The Way It Is Now:

• State law requires San Francisco to adequately plan to meet the housing needs of people at all income levels in the community.
• Low-income households in San Francisco have incomes that do not exceed 80% of area median income (AMI). Extremely low-income (ELI) households have incomes that do not exceed 35% of AMI.
• The City provides loans to acquire, build or rehabilitate affordable housing to meet the needs of low-income households, but these loan programs do not fully subsidize the difference between the cost to operate these units and the rents ELI households can afford.
• The City funds rental subsidies for a limited number of affordable housing developments that make rental units available to ELI seniors.
• The City also provides rental subsidies for households that formerly experienced homelessness.
• Funding for these subsidy programs comes from state or federal grants and the General Fund through the annual budget process. There is currently no permanent funding source or annual commitment.
• There are currently no equivalent programs for ELI families or persons with disabilities.
• The Mayor's Office of Housing and Community Development (MOHCD) administers these loan and rental subsidy programs.

The Proposal:

Proposition ___ would amend the Charter to:

• Create an Affordable Housing Opportunity Fund for Seniors, Families and Persons with Disabilities (Fund).
• Require the City to contribute to the Fund:
  • Beginning in fiscal year 2026-27, at least $8.25 million a year.
  • Until fiscal year 2045-46, at least the prior year amount, adjusted by up to 3% based on the City's revenues.
• Allow the City to reduce its contribution if the projected budget deficit is $250 million or more, but still require at least $4 million in 2026-27 and $8.25 million in later years.
• Have MOHCD administer the Fund by disbursing money to owners of certain new and existing affordable housing developments to subsidize rent for ELI households of seniors, families or persons with disabilities.
• End the Fund on December 31, 2046, unless voters reauthorize it.

What Your Vote Means:

• A "YES" Vote: You want to amend the Charter to appropriate at least $8.25 million a year to pay for rental subsidies for affordable housing developments serving ELI households of seniors, families and persons with disabilities.
• A "NO" Vote: You do not want the City to make these changes.

1. The proposed Charter amendment would create the Affordable Housing Opportunity Fund for Seniors, Families, and People with Disabilities, managed by MOHCD to provide rental subsidies to extremely low-income households.

2. The Fund would require annual appropriations starting at $8.25 million in FY 2026-27, potentially increasing by up to 3% annually to a maximum of about $14 million in FY 2045-46.

3. In years with projected budget deficits of $250 million or more, the annual appropriation could be reduced to $4 million in the first year and $8.25 million in subsequent years.

4. Over its 20-year active period, the Fund's total costs would range from $161 million to $222 million, depending on the City's financial health and budgetary decisions.

5. The proposed amendment is not in compliance with a non-binding voter-adopted city policy that seeks to limit set-asides reducing General Fund dollars that could otherwise be allocated in the annual budget process.