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Committee backs purchase of BMR condominium at 1160 Mission to preserve affordability
Summary
The committee recommended that the Board authorize up to $300,000 to acquire Unit 812 at 1160 Mission Street (Soma Grand) if necessary to preserve below-market-rate affordability; staff said the owner faces foreclosure, owes civil penalties and HOA dues, and MOHCD seeks the most expeditious route to return the unit to an income-eligible household.
The Government Audit and Oversight Committee on June 11 voted to forward a resolution authorizing the city to acquire a below-market-rate condominium at 1160 Mission Street, Unit 812 (the Soma Grand building) for up to $300,000 to hold it for resale under San Francisco's below-market-rate (BMR) inclusionary homeownership program.
Maria Benjamin, director of homeownership and BMR programs for the Mayor's Office of Housing and Community Development, described the unit as scheduled for foreclosure after the owner defaulted on a first mortgage in 2017 and identified the lender planning a foreclosure auction as Celine Finance. Benjamin said the owner also owes approximately $210,000 in civil penalties for illegally renting the unit and about $35,000 in unpaid homeowners association dues.
Staff told the committee that if the city is successful in acquiring the unit at auction it would transfer ownership to an income-eligible household; if outbid, the unit will retain affordability restrictions but bringing a private investor into compliance is costly and lengthy. Committee members asked how many units face foreclosure risk; staff said roughly 12 inclusionary units were being monitored and quarterly interventions typically helped 3'to 5 households get current on mortgages.
Chair Supervisor Jane Kim praised staff for catching the unit before sale and asked for a future hearing to review what the city does to support first-time BMR homeowners to remain successful. An unidentified committee member moved item 5 to the full Board with a positive recommendation and the motion carried without objection.
Next steps: the resolution will be forwarded to the Board of Supervisors for consideration on the June 19 agenda.
