After years of stirring controversy and wielding influence in San Francisco politics, the leader of a powerful moderate policy group is stepping down.

Jay Cheng said Thursday that he is exiting as executive director of Neighbors for a Better San Francisco — or “Neighbors,” as it’s known in political circles.

“It has been one of the greatest honors of my life to help build and lead this organization,” Cheng said in a statement. “I remain deeply committed to advancing pragmatic, centrist, and results-oriented politics that can help our cities thrive.”

Since its founding in 2020, Neighbors has been one of the best-funded and most influential pressure groups in local politics. Its donors include conservative hedge fund billionaire William Oberndorf and venture capitalist Steven Merrill.

Cheng, long seen as one of the city’s most active and aggressive political operatives, joined the organization in 2020 and helped lead some of its highest-profile efforts, including the recalls of three San Francisco school board members and District Attorney Chesa Boudin in 2022. Neighbors spent about $3 million in 2020, $12 million in 2022, and $10 million in 2024 to back moderate candidates and ballot measures.

It was also a magnet for controversy. In the 2024 mayoral race, Neighbors endorsed Daniel Lurie, a newcomer to politics, as well as former mayor Mark Farrell, ranking incumbent London Breed third. However, Cheng and his wife, Kanishka Cheng, the head of another moderate political group, Together SF, faced criticism for being too close to Farrell’s campaign, including helping to vet and hire staffers. Neighbors was fined for violations during the Boudin recall, and past allegations of sexual assault against Cheng resurfaced amid the 2024 election.

After Farrell’s defeat, Together SF disbanded and folded into Neighbors, which rebranded as Blueprint. Together SF was backed by Michael Moritz, chairman of The Standard.

Lurie, following his election as mayor, distanced himself from Cheng.

Other moderate groups have emerged since the pandemic, including GrowSF.

Former Together SF staffer Rob Aiavao will serve as interim leader of Neighbors, according to Cheng. Blueprint’s operations will also continue.

Cheng said he plans to spend more time with his family and two children. He will remain in his day job as a government liaison for the San Francisco Association of Realtors. 

“I have every confidence that Neighbors will continue to play a major role in shaping the future of San Francisco and advancing the values that brought us together in the first place,” he said.