Board approves first reading of forgivable-loan program for first-time buyers amid amendments and committee referral

Supervisor Melgar introduced an ordinance to create a forgivable-loan program for first-time homebuyers and offered amendments to codify the Mayor's Office of Housing and Community Development's (MOHCD) role in administering the program. The Board passed the ordinance on first reading as amended and re-referred a duplicated, amended file to the Land Use Committee for additional review.

The measure would amend the Administrative Code to establish a Forgivable Loan for First-Time Homebuyers Program and a corresponding fund to assist low-, moderate- and middle-income first-time buyers. The text included provisions directing the Human Rights Commission (HRC) to publish program regulations and submit annual reports to the Board in consultation with MOHCD.

Why it matters: sponsors said the program aims to narrow intergenerational wealth gaps and increase homeownership among communities harmed by displacement and targeted economic disruption. Supporters argued HRC oversight paired with MOHCD technical administration would combine equity oversight with implementation capacity.

Sponsor remarks and amendments Supervisor Melgar, the sponsor, described the intent and amendments on the floor: "I'm very proud to sponsor this legislation along with supervisor Walton today." She read a set of amendments that would explicitly require the HRC to consult and, where appropriate, delegate functions to MOHCD, add a MOHCD director definition, clarify budgetary and fiscal provisions, and change reporting language to specify consultation with MOHCD.

Supervisor Preston asked to postpone the vote early in the discussion to consult with the City Attorney and HRC director, stating, "could we then postpone the vote on this item until later on the agenda so that I may check with the city attorney and also with the HRC director?" After consulting, Melgar and others agreed to adopt the amendments she read and to duplicate the file with the amendments for committee review.

Votes and next steps The Board approved the amendments and passed the ordinance on first reading as amended. The roll-call vote on the amended item was 10 ayes and 1 no (Supervisor Peskin voting no). Supervisor Melgar then moved, and the Board approved, a duplicated amended file and re-referred that duplicate to the Land Use Committee for further consideration of substantive changes. The duplicate file was also amended on the floor to change two instances of "may" to "shall" in language at page 6 (lines 18 and 22) and that duplicated, amended file was re-referred to Land Use.

Discussion versus decision The Board's floor action established the ordinance on first reading and set the duplicate file for additional committee vetting; it did not finalize implementation details. The final scope, including program regulations, budget allocations, and operational delegation, remains subject to the duplicate-file committee process and to subsequent Board votes as required by the charter and budget process.

Implementation and timeline Sponsor remarks referred to an annual reporting deadline in the ordinance and a target reporting date (July 30) that motivated the sponsor to move expeditiously while preserving committee review. The HRC would produce regulations "in consultation with MOHCD," and MOHCD staff were described as the likely technical implementers if the Board finalizes the program in later votes.

Quotations in this article are from statements recorded in the Board transcript of the March 5, 2024 meeting.