OCII selects financing team for planned 2027 tax-allocation bond issuance to fund affordable housing

The Commission on Community Investment and Infrastructure voted on Dec. 2 to authorize three contracts that will form a financing team for a proposed 2027 tax-allocation bond issuance intended to advance an affordable housing program referenced in the presentation as "SB 5 93." The actions individually approve a financial adviser, bond and disclosure counsel, and a fiscal consultant to support preparation and sale of the bonds.

Nick Jones, OCII debt manager, told commissioners the 2027 issuance is expected to fund approximately $135,000,000 of housing projects, including work in the Mission Bay South project area and the Block 4 East development site. Jones said the financing team was selected from competitive city panels and OCII panels and that contracts would be paid from bond proceeds when bonds close.

Staff recommended three separate contracts: a personal services agreement with KNN Public Finance, LLC for financial advisory services, not to exceed $208,100; a legal services contract with Enzil Galvan LLP for bond counsel and disclosure counsel services, not to exceed $441,000; and a fiscal consultant contract with Kaiser Marston Associates, Inc., not to exceed $141,000. Jones described the fiscal consultant’s role as projecting revenues from residual property tax increment and computing debt-service coverage ratios.

Commission discussion focused on the fiscal consultant’s data sources and on procurement authority. Commissioner Mark Miller asked whether the fiscal consultant would pull assessed value and controller data; Jones said the consultant would use assessor and controller information to estimate residual tax increment and coverage. Commissioner Shattuck asked whether selection of advisors could be delegated to the director; Director Kozlowski said current purchasing rules limit director authority to $50,000 and that many of these contracts exceed that threshold, but staff will review administrative streamlining for next year.

Each contract was acted on separately. The roll-call results for all three were 4 ayes, 1 absent. Staff said OCII will return to the commission in April for approval of primary bond documents, then seek oversight-board approval and submit the bond package to the State Department of Finance for a statutory review period of up to 60 days, with a goal to issue bonds by January 2027.

The commission’s votes: KNN Public Finance (financial adviser) authorized not to exceed $208,100; Enzil Galvan LLP (bond and disclosure counsel) authorized not to exceed $441,000; Kaiser Marston Associates (fiscal consultant) authorized not to exceed $141,000. All three motions carried on 4–1 roll-call votes (one commissioner absent).