The San Francisco County Board of Supervisors convened on May 19, 2025, to discuss the formation of a new downtown financing district aimed at addressing housing needs and generating additional tax revenue. The proposed ordinance, which is currently under consideration, seeks to establish a district board of directors that will oversee the district's operations as a separate legal entity from the city.

During the meeting, officials highlighted a preliminary analysis conducted by consultants, indicating that approximately 50 commercial properties in the downtown area could be converted into residential units. This conversion is projected to yield around 4,400 new housing units and generate an estimated $15.5 million annually in tax revenue.

The formation process for the district involves several key steps. The Board of Supervisors must first adopt a resolution of intention to form the district, which is scheduled for discussion at the budget and finance committee meeting later this week. Following this, an ordinance to establish the district board of directors will be presented. The board will consist of five members, including three supervisors and two community members, with terms staggered to ensure continuity.

Once established, the district board will be responsible for developing a financing plan, which must be presented to the Board of Supervisors after holding two public hearings. The board will also be required to meet annually and produce an annual report.

Supervisors expressed strong support for the initiative, emphasizing its potential to revitalize the downtown area and address the pressing housing crisis. The meeting concluded with a call for collaboration and further discussion as the proposal moves forward.