Commission approves tenure change at 603 Tennessee from ownership to rental to avoid foreclosure risk

The Planning Commission voted unanimously on March 16 to approve a mandatory discretionary review that changes the tenure of on‑site affordable units at 603 Tennessee Street from ownership back to rental.

Staff explained the project is a completed six‑story building with 24 dwelling units in Mission Bay; the NSR recorded earlier showed rental tenure for three on‑site affordable units, the sponsor had later administratively changed tenure to ownership, and the sponsor now requests changing tenure back to rental. Staff found the project code‑compliant and recommended approval.

The project sponsor and the architect told commissioners that market conditions and slower sales left the owner unable to sell the units; MOHCD staff said a marketing plan had been submitted and is under review with an expected turnaround of about 45 days and anticipated approval on March 31, which would allow release of temporary certificates of occupancy and marketing of the affordable units.

Commissioners approved the discretionary action to allow the rental tenancy; staff noted that a future owner seeking a conversion back to ownership would need to return to the commission.