The San Francisco County government meeting held on July 4, 2025, focused on a proposed ordinance aimed at adjusting the pass-through rates for general obligation bonds affecting tenants. Supervisor Peskin initiated the discussion by reflecting on the historical context of property tax pass-throughs, noting a shift from a 100% pass-through model to a 50% model, which he described as fair and equitable.

Peskin highlighted the importance of adhering to a capital plan established in 2005, which aimed to prevent increases in marginal property tax rates by retiring old debt as new debt was issued. He emphasized that this ordinance seeks to address concerns raised by tenant organizations regarding the fairness of pass-through rates, particularly when property tax rates have not increased.

The proposed legislation would require landlords to calculate specific pass-through rates for each tenant based on the increase in property tax rates attributable to general obligation bonds issued by the city, school district, and college board. This change aims to ensure that tenants are not unfairly burdened by rising costs when their property tax rates remain stable.

Ms. Varner from the Rent Board provided insights into tenant financial hardship provisions, explaining that tenants could seek deferrals on specific pass-throughs based on means-tested public assistance, income levels, or exceptional circumstances. She reported that of the 107 applications for deferral received, 56 were granted, indicating a high approval rate.

Mr. Whitaker from the budget analysis division detailed the current methodology for calculating tenant pass-through rates and how the proposed ordinance would modify this process. He explained that the new approach would consider the tenant's move-in date and the corresponding tax rates, ensuring a more equitable distribution of costs.

The meeting concluded with positive remarks from other supervisors, who expressed appreciation for the legislation's intent and its potential to simplify the pass-through process for landlords and tenants alike. The ordinance is seen as a necessary step to address longstanding issues related to property tax pass-throughs, ensuring fairness for both landlords and tenants in San Francisco.