In alignment with the citizen-led initiative San Diego voters passed in 2020, the City of San Diego is establishing a citizens advisory committee that will guide the Mayor and City Council on the use of tax revenue from hotel stays to help fund homelessness services.   

“This advisory committee is about accountability and delivering on what voters approved,” said Mayor Todd Gloria. “Measure C creates a dedicated, voter-mandated funding source to help reduce homelessness, and this step ensures those dollars are guided by expertise, transparency, and a clear focus on results for our city.” 

On Tuesday the San Diego City Council voted to establish the Homelessness Revenue Account Citizens Oversight Committee. The committee will serve as an official advisory body to the Mayor and City Council for how future Measure C funds are spent for homelessness services. Voters approved Measure C in 2020 to increase the City’s Transient Occupancy Tax (TOT) to boost funding for homelessness services, street repairs and convention center improvements. 

Through October 2030, 41% of this additional TOT revenue will be allocated to citywide efforts to address homelessness. This includes shelter programs, permanent supportive housing projects and other services. Starting in November 2030, the additional revenue would be split between funding convention center improvements (59%), programs to address homelessness (31%) and street repair/infrastructure projects (10%).   

Measure C increased the previous 10.5% TOT by establishing three tax zones with corresponding rates (11.75%, 12.75%, and 13.75%) related to the lodging facility’s proximity to the Convention Center. Properties within the zone closest to the Convention Center will be taxed at the highest percentage, and those furthest away will pay the lowest rate.  

The City started collecting the increased TOT in May 2025 after the measure was held up in litigation for five years. The measure is expected to generate $76.9 million in the current fiscal year (FY) 2026, and approximately $32 million has been incorporated into the FY2026 budget to support ongoing programs, which provide approximately 2,600 sheltering options for people experiencing homelessness in San Diego.  

The Homelessness Revenue Account Citizens Oversight Committee, as required in the ballot measure, will consist of seven volunteer members. A majority of members are required to have expertise in either government, municipal or public finance, nonprofit management, business, lived experience, philanthropic funding or related fields. A conflict-of-interest code will be adopted, and no member shall be an employee or representative of a for-profit or nonprofit who may seek an allocation of these funds.   

Committee members will be appointed by Mayor Todd Gloria and confirmed by the City Council. The committee will include three ex-officio members: the Independent Budget Analyst or designee, the Chief Financial Officer or designee, and the Director of the Homelessness Strategies and Solutions Department or designee. Applications to serve on the committee are expected to be open to the public next month. 

Also on Tuesday, the City Council approved a proposal from the Office of the City Treasurer to reset various dates and timelines, to account for the delays in qualifying for the ballot and adopting the measure. In crafting Measure C, the proponents set a presumed effective date of 2019, and Tuesday’s action served as a clarifying ordinance to reflect the actual date of imposition of the TOT increase.