Section 62456 - [Effective 1/1/2025] Proposed downtown revitalization financing plan After receipt of a copy of the resolution of intention to establish the district, the official designated pursuant to Section 62455 shall prepare a proposed downtown revitalization financing plan. The downtown revitalization financing plan shall be consistent with the general plan and applicable specific plans of San Francisco, and shall include all of the following:
(a) A map and legal description of the proposed district, which may include all or a portion of the district designated by the Board of Supervisors in its resolution of intention.(b) A description of the potential commercial-to-residential conversion projects that are proposed in the area of the district. A commercial-to-residential conversion project may be mixed use, but at least 60 percent of the square footage of the commercial-to-residential conversion shall be designated for residential use. Mixed-use developments shall be limited to residential and commercial uses.(c) A requirement that if nonresidential development is included in the development pursuant to subdivision (b), at least 25 percent of the total planned units affordable to lower income households shall be made available for lease or sale and permitted for use and occupancy before or at the same time with every 25 percent of nonresidential development made available for lease or sale and permitted for use and occupancy.(d)(1) A requirement that an opted-in taxable property shall not receive a property tax distribution from the district unless it meets one of the following: (A) At least 5 percent of total units for rent are affordable to very low income households or the local inclusionary requirement, whichever is higher, for a minimum of 55 years.(B) At least 10 percent of total units for rent are affordable to lower income households or the local inclusionary requirement, whichever is higher, for a minimum of 55 years.(C) At least 10 percent of total units for sale are affordable to households of moderate income or the local inclusionary requirement, whichever is higher, for a minimum of 45 years.(2) The affordability requirements established pursuant to this subdivision shall not apply to the first 1,500,000 square feet of opted-in commercial-to-residential conversion projects.(e) A finding that the potential commercial-to-residential conversion projects and financial assistance are of communitywide significance and provide significant benefits to an area larger than the area of the district.(f) Identification of each existing commercial building within the district that is eligible for conversion to residential use and that may opt in to receive incremental tax revenue pursuant to this division.(g) A requirement that the incremental tax revenues generated by each individual commercial-to-residential conversion project within the district that are allocated to the district by San Francisco be distributed by the district back to that same project for the purpose of financing necessary development costs. Each individual commercial-to-residential conversion project shall receive an annual distribution on a pay-go basis in an amount no greater than the amount of incremental tax revenues generated by that same commercial-to-residential conversion project for a maximum of 30 years or until the district ceases to exist, whichever occurs first.(h) A requirement that the first distribution of incremental tax revenue to a commercial-to-residential conversion project pursuant to subdivision (g) commence with the fiscal year that begins after the project is issued a certificate of occupancy.(i) A requirement that if an opted-in taxable property is sold or otherwise transferred to a new property owner, the distribution described in subdivision (g) shall also be transferred to the new property owner.(j) A requirement that any incremental tax revenues remaining after the distribution of revenues pursuant to subdivision (g) be used for downtown revitalization programs. Once the allocation of revenues has ceased, the tax increment shall be allocated to, and, when collected, shall be apportioned to, San Francisco.(k) A requirement that local administrative costs to implement this section do not exceed 5 percent of the tax revenues allocated pursuant to the section, not including amounts required to reimburse San Francisco for the costs of establishing the district or the costs described in Section 62461.(l) A financing section, which shall contain all of the following information: (1) A specification of the maximum portion of the incremental tax revenue of San Francisco proposed to be committed to the district for each year during which the district will receive incremental tax revenue. The portion may change over time.(2) A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues.(3) A limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan.(4) A date on which the district will cease to exist, by which time all tax allocations to the district will end. The date shall not be more than 45 years from the date on which the district distributes funding to the first commercial-to-residential conversion project within the district.(5) An analysis of the costs to San Francisco of providing facilities and services to the area of the district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by San Francisco as a result of expected development in the area of the district.(6) An analysis of the projected fiscal impact of the district and the associated development upon San Francisco.(m) If any residential dwelling units within the territory of the district are proposed to be removed or demolished in the course of a commercial-to-residential conversion project within the area of the district, a plan providing for replacement of those units and relocation of those persons or families consistent with the requirements of Article 2 (commencing with Section 66300.5) of Chapter 12 of Division 1 of Title 7.(n) The goals the district proposes to achieve for each project financed pursuant to this division.Added by Stats 2024 ch 274 (AB 2488),s 1, eff. 1/1/2025.