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Commission approves ground lease for 120 very-low-income senior units at 5800 Third Street
Summary
The commission authorized a ground lease to develop Carroll Avenue Senior Homes (121 units including manager unit), preserving a Bayview senior center on-site, directing marketing and preference order provisions and approving financing steps to move toward construction in 2014–2015.
The commission approved a ground lease authorizing development of Carroll Avenue Senior Homes at 5800 Third Street (Lot 3) in Bayview Hunters Point. Pam Sims of the Mayor's Office of Housing and Community Development presented the disposition and financing package for 121 senior units (120 very-low-income units plus one manager unit) and a new roughly 14,000-square-foot Bayview senior center to be relocated into the development.
The project is part of the Alice Griffith redevelopment commitments and is financed through a combination of OCII gap financing (a previously approved GAAP loan of about $19.1 million), tax-credit equity, tax-exempt bonds, an infill infrastructure grant and project-based Section 8. Sims said the developer received CDLAC and TCAC funding acceptances and HUD granted an extension for the construction start to March 30, 2014.
Priority marketing will first serve Alice Griffith residents, certificate-of-preference holders and Hunters Point residents; the project will reserve 23 units for formerly chronically homeless residents referred by the Department of Public Health. The ground lease term is 55 years with a 44-year option (total 99 years). Annual rent to OCII was described as $566,000 (base rent $15,000; residual rent payable only if cash flow permits).
Commissioners discussed outreach to certificate-of-preference holders and the mechanics of the lottery/marketing plan (which staff said must be submitted and approved by OCII and MOHCD). The commission approved the ground lease and related resolution (5-0). Staff will proceed to the Oversight Board and Department of Finance for required approvals, begin bond issuance and aim to close financing by March 2014 so construction can start.
What’s next: staff will present marketing and lottery mechanics for commission review and will return with updates on financing close and construction schedule.
