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Supervisors probe missing SoMa impact fees after ABAG withdrawal; MOHCD outlines projects once funds return

San Francisco Board of Supervisors Budget and Finance Committee · February 25, 2015
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Summary

A city committee heard that funds withdrawn without city authorization from an ABAG-held account are being returned after ABAG action; city planning, MOHCD and the SoMa CAC described priority infrastructure and stabilization projects and a plan to speed fund disbursement.

The committee held a hearing on Feb. 25 into discovery that nearly $925,166 in infrastructure funds for South of Market, including about $371,174 tied to Rincon Hill, had been withdrawn from an ABAG Finance Authority account without city authorization and subsequently reported as missing.

Supervisor Jane Kim (record identifies the sponsor) reviewed the chronology: MOHCD discovered the withdrawals in December; subsequent reporting identified alleged fraud and an ABAG employee who has been indicted in the matter. MOHCD, planning and CAC representatives described steps taken to recover the funds: ABAG27s finance authority voted to return the funds, and MOHCD staff said the city attorney is working with ABAG to finalize settlement terms and that returned amounts will come back to the Board for approval of any settlement.

City staff and the community advisory committee outlined a portfolio of past and proposed projects that would use the funds: pedestrian crossings at Russ & Folsom and Russ & Howard, South Park safety and seating improvements, and affordable-housing support (including a 333 Harrison investment). MOHCD said the funds had sat in different accounts over years due to bond and Mello-Roos mechanics and that the city will move to a year-round infrastructure RFP and more proactive outreach so community priorities are identified and projects move faster.

Supervisor Kim moved to continue the item to the call of the chair to allow fuller staff follow-up and community engagement; the committee took the motion without objection.

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