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Resolution#240884Passed
In plain English

The resolution authorizes the acquisition of three properties on Mission Street for $4.15 million to develop a 35-unit affordable housing project for low-income households. It also includes provisions for a long-term lease back to the developer, financing for construction, and ensures the project aligns with city planning goals.

Resolution 1) approving and authorizing the Director of Property, on behalf of the San Francisco Mayor’s Office of Housing and Community Development (“MOHCD”), to acquire real property located at 3300, 3306, and 3308 Mission Street (“Property") from 3300 Mission Partners L.P. (“Borrower”) for $4,151,000 under an Agreement for Purchase and Sale (“Purchase Agreement”); 2) placing the Property under the jurisdiction of MOHCD for use in constructing affordable housing; 3) approving and authorizing the Director of Property and the Director of MOHCD to enter into a Ground Lease to lease the Property back to the Borrower for a term of 75 years and one 24-year option to extend and an annual base rent of $1 (“Ground Lease”) in order to construct a 100% affordable, 35-unit multifamily rental housing development affordable to low-income households, including one manager unit, and ground floor commercial space (the “Project”); 4) approving and authorizing an Amended and Restated Loan Agreement in an amount not to exceed (NTE) $12,440,242 for a minimum loan term of 57 years (“Loan Agreement”) to finance the development and construction of the Project; 5) approving and authorizing a limited payment guaranty in an amount not to exceed $1,000,000 from MOHCD for the benefit of Wincopin Circle LLLP (“Limited Payment Guaranty”); 6) adopting findings declaring that the Property is “exempt surplus land” pursuant to the California Surplus Lands Act; 7) determining that the less than market rent payable under the Ground Lease will serve a public purpose by providing affordable housing for low-income households in need, in accordance with Section 23.30 of the Administrative Code; 8) 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; and 9) authorizing the Director of Property and/or the Director of MOHCD to make certain modifications to the Purchase Agreement, Ground Lease, Loan Agreement, and Limited Payment Guaranty, as defined herein, and take certain actions in furtherance of this Resolution, as defined herein.

Introduced: Sep 10, 2024
Final action: Oct 7, 2024
Official record ↗

How it got here

The legislation originated from the Mayor's Office of Housing and Community Development's initiative to develop affordable housing in response to a Notice of Funding Availability.

1
Notice of Funding Availability IssuedJanuary 27, 2023
Mayor's Office of Housing and Community Development (MOHCD)

MOHCD issued a Notice of Funding Availability to solicit qualified affordable housing developers for site acquisition and predevelopment for new construction projects serving low-income households.

Leg Ver1
2
Property AcquisitionJune 2023
3300 Mission Partners L.P.

The development team acquired the property at 3300 Mission Street using a loan from the Housing Accelerator Fund.

MOHCD Presentation 092524
3
Loan Agreement ExecutedDecember 21, 2023
MOHCD

MOHCD provided a $4,151,000 loan for the acquisition of the property and a $2,349,000 loan for predevelopment activities.

Executed Loan Agrmt - Acquisition 122123
4
Project Approved for AB 2011February 12, 2024
Planning Department

The Planning Department determined that the development met all standards for ministerial approval under AB 2011.

PLN Ntc of Proj Eligible for AB2011 Approval 021224
5
Loan Increase RecommendedAugust 16, 2024
Citywide Affordable Housing Loan Committee

The committee recommended an increase in the loan to the Borrower for the Project to a total amount not to exceed $12,440,242.

CAHL Cmt Approval 081624
6
Resolution Amended and RecommendedSeptember 25, 2024
Budget and Finance Committee

The committee amended and recommended the resolution for the acquisition of the property and associated agreements.

Cmte Pkt 092524
7
Resolution AdoptedOctober 1, 2024
Board of Supervisors

The Board adopted the resolution approving the acquisition of the property and associated agreements.

Leg Final

Reconstructed from attached documents & the official record

How they voted

AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLE
Budget and Finance Committee · Sep 25, 2024Pass
2-0 /1
RECOMMENDED AS AMENDED
Budget and Finance Committee · Sep 25, 2024Pass
2-0 /1

Legislative journey

PresidentSep 10, 2024
RECEIVED AND ASSIGNED
Budget and Finance CommitteeSep 25, 2024
RECOMMENDED AS AMENDEDPass
AMENDED, AN AMENDMENT OF THE WHOLE BEARING SAME TITLEPass
Board of SupervisorsOct 1, 2024
ADOPTEDPass
MayorOct 7, 2024
APPROVED