Committee backs conduit bond financing for two Mercy Housing rehabilitation projects

The Budget & Finance Committee voted to forward two bond‑related resolutions to the full Board that would allow conduit residential mortgage revenue bonds to finance rehabilitation of two affordable housing properties sponsored by Mercy Housing California.

Adam Cray, bond program manager in the Mayor’s Office of Housing and Community Development, said Dorothy Day Community (54 Macalester Street, Tenderloin) will be a 100‑unit rehabilitation with 90 units at or below 60% of area median income (AMI) and 10 units at or below 50% AMI. Bridal Court (171 Lower Street, Visitacion Valley) is a 92‑unit rehabilitation; upon completion the sponsor expects a deep-affordability mix described in materials. Cray said residents will not be permanently displaced and will have the right to return after any temporary relocation.

Cray noted these are conduit financings that do not pledge city funds; both sponsors plan to seek allocations from the California Debt Limit Allocation Committee (CDLAC) and would return to the Board for issuance approval if awarded. The committee had no public commentators and accepted the BLA absence; supervisors moved both items forward with a positive recommendation.