The resolution authorizes the acquisition of a property at 1321 Mission Street for $86.5 million to support homelessness initiatives and allows the Department of Homelessness and Supportive Housing to apply for state funding to assist with the purchase. It also includes provisions for a purchase agreement, potential penalties for default, and confirms compliance with environmental and planning regulations.
Resolution 1) approving and authorizing the Director of Property, on behalf of the Department of Homelessness and Supportive Housing (“HSH”), to acquire certain property located at 1321 Mission Street (“Property”) for $86,500,000 plus an estimated $173,000 for typical closing costs, for a total anticipated amount of $86,673,000 (“Acquisition Cost”); 2) approving and authorizing HSH, on behalf of the City, to apply to the California Department of Housing and Community Development (“HCD”) for its 2021 Homekey Grant Program (“Project Homekey”) to purchase the Property; 3) approving and authorizing an Agreement of Purchase and Sale for Real Estate for the acquisition of the Property from Mission Smartspace Senior LLC (“Purchase Agreement”), which includes a liquidated damages clause of up to $5,000,000 in case of default by the City; 4) authorizing the Director of Property to execute the Purchase Agreement, make certain modifications, and take certain actions in furtherance of this Resolution and the Purchase Agreement, as defined herein; 5) affirming the Planning Department’s determination under the California Environmental Quality Act; and 6) adopting the Planning Department’s findings that the Purchase Agreement, and the transaction contemplated therein, is consistent with the General Plan, and the eight priority policies of Planning Code, Section 101.1.
How it got here
The legislation to acquire the property at 1321 Mission Street for supportive housing originated from the city's ongoing efforts to combat homelessness and was prompted by the Mayor's Homelessness Recovery Plan.
Voters approved Proposition C, establishing a gross receipts tax to fund homelessness services and housing, which laid the groundwork for future acquisitions like the one at 1321 Mission Street.
Mayor Breed announced a plan to acquire and operate 1,500 new units of Permanent Supportive Housing over two years, which included the acquisition of properties like 1321 Mission Street.
HSH issued a Request for Information to identify suitable properties for acquisition as Permanent Supportive Housing, which led to the identification of 1321 Mission Street.
The Planning Department found that the proposed acquisition of 1321 Mission Street was consistent with the General Plan and not defined as a project under CEQA, allowing the acquisition to proceed.
HCD issued a Notice of Funding Availability for the Homekey Program, which the City planned to apply for to help fund the acquisition of 1321 Mission Street.
The Board of Supervisors passed a resolution authorizing the acquisition of 1321 Mission Street for $86,673,000, including applying for Homekey funding.
Reconstructed from attached documents & the official record
This resolution allows the City to lease a property at 1321 Mission Street to The Tides Center for five years at a nominal rent of $1 per year, with the goal of providing permanent supportive housing for low-income households. It also includes provisions for the City to cover property management costs up to $19.5 million and confirms that the property is considered "exempt surplus land."
