San Francisco voters turned down Proposition I, an affordable‑housing measure, by a 52‑48 margin as of Monday, trailing by 11,735 votes with 99.5% of the vote counted, according to Mission Local. The defeat means the city will not redirect half of its real‑estate transfer tax on sales over $10 million toward new “social housing” projects.
Proposition I would have taken an estimated $100 million-plus in annual revenue—currently funneled into the general fund—and dedicated it to a range of affordable‑housing initiatives, including tenant‑run social‑housing complexes. It also sought to lock in the city’s transfer‑tax rate, one of the nation’s highest, and require any future changes to be decided by voters rather than city supervisors.
The measure faced $2.8 million in opposition spending from the real‑estate lobby, construction unions, and housing developers, according to Mission Local. Mayor Daniel Lurie publicly opposed the proposition and contributed $200,000 through venture‑capitalist Michael Moritz, a real‑estate investor and Lurie ally. The San Francisco Apartment Association, the San Francisco Chamber of Commerce, private developer Related, and construction unions also donated to the “No” campaign.
Opponents framed the proposal as a “slush fund,” arguing that the mayor’s housing office already tightly controls the disbursement of transfer‑tax revenue. While the mayor’s office disputed that characterization, the message was widely circulated through mailers and television ads across the city.
Supporters of Proposition I warned that past mayors had directed the transfer‑tax revenue to the general fund despite a 2020 voter approval to double the tax on multi‑million‑dollar deals. They argued that earmarking the funds would create a permanent source for affordable housing, while critics feared the loss of city control over the tax and the requirement for future ballot measures to adjust it.
At the same time, voters approved Proposition C, which expands the city’s affordable‑housing trust fund to $125 million a year. Mission Local reported that Proposition C secured 82% of the vote as of Saturday, indicating strong public support for expanding existing housing subsidies.
What’s next: With Proposition I defeated, the transfer‑tax revenue will continue to flow into the general fund under the current system. City officials may revisit affordable‑housing financing options in future elections, and the successful passage of Proposition C will guide the expansion of the existing trust fund.
Sources: missionlocal.org
