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City launches new impact fee program and small business sign fee waivers

October 18, 2023 | San Francisco City, San Francisco County, California


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City launches new impact fee program and small business sign fee waivers
San Francisco is set to enhance its development processes and support for small businesses following key decisions made during a recent city council meeting. The council approved an ordinance that will change how development impact fees are set, imposed, and collected. This new approach allows for the deferral of these fees until the issuance of the first certificate of occupancy, streamlining the process for developers. The Department of Building Inspection (DBI) is preparing to launch this updated fee collection system by November 1, 2025.

In addition to the development fee changes, the council introduced a business sign fee waiver that complements an existing awning fee waiver for small businesses. This waiver will be available for a limited two-year period, retroactive to May 2023, providing financial relief to local businesses during a critical recovery phase.

The meeting also addressed several other legislative updates. An ordinance amending the electrical code, which requires specific certifications for electrical work, has been tabled for further clarification. Meanwhile, another ordinance aimed at waiving annual registration fees for vacant commercial storefronts will be substituted by the mayor, indicating ongoing efforts to revitalize these spaces.

Furthermore, the council discussed state legislation signed by Governor Newsom that impacts local building permit processes. Notably, a new law mandates that DBI must determine the completeness of housing project applications within 15 days, expediting the review process and reducing delays for developers.

The meeting highlighted the city's commitment to improving inspection services, with DBI reporting that 91% of inspections were conducted within two business days in September 2023. This efficiency is crucial for maintaining safety and compliance in the city's housing and commercial sectors.

As San Francisco moves forward with these initiatives, the implications for local businesses and housing development are significant, promising a more responsive and supportive environment for growth and community enhancement.

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