Child Care Expansion Grant Program Design and Administration

The City of South San Francisco is located in northern San Mateo County and serves a diverse residential and employment community. The City has been recognized as a leader in child care for decades, and has long acknowledged child care as essential community infrastructure and operates licensed and grant-funded preschool and school-age programs through its Parks and Recreation Department. The City adopted a Child Care Master Plan in 2022 and has continued to advance strategies to expand access to quality child care as the community grows. South San Francisco is among a relatively small number of cities that have adopted a comprehensive, long-range Child Care Master Plan.

The City’s Childcare Impact Fee Program was established to support the creation of new child care spaces through the construction of new facilities or expansion of existing facilities. As reported in the City’s FY 2024–25 Annual Impact Fee Report, the City’s 2020 nexus study estimated a need for 2,138 additional child care spaces by 2040 to maintain current service levels associated with growth and development. As noted in the Master Plan, the City recognizes that it alone cannot provide spaces that address this need, and will need the support of local partners and service providers. As of June 30, 2025, the Childcare Impact Fee Fund balance was approximately $16.7 million, with approximately $12.5 million appropriated toward major preschool facility projects. The City is exploring a complementary pilot grant program focused on smaller-scale facility improvements that can create or activate licensed capacity in the nearer term.

The proposed Child Care Expansion Grant Program is envisioned as a pilot capital grant program for licensed child care centers and family child care homes. The City is considering an initial grant allocation amount of approximately $500,000, with the potential for future expansion based on demand, outcomes, available funding, and City Council direction. The City is also considering a maximum individual grant award of approximately $200,000, with the possibility of different grant tiers or award limits based on provider type, project scope, measurable capacity expansion, and available funds. These figures are planning assumptions only and may be modified by the City before or during program development.

Potential investments may include conversion of space into licensed classrooms; improvements that expand infant/toddler capacity; outdoor play area improvements required for licensing; accessibility upgrades tied to expanded use; safety or code-compliance upgrades necessary for increased enrollment; facility renovations connected to expanded licensed capacity; family child care home improvements that support additional enrollment; and minor construction or infrastructure improvements directly tied to child care expansion. Final eligible uses must be consistent with applicable law, the City’s impact-fee nexus requirements, and City Attorney guidance.

TIMELINE

Note that the schedule indicated in the timeline is tentative and may be revised by the City as needed.