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Commission approves ground lease and loan for Mission Bay South Block 6 East, including supportive services
Summary
The commission authorized a ground lease and loan package for a 143‑unit Mission Bay South project, including 20% of units set aside for formerly homeless families and a partnership with 826 Valencia for after-school programming. Commissioners approved the action by a 4–0 vote with one absent.
The Successor Agency Commission on Aug. 16 authorized a ground lease agreement and an amended and restated loan agreement for Mission Bay South Block 6 East, a 143‑unit affordable rental project at 626 Mission Bay Boulevard North.
OCII staff described the development as 142 affordable rental units plus one manager’s unit, of which approximately 20% (about 29 units) will be reserved for formerly chronically homeless households with support services. Staff said the project includes about 9,700 square feet of ground-floor commercial space and will use green building strategies. TNDC will provide supportive services and 826 Valencia was identified as a partner to provide after-school literacy programming for school-age children in a retail space on the site.
Pam Sims, OCII housing development specialist, outlined financing: staff advised a permanent OCII loan component and leveraged financing including low-income housing tax credit equity and tax-exempt bonds. In the presentation staff referenced an aggregate loan figure in the introductory text and later described a permanent loan amount of approximately $37,500,000 and a 55-year loan term for the OCII component.
Public commenters reiterated support for certificate-of-preference holders and asked the commission to make extra efforts to notify long-standing neighborhood residents. Developer and community representatives described steps to prioritize outreach and rental-readiness services, and TNDC committed to fundraising support for the proposed 826 Valencia program; the loan committee placed a condition requiring TNDC to provide a six-month status report on those fundraising and program capacity plans.
On a motion by Commissioner Bustos, seconded by Commissioner Singh, the commission voted 4–0 with one absence to approve the ground lease and loan authorization for Block 6 East. Staff said bond issuance and construction financing steps are anticipated in late September and construction is expected to complete in mid‑2018 if schedules hold.
