San Francisco Board of Supervisors Enacts Housing Reforms as Voters Weigh Measure H for Muni Transit

Board of Supervisors Adjusts Inclusionary Housing Mandates to Revive Construction

SAN FRANCISCO, California — Tackling prolonged economic hurdles and elevated construction financing costs, the San Francisco Board of Supervisors enacted vital legislative adjustments in October 2026 to unlock stalled residential construction across the city. Stemming from the municipal Triennial Review of Economic Feasibility, the Board voted to lower on-site Below Market Rate (BMR) inclusionary requirements from 15% to 5% for eligible market-rate developments, while eliminating affordability mandates entirely for projects under 25 units.

Municipal economists and housing advocates concurred that excessively rigid affordability mandates had unintentionally halted residential permit filings. By recalibrating developer obligations to reflect current interest rates and labor costs, the city seeks to stimulate thousands of paused housing starts across transit-rich corridors in SoMa, Mission Bay, and the Central Freeway area.

Voters Prepare to Decide Measure H to Secure Dedicated Muni Transit Funding

Concurrently, civic leaders and transit coalitions mobilized voter outreach across the city for Measure H on the upcoming November municipal ballot. The high-profile charter amendment proposes a dedicated parcel tax running from 2027 through 2042 to generate approximately $177 million annually directly for the San Francisco Municipal Transportation Agency (SFMTA).

Supervisors and transit advocates stressed that dedicated local revenue is indispensable to avoid severe Muni service reductions, safeguard high-frequency light rail operations through the Market Street subway, and maintain core bus routes relied upon by hundreds of thousands of daily riders.

Advancing Transit-Adjacent Infill at Balboa Park and Mission Yards

Highlighting effective interagency collaboration, SFMTA and the Planning Department reported steady development milestones for joint transit-housing initiatives on agency-owned land. Construction continues across mixed-income communities at Balboa Park and the Upper Yard transit parcels, demonstrating how targeted policy reforms and robust public transit preserve San Francisco’s vitality.