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OCII authorizes $2017 bond package using SB 107 credit to finance affordable housing and Transbay infrastructure
Summary
The commission approved staff recommendations to confirm and proceed with three bond issuances (2017 A/B/C) using the SB 107 credit and Mission Bay housing pledge to support affordable housing projects across OCII project areas and Transbay infrastructure. The Financing Authority approved bond purchase and redemption agreements; public commenters urged prioritizing local hiring and housing for returning residents.
The Commission on Community Investment and Infrastructure on Feb. 21 confirmed staff—s authorization to issue a package of bonds under Senate Bill 107 and Mission Bay housing pledges to finance affordable housing and Transbay infrastructure.
Deputy director of finance Brie Mahorter briefed the commission on three proposed issuances described in staff materials: a 2017A taxable third‑lien issuance to fund affordable housing (staff referenced a $90.2 million band in narrative and an agenda cap shown earlier), 2017B tax‑exempt bonds for Transbay infrastructure, and 2017C taxable Mission Bay housing bonds combining new‑money and refunding components. Mahorter explained that OCII would use the SB 107 credit (a state authorization specific to San Francisco post‑dissolution) to support new bonding for affordable housing and Transbay infrastructure, and that 2017C would be limited to Mission Bay housing pledge revenues.
Financial context: staff described estimated average annual debt service (for the packages presented) and total interest cost estimates (examples in staff commentary included figures around 4.3% and 4.53% for different series). Mahorter told commissioners the agency—s additional bonds test (1.25x coverage) was met under conservative "no growth" assumptions, with staff citing historical growth trends in Mission Bay and other project areas as additional comfort for repayment projections.
Public comment focused on equity and local hiring: longtime commenters Ace Washington and Oscar James urged the agency to use financing benefits to address displacement and prioritize housing for returning residents. Commissioners asked technical questions about interest rates and SB 107 mechanics; staff explained that SB 107 allows pooling of redevelopment tax increment into a redevelopment property tax trust fund and limits new issuances to affordable housing in enforceable obligation areas and Transbay infrastructure.
Financing authority actions: after recessing and convening as the Financing Authority, the commissioners (serving in that role) approved the bond purchase agreements and redemption agreements needed to sell the bonds in negotiated sales. Roll calls on the commission and financing authority votes were unanimous (5 ayes recorded on the transcript).
Outcome and next steps: The commission and the financing authority approved the resolutions on the record; staff will finalize official statements in substantial final form and proceed with market distribution of preliminary official statements and closing steps as delegated to the executive director in consultation with bond counsel.
