San Francisco issues $130M in tax allocation bonds for affordable housing projects

In a recent San Francisco government meeting, officials discussed the authorization of new tax allocation bonds aimed at financing affordable housing projects. The proposed bonds, not exceeding $130.4 million, are intended to support the construction of 386 affordable housing units across three projects in Hunters Point Shipyard and Mission Bay South.

The interim executive director highlighted the importance of tax allocation bonds as a key funding source for the city’s enforceable obligations, particularly in the context of the ongoing housing crisis. The meeting underscored the city’s commitment to addressing affordable housing needs, with plans to finance the construction of a total of 4,256 units, of which 140 are currently in production and 913 are in predevelopment.

The financial team provided a detailed breakdown of the bond proceeds, estimating that approximately $123.7 million would be allocated to project funding, with additional amounts set aside for debt service reserves and issuance costs. The selection of Citigroup Global Markets as the lead underwriter for the bond issuance was also confirmed, following a competitive process that attracted 16 proposals.

Looking ahead, the timeline for the bond issuance includes a review by the oversight board on July 26, followed by a submission to the Department of Finance. If approved, the city anticipates pricing the bonds in early October, with a goal to close the issuance by the end of that month.

The discussions during the meeting reflect San Francisco's ongoing efforts to tackle housing shortages and enhance community development through strategic financial planning. As the city moves forward with these initiatives, the successful issuance of these bonds could play a crucial role in expanding affordable housing options for residents.