San Francisco Mayor Daniel Lurie and Supervisor Myrna Melgar have announced a major new affordable housing funding initiative aimed at significantly increasing long-term investment in housing development across the city. The proposal centers on expanding the city’s Housing Trust Fund to support the construction and preservation of more affordable homes while addressing the ongoing housing shortage. The plan is positioned as a long-term financial commitment to stabilize housing supply and improve affordability for residents.
Under the proposed framework, the city’s annual contribution to the Housing Trust Fund would more than double, increasing from approximately $52 million to $125 million over time. The funding mechanism would allocate a portion of future property tax growth into the fund, ensuring a steady and scalable revenue stream dedicated to affordable housing. The plan also includes provisions allowing the city to leverage bond financing backed by the fund, enabling additional large-scale investment from private and institutional sources.
The initiative is closely tied to broader housing policy changes, including efforts to accelerate development by adjusting requirements for affordable housing inclusion in new market-rate projects. Alongside increased funding, city officials are also considering reforms intended to streamline housing construction and reduce barriers for developers, with the goal of increasing overall housing production while maintaining affordability targets.
City leaders have emphasized that the expanded funding strategy is designed to address San Francisco’s persistent housing shortage, which has contributed to rising rents and affordability challenges across income groups. By combining increased public investment with regulatory adjustments, the plan aims to unlock new housing supply, preserve existing affordable units, and support long-term community stability.
Overall, the initiative reflects a coordinated effort by city leadership to scale up affordable housing production through sustained public financing, strategic policy reform, and increased use of financial tools that can attract additional investment into housing development across San Francisco.
