Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Recovery topic
No spam. Unsubscribe anytime.
Supervisors press mayor on $600M commercial rent backlog; City moves to create commercial rent relief fund
Summary
Supervisors received an updated estimate of commercial rent delinquency exceeding $600 million and discussed a proposed city commercial rent relief fund; the Board passed an ordinance establishing the fund on first reading.
San Francisco supervisors on Sept. 21 pressed Mayor London Breed and city staff about a new estimate showing more than $600 million in unpaid commercial rent through August 2021, and moved forward with an ordinance to create a commercial rent relief fund for small businesses.
Supervisor Raza Safaie introduced the topic during the mayor’s question‑and‑comment period, citing a Budget and Legislative Analyst update that estimated commercial back rent at over $600 million — up from earlier estimates near $200–$400 million. “With this number of over $600,000,000 estimated in commercial rent delinquency,” Safaie said, “what are you doing and what do you plan to do to avoid this potential avalanche of small business closure when the moratorium expires?”
Mayor London Breed outlined existing city programs, saying the city has provided more than $63 million in direct grants and loans to small businesses and that the Office of Economic and Workforce Development is helping connect businesses to community organizations and legal support for landlord negotiations. The mayor said the city will open a second round of the San Francisco Relief Grant and has prioritized resources to help businesses apply for state and federal stimulus funds.
Supervisor Safaie and others argued that grants and loans are not sufficient to cover the magnitude of accumulated back rent and pushed for a dedicated commercial rent relief fund. Safaie proposed an ordinance to establish a COVID‑19 commercial rent relief fund to provide financial support to landlords of qualifying commercial tenants, with monies to incent negotiations and require certain conditions (including limits on use and an added lease term requirement).
Supervisor Safaie said the fund was designed to induce landlords and tenants to negotiate rent relief, proposing initial funding of $25 million as a starting point and noting the city earlier invested over $100 million in residential tenant relief. The Board passed the ordinance on first reading without objection and will continue discussions with the mayor’s office on the appropriate funding level.
The mayor and supervisors emphasized that any city relief should prioritize keeping small businesses and employees working while balancing support for residents and families. Questions remain about the precise fund size and how the city will incentivize negotiated settlements between landlords and small businesses.
