Supervisors Unanimously Pass Ordinance to Infuse Estimated $45 Million into Affordable Housing

Affordable housing providers are expected to see tens of millions in funds following the unanimous passage of a law proposed by Supervisor Dean Preston that modifies transfer tax rules to exempt affordable housing refinancing.

“We have a desperate need for more affordable housing, and this is an important step in reforming our laws to provide targeted relief to help create more housing that low-income and working class San Franciscans can afford,” said Supervisor Preston.

The ordinance partially exempts affordable housing, and certain transactions related to affordable housing financing, from paying the city’s transfer tax. It also reduces fees and penalties for previous transfer tax assessments for affordable housing providers. The City’s Budget and Legislative Analyst estimates the law will result in between $30m and $45m in combined tax refunds and future tax savings, all of which will help create more funding for affordable housing.

"This legislation is about untying the hands of affordable housing organizations who only want to do their best to house San Francisco’s families, seniors, and most vulnerable residents,” said John Avalos, Executive Director of the Council of Community Housing Organizations, a coalition representing 22 mission-driven community housing and development organizations. “With the relief that this ordinance provides, affordable housers will have more financial ability to operate and steward their housing sites and their relationship to the surrounding communities. Tenants and their neighborhoods will be better served as a result.”

The effort comes as San Francisco continues to struggle to find ways to meet new affordable housing targets. The recently-adopted Housing Element requires the city to produce 46,000 affordable homes by the end of 2030. In the latest housing production cycle, the City only met half of its affordable housing targets, despite the goals being less than a third of the current target.