Committee authorizes forwarding $35 million in seismic/rehab bond authority after preservationists seek program changes

The Budget & Finance Committee moved to the full Board a resolution authorizing the sale of not to exceed $35,000,000 in taxable general obligation bonds (series 2006A) to replenish a seismic and rehabilitation loan program.

Joel Lipsky of the Mayor—s Office of Housing said the authorization would give the city a line of credit to make loans to retrofit older unreinforced masonry buildings and other structures in need of seismic or accessibility work. Lipsky said the office would only issue bonds for projects with specific commitments and immediate need; in practice the authority provides predictability for prospective borrowers about available financing.

Budget analysts urged a more cautious approach and recommended authorizing $20,400,000 now and releasing additional authority only if the program demonstrated timely use and expanded eligibility. Supervisor supporters argued that limiting the authorization could stall projects and argued the full $35,000,000 would make the program more usable by sponsors seeking quick financing.

Preservation groups and nonprofit developers said expanded eligibility for nonprofit-owned unreinforced masonry buildings and longer loan terms would help keep historic properties and community-serving institutions from closing. The committee ultimately approved forwarding the full $35,000,000 request to the Board without adopting the budget analyst recommendation limiting sales to $20.4 million.

What happens next: The Board of Supervisors will consider the bond authorization and any amendments; the Mayor's Office of Housing said it would return in three months with progress and proposals to broaden program eligibility.