OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Special Rules Committee Meeting - February 25, 2026: Empty Homes Tax Ballot Measure Advanced

Rules Committee — Wednesday, February 25, 2026
BodySan Diego, California
SessionRules Committee
DateWednesday, February 25, 2026
StatusFILED
Video Record
0:00 / 2:24:36

Transcript — Verbatim
1:54

All right, good morning.

1:56

And welcome to the special rules committee meeting of February 25th, 2026.

2:02

I am Joel Locava, Councilmember for District One and Chair of the Committee.

2:05

Our committees liaison Natalie Kessler will go over instruction for today's meeting.

2:10

Natalie.

2:11

While members of the public are able to attend the meetings in person, this meeting is being televised and live streamed on the city's website, and council administration will continue to make arrangements for the public to comment using the Zoom webinar platform.

2:21

Members of the public who wish to provide virtual testimony must enter the virtual queue before the virtual queue closes.

2:26

The queue will close when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever occurs first.

2:32

This will allow for better meeting management between the two platforms and ensure the committee is able to manage and conduct city business.

2:38

We appreciate the public's cooperation.

2:40

Chair.

2:41

Thank you, Natalie.

2:42

I will now call the special rules committee meeting of Wednesday, February 25th, 2026 to order and call the role.

2:49

Vice Chair, Council President Pro Tem Kent Lee.

2:52

Here.

2:52

Councilmember Raul Campio.

2:54

Here.

2:55

Councilmember Vivian Moreno.

2:56

Present.

2:57

Councilmember Shawnee La Rivera.

2:59

And I am present.

3:00

Also attending the meeting today, Jillian Andalina with the office of the independent budget analyst.

3:06

Kathy Steinman with the office of the city attorney.

3:08

Matt Yeagan with the office of Mayor Tagloria, and Abby Reuter, committee consultant.

3:13

Natalie, please continue with public comment instructions.

3:17

If you're in person, please complete a speaker slip located at the entrance of chambers and place it on top of the box indicated on the table at the front of the room.

3:24

Please do so in a timely manner to ensure proper meeting management.

3:27

In-person testimony will conclude before virtual testimony begins.

3:30

Members of the public can join the webinar by computer, tablet, or smartphone by accessing the link listed online in the preamble language of the agenda on the city's webpage.

3:38

If you need to participate by phone, please dial 1669-2545252.

3:42

The webinar ID is 16049-9420 pound.

3:46

This information is also available on the agenda and will appear on the screen during the public comment period for each agenda item.

3:51

Please note that if you are watching via City TV 24 or online, there may be a delay, so please participate via the audio on your phone and mute your TV or computer when it is your turn to speak.

4:20

Members of the committee are present.

4:22

We will now take up non-agenda public comment.

4:24

Council members respect and appreciate the public's input and are fully committed to protecting every participant's free speech rights at council and our committee meetings.

4:33

Natalie, please proceed with non-agenda public comment.

4:48

And if you need to dial by phone to call in for non-agenda public comment at this time, please dial 16692545252 with webinar ID 160439-9420 pound.

5:00

And Chair, we have not received any speaker slips here in chambers.

5:02

We'll move to the virtual queue.

5:03

And I've started that five-minute timer for those in the queue to indicate that they have non-agenda public comment.

5:08

We have eight hands raised.

5:10

We'll begin with Blair Beekman.

5:12

Please unmute and begin.

5:16

Hi, uh Blair Beekman.

5:23

I hope my Zoom will be okay if it cuts out.

5:26

I'm really sorry.

5:27

Um eight public speakers on Zoom.

5:30

That's kind of impressive.

5:32

Uh is that number rising because of the recent uh uh reporting uh that we have to have Zoom uh by July uh this upcoming.

5:41

Thank you for that mandate.

5:42

Thank you.

5:42

There is eight public speakers on Zoom.

5:45

Uh that's impressive.

5:46

Good luck in how that can be brought into the public meeting process in person as well.

5:51

I wanted to comment uh in relevant matters to the rules committee.

5:55

Uh uh to try to say it again.

5:57

I've been stating this past week that I I think it's important at that as we develop our our city narratives, um, that we have to be clear uh in the words of what Paul Kruger's been offering recently, and that it's my understanding that uh current Balboa park uh parking fees are not just going to Balboa park issues, but they're going into the general fund.

6:20

And that's not being made clear enough by city government staff.

6:23

I think we have to work together to make that clear, and that we have a narrative that's clear for all parts of the community to weigh in on and better judge and value and and and uh understand issues is really important to the process.

Discussion Breakdown — Share of Meeting
Housing████████████████████████████████████████40%
Affordable Housing████████████████████████24%
Public Engagement███████████11%
Public Comment███████7%
Procedural██████6%
Public Safety███3%
Homelessness███3%
Pending Litigation██2%
Technology and Innovation█1%
Summary of Proceedings

Special Rules Committee Meeting - February 25, 2026

On February 25, 2026, the San Diego City Council's Rules Committee held a special meeting to discuss and vote on a proposed empty homes tax ballot measure for the June 2, 2026 municipal election. The committee heard extensive public testimony, reviewed a revised proposal from Councilmember Sean Elo Rivera, received a fiscal impact analysis from the Independent Budget Analyst (IBA), and ultimately voted 5-0 to advance the measure to the full City Council.

Public Comments & Testimony

  • Non-agenda public comment (8 speakers): Speakers raised concerns about transparency, Balboa Park parking fees, tobacco policies, marijuana tax collection, flood victim relief, and general distrust of city government. Several called for clearer communication and accountability.
  • Item 1 public comment: 33 in-person speakers and 21 virtual speakers testified.
    • Supporters: Included representatives from homelessness service providers (PAF, YMCA), housing advocacy groups (San Diego Housing Federation, Alliance San Diego, Youth Will), labor unions (Labor Council, Firefighters Local 145, SEIU), the San Diego Education Association, and many individual residents. They argued that the tax would incentivize vacant second homes to be rented or sold, increasing housing supply, generating general fund revenue, and helping address the housing crisis and budget deficit. Several speakers highlighted personal struggles affording housing and the impact of empty homes on communities.
    • Opponents: Included property owners, realtor associations (Pacific Southwest Association of Realtors), and some residents. They raised legal concerns about constitutionality (citing San Francisco's overturned tax), property rights, privacy, unintended consequences (e.g., tax burden passed to renters), and questioned the effectiveness of the tax in improving affordability. Some argued the city should focus on spending cuts and other housing strategies.

Discussion Items

Item 1: Consideration of an Empty Home Tax Ballot Measure (Councilmember Sean Elo Rivera)

Councilmember Elo Rivera presented a revised proposal targeting homes vacant for more than 182 days per year that are not primary residences, long-term rentals, or licensed short-term rentals (tiers 3 and 4). Key elements:

  • Tax rate: $8,000 per empty home in 2027, increasing to $10,000 in 2028.
  • Corporate surcharge: additional $4,000 in 2027, $5,000 in 2028.
  • Exemptions for disaster, family residence, lease periods, military service, etc.
  • An exemption for owner-occupied properties with 4 or fewer units.
  • Revenue estimated to support general city services and potentially increase housing availability.

The IBA (Noah Fleischmann) presented a fiscal impact analysis projecting net revenue of $12.1M–$23.5M in year one and $15.3M–$30M in year two, based on benchmarking from Berkeley, Oakland, D.C., and Vancouver, with 45–65% unit exclusion rates. The analysis noted uncertainty due to data accuracy (using rental unit business tax exemptions as a proxy) and potential behavioral changes.

Committee discussion included:

  • Councilmember Elo Rivera clarified that the measure would not compel renting or violate the Ellis Act; it simply taxes prolonged vacancy.
  • Council President Pro Tem Lee proposed an amendment adding a “newly built housing” exemption for up to two years after certificate of occupancy, which was accepted.
  • Councilmember Campillo expressed support but requested a legal memorandum from the City Attorney detailing strengths and weaknesses in defending against constitutional and Ellis Act challenges, citing the San Francisco case.
  • Councilmember Moreno supported the measure as a targeted tool to bring empty homes into the market.
  • Chair Locava noted that revenue would likely not be realized until FY29 but emphasized the importance of long-term action.

Key Outcomes

  • The committee voted unanimously (5-0) to forward the empty homes tax ballot measure to the full City Council, as amended by Council President Pro Tem Lee.
  • The motion directs the City Attorney to prepare a ballot title, summary, impartial analysis, and a legal memorandum addressing legal vulnerabilities.
  • The IBA and City Auditor will further refine the fiscal impact statement before the measure goes to the Council.
  • The full Council is expected to consider the measure for placement on the June 2, 2026 ballot, consolidated with the state primary election.

Next Steps

The measure will be considered by the full City Council at a subsequent meeting. If approved, it will appear on the June 2, 2026 ballot for voter decision.

Meeting Transcript

All right, good morning. And welcome to the special rules committee meeting of February 25th, 2026. I am Joel Locava, Councilmember for District One and Chair of the Committee. Our committees liaison Natalie Kessler will go over instruction for today's meeting. Natalie. While members of the public are able to attend the meetings in person, this meeting is being televised and live streamed on the city's website, and council administration will continue to make arrangements for the public to comment using the Zoom webinar platform. Members of the public who wish to provide virtual testimony must enter the virtual queue before the virtual queue closes. The queue will close when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever occurs first. This will allow for better meeting management between the two platforms and ensure the committee is able to manage and conduct city business. We appreciate the public's cooperation. Chair. Thank you, Natalie. I will now call the special rules committee meeting of Wednesday, February 25th, 2026 to order and call the role. Vice Chair, Council President Pro Tem Kent Lee. Here. Councilmember Raul Campio. Here. Councilmember Vivian Moreno. Present. Councilmember Shawnee La Rivera. And I am present. Also attending the meeting today, Jillian Andalina with the office of the independent budget analyst. Kathy Steinman with the office of the city attorney. Matt Yeagan with the office of Mayor Tagloria, and Abby Reuter, committee consultant. Natalie, please continue with public comment instructions. If you're in person, please complete a speaker slip located at the entrance of chambers and place it on top of the box indicated on the table at the front of the room. Please do so in a timely manner to ensure proper meeting management. In-person testimony will conclude before virtual testimony begins. Members of the public can join the webinar by computer, tablet, or smartphone by accessing the link listed online in the preamble language of the agenda on the city's webpage. If you need to participate by phone, please dial 1669-2545252. The webinar ID is 16049-9420 pound. This information is also available on the agenda and will appear on the screen during the public comment period for each agenda item. Please note that if you are watching via City TV 24 or online, there may be a delay, so please participate via the audio on your phone and mute your TV or computer when it is your turn to speak. Members of the committee are present. We will now take up non-agenda public comment. Council members respect and appreciate the public's input and are fully committed to protecting every participant's free speech rights at council and our committee meetings. Natalie, please proceed with non-agenda public comment. And if you need to dial by phone to call in for non-agenda public comment at this time, please dial 16692545252 with webinar ID 160439-9420 pound. And Chair, we have not received any speaker slips here in chambers. We'll move to the virtual queue. And I've started that five-minute timer for those in the queue to indicate that they have non-agenda public comment. We have eight hands raised. We'll begin with Blair Beekman. Please unmute and begin. Hi, uh Blair Beekman. I hope my Zoom will be okay if it cuts out. I'm really sorry. Um eight public speakers on Zoom. That's kind of impressive. Uh is that number rising because of the recent uh uh reporting uh that we have to have Zoom uh by July uh this upcoming.

SUMMARIZED BY OPENPUBLICA AI
TRANSCRIPT VIA PUBLIC VIDEO
openpublica.com