2015 Affordable Housing General Obligation Bond




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In November 2015, over 74% of San Francisco voters approved Proposition A, a $310 million General Obligation Bond for affordable housing, to finance the construction, acquisition, improvement, rehabilitation, preservation and repair of affordable housing for low and middle income households.

The bond will address pressing housing needs by:

  • Investing in neighborhoods;
  • Developing and acquiring housing for a broad population, from families to seniors; transitional-aged youth to single working adults; and veterans to disabled households; and,
  • Meeting housing needs through a range of activities, including new multi-family construction, acquisition of existing apartment buildings, SRO rehabilitations, down payment assistance for first-time homebuyers, and other efforts that will effectively increase the affordable housing supply.

 

The 2015 Bond proposal allocates:

$100M
$50M
$80M
   $80M
TOTAL: $310M
Low Income Affordable Housing
Low Income Affordable Housing in Mission District
Public Housing (HOPE SF)
Middle Income programs, including Down Payment Assistance Loans (DALP)
 

 

FIRST ISSUANCE

On Wednesday, October 19, 2016, the City competitively sold $75.13 million in aggregate principal amount (plus net premium of $327,556) of City and County of San Francisco General Taxable Obligation Bonds (Affordable Housing, 2015), Series 2016F (the “Bonds”). The Bonds will constitute the first series of bonds to be issued from the aggregate authorized amount of $310 million.

The Bonds are rated AA+/Aa1/AA+ by S&P, Moody’s and Fitch Ratings, respectively.  S&P, Moody’s and Fitch Ratings maintain a rating outlook of "Stable" on the City's long term debt obligations. 

The competitive sale was conducted at 8:30 AM, at which time the City received 6 bids for the Bonds. Raymond James & Associates, Inc. was the successful bidder at a true interest cost (TIC) of 2.73%.  The cover bid was from Wells Fargo Bank, at 2.75%. The final bond maturity is June 15, 2036.

                     Proposed Uses        

Amount
40,600,000
24,000,000
6,000,000
3,803,014
74,403,014
 
148,806
578,180
215,588
111,969
 
75,457,557
Use
Public Housing
Low-Income Housing
Mission Neighborhood
Middle Income Housing-DALP and the Teacher Next Door Program
subtotal, project funds
 
CSA Audit Fee
Cost of Issuance
Underwriter's Discount
Bond Premium
 
TOTAL

PROGRESS TO DATE

  • Public Housing
    • The Sunnydale team acquired a vacant parcel for construction of new relocation housing. Bond funds will pay for master planning, predevelopment, acquisition and construction @ approximately $21 million.
      • Almost $5M disbursed/ encumbered
      • Construction to commence in Q4 2017
    • The Potrero team acquired a vacant parcel for construction of new relocation housing. Bond funds will pay for predevelopment and construction @ approximately $20 million.
      • Construction in Progress
      • Almost $18M disbursed/ encumbered
  • Low-income Housing
    • On September 15, 2016 MOHCD formally recommended predevelopment loans for funding through our recent NOFA (http://sfmohcd.org/nofas-rfp-rfq-bids-jobs) for four new multifamily developments that will bring more than 500 new affordable units to the Excelsior, Forest Hill, Mission, and Tenderloin neighborhoods. Through these loans, we anticipate to build apartments for both families and seniors, and include at least 20% of units set aside for homeless and other special needs households. Amongst the four sites, there are proposals for various community serving/public spaces, as well as an ambitious arts space proposal, in addition to the up to 529 apartments affordable to households earning less than 60% of median income. The projects recommended for funding are as follows:

      • Bridge Housing, proposing 114 units at 4840 Mission St. in the Excelsior, will receive $3 million to redevelop the site of a funeral home

      • Christian Church Homes, looking to build 150 apartments at 250 Laguna Honda Blvd., will get just under $2 million to build on a lot next to the Forest Hills Christian Church

      • The Tenderloin Neighborhood Development Corp. will receive $3 million for 122 units at 500 Turk St., a former tire and auto repair shop

      • Mission Economic Development Agency and TNDC will receive $3 million for 1990 Folsom St., a former baked goods manufacturing plant

    • The two projects that were not recommended for funding in this round: a proposal to develop 2524 Lombard Street in the Marina, submitted by Community Housing Partnership; a proposal to develop the corner of Ellis and Gough Streets on Cathedral Hill, submitted by John Stewart Company and Chinatown CDC.

      • Projcect Updates

        • 4840 Mission - On 6/7/2017, $3,000,000 was disbursed to Borrower to provide a portion of the purchase price for 4840 Mission.

        • 250 Laguna Hond - The developer has submitted an Environmental Evaluation Application (EEA) to SF Planning for the preliminary proposed project. The developer is continuing to conduct due diligence on the site and neighborhood outreach. They have hired a geotechnical consultant to evaluate the site and adjacent hillside and have met several times with adjacent neighbors about the geotechnical scope of work. The architect is working on different massing scenarios to present to the neighbors which incorporate a preschool at the site. The District 7 Supervisor’s office is providing resources for the preschool operator. MOHCD will take the predevelopment request to Loan Committee in Summer or Fall 2017.

        • 500 Turk - Loan Committee has approved predevelopment loan and the project sponsor finalized site acquisition in January 2017. The sponsor is working on design and entitlements and preparing a focused Environmental Impact Report under CEQA.

        • 1990 Folsom - MOHCD acquisition and predevelopment budget were revised and approved by loan committee in April 2017. Acquisition funds have been disbursed. Site permit drawings submitted to Planning July 2017.

    • Small Sites Program

      • All but one project to be funded by first issuance has an executed loan agreement. (Please see June 2017 Report for list of sites acquired)

      • Sites renovations are currently underway.

  • Middle-income Housing
    • Downpayment Assistance Loans (DALP) is now fully subscribed.
    • Teacher Next Door forgivable loans available now. These loans may be used in addition to the above DALP loans.
    • 15% of Seawall Lot 3221 devoted to middle-income units
      • Developer selection process complete and architectural work underway.
      • Construction loan closing estimated for FY 17-18, including $7MM for middle-income units.
    • MOHCD and SFUSD pursuing Teacher Rental Housing on SFUSD site. Predevelopment funding issuance anticipated 2018.