Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Affordable Housing topic
No spam. Unsubscribe anytime.
OCII transfers Hugo Hotel site financing to Mayor's housing office to preserve project schedule
Summary
The Commission authorized transferring ownership and assignment of a $3.2 million predevelopment loan for 200 Sixth Street (the former Hugo Hotel) to the Mayor’s Office of Housing and Community Development so the Mercy Housing-led project can meet HUD and tax-credit deadlines after a Department of Finance funding denial.
The Commission on Community Investment and Infrastructure voted unanimously to transfer ownership and assign the OCII predevelopment loan for 200 Sixth Street — the former Hugo Hotel site — to the Mayor’s Office of Housing and Community Development (MOHCD) to keep a 66-unit affordable rental project on schedule.
Executive Director Bohe and a MOHCD representative said the move followed a denial from the California Department of Finance that prevented the successor agency from using $1.1 million in RP TTF funds. OCII had originally provided a $3.2 million predevelopment loan and selected a Mercy Housing–led development team for the site. Kevin Gichigan of MOHCD told the commission the project has land-use entitlements, has secured HUD Section 811 and transit-oriented development commitments, and expects construction to start in September pending bond and tax-credit closings.
Bohe said staff is transferring the asset now “in order to well position the project for a smooth bond and tax credit closing in September,” citing DOF’s rulings. Commissioners received details on procurement and compliance: the project will follow MOHCD contracting procedures with HUD Section 3 and local-business hiring goals and remain subject to federal and state prevailing-wage rules.
The commission had no speakers during public comment on the item and approved the transfer by roll-call vote (five ayes). The resolution instructs staff to effect the assignment and to coordinate any required DOF and Oversight Board approvals as the financing and transfers move through the ROPS process.
Next steps: MOHCD will assume the balance of project financing and pursue bond and low-income housing tax-credit closings; staff will return with any follow-up procurement or transfer details required by DOF and the Oversight Board.
