Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Soma Stabilization Fund topic
No spam. Unsubscribe anytime.
Committee approves $500,000 SoMa stabilization allocations with amendments to protect city interests
Summary
The committee approved $500,000 from the SoMa Community Stabilization Fund — $400,000 to help United Players purchase 1038 Howard Street and $100,000 for West Bay Pilipino’s college-prep program — with amendments limiting city liability for private loans and requiring reimbursement or proportional appreciation on resale.
The Budget & Finance Committee on Dec. 10 voted to recommend that the Board of Supervisors allocate $500,000 from the South of Market (SoMa) Community Stabilization Fund, subject to amendments that protect the city’s financial interest.
Claudine Del Rosario (Mayor’s Office of Housing and Community Development) presented the funding package: $400,000 as a down payment to assist United Players (UP) in acquiring 1038 Howard Street and $100,000 for West Bay Pilipino Multi-Service to deliver culturally sensitive college-preparatory services to SoMa youth. She said the property at 1038 Howard was appraised at $1,475,000 and the seller agreed to carry back a $1,000,000 loan at 5.25% interest.
The Community Advisory Committee (CAC) had voted unanimously to recommend both projects, and speakers from the CAC and community described nonprofit displacement and the need for stabilization of long-standing service providers. "Nonprofit displacement working group... prioritized acquiring a community facility," CAC co-chair Chris Angoco told the committee.
Budget analyst Harvey Rose recommended two protections: (1) explicitly state that the city has no liability for the private loan between United Players and the seller, and (2) require that if the property is sold (including foreclosure or default), United Players would repay the original $400,000 plus a proportional share of any appreciation. April Veneracion, legislative aide to Supervisor Jane Kim, offered parallel amendments to allow UP to transfer equity to another building within SoMa under strict conditions and prior MOHCD approval.
Supervisor John Avalos moved consolidated amendments (including the city-liability language) and sought a further provision that proceeds from any future sale due to default or otherwise come back to the city; Deputy City Attorney John Givner assisted in framing the amendment. The consolidated amendments were adopted by the committee and the item was forwarded to the full board for final action.
Next steps: MOHCD will continue drafting grant and loan documents (deed of trust and declaration of restrictions) and return the amended authorizing resolution and final grant agreement for board adoption. The committee required the department to provide amended legislation to the clerk.
