San Francisco residents will have a chance this November to determine whether their taxes will be diverted to support a new funding stream for affordable housing development.
The San Francisco Chronicle reports that the upcoming ballot referendum is designed to directly fund 4,500 housing units while offering middle-income residents up to $100,000 with down-payment assistance. This proposal, which Mayor Ed Lee refers to as the ‘Housing Trust Fund,’ will be financed by diverting 0.6% of the city's hotel tax, channeling future property tax revenue that was aimed for an inactive municipal redevelopment agency, and harvesting business license fees that will be part of a proposed overhaul of the city's business tax operations.
The proposed affordable housing plan is designed to generate $20 million in its first year and grow to $50.8 million within 12 years. However, the referendum is predicated on a separate ballot measure requiring voter approval of the aforementioned business tax overhaul – the city will be allowed to indefinitely postpone the affordable housing measure if voters reject the business tax initiative.
