OCII approves ENA and $3.5M predevelopment loan for Hunters Point Block 56 family rental project

The Commission on April 7 authorized an Exclusive Negotiations Agreement and a predevelopment loan not to exceed $3,500,000 to support the development of approximately 73 affordable family rental units at Hunters Point Shipyard Phase 1, Block 56.

Elizabeth Colomillo, senior development specialist with OCII, said the ENA term is 18 months with one 12‑month extension option and the proposed loan carries a 3 percent interest rate with a three‑year term (or until conversion at loan closing). The RFP process produced three submissions; the selection panel—composed of OCII and MOHCD staff and a Citizens Advisory Committee member—ranked the Mercy Housing California and San Francisco Housing Development Corporation team highest.

Colomillo said the project will follow shipyard occupancy preferences, with Certificate of Preference holders prioritized, and that the project was programmed to serve households earning up to 50 percent AMI with tiering to serve lower-income households. The proposal includes a family childcare unit and a podium courtyard and aims to maximize unit counts and affordability in a constrained budget.

Staff noted ongoing environmental cleanup and testing in the shipyard site and said UC San Francisco and UC Berkeley experts had reviewed the California Department of Public Health testing procedures for certain parcels and found them appropriate for health and safety; OCII will continue coordination with regulatory agencies and the Navy as predevelopment work proceeds.

A public caller, Oscar James, voiced support and suggested extending some preferences to teachers. Commissioners moved and seconded the item and the Commission approved the ENA and loan; the transcript records a brief affirmative vote count and staff reported the motion passed.