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April 18, 2003


From the agenda of the Board of Supervisors for Tuesday, April 15, 2003:

5. 020592

[Modifying collection procedures for the Transit Impact, Housing, Child Care, Park and Inclusionary Housing Fees by transferring responsibility for collection and enforcement to the

Supervisors Peskin, McGoldrick, Daly, Maxwell, Dufty

Ordinance (1) amending the Planning Code by amending Sections 139, 313.1, 313.4, 313.5, 313.6, 313.7, 313.8, 313.9, 313.10, 314.1, 314.4, 314.5, 315.3 and 315.6 to transfer collection authority for in lieu fees collected for the Park Fund, the Jobs-Housing Linkage Program, Child Care Requirement and the Inclusionary Affordable Housing Program from the Controller to the Treasurer and conform collection procedures for these fees, and require that funds from the Child Care Capital Fund and the Downtown Park Fund be used to fund nexus studies for the Downtown Park Fee and the Child Care Fee; and (2) amending the Administrative Code by amending Sections 38.1, 38.3, 38.4, 38.5, 38.6, 38.8, 38.8.5, 38.9, 38.10, 38.11 and 38.45 to transfer collection of the Transit Impact Development Fee from the General Manager of the Public Utilities Commission to the Treasurer and conform collection and enforcement procedures for the fee.

3/18/2003, SUBSTITUTED. Supervisor Peskin submitted a substitute ordinance bearing new title and requested this item be scheduled for consideration at the March 2, 2003 meeting.

4/15/2003, AMENDED. Amended on page 5, line 23 by deleting "housing".

4/15/2003, PASSED ON FIRST READING AS AMENDED. Supervisors McGoldrick, Daly and Maxwell requested to be added as co-sponsors.


Board of Supervisors Gives Treasurer Leal OK to Go After Uncollected Development Impact Fees

Move Means Treasurer’s Office Could Bring City Millions More for Affordable Housing, Parks & Childcare

San Francisco, CA (April 16, 2003) - On Tuesday, April 15, 2003, the Board of Supervisors unanimously granted City Treasurer Susan Leal the authority to collect development impact fees - fees developers must pay when constructing new office, hotel, retail, and housing developments or converting existing buildings to new uses. The fees are imposed to offset the impacts of the new developments and are used to fund affordable housing, parks, childcare, and transit. The move could mean millions more for new affordable housing, parks, childcare services, and transit since $1 million - and likely much more - in uncollected development impact fees are currently owed to the City. The legislation will ensure fees are paid in full and on time so that the City can mitigate the impact of new development and building conversions.

“Especially in these tough financial times, I’m committed to going after development impact fees owed to the City because the money will fund new affordable housing, parks, additional transit routes, and expanded childcare for working parents,” said Treasurer Leal. “We’ve worked with Supervisors Peskin and McGoldrick and the Controller’s office for over a year to assume responsibility for collecting development impact fees and I’m grateful for the vote of confidence from the Board.”

The City collected over $12.5 million in development impact fees during fiscal year 2001-2002 and over $17.6 million the prior fiscal year. These funds are essential to offsetting the impacts of new development projects in the City. While the vast majority of fees have been collected, several developers received their building permits without paying the fee, leaving $1 million and likely much more, in uncollected fees.

Collection of the development impact fees is being consolidated in the Treasurer’s Office to provide uniformity to the process and to streamline collection efforts into the one City department with the expertise and know how in revenue collection. “The new legislation gives my department the authority to initiate liens against development projects that fail to pay the impact fees and provides for interest on unpaid fees to accrue at one and one-half percent per month. These changes will give my department the necessary tools to effectively collect any unpaid fees and ensure that all new fees are collected in a timely manner,” said Treasurer Leal. “The quality of local childcare and Muni and the amount of open space and affordable housing we have is dependent on our collection of these fees,” added Leal.