Commission Approves B&B Expansion and Cannabis Café Permits in Double Mandelman Win

The San Francisco Planning Commission advanced two neighborhood-shaping ordinances at its May 21 meeting — one raising the guest room ceiling for bed and breakfasts in residential zones, the other creating a first-of-its-kind cannabis café permit — both sponsored by Supervisor Mandelman. A major affordable housing funding measure also surfaced: a fall 2026 ballot proposal to more than double the city's Affordable Housing Trust Fund to $125 million a year.

• B&B guest room cap raised from 5 to 10 across all affected residential districts, approved 5-1 with one commissioner warning of Airbnb-era displacement risks
• Cannabis café permits unanimously approved, letting SF's 66 licensed retailers serve food and beverages alongside on-site consumption under state AB 1775
• Affordable Housing Trust Fund ballot measure announced: Mayor Lurie and Supervisor Melgar propose boosting the annual fund from $50 million to $125 million, financed by recovering property tax revenue
• Board of Appeals clears emergency demolition of twice-burned 659 Union Street building after years of deterioration
• Historic Preservation Commission advances 20+ District 8 landmarks tied to the family zoning plan

Why it matters: Only 30 to 40 traditional bed and breakfasts remain in San Francisco, and some operators say they cannot stay viable under the current five-room limit. The ordinance offers small hospitality businesses an economic lifeline while preserving the conditional use authorization process that lets the commission screen out conversions that could shrink the housing supply.