OCII amends debt policy to reflect SB 107 and best-practice standards

The San Francisco Office of Community Investment and Infrastructure Commission voted 4-0 (one absent) on Oct. 5 to adopt amendments to its debt policy intended to reflect recent legislation and document strengthened debt-management practices.

Brie Porter, director for finance administration, told commissioners the update codifies recent legislative changes—most notably Health and Safety Code provisions often referred to as SB 107 that allow certain redevelopment entities to issue new-money bonds for affordable housing and infrastructure—and implements Government Code guidance on required policy elements. "The reason that we want to do this is because it gives our investors confidence that we are managing our debt portfolio according to all the best practices and current legislation," Porter said.

Porter said the policy had not been comprehensively updated since 2014, that staff reviewed GFOA standards and peer-agency policies, and that the draft received certification under the WPTA debt-policy review program. Commissioners asked about allowable financing for environmental review and related legal costs; bond counsel Juan Galvan advised that legal fees related to issuance or capitalizable project legal work can be financed in some circumstances, though structuring choices (tax-exempt versus taxable) depend on specifics.

The commission approved Resolution No. 32-2021 by roll call (4 ayes, 1 absent). Staff said the amended policy clarifies purposes for which debt may be issued, types of allowable debt (tax allocation bonds, CFD/Mello-Roos), staff roles, internal controls and approval procedures ahead of upcoming issuances.