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OCII approves ENA and $3.5M predevelopment loan for Mission Bay Block 9A homeownership project
Summary
The Commission authorized an Exclusive Negotiations Agreement and a predevelopment loan up to $3.5 million to 350 China Basin Partners for about 140 limited-equity, for-sale affordable homes at Mission Bay South Block 9A. The units will be restricted by AMI bands and include outreach to Certificate of Preference holders.
The Commission on Community Investment and Infrastructure on April 7 authorized an Exclusive Negotiations Agreement and a predevelopment loan not to exceed $3,500,000 to 350 China Basin Partners, LLC to advance a roughly 140-unit affordable homeownership project at Mission Bay South Block 9A.
Annie Wong, a development specialist with OCII, said the project will use the city’s limited-equity homeownership model administered by the Mayor’s Office of Housing and Community Development. Units will be restricted to households earning roughly 80 percent to 110 percent of area median income (AMI) and resale prices will be set by a formula tied to assigned AMI levels rather than market values to preserve long-term affordability.
Wong said the developer must submit an early outreach plan within 30 days of construction start and a full marketing plan 12 months before a temporary certificate of occupancy; plans must include targeted outreach to Certificate of Preference (COP) holders. The staff presentation included a sample 2019 sales-price illustration: a two-bedroom priced for an 80% AMI household could be about $277,000 under the illustrative numbers shown.
The loan is structured as a predevelopment loan at 3 percent interest and may convert to a permanent forgivable loan at the close of construction financing subject to future commission approval. Staff told commissioners that the Citywide Affordable Housing Loan Committee recommended the request with conditions including a cost-estimating exercise and pursuit of additional funding sources to reduce the OCII subsidy.
Commissioners asked about construction hard costs (staff cited an estimated hard cost figure in the staff memo), outreach to prospective buyers and down-payment assistance. Maria Benjamin of the Mayor’s Office of Housing and Community Development said the office maintains a housing alert list (about 45,000 subscribers) and that the city has down-payment assistance programs that typically cap at about 15 percent of the purchase price but can be flexible in specific cases.
A caller from Bayview–Hunters Point, Oscar James, voiced support and urged outreach to local residents. Commissioner Scott moved approval; Commissioner Brackett seconded. The roll call recorded three ayes and one absence and the Commission adopted the item.
