Supervisors add appraisal requirement to mental-health cooperative housing loan ordinance; passes on first reading

The Board of Supervisors amended and passed on first reading an ordinance establishing a Cooperative Living Opportunities for Mental Health loan fund and program to finance acquisition of communal residential properties for people with chronic mental illness and/or substance use disorders.

Supervisor Ahsha Safaie proposed a narrow amendment to add a required appraisal of any property prior to purchase. Deputy City Attorney John Gibner confirmed that Chapter 23 of the Administrative Code addresses appraisal requirements for city purchases and that Safaie's amendment would authorize the department to adopt regulations regarding appraisals under the program. The amendment was seconded by Supervisor Katy Tang Ronan and, after no objection, the board took the item as amended and passed the ordinance on first reading unanimously.

What changed The adopted amendment inserts language requiring appraisal of property before any purchase under the fund's regulations; the ordinance also establishes program rules for fund administration, compliance with applicable law, affordability restrictions, eligible uses of funds, underwriting criteria and compliance monitoring.

Vote and formal action - Item 8 (ordinance to establish the Cooperative Living Opportunities for Mental Health loan fund; as amended): Motion to amend by Supervisor Safaie, seconded by Supervisor Ronan; amendment adopted without objection. Ordinance as amended passed on first reading unanimously.

Implementation and next steps The ordinance instructs the administering department to adopt regulations, including appraisal procedures and program administration rules. Additional funding, project selections and program regulations will follow in departmental rulemaking and subsequent budget actions.