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Commission authorizes ENA and $2.5M predevelopment loan for 135 affordable units at Mission Bay
Summary
The Commission approved an exclusive negotiations agreement and a $2,500,000 predevelopment loan for 1300 Fourth Street Associates LP to develop 135 affordable family rental units in Mission Bay South (Block 6 East). The Tenderloin Neighborhood Development Corporation (TNDC) team was selected; staff outlined AMI targets, parking, and a schedule for schematic design and financing.
The Commission on Community Investment and Infrastructure on Dec. 2 authorized an exclusive negotiations agreement and a $2.5 million predevelopment loan for the development of 135 affordable family rental units at 1300 Fourth Street (Mission Bay South Block 6 East).
Pam Sims, development specialist at OCII, said the selection panel unanimously recommended the Tenderloin Neighborhood Development Corporation (TNDC) team. The project program in the RFP calls for 135 units with an 80% targeting at 50% of area median income (about 108 units) and 20% (about 27 units) reserved for formerly homeless families, plus 8,800 square feet of ground‑floor retail and a mix of one, two and three‑bedroom units.
"This funding will pay for architectural design through to construction drawings, survey and engineering work, legal costs, due diligence studies and developer fee," Sims said. The predevelopment loan carries a 3% simple interest rate and will convert to a permanent loan at construction closing; the ENA requires a $10,000 performance deposit and an initial 16‑month term with two potential six‑month extensions. Staff described a schedule that includes schematic design return on April 15, 2015; gap financing in August 2015; tax‑credit application in October 2015; and construction start and closing steps in 2016, with completion anticipated in December 2017.
Public comment at the meeting reflected broad support from a Mission Bay Citizens Advisory Committee member and others who praised the inclusion of the nonprofit 826 Valencia as a proposed service provider. Other commenters raised broader questions about AMI (area median income) definitions and how applicant pools are prioritized; housing program staff said OCII historically sets many project AMIs at 50% to target very‑low‑income households and that staff would return with demographic data and an AMI workshop to clarify the selection and marketing process.
The Commission approved the ENA and predevelopment loan; staff will return with schematic design and additional outreach details at subsequent meetings.
