Committee sends San Francisco's Pro Housing Designation application to full Board with positive recommendation

At its April 2024 meeting, the San Francisco Board of Supervisors’ Land Use and Transportation Committee voted 2-0 to send a resolution to the full Board that authorizes the Mayor’s Office of Housing and Community Development (MOHCD) to apply for the California Department of Housing and Community Development’s Pro Housing Designation.

Sheila Nicolopoulos, director of policy and legislative affairs for MOHCD, told the committee the designation would give San Francisco "additional points in applications for competitive housing and infrastructure funding," naming the Affordable Housing and Sustainable Communities program and the Infill Infrastructure Grant program as examples. She said the city has resubmitted an application under updated state guidelines and that the state is expected to complete review by May 17.

Nicolopoulos outlined eligibility thresholds, including a compliant housing element, annual progress report submission, compliance with state housing laws, and adoption of identified best practices. She emphasized the designation does not require new local policy changes: "The application identifies existing policies and programs only. It does not commit the city to any policy changes," she said.

Nicolopoulos described three housing projects with pending AHSC applications totaling 352 units and noted those applications seek up to $50 million each, characterized in the presentation as $35 million for housing development and $15 million for supporting transportation improvements; she also referenced a separate $26 million transportation grant application by the Municipal Transportation Agency (MTA).

Vice Chair Dean Preston expressed qualified support for pursuing competitiveness for state funds but criticized the state's "Pro Housing" label and framing. "Nobody can actually explain what pro housing is," Preston said, arguing the designation can conflate incentives for market-rate development with the creation of affordable housing and may prioritize policies that increase land values. He also raised concerns that mayoral decisions have, in his view, obstructed or defunded some Board-led affordable housing efforts.

John Avila of the Council of Community Housing Organizations spoke during public comment and urged the committee to support the resolution while flagging a resolved clause that, in his view, could limit future local legislative options to address displacement. "Please support this resolution," Avila said, but he cautioned the committee about language that might "tie the hands" of the city in pursuing other measures.

Chair Supervisor Marina Melgar moved that the committee send the resolution to the full Board with a positive recommendation. The clerk recorded Vice Chair Preston and Chair Melgar voting "I"; Member Peskin was excused. The committee’s recommendation will appear on the Board of Supervisors agenda on April 16, 2024 for final consideration.

The committee’s action advances San Francisco’s application but does not change local policy or commit the city to new measures; MOHCD and other city agencies will await HCD’s review and report back as required.