Renewal Program / Preservation
Acquisition/Rehabilitation
MOHCD's planned preservation includes the acquisition and rehabilitation of at-risk housing for households between 0-120% AMI to prevent the displacement of existing residents and loss of affordability from Ellis Act and Owner Move-In evictions, buyouts, condominium conversions, and demolitions. Based on the Housing Balance Report, an average of 400 units per year have been removed from protected status.
An example of an acquisition and rehabilitation project in the pipeline is 3254-3264 23rd Street. This project consists of 6 residential units serving households at an average of less than 80% AMI, and 5 commercial spaces. The sponsor acquired the site with conventional bridge financing in March 2020. The rehabilitation is expected to be completed in the Summer of 2021, when it will convert to permanent financing from the City through the PASS and SSP programs.
Sources eligible for this purpose include 10% of Inclusionary and Jobs/Housing Linkage Fees, 25% of condominium conversion fees, 40% of excess ERAF allocated to MOHCD, and the Housing Trust Fund. Additionally, the City makes below-market loans available for eligible projects through the Preservation and Seismic Safety (PASS) Program, which had capacity for up to $260 million in below-market loans when voters approved the modification of the Seismic Safety Loan Program in November 2016.
The estimated need to acquire and rehabilitate 400 units annually is approximately $1.9 billion through FY2031.
MOHCD-Subsidized Housing
MOHCD's planned preservation includes the recapitalization of existing 100% affordable housing that is owned and managed by private developers and monitored by MOHCD. About 15,500 units in MOHCD’s portfolio do not have any project-based rental or building operating subsidies to leverage additional debt, so they will need City capital subsidy to recapitalize.
An example of an existing MOHCD subsidized project in the pipeline for recapitalization is Throughline Apartments. This scattered site project consists of three buildings totaling 88 units serving households at an average of less than 30% AMI. Pending an award of competitive financing sources, construction is expected to begin in 2021 with completion in 2022.
Sources eligible for this purpose include the Housing Trust Fund and 40% of excess ERAF allocated to MOHCD.
The estimated need to recapitalize 15,500 units of existing MOHCD-subsidized housing is approximately $1.2 billion through FY2031.
HUD-Subsidized Housing
MOHCD's planned preservation includes the recapitalization of federally subsidized affordable housing that is owned and managed by non-profit or for-profit developers and monitored by the HUD. About 1,000 units of HUD subsidized housing are high-risk for loss of affordability over the next 10 years because these projects have either opted out of their HUD contracts or have year-to-year or soon-to-expire contracts and can convert to market-rate rents after the expiration of their affordability restrictions.
An example of a HUD-subsidized project in the pipeline for recapitalization is Frederick Douglas Haynes Apartments. This project consists of 104 units serving households at an average of less than 50% AMI. Construction began in August 2020 with an anticipated completion in January 2022.
Sources eligible for this purpose include the Housing Trust Fund and 40% of excess ERAF allocated to MOHCD.
The estimated need to recapitalize 1,000 units of existing HUD-subsidized housing is approximately $146 million through FY2031.
