SAN FRANCISCO — After extended negotiations, the Board of Supervisors and the Mayor have agreed to a groundbreaking spending package for affordable housing, predicated on the significant windfall from Supervisor Preston’s Prop I ballot measure that has raised hundreds of millions for the city.“We promised to deliver on Proposition I and tonight we did just that,” said Supervisor Preston. “This deal is a huge step forward for creating the affordable housing our City needs.”
The package includes a bond measure and direct investments from the budget process, totaling $114 million for affordable housing site acquisition, new construction, and life-safety repairs in existing affordable housing. Specifically, the bond measure includes: $40 million to acquire land for development of 100% affordable housing, $20 million for capital improvements/repairs to public housing and/or HUD subsidized co-ops, $12 million for affordable educator housing, and $10 million for elevator repairs at SROs.
The measure also includes $30 million for site acquisitions for the API Community, as part of Supervisor Connie Chan’s proposed API Equity Fund.
The funding amounts are based on revenue from Prop I, a ballot measure passed by Supervisor Preston in 2020, which has raised more than $220 million to date, and it is projected to bring in $170 million annually over the next five years.
Despite the increased Prop I funding intended for affordable housing, Mayor Breed’s FY22-24 draft budget included only a tiny fraction of the recommendations made by the Prop I oversight committee. In response, Supervisor Preston and housing advocates proposed the Social Housing Budget Package, consisting of Certificates of Participation, a long-term debt financing tool, and a budget request for the current fiscal year.
Working with Supervisor Preston, Budget Chair Hillary Ronen was able to come to an agreement with Mayor London Breed on the package after a lengthy negotiation late Monday evening.
“We desperately need more housing for working San Franciscans,” said Supervisor Hillary Ronen, who as Budget Chair led the negotiations between Supervisor Preston and the Mayor’s Office. “This historic deal will deliver more affordable housing and make good on the promise of Prop I.”
The budget, including the affordable housing package, will move to be voted on by the full Board of Supervisors in late July.
