OCII approves $59.2 million loan for 112-unit Hunters Point Shipyard affordable housing

The San Francisco Office of Community Investment and Infrastructure (OCII) Commission authorized a $59,200,732 permanent loan on a 4–0 roll-call vote to HPSY 50254 LP to fund construction of a 112-unit affordable housing project at Hunters Point Shipyard Phase 1.

Elizabeth Colomello, senior development specialist with OCII's housing division, told commissioners the loan package covers previously approved predevelopment funds and additional predevelopment costs. "Today's staff is asking for approval of a permanent loan so the development team and the city can apply for tax exempt bonds and low income housing tax credits," Colomello said, describing a $59,000,000 total that includes $3,650,000 in existing predevelopment funds and $751,605 in additional predevelopment funding.

The project spans Blocks 52 and 54 and will deliver 112 residential units (67 on Block 52; 45 on Block 54), including one manager's unit, two family childcare units and 62 parking spaces. Unit sizes will consist largely of one-, two- and three-bedroom homes, and the development will include eight four-bedroom units and a single five-bedroom unit. OCII staff said incomes will be targeted between roughly 30% and 50% of area median income — about $40,000 to $67,000 annually for a family of four under current metrics.

Colomello outlined loan terms and conditions: a 3% interest rate subject to adjustment at the time construction financing closes, and a 55-year term. She noted that roughly $55 million of the total is not accessible to the developer until financing awards are secured and a ground lease is approved and executed. She also warned that tax-exempt bond allocations are highly competitive: "we don't expect the project to receive an award unless there is a change to the scoring project process," she said, adding the team anticipates multiple applications may be necessary.

The staff presentation listed the development team and contractors: the Jonathan Rose Companies as lead developer, Bayview Hunters Point Multipurpose Senior Services as co-developer, Bethune Solomon as lead architect, Kermit Morris as associate architect, The John Stewart Company as property manager and a Baines Nivi joint venture as general contractor. Colomello said OCII will fund 218 units in the broader Phase 1 effort across designated standalone affordable housing sites.

Vice Chair Rosales sought to confirm the exact loan figure before the vote: "I just want to make clear that the loan agreement is not just for $59,000,000, but our documents say $59,200,732," he said. Commissioner Scott moved the authorization and Vice Chair Rosales seconded. The roll-call vote recorded Commissioners Brackett, Scott, Rosales and Chair Bustos voting yes; Commissioner Bicer was absent.

The commission also adopted environmental review findings pursuant to the California Environmental Quality Act before approving the loan. Colomello outlined next steps: on-site environmental testing (including an elective radiological scope) through the fall, with results expected by February or March; the commission will be asked to approve the project's ground lease once environmental and financing conditions are met, after which construction would begin (staff estimated mid-2022 with completion in 2024, subject to financing).

The commission's approval represents OCII's first construction funding commitment for a Phase 1 affordable housing site at the Shipyard; commissioners praised the high small-business-enterprise participation reported by staff and asked staff to continue outreach on parking allocation and design quality ahead of final approvals.

Funding and construction remain contingent on securing tax-exempt bonds and low-income housing tax credits and on the subsequent approval and execution of a ground lease. The commission's action does not release the bulk of construction funds until those conditions are met.