Mayor Lurie Announces Support for Measures to Support Small Businesses, Strengthen Affordability as part of Family Zoning Plan

SAN FRANCISCO – Mayor Daniel Lurie today announced support for measures that will support small businesses and prioritize affordability for San Franciscans as part of his Family Zoning plan. The set of protections and incentives build on months of community and business engagement and are designed to ensure that San Francisco’s small businesses grow stronger alongside new housing. In addition to support for small businesses, the plan preserves protections for existing multifamily housing by maintaining safeguards against demolition, requiring replacement of rent-controlled units, and bolstering San Francisco’s tenant protections, which are already among the strongest in the nation.

Mayor Lurie’s Family Zoning plan has gained broad support from community groups across the city—including San Francisco Firefighters Local 798 and the San Francisco Police Officers Association, the Golden Gate Restaurant Association, the Small Business Commission, the Youth Commission, small business owners, and community leaders.

The Family Zoning plan builds on Mayor Lurie’s work to make San Francisco affordable to future generations by standing up more housing. Last week, he cut the ribbon on San Francisco’s first 100% affordable housing development for San Francisco Unified School District educators and staff. In his Heart of the City executive directive unveiled earlier this week, the mayor laid out a plan to accelerate his Downtown Revitalization Financing District program, making it easier to complete office-to-residential conversions.

“Too many San Franciscans are asking whether they can afford to raise their kids here, and too many young people are wondering if they’ll be able to stay in the city they call home,” said Mayor Lurie. “The Family Zoning plan strengthens our neighborhoods and benefits our small businesses. More neighbors mean more customers, more life on our streets, and more people able to live in the communities they serve as teachers, nurses, or first responders.”

Earlier this week, the Family Zoning plan received preliminary approval from the California Department of Housing and Community Development (HCD), which confirmed that the plan complies with state housing mandates. HCD stated in a letter that the current rezoning package is “sufficient” and warned that additional changes could endanger that approval if they reduce the likelihood of building new housing. If San Francisco is deemed out of compliance, the city risks losing local control over zoning decisions and jeopardizes hundreds of millions of dollars per year in state affordable housing and transportation funds. 

Mayor Lurie also announced his support for District 7 Supervisor Myrna Melgar’s legislative package advancing a small business construction relief fund and affordable and rent-controlled housing in rezoned neighborhoods.

As the Family Zoning plan moves forward, the Mayor’s Office has proposed a set of amendments that will be heard at the Planning Commission today, including:

• Early notification for businesses: Commercial tenants and the Office of Small Business will receive notice as soon as a new housing project application is filed, giving businesses more time to plan and respond.
• Relocation assistance: Displaced businesses will be eligible for waived permit fees, streamlined approvals, and grants. Developers will be incentivized to include space for relocated businesses in new projects.
• Business-friendly spaces: Shops and services will be allowed in more spaces, with bonuses offered for projects that include legacy businesses, affordable “micro-retail,” or community-serving uses such as grocery stores, childcare, laundromats, and nonprofit offices.
• Support for affordable buildouts: Projects can earn additional height or square footage by providing “warm shell” tenant improvements, reducing the cost for small businesses—particularly restaurants and food services—to move into new spaces.

“San Francisco’s firefighters want to live in the city we serve—but rising housing costs have priced too many of us out,” said Sam Gebler, Vice President of San Francisco Firefighters Local 798. “Mayor Lurie's Family Zoning plan will give us the chance to live in San Francisco and be a part of the neighborhoods, schools, and small businesses we protect. This is a critical step toward making housing affordable for working families and keeping public safety rooted in community.”

“San Francisco’s small businesses are the backbone of our neighborhoods and economy,” said Cynthia Huie, San Francisco Small Business Commission President. “The Family Zoning plan is a thoughtful step to boost foot traffic, increase worker housing, and strengthen community connections—essentials for helping our businesses thrive and preserving the unique character of our city. I look forward to continuing to work with our city leaders on innovative ways to ensure small businesses are well supported.”

“As a small business owner and homeowner in San Francisco, the Family Zoning plan just makes sense,” said Teddy Kramer, Owner of NEON community and coworking space. “It will drive more customers to my business, provide housing for my employees, and revitalize major transit corridors that have been untouched for almost 50 years. Family Zoning will ensure future generations can call San Francisco home for a very long time.”

“San Francisco needs to invest in building more housing for families and young San Franciscans to help them continue to thrive in our city,” said Gabrielle Listana, incoming Chair of the San Francisco Youth Commission. “This plan needs to ensure we are not only creating affordable and diverse housing options, but investing in small businesses, creating pathways to homeownership for young residents, and expanding our access to additional modes of public transportation.”

“San Francisco faces a severe housing shortage that impacts businesses across the city.  Many workers in our restaurant community are forced to live far from their jobs or spend a large portion of their income on rent,” said Laurie Thomas, Golden Gate Restaurant Association Executive Director. “The Family Zoning plan, along with Supervisor Melgar’s Small Business Mitigation Fund, will expand housing in more neighborhoods, while providing safeguards for small businesses and keeping San Francisco eligible for critical state funding.”

“Mayor Lurie’s Family Zoning plan will help families afford to live and raise their children in San Francisco,” said Parag Gupta, SFUSD School Board Member. “As both a Sunset parent and a school board member, I know how important it is for families, and for our teachers, to be able to stay in the city they serve. This plan will make it possible for families and, in the future, our children, to afford to stay in the city. I’m proud to support it.”