Board approves package of grants, loans and contracts including $50.6 million housing loan and Homekey funds for Otis Street

The San Francisco Board of Supervisors on March 4 adopted a package of grants, loans and contract amendments that together authorize millions in spending for housing, transit, parks and library reentry services.

The actions approved include a $50.6 million permanent loan for a preservation and seismic safety project, retroactive acceptance of Homekey acquisition funds for 42 Otis Street, a $1.9 million Andrew W. Mellon Foundation grant to the Public Library for jail and reentry services, procurement of battery-electric buses, and multiple park and promenade grants and planning awards.

Why it matters: the approvals commit city funds and contracts that will finance affordable housing preservation, support reentry services, add zero‑emission buses to the municipal fleet and fund design work on downtown public spaces and the Great Highway promenade. Several items also add or amend city positions tied to grant funding and extend vendor contracts for major capital projects.

Key approvals and details

Votes at a glance: - Item 17 (Planning Code amendment, downtown commercial-to-residential adaptive reuse fee exemptions): ordinance finally passed, vote 9–1 (Supervisor Walton opposed). (Transcript roll call recorded at the meeting.) - Item 18 (San Francisco Public Library: retroactive acceptance of ~ $1,900,000 Andrew W. Mellon Foundation grant for jail and reentry services; add three grant-funded positions): passed on roll call, 10–0. - Items 19 & 20 (Recreation & Park grants / Embarcadero Plaza partnership and California State Coastal Conservancy $1,000,000 Great Highway Promenade planning grant): resolutions adopted (no separate roll-call objections recorded during the meeting). - Item 21 (SFPUC first amendment to engineering contract with CDM Smith Inc. for the [treatment plant] — increase of $9.6 million to a $24.6 million total and four‑year term extension through Feb. 2030): resolution adopted without objection. - Item 22 (OEWD acceptance and expenditure of $675,000 James Irvine Foundation grant for apprenticeship network sustainability): adopted without objection. - Item 23 (Mayor’s Office of Housing & Community Development: execute loan documents for permanent financing — loan amount $50,600,000 — and confirm CEQA determination): resolution adopted without objection. - Item 24 (Department of Homelessness and Supportive Housing: retroactively accept and expand ~ $8,200,000 in Homekey acquisition funds for property at 42 Otis Street; term through 06/30/2026): resolution adopted without objection. - Item 25 (Procurement: New Flyer of America contract to supply 4 40‑foot and 3 60‑foot battery‑electric buses through cooperative purchasing; $13,400,000; five‑year term): resolution adopted. - Item 26 (Contract amendment to extend an existing agreement and increase amount): taken up after committee referral; discussed on the record and adopted (see separate coverage for debate on homeless services contracting).

Selected item summaries

Library reentry services grant — Item 18: The board retroactively authorized the San Francisco Public Library to accept approximately $1.9 million from the Andrew W. Mellon Foundation for a jail and reentry services program, covering the period 11/01/2024 through 12/31/2027. The ordinance also amends the city’s annual salary ordinance to add three grant‑funded full‑time positions (a Librarian I and two administrative analyst positions) through 06/30/2026.

Housing finance and Homekey — Items 23 and 24: The mayor’s housing office received authority to execute loan documents for a preservation and seismic safety loan in the amount of $50,600,000 (project identifiers in the record: 1135/1155/11705 with 1155 LSGP LLC) and to confirm the CEQA determination for that transaction. Separately the Department of Homelessness and Supportive Housing was authorized to retroactively accept and expand approximately $8.2 million in state Homekey funds for acquisition of 42 Otis Street to create permanent supportive housing, with the grant term extending to 06/30/2026.

Transit and capital contracts — Items 21 and 25: The Public Utilities Commission was authorized to amend and increase an engineering services contract with CDM Smith Inc. (for the water treatment plant project described in the file) by $9.6 million for a $24.6 million total and to extend the contract term through February 2030. The board also approved purchase of seven battery‑electric buses from New Flyer of America under a cooperative purchasing agreement for $13.4 million.

Parks and promenade grants — Items 19 and 20: The Recreation and Park Department is authorized to accept cash and in‑kind contributions from a private developer and partners for design and project management at Embarcadero Plaza and Sue Bierman Park (initial cash/in‑kind ~ $2.5 million and potential additional assistance up to $10 million as described in the agreement). The board also accepted and expanded a $1,000,000 Coastal Conservancy grant for the Great Highway Promenade planning project.

Process and next steps: several items were taken “same house, same call” (consent procedure) and adopted without individual debate. A small number of items generated recorded roll‑call votes; Item 17 was the only ordinance in the package that drew a recorded 9–1 final passage vote with Supervisor Walton voting no.

Speakers and staff recorded on these items included Board President Rafael Mandelmann and Supervisors Connie Chan, Matt Dorsey, Myrna Melgar, Aaron Peskin (listed in the transcript as Supervisor Sauter/Cheryl), Dean Preston (appears as other supervisors in transcript); city staff from the Public Library, MOHCD, HSH, SFPUC and Recreation & Park provided the project descriptions in committee materials and staff reports.

Ending: Most approvals were routine or consent items that commit funding and authorize standard procurement steps. Several of the items (notably the Homekey acquisition and the $50.6 million loan) will lead to follow‑on administrative and implementation actions by MOHCD and HSH, including contract execution and reporting requirements that the respective departments are expected to complete.