OCII reviews FY21–22 housing production: 21,914 units planned, financing and timeline constraints highlighted

The Commission on Community Investment and Infrastructure heard a draft annual housing production report on April 18 that OCII staff said covers fiscal year 2021–22 and the agency’s near-term pipeline.

"Overall, there will be 21,914 housing units, of which 32% will be affordable," Elizabeth Colomello, OCII housing program manager, told commissioners. She said nearly 40% of the total units will be in Hunters Point Shipyard Phase 2 and Candlestick Point. The draft report covers the period from July 1, 2021, through June 30, 2022.

Colomello described how OCII projects typically rely on tax-exempt bonds allocated by the California Debt Limit Allocation Committee (CDLAC) and low-income housing tax credits (LIHTC), which combined can cover about 60% of project costs. She said competitive scoring and rising construction costs and interest rates have affected project timing. "The competitive nature of these funding sources does mean that the timing of our projects may continue to be affected," she said.

The report highlights two projects funded in FY21–22 with OCII GAAP resources: a gap loan totaling $134,400,000 for Hunters Point Shipyard Blocks 52/54 (a 112-unit affordable family project) and a gap loan to Mission Bay South Block 9A, a 148-unit affordable homeownership project. Colomello said Block 52 and 54 are expected to start construction next month and be completed in May 2025; Block 9 began construction after the fiscal year and is on track for completion the following May.

Colomello credited adjustments in financing strategy and recent CDLAC scoring changes for improved competitiveness, citing an example where site-preparation financing was separated to strengthen applications. She also noted continued uncertainty: projects that rely on state financing may face timing delays.

Director Kozlowski told the commission that Senator Scott Wiener introduced legislation (referred to in the meeting as "Senate Bill 593") to allow a limited continuance of OCII’s tax-increment financing powers to fund up to 5,842 replacement housing units; Kozlowski said the bill was moving through the legislature and, if approved, would take effect in 2024.

Commissioners asked for more detail on timelines and delivery milestones, and for future presentations to include clearer, year-by-year spending and project timelines. Colomello said the draft report will be revised based on feedback and then posted to OCII’s website.

The workshop did not require action; staff asked commissioners for suggestions to incorporate into the final report and to send comments before publication.