Small Sites Program Updates Available for Public Comment

MOHCD's Small Sites program has several policy updates that are open for public comment. The Small Sites program funds non-profits to help stabilize existing multi-family rental buildings of 5-25 units that are occupied by low- to moderate-income tenants. By stabilizing existing housing, the program's aim is to prevent evictions and rising tenant rents.

Two public meetings will be held to discuss these changes:

Location: San Francisco Mayor’s Office of Housing and Community Development
1 South Van Ness Avenue, 5th Floor
San Francisco, CA 94103


  • Tuesday, October 10, 2017  3-5pm
  • Tuesday, October 17, 2017  3-5pm

Questions and comments can also be emailed to Ruby Harris, the Small Sites Program Manager, by October 20, 2017:

PDF iconSmall Sites Program Guidelines (draft for comment) (PDF)

PDF iconSmall Sites Program Guidelines (Redlined draft) (PDF)

Substantive changes to the guidelines are:

Page 1:

  1. Section IA(3) “Building Type” – Added the ability to legalize existing unpermitted units that meet minimum livability standards through SSP
  2. Section IA(4) “Building Type” – Included a reasonable acquisition price standard
  3. Section IB(1) “Site Selection Criteria” – Clarified that at-risk buildings include those where tenants are enduring harassment, threats of eviction, and have received buy-out offers

Page 2:

  1. Section IIA(2) “Maximum City Subsidy” – Increased the maximum subsidy per unit for a 3-9 unit building to $375,000
  2. Section IIA(3) “Maximum City Subsidy” – Increased the maximum subsidy per bedroom for an SRO or group housing building to $175,000

Page 4:

  1. Section IID(3)(c)(iii) “Cash-out Refinances” – Added a requirement that repayment of MOHCD’s loan be accelerated if adequate cash flow is available at refinance

Page 5:

  1. Section IIE(1)(h) “Income and Rent Restrictions” – For households whose incomes are over the welfare property tax limit, rents may go up to 120% of Area Median Income
  2. Section IIE(1)(j)(i) “Income and Rent Restrictions” – Allows for 1 unit in a building acquired with the assistance of SSP to be overcrowded if the sponsor has an acceptable relocation strategy

Page 8:

  1. Section IIIB(7) “Suggested First Loan Terms” – Clarified that no cross-collateralization is allowed

Page 9:

  1. Section IVB(4) “Replacement Reserve Deposits” – Clarified that commercial “units” are to be included in the total unit count and contribute to replacement reserves
  2. Section IVB(5) “Capitalized Vacancy Reserves” – Added guidance on sizing capitalized vacancy reserves
  3. Section IVC(1) “Developer Fee” – Added language allowing additional developer fee for accessory dwelling units
  4. Section IVC(2) “Asset Management Fee” – Increased the asset management fee by an additional $10 PUPM to include sponsor costs such as monthly accounting and compliance

Page 10:

  1. Section IVE(1-2) “Relocation” – Added relocation requirements

Page 11:

  1. Section VI(B) “Construction Management Fees” – Added language allowing additional construction management fee for accessory dwelling units
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