The city says the item on Measure P funding allocation passed unanimously Monday night.
That means $8 million will be released to groups.
The "Labyrinth Art Collective" in the Tower District was one of 70 applicants approved for funds but were forced to wait after the process was appealed.
They took to social media to voice their concerns about the delay and thanked the community for their support ahead of and during Monday's hearing.
A 10-day appeal period has started for those who didn't get approved.