OCII hires financing team, authorizes up to $175M in tax allocation bonds to fund affordable housing and Transbay work

The Commission on Community Investment and Infrastructure on July 15 authorized a financing team for upcoming tax‑allocation bond issuances tied to Mission Bay South, Transbay and affordable‑housing obligations, and separately approved a bond issuance resolution authorizing new‑money tax allocation bonds in an aggregate principal amount not to exceed $175,000,000.

Staff presented three separate contract approvals (each acted on separately after a combined presentation): - A personal services contract with Fieldman Rolapp & Associates, Inc., financial advisor, not to exceed $176,000 (approximately $88,000 per transaction). Staff said Fieldman Rolapp has prior OCII familiarity and post‑dissolution experience. - A contract with Jones Hall (a professional law corporation) for bond counsel and disclosure counsel services, not to exceed $202,000 (about $101,000 per series), citing recent work as bond counsel on OCII's 2025 mission‑based south bonds. - A personal services contract with Kaiser Marston Associates, Inc., as fiscal consultant, not to exceed $263,000. Staff said Kaiser Marston's contract covers transaction work plus annual disclosure and ongoing hourly consulting through calendar year 2028; transaction costs will be paid from bond proceeds while annual disclosure work will be OCII funded.

All three contracts were approved on separate roll‑call votes (each recorded 4 ayes, 1 absent). The motions and roll calls did not identify the mover or seconder in the public transcript; recorded votes were Commissioners Miller, Shattuck, Vice Chair Aquino and Chair Dr. Carolyn Ransom Scott voting yes; Commissioner Lim absent.

In a related action, the commission approved Resolution No. 23‑2025, authorizing issuance of new‑money tax allocation bonds in one or more series in an aggregate principal amount not to exceed $175,000,000 under Health and Safety Code section 34177.7 to finance Transbay infrastructure and affordable‑housing obligations. Staff said the immediate plan includes two 2026 series: 2026 Series A (taxable) to fund private‑use Transbay costs and 341 affordable units (estimated uses: $132,260,000 in proceeds to fund about $98,000,000 of affordable‑housing projects and $20,000,000 of Transbay private‑use costs, plus reserves and issuance costs) and 2026 Series B (tax‑exempt) to fund the Transbay underramp park public‑use portion (estimated $14,667,000). The combined current estimate for the two series is about $146,927,000; staff requested authorization up to $175,000,000 to allow flexibility for cost increases or delays.

Staff also outlined a separate 2026C bond for Mission Bay South infrastructure (estimated $40,000,000) and a potential 2026D refunding for 2014/2016 bonds (outstanding after an August 1 principal payment of about $134,300,000) that would only proceed if savings under dissolution law are achieved. Next steps described in the presentation: return to the commission in October for approval of primary bond documents, seek oversight board approval (staff referenced an August 6 oversight board meeting for other items), submit required materials to the State Department of Finance (65‑day review window), circulate a preliminary official statement in February 2026, price in December 2025, and close in January 2026 (staff provided an estimated timetable).

Public comment on the financing presentation included critique from Francisco DeCosta questioning transparency; commissioners responded that the actions will enable delivery of affordable housing and local infrastructure and thanked staff for their work. The contracts and the bond authorization passed by recorded roll calls (each 4 ayes, 1 absent).