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OCII approves amendment to Mission Bay North OPA to allow 45 moderate‑rate rental units on Block N4P3
Summary
The commission approved a Fifth Amendment to the Mission Bay North Owner Participation Agreement to permit Block N4P3 to be developed as a 129‑unit project with 45 moderate‑rate rental inclusionary units (at up to 120% AMI) and 84 market‑rate rental units; staff said the change is driven by financing feasibility and site constraints, while some housing advocates urged preserving lower AMI targeting and nonprofit partnerships.
The Commission on Community Investment and Infrastructure conditionally approved an amendment to the Mission Bay North Owner Participation Agreement (OPA) for Block N4P3 that changes the remaining inclusionary requirement from 80 for‑sale moderate units to 45 moderate‑rate rental units and 84 market units. The amendment raises the OPA’s moderate AMI threshold from 110% to 120%, and staff said the change is necessary to make development financially feasible without a substantial public subsidy.
Catherine Riley, Mission Bay project manager, told the commission that the Concord Group’s feasibility study concluded that building 80 moderate‑rate for‑sale units on the site would be infeasible without an estimated $12–15 million public subsidy (assuming no land cost). Riley said the selected alternative keeps a moderate component on site—an outcome the agency emphasized as important because Block N4P3 is the last opportunity in Mission Bay to provide moderate‑rate housing within OPA parameters. Staff said the master developer has agreed to donate the land (estimated value $10,500,000) and Integral Group would provide up to $10,000,000 in equity to close financing gaps.
Riley provided sample rent levels tied to 2013 numbers: moderate‑rate units would be roughly $2,400 to $3,000 per month for one‑ to three‑bedroom units, versus market rents of about $3,000 to $4,200 for comparable units. She said the project would follow Mission Bay North marketing and lottery guidelines that prioritize certificate holders, then San Francisco residents, then the broader public.
Public comment and commissioners’ discussion highlighted policy tradeoffs. Corinne Woods of the Mission Bay Citizens Advisory Committee expressed strong support for moving the parcel to construction. Peter Cohen of the Council of Community Housing Organizations urged the commission to re‑examine the change in income targeting and warned that converting to 120% AMI rentals reduces opportunities to use 4% tax credits and partner with nonprofit developers to serve lower income tiers. Staff and consultants replied that tax credit structures and current market comparables make the for‑sale moderate scenario infeasible at this site; commissioners framed the vote as a policy choice informed by hard feasibility constraints.
The commission voted to approve the OPA amendment and the CEQA findings, recording 4 ayes and 1 absent. Staff said the approval is conditioned on subsequent review and approval by the Board of Supervisors, the Oversight Board and the Department of Finance under dissolution law, and staff expects those reviews to occur in February with final approvals possibly in April.
