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Commission holds 181 Fremont variation after staff, consultant outline $13.85M buyout
Summary
Commissioners continued consideration of a request from Jay Paul Company to convert 11 required on‑site BMR units at 181 Fremont into market‑rate units in exchange for a $13,850,000 payment; staff and Concord Group explained the methodology and some community groups signaled conditional support; Commission voted to continue the item for further study.
The Commission on Community Investment and Infrastructure paused action on a request by Jay Paul Company to vary the Transbay redevelopment plan’s on‑site affordable housing requirement at 181 Fremont, continuing the item to a future meeting for further study.
Courtney Pash, acting project manager, said the developer requested converting the 11 required below‑market‑rate (BMR) for‑sale units to market‑rate units and paying $13,850,000 to the successor agency to fund affordable housing elsewhere in the Transbay area. Pash said the site’s unit count and placement — 74 for‑sale units on the building’s top 15 floors — and high homeowners association fees could create long‑term affordability problems for BMR owners.
Tim Cornwell of the Concord Group summarized the consultant’s unit‑by‑unit analysis and comparables and said the $13.85 million figure reflected the net additional revenue to the developer if the 11 units were converted. "It's a very unique building," Cornwell said, noting limited comparable sales and some movement in price points since the October 2013 study, but he defended the methodology used.
Fernando Marti of the Council of Community Housing Organizations testified in support of the change as a solution to the HOA‑fee problem but warned that it should not set a broader precedent for altering mixed‑use character on rental buildings.
Commissioners expressed concern about precedent, the adequacy of the Concord Group analysis (dated Oct. 2013), the magnitude of the $13.85M payment (roughly more than $1M per unit), and whether the potential hardship assumption about future HOA increases was appropriate. Several commissioners asked for updated analysis and more discussion of mitigation measures. A motion to continue the item passed by a 3–0 roll call vote.
The variation would be subject to Board of Supervisors approval because it constitutes a material change to OCII’s affordable‑housing program; staff noted if approved the funds would be programmed largely toward Transbay Block 8 and other OCII‑assisted sites.
