OCII approves FY22–23 budget, CFD levies, parks contract and Mission Bay affordable‑homeownership deal

The successor agency to the redevelopment agency of the City and County of San Francisco (OCII Commission) met remotely April 19 and approved a slate of fiscal and development measures, including the agency's FY22‑23 budget, community facility district budgets, a parks management contract and a disposition and loan agreement for a 148‑unit affordable homeownership project in Mission Bay.

The commission approved the OCII proposed FY22‑23 operating and capital budget of $717,300,000. Interim Director Ramon Morales and budget manager Mina Yu told the commission the budget is driven by prior period authority and property tax revenue; the largest programmatic uses are affordable housing and infrastructure (notably Transbay and Mission Bay). Operating costs are roughly 2.6% of the total and staffing is budgeted at 55 full‑time equivalents (with staff reporting about 18 current vacancies). The motion to adopt the budget (Resolution No. 11‑2022) passed on a roll call of 4 ayes, 1 absent.

The commission also approved the FY22‑23 budgets and preliminary levies for seven Community Facilities Districts (CFDs) that fund maintenance and infrastructure in OCII project areas. Deputy Director Brie McCarter said the combined CFD budget is roughly $24.9 million with an estimated $18.9 million to be raised via special tax levies in 2022‑23; staff noted one unusual use of $70,000 in property tax to defease remaining debt in one CFD. The CFD package (Resolution No. 12‑2022) carried on the same 4‑1 attendance roll call.

For Hunters Point Shipyard Phase 1, the commission authorized a personal services contract with ParkLab Open Space Management for property management and park maintenance. Lila Hussain, senior project manager, described a reimbursable contract with a maximum amount not to exceed $3,194,760 for the initial term (3 years, 3 months) plus an option year; the package includes capital repair budgets and a management fee component. Commissioners asked about responsiveness and oversight; the proposer described daily inspections, a work‑order system and community liaison functions. The contract was approved by the commission.

On housing, the commission authorized a disposition and development agreement and a loan of $75,184,522 to 350 China Basin Partners LLC for the construction of Block 9A at 400 China Basin Street in Mission Bay South. Pam Sims, senior development specialist, said the 148‑unit project will be sold under OCII's limited equity program at AMI tiers ranging from 80% to 110% (unit mix: 51 one‑bed, 63 two‑bed, 35 three‑bed). Total development cost is estimated at $134,145,000 with OCII's loan representing about 56% of the budget; staff indicated an anticipated construction loan of approximately $51 million and noted required outreach, marketing and homebuyer counseling to make the limited‑equity homeownership units accessible to certificate‑of‑preference holders and other priority groups. The disposition and financing authorization passed on the same 4‑1 attendance vote.

Procedural items—approval of minutes from March 15 and a resolution making findings to continue teleconference meetings under California Government Code section 54953(e)—were also adopted.

Upcoming steps noted during the meeting include transmittal of the approved budget to the Mayor's Office and the Board of Supervisors, continued work on bond issuance timing (staff said some bond issuance was deferred to FY23‑24 ROPS per Department of Finance guidance), and the developers' required outreach and marketing plans for the Mission Bay homeownership project. The commission adjourned at 3:31 p.m.