Mayor Lurie Celebrates New State Law Making it Easier to Build Affordable Homes in San Francisco

SAN FRANCISCO – Mayor Daniel Lurie today celebrated the signing of AB 1294, unlocking state funding to build more housing affordable to working people in San Francisco. The new law, authored by Assemblymember Matt Haney and sponsored by Mayor Lurie, will help stimulate the creation of new workforce housing as the cost of living rises. The law lowers property tax costs for qualifying nonprofit developments that serve teachers, nurses, firefighters, police officers, construction workers, and other middle-income Californians.

The new law builds on Mayor Lurie’s work to support affordable housing construction and make San Francisco more affordable for families through his Family Opportunity Agenda. Mayor Lurie recently proposed a major investment in the city’s Housing Trust Fund that will be on the November ballot, after passing the Family Zoning plan last year to build new homes so future generations of San Franciscans can afford to raise their children in the city. In recent months, Mayor Lurie has opened new affordable homes across San Francisco’s Bayview-Hunters Point, Mission, Hayes Valley, and Haight-Ashbury neighborhoods, while breaking ground on 100% affordable artist housing on Market Street at the end of July and on 7,200 long-awaited homes at the former Candlestick Park stadium site in September. While building more housing, the mayor is also helping San Franciscans stay in their homes today: Earliest this month, he announced a package of immediate action in partnership with the Board of Supervisors to protect renters from unwarranted evictions and prevent sudden rent spikes.

“In San Francisco, we have been pulling every lever to build more homes more quickly, from rezoning the city to launching a new streamlined permitting platform, because we want this to be a city where you can put down roots,” said Mayor Lurie. “And now, in partnership with Assemblymember Haney, we are taking a new step to help build affordable homes for teachers, nurses, firefighters, police officers, and working people who should be able to live in the city we all love. I want to thank Assemblymember Haney for his leadership and Governor Newsom for his signature.”

“California’s housing crisis is pushing out the very people our communities rely on every day,” said Assemblymember Haney. “Teachers, nurses, firefighters, and other essential workers are earning too much to qualify for most affordable housing programs, but not enough to keep up with the cost of living where they work. AB 1294 gives communities a new tool to build housing for people like them.”

The new law establishes a targeted three-county workforce housing pilot in Alameda and Sacramento counties and the city and county of San Francisco. Under the pilot, eligibility for California's welfare property tax exemption will be expanded to include qualifying rental housing serving households earning up to 120% of area median income for up to 15 years.

“San Francisco has long needed a reliable way to produce middle-income housing,” said Daniel Adams, Mayor’s Office of Housing and Community Development Director. “By providing a time-limited property tax exemption for new moderate-income housing, this pilot provides a path forward for projects that will help keep San Francisco’s workforce connected to the communities they serve.”

“AB 1294 is a targeted and time-limited pilot program that will allow nonprofit organizations to deliver true mixed-income communities that include units for moderate-income households,” said Michael Lane, San Francisco Bay Area Planning and Urban Research Association State Policy Director. “The measure will improve feasibility for such projects while ensuring the benefits flow to tenants in the form of lower rents. Local elected officials often request exactly this type of development in order to meet their state-mandated ‘fair share’ housing targets while serving a broader range of households and more of the local workforce.”

“San Francisco’s future depends on whether essential workers can afford to call it home,” said Enrique Landa, Fifth Space CEO. “This program gives builders a practical tool to deliver more workforce housing. At Fifth Space, we’re ready to put it to work through our Essential Housing Fund, because the people who keep this city running should always have a place in it.”