Committee forwards bond authorization to finance 184-unit affordable building at Transbay Block 2 East

The Office of Community Investment and Infrastructure (OCII) requested committee authorization on April 17 for conduit multifamily housing revenue notes in an aggregate principal amount not to exceed approximately $116 million to finance construction of Transbay Block 2 East, a 184‑unit affordable family rental building to be developed by Mercy Housing.

OCII staff said the transaction is conduit financing that does not pledge city funds for repayment. Block 2 East will be 100% affordable with unit affordability targeted between 40% and 80% of area median income and will set aside 40 units for households experiencing homelessness supported by a local operating subsidy. OCII reported that 2 West (a companion senior project) has already closed financing and begun construction; 2 East has received state bond allocation and committed financing sources, and OCII said it expects to close financing and start construction in late May with completion anticipated in spring 2026.

The committee had no public speakers for this item and voted 3–0 to forward the bond‑authorization resolution to the full Board with a positive recommendation. OCII noted that the loan package includes LIHTC equity, OCII loan and state program support, and that OCII will continue to monitor closing conditions and require final documentation before bond sale.