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Committee backs up to $52.4 million loan for Sunnydale infrastructure

San Francisco Board of Supervisors Budget & Finance Committee · June 5, 2024
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Summary

The Budget & Finance Committee advanced authorization for a MOHCD loan of up to $52.4 million to finance infrastructure work at Sunnydale Hope SF, which planners say will enable replacement public housing, new affordable units and open space; the committee asked MOHCD for a year‑end status update on state funding drawdowns.

The Budget & Finance Committee voted to forward a resolution authorizing the Mayor’s Office of Housing and Community Development to execute a loan for Sunnydale Phase 3 infrastructure not to exceed $52,400,000.

Jason Lu, policy director for community development at the HOPE SF initiative, said the funding would support site preparation on roughly 15 acres — grading, paving, joint trenching, underground utilities and pads for residential buildings — to enable the redevelopment of a 775‑unit public housing site into a mixed‑income community of roughly 1,770 units. "Sunnydale is part of the HOPE initiative," Lu said, "and we are coming before you today to approve the financing needed to continue this important work." (presentation on the record.)

Project details presented to the committee include about $10 million in predevelopment and demolition costs already incurred and roughly $42.4 million proposed for hard and soft infrastructure costs. MOHCD said infrastructure construction is scheduled to start in July; the department estimated infrastructure work would be complete in the first quarter of 2026 and would return to the Board for city acceptance in late 2026.

The Budget and Legislative Analyst noted the city is funding 100% of these project costs and that roughly $9–10 million of the loan could be reimbursable if state grant funding is successfully drawn down. The BLA recommended the department provide a status update by the end of the calendar year on the projects' ability to draw down the awarded state grant funding; MOHCD agreed to return with that update.

Supervisor Rafael Mandelmann requested to be added as a co‑sponsor and the committee forwarded the item to the full Board with a positive recommendation (roll call: Mandelmann — aye; Melgar — aye; Chan — aye).

What happens next: If state funding is awarded and other conditions align, MOHCD expects the next building block to begin construction in mid‑2025; the committee requested a status update by year’s end on grant drawdown and project timelines.

Sources: MOHCD presentation and Budget & Legislative Analyst report presented on the record at the Budget & Finance Committee.