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San Francisco Exempts Office-to-Residential Conversions from Development Impact Fees Citywide

  • When: 2025/03/04
  • Address: Citywide, San Francisco, CA
  • City: San Francisco
  • State: CA
  • Category: Zoning Code Modification
  • Subcategory: Process updates
  • Asset Class: Mixed-Use
  • Property Type: Office-to-Residential
  • Planning Department: True

The San Francisco Board of Supervisors finally passed an ordinance to amend the Planning Code. This ordinance aims to exempt certain projects in the downtown area that convert non-residential uses to residential uses from development impact fees, including the Inclusionary Housing fee. It also removes the application deadline for the Commercial to Residential Adaptive Reuse Program. The ordinance affirms the Planning Department's determination under the California Environmental Quality Act and includes findings of consistency with the General Plan and the eight priority policies of Planning Code, Section 101.1, as well as findings of public necessity, convenience, and welfare pursuant to Planning Code, Section 302. This legislative change seeks to incentivize the conversion of underutilized office space into much-needed housing units within the city's core business districts. The fee waiver applies to projects in C-2 or C-3 zoning in the Northeastern part of the City, covering both changes of use within existing buildings and demolition of non-residential buildings for new residential construction. Projects approved before January 1, 2025, that have not yet pulled a First Construction Document, can benefit from this waiver. The Planning Commission may delegate authority to the Planning Director to approve non-significant modifications to existing conditions of approval.

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