S.F. supervisors want tax breaks for developers retrofitting downtown offices into housing

The San Francisco Budget and Finance Committee unanimously supported a resolution to provide tax breaks for developers converting downtown office spaces into housing. This initiative seeks to create a special district encompassing at least 49 commercial properties, potentially generating around 4,400 new housing units. Expected property tax revenue from these conversions could reach $15. 2 million, which would be disbursed back to developers instead of contributing to the city's general fund. Despite concerns from District 1 Supervisor Connie Chan about the extent of the incentives, she ultimately voted in favor.

The resolution is part of broader efforts to revitalize downtown San Francisco, following recent voter-approved measures like Proposition C, which waived transfer taxes for such conversions. The city faces a $781. 5 million budget deficit, complicating the financial landscape for these initiatives. Mayor Daniel Lurie is set to present a draft budget to the Board of Supervisors on June 1. This resolution represents a continuation of past efforts to stimulate downtown investment, reminiscent of the "Twitter tax break" introduced after the 2008 financial crisis.