What is Discretionary Review?

The Planning Commission can review all building permit applications. Typically, this authority is given to the Planning Department, which approves applications that comply with the Planning Code, including General Plan priority policies outlined in Section 101.1 and the Design Guidelines. Occasionally, the Commission itself will review a permit application. In such cases, they can ask the applicant to modify the project. This process is known as “Discretionary Review” (DR). When a member of the public files a DR application, they are requesting that the Commission re-examine the proposed project. DR is a special process used only when a project presents exceptional or extraordinary circumstances beyond the usual permit approval process.

What is a Preliminary Project Assessment (PPA)

This is the first step in the permit application process, and it only applies to projects that propose:

• 10 or more new dwelling units;
• creation or expansion of any group housing use; and/or
• construction of a new non-residential building or addition of 10,000 square feet or more.

Where does this power come from?

The Planning Commission’s power to conduct discretionary reviews is based on San Francisco’s local rules, specifically under the Business & Tax Regulations Code. The authority to review permit applications that meet the minimum standards of the Planning Code was clarified by an opinion issued by the City Attorney in 1954. This opinion explains that the Commission should only use discretionary review in rare and exceptional cases, exercising great caution, especially when the project could have a significant impact on the public interest.

The City Attorney’s Opinion was reviewed in 1979 and re-affirmed with Opinion No. 79-29, dated April 30, 1979, and the power of Discretionary Review has been upheld in the courts.

Who may apply for a Discretionary Review?

After a planner confirms that the project meets the minimum standards and is eligible for approval, the Planning Department will send a neighborhood notification to residents and property owners within 150 feet of the project site, as well as registered neighborhood organizations. This notification gives neighbors the chance to review the project and decide if it involves any exceptional or extraordinary circumstances. If a member of the public or a neighborhood organization believes the Commission should step in, a DR must be filed during the building permit notification period. Once filed, a hearing will be scheduled by the Planning Department within 12 weeks.

In addition to requesting discretionary review with the Planning Commission, one can also appeal the building permit to the Board of Appeals within 15 days of the permit being issued.

What are Development agreements?

Development agreements (“DAs”) are contracts between the City and a developer that lay out development rights and commitments; project rules and regulations; additional public benefits of the project; and implementation. City agencies work closely to ensure that development agreements contain community benefits that address the need for equitable outcomes, including significant affordable housing and local employment components.

The purpose of a Development Agreement is to use a contractual approach to garnering community benefits that otherwise couldn’t be achieved through legislated requirements.

This is the time when the City and developers negotiate the terms of developing a lot. The City grants additional benefits to the developer than the current zoning regulations would allow, and in return, the developers offer to the City an increased amount of affordable housing within developments beyond what is required of development in the city; funding acquisition and preservation of existing buildings and protection of tenants; funding community programs, investments, and objectives; supporting workforce development and community-serving businesses, and protecting arts and cultural resources. There isn’t a limit to what could be determined under a development agreement, if it is feasible, and the parties agree.

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When can a Discretionary Review be filed?

If no agreement is reached between neighbors or through assistance from Department staff or Community Board mediation services, concerned parties can choose to file a DR. Filing a DR means the project will not be approved at the end of the building permit notification period. Instead, the Planning Commission will make the final decision at a public hearing, where they may approve, deny, or require changes to the project. This hearing usually takes place within 12 weeks after the notification period ends. The Commission's decision will be based on staff analysis, materials from the permit applicant and DR requester, as well as testimony presented during the hearing.

Planning Commission Hearing Timeline

8 weeks before the hearing. The Project Sponsor submits their response to the issues raised by the DR requester, including graphics such as plans and renderings, to the DR Coordinator.

6 weeks before the hearing. The project undergoes review by the Department's design review team.

2 weeks before the hearing. Deadline for submitting public comments to be included in the Department’s staff report for the Commission.

1 week before the hearing. The DR Coordinator sends the complete staff report packet to the Planning Commission Secretary.

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