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Committee backs $240 million conduit bonds for 1601 Mariposa affordable housing project
Summary
The Budget & Finance Committee unanimously forwarded a resolution authorizing up to $240 million in conduit multifamily housing revenue bonds to finance acquisition and construction of the 1601 Mariposa Apartments, which will include 60 affordable units targeted to households at roughly 40–50 percent of area median income.
The Budget & Finance Committee unanimously recommended that the full Board of Supervisors approve a resolution authorizing the issuance and delivery of multifamily housing revenue bonds in an amount not to exceed $240 million for the 1601 Mariposa Apartments.
Adam Cray, bond program manager in the Mayor’s Office of Housing and Community Development, described the transaction as conduit financing with no recourse to the city and no city gap financing. He said the project will include 60 affordable units targeted to households earning roughly 40–50 percent of area median income, and that the developer has secured an allocation from the California Debt Limit Allocation Committee and put together a financing team including bond underwriters, credit enhancement providers and tax credit investors.
Cray told the committee that bond closing is anticipated in July and that construction is expected to begin shortly thereafter with completion projected by the end of 2019. He also said the developer negotiated a regulatory agreement to ensure the project’s affordable units remain affordable for the life of the project.
Supervisor Farrell moved to forward the item with a positive recommendation; there were no objections and the motion passed unanimously in committee.
The committee’s action sends the bond authorization to the full board as a committee report so that closing and project implementation steps can proceed subject to standard city approvals.
