Committee backs small‑sites refinancing and a Homekey bid to convert a SoMa building into young‑adult housing

The Mayor’s Office of Housing and Community Development asked the committee to approve Item 5: a permanent refinancing package for four small‑sites buildings owned by the San Francisco Community Land Trust (36 units across four properties) using bundled SSP/PASS financing to recapitalize loans, increase reserves and fund capital repairs. MOHCD staff explained bundling lowers finance and administrative costs and requested amendment to align the not‑to‑exceed amount with the final loan figure.

The Budget & Legislative Analyst recommended adjusting the resolution’s not‑to‑exceed amount downward to match the final loan amount; the committee adopted that change and voted to forward Item 5 to the full board with a positive recommendation.

The committee also received a separate presentation from the Department of Homelessness & Supportive Housing (HSH) on Item 6: a request to apply for up to $14.7M in state Homekey funds to acquire 1174 Folsom and convert it into 42 units of permanent supportive housing for young adults leaving homelessness. HSH noted the building’s layout — studio units with private bathrooms and indoor/outdoor spaces — fits the program model; staff said existing tenants will be relocated under relocation policy if acquisition proceeds.

Both measures were forwarded to the full Board with a positive recommendation; Item 5 was amended to lower the not‑to‑exceed loan amount per the BLA report. Committee members praised the small‑sites program and the efficiency of Homekey funding as a way to expand supportive housing quickly and with lower cost than new construction.

Next steps: Item 5 and Item 6 will be scheduled for full Board consideration; MOHCD and HSH will continue contract and relocation planning and finalize loan documents and Homekey application materials.