Citywide Affordable Housing Loan Committee Meeting

This request is to update the MOHCD’s Commercial Space Underwriting Guidelines (Effective February 2, 2018) to: re-organize document to clarify and to improve legibility of intent and expedite applications for funding, conform with changes to the recently published Underwriting Guidelines, and reflect the City’s racial equity goals.

This request is to update the MOHCD’s Ground Lease Policy (Effective August 21, 2015) to: re-organize the document to clarify and to improve legibility of intent and expedite applications for funding, correspond with changes to the recently published Underwriting Guidelines (Effective November 2022), and reflect the City’s racial equity goals.

Affordable housing projects funded by the Mayor’s Office of Housing and Community Development (MOHCD) are experiencing higher than anticipated construction costs and extensive schedule delays due to the design and delivery of permanent electrical power. Delays and cost increases are affecting nearly every project in the MOHCD pipeline, including recently completed projects, projects under construction, and projects in pre-development. MOHCD staff analysis shows at least nine projects are experiencing delays and overruns of approximately $41M combined. The two projects below represent the first MOHCD pipeline projects implicated by delays and costs overruns, that need City support to deliver the housing units. MOHCD has a fiscal and operational obligation to deliver housing units presently.  Mayor Breed’s Housing For All Mayoral Directive 23-01, dated February 7, 2023, calls out the requirement for better interagency coordination and cost reduction.

· 555 Larkin (formerly known as 500 Turk) is seeking $4,226,311 of additional financing to offset costs associated with PG&E infrastructure that was required after construction start, as well as costs related to the approximately 10-month delay in obtaining permanent power to the Project, resulting in delays to tenant lease up and permanent financing conversion.

· 4840 Mission Street (aka Islais Place) is expecting a 6-month delay to completion and lease up, with the new completion date estimated to be December 2023. The Project is seeking $8,977,307 of additional financing to offset costs associated with PG&E infrastructure required after construction start and costs related to delays of completion.

Tenderloin Neighborhood Development Corporation (TNDC)-555 Larkin

BRIDGE Housing Corporation (BRIDGE)-4840 Mission

Related Companies of California and Mercy Housing California request final gap financing approval in the amount of up to $28,174,840 for the fourth Sunnydale HOPE SF affordable housing development known as Sunnydale HOPE SF Block 3A (“Project”), a proposed 80-unit affordable housing development within the Sunnydale Phase 1A3 Infrastructure footprint. The Project is located on the southwest corner of Sunnydale Avenue and Hahn Street in San Francisco’s Visitacion Valley neighborhood. It will include 80 units, 75% (60 units) of which will be set aside for current Sunnydale public housing residents through Project Based Vouchers (“PBVs”) from the San Francisco Housing Authority (“SFHA”). The total unit mix will be 4 studios, 24 one-bedrooms, 28 two-bedrooms, 15 three-bedrooms, and 8 four-bedrooms. The public housing replacement units will be restricted to 50% MOHCD AMI and the remaining 19 lottery units will be restricted to 80% MOHCD AMI.

 

There will be roughly 20,000 square feet of commercial space including a childcare center, DPH Wellness Center, Mercy Customer Service Center and two food-related retail spaces. The MOHCD gap includes a residential loan for the housing and a commercial loan for these spaces.

Sunnydale Block 3A Housing Partners, L.P.

The Tenderloin Neighborhood Development Corporation (TNDC) requests up to $5,800,000 in PASS loans (composed of Market Rate, Below Market Rate and Deferred tranches for a period of 4 years interest only converting to 40 years fully amortizing) and a pre-development bridge loan of $1,000,000 from Condo Conversion Funds with 0% simple interest for a period of up to 4 years for the acquisition and rehabilitation of 81 units of housing for families.

Tenderloin Neighborhood Development Corporation