Citywide Affordable Housing Loan Committee Meeting

On behalf of MP Turk Street Associates, L.P., the Sponsor, MidPen Housing Corporation ("MidPen"), requests a $5,000,000 preliminary gap loan for new construction of a 92-unit multifamily affordable housing project at 850 Turk Street. The proposed 8-story building will contain 28 studios, 16, one-bedrooms, 21 two-bedrooms (including 1 manager’s unit), and 27 three-bedrooms. The units will be rent restricted at 40% - 80% MOHCD AMI.

MidPen was selected in May 2021 by the State of California to develop State-owned sites at 850 Turk Street and 750 Golden Gate Avenue. On July 22, 2024, MidPen received a preliminary funding award from MOHCD for 850 Turk Street under the $5 million Notice of Funding Availability (NOFA) to develop affordable rental housing for families on state-owned land. 850 Turk Street will be constructed on land that was used for State Employment Development Department (“EDD”) employee parking. The State is requiring this parking to be replaced. The Project will include a parking garage at grade providing 30 spaces for EDD employees but will contain no residential parking. The Sponsor will create two separate air parcels to differentiate the parking garage from the rest of the Project. These parcels have been approved by the City and the State is working to complete their approvals by the end of August 2024.

850 Turk Street anticipates applying for tax credits in August 2024. If awarded, the Sponsor expects to start construction in April 2025, complete construction in February 2027, and complete lease up August 2027.

MidPen Housing Corporation

Sunnydale Block 9 Housing Partners, L.P., comprised of Related Companies of California and Mercy Housing California, requests preliminary gap financing the amount of up to $27,250,000 for the sixth Sunnydale HOPE SF affordable housing development known as Sunnydale HOPE SF Block 9. The building is located within the Phase 3 infrastructure footprint of Sunnydale HOPE SF and will be a total of 5 stories, 4-story wood over 1-story concrete podium. Sunnydale HOPE SF Block 9 will include 95 units of affordable housing with 10 one-bedrooms, 51 two-bedrooms, 23 three-bedrooms, 11 four-bedrooms, with one of three-bedrooms as a manager’s unit. The unit mix is informed by current Sunnydale public housing household size data from the San Francisco Housing Authority. Of the units, 75% (71) will be set aside for existing Sunnydale public housing households subsidized by a 20-year Section 8 Project Based Voucher contract and limited to households earning up to 50% Mayor’s Office of Housing and Community Development Area Median Income. The remaining 23 units will be restricted to 80% MOHCD AMI and would be marketed through DAHLIA to the most restrictive at a maximum of 60% TCAC. The Project includes 1:1 bike storage ratio and a 0.75 parking ratio approximately with parking for 73 vehicles.

The design for the Project is currently at 85% Construction Drawings. On May 7, 2021, Loan Committee approved a predevelopment loan for $3,500,000. This preliminary gap request is needed to apply for tax credits by the Round 2 CDLAC deadline August 27, 2024, application deadline. If successful, vertical construction of Block 9 is expected to start June 2025. The construction period is expected to be 21 months with full lease up in 2027. Relocation of all residents previously living within the Block 9 footprint was completed in 2023.

Balboa Reservoir Building E is the first of four affordable multifamily housing developments planned as part of the Balboa Reservoir Master Plan Development. It will be a 7-story 100% affordable development with 128 family units including 56 one-bedrooms, 39 two-bedrooms, 32 three-bedrooms and one two-bedroom manager’s unit (“Project”). Thirty-one units will be restricted at 30% TCAC AMI (roughly 40% MOHCD AMI), 36 at 50% TCAC AMI (roughly 65% MOHCD AMI) and 60 at 60% TCAC AMI (roughly 80% MOHCD AMI). The Project has 1:1 bike storage and does not include parking.

The Sponsor is requesting up to $37,531,286 in preliminary gap financing to apply for Round 2 CDLAC by the August 27, 2024, deadline. In addition to the preliminary gap approval, the Sponsor is requesting an additional $2,000,000 in predevelopment funds until construction closing. On April 16, 2021, Loan Committee approved $13,594,128 in preliminary gap funds including $1,000,000 in predevelopment funding to apply for HCD IIG and AHSC funding. The Project was awarded $26M in IIG funds for infrastructure-related costs on December 2, 2021, and $29,585,486 in AHSC funds on February 4, 2022 ($19.6M for housing permanent financing and $9.98M in transportation-related grants). The AHSC program requires that the Project receive all permanent financing within two years of the award and the Project successfully received an extension to obtain all financing by January 1, 2025. To meet this deadline and keep the AHSC award, the Project will need to secure a CDLAC/TCAC award by December 2024 meaning it must apply for tax credits in 2024 CDLAC Round 2 by August 27, 2024, if it is to retain its state funding awards. If awarded tax credits, the Sponsor plans to start construction in June 2025 and complete construction June 2027.

The Mission Economic Development Agency (MEDA) is requesting a $750K acquisition take-out loan and $2.03M predevelopment take-out loans in the total amount of $2,784,577 for the development of 63 new affordable homeownership units located at 2205 Mission Street. This request for additional acquisition and predevelopment financing will allow MEDA to take-out the final predevelopment loan and remaining balance of the acquisition costs before returning for gap approval in 2025.

3300 Mission Partners L.P. is seeking $10,091,242 in gap financing for the development of 3300 Mission Street, a new construction project, which includes a $2,100,000 AHP bridge loan. The project is also requesting a $1,000,000 Emerging Developer Liquidity Guarantee to support the project. The project will accommodate 35 studio units that will be affordable to households from 30-80% AMI and this commitment will allow the project to close on its construction financing by November 2024 to meet the 9% Low Income Housing Tax Credits deadline for the California Tax Credit Allocation Committee (TCAC). The development team is a joint venture made up of Bernal Heights Housing Corporation (BHHC), Tabernacle Community Development Corporation (TCDC), and Mitchelville Real Estate Group (MREG).