OCII approves $62M gap loan, $4.5M predevelopment increase and ground‑lease to advance Transbay Block 2 affordable housing

The Office of Community Investment and Infrastructure commission voted unanimously on Aug. 15 to back three actions to move forward Transbay Block 2, a two‑building, 335‑unit affordable housing development on the former temporary Transbay terminal site.

Staff said the financing and lease approvals will let the sponsor pursue bond and tax‑credit awards this fall and begin site preparation ahead of construction. Kim Obstfeld, senior development specialist on OCII’s housing team, told commissioners the package includes an approximately $61,961,845 permanent residential gap loan for Block 2 East (184 units, including two manager units), an increase of $4,500,000 to an existing predevelopment loan (bringing that loan to about $8,000,000) to pay for early trade work and permit fees, and authorization of a short‑term horizontal ground lease to reimburse up to $2,333,653 for site work and demolition.

"The actions before you today are the commitment of approximately $62,000,000 in permanent residential gap loan funding for Transbay Block 2 East," Obstfeld said during the presentation.

Obstfeld said Block 2 will be…