Supervisors advance $260M COP package but press MOHCD for faster NOFAs and SRO elevator timeline

The Budget and Finance Committee on May 10 forwarded to the full Board a three-part package to authorize refunding and new issuance of Certificates of Participation (COPs) that could refinance existing debt and provide up to roughly $146.8 million in new proceeds for affordable housing and capital projects. The Office of Public Finance estimated minimum net-present-value (NPV) debt-service savings of about $7.9 million under a 3% savings threshold and noted the transaction could be priced and closed in the summer if market conditions allow.

Benjamin McCloskey of the Mayor’s Office of Housing and Community Development outlined proposed uses for the COP proceeds: $40 million for site acquisition for affordable housing, $20 million for public housing and HUD-subsidized cooperative repairs, $12 million for educator housing, $10 million for SRO elevator repairs, $30 million for nonprofit community facilities, and $34.8 million for financing costs and reserves. Vishal Triadhi from the Office of Public Finance provided financing-term estimates, including an illustrative true interest cost and an estimated annual debt service figure contingent on market conditions.

Multiple supervisors, led by Dean Preston, pressed MOHCD and other agencies for concrete NOFA issuance dates for the buckets intended to address life-safety needs in public housing and SRO elevators. Preston said, "I don't find the answers around the public housing piece to be satisfactory at all," and urged faster action so funds reach tenants facing immediate hazards. MOHCD and HSH described staffing shortages and legal/contractual complexities—MOHCD cited internal vacancies while HSH noted it must negotiate arrangements with privately owned master-leased properties. HSH's Emily Cohen said HSH is drafting an RFI for elevator repairs and "we plan to issue it this summer."

Chair Chan secured agreement that MOHCD would report back to the committee by September with the information the Budget and Legislative Analyst recommended. The committee recorded three ayes and advanced the COP-related ordinances to the full Board with a positive recommendation.