Supervisors continue ordinance aiming to require reuse of cash-out proceeds from city-funded affordable housing

An ordinance introduced March 7, 2017, would amend the administrative code to require that all cash‑out proceeds received by an owner of an affordable housing development supported in whole or in part by taxpayer funds be used only for residential and tenant services and the creation, development and preservation of affordable housing.

Supervisor Mark Farrell, the ordinance’s author, told the Board the measure is intended to prevent public subsidies for affordable housing from being converted into private political spending or other private purposes. Farrell cited a recent refinancing transaction in which he said a developer purchased or refinanced a city-supported affordable housing project, realized substantial gains, and then — he said — used funds on political measure committees. "There should never be the perception that public resources are potentially used for political purposes," Farrell said.

Nut graf: why…