Jillian D’Onfro

Michelle O’Connor thought she was taking a risk when she opened a second location of her Noe Valley shop, <a href="https://www.justforfunsanfrancisco.com/">Just for Fun</a>, in the Marina in June. She never expected that, mere months later, she would open a third store on Fillmore Street.&nbsp;

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Michelle O’Connor thought she was taking a risk when she opened a second location of her Noe Valley shop, <a href="https://www.justforfunsanfrancisco.com/">Just for Fun</a>, in the Marina in June. She never expected that, mere months later, she would open a third store on Fillmore Street.&nbsp;

“It was sooner than I wanted —&nbsp;I could have waited another year,” she admitted. But the location and price felt too good to pass up.&nbsp;

“It was sooner than I wanted —&nbsp;I could have waited another year,” she admitted. But the location and price felt too good to pass up.&nbsp;

At a time when <a href="https://sfstandard.com/tag/closures/">many retailers</a> and <a href="https://sfstandard.com/2024/10/08/aphotic-reservations-closing-san-francisco/">restaurateurs</a> are calling it quits on the city, leading to <a href="https://www.sfexaminer.com/news/business/san-francisco-retail-vacancy-rate-sets-yet-another-record/article_34d8add8-4f90-11ef-b59f-7b1c7dce5500.html">record-high vacancy rates</a> last quarter, a swath of business owners have decided to double —&nbsp;or triple — down, thanks to what they describe as a renter-centric commercial real estate climate.&nbsp;

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At a time when <a href="https://sfstandard.com/tag/closures/">many retailers</a> and <a href="https://sfstandard.com/2024/10/08/aphotic-reservations-closing-san-francisco/">restaurateurs</a> are calling it quits on the city, leading to <a href="https://www.sfexaminer.com/news/business/san-francisco-retail-vacancy-rate-sets-yet-another-record/article_34d8add8-4f90-11ef-b59f-7b1c7dce5500.html">record-high vacancy rates</a> last quarter, a swath of business owners have decided to double —&nbsp;or triple — down, thanks to what they describe as a renter-centric commercial real estate climate.&nbsp;

“SF is going through this renewal and regeneration at the moment,” O’Connor said. “These opportunities won’t be around forever. I’m investing in San Francisco being back on the up.”

“SF is going through this renewal and regeneration at the moment,” O’Connor said. “These opportunities won’t be around forever. I’m investing in San Francisco being back on the up.”

Michelle O’Connor, owner of toy, art and homeware story Just For Fun, stands inside the second location of her store — which just opened this fall on Fillmore Street in Pacific Heights in San Francisco — on Tuesday, October 15, 2024. Small and medium-size businesses are taking advantage of good prices and expanding to second and third outposts across the city.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/10/20241010-smboutposts-pt2-me-7.jpg?w=2500" alt="A person in a green sweater and glasses stands in a colorful toy store, surrounded by shelves filled with various toys, games, and plush animals." class="wp-image-323274"/><figcaption class="wp-element-caption">Michelle O’Connor in her new Just for Fun location on Fillmore Street in Pacific Heights.</figcaption></figure>

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<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/10/20241010-smboutposts-pt2-me-7.jpg?w=2500" alt="A person in a green sweater and glasses stands in a colorful toy store, surrounded by shelves filled with various toys, games, and plush animals." class="wp-image-323274"/><figcaption class="wp-element-caption">Michelle O’Connor in her new Just for Fun location on Fillmore Street in Pacific Heights.</figcaption></figure>

She isn’t alone: In the year to June 30, the San Francisco Office of Small Business assisted 261 owners who wanted to expand versus 197 in the previous fiscal year. (Notably, the office brought on a permit specialist and a leasing specialist in the past two years.) During the same period the office also dispensed 14 “Storefront Opportunity” grants of $50,000 to businesses adding a location.&nbsp;

She isn’t alone: In the year to June 30, the San Francisco Office of Small Business assisted 261 owners who wanted to expand versus 197 in the previous fiscal year. (Notably, the office brought on a permit specialist and a leasing specialist in the past two years.) During the same period the office also dispensed 14 “Storefront Opportunity” grants of $50,000 to businesses adding a location.&nbsp;

O’Connor, who didn’t receive grant money, said she and her husband are committed to building community and healthy commercial corridors in the city where they’re raising their two children.&nbsp;&nbsp;

O’Connor, who didn’t receive grant money, said she and her husband are committed to building community and healthy commercial corridors in the city where they’re raising their two children.&nbsp;&nbsp;

“San Francisco had a tough time through Covid —&nbsp;a lot of businesses didn’t survive, and there’s a void,” O’Connor said. “It’s sad to see businesses go, but someone’s got to step up and fill that void; otherwise, we wouldn’t have anything. So I guess that’s why I’m trying my luck at it.”

“San Francisco had a tough time through Covid —&nbsp;a lot of businesses didn’t survive, and there’s a void,” O’Connor said. “It’s sad to see businesses go, but someone’s got to step up and fill that void; otherwise, we wouldn’t have anything. So I guess that’s why I’m trying my luck at it.”

<h2 class="wp-block-heading" id="h-buying-the-dip-nbsp">Buying the dip&nbsp;</h2>

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<h2 class="wp-block-heading" id="h-buying-the-dip-nbsp">Buying the dip&nbsp;</h2>

For <a href="https://www.thatsouttasight.com/#/">Outta Sight</a> pizzeria founders <a href="https://sfstandard.com/2024/08/27/best-late-night-food-mission-san-francisco/">Eric Ehler</a> and Peter Dorrance, opening a new outpost felt like a way to add stability to their business and take advantage of the fact that their Tenderloin shop regularly hits capacity. They’re set to <a href="https://sf.eater.com/2024/5/23/24163288/outta-sight-pizza-chinatown-restaurant-opening">debut a location</a> straddling the Chinatown and Financial District border in November.&nbsp;

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For <a href="https://www.thatsouttasight.com/#/">Outta Sight</a> pizzeria founders <a href="https://sfstandard.com/2024/08/27/best-late-night-food-mission-san-francisco/">Eric Ehler</a> and Peter Dorrance, opening a new outpost felt like a way to add stability to their business and take advantage of the fact that their Tenderloin shop regularly hits capacity. They’re set to <a href="https://sf.eater.com/2024/5/23/24163288/outta-sight-pizza-chinatown-restaurant-opening">debut a location</a> straddling the Chinatown and Financial District border in November.&nbsp;

“It was a great deal,” Ehler said of the space, which the duo found last year. The current market gives entrepreneurs ample room to “negotiate” and “be diligent” to find a good landlord, he added.&nbsp;

“It was a great deal,” Ehler said of the space, which the duo found last year. The current market gives entrepreneurs ample room to “negotiate” and “be diligent” to find a good landlord, he added.&nbsp;

“There’s so much empty retail space and commercial space out there, and there’s so much that will hit the market soon too,” he said. “Not to be disheartening, but this feels like a time for the change in guard.”&nbsp;

“There’s so much empty retail space and commercial space out there, and there’s so much that will hit the market soon too,” he said. “Not to be disheartening, but this feels like a time for the change in guard.”&nbsp;

Co-owner Eric Ehler outside the Outta Sight Pizza II location in Chinatown on October 11, 2024. Some small business owners are feeling good enough to open up new outposts in the city, like Eric Ehler, owner of Outta Sight Pizza, who’s opening up Outta Sight Pizza II in Chinatown this fall.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/10/20241011_smboutposts_-0382.jpg?w=2500" alt="A man with tattoos holds a gate beside signs reading &quot;Outta Sight Pizza II&quot; and &quot;Coming Soon!&quot; on a window. He's wearing a black cap and a &quot;Mr. Relevant&quot; shirt." class="wp-image-323308"/><figcaption class="wp-element-caption">Ehler outside the Outta Sight Pizza II location in Chinatown.</figcaption></figure>

The Outta Sight Pizza II location in Chinatown under construction on October 11, 2024. Some small business owners are feeling good enough to open up new outposts in the city, like Eric Ehler, owner of Outta Sight Pizza, who’s opening up Outta Sight Pizza II in Chinatown this fall.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/10/20241011_smboutposts_-0373.jpg?w=2500" alt="A room under renovation with ladders, tools, and construction materials scattered around. White walls and a tiled floor lead to a glass door marked &quot;EXIT.&quot;" class="wp-image-323307"/><figcaption class="wp-element-caption">The current market gives entrepreneurs room to “negotiate” and “be diligent” to find a good landlord, Ehler says.</figcaption></figure>

To be sure, entrepreneurs like Ehler and Dorrance are moving against a larger trend: San Francisco’s retail vacancy rates hit <a href="https://content.sfstandard.com/wp-content/uploads/2024/10/san-francisco_americas_marketbeat_retail_q3-2024.pdf">a new high this quarter at 7.9%,</a> according to Cushman Wakefield’s Kazuko Morgan. But that means business owners looking for leases can find gems. “There have been a lot of people sitting on the sidelines,” Morgan said. “But the people who recognize that it’s a tenant’s market are taking advantage and doing deals.”&nbsp;

To be sure, entrepreneurs like Ehler and Dorrance are moving against a larger trend: San Francisco’s retail vacancy rates hit <a href="https://content.sfstandard.com/wp-content/uploads/2024/10/san-francisco_americas_marketbeat_retail_q3-2024.pdf">a new high this quarter at 7.9%,</a> according to Cushman Wakefield’s Kazuko Morgan. But that means business owners looking for leases can find gems. “There have been a lot of people sitting on the sidelines,” Morgan said. “But the people who recognize that it’s a tenant’s market are taking advantage and doing deals.”&nbsp;

San Francisco will eventually rebound, she predicts, and savvy businesses are locking down leases before that happens. She got a glimpse of the potential future on a recent trip to New York City, where she saw that retail spaces were getting multiple offers and increasing their rents.

San Francisco will eventually rebound, she predicts, and savvy businesses are locking down leases before that happens. She got a glimpse of the potential future on a recent trip to New York City, where she saw that retail spaces were getting multiple offers and increasing their rents.

“Not so long ago we were in a 3% vacancy here,” she said. “It’s not always going to be this way in San Francisco.”&nbsp;

“Not so long ago we were in a 3% vacancy here,” she said. “It’s not always going to be this way in San Francisco.”&nbsp;

‘Really good’ prices and help from the city&nbsp;&nbsp;

<h2 class="wp-block-heading" id="h-really-good-prices-and-help-from-the-city-nbsp-nbsp">‘Really good’ prices and help from the city&nbsp;&nbsp;</h2>

Britney Lamb, founder of <a href="https://theyogashalasf.com/">the Yoga Shala</a>, remembers the pain of hunting for her first studio in 2022. Her real estate agent kept showing her spaces that cost $10,000 a month, way over her budget. She ended up scoring her Sunset studio, which hadn’t been actively listed, by contacting the building’s owners directly.

Britney Lamb, founder of <a href="https://theyogashalasf.com/">the Yoga Shala</a>, remembers the pain of hunting for her first studio in 2022. Her real estate agent kept showing her spaces that cost $10,000 a month, way over her budget. She ended up scoring her Sunset studio, which hadn’t been actively listed, by contacting the building’s owners directly.

The process the second time around felt amazingly simple in comparison: She found the perfect location in the Richmond “within the first three minutes” of searching on Craigslist, Lamb recalled with a laugh. “The price felt really good,” she added. She hopes to have its grand opening at the beginning of December.&nbsp;

The process the second time around felt amazingly simple in comparison: She found the perfect location in the Richmond “within the first three minutes” of searching on Craigslist, Lamb recalled with a laugh. “The price felt really good,” she added. She hopes to have its grand opening at the beginning of December.&nbsp;

Yoga Shala founder Brittany Lamb dreamed of opening her own studio since she was 19 and finally made it happen with her first studio in 2022.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/10/img_3517.jpg?w=1284" alt="A joyful group of people poses energetically in a yoga studio, with yoga mats on the floor. They are smiling and raising their arms, creating a lively atmosphere." class="wp-image-323318"/><figcaption class="wp-element-caption">The Yoga Shala founder Brittany Lamb opened her first studio in 2022.</figcaption></figure>

Most areas of San Francisco have <a href="https://sfstandard.com/2024/10/05/sf-japantown-small-businesses-are-thriving/">seen sales tax revenue plummet since 2019</a>, but Lamb is bullish on both the Sunset and the Richmond.

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Most areas of San Francisco have <a href="https://sfstandard.com/2024/10/05/sf-japantown-small-businesses-are-thriving/">seen sales tax revenue plummet since 2019</a>, but Lamb is bullish on both the Sunset and the Richmond.

“I do think that there are people in the neighborhoods of San Francisco who aren’t going anywhere —&nbsp;this is their home and their community,” she said. “I think there’s a need for community and places for people to congregate.”&nbsp;

“I do think that there are people in the neighborhoods of San Francisco who aren’t going anywhere —&nbsp;this is their home and their community,” she said. “I think there’s a need for community and places for people to congregate.”&nbsp;

While obtaining the right zoning for her new space —&nbsp;previously occupied by a law office —&nbsp;entailed “several curveballs” and significant stress, she credits the city with helping her through it.&nbsp;

While obtaining the right zoning for her new space —&nbsp;previously occupied by a law office —&nbsp;entailed “several curveballs” and significant stress, she credits the city with helping her through it.&nbsp;

Sarah Dennis Phillips, executive director of the Office of Economic and Workforce Development, said expanding businesses have access to “one-on-one business counseling, leasing, and permitting help, as well as connections to financing and grants.”

Sarah Dennis Phillips, executive director of the Office of Economic and Workforce Development, said expanding businesses have access to “one-on-one business counseling, leasing, and permitting help, as well as connections to financing and grants.”

For example, the city’s First Year Free program waives permit, license, and business registration fees for an entrepreneur’s inaugural year. One recent recipient, Ismael De Luna, opened his <a href="https://www.ktvu.com/news/new-castro-business-touted-success-story-sfs-first-year-free-program">second storefront in the Castro in September</a>: a <a href="https://taboosf.com/">wellness center, Taboo</a>, which complements his other business, <a href="https://healingcutssf.com/">Healing Cuts</a>.&nbsp;

For example, the city’s First Year Free program waives permit, license, and business registration fees for an entrepreneur’s inaugural year. One recent recipient, Ismael De Luna, opened his <a href="https://www.ktvu.com/news/new-castro-business-touted-success-story-sfs-first-year-free-program">second storefront in the Castro in September</a>: a <a href="https://taboosf.com/">wellness center, Taboo</a>, which complements his other business, <a href="https://healingcutssf.com/">Healing Cuts</a>.&nbsp;

The Taboo space “had been dark for many years,” he said, which allowed him to access other city grants geared toward <a href="https://sfstandard.com/2024/06/18/new-vacant-to-vibrant-popup-businesses-downtown-sf/">filling empty storefronts</a>. “I knew I had what it takes to bring light to an environment that was so depressing,” De Luna said. “The city is thirsty for progress.”&nbsp;

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The Taboo space “had been dark for many years,” he said, which allowed him to access other city grants geared toward <a href="https://sfstandard.com/2024/06/18/new-vacant-to-vibrant-popup-businesses-downtown-sf/">filling empty storefronts</a>. “I knew I had what it takes to bring light to an environment that was so depressing,” De Luna said. “The city is thirsty for progress.”&nbsp;

Ismael de Luna, owner of Healing Cuts salon in the Castro, poses for a portrait outside the salon — next door to where he opened his second outpost Taboo SF this fall — in San Francisco on Tuesday, October 15, 2024. Small and medium-size businesses are taking advantage of good prices and expanding to second and third outposts across the city.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/10/20241010-smboutposts-pt2-me-66.jpg?w=1667" alt="A man sits on a stool outside a storefront with a neon &quot;open&quot; sign, wearing a patterned shirt and green shoes. A &quot;Boo!&quot; sign hangs nearby." class="wp-image-323283"/><figcaption class="wp-element-caption">&#8220;When you have a vision, nothing is impossible,&#8221; Ismael De Luna tells other entrepreneurs considering expansion.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/10/20241010-smboutposts-pt2-me-66.jpg?w=1667" alt="A man sits on a stool outside a storefront with a neon &quot;open&quot; sign, wearing a patterned shirt and green shoes. A &quot;Boo!&quot; sign hangs nearby." class="wp-image-323283"/><figcaption class="wp-element-caption">"When you have a vision, nothing is impossible," Ismael De Luna tells other entrepreneurs considering expansion.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/10/20241010-smboutposts-pt2-me-66.jpg?w=1667" alt="A man sits on a stool outside a storefront with a neon &quot;open&quot; sign, wearing a patterned shirt and green shoes. A &quot;Boo!&quot; sign hangs nearby." class="wp-image-323283"/><figcaption class="wp-element-caption">&#8220;When you have a vision, nothing is impossible,&#8221; Ismael De Luna tells other entrepreneurs considering expansion.</figcaption></figure>

De Luna’s advice for other entrepreneurs considering expansion is to dive in headfirst. “When you have a vision, nothing is impossible,” he said. “There’s always a solution for any problem that may exist.”&nbsp;

De Luna’s advice for other entrepreneurs considering expansion is to dive in headfirst. “When you have a vision, nothing is impossible,” he said. “There’s always a solution for any problem that may exist.”&nbsp;

Outta Sight’s Ehler also advocates taking risks, advising business owners to ask for help, hire good people, and have fun.&nbsp;

Outta Sight’s Ehler also advocates taking risks, advising business owners to ask for help, hire good people, and have fun.&nbsp;

“You don’t have to have a million-dollar build-out,” he said. “You just need to have good service and a good product. That’s what has been working for us.”&nbsp;

“You don’t have to have a million-dollar build-out,” he said. “You just need to have good service and a good product. That’s what has been working for us.”&nbsp;

Just for Fun’s O’Connor echoes that: “My advice would be: Now is the time.”&nbsp;

Just for Fun’s O’Connor echoes that: “My advice would be: Now is the time.”&nbsp;

SF small businesses spot opportunities in the city’s real estate crash

Sarah Wright

A little-known committee tasked with setting San Francisco’s inclusionary housing rate—an affordability minimum often criticized by developers—is reassembling this year, with potentially big implications.

A little-known committee tasked with setting San Francisco’s inclusionary housing rate—an affordability minimum often criticized by developers—is reassembling this year, with potentially big implications.

Now, two newly appointed members to the board are raising eyebrows for their previous stances on housing development.&nbsp;

Now, two newly appointed members to the board are raising eyebrows for their previous stances on housing development.&nbsp;

Fernando Martí and Peter Cohen, former leaders at the progressive Council of Community Housing Organizations, were appointed to the board. But it was not without opposition from some members.&nbsp;

Fernando Martí and Peter Cohen, former leaders at the progressive Council of Community Housing Organizations, were appointed to the board. But it was not without opposition from some members.&nbsp;

Supervisors Myrna Melgar, Matt Dorsey, Catherine Stefani and Ahsha Safaí voted against Cohen. That was after Melgar tried to send Cohen’s nomination back to committee, saying she wants a more qualified local candidate with a collaborative spirit.&nbsp;

Supervisors Myrna Melgar, Matt Dorsey, Catherine Stefani and Ahsha Safaí voted against Cohen. That was after Melgar tried to send Cohen’s nomination back to committee, saying she wants a more qualified local candidate with a collaborative spirit.&nbsp;

But she was overruled by her colleagues in a 7-4 vote.&nbsp;

But she was overruled by her colleagues in a 7-4 vote.&nbsp;

“I don&#8217;t want to give a leadership position to someone who won&#8217;t be welcoming to the voices of others,” Melgar said

“I don't want to give a leadership position to someone who won't be welcoming to the voices of others,” Melgar said

“I don&#8217;t want to give a leadership position to someone who won&#8217;t be welcoming to the voices of others,” Melgar said

Dorsey, who voted against Cohen but in favor of Martí, cited the pair’s opposition to <a href="https://acrobat.adobe.com/link/track?uri=urn:aaid:scds:US:1e85ec3c-3e7b-4578-9cec-9ff8ee32216c">legislation like SB 35</a>—a state law that fast-tracked certain housing developments—as damning.

Dorsey, who voted against Cohen but in favor of Martí, cited the pair’s opposition to <a href="https://acrobat.adobe.com/link/track?uri=urn:aaid:scds:US:1e85ec3c-3e7b-4578-9cec-9ff8ee32216c">legislation like SB 35</a>—a state law that fast-tracked certain housing developments—as damning.

“Right now, the stakes of failure on housing production are too high to risk returning to the kind of advocacy that has too often stymied housing production in San Francisco,” Dorsey said.

“Right now, the stakes of failure on housing production are too high to risk returning to the kind of advocacy that has too often stymied housing production in San Francisco,” Dorsey said.

Whitney Jones and Shannon Way were unanimously appointed to the eight-member committee on Tuesday. Mayor London Breed made four additional appointments this week, naming Sarah Dennis-Phillips, Rebecca Foster, Eric Tao and Jesse Blout.

Whitney Jones and Shannon Way were unanimously appointed to the eight-member committee on Tuesday. Mayor London Breed made four additional appointments this week, naming Sarah Dennis-Phillips, Rebecca Foster, Eric Tao and Jesse Blout.

The city’s “inclusionary housing” rate determines the portion of units a developer must set aside for below-market-rate housing in any project larger than 10 units. A committee revisits that rate every three years, though it hasn’t convened since 2018 due to the pandemic.&nbsp;

The city’s “inclusionary housing” rate determines the portion of units a developer must set aside for below-market-rate housing in any project larger than 10 units. A committee revisits that rate every three years, though it hasn’t convened since 2018 due to the pandemic.&nbsp;

The city’s rising inclusionary housing rate has been <a href="https://sfstandard.com/housing-development/how-san-francisco-makes-it-insanely-hard-to-build-housing/">a major pain point for developers</a> trying to make new housing projects worth their while in the city.

The city’s rising inclusionary housing rate has been <a href="https://sfstandard.com/housing-development/how-san-francisco-makes-it-insanely-hard-to-build-housing/">a major pain point for developers</a> trying to make new housing projects worth their while in the city.

When piled on top of rising labor and materials costs, the city’s numerous and growing fees are an oft-cited factor driving developers out to other Bay Area cities and slowing San Francisco’s housing pipeline, which is projected to produce <a href="https://sfstandard.com/housing-development/despite-reforms-san-francisco-is-building-fewer-homes-now-than-before/">under 3,000 new units this year </a>as new permits reach just half the 10-year average all while the city faces a mandate to make room for 82,000 new homes by 2031.&nbsp;

When piled on top of rising labor and materials costs, the city’s numerous and growing fees are an oft-cited factor driving developers out to other Bay Area cities and slowing San Francisco’s housing pipeline, which is projected to produce <a href="https://sfstandard.com/housing-development/despite-reforms-san-francisco-is-building-fewer-homes-now-than-before/">under 3,000 new units this year </a>as new permits reach just half the 10-year average all while the city faces a mandate to make room for 82,000 new homes by 2031.&nbsp;

In late 2017, the committee tweaked the rate to its current level—which ranges from 14.5% to 27% based on the size of the project, where it is located and whether the units are rented or sold. Developers also have an option to pay an “in lieu” fee at about $230 per square foot of the building’s residential area, also set by the committee, intended to help build affordable homes at a different location. 

In late 2017, the committee tweaked the rate to its current level—which ranges from 14.5% to 27% based on the size of the project, where it is located and whether the units are rented or sold. Developers also have an option to pay an “in lieu” fee at about $230 per square foot of the building’s residential area, also set by the committee, intended to help build affordable homes at a different location.

The work feels especially urgent this time, Way said.&nbsp;

The work feels especially urgent this time, Way said.&nbsp;

“To some degree, I wish we had started the conversation a bit earlier,” she said. “I think we are already falling a little bit behind the mark.”

“To some degree, I wish we had started the conversation a bit earlier,” she said. “I think we are already falling a little bit behind the mark.”

In 2018, the Controller’s Office tapped economic consultants for guidance in setting the new rate. But the process will undoubtedly be political, especially once it reaches discussion at the Board of Supervisors.&nbsp;

In 2018, the Controller’s Office tapped economic consultants for guidance in setting the new rate. But the process will undoubtedly be political, especially once it reaches discussion at the Board of Supervisors.&nbsp;

“It is not a purely technical question,” Supervisor Rafael Mandelman said. “There are values embedded into it.”

“It is not a purely technical question,” Supervisor Rafael Mandelman said. “There are values embedded into it.”

The city’s housing debate is dominated by competing factions that believe in bolstering affordable housing requirements versus those who argue that strict mandates kill projects, worsening the housing shortage. They also differ on how flexible the rate should be and whether it should be linked to an economic indicator like interest rates.&nbsp;&nbsp;

The city’s housing debate is dominated by competing factions that believe in bolstering affordable housing requirements versus those who argue that strict mandates kill projects, worsening the housing shortage. They also differ on how flexible the rate should be and whether it should be linked to an economic indicator like interest rates.&nbsp;&nbsp;

“If it can be driven by math and data instead of politics,” Housing Action Coalition Executive Director Corey Smith said, “that would be the best outcome.”

“If it can be driven by math and data instead of politics,” Housing Action Coalition Executive Director Corey Smith said, “that would be the best outcome.”

Correction: A previous version of this article misstated the current inclusionary rate for onsite affordable housing development and the date when it was last changed.

Correction: A previous version of this article misstated the current inclusionary rate for onsite affordable housing development and the date when it was last changed.

An obscure committee could change SF’s housing rules. Here’s why it matters

Josh Koehn

The most important phone call of <a href="https://sfstandard.com/search/?query=london%20breed">London Breed</a>’s career went to voicemail. So did the next call. And the next.&nbsp;

The most important phone call of <a href="https://sfstandard.com/search/?query=london%20breed">London Breed</a>’s career went to voicemail. So did the next call. And the next.&nbsp;

San Francisco police had already been dispatched to Breed’s apartment in the middle of the night when she finally picked up the phone and got an inkling of just how drastically her life was about to change. Earlier in the evening of Dec. 11, 2017, Mayor Ed Lee had suffered a heart attack while grocery shopping. As president of the Board of Supervisors, Breed was first in line to the throne.&nbsp;

San Francisco police had already been dispatched to Breed’s apartment in the middle of the night when she finally picked up the phone and got an inkling of just how drastically her life was about to change. Earlier in the evening of Dec. 11, 2017, Mayor Ed Lee had suffered a heart attack while grocery shopping. As president of the Board of Supervisors, Breed was first in line to the throne.&nbsp;

She arrived at Zuckerberg San Francisco General Hospital in an ashen state, according to one of the many city officials who stood vigil that night. Doctors were struggling to keep Lee alive, but word was spreading that he would be severely incapacitated even if he survived. Breed joined the mayor’s chief of staff, Jason Elliott, and another advisor in a conference room as they waited for news. At 1:11 a.m, Lee’s heart took its last beat.

She arrived at Zuckerberg San Francisco General Hospital in an ashen state, according to one of the many city officials who stood vigil that night. Doctors were struggling to keep Lee alive, but word was spreading that he would be severely incapacitated even if he survived. Breed joined the mayor’s chief of staff, Jason Elliott, and another advisor in a conference room as they waited for news. At 1:11 a.m, Lee’s heart took its last beat.

“I told her: ‘You’re the mayor now,’” Elliott recalled. “And that was the beginning.”

“I told her: ‘You’re the mayor now,’” Elliott recalled. “And that was the beginning.”

Breed showed grace under pressure in the role of acting mayor and rallied the city in the days to come. But in short order, Breed’s colleagues would turn against her, forcing her to mount a historic campaign to become San Francisco’s first elected Black woman mayor. She was propelled into office by a diverse but&nbsp;moderate-leaning coalition of voters, garnering strong support from women&nbsp;and people of color as well as real estate and business interests. But the honeymoon would be brief.

Breed showed grace under pressure in the role of acting mayor and rallied the city in the days to come. But in short order, Breed’s colleagues would turn against her, forcing her to mount a historic campaign to become San Francisco’s first elected Black woman mayor. She was propelled into office by a diverse but&nbsp;moderate-leaning coalition of voters, garnering strong support from women&nbsp;and people of color as well as real estate and business interests. But the honeymoon would be brief.

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<figure class="wp-block-video"><video autoplay controls loop muted src="https://content.sfstandard.com/wp-content/uploads/2023/06/BreedProfile05312023_VIDEO_LEE_DEATH.mp4"></video><figcaption class="wp-element-caption">After the death of San Francisco Mayor Ed Lee on Dec. 12, 2017, London Breed addresses the media after assuming the role of acting mayor. | Courtesy SFGovTV</figcaption></figure>

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<div class="wp-block-column"><figure class="wp-block-video"><video autoplay controls loop muted src="https://content.sfstandard.com/wp-content/uploads/2023/06/BreedProfile05312023_VIDEO_LEE_DEATH.mp4"></video><figcaption class="wp-element-caption">After the death of San Francisco Mayor Ed Lee on Dec. 12, 2017, London Breed addresses the media after assuming the role of acting mayor. | Courtesy SFGovTV</figcaption></figure></div>

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<div class="wp-block-columns"><div class="wp-block-column"><figure class="wp-block-video"><video autoplay controls loop muted src="https://content.sfstandard.com/wp-content/uploads/2023/06/BreedProfile05312023_VIDEO_LEE_DEATH.mp4"></video><figcaption class="wp-element-caption">After the death of San Francisco Mayor Ed Lee on Dec. 12, 2017, London Breed addresses the media after assuming the role of acting mayor. | Courtesy SFGovTV</figcaption></figure></div></div>

Breed’s handling of Covid was widely praised, but the vulnerabilities of a local economy disproportionately dependent on tech would soon be exposed. For years, San Francisco’s tax coffers had been bursting at the seams, but a debt was coming due amid a new era of remote work. All the while, the widening gulf between haves and have-nots coupled with hopeless bureaucratic stonewalling had exacerbated issues around housing, homelessness, drug addiction and property crime.

Breed’s handling of Covid was widely praised, but the vulnerabilities of a local economy disproportionately dependent on tech would soon be exposed. For years, San Francisco’s tax coffers had been bursting at the seams, but a debt was coming due amid a new era of remote work. All the while, the widening gulf between haves and have-nots coupled with hopeless bureaucratic stonewalling had exacerbated issues around housing, homelessness, drug addiction and property crime.

Five and a half years after Lee’s death, Breed now stands at the helm of a city in turmoil.&nbsp;

Five and a half years after Lee’s death, Breed now stands at the helm of a city in turmoil.&nbsp;

San Francisco’s reputation as a bastion of innovation and liberalism has given way to narratives about wasted potential and American rot. The city is on pace for a record-setting 800 drug <a href="https://sfstandard.com/public-health/man-dies-of-possible-drug-overdose-at-downtown-san-francisco-bart-station/">overdose deaths</a> this year; tents, discarded needles, artless graffiti, psychotic breakdowns and sidewalk scat are common even in some affluent neighborhoods. Property crime is rampant, and—despite <a href="https://sfstandard.com/business/san-francisco-home-listings-way-down-as-mortgage-lock-in-scares-off-sellers/">a dip in the market</a>—the idea of owning a home in the city remains a pipe dream for most as median home prices hover at around $1.3 million.

San Francisco’s reputation as a bastion of innovation and liberalism has given way to narratives about wasted potential and American rot. The city is on pace for a record-setting 800 drug <a href="https://sfstandard.com/public-health/man-dies-of-possible-drug-overdose-at-downtown-san-francisco-bart-station/">overdose deaths</a> this year; tents, discarded needles, artless graffiti, psychotic breakdowns and sidewalk scat are common even in some affluent neighborhoods. Property crime is rampant, and—despite <a href="https://sfstandard.com/business/san-francisco-home-listings-way-down-as-mortgage-lock-in-scares-off-sellers/">a dip in the market</a>—the idea of owning a home in the city remains a pipe dream for most as median home prices hover at around $1.3 million.

Major retailers such as <a href="https://sfstandard.com/business/downtown-san-francisco-whole-foods-market-closing/">Whole Foods</a>, <a href="https://sfstandard.com/business/nordstrom-to-shutter-both-san-francisco-downtown-stores-citing-deteriorating-conditions-report/">Nordstrom</a> and <a href="https://sfstandard.com/business/downtown-san-francisco-old-navy-flagship-store-closing-after-26-years/">Old Navy</a> have decided to shutter their flagship stores. Remote work has <a href="https://sfstandard.com/business/downtown-san-francisco-vacancies-hit-record-high-as-city-nears-breaking-point/">emptied out almost a third of San Francisco’s office space</a>, contributing to <a href="https://sfstandard.com/politics/city-hall/san-franciscos-deficit-swells-to-780m-in-latest-sign-of-budget-distress/">a $780 million budget deficit</a> and leaving Downtown skyscrapers to sit like ghost towns with panoramic views of the bay.

Major retailers such as <a href="https://sfstandard.com/business/downtown-san-francisco-whole-foods-market-closing/">Whole Foods</a>, <a href="https://sfstandard.com/business/nordstrom-to-shutter-both-san-francisco-downtown-stores-citing-deteriorating-conditions-report/">Nordstrom</a> and <a href="https://sfstandard.com/business/downtown-san-francisco-old-navy-flagship-store-closing-after-26-years/">Old Navy</a> have decided to shutter their flagship stores. Remote work has <a href="https://sfstandard.com/business/downtown-san-francisco-vacancies-hit-record-high-as-city-nears-breaking-point/">emptied out almost a third of San Francisco’s office space</a>, contributing to <a href="https://sfstandard.com/politics/city-hall/san-franciscos-deficit-swells-to-780m-in-latest-sign-of-budget-distress/">a $780 million budget deficit</a> and leaving Downtown skyscrapers to sit like ghost towns with panoramic views of the bay.

More than three-quarters of San Franciscans <a href="https://sfstandard.com/business/heres-how-san-francisco-officials-are-doing-on-their-plan-to-save-downtown/">believe the city is on the wrong track</a>, a recent poll showed, and Breed’s approval numbers are plunging.&nbsp;

More than three-quarters of San Franciscans <a href="https://sfstandard.com/business/heres-how-san-francisco-officials-are-doing-on-their-plan-to-save-downtown/">believe the city is on the wrong track</a>, a recent poll showed, and Breed’s approval numbers are plunging.&nbsp;

Breed’s tough talk on crime and blame game with “lefty” political opponents is wearing thin. Frustrated residents are questioning her vision for the city and turning a critical eye to her performance. Meanwhile, potential challengers are kicking the tires on campaigns to defeat her in 2024.&nbsp;

Breed’s tough talk on crime and blame game with “lefty” political opponents is wearing thin. Frustrated residents are questioning her vision for the city and turning a critical eye to her performance. Meanwhile, potential challengers are kicking the tires on campaigns to defeat her in 2024.&nbsp;

Over six months, The Standard interviewed more than 50 people close to Breed, from friends and neighbors in the Western Addition housing project where she grew up to associates and colleagues in City Hall. The portrait that emerged from these conversations is that of a sharp-tongued but sincere leader. Breed is charming, intuitive, community-driven and wickedly funny, a people person just as capable of connecting with minimum-wage <a href="https://sfstandard.com/public-health/can-san-franciscos-new-welcome-ambassadors-uplift-the-citys-image/">street ambassadors</a> as high-society <a href="https://sfstandard.com/politics/elections/wealthy-san-franciscans-battle-it-out-november-ballot-measures/">power brokers</a>.

Over six months, The Standard interviewed more than 50 people close to Breed, from friends and neighbors in the Western Addition housing project where she grew up to associates and colleagues in City Hall. The portrait that emerged from these conversations is that of a sharp-tongued but sincere leader. Breed is charming, intuitive, community-driven and wickedly funny, a people person just as capable of connecting with minimum-wage <a href="https://sfstandard.com/public-health/can-san-franciscos-new-welcome-ambassadors-uplift-the-citys-image/">street ambassadors</a> as high-society <a href="https://sfstandard.com/politics/elections/wealthy-san-franciscans-battle-it-out-november-ballot-measures/">power brokers</a>.

However, behind closed doors, some of Breed’s strongest traits cut both ways. The 48-year-old mayor’s bluntness can complicate collaboration. Breed doesn’t micromanage, but some say she over-delegates leadership to overwhelmed department heads and staff who are running on fumes. Supporters praise her willingness to try new strategies to confront the generational crises plaguing San Francisco, though they admit the implementation can be scattershot.&nbsp;

However, behind closed doors, some of Breed’s strongest traits cut both ways. The 48-year-old mayor’s bluntness can complicate collaboration. Breed doesn’t micromanage, but some say she over-delegates leadership to overwhelmed department heads and staff who are running on fumes. Supporters praise her willingness to try new strategies to confront the generational crises plaguing San Francisco, though they admit the implementation can be scattershot.&nbsp;

Mayor London Breed speaks during a press conference about the state of smalls businesses in the SoMa district of San Francisco, on Wednesday, June 8, 2022. | Camille Cohen/The Standard

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/06/INLINED1_NEW_BreedProfile11142022.jpg" alt="Mayor London Breed speaks about the state of small businesses in the South of Market area of San Francisco on June 8, 2022" class="wp-image-171134"/><figcaption class="wp-element-caption">Mayor London Breed speaks about the state of small businesses in the South of Market area of San Francisco on June 8, 2022. | Camille Cohen/The Standard</figcaption></figure>

The mission of being mayor is deeply personal for Breed. Unlike most of the city’s politicians, her life was profoundly shaped by many of the same ills now roiling San Francisco: poverty, addiction, crime, mental illness and housing and economic instability.

The mission of being mayor is deeply personal for Breed. Unlike most of the city’s politicians, her life was profoundly shaped by many of the same ills now roiling San Francisco: poverty, addiction, crime, mental illness and housing and economic instability.

“You grow up a certain way, and you remember it like it was yesterday,” Breed said in an early June interview with The Standard. “The fact that I even graduated from high school and ended up in college and graduated from college—for me, it’s a big deal. And it also makes me live like I have nothing to lose.”

“You grow up a certain way, and you remember it like it was yesterday,” Breed said in an early June interview with The Standard. “The fact that I even graduated from high school and ended up in college and graduated from college—for me, it’s a big deal. And it also makes me live like I have nothing to lose.”

A ballot measure passed last year pushed the mayor’s race to 2024, extending the tightrope Breed must traverse to reelection. To secure a second term and become the longest-serving San Francisco mayor in almost a century, Breed will need to solve—or at least alleviate—the problems of a broken city that have been decades in the making.

A ballot measure passed last year pushed the mayor’s race to 2024, extending the tightrope Breed must traverse to reelection. To secure a second term and become the longest-serving San Francisco mayor in almost a century, Breed will need to solve—or at least alleviate—the problems of a broken city that have been decades in the making.

This is far from the only time Breed has faced extreme pressure. But even some of her most ardent supporters are uncertain if she’s capable of answering the call.

This is far from the only time Breed has faced extreme pressure. But even some of her most ardent supporters are uncertain if she’s capable of answering the call.

“Is there a feeling of vulnerability?” asked one of the mayor’s closest allies, who spoke on the condition of anonymity. “One hundred percent, yes.”

“Is there a feeling of vulnerability?” asked one of the mayor’s closest allies, who spoke on the condition of anonymity. “One hundred percent, yes.”

Chapter I: ‘You Can’t Mess With Her’

<h2 class="wp-block-heading" id="h-chapter-i-you-can-t-mess-with-her">Chapter I: ‘You Can’t Mess With Her’</h2>

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<div class="quote-container">
“The reason she doesn’t go into that is because it’s not just her story. It’s her mother’s story. It’s her family’s story." 

 — Sheryl Davis, executive director of the San Francisco Human Rights Commission
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<div class="quote-container">
“The reason she doesn’t go into that is because it’s not just her story. It’s her mother’s story. It’s her family’s story.&#8221; 

 — Sheryl Davis, executive director of the San Francisco Human Rights Commission
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The mayor is fiercely protective about telling her family’s story—in part due to the tragedies she endured, but also because she herself doesn’t have all the answers.

The mayor is fiercely protective about telling her family’s story—in part due to the tragedies she endured, but also because she herself doesn’t have all the answers.

Breed’s mother was absent much of her childhood and their relationship is complicated. The mayor does not know the identity of her father. She recently took a DNA test and learned she is half Jewish, a discovery she revealed privately to a group traveling with her on a <a href="https://sf.gov/news/mayor-breed-lead-mission-strengthen-relations-san-franciscos-sister-city-haifa#:~:text=Haifa%20has%20been%20a%20sister%20city%20of%20San%20Francisco%20since%201973.">Sister City trip to Haifa, Israel</a>, in May.

Breed’s mother was absent much of her childhood and their relationship is complicated. The mayor does not know the identity of her father. She recently took a DNA test and learned she is half Jewish, a discovery she revealed privately to a group traveling with her on a <a href="https://sf.gov/news/mayor-breed-lead-mission-strengthen-relations-san-franciscos-sister-city-haifa#:~:text=Haifa%20has%20been%20a%20sister%20city%20of%20San%20Francisco%20since%201973.">Sister City trip to Haifa, Israel</a>, in May.

“I don’t want to talk about my family in a way that throws them under the bus,” Breed told The Standard in the second of two sit-down interviews for this story. “The fact is, I don’t know my biological father, and I’ve recently made a discovery that I have not made public in any way.”

“I don’t want to talk about my family in a way that throws them under the bus,” Breed told The Standard in the second of two sit-down interviews for this story. “The fact is, I don’t know my biological father, and I’ve recently made a discovery that I have not made public in any way.”

Breed was born at Kaiser Hospital in San Francisco on Aug. 11, 1974, and spent her earliest years living with her grandmother, siblings and two aunts in a cramped apartment in Plaza East, one of the city’s toughest public housing projects and the epicenter of a murderous turf war between rival gangs.

Breed was born at Kaiser Hospital in San Francisco on Aug. 11, 1974, and spent her earliest years living with her grandmother, siblings and two aunts in a cramped apartment in Plaza East, one of the city’s toughest public housing projects and the epicenter of a murderous turf war between rival gangs.

A booklet entitled “The New Western Addition Is a Good Place to Live” published in 1971, outlines new housing developments, apartments and public spaces as part of the larger Western Addition redevelopment project. London Breed was raised in the Western Addition’s Yerba Buena Plaza East housing project. | Courtesy San Francisco Redevelopment Agency

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/06/INLINED2_NEW_BreedProfile11142022.jpg" alt="A booklet published in 1971 outlines new housing developments in the Western Addition. London Breed was raised in the neighborhood's Plaza East public housing project. | Courtesy San Francisco Redevelopment Agency" class="wp-image-171138"/><figcaption class="wp-element-caption">A booklet published in 1971 outlines new housing developments in the Western Addition. London Breed was raised in the neighborhood&#8217;s Plaza East public housing project. | Courtesy San Francisco Redevelopment Agency</figcaption></figure>

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/06/INLINED2_NEW_BreedProfile11142022.jpg" alt="A booklet published in 1971 outlines new housing developments in the Western Addition. London Breed was raised in the neighborhood's Plaza East public housing project. | Courtesy San Francisco Redevelopment Agency" class="wp-image-171138"/><figcaption class="wp-element-caption">A booklet published in 1971 outlines new housing developments in the Western Addition. London Breed was raised in the neighborhood's Plaza East public housing project. | Courtesy San Francisco Redevelopment Agency</figcaption></figure>

<figure class="wp-block-image size-full"><img src="https://content.sfstandard.com/wp-content/uploads/2023/06/INLINED2_NEW_BreedProfile11142022.jpg" alt="A booklet published in 1971 outlines new housing developments in the Western Addition. London Breed was raised in the neighborhood's Plaza East public housing project. | Courtesy San Francisco Redevelopment Agency" class="wp-image-171138"/><figcaption class="wp-element-caption">A booklet published in 1971 outlines new housing developments in the Western Addition. London Breed was raised in the neighborhood&#8217;s Plaza East public housing project. | Courtesy San Francisco Redevelopment Agency</figcaption></figure>

“If you were not Black or didn&#8217;t live there, you could not come to these projects,” Breed said. “You had to say a name. There was a name that had to be used—otherwise, you couldn&#8217;t walk through there at all. You would get robbed. You would get beat up, everything.”

“If you were not Black or didn't live there, you could not come to these projects,” Breed said. “You had to say a name. There was a name that had to be used—otherwise, you couldn't walk through there at all. You would get robbed. You would get beat up, everything.”

“If you were not Black or didn&#8217;t live there, you could not come to these projects,” Breed said. “You had to say a name. There was a name that had to be used—otherwise, you couldn&#8217;t walk through there at all. You would get robbed. You would get beat up, everything.”

At 12 years old, Breed saw the corpse of a person who had been shot in the head. In her 20s, one of her brothers took part in a deadly robbery and was sentenced to prison. In 2006, Breed lost a younger sister to a drug overdose, and one of her cousins was killed by police. Over the years, officers were routinely called to help with one of Breed’s aunts, who suffered from mental illness and explosive fits of rage.

At 12 years old, Breed saw the corpse of a person who had been shot in the head. In her 20s, one of her brothers took part in a deadly robbery and was sentenced to prison. In 2006, Breed lost a younger sister to a drug overdose, and one of her cousins was killed by police. Over the years, officers were routinely called to help with one of Breed’s aunts, who suffered from mental illness and explosive fits of rage.

The kindness shown by these officers, including a cop whom Breed’s aunt lovingly nicknamed “Beefcakes,” shaped the mayor’s nuanced views on policing. As a supervisor, Breed called for a federal investigation into the <a href="https://www.sfweekly.com/archives/supervisor-london-breed-calls-for-a-federal-investigation-into-the-sfpds-shooting-death-of-mario/article_f8b7d433-ce35-5ddb-b5bb-d2fb8d563379.html" target="_blank" rel="noreferrer noopener">police killing of Mario Woods</a>; as mayor, she has advocated for a crackdown on people using drugs on the streets, expanding police surveillance tools and hiring more officers.

The kindness shown by these officers, including a cop whom Breed’s aunt lovingly nicknamed “Beefcakes,” shaped the mayor’s nuanced views on policing. As a supervisor, Breed called for a federal investigation into the <a href="https://www.sfweekly.com/archives/supervisor-london-breed-calls-for-a-federal-investigation-into-the-sfpds-shooting-death-of-mario/article_f8b7d433-ce35-5ddb-b5bb-d2fb8d563379.html" target="_blank" rel="noreferrer noopener">police killing of Mario Woods</a>; as mayor, she has advocated for a crackdown on people using drugs on the streets, expanding police surveillance tools and hiring more officers.

“Folks don’t realize that, by and large, Black people are pretty conservative when it comes to what public safety looks like,” said Sheryl Davis, the head of the city’s Human Rights Commission. “They’re not always against the police. They just don&#8217;t want the police to be brutalizing them.”

“Folks don’t realize that, by and large, Black people are pretty conservative when it comes to what public safety looks like,” said Sheryl Davis, the head of the city’s Human Rights Commission. “They’re not always against the police. They just don't want the police to be brutalizing them.”

“Folks don’t realize that, by and large, Black people are pretty conservative when it comes to what public safety looks like,” said Sheryl Davis, the head of the city’s Human Rights Commission. “They’re not always against the police. They just don&#8217;t want the police to be brutalizing them.”

Breed’s grandmother, Comelia Brown, was a Baptist faithful to the good book. Miss Brown—as she was known throughout the neighborhood—served as the family rock, the guiding light and the hammer that forged Breed into the person she is today.

Breed’s grandmother, Comelia Brown, was a Baptist faithful to the good book. Miss Brown—as she was known throughout the neighborhood—served as the family rock, the guiding light and the hammer that forged Breed into the person she is today.

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