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.
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.
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.
The development team acquired the property at 3300 Mission Street using a loan from the Housing Accelerator Fund.
MOHCD provided a $4,151,000 loan for the acquisition of the property and a $2,349,000 loan for predevelopment activities.
The Planning Department determined that the development met all standards for ministerial approval under AB 2011.
The committee recommended an increase in the loan to the Borrower for the Project to a total amount not to exceed $12,440,242.
The committee amended and recommended the resolution for the acquisition of the property and associated agreements.
The Board adopted the resolution approving the acquisition of the property and associated agreements.
Reconstructed from attached documents & the official record