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Committee advances bonding and loan package to preserve 108 affordable units in South Park
Summary
The committee recommended forwarding resolutions to issue up to $37.1 million in multifamily revenue bonds and authorize a loan agreement (up to $30.5 million) to finance acquisition and rehabilitation of a 108‑unit affordable housing project in South Park, with BLA amendments requested to align legislation with loan documents.
The Budget and Finance Committee advanced a financing package to preserve 108 affordable rental units in South Park by forwarding two companion items: authorization to issue multifamily revenue bonds (aggregate principal not to exceed $37,100,000) and approval of a loan agreement with MHDC South Park Property LP in an amount not to exceed $30,500,000.
Caroline/Carolyn McCormick (project manager, Mayor’s Office of Housing and Community Development) described the project as three structures with 108 units, nearly all affordable to households at 25–60% of San Francisco Area Median Income (AMI), with residents typically formerly homeless. The scope includes major rehabilitation, seismic upgrades and reconfiguration to improve light and air in one building; temporary off‑site relocation of residents during work was disclosed but no permanent displacement is planned. MOHCD said financing would use conduit bond issuance (no city pledge of repayment), provide about $3,300,000 in gap financing from the Housing Trust Fund, and include preservation and seismic loan products (approximately $13,200,000).
The Budget Analyst noted differences between budget tables and loan documents and recommended amending legislation so the amounts in the ordinances match the loan documents (the analyst reported loan documents total $28,300,000 while the budgeted use of funds showed roughly $24,700,000). The BLA recommended approval with amendments to reflect the actual loan documents and to maintain an appropriate buffer for project uncertainty.
The committee accepted the BLA’s recommended amendments and moved both items to the full Board with a positive recommendation. The proposed financing is expected to close the following month, with construction to begin shortly thereafter per MOHCD’s schedule.
