Supervisors back SFMTA joint-development policy to unlock revenue and housing on transit land

The San Francisco Board of Supervisors on March 4 adopted a resolution supporting the San Francisco Municipal Transportation Agency’s joint-development goals and policy to use agency-owned land for transit-oriented housing and revenue-generating development.

Supervisor Matt Dorsey yielded to Supervisor Melgar, who framed the item as a response to a structural shortfall at Muni. “As we all know, Muni is facing a $321,000,000 structural deficit,” Melgar said, saying the gap threatens service cuts, fare increases and the loss of programs such as school crossing guards. He attributed much of the shortfall to the loss of parking revenue.

Melgar argued the joint-development framework would “unlock new income streams possibly for the agency in the future by developing the real estate assets the agency owns for revenue generating uses … without burdening taxpayers.” He described SFMTA land — stations, bus yards, parking garages and lots — as assets that could support housing, retail and services while stabilizing transit revenue.

Melgar said the approach has precedents in other cities and framed it as a strategy to maintain Muni service without fare hikes or service reductions while meeting housing goals.

The board took the item “same house, same call” and the resolution was adopted without objection.

The resolution is a policy statement of support for SFMTA’s joint-development goals and appears intended to align the Board with the agency’s efforts to generate revenue from real property assets to support transit operations and housing objectives.