Pay or Permit Parking Expansion Project

At a Glance

The San Francisco Municipal Transportation Agency (SFMTA) proposes replacing visitor time limits with paid parking on Residential Permit Parking blocks in a few San Francisco neighborhoods. This regulation, called Pay or Permit Parking, makes it easier to find a place to park for both residents and visitors to neighborhoods with high parking demand. Permitholders do not have to pay the hourly visitor rate to park.

Project Introduction

In 2018, San Francisco introduced Pay or Permit Parking as a new option as part of a multi-year study to improve the long-standing Residential Parking Permit (RPP) program. This approach helps improve parking availability in busy neighborhoods by combining the benefits of residential permits with paid parking.

Cities have long known that charging for parking is the most effective tool for encouraging parking turnover and making it easier to find a place to park in commercial districts. Pay or Permit Parking combines the benefits of residential parking permits with the benefits of paid parking. This system makes it easier to find on street parking, reduces congestion, and generates revenue to support public transit.

Here’s how it works for blocks with Pay or Permit Parking:

Permitholders: Park without a time limit; no payment required (beyond the annual permit fee)

Visitors: Park without a time limit; pay for desired parking time via paystation or mobile device. Individual spaces are not marked or metered. 

Current Rates: $1 to $3.25 per hour. Average of $2 an hour.

The SFMTA implemented Pay or Permit Parking in portions of Hayes Valley in early 2023. This initiative has successfully improved parking availability allowing more residents to park near their homes. The number of available parking spaces increased by 5% on average, or about 1 parking space per block. The number of parked vehicles with a permit increased by 10% even though total permitted cars stayed the same. indicating that residents who park on the street had an easier time finding parking.

Allowing visitors to stay longer than two hours gives them the freedom to enjoy the neighborhood without the hassle of moving their car before the two-hour time limit expires or get a ticket if they forget. At the same time, the payment ensures that people stay only as long as they need and then make their space available to the next person. Most RPP blocks near commercial corridors are occupied by non-residents, many of whom stay longer than the posted time limits. On blocks where Pay or Permit Parking was implemented, twice as many visitors stayed for 2-4 hours to shop, dine, and socialize compared to RPP blocks. At the same time fewer commuters parked all day, freeing up spaces for residents and customers.

Pay or Permit Parking Benefits

Benefits for Residents: Makes on-street parking easier for you and your guests. The increased availability means that there’s less congestion and pollution from vehicles circling for a space.  

Benefits for Businesses: It supports thriving neighborhoods by making it easier for customers to find parking. It also offers flexibility for employees and customers who no longer need to move their car every two hours or risk getting a ticket. 

Benefits for Visitors: Reduces hassle by allowing visitors to pay for parking as needed, avoiding the stress of moving their car every two hours or the risk of getting a pricey ticket. Parking is easier to find, increasing the time spent dining, shopping, or socializing. Caregiver and visitor permits will continue to be available for longer visits and can be purchased online or in person. 

Pay or Permit Expansion Project and Timeline

In 2023, the SFMTA received a $1.5 million Local Parking Management Capital and Implementation Grant from the Metropolitan Transportation Commission (MTC) to extend this regulation into more areas. As part of the grant, the MTC will study the regulation's impact on congestion and air quality. 

The SFMTA is studying expanding to additional blocks of Hayes Valley and other neighborhoods based on community interest. Outreach will continue in 2025, and staff will refine the proposal based on feedback.