Committee approves forwarding $1.5M loan increase for Sunnydale infrastructure phase, requests SFPUC cost‑share report

The Budget and Finance Committee on Nov. 15 forwarded to the full Board a resolution to increase the city loan to Sunnydale Infrastructure Phase 1A3 by about $1.5 million to a total not to exceed approximately $26.6 million, citing construction delays caused by extreme weather in early 2023, unforeseen site conditions, and expenses for a temporary power connection.

Jason Liu (HOPE SF policy director) and MOHCD staff said the phase will support two affordable‑housing buildings (about 170 units), a community center, and public right‑of‑way infrastructure on roughly 4 acres. Completion for the infrastructure phase was projected in late 2023; the community center and housing openings are now expected in 2024–25, with the larger Sunnydale master plan spanning multiple years.

BLA concerns: The Budget and Legislative Analyst noted roughly $200,000 in relocation costs and about $500,000 for the temporary power connection; PUC may reimburse a portion of the latter. BLA recommended MOHCD and SFPUC report back within 30 days on final reimbursement amounts and urged clearer cost‑sharing agreements for future affordable‑housing projects.

Supervisors’ questions: Supervisors pressed MOHCD on permitting bottlenecks across city agencies (DBI, PUC, PG&E) and asked whether the city can better coordinate to avoid repeated contingency erosion across phases. MOHCD committed to follow up and to report on PUC reimbursement status within the requested timeline.

Committee action: The committee voted 3–0 to forward the resolution to the full Board with the requested report‑back commitments.