City approves loan to preserve three Bernal Heights affordable buildings

The Budget and Finance Committee on March 26 moved forward a resolution authorizing the Mayor’s Office of Housing and Community Development (MOHCD) to provide a loan package of up to $11,595,214 to support rehabilitation and permanent financing for three existing nonprofit‑owned affordable buildings (a 26‑unit bundle known as the Bernal bundle).

Amanda Fukatomi Lopez, MOHCD preservation project manager, told the committee the loan package combines up to $3,711,000 from the Preservation and Seismic Safety Loan Program, up to $3,770,159 in rehabilitation loan funds and a recast of about $4,128,056 in existing city loans. The sponsor, Bernal Heights Housing Corporation, asked for up to $1,839,173 in accrued interest forgiveness; MOHCD staff said they support that request. The three buildings—at 1652–1654 Eddy Street (7 units), 3554 17th Street (9 units) and 195 Wolseley Street (10 units)—serve low‑income households and include permanent supportive housing and project‑based vouchers on some units.

MOHCD staff said the bundled approach achieves economies of scale for construction and operations, allows subsidized cash flows from some sites to support others, and will fund seismic retrofits and other critical repairs (windows, roofing, electrical, plumbing and elevator replacement where needed). The properties are on San Francisco’s mandatory soft‑story retrofit list and require retrofits that were scheduled in prior years but have not been completed.

MOHCD reported that construction is expected to commence this spring with completion late this year or early next year; the agency said construction contracts are in place and city construction representatives will monitor costs and contract performance. The committee voted to forward the loan package to the full Board of Supervisors with a positive recommendation.