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OCII approves gap financing for 200-unit Mission Bay Block 7 West affordable housing
Summary
The Commission authorized an amended loan agreement and gap financing related to Mission Bay Block 7 West, enabling development of 200 affordable family rental units; staff described a gap loan package and project financing plan and reported strong SBE participation to date.
The Office of Community Investment and Infrastructure on Aug. 5 approved an amended and restated loan agreement to support development of a 200‑unit affordable family rental project at 588 Mission Bay Boulevard North (Block 7 West).
Jeff White, OCII housing program manager, told commissioners the action implements previously negotiated deal points and provides gap funding that staff described as $16,975,000 (which wraps previously approved $2,000,000 in predevelopment funding and additional predevelopment and $13,375,000 for construction). In the meeting packet staff also identified a total aggregate loan amount associated with the project of $60,975,000.
White summarized project features: the building will contain about 230,000 square feet, 200 affordable units (studios/one- and two-bedroom units targeted to households at about 50–60 percent of area median income), ground-floor commercial space, a 28,000‑square‑foot courtyard, and two manager units. The target rent for a one‑bedroom unit was cited as approximately $980 per month under program assumptions.
White also reviewed the financing stack: OCII gap funding, 4 percent tax-credit equity, tax-exempt bonds, a private first mortgage, sponsor equity, and deferred developer fee. He noted the developer has achieved 53 percent Small Business Enterprise participation to date and said the developer is committed to 50 percent SBE participation during construction. The architect team includes David Baker Partners with associate architect Gonzales Architects.
Commissioners asked about outreach, the Certificate of Preference (COP) prioritization, and marketing plans. Staff said marketing and readiness programs would run well before lease-up and that MOHCD would assist with outreach and provide marketing outcome reports after project marketing completion. Temporary certificate of occupancy is anticipated in fall 2016 with 95 percent occupancy by spring 2017 and project closeout by the end of 2017.
Commissioner Singh moved the item; the motion was seconded and approved by roll call (3 ayes). Staff will bring ground-lease documents and other closing items back to the Commission and to the Board of Supervisors as required.
