Jay Cheng is stepping down as the executive director for Neighbors for a Better San Francisco, one of the wealthiest and highest-spending groups in city politics.
Cheng, who co-founded the group, did not provide an explanation for stepping down in an email he sent to professional contacts on Thursday.
“While I may be stepping down from this role, I remain deeply committed to the work of advancing pragmatic, centrist, and results-oriented politics that can help our cities thrive,” Cheng wrote.
Neighbors, which was founded in 2021 and got its start bankrolling the recall of progressive District Attorney Chesa Boudin, has raised millions from wealthy donors and used the money to promote “moderate” causes in San Francisco.
It was one of the top spenders in the 2024 mayor’s race and backed Mark Farrell, but it has found itself ostracized in the Daniel Lurie era.
The mayor pledged not to work with Cheng and labeled him persona non-grata, sources close to the mayor told Mission Local after Lurie won his election. Lurie has made up with other former rivals, like billionaire Michael Moritz and Chris Larsen, who backed his 2024 opponents, but has not warmed to Neighbors.
In his time at City Hall, Lurie has not associated himself with the group or its billionaire backer, William Oberndorf, with whom he clashed during the 2024 race.
Neighbors was hit with a $54,000 ethics fine in 2024 related to its conduct during the Boudin recall.
Neighbors has been spending lavishly this election cycle. So far, it has paid out over $300,000 to defeat the “Overpaid CEO” tax, a business tax proposal by the city’s labor unions. That includes spending in favor of Prop. C, a competing business tax cut that will join the CEO tax on the June ballot.
Even though Neighbors’ causes did not fare well in 2024 — Farrell came in fourth place, Neighbors’ charter-reform measure to give the mayor more power failed, and only two of its six candidates for the Board of Supervisors were elected — Cheng and others say Neighbors helped seed the ground for the city’s moderate turn.
“When we began this work in 2020, many people had lost faith in San Francisco,” Cheng wrote in today’s email. “Neighbors helped bring new energy, new accountability, and new leadership to city politics at a moment when San Francisco urgently needed it.”
It is unclear what will happen to the group; Cheng said Rob Aiavao, who used to work for TogetherSF, would be best placed to answer for “what comes next.”
TogetherSF, which was led by Cheng’s wife, Kanishka Cheng, effectively folded after a disastrous showing in the 2024 race; in January 2025, it merged with Neighbors.
Cheng also works on government affairs for the San Francisco Association of Realtors, where he will remain. He was the subject of controversy after allegations that he sexually assaulted his ex-girlfriend while a student at UC Irvine in 2010 resurfaced in 2024.
Cheng has denied the allegations, pointing out that, despite an investigation by the Irvine Police Department and the Orange County district attorney, he was never charged or sued.
In an email written at the time, Chen apologized for “sexually assaulting” her, but subsequently said that he was pressured into writing it.