Mayor Declares Rent Emergency, Unveils $58M Tenant Shield

The San Francisco Board of Supervisors convened Sept. 15 for a marathon session that opened with Mayor Daniel Lurie declaring a rent emergency and closed with supervisors introducing a wave of new legislation — from a data center moratorium to a proposal to overhaul the city's housing department. In between, the board slashed a controversial software contract by nearly $11 million and advanced more than $460 million in bond financing for housing, infrastructure and public health.

• Mayor declares rent emergency, backs $58M+ in tenant protections including rent-increase caps, eviction safeguards and legal aid
• OpenGov permit software deal cut from $38.9M to $28M after supervisors flag missed targets and no competitive bidding; passes 10-1
• Treasure Island financing expands by $520M, bringing total bond authorization to $1.3 billion for 8,000 planned homes
• Board authorizes $466M in bond issuances spanning affordable housing, earthquake safety, health facilities and parks
• New legislation introduced: 45-day data center moratorium, banked rent increase cap, a new Department of Housing Production, and SFO detention center condemnation
• Hub neighborhood residents deliver coordinated testimony demanding enforcement and accountability on homelessness and open drug use
• Early labor deal covers 80% of city workers with a 12% raise through 2031 and no-layoff guarantees

---

Rent Emergency: Mayor Puts $58M Behind Tenant Protections

Why it matters: San Francisco rents are rising faster than anywhere in the country, and evictions are approaching their highest level in nearly a decade — conditions the mayor used to frame a sweeping legislative and budget response.

Where things stand: Mayor Daniel Lurie appeared before the full board to announce a multi-pronged tenant protection package developed with several supervisors. He painted a stark picture of the housing market: "Rents are rising faster here than anywhere else in the country. We're on track for the most evictions in nearly a decade," he said.

The package includes legislation from three supervisors. Supervisor Danny Sauter is carrying a bill to cap banked rent increases and capital improvement pass-throughs at 10% for rent-controlled tenants through 2029. Supervisor Matt Dorsey is introducing a measure requiring landlords to notify tenants of their rights under both local rent control and the state Tenant Protection Act (AB 1482). Supervisor Jackie Fielder is proposing eviction protections for tenants who fall behind by less than one month of rent.

On the budget side, the mayor committed $54 million in rental assistance, legal defense and eviction representation, plus $3 million to expand the city's tenant right to counsel program. "Today, I am introducing an additional $3 million to expand tenant right to counsel and, in partnership with City Attorney David Chiu, an additional $1 million to launch a citywide know-your-rights campaign," Mayor Lurie said.

Supervisor Sauter underscored the human stakes when formally introducing his banked-rent legislation later in the meeting: "This summer I learned of a 92-year-old tenant in my district who saw her rent skyrocket from $600 to more than $2,000 a month in one fell swoop."

What's next: The individual pieces of legislation will move through committee. The mayor also pointed to broader housing supply efforts — Family Zoning, a ballot measure with Supervisor Myrna Melgar to double the housing trust fund, and the Permit SF initiative — as complementary strategies.

---

Board Slashes OpenGov Contract After Performance Failures

The basics: The Planning Department asked the board to extend its contract with OpenGov Inc. for the Permit SF permitting platform — a sole-source deal originally set at $38.9 million over five years. The item arrived at the full board without a recommendation from the Budget and Finance Committee, a signal of deep skepticism.

Why it matters: The city has a painful history with technology procurement. Supervisors compared the contract to the failed $32 million Justice Tracking Information System and a 12-year, multimillion-dollar failure to implement the Accela permitting system. Meanwhile, the city's own data showed fire permits meeting their two-day processing target just 4% of the time, and building permits hitting their mark only 38% of the time.

Where things stand: Supervisor Chyanne Chen, who led negotiations, secured major concessions: "We have also negotiated the contract down from a five-year extension to a three-year extension. We reduced the total not-to-exceed amount down from $38.9 million to $28 million." The amendment saves taxpayers roughly $10.9 million, with the third year's $7.4 million subject to budget reserve.

Supervisor Bilal Mahmood drew on his software industry background to catalog the product's shortcomings. "This product is unfortunately not ready. We're seeing permit turnaround times move in the wrong direction," he said. He also flagged a startling operational gap: "There is no testing environment in the OpenGov platform for an enterprise product touching permitting across departments. That means every fix, every update, every change is tested live on real permits for real San Franciscans."

The other side: Supervisor Jackie Fielder cast the lone dissenting vote, arguing the board should have followed the Budget and Legislative Analyst's recommendation for a one-year extension only. "Three years is more reasonable than five. But until Permit SF gets a firm handle on its operations and sets more concrete deliverables for OpenGov, the Board of Supervisors has no business expanding this contract beyond the BLA-recommended one year," she said.

Supervisor Dorsey supported the compromise, drawing a cautionary parallel to the failed justice tracking system. Supervisor Melgar noted the city spent 12 years and millions failing to implement Accela. Planning Department staff member Dennis Phillips confirmed the department would maintain Accela as a backstop and provide annual progress reports.

Decisions: The amended resolution passed 10-1 (For: 10, Against: 1, Absent: 0). Fielder voted no.

What's next: Supervisor Chen announced she will request a hearing at the Budget and Finance Committee by the end of the calendar year. "I plan to request the scheduling of this hearing at the end of this calendar year at the Budget and Finance Committee to guarantee oversight and transparency over the development, implementation and progress of this contract," she said.

---

Treasure Island Financing Grows to $1.3 Billion

Why it matters: The board's vote expands the financial engine behind one of the largest residential developments in the Bay Area — 8,000 planned homes on Treasure Island and Yerba Buena Island.

Where things stand: The board sat as a committee of the whole to hold a public hearing on annexing Stage 2 properties (project areas F, G, H and I) into the Treasure Island Infrastructure and Revitalization Financing District. Jamie Karubin, COO of the Treasure Island Development Authority, presented the proposal: the IRFD captures roughly 56% of future property taxes from development to finance public infrastructure and affordable housing. The city has already issued $65 million in IRFD bonds and delivered nearly 1,000 new market-rate and affordable homes.

The annexation adds $520 million in bond authorization to the existing $780 million, bringing the total to $1.3 billion. Supervisor Dorsey championed the items, pointing to recent momentum including a new waterfront park and Bay FC training center groundbreaking.

Decisions: Items 42 and 43 were adopted unanimously (For: 11, Against: 0, Absent: 0). Items 44 through 46 were continued to Sept. 29 to complete the required multi-step legal process.

---

Hub Residents Sound Alarm on Homelessness and Drug Use

During general public comment, a coordinated group of Hub neighborhood residents delivered pointed testimony demanding enforcement and accountability for conditions they described as worsening.

Lynn Valenti, a 26-year resident of Stevenson Street who said she is nearly 80 years old, described the worst concentration of illegal activity she has seen since moving to the area, including open drug use, fires, fighting and human waste. Samuel McCormick, an SF State University professor and Hub resident, made four specific demands: enforce the law, identify repeat offenders and assign a city team, establish an escalation process when outreach fails, and publish tracking results on treatment, arrest and return rates.

Keith Bailey, also a Hub resident, described a radical decline in quality of life, noting friends no longer wish to visit and groups of drug users sprawled across sidewalks. He asked the board to treat the Hub as a special zone needing targeted help. Manoj, another Hub resident, requested three things: publish how homelessness spending divides between services for individuals versus neighborhood protection, dedicate resources to hotspots, and assign each hotspot neighborhood one accountable city lead.

Separately, Amelia Harmon announced that the Crisis Response Standards Working Group would convene 10 meetings starting Oct. 28, and urged each supervisor to name a staffer to receive documents and evaluate gaps in the crisis system.

---

New Legislation: Data Centers, Housing Department, Behested Payments

Supervisors used roll call for introductions to announce a wave of new measures:

Data center moratorium: Supervisor Shamann Walton, co-sponsored by Supervisors Chan, Fielder and Chen, introduced a 45-day interim zoning moratorium on new data centers. "San Francisco's rules for data centers are long outdated. Our current planning code framework was adopted in 2001, long before generative AI and long before anyone could have anticipated the enormous scale of computing infrastructure that exists today," Walton said. He cited environmental justice concerns in Bayview-Hunters Point.

Housing department overhaul: Supervisor Myrna Melgar introduced legislation to promote the Mayor's Office of Housing and Community Development into a Department of Housing Production and Preservation. "The first is the creation, the promotion of our existing Mayor's Office of Housing and Community Development into a Department of Housing Production and Preservation," she said. Melgar also proposed a cooperative housing support program and coordination of repaving with bike network engineering.

Behested payment transparency: Supervisor Jackie Fielder introduced legislation requiring post-waiver reporting and a one-year cooling period for repeat behested payment waivers. She also introduced a resolution condemning the de facto immigration detention center at SFO, citing reports that the federal government has been holding immigrants in the international terminal beyond what is lawful under CBP's own guidelines.

Tenant notification (AB 1482): Supervisor Matt Dorsey introduced legislation requiring landlords to notify tenants of their rights under the state anti-rent-gouging law and to strengthen the Rent Board's role in assisting tenants who may face unlawful rent hikes.

Sheriff oversight misconduct charges: Supervisor Stephen Sherrill introduced a motion to suspend Commissioner William Palmer from the Sheriff's Department Oversight Board and approve charges of official misconduct.

Supervisor Alan Wong introduced a hearing on e-bike and e-scooter safety, and Supervisor Bilal Mahmood introduced a resolution to strengthen dog safety protocols at city-funded housing sites.

---

$466M in Bond Issuances Approved

The board authorized a combined $466 million in bond issuances across four categories, all passing unanimously:

• Affordable housing (Items 19-22): Three general obligation bond series (2026 D, E and F) totaling approximately $202 million for middle-income, senior and low-income housing projects plus seismic preservation of at-risk buildings.
• Earthquake safety and emergency response (Items 25-26): $138 million in GO bonds.
• Health and recovery (Items 23-24): Approximately $83.5 million in GO bonds.
• Open space (Items 17-18): $43 million in certificates of participation secured by Open Space Fund property tax revenues for recreation and park projects.

---

Muni Heritage and a $307M Warning

While the board adopted a resolution declaring Muni Heritage Weekend, Supervisor Dorsey used the moment to sound a fiscal alarm. "This year, the SFMTA faces a $307 million budget shortfall, the largest in its history. Without additional funding, Muni could face significant service reductions," he said.

---

Minor Items

• Street tree ordinance passed 7-4 on final reading, allowing developers to pay in-lieu fees instead of planting street trees and exempting ADUs from tree requirements. Chan, Fielder, Sauter and Walton voted no.
• Airport surveillance camera policy (Item 38) approved 11-0 on first reading, governing third-party camera use at SFO.
• Employment lawsuit settlements (Items 39-40) totaling approximately $14.7 million authorized.
• $18.4 million in rental subsidies (Items 32-36) approved for 369 affordable units across five 100% affordable housing projects.
• $2.65 million in public health grants (Items 29-31) accepted.
• Airport professional services contract modifications (Items 27-28) approved, totaling $17 million each.
• Malia Chavez confirmed to the Planning Commission; Christopher Simi confirmed to the Sanitation and Streets Commission.
• 12% wage increase for city workers: The mayor announced early labor agreements with more than a dozen unions covering over 80% of city employees, providing raises from 2027 to 2031 with no-layoff guarantees for permanent civil service employees through June 30, 2029.
• Consent agenda (Items 1-15) and meeting minutes approved 11-0.
• Commendations honored Living Proof SF addiction recovery campaign, Rec Park Commissioner Kat Anderson for 10 years of service, Commander Delgandio as the first openly gay SFPD captain, the NERT disaster preparedness team, travel educator Joanne Giovannoni, KTSF's 50th anniversary, and Castro block sweepers.
• Catherine Colmus, a transgender veteran and District 6 resident, spoke during public comment about housing affordability as a barrier to San Francisco's role as a haven for trans people, arguing that $4,000-per-month rents are as effective as any policy in driving out trans residents.
• Latin Heritage Month proclaimed.