Costs for many office and laboratory projects in San Francisco are poised to increase. On November 5, 2019, the Board of Supervisors unanimously approved a proposed ordinance that would more than double the Citywide Jobs Housing Linkage Fee (JHLF) rate for such projects. The ordinance now moves to the Mayor for consideration.

As amended by the Board on October 29, 2019, the increased fees would be phased in from the current fee of $28.57 to:

• $52.20 per gross square foot (gsf) where the project was approved on or before September 10, 2019 with a condition of approval requiring payment of any higher JHLF rate in effect prior to issuance of either the certificate of occupancy or final completion for the project. If such certificate of occupancy or completion is not issued as of the effective date of the ordinance, then the project would be required to pay the incremental difference between the fees assessed at building or site permit issuance and $52.20. This provision only applies to “large capital” office projects (50,000 gsf or more).

This rate would also apply where a complete Preliminary Project Assessment (PPA) application was filed on or before September 10, 2019, except where a building or site permit is issued as of the effective date of the ordinance, in which case the project would be “grandfathered” and the current fee rate would apply, unless the project is a large capital project subject to a special condition as described above. The fee rate for “small capital” office projects (49,999 gsf or less) under this provision would be $46.98 rather than $52.20.

• $60.90 per gsf ($54.81 for small capital projects) where a complete Development Application (as defined under Planning Code Section 102) is filed between September 11, 2019 and January 1, 2021, except where the project is grandfathered (see above).

• $69.60 per gsf ($62.64 for small capital projects) where a Development Application is filed after January 1, 2021.

For laboratory uses, the same phasing requirements would apply (with the exception of the special condition provision described above), with increases from $19.04 per gsf to $31.43, $34.90 and $38.37 per gsf, respectively.

See our September blog post for information about the related nexus analysis and feasibility assessment for the proposed fee increase.