Council approves amendment to affordable housing agreement to help Terracina compete for tax credits

The City Council voted to authorize the city manager to execute the first amendment to the affordable housing obligation satisfaction agreement for the FMC Willow and Harbor Pointe projects, a change aimed at allowing the Terracina affordable housing project to apply competitively for low-income housing tax credits (LIHTC).

Housing Policy and Programs Manager Michael Coolum told the council the Terracina building includes 91 affordable units (41 one-bed, 26 two-bed, 23 three-bed), one manager's unit, and 100 parking spaces. He said title delays tied to an SFPUC dispute prevented the affordable-housing developer, USA Properties, from applying for LIHTC on the original schedule. "This lower average affordability is necessary to be eligible for low income housing tax credits," Coolum said, describing a proposed change that would reduce the project's average affordability from 73% to 60% by converting some very-low and moderate units to low-income levels.

Coolum said the amendment would also extend the construction completion deadline for the affordable housing component from December 31, 2027, to December 31, 2030, giving the developer additional application rounds if they do not secure credits in September. Leanne Thomas of USA Properties described typical parking allocation and operations, and emphasized the project's transit-oriented development design. Several councilmembers praised the project's three-bedroom units and retail elements and supported using the amendment to make the financing viable; Vice Mayor Jorgensen moved approval and the motion passed on a unanimous voice vote.