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Committee advances plan to repurpose unspent seismic-bond funds for affordable housing loans
Summary
The committee approved technical amendments and forwarded an ordinance to implement Proposition C (2016) that repurposes unspent Proposition A (1992) seismic‑safety bond capacity to create a Seismic Safety Retrofit and Affordable Housing Loan Program with separate below‑market and market‑rate pools.
The Rules Committee on Oct. 17 approved city-attorney technical amendments and recommended that the Board consider an ordinance to implement Proposition C (passed by voters Nov. 8, 2016) by repurposing unspent Seismic Safety Loan Program bond capacity created by Proposition A (1992).
Kate Hartley, director of the Mayor’s Office of Housing and Community Development (MOHCD), introduced the Seismic Safety Retrofit and Affordable Housing Loan Program. Amy Chan and Jonah Lee explained program mechanics: Prop A authorized $350 million in bonds for seismic retrofit loans in 1992 but only about $95 million was used, leaving roughly $260 million in unspent capacity. Proposition C's 2016 ballot language added preservation of at‑risk housing as an eligible use. The draft ordinance designates MOHCD’s citywide affordable housing loan committee to approve applications, requires recorded affordability restrictions (permanent affordability for below‑market loans; affordability for the loan term on market‑rate loans), and prohibits passing rehabilitation costs to tenants on market‑rate properties.
Lee described loan structure and terms: loans on a first‑lien basis, flexibility to finance acquisition/rehabilitation or provide permanent 'takeout' financing after construction stabilization, interest rates tied to the city's cost of capital (below‑market for affordable projects). Staff said program regulations and affordability requirements will be approved by the loan committee.
Speakers from community development organizations — including Peter Cohen, Whitney Jones (Chinatown CDC), Carolene Fang (Mission Economic Development Agency) and others — spoke in support, noting Prop C’s strong voter approval and the program’s importance to acquisition and preservation work. The committee adopted city‑attorney formatting and definition corrections and moved the ordinance to the full Board with a positive recommendation as amended.
