Board approves Treasure Island financing structure, adds accountability measures for affordable housing

The San Francisco Board of Supervisors on Dec. 6 unanimously approved a package of resolutions to establish financing districts and begin the public process for infrastructure and community facilities financing on Treasure Island and Yerba Buena Island.

Supervisor Kim told the board the measures implement earlier entitlements and the city's disposition and development agreement dated June 7, 2011, and are intended to create the public financing tools needed as the project proceeds. She said the full project is projected to include 8,000 new homes, 2,173 (27.2 percent) of which are designated as affordable and that revised projections show a $382,000,000 gap across a $968,000,000 portion of the work described for 1,866 units.

The board approved items 4–8 to create the infrastructure and revitalization financing district and community facilities district and to set public hearings; it separately adopted item 9 acting as the taxing agency to approve the infrastructure financing plan. Supervisor Kim described a set of amendments added before the vote to increase accountability for delivering the affordable units and to document commitments from the mayor's housing office.

The amendments recorded by Kim and acknowledged in the meeting include: a commitment from the mayor's Office of Housing to provide $4,000,000 in fiscal year 2018 for predevelopment work, $30,000,000 over the next 10 years and a further $250,000,000 over the life of the project toward the identified affordable-housing gap; a pledge that the city will pursue a citywide affordable housing general obligation bond by 2024 if state and other funds are not secured; and a requirement that the Treasure Island Development Authority (TIDA) report to the Board of Supervisors every six months on the status of affordable-housing financing and construction. Kim also said the amendments add oversight language including third-party engagement with a nonprofit that has worked on Treasure Island community benefits.

Robert Beck, identified at the meeting as the Treasure Island Development Authority director, confirmed the proposed hearing date changes and asked that conforming changes be made to related resolutions. The board set the public hearing dates to January 24, 2017, for the affected resolutions and then took the votes.

Votes and next steps: The four resolutions creating the financing districts and related step items were approved without objection; the infrastructure financing plan (item 9) was adopted unanimously when the board acted as the taxing agency. Supervisors indicated the city will continue to pursue state and other funds to close the financing gap and that the adopted package increases commitments and reporting on affordable-housing delivery.

Context and limits: Supervisor Kim said the approvals do not in themselves close the overall financing gap but place new commitments and oversight into the record. The board did not set specific bond issuance amounts beyond the amounts referenced in the agenda language for the community facilities district (an intent to incur bonded indebtedness up to $5,000,000,000 was described in the staff report). The DDA and other transaction documents referenced by Kim were presented as preexisting legal commitments; the board did not amend the DDA during this meeting.

The measures passed with unanimous votes and will proceed to the public hearing process and subsequent steps required for district formation and bond authorization.

Ending — next steps: TIDA and city finance staff will conform the resolutions to the January 24, 2017 hearing dates and return required materials. The board also expects the mayor's Office of Housing and TIDA to provide the biannual financing updates Supervisor Kim requested.