In a recent San Francisco County government meeting, officials discussed significant delays and cost overruns affecting multiple affordable housing projects due to ongoing issues with Pacific Gas and Electric (PG&E). The meeting highlighted the challenges faced by the Mayor's Office of Housing and Community Development (MOHCD) as they seek to navigate the complexities of project financing and infrastructure development.

One of the primary concerns raised was the chronic difficulties PG&E has encountered in meeting design deadlines, which have led to substantial delays in electrification across various sectors, including affordable housing. Officials expressed fears that these delays could result in tens of millions of dollars in additional costs across active projects. The board was presented with requests for increased funding to cover these unexpected expenses, including a proposed $4.2 million increase for a community development project in the Tenderloin neighborhood and an $8.9 million increase for another project on Mission Street.

The discussion revealed that delays in obtaining necessary approvals from PG&E have cascading effects on project financing. For instance, one project experienced a ten-month delay in energization, which resulted in the expiration of a favorable loan rate lock and forced the developers to secure a new loan at significantly higher interest rates. This situation not only increased the overall project costs but also impacted the equity contributions from tax credit investors.

Officials emphasized the need for collaboration between the MOHCD, the Public Utilities Commission (PUC), and PG&E to identify and resolve roadblocks in the development process. They noted that while efforts are ongoing to improve infrastructure provision, the current delays are largely beyond their control. The board acknowledged the systemic nature of these issues, with several other projects potentially requiring similar funding adjustments in the future.

The meeting also touched on the broader implications of these funding requests, with some officials expressing concerns about setting a precedent for future projects. There were calls for a more creative approach to cost-sharing and financing, particularly in light of the significant burden placed on affordable housing funds due to infrastructure-related expenses.

In conclusion, the meeting underscored the urgent need for improved coordination among city departments and utility providers to expedite the development of affordable housing in San Francisco. As the city grapples with rising costs and delays, officials remain committed to finding solutions that will allow these essential projects to move forward and serve the community effectively.