A proposal recently introduced by SF Supervisor Mahmood and Mayor Lurie, which was put on hold, would have cut transfer tax rates in half on property sales of $10 million or more, returning them to pre-2020 levels before voters approved Proposition I.

San Francisco Supervisor Bilal Mahmood and Mayor Daniel Lurie have set aside their new BUILD Act proposal for now, citing the city's ongoing budget crisis and the need to identify replacement revenue before moving forward, as Mission Local Reports. The plan, unveiled in February, was pitched as a way to spur housing development and construction jobs, but it drew criticism because it would have extended tax breaks to high-value property sales regardless of whether they produced new housing.

Mission Local reported last week that Mahmood had pledged not to move forward with the proposal unless it could be made revenue-neutral. He said he was exploring ways to restructure the plan, including potential changes that would more directly tie any tax incentives to housing production and union construction jobs, rather than extending tax breaks to high-value property sales that produce no new development.

A March report from the Controller’s Office reportedly estimated that maintaining the current transfer tax rates approved by voters under Proposition I could generate roughly $400 million for the city’s general fund over the next several years, as San Francisco contends with a major budget deficit and cuts to services. Per Mission Local, the proposal was also tied to a planned November ballot measure that would expand the transfer tax to some transactions that are currently exempt, including certain foreclosures, though Mahmood declined to say whether that effort is still moving forward.

Mahmood also points to other housing initiatives that have advanced since February, including a proposal from Supervisor Myrna Melgar and Mayor Lurie to double the city’s Housing Trust Fund, as SFist reported last month. Melgar’s measure would also allow the fund to support revenue bonds and other financing tools for affordable housing projects.

It's unclear when, or if, the BUILD Act proposal will be reintroduced.

Related: SF Mayor, Supervisors Announce Proposal to Double Funding For Affordable Housing

Image: Bilal Mahmood/Facebook