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San Francisco housing officials propose lease changes for affordable housing projects

May 01, 2023 | San Francisco County, California


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San Francisco housing officials propose lease changes for affordable housing projects
The San Francisco County Board of Supervisors convened on July 4, 2025, to discuss proposed amendments to existing leases related to residential rent payments and protections for 100% affordable housing projects. The meeting focused on the delegation of authority to the Mayor's Office of Housing and Community Development (MOHCD) to streamline the amendment process for 14 identified ground leases.

During the session, MOHCD representatives provided answers to questions raised in a previous meeting. They clarified that nine of the identified leases originated from the former redevelopment agency, with the remaining leases coming from other city entities. The discussion highlighted the need for amendments to align older leases with current policies, particularly regarding residual receipts, which are funds generated from property operations.

A significant point of contention arose regarding the necessity of the proposed changes. Some supervisors expressed concerns that the Council of Community Housing Organizations did not fully support the legislation, suggesting that the existing amendment process was adequate. They questioned whether the proposed delegation of authority was a solution in search of a problem, given that the nonprofit partners had not requested such changes.

MOHCD officials argued that the proposed amendments would reduce administrative burdens and expedite the process of addressing financial challenges faced by affordable housing projects, particularly in the wake of the pandemic. They estimated that delegating authority for these amendments could save approximately 700 hours of staff time, allowing for more efficient management of housing resources.

Despite the arguments for streamlining the process, some supervisors remained skeptical, emphasizing the importance of maintaining oversight and questioning the urgency of the proposed changes. The board ultimately decided to continue the discussion and consider amendments to limit the delegation of authority specifically to the 14 identified projects, ensuring that any future decisions would be made with careful consideration of the implications for affordable housing management in San Francisco.

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