San Francisco officials are advancing a sweeping proposal aimed at improving access to affordable groceries while encouraging investment in neighborhoods that have lost essential food retailers. Known as the Affordable Groceries Act, the legislative package combines financial incentives, land-use reforms, and taxes on long-vacant grocery properties in an effort to strengthen the city’s food system.
The proposal reflects years of discussion over how local governments can respond to rising food costs and the disappearance of neighborhood supermarkets. Rather than focusing solely on consumer subsidies, city leaders are looking at policies that encourage grocery operators to remain in underserved communities and attract new investment.
Recommendations Years in the Making
The legislation builds on recommendations developed by the San Francisco Food Security Task Force, a city advisory body that studies food insecurity and develops strategies to improve equitable access to healthy food. The task force has long identified neighborhood grocery access as a growing concern, particularly in communities where supermarket closures have left residents with few nearby options.
Supervisor Bilal Mahmood, who introduced the package, said the legislation is intended to address structural challenges that make it difficult for affordable grocery stores to succeed while giving communities additional tools to maintain reliable food access.
Several organizations focused on food justice and community development, including Farming Hope, the Food and Agriculture Action Coalition Toward Sovereignty (FAACTS), and the Tenderloin Community Benefit District, have expressed support for various elements of the proposal.
Establishing an Affordable Grocery Fund
A cornerstone of the legislation is the creation of an Affordable Grocery Fund designed to finance projects that improve neighborhood food access. Rather than operating city-owned grocery stores, the fund would provide resources to nonprofits, independent grocery operators, and community organizations seeking to open or expand stores offering fresh produce and everyday essentials.
The funding could also help transform existing retail spaces into full-service neighborhood markets, particularly in areas currently considered food deserts. Revenue would come from philanthropic contributions and, if approved, proceeds generated by a new vacancy tax.
Addressing Vacant Grocery Buildings
Another major provision targets large grocery and pharmacy buildings that remain vacant after retailers leave.
Under the proposal, qualifying properties would be subject to an escalating vacancy tax if they remain unused for extended periods. The measure is intended to encourage property owners to either lease the space to another grocery operator or redevelop the site rather than allowing it to sit empty for years.
Properties undergoing active redevelopment or conversion into housing or another grocery or pharmacy would be exempt from the tax.
Simplifying the Path for New Stores
The Affordable Groceries Act also seeks to remove administrative barriers that can delay new grocery stores and pharmacies. By streamlining portions of the permitting process, supporters hope to reduce costs and make it easier for businesses to establish locations in neighborhoods with limited food access.
The proposal represents a broader shift toward using local policy to strengthen food infrastructure instead of relying exclusively on emergency food assistance programs.
Next Steps
The Board of Supervisors will consider the legislative package in the coming months. If approved, key components, including the Affordable Grocery Fund and vacancy tax, would advance to San Francisco voters as ballot measures.
With food affordability remaining a challenge for many households, supporters believe the proposal offers a long-term strategy for improving neighborhood access while encouraging private investment. Whether voters ultimately endorse the measures, the legislation highlights the growing role cities are playing in shaping local food systems and addressing the economic factors behind food insecurity.
