SF Mayor, Supervisors Announce Proposal to Double Funding For Affordable Housing

A proposed charter amendment would more than double San Francisco’s Housing Trust Fund to accelerate affordable housing construction. Annual funding would rise from $52 million to more than $125 million and extend the program through 2058, potentially generating up to $3 billion over three decades. The measure would tie funding to future property tax growth and would require at least six supervisors to qualify for the November ballot. The proposal includes a caveat that the inclusionary rate would be significantly reduced for at least three years. The current requirement is 15% affordable units in most new projects, with a recent recommendation to lower it to 5% for at least three years. Developers could meet requirements through fees, land dedication, or off-site affordable units. The expanded fund could back revenue bonds and other financing tools. Separate plans include a $70 million revenue bond for preserving and converting units through the Small Sites Program.

"SF leaders proposed a new charter amendment that would double the city's Housing Trust Fund with the aim of accelerating the construction of affordable housing, with one caveat the inclusionary rate will be significantly reduced for at least three years. Supervisor Myrna Melgar and San Francisco Mayor Daniel Lurie announced a proposed charter amendment Tuesday that would more than double the city's Housing Trust Fund to support affordable housing construction, with funding tied to future property tax growth."

"If approved by voters in November, the measure would increase annual funding from $52 million to more than $125 million and extend the program through 2058, potentially generating up to $3 billion over the next three decades. The proposal still needs support from at least six supervisors to qualify for the ballot, as KRON4 reports, and Supervisors Shamann Walton, Danny Sauter, Stephen Sherrill, and Matt Dorsey have confirmed their support of the measure so far."

"According to Mission Local, Melgar said she spent the past year working with nonprofit and affordable housing groups on the proposal after pushing for guarantees that increased upzoning efforts would also produce more low-income housing. The city's current inclusionary rate requires 15% affordable units in most new housing projects, though a city committee recently recommended lowering it to 5% for at least three years. Developers can also reportedly meet the requirement through fees, land dedication, or off-site affordable units."

"The proposal would also allow the Housing Trust Fund to back revenue bonds and other financing tools to accelerate affordable housing projects. Lurie and Melgar additionally announced plans for a separate $70 million revenue bond next year focused on preserving existing affordable housing and converting private rental units into permanently affordable housing through the city's Small Sites Program."

Read at sfist.com