City housing office urges reallocations within 2015 bond as Prop C loan program is readied

Kate Hartley, of the Mayor’s Office of Housing and Community Development, told the committee the office is shifting some 2015 bond funds to avoid delays in spending bond proceeds and to maximize affordable and middle-income housing production.

"We are pleased to be before you today to give you an update on the 2015 housing bond," Hartley said, reporting that 70 percent of the first bond issuance is encumbered and that the middle-income down payment assistance loan program is fully subscribed.

Hartley explained the department intends to move Prop A construction funding originally allocated to stalled projects at 4840 Mission and 250 Laguna Honda to developments already advancing — notably 88 Broadway and 1296 Shotwell — so the bond funds can be spent without delay. She said the use of the funds will remain the same; only the project that receives the funds would change.

Benjamin McClos…