§ 47.3. APPLICATION OF PREFERENCE.

Except to the extent prohibited by an applicable State or Federal funding source, MOHCD shall give, or require project sponsors or their successors in interest funded through MOHCD to give, preference in occupying units or receiving assistance under all City Affordable Housing Programs after any priority given under Administrative Code Section 39.4. Each preference enumerated below shall be applied as of the effective date of the legislation establishing each preference. The City established preference for holders of Certificates of Preference in Ordinance 232-08, Displaced Tenants, Category 1 in Ordinance 277-13, and Displaced Tenants, Category 2 and Neighborhood Residents in legislation adding this Chapter 47. The preference requirements are intended to have prospective effect only, and shall not be interpreted to impair the obligations of any pre-existing contract entered into by the City. Notwithstanding the prior sentence, the preference requirements shall apply to contracts entered into by the City on or after the effective date of the legislation establishing each preference, including contracts materially amended on or after the effective date. Preference shall be given:

(a) First, to Residential Certificate of Preference Holders, who meet all of the qualifications for the unit or assistance. Preference under this subsection (a) shall be given in 100% of the units in all initial sales, re-sales, initial leases, and subsequent leases.

(b) Second, to any Displaced Tenant who meets all of the qualifications for the unit or assistance. For any Displaced Tenant displaced prior to the effective date of this Chapter 47, preference under this subsection (b) shall expire six years from the effective date of this Chapter 47. For any Displaced Tenant displaced after the effective date of this Chapter 47, preference under this subsection (b) shall expire, for Category 1, six years from the date the landlord filed with the Rent Board a Notice of Intent to Withdraw, for Category 2, six years from the date the landlord filed with the Rent Board the notice to vacate pursuant to the Rent Ordinance Section 37.9(c), or, for Category 3, three years from the date of the order to vacate. Preference under this subsection (b) shall be applicable to:

(1) 20% of the units in any new residential development that is part of a City Affordable Housing Program going through the initial occupancy or sale process; and

(2) units in all re-sales and subsequent leases until 20% of all units that are part of a City Affordable Housing Program in a building are occupied by tenants who have exercised this preference.

The Displaced Tenant's preference shall still apply even if such Displaced Tenant declines a unit offered through application of the preference, but upon accepting and occupying a unit obtained using the preference, such Displaced Tenant's preference terminates.

(c) Third, to a Neighborhood Resident, who meets all of the qualifications for the unit or assistance. Preference under this subsection (c) shall be given:

(1) for units located in the same Neighborhood as the person resides;

(2) only for any new residential development in that Neighborhood going through the initial occupancy or sale process, and only to 40% of the units in such development.

(d) Fourth, to any person who lives or works in San Francisco who meets all of the qualifications for the unit or assistance. Preference under this subsection (d) shall be applicable to:

(1) any unit in any new residential development that is part of a City Affordable Housing Program going through the initial occupancy or sale process; and

(2) units in all re-sales and subsequent leases.

(Added by Ord. , File No. 150622, App. 12/3/2015, Eff. 1/2/2016; amended by Ord. , File No. 151122, App. 8/11/2016, Eff. 9/10/2016; Ord. , File No. 191000, App. 12/20/2019, Eff. 1/20/2020)