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OCII authorizes up to $175 million in new tax allocation bonds to fund Transbay and affordable housing projects
Summary
The commission authorized staff to pursue issuance of up to $175 million in tax allocation bonds under California Health and Safety Code section 34177.7 to finance Transbay infrastructure and affordable housing obligations; the vote was 4–0 (one absence).
The Commission on Community Investment and Infrastructure on July 15 authorized OCII to pursue new‑money tax allocation bonds in an aggregate principal amount not to exceed $175 million to finance Transbay infrastructure and affordable‑housing obligations.
Staff framed the action — listed on the agenda as item 5(f) and identified in materials as Resolution No. 23‑2025 — as approval to prepare bond documents for the 2026 A (taxable) and 2026 B (tax‑exempt) series, which together were estimated in staff materials at approximately $146.9 million but for which the commission authorized an upper limit of $175 million to accommodate cost increases or schedule changes.
Debt manager Nick Jones told commissioners the 2026 A bonds (taxable) are expected to fund the Transbay Underramp Park private‑use portion and 341 affordable housing units (165 units at Mission Bay South Block 4 East A and 176 units at Candlestick Point Block 11A). The 2026 B tax‑exempt series would fund the Transbay Underramp Park public‑use portion and related costs. Jones reviewed sources and uses, including bond proceeds for affordable housing, Transbay projects, debt service reserves, and costs of issuance.
Staff said the enabling authority for the financing is contained in the California Health and Safety Code, specifically sections 34177.7(a)(1) and 34177.7(a)(1) as cited in the staff presentation. The presentation described a timeline: return to the commission in October for approval of primary bond documents, oversight board consideration in early August, State Department of Finance review (a 65‑day window), pricing in December and closing in January 2026 if approvals proceed on schedule.
Public comment on the item was limited; commissioners praised the staff effort and emphasized the importance of advancing affordable housing and related jobs. The commission voted 4 ayes, 1 absent to authorize staff to proceed with the bond documentation and issuance process. Staff said final terms, interest rates and other pricing details will be set on the day of bond pricing and will be disclosed in the preliminary and final official statements prepared by disclosure counsel.
