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. A large proportion of this new growth is concentrated in a few specific areas, which include 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. The City’s Planning Department has created specific Area Plans to focus new capital investments in those neighborhoods. 

Development impact fees for the Plan 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 $543.8 million in Plan Area impact fees over the next 10 years. Table 5.4 shows that estimate by program area. 

Although the revenues projected from impact fees are significant, they are insufficient to cover all of the growth-related needs of the Plan Areas. The City will continue to seek opportunities to leverage these impact fees and identify complementary funding.

Table 5.4