The big picture
The Board's most consequential action was unanimous passage of the two-year city budget covering fiscal years 2026-2027 and 2027-2028, setting spending for every city department. Alongside the budget, the Board advanced a 175-unit all-affordable senior housing project in Chinatown, placed a property transfer tax measure on the November ballot, and gave final approval to new fireworks penalties — the only contested vote of the day, passing 9-2. The meeting also featured an unusually large batch of historic landmark designations, with 22 properties across several neighborhoods receiving initial approval.
Top items
PASSEDCity's two-year operating budget for 2026–2028 passes unanimously
The Board unanimously passed the Budget and Appropriation Ordinance covering all city department spending for fiscal years 2026-2027 and 2027-2028, along with the companion salary ordinance that sets staffing levels and pay scales across city government.
This is the single largest policy action of the year — it determines how much money every city department receives for the next two fiscal years, from the Police Department to public health clinics to parks. Every service San Franciscans rely on is funded through this vote.
Both ordinances finally passed 11-0, taking effect immediately.
PASSED175-unit all-affordable senior housing project in Chinatown gets green light
The Board approved a complex deal to advance a 100% affordable, 175-unit apartment building for low-income seniors at 758 and 772 Pacific Avenue in Chinatown. The city will purchase the property for roughly $2.2 million, lend up to $13.7 million for pre-development costs, and lease the land back to the developer for 75 years at $100 per year — a standard structure used to keep affordable housing financially viable long-term. A separate ground lease for community-serving commercial space on the same site was approved at $1 per year.
San Francisco's Chinatown has one of the city's highest concentrations of low-income seniors living in overcrowded conditions. This project would add 175 units reserved exclusively for that population, with community space built in — a rare, large-scale addition to a neighborhood with very little room to grow.
Adopted unanimously, 11-0.
PASSEDHomelessness tax cap lifted to fund more short-term rental subsidies
The Board passed an ordinance temporarily suspending a legal cap that limits how much of the city's Homelessness Gross Receipts Tax — a surcharge on large businesses dedicated to addressing homelessness — can be spent on short-term rental subsidies (temporary housing vouchers). The suspension allows the city to direct more of that revenue toward rental assistance during the current budget cycle.
Short-term rental subsidies are one of the fastest tools the city has to move people off the street and into stable housing. Lifting the spending cap means more of the dedicated homelessness tax revenue can flow directly to that purpose rather than being held back by a formula constraint.
Finally passed unanimously, 11-0.
PASSEDFireworks discharge penalties become law despite two dissenting votes
The Board gave final approval to an ordinance creating new criminal penalties for illegally setting off fireworks in San Francisco. A first offense would be an infraction with a fine of $125 to $250. A second or subsequent offense within five years would be a misdemeanor, carrying a fine of $250 to $750 and up to six months in county jail.
San Francisco has long lacked enforceable penalties specifically targeting illegal fireworks, which cause fires, injuries, and significant distress to residents and animals each year. This ordinance gives police and prosecutors a concrete legal tool, though the two dissenting votes suggest ongoing disagreement about whether criminalization is the right approach.
Finally passed 9-2, with Supervisors Fielder and Walton voting no — the same dissent recorded on first reading.
PASSEDNovember ballot will ask voters to close a property transfer tax loophole
The Board voted to place a measure on the November 3, 2026 ballot that would eliminate a longstanding exemption from the city's real property transfer tax for properties transferred through foreclosure. If voters approve, starting March 1, 2027, foreclosure sales of most commercial and larger residential properties would no longer be shielded from the tax. Small residential properties — those with fewer than five units — would retain the exemption.
The foreclosure exemption has allowed large commercial property transfers to avoid the transfer tax entirely by routing transactions through foreclosure proceedings. Closing the loophole is expected to generate new revenue for the city, though the exact dollar impact is not included in the minutes.
Approved 10-0 (Walton excused) to go to voters in November.