FY24 Annual Report Released
OCOH Fund Background
In November 2018, San Francisco voters approved Proposition C, which imposed additional business taxes to create a dedicated fund - the Our City, Our Home (OCOH) Fund - to support services for people experiencing homelessness and to prevent homelessness.
The City and County of San Francisco (City) began collecting tax revenue for the Fund during 2018. The Board of Supervisors established the OCOH Oversight Committee Our City, Our Home (OCOH) Oversight Committee (“the Committee) in 2019, which held its first meeting in September 2020. The Committee makes annual budget recommendations to the Mayor, the Board of Supervisors, the Homelessness Oversight Commission, and the Health Commission. The Committee’s recommendations help ensure the City uses the Fund in ways that are consistent with the intent of the voters.
The following City departments receive allocations from the Fund to deliver services:
- Department of Homelessness and Supportive Housing (HSH)
- Department of Public Health (DPH)
- Mayor’s Office of Housing and Community Development (MOHCD)
- Office of Economic and Workforce Development (OEWD)
- Adult Probation Department (APD)
- San Francisco Fire Department (SFFD)
- Treasurer and Tax Collector (TTX)
The Controller’s Office is responsible for the administration and staffing the OCOH Oversight Committee. Per the OCOH Fund legislation, the Controller’s Office must report to the Board of Supervisors annually on the revenue and expenditures of the OCOH Fund. Each Annual Report describes how the City budgeted and expended the OCOH Fund over the lifetime of the Fund, with a focus on expenditures for the most recent fiscal year.
The OCOH Annual Report also includes information about the impact of the OCOH Fund on the overall City’s Homelessness Response System and on people at risk of or experiencing homelessness. Where available, the report shares data about service capacity added to the system, as well as capacity sustained by the Fund over time. The information is presented for the total number of households (or clients) served in programs each year, demographics of those households served, and household outcomes. The report shares this detail for each of the four service areas, where data are available.
This page provides background information about the OCOH Fund to help readers understand details and context within each Annual Report. Review each OCOH Fund Annual Report for more details about the uses and impact of the OCOH Fund:
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Service Areas
The ballot measure approved by voters designated specific uses for the OCOH Fund, including designating four service areas with specific portions of the Fund allocated to each.
- At least 50% of the Fund must be appropriated for Permanent Housing. Within this service area, the Fund further specifies the following uses:
- 55% for General Housing (referred to within the Annual Report as Adult Housing)
- 25% for Family Housing
- 20% for Youth Housing
- At least 25% of the Fund must be appropriated for Mental Health services.
- Up to 15% of the Fund can be appropriated for Homelessness Prevention services.
- Up to 10% can be appropriated for Shelter and Hygiene services.
Up to 3% of the Fund may be used on administration of the tax, oversight of expenditures, and support for the Oversight Committee. The Controller’s Office, Treasurer and Tax Collector, and City Attorney’s Office provide these administration services.
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OCOH Fund Revenue, Budget, and Expenditures
The OCOH Fund is a continuing fund. Appropriations in one year automatically carry forward into the subsequent fiscal year, unless the Mayor and the Board of Supervisors approve changes. Informed by the OCOH Oversight Committee’s recommendations, City departments have developed multi-year spending plans that account for funding budgeted across several years.
Annual appropriations for each service area generally reflect the proportions required under law. In some years, the Mayor and Board of Supervisors have approved legislation as part of the City’s annual budget process to adjust the OCOH Fund proportions for a time-limited period, such as by appropriating more than 10% of the Fund to the Shelter and Hygiene service area in a year.
The OCOH Fund’s sole source of funding is the Homelessness Gross Receipts tax, which has imposed a tax on businesses with gross receipts of more than $50 million until November 2024. The tax is dependent in part on San Francisco payroll and businesses only include payroll for employees that physically work within San Francisco. Tax revenue from this source has been affected by employees who previously commuted into San Francisco but now work from home outside of San Francisco. The Homelessness Gross Receipts tax base has been much narrower than the General Fund business tax base because only the largest businesses in San Francisco have paid this tax. These factors have made the revenue generated by this tax highly volatile. As of the most recent election on November 5, 2024, San Francisco voters passed Proposition M, which restructures the City’s taxes, including the Homelessness Gross Receipts Tax. The restructuring includes broadening the tax base to reduce the volatility of the funding needed to operate the programs described in this Annual Report. Any changes will be reflected in future OCOH Fund reporting.
Each year, the Controller’s Office provides revenue projections as part of the budget process and provides an account of actual revenues received at year-end. In multiple years, year-end revenues were lower than projected, and this has resulted in using expenditure savings to shore up the reduced revenue amounts. The Annual Report reflects revised budgeted amounts that incorporate those changes. Given historical volatility in this Fund, ongoing investments must be carefully planned to align to available revenue and ensure spending does not create structural deficits in future years.
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Additional Resources
View the OCOH Fund Annual Report Glossary of Terms
Learn more about the OCOH Fund Oversight Committee
View past reports:
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