Unprecedented Investment from Prop I Shows More than 100 Homes Saved from Speculative Market, Converted into Affordable Housing

SAN FRANCISCO — A SOMA property with six long-term families, an SRO with 64 homes badly in need of repair, a North Beach apartment building where tenants have lived for 30-plus years – these are just a few of the properties that were acquired and turned into permanently affordable housing, thanks to Prop I affordable housing funding approved in November 2021.

More than 100 homes across seven different buildings in San Francisco were preserved by this historic investment, according to a letter from the Mayor’s Office of Housing and Community Development in response to an official inquiry from Supervisor Dean Preston. It is the first indication of how the city has spent Prop I affordable housing acquisition funds to date.

“This is a resounding victory for affordable housing,” Preston said. “Thanks to voters approving our tax on the wealthiest real estate investors, we have already saved more than 100 households from eviction by having the city step in to fund the purchase of their homes, take them off the private speculative market, and make them permanently affordable.”

San Francisco’s acquisition program allows the city to step in and purchase residential buildings, taking them off the private speculative market and converting them to permanently affordable housing. Since its launch in 2014 to 2021, the program acquired 47 residential buildings (368 units). However, the program since its inception has struggled to scale up because it lacks a source of dedicated funds.

In November 2021, with the backing of more than 40 organizations, including housing justice advocates LGBTQ+ groups, and prominent labor organizations, the Board of Supervisors approved an historic $64 million investment in the preservation program. The appropriation has allowed for a major ramp up of the program. The measure was strongly opposed by the Mayor, but passed the board by a veto proof 8-3 vote.

At the time, residents at 1130 Filbert Street spoke out about their concern of displacement if their building was sold.

“I’ve lived in my home for more than 30 years, and all the other tenants are long-term residents as well. When the owner announced his intention to sell, opening up the building for developers and speculators, we were haunted by the specter of displacement for no fault of our own,” said Patricia de Larios, a longtime resident of the Filbert Street property. “When the city stepped in and bought the building, it was hard to describe my sense of relief – a mixture of thrill and calm. I am incredibly grateful to the housing advocates and city leaders who prioritize preserving not just my home, but the homes of so many other long-term San Franciscans.”

The four unit building at 1130 Filbert Street was one of the seven properties whose acquisition was funded by the $64m investment.

The $32.1m expenditures to date on housing acquisitions are less than half of the remaining balance in the Housing Stability Fund, with more than $41m remaining to be spent for similar acquisitions.

“We have long believed that ramping up community land trusts is a key part of creating an affordable city, and we are thrilled to see Prop I funds being used to preserve housing and make it permanently affordable,” Preston said. “We are eager to see the remaining funds be put into action to save even more San Franciscans from displacement.”

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