HOPE SF Alice Griffith Phase 1, Photo Credit: Blake Thompson Photograph

Affordability as a Public Asset

Affordable housing is essential for San Francisco’s resilience and livability, but it is also distinct from the other facilities and infrastructure in the public portfolio. Unlike the City’s horizontal and vertical assets such as pipes, streets, and buildings, when it comes to affordable housing, the asset the City “owns” is the affordability itself. Affordability is ensured both through restrictions placed on title or through ownership of the land underlying affordable units. With only one exception, the City does not own the affordable housing asset itself. Affordable housing buildings are typically owned by partnerships where the managing general partner is a mission-driven non-profit organization. Property management is provided either by the same ownership entity, or through contracts with third-party property management entities that specialize in affordable housing. Likewise, service provision for residents is typically provided through third party contracts between the owner and qualified service providers.

Financial support of affordable housing production and preservation is generally provided by MOHCD through loans to affordable housing developers. As such, the affordable housing projects supported by the City are not considered public works. Qualified development teams are selected through Notices of Funding Availability (NOFAs) or Requests for Proposals or Qualifications (RFPs or RFQs). Those teams then carry out preservation and new construction projects. This financing approach allows projects to leverage sources of funding at the state and federal level such that local resources are needed to pay only a portion of the total cost of development.

Key Terms

Affordability

The term 'affordable housing' refers to a broad range of levels of affordability that are typically divided into the categories below. The categories themselves are based on Area Median Income (AMI) which describes the level of income a household has relative to the region’s median income.

• Moderate Income: 80%-120% AMI
• Low Income: 50%-80% AMI
• Very Low Income: 30%-50% AMI
• Extremely Low Income: below30% AMI

In 2020, San Francisco’s median income is $89,650 for an individual, $128,100 for a family of four. San Francisco publishes its own AMI levels that are different than those published by the U.S. Department of Housing and Urban Development (HUD) and by the California Tax Credit Allocation Committee (TCAC) for the San Francisco region. MOHCD uses an “unadjusted” AMI, which is lower than HUD’s published AMI that includes an upward high cost adjuster (which TCAC then follows). MOHCD also places limits on year-over-year increases to AMI levels. As a result, real incomes that correspond to MOHCD’s AMI levels are lower than those for the same AMI levels as published by HUD and TCAC.

Permanent Supportive Housing

Permanent supportive housing (PSH), also known as supportive housing, refers to affordable housing that is designed for households (adults with or without dependent children, seniors, veterans and transitional age youth) exiting homelessness and offers voluntary on-site supportive services. In San Francisco, these services are provided by the Department of Homelessness and Supportive Housing, and future capital investments in PSH are discussed in the Health and Human Services Service Area Chapter.

Preservation and Production

Broadly speaking, affordable housing investments can be divided into two categories: preservation of existing affordability and production of new affordable homes. The City’s role in maintaining public housing resources is a combination of preservation and production efforts.

Preservation can be broken out into five categories: (1) preservation of MOHCD subsidized housing for continued affordability and habitability; (2) preservation of deed-restricted housing that is not subsidized and has affordability restrictions that will expire; (3) preservation of HUD subsidized housing that is not regulated by MOHCD for continued affordability and habitability; (4) the acquisition, rehabilitation, and preservation of rent-restricted or rent-controlled housing, vulnerable to Ellis Act and owner move-in evictions, and vacancy de-control; and (5) preservation of public housing.

New production of permanently affordable homes occurs primarily through one of a few mechanisms: units produced through San Francisco’s inclusionary zoning requirements, MOHCD’s multifamily lending program, and OCII-supported new multifamily production.

The Affordability Gap

San Francisco has increasingly become unaffordable to wider sections of the population in the past two decades, and is one of the most expensive housing markets in the country. According to the Planning Department’s San Francisco Housing Needs and Trends report, this trend has intensified in the past five years due to the high-wage job growth in the region. Low- and moderate-income households are being replaced by higher income households and many of our existing households are at risk of losing their housing at the current affordable rates. The result is that many households are cost burdened. HUD considers any household paying more than 30% of their gross income on rent to be cost burdened, and households that pay more than 50% of their gross income on rent to be severely cost burdened.

The affordability gap in San Francisco can be illustrated in four ways: (1) too little housing production to meet population growth, (2) increasing numbers of vulnerable households that are cost burdened or otherwise not sufficiently housed, (3) the loss of units affordable to low income households, and (4) a significant homeless population.

The Association of Bay Area Governments estimates the housing need based on population growth through the Regional Housing Needs Allocation process. Local jurisdictions must show that they have capacity to accommodate this growth. The 2023-2030 Regional Housing Needs Assessment (RHNA) targets increase significantly; San Francisco’s share increases from 25,000 units (2014 – 2022) to 82,000 units (2023 – 2031), including 46,0000 units of housing affordable at very low, low, and moderate incomes.

Mission Bay South Block, Photo Credit: Keith Baker

San Francisco’s unaffordability is wide-reaching. Housing costs have increased far faster than inflation since the late 1990s and have risen to the highest in the nation since the 2011 boom. High costs, rising income inequality and low supply of affordable housing bring personal hardship, accelerate displacement, undermine balanced economic growth, and cause environmental damage as workers endure longer daily commutes. To become a truly resilient city, San Francisco must tackle the challenges of unaffordability for residents today and proactively build to meet the affordable housing needs for the future.

Affordable housing is critical to the City’s economic and social health. Without housing that is affordable to a range of incomes, San Francisco runs the risk not only of losing vital components of its unique and diverse culture, but also risks incurring negative economic impacts as essential workers and families cannot afford to remain in the City.

Housing affordability is also crucial to the City’s efforts to advance racial equity. Not only have historic housing policies like urban renewal and redlining furthered systems of structural and institutional racism, these policies continue to impact Black,  Indigenous, and people of color today as they disproportionately experience homelessness, rent burden, substandard housing and overcrowding. Moreover, as the COVID-19 pandemic has shown, people of color have been most in need of housing stabilization resources. With the pandemic’s effect on the economy expected to last for the next few years, San Francisco must advance affordable housing as the long-term solution to housing stability and racial equity.

Overview

City leaders and voters have repeatedly demonstrated their support for policies and investments that address the housing needs of San Francisco’s workforce and vulnerable residents. Since 2012, San Francisco has passed a number of key initiatives to increase resources for affordable housing production, including:

• 2012: Housing Trust Fund as a set-aside within the City’s General Fund
• 2015: $310 million affordable housing G.O. bond
• 2016: Significant increase to the inclusionary obligations on market rate housing
• 2016: Repurposing of a $260 million bond for acquisition and conversion of housing as permanently affordable.
• 2018: Gross receipts tax to fund housing and services for people experiencing homelessness
• 2019: $600 million affordable housing G.O. bond
• 2020: Health and Recovery G.O. Bond included $147M for permanent supportive housing
• 2020: Increase to transfer tax for $10M+ properties for the General Fund that is subject to annual appropriation. For FY20-21, $10M of supplemental appropriation was approved for affordable housing.

Moving forward, San Francisco will continue to prioritize and enhance programs and projects that produce and secure affordable homes. This longstanding commitment includes additional investments in permanent supportive housing (see the Health and Human Services chapter) and housing affordability at low and moderate incomes, as well as increasing zoning capacity to allow more housing and affordable housing to be built equitable throughout the City.

Capital investment for acquiring and building affordable housing is the most permanent and secure approach for the City to create deed-restricted affordable housing. This was formally recognized in the Board of Supervisor’s approval of the FY2020-29 Capital Plan to incorporate affordable housing into the City’s regular capital planning process. This new chapter and related modifications throughout the Capital Plan represent the fulfillment of that direction. The content here defines the key terms of publicly supported affordable housing production and preservation; documents funding and feasibility principles for those efforts; collects planned, phased, and emerging projects that support greater affordability in San Francisco; and presents an all-sources view of San Francisco’s projected investment in affordable housing. The projects for this service area are estimated to create over 6,400 jobs over the next 10 years.

Mayor’s Office of Housing and Community Development

MOHCD supports San Franciscans with affordable housing opportunities and essential services to build strong communities. The department works to create affordable housing, preserve affordability, protect vulnerable residents, and empower communities, neighborhoods, and people seeking housing. MOHCD’s programs to create and preserve affordable housing are multifaceted and include 100% affordable multifamily housing, HOPE SF (described in Economic and Neighborhood Development), down payment assistance loans, Small Sites, Preservation and Seismic Safety, and the monitoring of inclusionary mixed income housing.

Planning Department

The San Francisco Planning Department works with decision-makers to increase the livability of the City through adoption of the City’s vision for the future, embodied by the General Plan. This comprehensive policy document guides public and private action concerning land use and zoning policy, community stabilization, urban design, public realm enhancements, and environmental planning. The City has adopted plans and programs to channel new development and to provide a framework for adding housing and jobs, including Area Plans such as Balboa Park, Eastern Neighborhoods, Market Octavia, Rincon Hill, Transit Center, Visitacion Valley, and most recently Central SoMA. In addition, the City has adopted new programs such as HOME SF and policies to encourage the addition of Accessory Dwelling Units. In June 2020 the San Francisco Planning Commission adopted a Resolution centering the Planning Department's work program and resource allocation on racial and social equity. Together these plans and programs guide where growth can occur and what community benefits are offered to the neighborhoods through this growth.

Office of Community Investment and Infrastructure

OCII is the successor agency to the San Francisco Redevelopment Agency, which was dissolved in 2012 by order of the California Supreme Court. The Office is authorized to continue to implement the Major Approved Development Projects: Mission Bay North and South, Hunters Point Shipyard and Zone 1 of the Bayview (Shipyard/Candlestick Point), and the Transbay Project Areas. The greater development and infrastructure needs for those developments are described in the Economic and Neighborhood Development chapter. The affordable housing components of the OCII Project Areas are represented in this chapter.

Treasure Island Development Authority

Treasure Island and Yerba Buena Island, located in San Francisco Bay, contain approximately 404 and 150 acres, respectively. In early 2003, the Treasure Island Development Authority and the Treasure Island Community Development, LLC (TICD) entered into an Exclusive Negotiating Agreement and began work on a Development Plan for the islands. The Treasure Island/Yerba Buena Island Development Project is creating a new neighborhood consisting of up to 8,000 new residential housing units, new commercial, open space, and retail space, and transportation amenities. The greater development and infrastructure needs for the project are described in the Economic and Neighborhood Development Service Area and the affordable housing components are represented in this chapter.

San Francisco Housing Authority

The San Francisco Housing Authority (SFHA) has converted the majority of its public housing units to permanently affordable sites owned by non-profit management firms to enable the use of tax credits as a funding source for those properties. SFHA will continue to ensure compliance with eligibility and other programmatic requirements at these sites, but the management of the facilities will no longer be SFHA’s responsibility.

In order for local government to deliver services as San Francisco grows, the City must plan carefully, run internal functions smoothly, and pay attention to performance across the board. Much of this work falls to the Office of the City Administrator (CAO). Comprised of a broad array of departments, divisions, programs, and offices, CAO is committed to increasing San Francisco’s safety and resilience and ensuring the efficacy of government services. Day in and day out, CAO’s operations help the wheels of government to turn. Departments within CAO play a critical to role in advancing racial and social equity, including closing the digital divide and ensuring equitable access for people with disabilities.

The General Government Service Area encompasses the capital needs that pertain to the operations of CAO departments; projects delivered for client departments by CAO are captured in the Plan’s other Service Areas.

Overview

The Office of the City Administrator delivers a wide range of capital-related services, including the maintenance and management of City-owned buildings, real estate, design and construction of capital improvements, capital planning, and technology services. These operations largely support the service delivery efforts of other City departments. Those with projects named in the 10-Year Capital Plan are described here. The projects for this service area are estimated to create over 700 jobs over the next 10 years.

Public Works

San Francisco Public Works plans, builds and takes care of civic structures and the public right of way. Public Works includes three direct-service divisions: Building Design and Construction (BDC); Infrastructure Design and Construction (IDC); and Operations.

The BDC Division provides facility programming, conceptual design, architectural design, planning, landscape design and construction management services for a variety of public buildings, among them fire stations, libraries, recreation centers, health centers and public safety buildings. The IDC Division provides planning and design services, project management and construction management services for improvements to the City's streets, public right of way and infrastructure. The Operations division, let by the Deputy Director of Operations, includes the bureaus of Street and Environmental Services, Urban Forestry, Building Repair, Sewer and Street Repair and Community Engagement.

Public Works’ programs that address San Francisco’s horizontal infrastructure are discussed in the Infrastructure and Streets Service Area.

Real Estate

The Real Estate Division (RED) within CAO manages over four million square feet of office space and other civic facilities that support the operations of city departments. RED is responsible for the acquisition of all real property required for City purposes, the sale of surplus real property owned by the City, and the leasing of property required by various City departments. Facility operations at the Alemany Farmers’ and Flea Markets, Yerba Buena Gardens, and the UN Gift Gallery at UN Plaza are also managed by RED. In addition to these responsibilities, RED provides property management services to City Hall, 1 South Van Ness, 25 Van Ness, 49 South Van Ness, 1650 Mission Street, the Hall of Justice, and 555 7th Street. Also, RED manages sales of the City’s Transferable Development Rights for historic preservation and capital improvement projects at certain eligible facilities.

Technology

The Department of Technology is San Francisco’s information and technology services organization, providing leadership, policy direction, and technical support for technology and information solutions. DT has both internal and public-facing initiatives. The department manages City network operations and data centers. It also maintains the City’s fiber optics network, radio system, digital security, SFGovTV and other vital systems.

Moscone Convention Center

Prior to COVID-19, the City-owned Moscone Convention Center drew over one million attendees and exhibitors per year and was responsible for 21% of San Francisco’s travel and tourism industry. Moscone’s expanded footprint includes over 700,000 square feet of exhibit space, up to 106 meeting rooms, and nearly 123,000 square feet of prefunction lobbies. Architects Skidmore, Owings + Merrill designed the expansion project, which was completed in 2018.

Mayor’s Office on Disability

Working to ensure accessibility for projects from all of these CAO agencies and all City departments is the Mayor’s Office on Disability (MOD). The mission of MOD is to ensure that every program, service, benefit, activity, and facility operated or funded by the City is fully accessible to and useable by people with disabilities. Regarding physical access specifically, MOD’s Architectural Access Program has overseen the implementation of the highest-priority projects in the City’s ADA Transition Plans for facilities and right-of-way barrier removals. MOD now oversees the continuation of those plans through the City’s ongoing barrier removal efforts for both facilities and the public right-of-way.

When the COVID-19 pandemic struck in March, the Moscone Center was quickly transformed into the City’s temporary Emergency Operations Center (EOC). Social distancing, coupled with the need to accommodate large levels of Disaster Service Workers (DSWs), made operating out of the EOC’s permanent location at 1011 Turk Street physically impossible. Simultaneously, Moscone West was quickly repurposed into a congregate homeless shelter managed by HSA. As of December 2020, approximately 300 DSWs are working full time in Moscone North and South, which also includes over several hundred thousand square feet of warehouse space. In addition, the Moscone Center main kitchen staff prepares and delivers 700 meals, three times per day, seven days per week (441,000 meals per month) to the homeless population residing in hotels and motels throughout the City. Meanwhile Moscone West continues to serve an average of 170 overnight homeless residents each day. As the City recovers from the COVID-19 pandemic, we expect to be able to use Moscone as a critical resource when needed.

In order for local government to successfully deliver services as San Francisco grows, the City must plan carefully, run our internal functions smoothly, and pay attention to performance across the board. In practice, much of this work falls to the Office of the City Administrator, which oversees the General Services Agency (GSA). Comprised of a broad array of departments, divisions, programs and offices, GSA is committed to increasing San Francisco’s safety and resilience and ensuring the efficacy of government services. Day in and day out, GSA’s operations help the wheels of government to turn. 

The General Government Service Area encompasses the capital needs that pertain to the operations of GSA departments; projects delivered for client departments are captured in the Plan’s other Service Areas.

The Office of the City Administrator delivers a wide range of capital-related services, including the maintenance and management of City-owned buildings, real estate, design and construction of capital improvements, capital planning, and technology services. These operations largely support the service delivery efforts of other City departments. Those with projects named in the 10-Year Capital Plan are described here.

Public Works

Public Works takes care of San Francisco's streets, infrastructure, and public buildings. Divisions under the City Architect relate to facility design, construction, maintenance, and repair. The Bureau of Building Repair provides construction, repair, remodeling, and management services to City-owned facilities. The Building, Design, and Construction and Project Management divisions provide facility programming, architectural design, planning, conceptual design, and construction management services. PW programs that address San Francisco’s horizontal infrastructure are discussed in the Infrastructure and Streets Service Area.

Real Estate

The Real Estate Division within ADM manages over four million square feet of office space and other civic facilities that support the operations of city departments. RED is responsible for the acquisition of all real property required for City purposes, the sale of surplus real property owned by the City, and the leasing of property required by various City departments. Facility operations at the Alemany Farmers’ and Flea Markets, Yerba Buena Gardens, and the UN Gift Gallery at UN Plaza are also managed by RED. In addition to these responsibilities, RED provides property management services to City Hall, 1 South Van Ness, 25 Van Ness, 30 Van Ness, 1640-1680 Mission Street, the Hall of Justice, and 555 7th Street.

Technology

The Department of Technology is San Francisco’s information and technology services organization, providing leadership, policy direction, and technical Moscone Convention Center Expansion Capital Plan FY2020-29 99 General Government Animal Care and Control Shelter support for technology and information solutions. DT has both internal and public-facing initiatives. The department manages City network operations and data centers. It also maintains the City’s fiber optics network, radio system, digital security, and other vital systems. DT serves the public through efforts like the development of a centralized online business portal, the delivery of SFGovTV, and the City’s Connectivity Plan.

Animal Care and Control

In addition to support services for built and digital infrastructure, ADM’s umbrella includes the emergency response services delivered through the department of Animal Care and Control. ACC administers an open-admission animal shelter, providing housing, care, and medical treatment to wild, exotic, domestic, stray, lost, abandoned, sick, injured, and surrendered animals. ACC’s doors are open to all animals in need regardless of species, medical, or behavioral condition. ACC is also the first responder for animals in natural disasters and emergencies.

Moscone Convention Center

The City-owned Moscone Convention Center draws over one million attendees and exhibitors per year and is responsible for 21% of San Francisco’s travel and tourism industry. Moscone’s expanded footprint includes over 700,000 square feet of exhibit space, up to 106 meeting rooms, and nearly 123,000 square feet of prefunction lobbies. Architects Skidmore, Owings + Merrill designed the expansion project, which was completed in 2018.

Mayor’s Office on Disability

Working to ensure accessibility for projects from all of these ADM agencies and all City departments is the Mayor’s Office on Disability. The mission of MOD is to ensure that every program, service, benefit, activity, and facility operated or funded by the City is fully accessible to and useable by people with disabilities. Regarding physical access specifically, MOD’s Architectural Access Program has overseen the implementation of the highest-priority projects in the City’s ADA Transition Plans for facilities and right-of-way barrier removals. MOD now oversees the continuation of those Plans through the City’s ongoing barrier removal efforts for both facilities and the public right-of-way.

In order for local government to successfully deliver services as San Francisco grows, the City must plan carefully, run our internal functions smoothly, and pay attention to performance across the board. In practice, much of this work falls to the Office of the City Administrator, which oversees the General Services Agency (GSA). Comprised of a broad array of departments, divisions, programs and offices, GSA is committed to increasing San Francisco’s safety and resilience and ensuring the efficacy of government services. Day in and day out, GSA’s operations help the wheels of government to turn. 

The General Government Service Area encompasses the capital needs that pertain to the operations of GSA departments; projects delivered for client departments are captured in the Plan’s other Service Areas.

The General Services Agency delivers a wide range of capital-related services, including the maintenance and management of City-owned buildings, real estate, design and construction of capital improvements, capital planning, and technology services. These operations largely support the service delivery efforts of other City departments. Those with projects named in the 10-Year Capital Plan are described here.

Public Works

Public Works (PW) divisions under the City Architect relate to facility design, construction, maintenance, and repair. The Bureau of Building Repair provides construction, repair, remodeling, and management services to City-owned facilities. The Building, Design, and Construction and Project Management divisions provide facility programming, architectural design, planning, conceptual design, and construction management services. PW programs that address San Francisco’s horizontal infrastructure are discussed in the Infrastructure and Streets Service Area.

Real Estate

The Real Estate Division (RED) within GSA manages over four million square feet of office space and other civic facilities that support the operations of city departments. RED is responsible for the acquisition of all real property required for City purposes, the sale of surplus real property owned by the City, and the leasing of property required by various City departments. Facility operations at the Alemany Farmers’ and Flea Markets, Yerba Buena Gardens, and the UN Gift Gallery at UN Plaza are also managed by RED. In addition to these responsibilities, RED provides property management services to City Hall, 1 South Van Ness Avenue, 25 Van Ness Avenue, 30 Van Ness Avenue, 1640- 1680 Mission Street, the Hall of Justice, and 555 7th Street.

One of the priorities for RED is the Civic Center real estate consolidation and reconfiguration effort known as “Project Chess.” Project Chess ultimately envisions a new City office building at 1500 Mission Street as part of a larger development. This project would allow for the consolidation of permitting services into a one-stop center, a similar consolidation of City HR functions, and the relocation of City staff throughout the Civic Center area into more efficient, cost-effective, resilient, and green office spaces. Upon completion the City would be able to terminate 100,000 square feet in leased premises while creating new transit-oriented development, office space, and opportunities for housing. The sales of City assets at 30 Van Ness, 1660 Mission, and 1680 Mission, are required to fund this project.

Technology

The Department of Technology (DT) is San Francisco’s information and technology services organization, providing leadership, policy direction, and technical support for technology and information solutions. DT has both internal and public-facing initiatives. The department manages City network operations and data centers. It also maintains the City’s fiber optics network, radio system, digital security, and other vital systems. DT serves the public through efforts like the development of a centralized online business portal, the delivery of SFGovTV, and the City’s Connectivity Plan, which aims to connect every City building to its fiber network and offer free, wireless internet service to more parts of San Francisco.

Animal Care and Control

In addition to these critical support services of built and digital infrastructure, GSA’s umbrella includes the emergency response services delivered through the department of Animal Care and Control (ACC). ACC administers an open-admission animal shelter, providing housing, care, and medical treatment to wild, exotic, domestic, stray, lost, abandoned, sick, injured, and surrendered animals. ACC’s doors are open to all animals in need regardless of species, medical, or behavioral condition. ACC is also the first responder for animals in natural disasters and emergencies.

Moscone Convention Center

The City-owned Moscone Convention Center draws over one million attendees and exhibitors per year and is responsible for 21% of San Francisco’s travel and tourism industry. Moscone’s footprint includes over 700,000 square feet of exhibit space, 106 meeting rooms, and nearly 123,000 square feet of prefunction lobbies, but more space is required to keep up with demand and stay competitive nationally. Architects Skidmore, Owings + Merrill have designed an expansion project, currently underway with expected completion in 2018.

Mayor’s Office on Disability

Working to ensure accessibility for projects from all of these GSA agencies and all City departments is the Mayor’s Office on Disability (MOD). The mission of MOD is to ensure that every program, service, benefit, activity, and facility operated or funded by the City is fully accessible to and useable by people with disabilities. Regarding physical access specifically, MOD’s Architectural Access Program has overseen the implementation of the highest-priority projects in the City’s ADA Transition Plans for facilities and right-of-way barrier removals.

San Francisco uses a variety of funding sources to implement the broad array of building and infrastructure projects planned each year. These include the San Francisco General Fund, publicly issued debt, federal and state grants, and other local funding sources. These funds have been used for countless facilities, parks, streetscapes, and transportation initiatives.

San Francisco uses a diverse variety of funding sources to implement the broad array of infrastructure projects planned each year. These include the San Francisco General Fund, publicly issued debt, federal and state grants, and other local funding sources. These funds have been used for countless facilities, parks, streetscapes, and transportation initiatives.

The City maintains a diverse variety of funding sources to meet the broad array of infrastructure projects to be implemented each year. These include the San Francisco General Fund, publicly issued debt, federal and state grants, and other local funding sources. These funds have been used for countless facilities, parks, streetscapes, and transportation initiatives used on a daily basis.

Funding Principles

San Francisco strives for racial and social equity across our programs and investments. For capital, this means allocating resources towards expanding equitable access to quality housing, open space, transportation, health, and other public services for Black, Indigenous, and People of Color while improving outcomes for all groups experiencing marginalization, including based on gender, sexual orientation, ability, age, and more. In addition, capital planning supports departments in their respective racial equity plans that inform each department’s capital priorities. The 10-Year Capital Plan strives to fund projects that address racial and social disparities and promote equity in the services delivered by the City’s facilitiesThe funding principles for the Capital Plan are the categories used to make trade-offs between competing needs. They help San Francisco to keep our long-term perspective when it comes time to make choices about major projects and offer a consistent and logical framework for some of the City’s most difficult conversations and infrastructure.

FUNDING PRINCIPLE 1: Addresses Legal or Regulatory Mandate

Improvement is necessary to comply with a federal, state, or local legal or regulatory mandate.

The City faces a wide range of directives and requirements for our facilities, some with significant consequences for failure to perform. Action in these cases is required by law, legal judgment, or court order, or it can proactively reduce the City’s exposure to legal liability. The legal, financial, operating, and accreditation consequences for failure to perform are all weighed when considering these types of projects.

FUNDING PRINCIPLE 2: Protects Life Safety and Enhances Resilience, including Racial Equity

Improvement provides for the imminent life, health, safety, and/or security of occupants and/or the public or prevents the loss of use of an asset.

Life safety projects minimize physical danger to those who use and work in City facilities, including protection during seismic events and from hazardous materials. Considerations for these projects include the seismic rating of a facility, the potential for increased resilience in the face of disaster, and the mitigation of material and environmental hazards for those who visit, use, and work in City facilities. Resilience includes eliminating racial and social disparities so that all San Franciscans may recover and thrive no matter the shocks and stresses they face.

FUNDING PRINCIPLE 3: Ensures Asset Preservation and Sustainability

Asset preservation projects ensure timely maintenance and renewal of existing infrastructure.

It is imperative to maintain the City’s infrastructure in a state of good repair so that the City’s operations are not compromised and resources are not squandered by failing to care for what we own. It is also important to support projects that lessen the City’s impact on the environment. Some assets are more critical than others; for example, some facilities provide services that cannot be easily reproduced at another location or serve as emergency operations centers. Considerations for these projects include the effect on the asset’s long-term life, importance for government operations, and environmental impact.

FUNDING PRINCIPLE 4: Serves Programmatic or Planned Needs

This set of projects supports formal programs or objectives of an adopted plan or action by the City’s elected officials.

Integrated with departmental and Citywide goals and objectives, this funding principle aims to align capital projects with operational priorities. Considerations for this type of project include confirmation that they will contribute to a formally adopted plan or action from the Board of Supervisors or the Mayor.

FUNDING PRINCIPLE 5: Promotes Economic Development

Economic development projects enhance the City’s economic vitality by stimulating the local economy,
increasing revenue, improving government effectiveness, or reducing operating costs.

These projects may have a direct or indirect effect on the City’s revenues or may help to realize cost savings. Considerations for this type of project include the potential for savings, the level of revenue generation (either direct through leases, fees, service charges, or other sources; or indirect, such as increased tax base, business attraction or retention, etc.), and any improvements to government service delivery, such as faster response times, improved customer service, or increased departmental coordination.

Resilience and Sustainability

As the stewards of San Francisco’s public infrastructure, capital planning stakeholders in San Francisco look for ways to increase the City’s resilience and sustainability via our capital program. Resilience describes the capacity of San Francisco's individuals, communities, institutions, businesses, and systems to survive, adapt, and grow, no matter what kind of chronic stresses and acute shocks they may experience. For San Francisco this means (1) the ability to quickly respond and recovery from a disaster or large shock; (2) the ability to address systemic crises such as lack of economic mobility, inequity, poverty, and housing shortages; and (3) the ability to prepare for and address slow-moving disasters like climate change and sea level rise.

As a coastal city in a dense metropolitan region, San Francisco faces a wide range of challenges when it comes to promoting sustainability in our infrastructure programs and projects. Sustainability in San Francisco means promoting green building, clean energy, mass transit, urban forestry, and careful planning, as well as preserving our existing assets to reduce the need for additional building.  For more information about capital-related efforts supporting these goals, please see Chapter Four: Building Our Future.

Visitacion Valley is located in southeast San Francisco, near the Brisbane border. In 1999, the Schlage Lock company decided to close its factory located in the area. The now-vacant site presents opportunities for new uses. New developments in the area are expected to produce a net increase of 4,800 housing units, 140,000 square feet of commercial/retail space, and 75,000 square feet of community space over at least 10 years.

Enhancement projects to be implemented in Visitacion Valley include Geneva Harney Bus Rapid Transit, 8-Bayshore Transit Priority Project, and Schlage Lock streetscape improvement and parks projects. The Visitacion Valley spending plan is shown below.

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