SF Board upholds North Beach merger denial (+ 3-unit compromise fails)

San Francisco
Board of Supervisors Meeting
April 7, 2026

TL;DR

• The Board upheld the Planning Commission's denial of a North Beach homeowners' appeal to legalize an illegal four-to-one unit merger at 524-526 Vallejo Street; a compromise to allow three units instead failed on a 5-5 vote.
• The Board approved a 158-unit, 100% affordable housing project at 105 Wisteria Lane on the former Balboa Reservoir site, with a 75-year ground lease at $15,000 annual rent and up to $112.71 million in housing revenue notes.
• $34.36 million was shifted from regular salaries to overtime in the Police Department's FY2025-26 budget.
• A police surveillance policy for electronic location tracking devices was approved on a 9-1 vote, with Supervisor Walton voting against.
• Four Department of Public Health health access point contracts were extended through June 2030, adding roughly $42.5 million combined to nonprofits serving residents citywide.

What happened

1. North Beach unit-merger appeal denied; 3-unit compromise fails 5-5
   1. The Board upheld the Planning Commission's de facto denial of a conditional use authorization at 524-526 Vallejo Street and 4-4A San Antonio Place. The unanimous 10-0 vote leaves the homeowners required to restore four units in a building that has functioned as a single-family home since at least 2016. Supervisor Sauter, who represents the district, proposed amending the findings to signal openness to a future three-unit application, but that motion failed 5-5 (Ayes: Dorsey, Mahmood, Sauter, Sherrill, Wong; Noes: Chan, Chen, Mandelman, Melgar, Walton). The Planning Commission tied 3-3 in December, which sent the case to the Board. The Planning Department's position rests on building permit plans, two 3R reports, multiple Department of Building Inspection and Fire Department inspections, Assessor-Recorder data, and written statements from two former long-term tenants confirming the building operated as a four-unit rent-controlled property for over 30 years. The current homeowners, who bought the home in 2021, argued the four-unit permit issued in 2013 to a prior developer was never properly processed and that the lot is undersized for four units under current density rules.
   2. What this means for you: The decision keeps two rent-controlled units on the city's housing record and signals the Board's reluctance to legalize illegal unit mergers after the fact, even when the current owners weren't the ones who did the merging. The Department of Building Inspection has issued a notice of violation and is investigating internally how a 2016 certificate of final completion was issued for four units while the home was listed for sale as single-family weeks later.
2. 158-unit affordable housing project approved at Balboa Reservoir
   1. The Board approved a 75-year ground lease (with a 24-year extension option) for 105 Wisteria Lane on the former Balboa Reservoir site, with developer Balboa Gateway, L.P. paying $15,000 in annual base rent. The project will be a 100% affordable, 158-unit multifamily rental development for very-low and low-income households, plus one manager's unit. The Board also approved a city loan of up to $29.28 million for a minimum 57-year term, and authorized a multifamily housing revenue note of up to $112.71 million to finance construction.
   2. What this means for you: This is one of the larger affordable housing approvals of the year, with all 158 units reserved for households at very-low and low-income levels.
3. Police Department shifts $34.36 million to overtime
   1. The Board approved a de-appropriation of $34,366,405 from permanent, premium, and comp time salaries in the Police Department, re-appropriating the same amount to overtime salaries for the rest of fiscal year 2025-26.
   2. What this means for you: SFPD will close out the fiscal year with most of its remaining salary budget covering overtime rather than regular pay. The shift is required under Administrative Code Section 3.17 when overtime spending outpaces budget.
4. Police surveillance policy for location tracking devices approved 9-1
   1. The Board approved the Police Department's surveillance technology policy for electronic location tracking devices. Supervisor Walton voted against.
   2. What this means for you: The policy governs how SFPD deploys location tracking devices and the oversight that applies, under the city's surveillance technology ordinance.
5. Four nonprofit health contracts extended through 2030, adding $42.5 million
   1. The Board approved amendments to four Department of Public Health agreements that operate "health access points" across the city: San Francisco AIDS Foundation (+$11.95 million, new total $21.89 million), Rafiki Coalition for Health & Wellness (+$10.67 million, new total $20.08 million), Instituto Familiar de la Raza (+$9.24 million, new total $17.09 million), and a separate retroactive contract with the San Francisco-Marin Food Bank for $9.1 million covering the two-month CalFresh stopgap emergency gift card program.
   2. What this means for you: These nonprofits provide health services and food assistance directly to residents. The contracts now run through June 30, 2030, locking in service continuity for three more years.

What residents brought up

• A representative of the SF Tenants Union and speakers from the Housing Rights Committee, the SF Anti-Displacement Coalition, and the Affordable Housing Alliance urged the Board to deny the Vallejo Street appeal, arguing the building was a legal four-unit rent-controlled property and that legalizing the merger would set a precedent encouraging future illegal demolitions of rent-controlled housing. Speakers pointed to four separate street addresses, four electrical meters, and 3R reports identifying the building as four units.
• A North Beach resident spoke against the appeal, saying she has seen 13 evictions across her family in the neighborhood in recent years and that approving the merger would embolden developers and realtors who profit from displacing tenants.
• A representative of Chinatown Community Center said his organization is currently counseling tenants in a building where owners are planning to merge units, and approving the Vallejo appeal would signal to other landlords that they can do the same and pass the cost on to a future buyer.

Also happened

• The Board approved a Mayor's Office for Victims' Rights waiver allowing the director to solicit donations for survivor-victims of crime for six months, notwithstanding the Behested Payment Ordinance.
• A resolution urging the Mayor to issue an executive directive establishing a Citywide Women's Advancement and Gender Equity Action Plan, led by the SF Department on the Status of Women, was approved.
• The Behavioral Health Services Act Annual Update for FY2025-26 was adopted.
• SFO's contract with Hallmark Aviation Services for airport information and guest assistance was extended one year through June 30, 2027, with a $10.4 million increase bringing the total to $30.4 million.
• A contract amendment with Sapient Corporation for the Assessor-Recorder's property assessment system replacement project was continued one week to April 14 at Supervisor Chan's request, pending verification of approximately $15 million in staffing reimbursements from the contractor.
• April 2026 was recognized as American Muslim Appreciation and Awareness Month, and April 7 as La Casa de las Madres Day in recognition of the organization's 50th anniversary.

For any updates or corrections, please email steven@polisdesk.com