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OCII presents FY2015–16 housing production: 265 affordable units delivered, pipeline grows amid cost pressures
Summary
OCII staff reported 265 affordable units delivered in FY15–16 and an active pipeline, but flagged rising construction costs, state cost caps and potential federal tax changes that could reduce tax-credit equity and tighten financing.
OCII staff on Dec. 20 presented their annual affordable housing production report for fiscal year 2015–16, reporting that 265 affordable housing units were delivered in the period and that a robust pipeline remains in construction and predevelopment.
Jeff White, OCII housing program manager, said the fiscal-year deliveries included 189 OCII-funded stand-alone units and 76 inclusionary units tied to market-rate projects. He described an active construction pipeline — 858 units in construction at the time of the report — and highlighted the agency—s role in advancing part of the mayor—s goal of 10,000 affordable units by 2020.
Why it matters: the report shows OCII continuing to contribute to affordable housing production across Mission Bay, Transbay and the shipyard/Candlestick plan areas. Staff also emphasized workforce and contracting outcomes tied to that production.
Challenges and policy risks: White told commissioners that very high local construction costs have prompted state agencies (CDLAC, TCAC and HCD) to institute cost caps that limit bond and tax-credit proceeds. He also warned that proposed federal tax changes could reduce corporate demand for tax credits and therefore lower equity available to affordable projects. "The market is already starting to react to that possibility," White said, urging vigilance on cost containment and financing strategies.
Local hiring and SBE progress: the presentation highlighted workforce and contracting gains. OCII reported about $296 million in professional services and construction contracts across 12 affordable projects, with more than $109 million awarded to small business enterprises; women- and minority-owned firms received sizable shares of professional-services contracts, and a significant portion of construction contracts went to minority- or women-owned firms.
Next steps: the presentation was a workshop (no action taken). Staff said several RFPs and funding authorizations are planned or underway for 2017, and OCII will continue monitoring state cost-cap rules, tax-credit markets and contract-compliance data.
