BOMA San Francisco Members
UPDATE - January 25, 2016
This ordinance was passed by the San Francisco Board of Supervisors on January 12th. The measure is currently awaiting action from Mayor Ed Lee.
A measure by Supervisor Norman Yee would increase the child care requirements for certain commercial and residential projects. The legislative digest is below. The funds generated from this impact fee may only be used to fund capital child care facilities.
Bottom Line for CRE Developments
Currently new downtown commercial developments are charged a $1 per gross square foot in lieu fee. If this legislation passes, the fee would increase to $1.57 per gross square foot. Also, the requirement would extend to commercial projects citywide and apply to new projects and existing buildings proposing the net addition of 25k (it was 50k) or more gross square feet of office or hotel space.
The big changes are for residential developments.
Ordinance amending the Planning Code to increase the Child Care In Lieu Fee for office and hotel development projects of up to $1.57 per gross square foot and apply the Fee to projects of 25,000 or more gross square feet; to impose a tiered Child Care Fee for residential development projects of up to $1.83 per gross square feet; to allow developers the option to provide onsite Small Family Daycare Homes in lieu of the fee; affirming the Planning Department’s determination under the California Environmental Quality Act; and making findings of consistency with the General Plan, and the eight priority policies of Planning Code, Section 101.1.
The Planning Code requires that office and hotel development projects of 50,000 or more gross square feet must meet certain Child Care Requirements, including the option to pay $1.00 per gross square feet. The Planning Code does not have a citywide requirement on residential development to meet Child Care requirements, but some Area Plans have community impact fees that include a fee for child care.
Amendments to Current Law
The Proposed Legislation will require that office and hotel development projects of 25,000 or more gross square feet meet certain Child Care Requirements and increases the in lieu fee to $1.57 per gross square feet. The Proposed Legislation will impose a new Child Care Fee for residential projects of $1.83 for projects containing 10 or more units and 50% of that amount or $0.91 for projects of up to 9 units. The Proposed Legislation provides for an option to provide on-site day care facilities and receive a full or partial waiver of the Fee. The Proposed Legislation also includes an option for a project sponsor who is already providing On- or Off-site Units under the Inclusionary Housing Ordinance to receive a full or partial waiver of the Fee if they designate one or more of those units as Designated Childcare Units that will be rented to a household operating a Small Family Daycare Home as defined in State law for at least 10 years. Background Information San Francisco conducted a Citywide Nexus Study dated March 2014 prepared by the consultant AECOM. The fee amounts in the Proposed Ordinance are based on the results of that analysis.