Committee backs Sunnydale infrastructure loan and Hertz Recreation Center funding; community leaders urge swift delivery

The Budget & Finance Committee advanced two linked items to support Sunnydale Hope SF’s next phase on Feb. 2: a proposed $25 million infrastructure loan to finance mass grading, utilities and site preparation for affordable housing parcels, and an accept‑and‑expand request for up to $10 million in private and city funds to design and build the Hertz Recreation Center adjacent to the development.

MOHCD/Hope SF staff explained that the infrastructure loan would finance three graded lots (two for affordable housing totaling roughly 170 units and one for a community center) and allow construction of Blocks 3A/3B to start in fall 2022 assuming leverage financing is secured. Rec & Park described the Hertz Recreation Center program — a ~12,000‑square‑foot facility with a full basketball court, multipurpose room and fitness spaces — and a funding plan that pairs $10 million in private commitments with $10 million in city bond funds and other allocations. The BLA advised that the project budget currently shows a $3.6 million shortfall; departments said they are pursuing state and federal grants to close the gap.

Local Sunnydale residents and community leaders called in strong support, saying the infrastructure and rec center will stabilize a long‑neglected neighborhood and provide services for youth and families. "This is something that's really needed," one caller said. Supervisors thanked HOPE SF, Mercy Housing and partners and moved the items to the full Board with positive recommendations after a brief roll‑call sequence.

BLA recommended approval of both items, noting consistency with prior development agreements and the need for departments to report back where funding gaps remain. The committee’s positive recommendation sends the loan and grant acceptance to the full Board for final approval.