S.F. supervisor, mayor strike deal to boost affordable housing fund to $125M a year

"Melgar said her proposal would vastly expand the city's capacity to build affordable housing by allocating $125 million annually into the city's Housing Trust Fund, up from the $52 million that goes into it today, while also extending the fund for another 30 years. That would be a total of at least $3.75 billion."

"The increase would be funded by "allocating a portion of future property tax growth every year" to the fund, according to a press release sent by Melgar and Lurie. "I cut a deal with the mayor," Melgar said, to use property taxes "coming from the increase in the value of all properties in San Francisco" as a result of last year's upzoning."

"The proposal would take the increase in future property taxes and "put it aside" into the low-income housing fund, Melgar said. "Housing is not getting built at the pace we need, and the consequences are all around us," Mayor Lurie said in a statement. "Today, we're jumpstarting affordable housing in San Francisco.""

"The two also announced an immediate $70 million bond, to be issued next year, that would go towards preserving and maintaining existing affordable housing. Much of that work has happened through the city's Small Sites program, which buys smaller buildings and converts them to affordable housing, though the program has been fraught."

Supervisor Myrna Melgar plans to introduce legislation to more than double San Francisco’s annual affordable housing budget by allocating $125 million each year to the city’s Housing Trust Fund, up from $52 million today. The proposal extends the fund for another 30 years, creating at least $3.75 billion in total funding. The increase would be financed by setting aside a portion of future property tax growth each year, tied to rising property values resulting from last year’s upzoning. The plan also includes an immediate $70 million bond to preserve and maintain existing affordable housing, building on the Small Sites program. Current funding levels would be maintained during the budget crisis, with the $125 million target reached by the 2029–30 fiscal year. Bonds could be issued against the fund to attract additional private capital.

Read at Mission Local