Enhancement Projects / Production
TIDA C3.1 Rendering (4), Photo Credit Paulett: Taggart Architects
Production needs for very low, low and moderate-income housing total approximately $7B. The Plan allocates $844M towards these needs.
|
text |
text |
|---|---|
| MOHCD – Very Low and Low Income Housing | MOHCD’s planned projects include very low- and low-income housing that serve households between 0-80% AMI. The vulnerable populations served include formerly homeless individuals and families, transitional age youth, seniors, and families. An example of a very low- and low-income project in the pipeline is 2550 Irving. This project will include 90 units for individuals and families earning from 20-60% AMI, including 15 units for veterans. The building will include a mix of studios, 1-bedrooms, 2-bedrooms and 3-bedrooms; and 25% of the units will have 2 or more bedrooms for families. The ground floor will include residential community space, office space for the Sunset Chinese Cultural District, and a meeting room available to the community. Construction is expected to start in spring 2024. The majority of MOHCD’s sources of funding support new housing production for very low- and low-income households, although some impact or Area Plan fees are limited to use in specific geographies. No Place Like Home funds from the State are limited to use for chronically homeless individuals, and 60% of excess ERAF could be used for new construction. The estimated need to continue the City's level of effort for the production of very low- and low-income housing units according to the draft 2023-2031 RHNA targets for the next cycle is approximately $17 billion through FY2033 |
| MOHCD – Moderate Income Housing | MOHCD’s planned projects include moderate income housing that serves households between 80-120% AMI. The populations served include moderate income individuals, families, and educators. An example of a moderate-income project in the pipeline is 921 Howard Street. This project will include 203 units for individuals and families earning from 70-110% AMI, and it will include a mix of studios 1-bedrooms, 2-bedrooms and 3-bedrooms. Construction began in 2021 and is expected to be completed in 2023. During the pandemic, significant market fluctuations affected the rentability of moderate-income units. The market for rental units changed dramatically as renters adjusted to pandemic working patterns, with market rate rental rates decreasing to close to the pricing for moderate-income units in some neighborhoods. In 2022, market rate rentals are still unstable, and demand is closely tied to neighborhood, unit size, amenities, and bedroom mix. Certain MOHCD sources of funding can be used for production of moderate-income rental housing, including 60% of excess ERAF allocated to MOHCD, portions of the 2015 and 2019 Affordable Housing G.O. Bonds, and the Housing Trust Fund, which allow for the acquisition, rehabilitation and new construction of rental units serving households up to 120% AMI. Additionally, the G.O. bonds allow for first-time homeownership assistance programs, serving households up to 175% AMI and educators up to 200% AMI, and the Housing Trust Fund allows for first-time homeownership assistance programs for households up to 120% AMI. The estimated need to continue the City's level of effort for production of moderate-income housing units according to the draft 2023-2031 RHNA targets for the next cycle is approximately $6.6 billion through FY2033. |
| TIDA - Treasure Island Development Authority | Disposition and Development Agreement (DDA) Housing Plan and Financing Plan for Treasure Island set forth a strategic framework for funding 2,173 affordable housing units. Of these, 1,866 units are to be developed by the City, and the balance to be inclusionary units constructed by Treasure Island Community Development (TICD). Due to an escalation in costs since 2011, an increase in the number of affordable units to be delivered, and other changes, revised funding strategies will be required to close the resultant funding gap. TIDA’s current Capital Plan focuses on financing the initial six 100% affordable housing developments encompassing an estimated 776 units and the HealthRIGHT360 residential treatment facilities. These projects should transition current residents of the island eligible for replacement housing and several hundred net new affordable units. |
| TIDA – The Bristol Project | The Bristol, the first market-rate housing in the first subphase of development on Yerba Buena Island, is a five-story 124-unit building with 14 inclusionary affordable units. The project received its Temporary Certificate of Occupancy in April 2022, and final completion notices were issued in June 2022. Four additional market-rate parcels have been approved, and collectively these are planned to include 46 inclusionary affordable units. Other market-rate flats and townhomes with inclusionary units on Yerba Buena Island are also beginning construction. |
OCII – Hunters Point Shipyard Phase 1 |
In Hunters Point Shipyard Phase 1, OCII is putting forward state legislation that will increase the density of two affordable housing parcels in Hunters Point Shipyard Phase 1. The increased density will bring the total to 144 units. If successful, 327 affordable housing units among four projects will be in various development stages (predevelopment, construction, completion and lease up) through FY2033. The individual projects will consist primarily of family rental affordable housing for households earning up to 50% AMI. Funding from OCII for these units is approximately $117.7 million through FY2033 |
| OCII – Hunters Point Shipyard/Candlestick Point | The Candlestick Point project is currently on hold by the project area developer. OCII expects that the current schedule will change once the project is restarted. Therefore, funding amounts and unit production timelines are likely to change. The numbers here reflect the most recent schedule with some time added for the delays to date. Through FY2033, 951 affordable housing units among nine projects will be in various development stages (predevelopment, construction, completion and lease up) at Candlestick Point. The individual projects will consist primarily of family rental affordable housing for households earning up to 60% AMI. Funding from OCII for these units is approximately $476 million through FY2033. |
| OCII – Mission Bay South | Through FY2033, 880 affordable housing units in six projects will be in various development stages (predevelopment, construction, completion, and lease up/sales). Of these units, 289 units are now under construction. The individual projects will consist of permanent supportive housing for adults, family rental affordable housing, and moderate-income homeownership housing. OCII is putting forward state legislation that will increase the density of the remaining affordable housing parcels in the project area. If the legislation passes, these projects will deliver approximately 591 units of affordable housing, the funding for which is included in the Capital Plan. The state legislation allowing for the increased density is slated to go forward in the next legislative session in 2023. The Mission Bay affordable housing projects, including those currently in construction, will serve households earning from 30% to 110% AMI. Funding from OCII for 591 of these units is approximately $287 million through FY2033. |
| OCII – Transbay Transit Center | Through FY2033, 613 affordable housing units in four projects will be in various development stages (predevelopment, construction, completion, and lease up/sales) at the Transbay Transit Center. The individual projects consist of senior rental housing, family rental affordable housing, and affordable homeownership. These projects will serve households earning from 30% to 100% AMI. Some of the projects will include ground floor retail space and other related uses, such as child care. Funding from OCII for these units is approximately $86.7 million through FY2033 |
| SFHA – Disposition Projects | The Housing Authority is an important partner in the HOPE SF projects described in the Economic and Neighborhood Development chapter. To better support low-income residents in San Francisco, the Housing Authority converted the sites to Project Based Vouchers (PBV), then transferred ownership and management to a non-profit developer entity. The increased rent subsidies from the vouchers will enable the private owners to secure the additional resources needed to complete full rehabilitations of the sites. A combination of this financing with a public land trust in the form of a long-term ground lease and local developers is a public-private partnership consistent with SFHA’s re-envisioning. This structure ensures long-term affordability and oversight through the lend-lease structure, access to new funds not available to SFHA, and improved housing conditions. SFHA is also working on dispositions of other properties: scattered sites have been transferred through a disposition process to a non-profit housing agency; and Plaza East will be disposed though a Rental Assistance (RAD) blend program. Disposing of these properties will allow the flow of funding needed to enhance the quality of life for the residents. SFHA is committed to protecting the rights of the current residents in these units and meeting all requirements pursuant to HUD’s public housing regulations |
| SFHA – Rental Assistance Demonstration | During Phases 1 and 2, 3,480 public housing units were converted to Project Based Vouchers (PBV) under RAD, addressing critical immediate and long-term rehabilitation needs and preserving affordability for very low-income residents by increasing revenue and attracting new capital. In addition to RAD, the financing strategy relies upon HUD’s Section 18 Disposition/Demolition program which has permitted the Housing Authority to obtain additional Housing Choice Vouchers to supplement the RAD program. During a third phase of RAD conversions for the HOPE VI sites, an additional 304 units were transferred to the new program by August 2022. All 39 RAD projects utilize private debt, equity generated by the Low-Income Housing Tax Credit program, and soft debt from the Housing Authority and the City and County of San Francisco. This approach has resulted in a $2.3 billion conversion project and generated $830 million in construction and rehabilitation work that benefits the tenants of Housing Authority sites while preserving existing affordability. |
