This resolution approves a 75-year lease for city-owned property at 1515 South Van Ness Avenue to Casa Adelante SVN Housing, L.P. for the construction of a 168-unit affordable housing development, along with a loan of up to $45.2 million to finance the project. It also declares the property as "exempt surplus land" and confirms that the lease terms will benefit low-income households.
Resolution 1) approving and authorizing the Director of Property and the Director of the Mayor’s Office of Housing and Community Development (“MOHCD”) to enter into an Amended and Restated Ground Lease for real property owned by the City, located at 1515 South Van Ness Avenue (“Property”), with Casa Adelante SVN Housing, L.P. for a lease term of 75 years and one 24-year option to extend and an annual base rent of $15,000 (“Ground Lease”), in order to construct a 168-unit (including one manager’s unit) multifamily rental housing development affordable to low-income households and including a community-serving commercial space (the “Project”); 2) approving and authorizing an Amended and Restated Loan Agreement in an amount not to exceed $45,233,623 for a minimum loan term of 57 years (“Loan Agreement”) with Casa Adelante SVN Housing, L.P. to finance the development and construction of the Project; 3) adopting findings declaring that the Property is “exempt surplus land” pursuant to the California Surplus Lands Act; 4) 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; 5) 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 6) authorizing the Director of Property and/or the Director of MOHCD to execute the Amended and Restated Ground Lease and the Loan Agreement, and make certain modifications to such agreements, as defined herein, and take certain actions in furtherance of this Resolution, as defined herein.
How it got here
The legislation originated from the need to develop affordable housing at 1515 South Van Ness Avenue, prompted by the City’s acquisition of the property and subsequent planning efforts.
The City acquired the property at 1515 South Van Ness Avenue for $19 million to develop affordable housing.
MOHCD issued a RFQ to solicit qualified developers for the affordable housing project on the property.
The Planning Department approved the project under California AB 2162, allowing for ministerial approval of the housing development.
The Planning Department determined that the project is consistent with the General Plan and the eight priority policies of the Planning Code.
The committee recommended approval of a loan to Casa Adelante SVN Housing, L.P. for the project, amounting to $45,233,623.
The Board adopted the resolution approving the Amended and Restated Ground Lease and Loan Agreement for the project.
The Mayor approved the resolution, allowing the project to move forward.
Reconstructed from attached documents & the official record
The resolution approves a 75-year ground lease for city-owned property to Casa Adelante SVN Housing, L.P. to build a 168-unit affordable housing development for low-income households. It also confirms that the project aligns with city planning policies and allows for necessary actions to finalize the lease.
The resolution declares two city properties as exempt surplus land and affirms their use for developing 100% affordable housing with some commercial space. It also establishes a long-term ground lease for the properties with specific financial terms and confirms the Planning Department's approval for the projects under state legislation.