OCII confirms up to $130.4M in tax-allocation bonds to fund 386 affordable units

The San Francisco Office of Community Investment and Infrastructure Commission on Oct. 5 confirmed the issuance of up to $130,400,000 in tax-allocation bonds to finance affordable housing obligations, approving the preliminary and final official statements and a continuing disclosure certificate by a 4-0 vote with one commissioner absent.

John Daigle, debt manager, described the transaction as the final commission action needed to move toward sale and closing of the 2021A affordable-housing bonds. He said prior steps—budget adoption, oversight-board approval and Department of Finance sign-off—are complete. "This will be the final action... the issuance of the 2021A affordable housing bonds," Daigle said.

Daigle told commissioners the current plan is to fund 386 affordable units in the agency’s remaining obligation: Hunters Point Shipyard (73 units), Mission Bay South 9A (148 units) and Mission Bay South 12W (165 units). The presentation noted a project fund planned at about $116,500,000; the resolution authorizes a not-to-exceed aggregate principal amount of $130,400,000 to allow flexibility in structuring. Daigle said the issuer’s S&P rating was affirmed at an A and described this issue as OCII’s first designation as a "social bond," aligning proceeds with social objectives such as affordable housing.

Commissioners asked whether the "social bond" label would change mechanics or pricing; staff and underwriters said it does not change legal structure but signals to investors how proceeds will be used. The commission approved the confirmations, official statements and disclosure certificate; staff said the next steps include releasing the preliminary official statement, investor marketing and pricing the bonds.