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Board committee advances financing package for 256‑unit supportive housing and a homeless services center on Mission Street
Summary
The committee recommended to the full Board a package of financing and land‑use approvals for a 256‑unit permanent supportive housing development at 1064–1068 Mission St and a city‑owned homeless services center, including MOHCD loans, tax‑exempt bonds and certificates of participation. Project aims to open by Nov. 2021 per federal requirements.
The Budget & Finance Committee recommended to the Board a multi‑part financing package to advance a 256‑unit permanent supportive housing project and a co‑located, city‑owned 20,000‑square‑foot homeless services center at 1064–1068 Mission Street.
Anne Romero of the Mayor’s Office of Housing and Community Development (MOHCD) said the development team (Episcopal Community Services and Mercy Housing California) plans modular construction on a federally prioritized surplus site that MOHCD acquired for the project and noted a hard federal completion requirement: the project must be operational by November 2021. "This is an extraordinary opportunity to build permanent supportive housing in the South Of Market," Romero said.
The financing presented included a MOHCD loan request of up to $74.4 million (which relies in part on $27.7 million in state No Place Like Home allocations), issuance of multifamily housing revenue bonds supported by tax‑exempt bond allocation, and a grant of $13.4 million to finance the homeless services center shell. Vishal Trivedi of the Office of Public Finance described an interim commercial‑paper plan sized to $7.25 million of certificates of participation (COPs) funding $5 million of construction cost for the homeless services center, plus debt service reserves and issuance costs.
The homeless services center will be city‑owned and operated by DPH and HSH; Mercy Housing’s affiliate will develop the center, and services will include Tom Waddell Urgent Care Clinic, Street Medicine, dental services and SFHOT. The residential program will total development costs of roughly $143.6 million, financed by MOHCD loans, LIHTC equity, tax‑exempt bonds, and other non‑city sources. MOHCD said modular construction is being pursued to meet the aggressive schedule.
BLA summarized the sources and uses and confirmed the proposed appropriations and financing documents are consistent with city policy, noting $5 million in COP proceeds would fund project costs and the balance would support reserves and transaction expenses. The committee moved the package to the Board with a positive recommendation.
Next steps: MOHCD and finance staff will return with final sale documents and the Board will be asked to approve the financing and ground lease so construction can start as planned.
