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Committee advances bond and ground‑lease for 67‑unit affordable housing project
Summary
The Budget & Finance Committee advanced a resolution to issue up to $25 million in multifamily housing revenue bonds and approved conveyance and a long‑term ground lease to Mercy Housing California for a 67‑unit development at 1009 Howard Street; the project includes units targeted at households with incomes at or below 50% AMI and 14 units under HUD Section 811.
The San Francisco Board of Supervisors’ Budget & Finance Committee voted to advance a bond issuance and property conveyance this week to support construction of a 9‑story, 67‑unit affordable rental housing development identified in the meeting record as the "Bill Soro" community.
Kevin Kitchen, identified in the record as the Mayor’s Office of Housing and Community Development project manager for the site, told the committee the resolution would authorize issuance of up to $25,000,000 in multifamily housing revenue bonds to help the developer, Mercy Housing, secure construction financing at an estimated 3.1% interest rate. Kitchen said 52 units will be affordable to households at no more than 50% of area median income and 14 units will be set aside for developmentally disabled adults under HUD’s Section 811 program targeted at households earning no more than 20% of AMI. One unit is reserved for an on‑site property manager.
Kitchen said the project will include ground‑floor commercial space, a courtyard, rooftop terrace and social‑services space; he anticipated closing on the financing on Nov. 3, 2014, with demolition and construction slated to begin in early February 2015 and an estimated 24‑month construction schedule.
Supervisor identified in the transcript as "Supervisor Marr" praised the project’s namesake and said it would honor that person’s legacy in the fight against displacement and support for tenants. Chair Mark Farrell opened public comment; none was offered.
The committee treated the financing as a conduit bond issuance—meaning the city would not pledge its general funds and bondholders’ recourse would be limited to project revenues and any lender credit enhancements. The clerk read the motion to move the item forward and the committee advanced both the bond resolution and the companion property conveyance and 70‑year ground lease (with an option to extend an additional 29 years) to Mercy Housing for further action by the full Board of Supervisors.
What happens next: the full Board of Supervisors will consider final approval; the resolutions, as presented to the committee, rely on a mix of HUD Section 811 funds, state transit‑oriented development awards, Federal Home Loan Bank funds and tax credit equity as described by the project team.
(Reporting note: the project name appears in the transcript as "Bill Soro"; that spelling is used here to match the meeting record.)
