Supervisor Daley's affordable housing charter amendment fails after 4-7 roll call; measure would have set 33% of surplus to housing fund

A charter amendment proposed by Supervisor John Daly that would have required the city to dedicate one-third of any general-fund surplus to a new San Francisco Affordable Housing Fund failed on a 4-7 roll call Tuesday.

Sponsor's rationale and design: Daly said the amendment would use the controller's nine-month report as the basis for computing surpluses and, in years with a surplus, dedicate 33% of the surplus to the housing fund. The proposal included a 15-year sunset and a "release valve" that allowed the board to suspend the set-aside by an eight-member supermajority if an emergency or competing priority required the funds elsewhere. Daly described the measure as a pragmatic alternative to a two-thirds voter requirement for a general-obligation bond.

Opposition and concerns: Several supervisors opposed the measure on budget-flexibility grounds. Supervisor Scott Ellsberg said the charter amendment would restrict future boards and mayors and limit the government's ability to respond if a surplus masked a multi-year structural shortfall. Other supervisors noted the city's existing charter and budget tools to allocate funds and expressed concern that a guardrail in the charter could complicate multi-year budget planning.

Fiscal baseline and controller estimate: Monique Smuda of the controller's office testified that the proposed maintenance-of-effort baseline for housing was approximately $135.6 million for the current fiscal year; the controller's office also explained how the baseline would be adjusted annually based on aggregate discretionary revenue.

Vote and outcome: The board voted 4 in favor and 7 opposed. "The motion to submit the charter amendment fails," the president announced.

Why it mattered: Proponents framed the ballot measure as a way to create a stable, recurring stream of funding for affordable housing without relying on voter approval of new bonds. Opponents said the charter is not the right place to lock in formulaic spending and that the proposed set-aside could reduce flexibility for future budgets.

Ending: Daly said the long-term lack of a sustainable local funding stream for housing motivated the proposal, and he expressed hope the board would continue work on housing funding options.