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Committee forwards two major housing financing items: 1296 Shotwell ground lease and $110M bond issuance for 2675 Folsom
Summary
The committee advanced a 75‑year ground lease for 1296 Shotwell to develop 94 units of senior affordable housing and approved a conduit bond issuance resolution (up to $110M) to finance a 117‑unit mixed‑income development at 2675 Folsom; both measures were recommended to the full Board with BLA context on expected rents and residuals.
The committee considered two substantial housing finance actions and forwarded both to the full Board with positive recommendations.
MOHCD staff presented a proposed long‑term ground lease between the city and 1296 Shotwell LP (Mission Economic Development Agency and Chinatown Community Development Center) for development of a 94‑unit affordable senior project (19 units set at 30% AMI for formerly homeless seniors and the remainder up to 50% AMI). The ground lease includes a $15,000 annual base rent and potential residual receipts equal to 10% of appraised value (MOHCD estimated residual receipts could be up to $1,002,500 annually but BLA cautioned residuals are unlikely given low tenant incomes). The committee voted to forward the ground lease as a committee report with a positive recommendation.
Separately, MOHCD presented a conduit multifamily housing revenue bond issuance (not to exceed $110 million principal) to finance development at 2675 Folsom Street, a 117‑unit mixed‑income building with 20% of units reserved at 50% AMI. Staff said the financing is conduit in nature and will not require a city subsidy or pledge; bond closing was expected within weeks to preserve tax‑exempt status and associated tax credits. The committee forwarded the bond issuance resolution to the full Board as a committee report with a positive recommendation.
