Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Affordable Housing Preservation topic
No spam. Unsubscribe anytime.
Committee advances $50.6 million permanent loan for Normandy Apartments in Western Addition
Summary
The Budget and Finance Committee voted to forward a resolution authorizing the Mayor's Office of Housing and Community Development to execute permanent financing, up to $50.6 million, for the Normandy Apartments acquisition and rehabilitation; the Tenderloin Neighborhood Development Corporation will be the developer.
The Budget and Finance Committee on Feb. 26 voted to forward to the full Board of Supervisors a resolution authorizing the Mayor's Office of Housing and Community Development (MOHCD) to execute loan documents to finance acquisition and rehabilitation of Normandy Apartments, a 109-unit property at Ellis and Gough streets in the Western Addition.
Aaliyah Gage, preservation program manager at MOHCD, told the committee that the package totals $50,600,000 and combines two loan products: a small sites acquisition loan and preservation-and-seismic-safety (PASS) hard debt. "The first component of the loan will be the repayment of a 35.8 acquisition bridge loan," Gage said. She said the rehabilitation budget includes nearly $10 million for physical repairs, soft costs, reserves and a developer fee, and that the project includes life-safety upgrades, asbestos abatement and accessibility improvements.
The Tenderloin Neighborhood Development Corporation (TNDC) will be the developer. Chris Cummings, TNDC's director of housing development, urged support and said the building's condition and scale make it a cost-effective preservation opportunity. "It is extremely hard to find buildings of this scale and this good condition in neighborhoods like District 2," Cummings said during public comment.
Nick Menard of the Budget and Legislative Analyst's office recommended approval, noting the loan uses two different funding instruments and that total per-unit subsidy is lower than many recent projects. The BLA report stated the combined total amount per unit is about $468,000 and that the request is consistent with MOHCD underwriting guidelines.
The committee recorded a motion to forward the resolution to the full board with a positive recommendation. Vice Chair Supervisor Matt Dorsey, Member Supervisor Joan Engadio and Chair Supervisor Connie Chan voted in favor; the motion passed with three ayes.
If enacted by the full board, MOHCD said rehabilitation work will begin in summer 2025, with staged on-site relocations to minimize disruption and expected stabilization by the end of 2026. MOHCD described the unit mix as 78 studios and 31 one-bedroom apartments, with 120 parking spaces and 99-year affordability restrictions averaging 80% of area median income.
Budget and loan structure details: MOHCD said roughly $35.8 million will repay an acquisition bridge loan, about $10 million will fund rehabilitation, and the PASS tranche (about $22 million) will be supported by property cash flow; MOHCD reported a per-unit subsidy request of about $266,000 under the small sites component and about $202,000 per unit supported by PASS mortgage terms.
