Committee reserves COP proceeds for HOPE SF and approves $30M state infill grant acceptance

The Budget and Finance Committee moved several financing items related to the HOPE SF public-housing redevelopment program forward to the full Board of Supervisors and approved acceptance of a $30 million state infill infrastructure grant.

Mayor's Office of Housing staff described HOPE SF as a program to rebuild eight public-housing developments into mixed-income communities without displacing current residents, including a Hunters View pilot that would create up to 800 units in three phases and represent part of an estimated $258.6 million development budget for early phases. The program's financing model relies on city commitments leveraged with state and federal funds and private development proceeds; staff said the board previously committed $95 million over 20 years and that the project has additional commitments under negotiation.

The committee considered authorization to issue certificates of participation (COPs) in an aggregate principal amount not to exceed $38,000,000 for phase financing and to reserve $38,000,000 of COP proceeds. City finance staff said the estimate assumes taxable debt at an 8% interest rate for conservatism but that tax-exempt treatment remains possible; the budget analyst noted some funding sources (including a $20 million HUD grant) had not been finalized and recommended treating the financing as a policy matter for the Board. The committee approved acceptance of the $30,000,000 state infill grant (Item 12) and forwarded the COP authorization and reservation items for further Board consideration.

A public commenter urged delay and expressed concern about the choice of private developers for Hunters View, asking that more local-worker and community-benefit conditions be considered before committing financing.