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Legal Alert

July 1, 2013 Is the Final Date to Take Advantage of a San Francisco Development Impact Fee Deferral Program

July 1, 2013 Is the Final Date to Take Advantage of a San Francisco Development Impact Fee Deferral Program

In November 2010, the City of San Francisco created a Fee Deferral Program as a very large number of projects already approved were having trouble getting financing in the middle of the recession. The City believed that if the sometimes high development impact fees for middle to large sized projects were collected later in time (no longer at the issuance of a building permit), then some new construction would be jump started. As a result, developers have been able to defer between 75 and 80 percent of the certain fees until a much later time in the construction process.

The Program will be expiring by its own terms on July 1, 2013. Developers who have not pulled their permits for projects in the pipeline should consider doing so before the Program expires at that time. The Planning Commission decided not to extend the deferral program beyond July 1, 2013, at its hearing on June 13, 2013.