Committee forwards $4.1M acquisition and $12.4M financing package for 35‑unit affordable studio development at 3300 Mission

The Budget and Finance Committee on Sept. 25 recommended the Board authorize acquisition of properties at 3300/3306/3308 Mission Street for approximately $4.1 million and related financing and ground lease arrangements to enable a 35‑unit, 100% affordable studio rental development.

William Wilcox of MOHCD said the project will deliver 35 studios affordable to households at 30% to 80% of area median income, includes about 700 square feet of ground‑floor commercial space, and requires a construction start by early November to meet the deadlines tied to the 9% low‑income housing tax credits the project received in July 2024. MOHCD described existing predevelopment and acquisition loans ($2.3M) and requested a $7.9M increase to cover construction costs, plus a $2.1M portion intended to be repaid when Federal Home Loan Bank funds are secured.

BLA staff flagged tradeoffs relative to the NOFA used to select the project: the transaction does not include formerly homeless unit set‑asides (a loss of roughly nine units relative to the NOFA goal), exceeds the NOFA's maximum city subsidy per unit, and is not in a designated high‑resource area. BLA also noted the city's underwriting changes to support smaller neighborhood developers and an additional $1,000,000 limited payment guarantee to support construction.

Chair Chan moved a technical amendment to strike and rephrase a clause in the purchase agreement; the committee approved the amendment and forwarded the amended item to the full Board with a positive recommendation.