Budget committee increases 2024 bond authorizations for housing and public health, approves amendment 3-2 and continues item

The Budget and Appropriations Committee on April 26 voted 3-2 to amend the city's 10-year capital plan to increase 2024 general obligation bond authorizations for affordable housing and public health and continued the item to the May 3 committee meeting for further detail and legal review.

President Aaron Peskin said new property tax information created about $150 million in additional 2024 bond capacity and proposed allocating $140 million of that to an affordable housing and shelter bond and $10 million to a public health and shelter bond. "For 2024 there's an additional $150,000,000 of capacity," Peskin said, proposing the housing bond increase to $340,000,000 and the public health bond increase to $320,000,000.

Peskin and staff also referenced an estimate from the Department of Public Health that flipping the bond schedule could add "approximately $9,900,000 of additional cost" from an eight-month delay if projects are moved. The committee heard from the controller and the city attorney that the capital plan is advisory and that final bond authorizations and exact dollar amounts will return to the Board for separate votes.

Supervisor Asha Safaie moved the amendment on the floor, citing the urgency of housing needs and construction cost pressures. Safaie said increasing the affordable housing allocation now preserves the option to fund more housing projects that are ready to proceed. The motion was seconded and, after roll call, passed with Supervisors Chan, Safaie and Walton voting "aye" and Vice Chair Rafael Mendelmann and Supervisor Hillary Ronan voting "no." Clerks recorded the vote as three ayes and two noes.

Opponents stressed timing and planning concerns. Ronan said she was "not ready to commit to a bond" in March 2024 and raised strategic concerns that a large local housing bond in March could affect a larger regional housing bond planned for November. Vice Chair Mendelmann and others urged more advance project planning, particularly for behavioral-health capital needs, and warned against allocating funds to programs that lack detailed scopes and CEQA review.

Public commenters attending and calling in pressed supervisors to include a labeled climate bond or to ensure each bond explicitly tracks greenhouse gas outcomes. Elena Engel of District 9 said climate labeling and explicit decarbonization goals are necessary: "You have to set out to decarbonize, whether it's transportation or buildings." Other speakers asked the committee to prioritize behavioral-health facilities and community-based models that require capital but limited operating subsidies.

Officials and staff said the capital plan sets targets and direction rather than binding allocations. Anna Van Dygna of the Controller's Office said any actual bond issuance would require additional Board action, and Deputy City Attorney Anne Pearson confirmed the plan is intended to reflect the Board's vision and does not itself bind final dollar amounts.

The committee approved the amendment and then voted to continue the item one week to allow staff to prepare the amended language and for departments to advance necessary planning and compliance work. The item will return to the Budget and Appropriations Committee on May 3, after which the Board may consider placement of bond measures on future ballots.

Actions recorded at the session: the committee amended the capital plan to increase the affordable housing and shelter general obligation bond to $340,000,000 and the public health and shelter general obligation bond to $320,000,000; the committee voted to continue the resolution to the May 3 meeting for additional preparation.