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OCII housing production report shows large pipeline and affordable share; community questions SBE and local‑hire results
Summary
OCII presented its annual housing production report showing a 27,776‑unit pipeline with 47% affordable and several projects in construction. Staff reported notable SBE and local‑hire outcomes for FY 2023–24, while contractors and residents disputed those SBE figures and asked for stronger enforcement and transparency.
The Office of Community Investment and Infrastructure presented its annual housing production report for fiscal year 2023–24 on Feb. 4, outlining long‑range obligations across the agency’s four project areas and reporting recent construction starts while fielding questions and criticism from local contractors and community members about small‑business enterprise (SBE) and local‑hire results.
OCII housing staff said the agency’s project pipeline totals 27,776 units once enforceable obligations are complete, with 47% of the pipeline designated as affordable, including newly approved replacement housing under state law (SB 593). Staff highlighted several construction starts in the year: Transbay Block 2 East (182 affordable family units) and Transbay Block 2 West (150 affordable senior units), plus OCII‑funded projects in the Hunters Point Shipyard (Blocks 52 and 54) and Mission Bay South Block 9A (a 148‑unit, 100% affordable homeownership project that completed construction in late 2024/early 2025).
Elizabeth Colomelo, OCII housing program manager, told commissioners that 662 OCII‑funded affordable units were under construction during the fiscal year and that of those 419 are at 50% AMI or below; 135 are at 30% AMI or below and 176 include an operating or rental subsidy. Colomelo said OCII succeeded in securing project‑based Section 8 vouchers for two Shipyard phase‑1 projects nearing completion.
On procurement and local workforce metrics staff reported that in FY 2023–24 more than 45% of construction contract dollars (about $105 million) were awarded to SBEs and that 42% of awarded contract dollars went to San Francisco‑based SBEs. OCII staff also reported local construction workforce participation of 28% — 605 San Francisco residents totaling roughly 107,000 hours — in the reporting year.
Members of the public disputed those SBE and workforce figures. Representatives of the San Francisco Hyperlocal Building Trades Contractors Collective and other community contractors told the commission they are not getting contract opportunities and pressed for accountable enforcement mechanisms and clearer reporting. Commissioner Brackett and several speakers said they wanted more transparent, granular reporting on SBE prime and subcontract awards, program compliance reviews and remedial actions where developers missed local hiring and SBE goals.
Staff warned that the competitive state financing environment (tax‑exempt bonds and tax credits) and elevated construction and operating costs — insurance and utilities in particular — remain challenges for delivering deeply affordable units. Commissioners asked for follow‑up briefings and asked that the SBE and local‑hire items be continued for a full, dedicated discussion at the next meeting; the commission voted 4‑0 to continue the SBE and local‑hiring policy item and to bring additional documentation to the next session.
Public commenters also reiterated community priorities: build more deeply affordable units at under‑50% AMI, prioritize COP holders and descendants when possible, and strengthen accountability for developer commitments to local hiring and local business participation. OCII staff said they will supply additional SBE/workforce detail and return with follow‑up materials for the commission’s review.
The report and the discussion underline the tensions between long‑range development obligations and current financing and construction market constraints, and the need for stronger transparency and enforcement mechanisms for inclusion goals in major projects.
