Commission backs local ordinance implementing state law to defer development impact fees until occupancy

The Building Inspection Commission on July 16 recommended that the Board of Supervisors adopt an ordinance (File No. 250657) to implement state law (SB 937) that permits qualifying residential developments to postpone collection of specified development impact fees until the date of first Certificate of Occupancy or Temporary Certificate of Occupancy.

DBI staff explained SB 937 took effect January 1, 2025, and applies to a broad set of residential development projects that meet state streamlining criteria, including many projects that are 100 percent affordable, low‑barrier navigation centers, and developments of ten units or fewer. Staff told the commission that in San Francisco, most residential projects now use at least one state streamlining category, so the deferral will apply broadly in practice.

The department said it has already implemented administrative changes to permit deferral in coordination with Planning, SFPUC, SFUSD and other feeing departments. The Code Advisory Committee reviewed the ordinance and unanimously recommended approval. The commission voted to recommend the ordinance; the roll call recorded Vice President Ming, Commissioner Calamucci, Commissioner Newman and Commissioner Williams voting yes.

Ending: DBI staff said departments that impose impact fees have updated internal procedures to accept deferred fee collection under the state law; the commission forwarded its unanimous recommendation to the Board of Supervisors.