Politics
San Francisco Voters Approve Public Bank Measure, Reject Affordable Housing Fund
Proposition B, creating a framework for a city-owned bank, passed with 52.3% of the vote, while Proposition I, which would have directed transfer tax revenue to affordable housing, failed. The split outcome marks a win for Supervisor Jackie Fielder's long-standing public bank campaign but a setback for housing advocates.
San Francisco voters delivered a split verdict on two progressive ballot measures this election, approving a plan to create a city-owned public bank while rejecting a proposal to funnel high-end real estate transfer tax revenue into affordable housing.
Proposition B, which authorizes the creation of a San Francisco Public Bank, passed with 52.3% of the voteâ164,430 yes to 149,904 noâaccording to results updated Thursday. The measure trailed on election night but pulled ahead as late mail-in ballots were counted, and its lead widened with each subsequent update.
The win is a milestone for District 9 Supervisor Jackie Fielder, who founded the SF Public Bank Coalition as an activist in 2017 and has championed the idea for years. The measure establishes a framework for a city-owned "municipal finance corporation" that can make loans but cannot take deposits. After three to five years of turning a profit, the entity could apply to become a full public bank.
If approved by state and federal regulators, San Francisco would become the first city in the United States to operate a public bank. North Dakota already runs a state-owned bank, and a Berkeley measure to fund a regional public bank appeared headed for defeat.
Proposition I, which would have directed revenue from the city's high-end transfer tax to affordable housing, was rejected by voters. The measure's failure leaves a gap in funding for housing programs that advocates had hoped to shore up with the transfer tax proceeds.
The divergent outcomes reflect the complexities of San Francisco's progressive coalition, which united behind the public bank but split on the housing fund. While the public bank measure garnered enough late support to pass, the housing measure could not overcome opposition.
Supporters of the public bank argue it will allow the city to invest in local prioritiesâsuch as affordable housing, small businesses, and renewable energyâwithout relying on Wall Street banks. Critics have raised concerns about financial risk and the city's capacity to run a lending institution.
The measure's passage sets the stage for a multi-year process to establish the municipal finance corporation, secure regulatory approvals, and demonstrate profitability before any full public bank can be chartered. For Fielder and the coalition, the vote is a validation of a seven-year organizing effort that began at the grassroots level.
With the housing fund's defeat, however, progressive leaders will need to find alternative revenue sources to address the city's affordable housing crisis, a pressing issue that remains unresolved.