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. 

Raymond James & Associates, Inc. was the successful bidder at a true interest cost (TIC) of 2.73%. 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
 
75,130,000
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
 
TOTAL

Second issuance

On Tuesday, May 8, 2018, the City competitively sold $142.1 million of Series 2018D Taxable General Obligation Bonds (Affordable Housing, 2015).

The Bonds are rated Aaa/AA+/AA+ by Moody’s, S&P and Fitch Ratings, respectively.  Moody’s and Fitch maintain a rating outlook of "Stable" and S&P maintains a rating outlook of “Positive” on the City's long-term debt obligations. The Bonds are amortized over 20 years, with a final maturity of June 15, 2038. The City received 6 bids the Taxable Series 2018D Bonds. Wells Fargo Bank, National Association was the winning bidder at a TIC of 3.783%. Morgan Stanley & Co. LLC provided the cover bid at 3.817%.

The transaction closed on May 23, 2018. 

Amount
400,000
67,595,000
42,635,000
29,856,986
140,486,986
 
280,974
246,538
142,145
985,292
3,065
 
142,145,000
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
Oversight Committee
Underwriter's Discount
Additional Proceeds (add into costs of issuance)
 
TOTAL
 

Third issuance (final)

On Thursday, October 3, 2019, the City competitively sold $92.7 million of Series 2019C Taxable General Obligation Bonds (Social Bonds - Affordable Housing, 2015). The Bonds are rated AAA/Aaa/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 City received 8 bids for the Series 2019BC Bonds. Citigroup Global Markets Inc. was the successful bidder at a true interest cost (TIC) of 2.304%. The cover bid was from Raymond James & Associates, Inc.

The transaction closed on October 17, 2019.

Amount
38,088,366
7,316,887
803,201
45,528,394
91,736,848
 
183,474
504,895
92,725
207,058
 
92,725,000
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
Oversight Committee
Underwriter's Discount
 
TOTAL

Progress to date

  • Public Housing
    • Potrero
      • Block X construction is complete. The building is 100% occupied.
      • Phase II Infrastructure – This is the 1st onsite infrastructure phase. The sponsor is currently working on abatement and demo units within this footprint. Work on the horizontal infrastructure should start in November-2020, with completion expected in late 2021.
      • Block B Vertical predevelopment loan agreement was executed in mid-2017 and design development is underway. The sponsor intends to start construction in summer 2021.
      • Block R and Block Q comprise an estimated 95 units and are the first affordable projects in Potrero’s Phase 3. Predevelopment activity is expected to begin in by the end of 2021.
      • Over $18M disbursed
    • Sunnydale
      • Parcel Q construction completed in late 2019 And the project is fully leased up.
      • Sunnydale Block 6 started construction in late 2019, with completion expected in late 2021.
      • The Infrastructure Phase 1A-1 and 1A-2 is an 85,000 sq. ft. rectangular shaped area bordered by two new streets, pedestrian mews, and Blythdale Street. The Block 6 vertical development is located inside the rectangle, so that the surrounding streets and mews provide frontage to the housing development. Construction started in summer of 2019 and is expected to complete by end of 2020.
      • Sunnydale Block 3 is the third affordable housing site to be built and sits within Infrastructure Phase 1A3. The Sponsor envisions the project as two developments, built within 6 months of each other, for a total of 167 units. Both projects are in predevelopment planning and should start construction in Winter 2021 and Spring 2022.
      • Infrastructure Phase 1A3 is the second infrastructure phase for the site. The Sponsor received Loan Committee approval in June 2019 and is currently in predevelopment planning. Construction is expected to start in June 2021.
      • Over $20M disbursed
  • Low-income Housing
    • On September 15, 2016 MOHCD formally recommended predevelopment loans for funding 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 108 units at 500 Turk St., a former tire and auto repair shop
      • Mission Economic Development Agency and TNDC will receive $3 million for143 family housing units at 1990 Folsom St., a former baked goods manufacturing plan
    • Four addtional projects will be funded by the Housing Bond with the second and third issuance
      • MEDA and CCDC joint venture, proposing 94 affordable senior housing with 20% set aside for formerly homeless seniors at 1296 Shotwell
      • Bridge Housing and John Stewart Co joint venture, proposing 178 family housing and 21 units for middle income residents at 88 Broadway/ 735 Davis
      • Due to savings in 1990 Folsom (Mission) and 88 Broadway/ 735 Davis (Low-income & Middle-income) two additional projects are being funded by the Housing Bond - 681 Florida (Mission) & 482 Geneva (Low-income & Middle-income)
    • Project Updates
      • 4840 Mission - Predevelopment funds were disbursed to Borrower to provide a portion of the land purchase. Project received its SB 35 approval in July 2019. The anticipated construction start date is June 2021.  
      • 250 Laguna Honda - The project at 250 Laguna Honda is no longer moving forward due to cost considerations. No bond funds will be spent on this project.
      • 500 Turk - As of mid-February 2020, the construction for the project is underway, with a completion date of January 2022
      • 1990 Folsom (Mission) -  The project financing closed in March 2019 and construction has started. Completion is now expected in early 2021 due to general project delays.
      • 1296 Shotwell - Construction was completed in November 2019. To date, all 94 units have been occupied by seniors, including 40 units subsidized by the new Senior Operating Subsidy (SOS) with the City and 22 units occupied by homeless residents.
      • 88 Broadway/ 735 Davis - Project financing closed May 2019 and construction is expected to be completed in June 2021.
      • 681 Florida (Mission) - Project expected to be encumbered by October 2020 and completed in August 2022.
      • 482 Geneva/ Upper Yard - Project expected to be encumbered in January 2021 and construction to complete in March 2023.
    • Small Sites Program
      • Sites renovations are currently underway.
      • Bond funds for small sites to be fully expended by the end of 2020.
  • Middle-income Housing
    • Additional funds for Downpayment Assistance Loans (DALP) and Teacher Next Door (TND) are included in the second and third issuance.
    • DALP is now fully subscribed for the first issuance of the bond.
    • TND forgivable loans available now. These loans may be used in addition to the above DALP loans
    • Middle Income Projects
      • 88 Broadway/ 735 Davis - 21 units are devoted to middle-income residents
      • 43rd and Irving - 82 units for middle income SFUSD teachers. MOHCD and SFUSD issued a Request for Development Proposals for educator rental housing on October 3, 2017. At the recommendation of a selection panel, MOHCD awarded development rights to MidPen Housing in April 2018. Construction completion is expected Q2 of calendar year 2023