2015 Affordable Housing General Obligation Bond

 
 
 



.

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
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

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
985,799
3,065
 
143,130,799
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
Capitalized Interest
Additional Proceeds (add into costs of issuance)
 
TOTAL

Progress to date

  • Public Housing
    • 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
    • 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.
      • Construction in Progress
      • Over $4M 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 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
    • Project Updates
      • 4840 Mission - In June 2017, $3,000,000 was disbursed to Borrower to provide a portion of the purchase price for 4840 Mission.
      • 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 - CEQA process completed on March 2018. Sponsor submitted schematic design approval.
      • 1990 Folsom - Project fully entitled on January 25, 2018. Loan Committee approved additional predevelopment and acquisition financing on March 2, 2018. Project expected to close and start construction February 2019.
    • Small Sites Program
      • Sites renovations are currently underway.
      • All but one project to be funded by first issuance has an executed loan agreement. (Please see March 2018 Report for further details)
  • Middle-income Housing
    • Downpayment Assistance Loans (DALP) is now fully subscribed for the first issuance of the bond.
    • Teacher Next Door forgivable loans available now. These loans may be used in addition to the above DALP loans.
    • 15% of 88 Broadway (Seawall Lot 322-1) is devoted to middle-income units
        %