In a seven-to-four vote, the San Francisco Board of Supervisors passed Mayor Daniel Lurie's Family Zoning Plan.
Under state law, San Francisco and all local governments statewide are mandated to allow for the construction of additional housing units for mixed levels of income.
If local jurisdictions fail to comply, they could lose state funding.
Supervisors Connie Chan, Shamann Walton, Chyanne Chen, and Jackie Fielder voted 'no.' They argued that stronger protections for tenants are needed.
Mayor Daniel Lurie said the vote was an important step in giving families "an opportunity to buy a home where they can raise their kids."