06. Affordable Housing
Enhancement Projects / Production
Production needs for very low, low and moderate-income housing total approximately $7B. The Plan allocates $844M towards these needs.
|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 730 Stanyan Street. This project will include approximately 120 units for individuals and families earning from 30-80% AMI, including formerly homeless young adults. The building will include a mix of studios, 1-bedrooms, 2-bedrooms and 3-bedrooms, and a generous offering of neighborhood serving, ground floor uses. Construction is expected to begin in 2022 with completion in 2024.
The majority of MOHCD’s sources of funding are eligible for new 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 allocated to MOHCD could be used for new construction.
The estimated need to continue the City's level of effort in these categories according to the draft 2022-2031 RHNA targets for the next cycle is approximately $6.6 billion through FY2031.
|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 and 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 50-120% AMI, and it will include a mix of studios 1-bedrooms, 2-bedrooms and 3-bedrooms. Construction is expected to begin in mid-2021 with completion in 2023.
Certain MOHCD sources of funding are eligible for production of moderate-income rental housing, including 60% of excess ERAF allocated to MOHCD, portions of the 2015 and 2019 General Obligation 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 in these categories according to the draft 2023-2031 RHNA targets for the next cycle is approximately $353 million through FY2031.
|TIDA - Treasure Island Development Authority
|The Disposition and Development Agreement (DDA) Housing Plan and Financing Plan for Treasure Island set forth a strategic framework for funding 2,173 of the housing units to be affordable units. Of these, 1,866 units are to be developed by the City with 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
|Treasure Island Community Development (TICD) is developing market rate housing in the first subphase of development on Yerba Buena Island. The Bristol, a five-story 124-unit building with 14 inclusionary affordable units, is currently in construction. Other market-rate flats and townhomes on Yerba Buena Island are beginning construction.
|OCII – Hunters Point Shipyard/Candlestick Point
|Through FY2031, 1,394 affordable housing units in 14 projects will be in various development stages (predevelopment, construction, completion and lease up). The individual projects will consist primarily of family rental affordable housing for households earning up to 60% 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 through FY2031 is approximately $490 million.
|OCII – Mission Bay South
|Through FY2031, 445 affordable housing units in three projects will be in various development stages (predevelopment, construction, completion, and lease up/sales). 291 units are under construction and were funded prior to FY2022. The individual projects will consist of permanent supportive housing for adults, family rental affordable housing, and moderate-income homeownership housing. These projects will serve households earning from 30% to 110% AMI.
Funding from OCII for 445 of these units through FY2031 is approximately $66 million.
|OCII – Transbay Transit Center
|Through FY2031, 323 affordable housing units in three projects will be in various development stages (predevelopment, construction, completion, and lease up). The individual projects will consist of senior rental housing and family rental affordable housing. These projects will serve households earning from 30% to 80% 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 through FY2031 is approximately $103 million.
|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, SFHA plans to convert the sites to Project-Based Vouchers, then transfer 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, and Plaza East. Disposing of these properties will allow the flow of funding needed to enhance the quality of life for the residents. The Housing Authority 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
|On Phases 1 and 2, conversion of 3,480 public housing units to Project Based Vouchers (PBV) under RAD addressed critical immediate and long-term rehabilitation needs and preserving affordability for very low-income residents by increasing revenue and by attracting new capital. In addition to RAD, the financing strategy as contemplated by the Plan relies upon HUD’s Section 18 Disposition/Demolition program which has permitted the Authority to obtain additional Housing Choice Voucher/Section 8 vouchers to supplement the RAD program.
On a third phase of RAD conversions for the HOPE VI sites, an additional 425 units were transferred to the new program by December 2020.
All 39 RAD projects utilize private debt, equity generated by the Low-Income Housing Tax Credit program, and soft debt from the 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 Authority sites while preserving existing affordability.