San Francisco Board considers rent forgiveness for struggling non-residential tenants

The San Francisco County Budget and Finance Committee convened on July 4, 2025, to discuss critical measures aimed at supporting local businesses impacted by the COVID-19 pandemic. The meeting was held remotely to ensure the safety of board members, city employees, and the public, in compliance with ongoing health directives.

A significant agenda item was the proposal to authorize the city administrator to amend certain leases and forgive rent due for non-residential tenants from April to December 2020. This initiative is designed to alleviate financial burdens on businesses that have struggled during the pandemic. The city administrator emphasized that the current rent deferral measures are insufficient for many tenants, prompting the need for outright rent forgiveness.

Three specific tenants were highlighted for potential rent waivers: New Asia Restaurant, the New Conservancy Theatre, and a pop-up restaurant owned by Steven Paoli. Each of these businesses has faced severe financial challenges due to prolonged closures and a lack of income.

- **New Asia Restaurant**, a banquet hall, has been closed since March 2020 and is seeking forgiveness of $202,500 in rent. The owner expressed that the accumulated debt would hinder their ability to reopen and retain employees.

- **The New Conservancy Theatre**, a small venue for live performances, is requesting $32,723.92 in rent forgiveness. Despite receiving federal assistance, the theatre has exhausted its resources and cannot sustain rent payments without income from events.

- **Steven Paoli's pop-up restaurant** is seeking $22,500 in rent forgiveness. The business has been closed since March 2020, and the owner has not received any federal funds or grants, making it financially unfeasible to reopen under current debt conditions.

The committee acknowledged the importance of these businesses to the local economy and community, noting that the proposed rent waivers could help prevent further closures and support the eventual recovery of the city’s cultural and entertainment sectors. The committee is expected to forward these recommendations to the Board of Supervisors for further consideration.