San Francisco, California, Proposition M, Create Tax on Certain Vacant Residential Units Initiative (November 2022)

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San Francisco Proposition M

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Election date

November 8, 2022

Topic
City tax
Status

ApprovedApproved

Type
Initiative


San Francisco Proposition M was on the ballot as an initiative in San Francisco on November 8, 2022. It was approved.

A "yes" vote supported allowing the city to levy a tax on owners of vacant residential units in buildings with three or more units if the units have been vacant for more than 182 days in a year, at a rate between $2,500–5,000 per vacant unit in 2024 with adjustments for inflation in future years, continuing through 2053, and dedicating tax revenue for rent subsidies and affordable housing.

A "no" vote opposed allowing the city to levy a tax on owners of vacant residential units in buildings with three or more units if the units have been vacant for more than 182 days in a year, at a rate between $2,500–5,000 per vacant unit in 2024 with adjustments for inflation in future years, continuing through 2053, and dedicating tax revenue for rent subsidies and affordable housing.


Election results

San Francisco Proposition M

Result Votes Percentage

Approved Yes

159,374 54.51%
No 132,989 45.49%
Results are officially certified.
Source


Text of measure

Ballot title

The ballot title for Proposition M was as follows:

Shall the City tax owners of vacant residential units in buildings with three or more units, if those owners have kept those units vacant for more than 182 days in a calendar year, at a rate between $2,500–5,000 per vacant unit in 2024 and up to $20,000 in later years with adjustments for inflation, to generate estimated annual revenue of $20–37 million, with the tax continuing until December 31, 2053, and use those funds for rent subsidies and affordable housing?

Full Text

The full text of this measure is available here.


Support

Arguments

  • San Francisco Democratic Party, Council of Community Housing Organizations, United Educators of San Francisco, Senior and Disability Action, Affordable Housing Alliance, and Community Tenants Association: "Prop M isn’t about taxing those who call San Francisco home. It’s about tackling the large, corporate landlords keeping units vacant, and those wealthy individuals who purchase units but don’t use them. In the first year alone, it is expected that 4,500 new units will return on the market — more than our annual goals — with no increase in taxes, no construction time, no multi-million dollar price tag, and no waiting."
  • Latinx Democratic Club: "Many Latino families live in multigeneration homes, as a result, the average Latino household is 30% more crowded than the citywide average, according to the US Census Bureau. It is unfair to hard-working families that 40,000 homes sit vacant. This measure will bring 4,500 units back on to the market, increasing the housing supply in our city. Plus, the millions in rental subsidies Prop M will provide for low-income families and seniors will help folks stay in their homes and not be displaced."
  • President of the Board of Supevisors Shamann Walton and Chair of the San Francisco Democratic Party Honey Mahogany: "Since 1970, San Francisco has lost over half of its Black population and this trend shows no sign of stopping unless we take action. The best way to keep San Francisco diverse and hold on to our Black community is by providing more affordable housing. Fixing this problem won't be solved by Prop M alone, but the measure will activate 4,500 empty homes for people to live in while providing millions for affordable housing and rental subsidies."
  • San Francisco Women's Political Committee: "Prop M will increase the city's housing supply and raise millions of dollars to fund affordable housing and rental subsidies for seniors and low-income families. Adequate housing is a central component of women's right to equality,"
  • Harvey Milk LGBTQ Democratic Club: "LGBTQ residents are at higher risk of displacement and homelessness than the general population. Recent statistics indicate that 27% of the homeless population in San Francisco are LGBTQ. Among homeless youths, 50% are LGBTQ. We need to fix this problem now by activating the estimated 4,500 homes Prop M will provide, which will help lower the cost to rent and buy in San Francisco. Help us alleviate LGBQT homelessness by voting Yes on Prop M."
  • Council of Community Housing Organizations and Affordable Housing Alliance: "Prop M will provide for the acquisition of affordable housing and rental subsidies. These funds will help keep working-class San Franciscans from being displaced."
  • San Francisco Tenants Union, Affordable Housing Alliance, and Community Tenants Association: "Prop. M will make more homes available, and it will also raise millions of dollars to fund desperately needed affordable housing and rental subsidies for seniors and low-income families."
  • United Educators of San Francisco, San Francisco Labor Council, and Service Employees International Union 1021: "The never-ending rise of housing costs is hurting our union membership. lf we don't do something about the 40,000 empty homes that are driving up the cost of living in San Francisco, it will be increasingly difficult for the working class to stay here. We need to add 80,000 homes over the next decade and we need Prop M to help meet that goal by activating unused homes."
  • Coalition on Homelessness: "San Francisco has over 40,000 empty homes while over 8,000 folks sleep on the streets every night. The hoarding of vacant units, many of them in rent controlled buildings, is making this issue worse. If we ever want to stop this crisis, we need to do everything in our power to fill these homes, including the taxation of empty units. Vote Yes on Prop M so we can address this serious problem."

Opposition

Arguments

  • San Francisco Apartment Association: "The proponents of this new punitive taxation scheme have purposefully exempted wealthy single-family homeowners with truly unoccupied pied-a-terres in a cynical move to win votes and deceive voters. So why misrepresent the total number of vacancies citywide? Why write a tax measure that picks and chooses which types of homes it taxes? Our leadership has failed to address the housing crisis and refuses to allow new housing to be built, continuously voting down projects which would create hundreds of affordable housing units. Voters should reject the vacancy tax and demand real solutions which truly address our housing crisis."
  • Small Property Owners of San Francisco Institute: "This new tax was created by elected officials who also voted against the creation of hundreds of new homes proposed for various vacant lots throughout the city! Supervisor Preston has proclaimed that there are "40,000 vacant homes" in San Francisco. Less than 10% of that number are actually purposely held off the market by owners who may want to use them in the future for their retirement and who hope to avoid the expensive legal battles associated with reclaiming one's own property form a sitting tenant."
  • San Francisco Taxpayers Association: "It’s a red herring. Just another city bureaucratic expense. Attorneys —including our City Attorney—will be in court forever arguing over legalities and constitutionality of this measure should it pass. What’s “vacant” and what’s a second home? Is a remodel a “vacancy”? What if the remodel takes more than a year? And on and on. This is the same City government that hasn’t been able to put a dent in the homeless situation plaguing our streets for the past 30 years and now City Hall has another false panacea to throw at us in Prop M."


Path to the ballot

See also: Laws governing local ballot measures in California

This initiative was placed on the ballot through a successful initiative petition drive. A total of 8,979 signatures were required by July 11, 2022, to place an initiative ordinance on the San Francisco ballot in 2022. The measure was certified for the ballot on July 14, 2022.[1]

How to cast a vote

See also: Voting in California

Click "Show" to learn more about current voter registration rules, identification requirements, and poll times in California.

See also

Footnotes