OCII approves Transbay Block 2 West loans and ground leases for 151 affordable senior units; 5d passes 4–1

The Office of Community Investment and Infrastructure on Jan. 16 approved financing and ground-lease agreements to build 151 affordable senior rental units and three community-serving commercial spaces at Transbay Block 2 West.

Jasmine Kuo, a development specialist with OCII, told commissioners the project will be financed in two tranches: an approximately $62 million permanent residential gap loan and an approximately $3 million community commercial loan. The residential component will set aside 150 studio and one-bedroom units for households earning between 15% and 50% of area median income, plus one manager’s unit. Thirty units will be supported through the city’s local operating subsidy program for formerly homeless seniors, and 60 units will be subsidized through the senior operating subsidy (SOS) program.

The agency’s presentation described a development program with no vehicular parking, ground-floor community spaces and commercial units restricted to public-benefit or community-serving uses. Kuo said the commercial units will be delivered to a “warm shell” condition and include an allowance for tenant improvements to improve prospects for neighborhood-serving tenants.

Commissioners focused questions on implementation details, notably contracting and local-hire targets and how the project’s occupancy priorities will be administered. Commissioner Kent Lim pressed for a spreadsheet showing contracting and workforce compliance numbers before final approval; Maria Pico, contract compliance specialist, said preliminary construction contracting numbers are being finalized and estimated the local portion at about 35% with an overall SBE share near 45%.

Public commenters from Bayview Hunters Point urged strong enforcement of preferences and contracting for local and minority-owned contractors. Oscar James said he wanted to ensure “certificate of preference holders have a preference on these units” and urged that community contractors receive project work.

When commissioners voted, the amended and restated residential loan agreement (item 5d) passed 4–1, with Commissioner Lim recorded as the lone no vote. The companion ground-lease and commercial loan (item 5e) passed unanimously. Chair Vivette Brackett convened the votes by roll call and announced the motions carried.

OCII staff said the approvals represent the final project-level authorizations needed to close construction financing and begin construction; staff said they expect to return with a construction recommendation in May and begin construction shortly thereafter.

The commission flagged follow-ups: staff agreed to provide more detailed contracting and workforce metrics, clarify marketing timelines, and confirm the operational details for SOS and LOSP-supported units. The approvals included CEQA notices that the actions are described in the Transbay redevelopment EIR materials.

The commission’s actions leave the project cleared to move toward financing close and construction, with commissioners and public urging strong implementation of local hiring, SBE contracting, and COP-holder outreach.