Peter Belden (Sierra Club) and Noerena Limon (Casita Coalition)
On July 23rd, our HAC ED Committee welcomed Peter Lawrence of Novogradac and Elisa Rodriguez Furey of the San Francisco Public Utilities Commission (SFPUC) for a discussion that spanned from sweeping national tax policy to local public power activism. Each presentation touched on crucial levers of affordability—federal incentives that shape affordable housing financing and the fight to reclaim control over San Francisco’s electric grid.
Peter Lawrence – Novogradac & Company LLP
Peter offered a detailed overview of recent developments in federal housing tax policy, specifically the new budget reconciliation bill and its implications for the Low-Income Housing Tax Credit (LIHTC) program.
Key Takeaways:
Historic Expansion of LIHTC: The bill proposes a permanent 12% increase to the 9% LIHTC allocation and lowers the bond financing “50% test” to 25%. Novogradac estimates this could result in 122,000 additional affordable homes between 2026–2035.
Broader Tax Provisions:
Permanent extensions of the Opportunity Zones and New Market Tax Credits (though without some adjustments advocates had hoped for).
Clean energy incentives through Sections 45L and 48E.
100% bonus depreciation reinstated starting Jan 2025.
A new $40,000 SALT deduction cap for households earning under $500k (2026–2029).
Mortgage interest deduction and insurance deduction extensions.
What’s Missing:
No action yet on the Historic Tax Credit, Neighborhood Homes Credit, Workforce Housing Credit, or a proposed $15B conversion fund for turning commercial buildings into affordable housing.
While Democrats hope for two more reconciliation bills, Peter emphasized that neither a bipartisan tax package nor a strong legislative push seems likely this year—making this bill’s inclusion of housing provisions a notable win.
Appropriations Outlook:
The FY 2026 HUD budget remains uncertain. No topline spending agreement exists yet, and while House markups are scheduled this month, the Senate timeline is unclear.
Helpful links:
Elisa Rodriguez Furey – SFPUC
Elisa presented SFPUC’s Our City, Our Power campaign—an ambitious push for San Francisco to acquire and control the local electric grid currently owned by PG&E. The goal: public power that’s clean, affordable, and reliable.
Why This Matters:
PG&E’s Grid Control: SFPUC already delivers 75% of San Francisco’s electricity through Hetch Hetchy Power and CleanPowerSF, yet PG&E maintains grid access control—delaying projects and inflating costs.
178 Projects Delayed: Since 2018, PG&E has obstructed dozens of public projects—some delayed over a year—due to unreasonable demands like requiring excessive infrastructure for minor needs.
$69 Million in Added Costs: These delays have cost the city tens of millions, draining funds from critical services and contributing to rising electric rates for residents and developers.
The Path Forward:
SF is negotiating with PG&E to purchase the grid. Offers have been rejected repeatedly, with PG&E claiming the city’s bids are too low.
The California Public Utilities Commission (CPUC) has now stepped in to oversee asset valuation, a process expected to stretch into 2026.
If negotiations fail, SF retains the right to pursue eminent domain, but SFPUC prefers a negotiated solution.
How Will It Be Paid For?
Through long-term revenue bonds, not general fund or tax dollars.
Operating costs would be reduced by cutting out PG&E’s profits and overhead.
Get Involved:
Endorse the campaign
Invite SFPUC to present at your org
Call your elected officials
Visit publicpowersf.org/takeaction and follow @publicpowersf.
Final Thoughts
From Capitol Hill to City Hall, this month’s RegComm spotlighted how deeply utility access, tax incentives, and regulatory coordination shape our housing ecosystem. We’re grateful to Peter and Elisa for their insights and to our members for bringing sharp questions and curiosity to the conversation.
Stay tuned for more updates as we continue advancing the systems-level solutions that affordable housing demands.
