The city council finds and determines that in order to provide sufficient affordable housing to achieve the city’s goal of providing a full range of affordable housing options to residents of the city, in accordance with the standards established in the general plan, housing element, and other applicable plans and regulations, development projects identified in Section 8.69.040 shall pay a commercial linkage fee in order to mitigate the impacts of these development projects on affordable housing in the city.
(a) 
Encourage the development and availability of housing affordable to a broad range of households with varying income levels within the city as mandated by California Government Code Section 65580, et seq.
(b) 
Offset the demand for affordable housing that is created by new commercial development and mitigate impacts that accompany new commercial development by protecting the economic diversity of the city’s housing stock; reducing traffic, transit and related air quality impacts; promoting jobs/housing balance; and reducing the demands placed on transportation infrastructure in the region.
(c) 
Promote the city’s policy to promote the provision of housing by both the private and public sectors for all income groups in the community, as identified by the Housing Element of the general plan.
(d) 
Support the Housing Element goal of encouraging high quality residential development, as well as ensure a full range of affordable housing and the policies and actions that support this goal.
(e) 
Support the Housing Element goal of providing suitable, decent, and affordable housing for its residents.
(f) 
Support the guiding principle of the Housing Element that housing in South San Francisco supports increasing the range and diversity of housing options that will be an integral aspect of the city’s growth and development.
(g) 
Support the guiding principle of the Housing Element that South San Francisco values diversity and strives to ensure that all households have equal access to the city’s housing resources.
(h) 
Meet the housing needs identified by the Housing Element of the general plan.
(i) 
Encourage the production of the very low, low, and moderate-income units planned for by the Housing Element of the general plan.
(Ord. 1560 § 2, 2018)
The city council finds and determines that there is a reasonable relationship between the commercial linkage fee and the type of development projects to which the fee is imposed because the development projects that are subject to the fee outlined in this chapter will place additional demands on housing, specifically affordable housing, in the city. The proceeds collected as a result of this fee will address and mitigate the additional impacts created by these development projects.
(Ord. 1560 § 2, 2018)
As used in this chapter, the following terms shall have the following meanings:
“Administrator”
means the director of economic and community development of the city or other person designated by the city manager.
“Affordable housing agreement”
means a written agreement between a developer and the city.
“Affordable housing plan”
means a plan for a residential development project submitted by a developer.
“Building permit”
includes full structural building permits, as well as partial permits such as foundation-only permits.
“Commercial use”
includes hotels; retail uses, restaurants, services; and offices, medical offices, and research and development uses.
“Commercial development project”
means an application for a planning permit or building permit that includes the new construction of gross square feet of commercial space or the conversion of a residential use to a commercial use.
“Commercial linkage fee”
means the fee paid by developers of commercial development projects to mitigate the impacts that such projects have on the demand for affordable housing in the city.
“Developer”
means any person, property owner, firm, partnership, association, joint venture, corporation, or any entity or combination of entities, which seeks city approvals for all or part of a commercial development project.
“First approval”
means the first discretionary approval to occur with respect to a commercial development project or, for commercial development projects not requiring a discretionary approval, the issuance of a building permit.
“Planning permit”
means any discretionary approval of a residential project, including, but not limited to, a comprehensive or specific plan adoption or amendment, rezoning, tentative map, parcel map, conditional use permit, variances, or architectural review.
(Ord. 1560 § 2, 2018)
The city council may from time to time adopt by resolution a commercial linkage fee to be imposed on developers of commercial development projects. Commercial linkage fees shall not exceed the cost of mitigating the impact of the commercial development projects on the need for affordable housing in the city.
(Ord. 1560 § 2, 2018)
(a) 
Any commercial linkage fee shall be paid in full at the time of issuance of the first building permit for the commercial development project subject to the fee or at a time otherwise specified by council resolution. If no building permit is required, the fee shall be paid before a conversion of use may take place. The fee shall be calculated based on the fee schedule in effect at the time the building permit is issued.
(b) 
Calculation of the Commercial Linkage Fee.
(1) 
The commercial linkage fee for commercial development projects shall be charged on a per-square-foot basis for all net new gross floor area, including all projects where the floor area is increased, with a specific per-square-foot amount set for each commercial land use category identified in Table 8.69.050(5) below. The amount of the fee shall be computed as follows:
(Gross Square Feet Commercial Floor Area Minus Existing Floor Area) × (Current Fee Amount for Applicable Land use Category) = Commercial Linkage Fee Payment
(2) 
The amount of each fee for applicable land use category as identified by Table 8.69.050(5) shall be established by resolution of the city council, and may be adjusted annually by the percentage change in the Consumer Price Index for all Urban Consumers (CPI-U).
(3) 
In calculating the fee under this section, the chief building official or other city official, shall use those fees in effect at the time of the issuance of the building permit or, if no building permit is required, at the time of issuance of a use or other discretionary permit.
(4) 
The city’s chief planner shall determine the appropriate land use category as set forth in Table 8.69.050(5) below for each new commercial development project.
(5) 
Commercial Linkage Fee Requirements.
Table 8.69.050 (5)
Commercial Development Type
Hotel
Retail, Restaurants and Services
Office, Medical Office and Research and Development Uses
(Ord. 1560 § 2, 2018)
(a) 
The following commercial development projects are exempt from the provisions of this chapter:
(1) 
Retail uses within the city may be exempted at the discretion of the city council.
(2) 
Public projects or projects undertaken on city property.
(3) 
Any structure proposed to repair or replace a building that was damaged or destroyed by fire or other disaster, so long as the square footage and use of the building remains the same, and construction of the replacement building begins within one year of the damage or destruction.
(4) 
Desirable public uses, such as community facilities and quasi-public uses like childcare centers, churches, and schools may also be exempted at the discretion of city council.
(5) 
Commercial development projects for which applications have been deemed complete prior to January 1, 2019.
(b) 
The city council may, by resolution, elect to waive payment of the commercial linkage fee if it finds that: (1) the commercial development project is dedicated to a public use owned and operated by other public agencies or a nonprofit public benefit corporation; and (2) the benefits to the community provided by such public use exceed those that would be provided by the payment of the commercial linkage fee. If the city council elects to waive commercial linkage fees pursuant to this provision, the public use of the site shall be guaranteed by a recorded document in a form acceptable to the city attorney.
(c) 
The city council by resolution may adopt additional exemptions from time to time.
(Ord. 1560 § 2, 2018)
(a) 
A developer may propose the construction of affordable residential units as an alternative to the payment of the commercial linkage fee by submitting an affordable housing plan, which shall be approved by the city council, at its discretion.
(b) 
If the alternative is approved, the developer shall enter into an affordable housing agreement with the city.
(Ord. 1560 § 2, 2018)
(a) 
Change of Use. When a development project changes from a lower impact use to a higher impact use, the fee to be paid shall be calculated on the net change based on the pre-existing use and corresponding fee requirements of the new use.
(b) 
Land Dedication. Upon approval by city council in its discretion, a developer may dedicate land within the city of South San Francisco for the purpose of building affordable housing. If land dedication is approved by the city council, the developer may deduct the fair market land value from the project’s total commercial linkage fee obligation.
(c) 
Contribution to an Affordable Housing Project. Upon approval by the first approval body or city council, a developer would be able to contribute an amount equal to fee due under this chapter to an entitled affordable housing project in South San Francisco.
(d) 
Prevailing Wage. Upon approval by the first approval body or city council, a developer would be able to receive a fee credit up to twenty-five percent of the total commercial linkage fee for voluntarily electing to construct the project utilizing prevailing wage. If granted, the credit would be provided upon issuance of certificate of occupancy.
(Ord. 1560 § 2, 2018)
(a) 
Affordable Housing Trust Fund. A fund for the deposit of fees established under this section exists as Fund 205 (the “Fund”). The Fund shall receive all fees contributed under this chapter and may also receive monies from other sources.
(b) 
Purpose and Limitations. Monies deposited in the Fund shall be used to increase and improve the supply of housing affordable to moderate, low, very low, and extremely low-income households. Monies may also be used to cover reasonable administrative or related expenses associated with the administration of this chapter.
(c) 
Administration. The Fund shall be administered by the administrator, who may develop procedures to implement the purposes of the Fund consistent with the requirements of this chapter and subject to any adopted budget of the city.
(d) 
Expenditures. Fund monies shall be used in accordance with the city’s housing element, or subsequent plans adopted by the city council to maintain or increase the quantity, quality, and variety of affordable housing units or assist other governmental entities, private organizations or individuals to do so. Permissible uses include, but are not limited to, land acquisition, debt service, parcel assemblage, gap financing, housing rehabilitation, grants, unit acquisition, new construction, and other pursuits associated with providing affordable housing. The Fund may be used for the benefit of both rental and owner-occupied housing.
(Ord. 1560 § 2, 2018)
(a) 
Payment of the commercial linkage fee is the obligation of the developer of a commercial development project. The city may institute any appropriate legal actions or proceedings necessary to ensure compliance herewith, including, but not limited to, actions to revoke, deny, or suspend any permit or development approval.
(b) 
The city attorney shall be authorized to enforce the provisions of this chapter and all affordable housing agreements, regulatory agreements, and all other covenants or restrictions placed on affordable units, by civil action and any other proceeding or method permitted by law.
(c) 
Failure of any official or agency to fulfill the requirements of this chapter shall not excuse any developer or property owner from the requirements of this chapter. No permit, license, map, or other approval or entitlement for a commercial development project shall be issued, including without limitation a final inspection or certificate of occupancy, until all applicable requirements of this chapter have been satisfied.
(d) 
The remedies provided for in this chapter shall be cumulative and not exclusive and shall not preclude the city from any other remedy or relief to which it otherwise would be entitled under law or equity.
(Ord. 1560 § 2, 2018)