Budget & Finance Committee forwards downtown conversion tool, homelessness contracts and multiple budget items to full Board

The Budget and Finance Committee of the City and County of San Francisco met May 21 and voted to forward to the full Board a slate of ordinances and resolutions covering downtown financing, homelessness contracts, department budget adjustments and several finance actions.

The committee advanced a resolution of intention for a Downtown Revitalization and Economic Recovery Financing District authorized by state law (AB 24 88) that would use a portion of future property tax growth from commercial-to-residential conversions to help finance those conversions. Office of Economic and Workforce Development staff said preliminary consulting work identified about 50 likely candidate buildings that could yield roughly 4,400 to 4,400+ housing units if property owners convert and opt into the program by the state-authorized deadline. OEWD presented an estimate that, under a high‑takeup scenario, about $15.2 million of additional city property‑tax increment could be generated annually and potentially redirected back to participating projects as incentives over the program term. Jacob Bentliff of OEWD summarized the program: “The purpose of this district is specifically to support commercial to residential conversion projects,” and explained that projects must opt in by the end of 2032 and that a district board of directors would govern any district created.

Budget and Legislative Analyst and Controller staff cautioned that administrative and implementation costs and certain interactions with existing tax‑increment or redevelopment areas require close study. The BLA report noted costs the controller and clerk’s offices would incur to calculate tax divisions, hold hearings and staff a new board; OEWD and BLA staff said those costs could be reimbursable from district revenues but would likely appear in the near‑term city budget because revenue to reimburse the general fund would not be available until buildings are reconstructed and reassessed (an estimated five years or more). Committee members pressed for a robust financing plan and fiscal‑impact analysis before projects enroll. Several supervisors said they supported the item as a market signal to catalyze conversions but asked that the city track costs, caps on the share of tax increment diverted, and the net fiscal impact once service needs and new residents are accounted for.

The committee also advanced multiple homelessness and housing items. The Department of Homelessness and Supportive Housing asked to extend and increase existing contracts and to approve an assignment of a lease: - A second amendment with Episcopal Community Services (ECS) will extend operations and master‑lease stewardship at five long‑standing…