Board approves ordinance giving preference to redevelopment-era residential certificate-holders in affordable housing programs

The San Francisco Board of Supervisors voted on Oct. 7 to approve on first reading an ordinance providing that holders of residential certificates of preference (COPs) under the San Francisco Redevelopment Agency’s property owner and occupant preference program receive a preference in the City’s affordable housing programs.

Sponsor remarks and amendments

Supervisor Mark Mercarini introduced the ordinance, the result of outreach to community groups including Japantown and African American neighborhood leaders, redevelopment staff and the Mayor’s Office of Housing. Mercarini and his co-sponsors argued the measure responds to historic displacement from redevelopment-era projects in the Western Addition/Japantown area and attempts to provide a tangible pathway for those displaced to access city affordable housing.

Mercarini read three amendments into the record: 1) insert the word “residential” before “certificate of preference” throughout the ordinance; 2) add a printed/referenced citation to the Redevelopment Agency program text and file number; and 3) add a paragraph to Section 24.8 requiring the Board to hold a hearing within two years of the ordinance’s effective date to assess impact if the Mayor’s Office of Housing certifies that in any fiscal year residential COP holders obtain more than 50% of the units made available through the city’s affordable housing programs combined.

Debate highlights

Supervisors debated the trade-offs between redressing past displacement and avoiding pitting one community against another for scarce affordable units. Supervisor Daly proposed a hard cap of 50% rather than a trigger that would require a hearing; that motion failed 4–6. Supporters—including representatives of community organizations and redevelopment officials—said they lacked evidence to expect a flood of COP redemptions and urged aggressive outreach to locate certificate-holders so they could access housing opportunities.

Votes and outcomes

- Amendment of the whole (three sponsor amendments): adopted by unanimous consent, then item as amended proceeded to roll-call vote. - Motion to impose a hard 50% cap on COP preference (proposed by Supervisor Daly): failed 4 ayes, 6 noes. - Ordinance as amended (item 15) on first reading: roll-call vote — 10 ayes. Ordinance passed on first reading as amended by Supervisor Mercarini.

Clarifying details and context

- Sponsor cited an estimate that more than 5,500 families could be eligible for certificates of preference resulting from Western Addition/Japantown-era redevelopment; the sponsor said few had been redeemed historically. - The ordinance text as amended adds the word “residential” in front of certificate-of-preference references and requires a Board hearing if residential COP holders account for more than 50% of affordable units in any fiscal year (trigger to review impact). - Mercarini and partners said outreach and collaboration with the Mayor’s Office of Housing and community groups would be part of implementation; redevelopment staff and the Mayor’s Office participated in drafting and supplied data in committee.

Why it matters

The ordinance attempts to address historical displacement by giving redevelopment-era residential certificate-holders a route to claim preferences in municipal affordable housing lotteries and programs. Supervisors emphasized outreach and monitoring to avoid unintended exclusion of other low-income groups and committed to returning to the Board if the COP preference usage rose substantially.