Board passes transit sustainability fee on first reading after heated debate, refers hospital and commercial-grandfathering amendments back to committee

The San Francisco Board of Supervisors on Nov. 3, 2015 passed, on first reading and by unanimous vote, an ordinance establishing a Transportation Sustainability Fee (TSF) that extends San Francisco's long-standing transit impact development fee to residential projects and makes other changes to how the city charges new development for transportation impacts.

The ordinance, introduced by Supervisor Scott Wiener, replaces the Transit Impact Development Fee (TIDF) — which for 35 years had applied only to commercial development — by creating a citywide TSF that applies to residential development as well. Wiener said the change "takes a huge step forward" and will "generate hundreds of millions of dollars for transportation improvements over the next 15 years." He called it a critical measure to help expand capacity for Muni, Caltrain and BART.

Why it matters: San Francisco has added population and housing while transit capacity has lagged. Supporters said extending the fee to residential development is a major source of new, dedicated local funding for transit, while critics and some board members pressed for higher fees, altered grandfathering rules for projects already in the planning pipeline, and special handling for hospitals.

What the board debated and decided - Scope and rates: Committee work had amended the original proposal to add residential charges (bringing residential fees from $0 to nearly $8 per square foot in the draft discussed at the meeting) and to adjust commercial rates for…