OCII approves $180,000 MOU with MOHCD to fund Legacy Foundation down-payment grants

The Office of Community Investment and Infrastructure Commission on a 4-0 vote authorized a memorandum of understanding with the Mayor’s Office of Housing and Community Development (MOHCD) to fund a Legacy Foundation homeownership down-payment assistance program with a one-time payment of $180,000 from the Hunters Point Shipyard Phase 1 community benefit fund.

Kashika McKinney, presenting the item, said OCII’s payment would fund five forgivable loans of $32,500 each. McKinney described the loans as interest-free with no monthly payments; the principal balance would decrease by 20% each year starting after year five and be forgiven in full at the end of the tenth year. MOHCD would retain up to $9,000 (5%) to cover administrative fees and the funds would be transferred within 90 days of MOU execution, McKinney said.

The program — referred to in the presentation as the Legacy in Town (LIT) program — will prioritize existing Bayview residents and San Francisco residents purchasing in the program area, which includes ZIP codes 94124, 94134 and 94107. McKinney said the Legacy Foundation board voted unanimously to have MOHCD administer the grant based on MOHCD’s experience administering city homeownership programs.

Commissioner Brackett questioned the scale of the allocation, noting $180,000 will support only five families and asking whether the strategic plan adopted in February 2017 had been revisited in light of COVID-19. Nadia Sisay and other staff said COVID had limited meetings but that the foundation and staff plan to review the five-year strategic plan and may refine allocations; staff also framed the allocation as a pilot that could be expanded if successful. "If this is gonna work, then perhaps there are other funding sources that can come towards this model," a staff member said.

Maria Benjamin of MOHCD said the $180,000 is intended to be used in combination with other city down-payment assistance resources, including programs that provide larger down-payment support, and described the Legacy funds as a targeted addition to existing programs. "This is a small — it's five homeowners — but we've been really doing a lot of community outreach," Benjamin said.

Public commenters who called in urged approval. Dr. Veronica Honeycutt, identified in the transcript as chair of the Legacy Foundation, said the community needs homeowner assistance and urged the commission to "move this measure forward." LaShawn Walker, representing part of the development team, likewise called the allocation a welcome step and noted that funds can be stacked with other programs.

The commission adopted the MOU on a motion recorded in the transcript (mover identified as "Commissioner Cracker" and seconded by Commissioner Scott); the roll call recorded four "yes" votes and the chair declared the motion carried.

The presentation also noted awards to date from the Legacy Foundation, including a $25,000 grant to Urban Ed Academy in January 2020 for a Bayview technology hub. Staff said future Legacy Foundation items before OCII include a Lennar Bayview Hunters Point scholarship and a college living-expense stipend; some phase 2 scholarship funds are prescribed by the disposition and development agreement (DDA) and are not interchangeable with phase 1 funds.

The commission did not set additional conditions when approving the MOU; staff said they will return with updates as the program is implemented and that OCII regularly reports progress to the commission.