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Committee forwards Kelsey Civic Center financing and ground lease for 112-unit 100% affordable project
Summary
MOHCD presented a package of state and city financing—including an HCD accelerator loan and a MOCD loan totaling roughly $57M combined—and a ground lease to advance the 112‑unit Kelsey Civic Center project (including 28 units serving people with disabilities); the committee forwarded the items with a recommendation and discussed high per‑unit costs.
The Budget & Finance Committee moved to forward three related resolutions enabling construction of the Kelsey Civic Center, a 112‑unit, 100% affordable housing development that includes 28 units serving people with disabilities and a planned disability community cultural center.
Sheila Nicholas of the Mayor—s Office of Housing and Community Development said the project has received state funding through the California Housing Accelerator Program and other state sources; MOHCD described the project as one of several shovel‑ready, previously stalled developments that the state accelerator was created to help complete. The MOCD loan package and ground lease before the committee would provide local gap financing and a ground lease with a long term to support construction and permanent affordability.
The Budget and Legislative Analyst reported total development costs of about $88.5 million with a city contribution around $24.7 million (roughly $800,000 per unit), and recommended approval while noting elevated per‑unit costs; supervisors and MOHCD staff discussed cost drivers (supply chain, interest rates, neighborhood standards, and process delays) and potential process reforms including delegated authority and other incremental changes to accelerate projects and reduce costs.
Public comment included skepticism about developer track records and project timelines; MOHCD representatives said they would provide additional documentation (e.g., LOI/PSA) to address follow‑up questions before the Board vote. The committee forwarded the financing and ground lease resolutions to the full Board with a positive recommendation (3–0).
