Supervisors advance plan to repurpose 1992 seismic bond for at‑risk housing preservation

The San Francisco Board of Supervisors’ Budget & Finance Committee on June 29 advanced sponsor amendments to repurpose part of a 1992 seismic bond so the remaining funds can be used to acquire and rehabilitate at‑risk multiunit residential buildings and convert them to permanent affordable housing.

Supervisor Peskin’s office outlined the proposal, noting the original 1992 UMB bond authorized $350,000,000 for seismic strengthening and that roughly $156,000,000 remains in the market‑rate tranche and about $105,000,000 remains in the affordable tranche. The sponsor’s amendments would expand eligible uses to include acquisition, seismic, fire, electrical and plumbing upgrades, and permit nonprofit affordable housing developers to convert buildings through the city’s small‑site acquisition and rehab program.

The Mayor’s Office of Housing and Community Development (Kate Hartley) testified that MOHCD supports the amendments and described a pipeline of small‑site activity: 54 units closed last year, 58 in contract and about 70 in underwriting. MOHCD told the committee that lower interest financing under the revised terms could replace conventional debt currently used for those projects and asked for one additional staff position to deploy funds more quickly.

The Budget Legislative Analyst (Deborah Newman) and the Controller’s Office cautioned that while repurposing the market‑rate tranche would not authorize new borrowing beyond the 1992 authorization, the Office of Public Finance lacked detailed issuance timing, exact interest costs or the number of bond issuances—variables that determine the city’s fiscal timing. Jamie Curvin of the Controller’s Office said issuance would likely follow the 1992 limitation of selling up to $35,000,000 per year in bond batches and that below‑market loans would have a net cost effect on the GO debt tax levy after borrower repayments.

Supporters from housing organizations and community groups urged the board to act. Peter Cohen (Council of Community Housing Organizations) and Tracy Parent (San Francisco Community Land Trust) described immediate acquisition opportunities across neighborhoods such as the Inner Sunset, Cow Hollow and Mission, and emphasized that acquisition‑rehab can preserve rent‑controlled units and prevent displacement. Caroline Fang (Mission Economic Development Agency) said MEDA has more than 30 units in the Mission in its pipeline and estimated the program could save nearly 30 Mission units within months.

Deputy City Attorney John Gibbner advised that amending a ballot measure requires another committee hearing and public notice. Following that guidance, Chair Mark Farrell asked for a motion to adopt the sponsor’s non‑substantive amendments and continue the item. Supervisor Katie Tang moved and Supervisor David Chiu (Supervisor Yi in the transcript) seconded; the committee adopted the amendments and agreed to continue the item to the next Budget & Finance meeting for additional hearing and public comment.

What happens next: the committee adopted the sponsor’s amendments and will continue the item for the required further committee hearing and noticing before the measure is finalized for a ballot title and placement on the voter calendar.

Sources and attributions in this article are limited to statements made at the June 29 Budget & Finance Committee meeting and to the specific speakers listed by the committee.