Board Slashes Inclusionary Housing Fees, Passes Drug-Free Supportive Housing in Marathon Session

The San Francisco Board of Supervisors reshaped the city's housing and homelessness policy framework on July 14, cutting inclusionary housing requirements to their lowest level in years, advancing a permanent affordable housing funding source to the November ballot, and passing the city's first systematic drug-free supportive housing ordinance. Across nearly four hours of debate, familiar fault lines emerged — production versus affordability, individual choice versus systemic risk, efficiency versus oversight — with several items passing on narrow 7-4 and 6-5 votes that will define who builds what, where and for whom in San Francisco for years to come.

• Inclusionary housing fees drop from 17% to 5% citywide to restart stalled construction; a narrow 6-5 amendment carves out an 8% rate in the Mission
• Drug-free supportive housing ordinance passes 7-4 after two years of work by Supervisor Dorsey, creating new drug-prohibition requirements for city-funded PSH
• Housing Trust Fund charter amendment heads to November ballot unanimously, projecting $125 million annually for affordable housing
• AI-assisted code cleanup ordinance passes 7-4, eliminating ~140 city reporting requirements over sharp objections about process and surveillance oversight
• Commission restructuring charter amendment advances 9-2 to the November ballot, drawing criticism for concentrating power in the mayor's office
• Cannabis café permits approved 7-4, creating San Francisco's first on-premises consumption establishments
• FY2026-2028 budget introduced, closing a $642 million deficit with 50 new long-term SRO family subsidies added