This resolution approves a loan purchase agreement for $63.2 million to rehabilitate a 214-unit residential building at 1000 Sutter Street for permanent supportive housing for homeless households. It also authorizes additional funding and consolidates existing loans to ensure long-term financing for the project.
Resolution 1) approving and authorizing a Loan Purchase Agreement for the purchase of an existing loan in an amount of $63,191,071 for a purchase price not to exceed $48,000,000 from the San Francisco Housing Accelerator Fund (“SFHAF Loan”) related to the rehabilitation of a 214-unit single-room occupancy residential building for permanent supportive housing to homeless households, with two managers units, located at 1000 Sutter Street (the “Project”); 2) authorizing the assumption of obligations under the SFHAF Loan to disburse an amount not to exceed $17,000,000 for rehabilitation of the Project; 3) approving and authorizing an Amended and Restated Loan Agreement with 1000 Sutter LLC (“Borrower”) in an amount not to exceed $71,125,575 for a minimum loan term of 55 years (“City Loan Agreement”) to consolidate the SFHAF Loan with a prior loan from the City to Borrower after completion of the rehabilitation and provide permanent financing for the Project; 4) adopting findings that the Project and proposed transactions are consistent with the General Plan, and the eight priority policies of Planning Code, Section 101.1; 5) authorizing the Mayor and the Director of Mayor’s Office of Housing and Community Development (“MOHCD”) to execute the Loan Purchase Agreement and the City Loan Agreement, and make certain modifications to such agreements, as defined herein, and take certain actions in furtherance of this Resolution, as defined herein; and 6) authorizing the Director of MOHCD to enter into any additions, amendments, or other modifications to the Loan Agreement that do not materially increase the obligations or liabilities to the City and are necessary to effectuate the purposes of this Resolution.
How it got here
The legislation originated from the need to provide permanent supportive housing for homeless households in San Francisco, specifically through the rehabilitation of the Granada Hotel at 1000 Sutter Street.
The City of San Francisco submitted its first Homekey application requesting $45 million in partnership with Episcopal Community Services to purchase and rehabilitate the Granada Hotel for permanent supportive housing.
The Board approved the acquisition of the Granada Hotel and entered into a Standard Agreement with HCD, providing matching funds of approximately $31.7 million.
1000 Sutter LLC obtained a loan of $63,191,071 from SFHAF to finance the rehabilitation of the Granada Hotel, which was secured by a Deed of Trust.
The committee recommended that the City purchase the SFHAF Loan to reduce interest carry costs and consolidate it with a prior loan for permanent financing of the Project.
The Planning Department determined that the Project is consistent with the General Plan and the eight priority policies of Planning Code, Section 101.1.
The Board adopted a resolution approving the Loan Purchase Agreement and authorizing the assumption of obligations under the SFHAF Loan for the rehabilitation of the Granada Hotel.
Reconstructed from attached documents & the official record
