OCII approves loans and ground leases to fund Mercy Housing's 184-unit Transbay Block 2 East project

The San Francisco Office of Community Investment and Infrastructure on March 19 approved amended and restated loan agreements and long-term ground leases to support construction of Transbay Block 2 East, a 184-unit, 100% affordable family rental housing development led by Mercy Housing.

OCII Director Koslowski and senior development specialist Kim Obstfeld told commissioners the Block 2 East project includes 184 units ranging from studios to three‑bedrooms, two on‑site manager units, a childcare facility operated by Wu Yi that is expected to serve about 45 children, and two ground‑floor community‑serving commercial spaces. Obstfeld said the residential portion will include 40 units for families experiencing homelessness supported by the city’s local operating subsidy (LOSP).

The agency described a three‑tranche OCII funding structure that will total about $73 million in OCII support: roughly $62 million as a permanent residential gap loan, about $9 million to fund the commercial component, and approximately $2 million for site preparation. Obstfeld said additional residential financing will come from Low‑Income Housing Tax Credit equity and a roughly $41 million award from…