Housing Authority approves Sunnydale ground leases, project-based vouchers and streetlight power; HUD approval required

The Housing Authority of the City and County of San Francisco on Thursday approved a package of agreements to advance phase 1C of the Sunnydale HOPE SF redevelopment, authorizing ground leases for Blocks 7 and 9, project-based vouchers and a construction license to provide electrical power to new streetlights on West Access Road.

The items — described in staff materials as a series of ground leases, HUD use agreements, partial releases of prior HUD use covenants and ancillary lender documents — were presented by Claire Murphy, associate director of real estate development at Mercy Housing, a co-developer on the Sunnydale project. Murphy told commissioners the proposals would allow construction to start this summer on Building 7 (88 units, including 67 units set aside for Sunnydale legacy residents at 50% of San Francisco area median income) and Building 9 (94 units, including 71 legacy-resident set-aside units). Murphy said the blocks are “100% affordable” and reiterated the project’s commitment to one-for-one replacement of legacy units.

Why it matters: The approvals advance more than 180 affordable units in the Sunnydale redevelopment and clear a path for infrastructure work tied to the overall HOPE SF promise of replacing public housing units as sites are rebuilt. Staff and the developers…