SAN FRANCISCO, CA - A measure that would require San Francisco to set aside about $30 million every year for affordable housing failed Tuesday night. Supporters of Measure B had said the measure would provide necessary relief for low- and middle-income residents who can't afford a home in San Francisco. But opponents, primarily Mayor Gavin Newsom, had argued that the financial restrictions that come with the measure would force heavy cuts to city services.
With 98 percent of the precincts counted, 51 percent of voters were against the spending plan and 49 percent had approved it. "It's the only thing on the ballot I lost," said Supervisor Chris Daly, a major supporter of the measure. "I guess we'll just have to do it the old-fashioned way - we'll try to get the money through appropriation. And if the mayor chooses not to support that, we'll just cut his programs."
Measure B would have required that 2.5 cents for every $100 of property tax revenue collected in the city go toward affordable housing during the next 15 years. At least half of all new affordable housing units would need to be suited for families - with two bedrooms or more - and 40 percent of new units would have to go to the poorest residents, those making less than 30 percent of the city's median income.
Newsom has said that the measure would tie up cash that the city needs now more than ever for social services like homeless shelters and public health programs. He has noted repeatedly that the city is facing a possible $250 million deficit in 2009, which makes this a bad time to tie up money for specific projects like affordable housing.
"Prop. B is a real backbreaker. We will have to make massive cuts to social services. That is not a threat, it is an objective truth," Newsom said. "As much as we all support affordable housing, where do we find the money in this budget climate?"
The mayor added that the city already has spent more than $200 million on affordable housing in the past several years, and is building more units, some affordable, some not, than anytime in recent history. But supporters of Prop. B, including eight of 11 city supervisors, had said that the current economic climate makes it more important than ever to provide housing for all residents.
They also said that while there has been some money funneled into affordable housing, most of it from federal and state grants, it's not enough, and it's often not well-suited to San Francisco's unique needs. The city's main spending account, the general fund, gives more flexibility. "One never likes to say that $30 million a year is an inconsiderable sum," city housing advocate Calvin Welch said. "It's a large amount of money, but when placed against the size of this budget, $6 billion, it's chump change."
Source: sfgate.com