10/27/2026
Are the ads from the real estate developers and Mayor Lurie's media machine and his billionaire cronies around proposition I confusing you?
Here's the actual way in normal English not legi-speak) the legislation is supposed to work.
IT IS NOT A SLUSH FUND
IT DOES PROMISE NEW CONSTRUCTION and
IT DOESN'T INCREASE ANY TAXES
Read the following and VOTE YES ON PROP I
Are the opposition campaign ads and confusing talking points around Proposition I making it hard to see what's actually at stake? Here is how the Affordable Housing Guarantee Act actually works in plain English:
The "Affordable Housing Guarantee Act" is a San Francisco ballot measure designed to secure a dedicated funding stream for affordable housing without raising current tax rates. It takes existing real estate transfer tax revenues from high-value properties and permanently legally restricts them so they can only be spent on housing, preventing the City from diverting the money to other uses.
​Here is a detailed breakdown of how the measure works:
​The Tax Mechanism
​No New Taxes: The measure does not increase taxes above rates already approved by voters.
​How it Works: It technically lowers the existing general transfer tax on properties sold for $10 million or more by exactly half. It then creates a new, separate "House SF Tax" that immediately replaces that exact reduced amount ($13.75 per $500 for sales $10M–$25M, and $15 per $500 for sales over $25M).
​The Result: The total tax paid by property buyers remains the same, but the "House SF Tax" portion is now deposited into a heavily legally protected lockbox called the House SF Fund.
​Exemptions: The House SF Tax will not apply to the first sale of newly constructed apartment buildings (4+ units) that received a certificate of occupancy within the last 5 years.
​How the Money Will Be Spent
After covering a maximum of 5% for city administrative costs and any necessary tax refunds, the remaining funds must be spent in three specific buckets:
​1. Affordable Housing Production (At least 60% of funds)
​Alternative Models (At least 50% of this bucket): Funds "Social Housing Developments" where residents have a say in management, limited-equity housing cooperatives (where tenants have an ownership stake), and projects built on public land.
​Multifamily Affordable Housing (Remainder): Funds traditional low-income apartment construction and mixed rental/homeowner projects.
​2. Preservation and Acquisition (At least 25% of funds)
​New Acquisitions (At least 60% of this bucket): Funds nonprofits and Community Land Trusts to buy existing buildings (like rent-controlled apartments or residential hotels) to turn them into permanently affordable housing. Existing tenants will not be displaced, even if they make more than the low-income limits.
​Rehabilitation (Remainder): Funds capital repairs, seismic upgrades, and energy retrofits for existing affordable housing.
​3. Tenant Stabilization & Homelessness Prevention (At least 10% of funds)
​Eviction Defense (At least 50% of this bucket): Funds right-to-counsel legal services for tenants facing eviction, tenant outreach, and anti-harassment enforcement.
​Emergency Rental Assistance (Remainder): Provides short-term emergency funds (up to 6 months of rent) to stabilize low-income tenants facing sudden economic shocks.
​Strict Rules and Accountability
​Mandatory Audits: The City Controller must conduct an annual audit and publish a public report by February 15th every year detailing exactly how much was collected and where it was spent.
​Permanent Affordability: Buildings funded by this measure must have legally recorded covenants keeping them affordable in perpetuity (or the absolute maximum time allowed by law).
​Income Limits: Housing units are strictly reserved for low, very low, extremely low, and acutely low-income households.
​No Airbnb: None of the housing funded by this program can be used as short-term residential rentals.
​Board Restrictions: The Board of Supervisors cannot change these spending categories to fund temporary congregate homeless shelters that do not offer standard tenant lease protections.
