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Committee authorizes bond financing move for 92‑unit 850 Turk affordable housing project
Summary
The Budget and Finance Committee approved authorizing up to $64 million in multifamily housing revenue notes to finance construction of a 92‑unit affordable housing project at 850 Turk Street.
The Budget and Finance Committee on March 26 approved a resolution that authorizes issuance of multifamily housing revenue notes in an aggregate principal amount not to exceed $64,000,000 to finance construction of a 92‑unit affordable housing project at 850 Turk Street.
Andrew Strong, a project manager at the Mayor’s Office of Housing and Community Development, said the project was selected by the state in 2021 for development on state land and is being undertaken by MidPen Housing. The development will provide 92 rent‑restricted units (40–80 percent AMI) plus one manager’s unit. Construction is projected to start in April 2025 and to be completed in February 2027.
The project received a tax‑exempt bond allocation from the California Debt Limit Allocation Committee ($48,478,327 on Dec. 11, 2024). Those tax‑exempt bonds are conduit financing; the city is not obligated to pay the bonds but will authorize the notes as mortgage security for the developer. The project includes at‑grade parking for 30 state Employment Development Department (EDD) employee spaces to replace prior on‑site parking required by the state; there will be no residential parking.
MOHCD told the committee construction financing is committed and that the city’s $5,000,000 gap loan accounts for $54,348 per unit in city contribution. The committee forwarded the resolution to the full board with a positive recommendation.
