Board OKs $64.1 million from reserves to speed housing acquisitions after extended debate

The San Francisco Board of Supervisors voted 8-3 on Nov. 30 to appropriate $64,100,000 from the city’s fiscal reserve to the Mayor’s Office of Housing and Community Development (MOHCD) for acquisition, creation and operation of permanently affordable social housing under the Housing Stability Fund.

Supervisor Preston introduced the midyear supplemental appropriation, saying the funds will allow the city to acquire at‑risk multifamily buildings and prevent pandemic‑related displacement. “The time to act on this item is now,” Supervisor Preston said, urging colleagues to vote to “prevent displacement, and to create permanent affordable housing by jump‑starting our housing acquisition work.”

The measure draws on Prop I revenues and other fiscal‑reserve sums and follows recommendations from the Housing Stability Fund Oversight Board, which supported using first‑year Prop I funding for acquisition and preservation of existing multifamily buildings. Supporters framed the allocation as a rapid response to market activity: sponsor remarks cited recent sales of multiple small buildings and named investor purchases in the city.

Opponents and cautious supporters pressed for program fixes and implementation assurances before committing large sums. Supervisor Melgar, Supervisor Safaie, and Supervisor Stephanie said the city must resolve structural issues in the small‑sites acquisition program — including financing, marketing and occupancy delays — before adding substantial money. “Promising folks that we're going to save them from eviction because we're putting money into this program that is not currently viable to me is an empty promise,” Supervisor Melgar said.

Supervisor Ronan said she supported the appropriation on personal grounds and on the practical need to protect rent‑controlled households and seniors from displacement, and described long‑term community impacts of losing rent‑stabilized housing.

The board debate also included acknowledgments of recent commitments from the mayor’s office to restructure program rules and expedite administrative changes. Several supervisors urged rapid collaboration between MOHCD and nonprofit housing providers to ensure the money can be deployed quickly and safely.

On the roll call for first reading, the measure passed 8 to 3. Supervisors Marr, Peskin, Preston, Ronan, Walton, Chan, Haney and Mandelmann voted aye. Supervisors Melgar, Safaie and Stephanie voted no. The ordinance passed first reading; additional procedural steps and any implementing regulations remain to be completed before funds are spent.

Why it matters: Supporters say the appropriation could preserve long‑standing affordable units and stabilize households facing market pressure; critics warned that money without immediate, operational fixes could sit idle or put nonprofit partners at financial risk.

What’s next: The measure passed first reading on Nov. 30; the board completed first‑reading approval and will follow the usual ordinance adoption schedule and any required administrative follow‑ups at MOHCD.