San Francisco must expand our infrastructure to manage the impacts of our growing population as more residents utilize transportation networks, parks, 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, 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 through the City’s Interagency Plan Implementation Committee (IPIC) with input from each Plan Area’s respective Citizen Advisory Committee. IPIC is chaired by the Planning Department, and all IPIC projects’ appropriations are funneled 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 or SFMTA. 

The City estimates it will raise over $219 million in Plan Area impact fees over the next ten years. Table 5.4 shows the estimate of impact fees to be collected over the next 10 years by Plan Area.

Table 5.4

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