The ordinance allows the City to reallocate about $34.8 million from the Our City, Our Home Fund to provide services for homelessness through Fiscal Year 2026-27, while also permitting additional spending on homelessness programs if revenues exceed budgeted amounts. It temporarily lifts funding limits for short-term rental subsidies to better address homelessness needs.
Ordinance authorizing the City to reallocate approximately $34,777,000 in prior appropriated revenue and unappropriated earned interest within the Our City, Our Home (“OCOH”) Fund, to allow the City to use revenues from the Homelessness Gross Receipts Tax through Fiscal Year (FY) 2026-27 for certain types of services to address homelessness, notwithstanding the expenditure percentages set forth in Business and Tax Regulations Code, Section 2810; where future revenue and interest to the OCOH Fund exceeds amounts appropriated in the adopted budget for fiscal years 2025-2026 and 2026-2027, authorizing the City to expend up to $19,100,000 of such additional revenues and interest on any programs to address homelessness as described in Business and Tax Regulations Code, Section 2810, without regard to the expenditure percentages in that section; temporarily suspending the limit on funding for short-term rental subsidies; and finding that these reallocations are necessary to achieve the purposes of the Our City, Our Home Fund pursuant to Business and Tax Regulations Code, Section 2811.
How it got here
The legislation originated from the need to reallocate funds within the Our City, Our Home Fund to better address homelessness in San Francisco.
Voters approved Proposition C, which imposed a Homelessness Gross Receipts Tax to fund programs aimed at preventing and addressing homelessness, establishing the Our City, Our Home Fund.
The Board adopted Ordinance Nos. 185-23 and 202-24, reallocating over $30 million in interest income from the OCOH Fund to address homelessness more effectively.
The Mayor's Office submitted a budget proposal that included a request to reallocate approximately $88,495,000 from the OCOH Fund to address homelessness, along with a request for a 30-day waiver for the legislation.
The Budget and Appropriations Committee reviewed the proposed ordinance and discussed reallocating funds to support various homelessness programs, including shelter and hygiene services.
The committee amended the ordinance and referred it to the Board of Supervisors for further consideration, allowing for the reallocation of funds despite the usual expenditure percentages.
The Board of Supervisors finally passed the ordinance, allowing the reallocation of funds from the OCOH Fund to address homelessness through FY 2027-28.
The Mayor approved the ordinance, finalizing the reallocation of funds to support homelessness services in San Francisco.
Reconstructed from attached documents & the official record
The ordinance reallocates about $13.7 million in interest revenues from the Our City, Our Home Fund to support services for homelessness and temporarily lifts the funding limit for short-term rental subsidies. It also requires the City to give more information about eligibility for these subsidies to help achieve the fund's goals.
The ordinance reallocates about $16.36 million in interest revenues from the Our City, Our Home Fund to support services aimed at preventing homelessness and temporarily lifts the funding limit for short-term rental subsidies. This is intended to enhance the effectiveness of the Our City, Our Home Fund in addressing homelessness issues.
