San Francisco must expand its infrastructure to manage the impacts of a growing population as more residents utilize transportation networks, streets, parks, utilities, and other public assets. Where new growth has been concentrated -- geographies including Eastern Neighborhoods, Market & Octavia, Visitacion Valley, Balboa Park, Rincon Hill, South of Market, and Transit Center -- the City established development impact fees, which are paid by developers, to fund the services that are required by new residents of these areas. 

Development impact fees for these high-growth areas are programmed by the City’s Interagency Plan Implementation Committee (IPIC), which is chaired by the Planning Department. Each year, IPIC develops an expenditure plan for projects to be funded by impact fees with input from each Plan Area’s respective Citizen Advisory Committee. Funding for the expenditure plan is appropriated through the capital budget process each year. While impact fees are collected by the Planning Department, funds are transferred to the departments implementing those projects, such as Public Works, Recreation and Parks, or SFMTA.

The City estimates it will raise approximately $383 million in Plan Area impact fees over the next 10 years. This amount is considerably smaller compared to previous plans. Table 5.4 shows that estimate by area.

Shifts in development patterns beginning in 2020 and new City legislation in 2023 significantly limited impact fee revenue potential. Impact fee revenue is projected to be insufficient to cover all the capital and public works projects needed in their intended areas. The City will continue to seek opportunities to leverage these impact fees and identify complementary funding.

Table 5.4