SF Mayor Breed Introduces Ballot Measure to Encourage Office-to-Residential Conversions

Mayor London N. Breed is taking bold steps to revitalize Downtown San Francisco by proposing a crucial ballot measure set to appear in the March 2024 ballot.

What the proposed measure is about:  This innovative measure aims to invigorate the city's downtown area by waiving the transfer tax on buildings that undergo conversion from non-residential to residential use. The primary goal is to incentivize the transformation of underutilized office buildings into much-needed housing.

The Mayor’s goal for the area: This proposal is a pivotal component of Mayor Breed's comprehensive nine-strategy plan, designed to position Downtown San Francisco for a promising next chapter. One of these strategies focuses on facilitating new uses and increased flexibility in buildings. 

Other measures in place to reach this goal: As part of this endeavor, Mayor Breed authored legislation that went into effect in August 2023. The legislation introduced critical amendments to city codes, ensuring flexible zoning. It also established the Adaptive Reuse Program, which simplifies the approval process and streamlines requirements for converting underutilized office structures into residential units.

Throughout the summer, Mayor Breed's administration took further steps by issuing a Request for Interest to gain a deeper understanding of the financial and regulatory challenges faced by specific residential conversion projects. Eliminating the transfer tax on such conversions is the logical next step, according to the mayor's office.

Mayor Breed’s vision for Downtown San Francisco: In explaining the significance of this move, Mayor Breed emphasized, "By removing barriers to converting office spaces into housing, we can transform vacant areas into homes, attracting more people to Downtown. This is not only beneficial for our neighborhoods but also for our small businesses." 

The proposed ballot measure is poised to invigorate the urban landscape of Downtown San Francisco and address critical housing needs in the city.