Chinatown Community Development Center secures $20.9M loan to rehabilitate Powell Street housing

In a recent government meeting, San Francisco County officials discussed a significant affordable housing project aimed at revitalizing a historic building in Chinatown. The project, managed by the Chinatown Community Development Center (CCDC), involves the rehabilitation of a Single Room Occupancy (SRO) building that now includes 64 residential units, a manager's unit, and two commercial spaces. This initiative is particularly crucial as it addresses the pressing need for affordable housing for seniors in the area.

The rehabilitation project, which began after the building's acquisition in December 2021, faced extensive challenges, including severe disrepair and safety violations. The total costs for rehabilitation were substantial, with hard costs nearly three times the acquisition price and soft costs reaching approximately three and a half times. The project received a senior operating subsidy approved by the Board of Supervisors, amounting to $6.2 million over 15.5 years, which allows rents for 35 of the units to be set at 60% of the Area Median Income (AMI). Tenants will pay either 15% or 25% AMI rents, making it more accessible for low-income seniors.

The meeting highlighted the importance of the project not only for housing but also for community stability. CCDC has committed to enhancing the commercial units, investing $348,000 in upgrades during the rehabilitation phase, with an additional $100,000 earmarked for future tenant improvements. The building, originally constructed after the 1906 earthquake, has undergone a complete transformation, including modernized elevators and accessible bathrooms, ensuring safety and comfort for its senior residents.

Officials noted that the project has already achieved significant milestones, including the successful relocation of tenants and the completion of residential rehabilitation on schedule. Approximately 110 residents now occupy the building, with CCDC providing substantial assistance to those who were permanently relocated, including help in securing Section 8 vouchers.

The financing structure for the project is noteworthy, with a total loan amount of $20.9 million, primarily sourced from a settlement intended to preserve SRO units lost to market pressures. This funding will support both acquisition and rehabilitation costs, as well as a sinking fund to address potential future operating deficits.

While the project has been praised for its potential to provide long-term affordable housing, concerns were raised about the sustainability of such initiatives. Supervisors expressed the need for ongoing discussions about funding strategies to ensure the viability of small site projects across the city. The meeting concluded with a commitment to explore additional funding sources and strategies to maintain financial stability for similar future projects.

Overall, this meeting underscored the critical intersection of housing, community development, and financial planning in addressing San Francisco's ongoing affordable housing crisis, particularly for vulnerable populations such as seniors.