefit corporation formed pursuant to California Corporations Code Section 5110 and their successors in interest.
(m) "Total Development Cost" shall mean, for the purposes of this Article, all costs relating to the purchase, improvement, rehabilitation, upgrade, and conversion of the property to be converted under this Article based upon a budget submitted to and approved by the Mayor's Office of Housing in the application for a Certificate of Clearance.
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
SEC. 1399.4. APPLICATION.
This Article shall apply to all applications for initial conversion of residential buildings with 2 units or more into a Limited Equity Housing Cooperative, filed on or after the effective date of this ordinance. The Subdivider for an application for initial conversion under this Article must be a non-profit public benefit corporation formed under California Corporation Code Section 5110. Applications for initial conversion shall be filed with the Department of Public Works in accordance with the provisions of Section 1399.17 of this Article.
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
SEC. 1399.5. LIMITATION ON NUMBER OF CONVERSIONS.
(a) The Department shall not, under this Article, approve applications for conversions of more than the Maximum Allowable Allocation each year, beginning on June 1. The Department shall carry over any unused allocation from year to year. Units or member shares located in City-owned buildings shall not be counted as part of the Maximum Allowable Allocation and may convert under this Article 11 regardless of the number of units.
(b) The Department shall keep a list of complete applications in the order that the Department deems the application complete until the cumulative number of units reaches or would exceed the Maximum Allowable Allocation. If a project is within the Maximum Allowable Allocation then the Department shall accept the application for processing. In the event that the number of units represented by completed applications exceeds the Maximum Allowable Allocation, those buildings not accepted for processing by the Department shall be placed on a waiting list and, unless otherwise withdrawn by the Subdivider, shall be given priority in the order that the applications were deemed complete for the following year's Maximum Allowable Allocation.
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
SEC. 1399.6. MAYOR'S OFFICE OF HOUSING: CERTIFICATE OF CLEARANCE; CONVERSION OVERSIGHT AND MONITORING.
The Mayor's Office of Housing shall have the following responsibilities under this ordinance:
(a) Certificate of Clearance: The Department of Public Works shall not deem an application for conversion under this ordinance complete unless the applicant includes a "Certificate of Clearance" issued by the Mayor's Office of Housing for the application. MOH must issue a Certificate of Clearance to the Subdivider within (i) 7 days of receiving an application if the Subdivider or Limited Equity Housing Cooperative is a recipient of funding under the Real Ownership Opportunities for Tenants program or (ii) 30 days of receiving an application from any other Subdivider or Limited Equity Housing Cooperative if all of the following criteria have been met:
(1) The Subdivider has submitted income verification information for all households in the building pursuant to Section 1399.16 and the Mayor's Office of Housing determines that at least 50% of the existing households at the time of submission are Qualifying Households;
(2) Two-thirds of the Qualifying Households have submitted an executed Intention to Purchase form;
(3) At least a majority of all households in the building at the time of application submission have submitted an executed Intention to Purchase form;
(4) The following offer has been made to any tenant who, in the two years prior to the Subdivider's application for a Certificate of Clearance, surrendered their tenancy or were evicted due to a notice to quit under San Francisco Rent Ordinance Sections 37.9(a)(8) ñ (15) and who has resided in the building for at least one year prior to their surrender of tenancy or eviction: The former tenant shall receive the option to purchase a member share and occupy a unit appropriate to the size of the household at the time the household surrendered their tenancy under the same terms as a tenant in the building at the time of application. If the Subdivider, after making a reasonably diligent search, cannot locate a tenant, the Subdivider shall document its efforts to reach the tenant and shall request a waiver from this subsection. MOH shall evaluate whether all reasonable measures have been taken to locate the tenant and, if it finds that they have, shall grant such a waiver.
(5) The Subdivider and the Mayor's Office of Housing have entered into a binding agreement to record a notice of special restrictions against the property as a condition of subdivision that imposes: (A) all requirements of California Business and Professions Code Section 11003.4(b)(3), (B) the resale restrictions set forth in Section 1399.21(C) Carrying Charge restrictions set forth in Section 1399.9, (D) subleasing restrictions set forth in Section 1399.6(b)(3), and (E) rent restrictions for Resident Tenants set forth in Section 1399.8A. The notice of special restrictions shall run with the land and be binding on the Subdivider, any future Limited Equity Housing Cooperative, or any other successor in interest.
(6) A Limited Equity Housing Cooperative has been formed and the Limited Equity Housing Cooperative holds a fee simple interest in the parcel to be converted or entered into a lease of no less than 99 years, or the Subdivider covenants under the agreement above to transfer a fee simple interest to or enter into a lease of no less than 99 years with a duly formed Limited Equity Housing Cooperative.
(7) A rental history detailing for each unit the size in square feet, the number of bedrooms, the current or last rental rate, and the names of the current tenant or tenants for each unit, including the names of all occupants 18 years of age or older, to the extent that such information is known or can be made known to the Subdivider.
(8) A budget detailing the Total Development Cost.
(b) Ongoing Monitoring: On an ongoing basis, the Mayor's Office of Housing shall perform the following monitoring activities:
(1) Verify that vacated units purchased by households that are Qualifying Households at the time of the application for a Certificate of Clearance are re-sold to Qualifying Households;
(2) Before a proposed resale of a member share, verify that the resale price of the Member Share complies with the requirements of this ordinance;
(3) Ensure that each Limited Equity Housing Cooperative converting under this section submit an annual report certifying the following:
(A) For Resident Members who purchased their shares as a Qualified Household, (i) the cooperative is their only residence and (ii) they have not subleased their unit for more than 12 months in the previous 3 year period;
(B) For Resident Tenants, (i) the cooperative is their only residence; and (ii) they have not subleased their unit unless approved in writing by the Limited Equity Housing Cooperative.
(4) Prepare an annual monitoring report to the Board of Supervisors that analyzes: (A) the number of conversions per year; (B) the type, location, quantity, affordability, and number of resales of units in each project converted; (C) a list of projects converted under the ordinance including address and contact information; (D) known barriers and issues related to conversion under the ordinance; (E) effectiveness of the ordinance in serving low-income households; and (F) recommendations to the Board for improvements or legislative amendments.
(c) Income Verification: The Mayor's Office of Housing shall perform income verification as detailed in Section 1399.16.
(d) The Director of the Mayor's Office of Housing may issue administrative citations for violations of this ordinance. San Francisco Administrative Code Chapter 100, "Procedures Governing the Imposition of Administrative Fines," is hereby incorporated in its entirety and shall govern the procedure for imposition, enforcement, collection, and administrative review of administrative citations issued to enforce the Sections set forth in this Subsection 1344 and related provisions of the Subdivision Code. Nothing in this Section shall prevent the City from pursuing other remedies provided by law in addition to or instead of the fines provided for here.
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
SEC. 1399.7. ADMINISTRATIVE FEES
(a) The Department of Public Works, on behalf of itself and the Mayor's Office of Housing, is authorized to collect fees under Section 1315 of this Code which shall be applicable to all applications for initial conversion filed under this Article 11.
(b) The Department of Public Works shall be additionally authorized to collect fees on behalf of the Mayor's Office of Housing in the amount of $50 per unit for reviewing the tenants' income documentation and issuing an Income Certificate as provided in Section 1399.16 of the Code.
(c) Within one year after the date this Article becomes effective, and every three years thereafter, the Director shall review the proceeds of the administrative fee, and the costs of administering and monitoring Article 11 and shall prepare a report to the Board of Supervisors. Based upon the result of the review, the Director shall recommend to the Board of Supervisors any necessary adjustment to the fee structure and any necessary legislation to make the processing of such applications more efficient. In the event that the fee proceeds have exceeded, or are anticipated to exceed, the costs of administering and monitoring Article 11, the Director shall recommend legislation to the Board of Supervisors that modifies the applicable fee to ensure that fee proceeds do not exceed the costs of administration. In the event that fee proceeds have under-collected, or are anticipated to under-collect, the Director may recommend legislation to the Board of Supervisors that modifies the applicable fee to more accurately recover the costs for administration and monitoring.
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
SEC. 1399.8. - TENANT PURCHASE RIGHTS.
(a) Each tenant in a building that is converted subject to this Article has the right to purchase a Member Share at a price not to exceed an amount determined by the prescribed purchase price formula, as further defined in Section 1399.9, provided that:
(1) The purchasing tenant continues to reside in the unit from the date the application packet as provided in Section 1399.17 is filed up to and including the date of close of escrow on the purchase.
(2) Prior to the execution of a purchase and sale agreement, the purchasing tenant obtains income certification as provided in Section 1399.16.
(3) If another tenant residing in the same unit with a purchasing tenant does not jointly purchase a Member Share, the purchasing tenant may take possession of his or her unit subject to the lifetime lease rights of the non-purchasing tenant, as provided in Section 1399.8A.
(4) For any tenant to accrue a right to purchase, that tenant must have lived in the building for at least 1 year prior to the filing of the Certificate of Clearance with the Mayor's Office of Housing.
(b) A tenant may not assign his or her right to purchase a Member Share except that a tenant may jointly purchase a Member Share with another person or persons who reside in the unit with that tenant.
(c) A purchasing tenant shall not be made to execute a purchase and sale agreement or to make a non-refundable deposit toward the purchase of a Member Share prior to (i) the issuance of a conditional or final subdivision public report for the property by the California Department of Real Estate or (ii) the filing of a subdivision public reporting exemption with the Department of Real Estate under California Business and Professions Code Section 11003.4 and the recording of a Final Map under this Article.
(d) Within 30 calendar days following the issuance of the final subdivision public report by the State Department of Real Estate, the Subdivider shall notify each tenant in writing of the right to purchase a Member Share. The written notice shall be served in person or by certified or registered mail, and shall include the price at which the Member Share may be purchased and the date on which the offering period expires.
(e) To effectuate a purchase, a purchasing tenant must:
(1) execute a binding purchase and sale agreement that includes all material terms negotiated between the Subdivider and the tenant, and such other usual and customary terms found in an agreement for the purchase and sale of residential property in the City and County of San Francisco, in accordance with the requirements of the California Department of Real Estate and the final subdivision public report authorizing the sale of units in the property, restrictions on resale price consistent with the provisions of Section 1399.22 of this Article 11, and first right-of-refusal for the Limited Equity Housing Cooperative to repurchase the Member Share.
(2) execute an occupancy agreement with the Limited Equity Housing Cooperative that includes (i) a description of that portion of the Limited Equity Housing Cooperative to which the Resident Member has an exclusive right of occupancy, provided, however, (ii) a right by the Limited Equity Housing Cooperative to transfer the Resident Member to another unit in the Limited Equity Housing Cooperative for the purpose of alleviating overcrowding or underutilization of the Resident Member's existing unit, (iii) a monthly Carrying Charge for that portion as restricted by Section 1399.9, (iv) the subleasing restrictions set forth in Section 1399.6(b)(3), and (v) such other covenants and conditions conducive to maintaining the property in good, clean and habitable condition.
(f) Notwithstanding the foregoing, the Subdivider or Limited Equity Housing Cooperative may execute a conditional agreement to sell or finance Member Shares (including an agreement requiring a non-refundable deposit) as provided in California Government Code section 66499.30(e) so long as the following are completed: (i) filing of a subdivision public reporting exemption with the Department of Real Estate as set forth in Section 1399.8(a) above, (ii) issuance of a Certificate of Clearance by the Mayor's Office of Housing, and (iii) inclusion within the agreement to sell or finance Member Shares the restrictions set forth in subsection (e) above.
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
SEC. 1399.8A TENANT LIFETIME LEASE RIGHTS.
(a) A lifetime lease arises as to each tenant who is qualified to purchase under Section 1399.8 but who has not exercised his or her right to do so on the date that the subdivision map for the property is recorded. In consideration of the benefit of this Article 11 to the Subdivider and any successors in interest from permitting the conversion of buildings of 2 units or more, the Subdivider and all successors in interest agree to waive any right to any rent increase other than as provided in this subsection that may be permitted by any other provision of law, and to waive any claim against the City of a taking under the California or United States Constitution based on the lifetime lease provision. These waivers will be binding on any heirs, successors in interest, or assigns.
(b) The initial rent payable under the lifetime lease shall not exceed the rent charged on the date the application for the Certificate of Clearance is submitted, plus ten (10) percent. Subsequent annual rent increases may not exceed the average annual percentage increase in Carrying Charges paid by all Resident Members. At no time may rent for a unit occupied by a Qualifying Household exceed the Maximum Annual Rent as defined herein. A tenant receiving a lifetime lease under this Section 1399.8A may exempt himself or herself from the restrictions on rent imposed by this limitation at any time if the tenant enters into an express agreement waiving the requirements of this subsection. A Subdivider or Limited Equity Housing Cooperative that is applying to or has converted under this ordinance may not evict a Resident Tenant based on his or her refusal to enter into such a waiver agreement. Any written waiver under this subsection 1399.8A(b) shall be invalid and unenforceable unless the following statement is printed in bold and all capital letters on the first line of the written waiver agreement:
REFUSAL TO ENTER INTO THIS WAIVER AGREEMENT WILL NOT TERMINATE YOUR RIGHT TO CONTINUE TO OCCUPY YOUR UNIT UNDER A LIFETIME LEASE WITH THE LIMITED EQUITY HOUSING COOPERATIVE. REFUSAL TO ENTER INTO THIS WAIVER AGREEMENT CANNOT BE USED AS A BASIS FOR EVICTING YOU.
(c) The lifetime lease shall contain a provision allowing the Resident Tenant to terminate the lease and vacate the unit upon thirty days written notice to the landlord.
(d) The lifetime lease shall terminate on the death of the Resident Tenant or the date on which the tenant ceases to actually and continuously reside in the unit as his or her sole residence, whichever occurs first. The landlord may terminate the lease during its term only for a Permitted Eviction.
(e) There shall be no decrease in maintenance of the unit occupied by a Resident Tenant under a lifetime lease.
(f) If, on the date the application packet as provided in Section 1399.17 is submitted, the tenant jointly occupies the unit with a person who is not a tenant or a Resident Member but who is a related party, then, at the request of the tenant, the related party shall become a tenant under the lifetime lease. A "related party" is an adult who is a grandparent, grandchild, parent, child, brother, sister, or spouse of the tenant, or person registered as a domestic partner of the tenant pursuant to San Francisco Administrative Code 62.1-62.8, and who, for purposes of this ordinance, has occupied the unit for at least one year prior to the date of submission of the application for a Certificate of Clearance.
(g) A tenant's rights under a lifetime lease are not transferable, and any attempted transfer shall be of no force or effect. The foregoing does not prevent a Resident Tenant with a lifetime lease from allowing other persons to occupy the unit with him or her to the same extent as allowed Resident Members, provided that (i) the Resident Tenant continues to actually reside in the unit as his or her principal residence, and (ii) no other person residing in the unit who is not a party to the lifetime lease shall have the rights of a Resident Tenant. A Resident Tenant must provide the landlord with the name of each person who occupies the unit with the tenant as well as emergency contact information for that person in writing. The Resident Tenant must also give any other occupant of the unit a written notice that the occupant is not a tenant and has no rights under the lifetime lease.
(h) The Resident Member occupying a unit subject to a lifetime lease or his or her successor in interest may require a lifetime lease tenant to enter into a written agreement documenting the tenant's lifetime lease rights. The lifetime lease shall include the terms set forth in this Section and shall also include the terms of the existing written rental agreement between the landlord and the tenant to the extent those terms do not conflict with this Section. If there is no existing written rental agreement, the written agreement shall include the usual and customary terms of residential rental agreements in the City and County of San Francisco that do not conflict with the terms of this Section. Where the Resident Tenant has the right to use certain common areas of the property, as, for example, parking or storage, or the right to have pets, those rights shall be included in the written agreement.
(i) A Notice of Right to Lifetime Lease shall be in the following form, printed in 12 point type or larger:
NOTICE OF RIGHT TO LIFETIME LEASE
TO: (name of tenant)
RE: (address of unit)
This Notice of Right to Lifetime Lease is given to you as required by Section 1399.8A of the San Francisco Subdivision Code. If the property in which you live becomes a Limited Equity Housing Cooperative and you do not purchase a members share, you will have a lifetime lease.
A. The lifetime lease will start on the date that the subdivision map for the Limited Equity Housing Cooperative is recorded with the San Francisco Recorder. In consideration of the benefit of this Article 11 to the Subdivider and any successors in interest from permitting the conversion of buildings of 2 units or more, the Subdivider and all subsequent owners shall agree to waive any right to any rent increase other than as provided in Article 11 that may be permitted by any other provision of law, and to waive any claim against the City of a taking under the California or United States Constitution based on the lifetime lease provision. The waivers will be binding on any heirs, successors in interest, or assigns.
B. The following terms will be incorporated into your lifetime lease.
1. The initial rent payable under the lifetime lease shall not exceed the rent charged on the date the application for the Certificate of Clearance is submitted, plus ten (10) percent. Subsequent annual rent increases may not exceed the average annual percentage increase in Carrying Charges paid by all Resident Members. At no time may rent for a unit occupied by a Qualifying Household exceed the Maximum Annual Rent as provided in the San Francisco Subdivision Code Section 1399.3.
2. You have a right to terminate your lifetime lease at any time on thirty days prior written notice to your landlord.
3. The lifetime lease automatically terminates only on the death of the last person named as a tenant in the lease or when you no longer actually and continuously reside in the unit as your sole place of residence.
4. Your landlord may terminate the lifetime lease during its term only if:
a. you fail to pay the rent to which the landlord is lawfully entitled under the oral or written agreement between you and the landlord or you habitually pay the rent late or give checks which are frequently returned because there are insufficient funds in the checking account;
b. you have violated a lawful obligation or covenant of tenancy other than the obligation to surrender possession upon proper notice and you have failed to cure the violation after having received written notice of it from the landlord; provided that notwithstanding any lease provision to the contrary, your landlord shall not endeavor to recover possession of your unit as a result of your subletting the unit if your landlord has unreasonably withheld the right to sublet following a written request from you, so long as you continue to reside in the rental unit and the sublet constitutes a one-for-one replacement of the departing tenant(s) as set forth in Rent Board Regulations 6.15A(d) and 6.15B(b).
c. you are committing or permitting to exist a nuisance in or are causing substantial damage to the rental unit, or you are creating a substantial interference with the comfort, safety or enjoyment of the landlord or tenants in the building;
d. you are using or permitting the unit to be used for any illegal purpose;
e. you have, after written notice to cease, refused the landlord access to the unit as required by state or local law; or
f. you are a subtenant holding at the end of the term of an oral or written lease not approved by the landlord.
5. If, on the date the application for conversion is submitted to the San Francisco Department of Public Works, one of the following persons lives with you at the unit and is an adult and who, for purposes of this ordinance, has occupied the unit for at least one year prior to the date of submission of the application for a Certificate of Clearance, at your request the landlord must name that person as a tenant on the lifetime lease, even if the landlord has not previously accepted that person as a tenant: your grandparent, grandchild, parent, child, brother, sister, spouse, or domestic partner.
6. You may not assign or transfer the lifetime lease. However, you may allow other persons to occupy the unit with you to the same extent as allowed under the existing agreement between you and your landlord so long as you actually and continually reside in the unit as your sole place of residence and you give the landlord the name of each person who resides in the unit with you and emergency contact information for that person. You must give any person who resides in the unit with you notice that he or she is not a tenant and has no rights under the lifetime lease.
7. At your landlord's request, you must enter into a written lease with your landlord that includes those terms of your existing rental agreement that do not conflict with your rights under the lifetime lease. If you do not have a written rental agreement, the written lifetime lease will contain provisions usually and customarily found in a residential rental agreement in San Francisco that do not conflict with your rights under the lifetime lease.
Date:____________
____________
Signature of Subdivider
(j) If any provision of this Section 1399.8A is found to be unenforceable in a court of law, then the Department shall no longer accept and cease to process any applications for conversion submitted under this Article XI as of the date of the determination by the court.
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
SEC. 1399.9 FORMULA FOR DETERMINING INITIAL PURCHASE PRICE OF MEMBER SHARE AND MEMBER CARRYING CHARGE FOR QUALIFYING HOUSEHOLDS.
(a) The initial purchase price for each Member Share under this Article shall be determined by a formula as specified in this Section.
(b) The initial purchase price at conversion shall be set as of the date of the Subdivider's Notice of Intent to Convert and shall not exceed the following:
(1) For purchasing tenants who are members of a Qualifying Household, the initial purchase price may not exceed: (10% ◊ [Total Development Cost]) ˜ [total number of units to be converted].
(2) For all other purchasing tenants there is no limit on the initial purchase price for a member share.
(c) The Carrying Charge for Resident Members who reside in a Qualifying Household shall not exceed the Maximum Annual Rent as provided herein.
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
SEC. 1399.10. SUBDIVIDER'S NOTICE OF INTENT TO CONVERT.
(a) For projects receiving funding under the Real Ownership Opportunities program, the Subdivider must provide a written Notice of Intent to Convert as provided in California Government Code sections 66452.8 and 66452.9 no later than 60 days prior to filing the application packet under Section 1399.17. For all other projects, the Subdivider shall provide a written Notice of Intent to Convert to each of the tenants in the building as provided in California Government Code sections 66452.8 and 66452.9 as applicable, outlining the tenant's rights under this Code, and the method by which the purchase price for a Member Share shall be calculated no later than 60 days prior to filing the application packet under Section 1399.17 ("Conversion Notice").
(b) Subdividers required to provide a Conversion Notice shall indicate the initial purchase price as provided in Section 1399.9 in the Conversion Notice.
(d) Subdividers required to provide a Conversion Notice shall attach to the Conversion Notice an "Intent to Purchase" form and a "Notice of Right to Lifetime Lease" form, both to be executed by the tenant or tenants who intend to purchase. The Intent to Purchase form shall be in the form provided in Section 1399.15. The Notice of Right to Lifetime Lease shall be in the form provided in Section 1399.8A(i).
(e) In the event that a Subdivider required to provide a Conversion Notice has not been able to obtain a majority "opt-in" response along with the required Income Certificates after providing proper notice, the Subdivider may extend the compliance deadlines by sending an extension notice to all of the tenants.
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
SEC. 1399.11. TENANT OPT-IN.
(a) Within 30-days of the date of the Conversion Notice, a tenant or tenants who wish to purchase a Member Share shall "opt-in" by providing to the Subdivider a completed, signed and notarized "Intent to Purchase" form and an "Income Certificate" from the Mayor's Office of Housing verifying their qualified income level, as provided in Section 1399.16.
(b) Prior to entering into a Purchase and Sale Agreement for a Member Share, a prospective buyer must provide proof of a valid Income Certificate to the seller.
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
SEC. 1399.13. SALE OF VACANT UNITS.
The following shall apply to the sale of vacant units in a building:
(a) Beginning at the issuance by the Mayor's Office of Housing of a Certificate of Clearance until at least 66% of Member Shares representing the total number of converted units are bought by Qualifying Households, Member Shares must be sold (or conditionally sold) first to Qualifying Households at the price established in Section 1399.9. The Subdivider or Limited Equity Housing Cooperative may adjust the purchase price annually up to an inflation allowance at a rate determined by the Mayor's Office of Housing and published on their website but which shall not exceed a 10% annual increase on the price initially established in Section 1399.9 on the date an application for a Certificate of Clearance was submitted.
(b) After at least 66% of Member Shares representing the total number of converted units are bought by Qualifying Households, the Limited Equity Housing Cooperative may sell Member Shares at any price.
(c) Existing tenants living in overcrowded conditions within a building subject to conversion under this Article, shall be given the right of first refusal to purchase a Member Share and occupy any vacant units at the time of initial conversion. In the event that there are multiple tenants competing for a Member Share and the right to occupy a vacant unit, the Subdivider shall conduct a lottery among the interested and eligible candidates. For purposes of this Section, "overcrowded conditions" shall be defined as existing households containing more than 2 persons per bedroom plus one.
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
SEC. 1399.15 INTENT TO PURCHASE FORM.
(a) An "Intent to Purchase" form required to establish majority tenant participation for a conversion under this Article shall be in the following form, in 12 point type or larger:
Intent to Purchase
The undersigned states that:
1. I reside at ____________, Unit ____________ and I have received a Conversion Notice dated ____________ from ____________. By signing below, I indicate my intent to purchase a Member Share upon its authorized conversion from a rental unit to a limited equity housing cooperative in accordance with the purchase price formula stated on the Conversion Notice.
2. I represent and warrant that the above referenced address is my sole place of residence.
3. I represent and warrant that the following are the names of all adults over the age of 18 that are presently residing in my unit, whether or not they have signed this Intent to Purchase:
_____________________________________________
_____________________________________________
_____________________________________________
4. I understand that any adult person who lives in my unit with me, who does not purchase a Member Share with me has a right to remain in the unit under a lifetime lease once I become the owner of a Member Share with the right to occupy the unit.
5. I understand that I have 20 days from the date of this Intent to Purchase to provide sufficient income documentation to the Mayor's Office of Housing in order to obtain a Certificate of Income Verification. The Mayor's Office of Housing will have 7 days to provide me with a Certificate after receipt of all required documentation. If I do not provide a copy of the Income Certificate to the Subdivider within 30 days of the date of the Conversion Notice, this Intent to Purchase will be deemed withdrawn.
6. I understand that if I purchase a Member Share, it will be subject to resale price restrictions to keep it affordable to future buyers.
7. I understand that signing this Intent to Purchase does not create a contractual obligation to purchase a Member Share. However, as of this date, it is my intention to purchase a Member Share when it is authorized for conversion and made available for sale.
8. I understand that this Intent to Purchase will be filed with the City and County of San Francisco in order to establish that the building qualifies for conversion, and that my signed Intent to Purchase is irrevocable for establishing that purpose unless my signature was obtained by fraud or duress.
9. I have been advised that I have a right to seek legal counsel or other professional assistance in connection with my rights to purchase and have either obtained such assistance or have waived my right to do so.
I/We declare, under penalty of perjury, that the foregoing statements are true and correct.
Signature:____________Print Name:____________Date:____________
Signature:____________Print Name:____________Date:____________
Signature:____________Print Name:____________Date:____________
Signature:____________Print Name:____________Date:____________
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
SEC. 1399.16. INCOME CERTIFICATION.
(a) Each prospective buyer of a Member Share subject to this Article 11 must register with the Mayor's Office of Housing and provide sufficient documentation of income to determine whether the tenant's household constitutes a Qualifying Household.
(b) The Mayor's Office of Housing shall verify the income information provided and shall issue a Certificate of Income Verification ("Income Certificate") which shall indicate whether the tenant is a member of a Qualify Household. The Mayor's Office of Housing shall promulgate rules and regulations regarding the process of determining whether a household qualifies as a Qualifying Household.
(c) The Mayor's Office of Housing shall provide an Income Certificate to the buyer within 7 days of receipt of the information required by Section 1399.16.(b).
(Added by Ord. 319-08, File No. 081513, App. 12/19/2008)
SEC. 1399.17. ADDITIONS AND DELETIONS TO THE APPLICATION PACKET FOR SUBDIVISIONS UNDER THIS ARTICLE.
(a) Application packets for initial conversions under this Article 11 shall contain the following items in addition to the requirements of Sections 1322, 1323, 1324 and, where applicable, 1333.2 of this Code.
(1) A Certificate of Clearance issued by the Mayor's Office of Housing within the last 60 days;
(2) Copies of each Notice of Intent to Convert or Conversion Notice sent to the tenants in the building, showing the initial purchase price as provided in Section 1399.9 applicable to each Member Share. Each Conversion Notice shall contain a description of the rights of tenants as herein provided, including the right to purchase a Member Share and the right of all non-purchasing tenants to a lifetime lease;
(3) A declaration from the Subdivider, executed under penalty of perjury, stating that every tenant has been offered the right to execute an Intent to Purchase with respect to a Member Share and all of the information in the application packet is true and correct to the best of the Subdivider's knowledge;
(4) A report of residential record ("3-R Report"), obtained from the Department of Building Inspection;