Supervisor Chen introduces charter amendment to create a municipal finance corporation and public bank

Supervisor Dean Chen on May 19 introduced a charter amendment to create a municipal finance corporation and a public bank as tools to support housing affordability, small business lending, and climate resilience in San Francisco.

Chen told the board the proposal is modeled on examples such as the Bank of North Dakota and follows pathways enabled by the California Public Bank Act. He said the municipal finance corporation and public bank would “reinvest all profits back into lending for the community,” and that governance safeguards would include oversight from elected financial officers and nominations designed to ensure financial expertise.

Chen also announced a hearing request tied to an unrelated procurement matter: he said his office will seek further information and a report from the mayor’s office, the mayor’s housing office, and the Department of Homelessness and Supportive Housing about a $4.7 million contract awarded without competitive bid, citing unanswered questions about selection criteria and expected outcomes.

Why it matters: A public bank or municipal finance corporation would create a new local financing vehicle that could change how the city funds affordable housing, energy retrofits, and community development. Chen framed the idea as a way to leverage local capital to meet city priorities while keeping profits in the community.

What happens next: The charter amendment was introduced for consideration (the transcript records an introduction and related cosponsors); formal hearings and ordinance language drafting will follow the charter‑amendment process. A separate hearing was requested to examine the competitive procurement questions tied to the $4.7M contract.

Quotes: “Public banks magnify the power of their investments by reinvesting all profits back into lending for the community,” Chen said. “The California Public Bank Act… provides a pathway for San Francisco to take this step.”