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Committee forwards $399 million in tax-exempt bonds to recapitalize 14 public‑housing projects under RAD Phase 1
Summary
The committee moved to forward 14 inducement resolutions authorizing up to $399 million in tax‑exempt multifamily bonds to finance rehabilitation of 14 public‑housing projects (about 1,422 units) as part of the federal RAD conversion; speakers emphasized resident protections, construction oversight, pest abatement and service staffing.
The Budget & Finance Committee on Sept. 23 forwarded a package of 14 resolutions that would authorize the issuance of up to $399 million in tax‑exempt multifamily bonds to finance moderate rehabilitation of 14 public‑housing projects under the federal Rental Assistance Demonstration (RAD) conversion (Phase 1), representing about 1,422 units.
Lydia Ely of the Mayor’s Office of Housing and Community Development said the financing plan leverages approximately $285 million in private equity and $86 million in permanent debt and will support roughly $250 million in capital repairs; the city will contribute about $35 million in soft debt. Ely described local enhancements to RAD including a 99‑year ground lease to ensure long‑term affordability and layered regulatory restrictions that preserve affordability for 55 years. She said residents can convert to Section 8 without re‑screening and have a right to return following temporary relocation.
Supervisor Breed voiced concerns about construction quality and oversight, citing past problems at rehabilitated projects including appliance and finish defects and pest issues. Ely and developer representatives described construction monitoring protocols: bank of America (investor/lender) and the city will perform monthly construction inspections, the city will approve construction draws and change orders, and the Mayor’s Office has hired multiple construction managers to oversee projects. Developers and project partners described plans for pest assessment and abatement ahead of construction and for staffing on‑site property management and resident services connectors (roughly one FTE per 75 units), with supplemental one‑time services funds negotiated with Bank of America.
After public comment emphasizing full replacements, pest control and strong communication with property managers, the committee moved to forward the resolutions with a positive recommendation to the full Board.
