Committee backs resolution to support $10 million state grant for 91-unit affordable housing at 850 Turk

The Land Use & Transportation Committee on July 18 voted to forward a resolution supporting MidPen Housing Corporation's application to California's Excess Sites Local Government Matching Grants program for a 100% affordable 91-unit development at 850 Turk Street.

Sheila Nicholas of the Mayor's Office of Housing and Community Development briefed the committee: under a 2019 executive order, state agencies identified excess state parcels including 850 Turk (an EDD parking lot) and 750 Golden Gate; MidPen responded to a state RFP and was awarded development rights and a $10 million state grant earlier in the year. The state requires a local resolution confirming support, anticipated budget and any fee waivers (Planning Code section 406) before releasing funds. Nicholas said the project would be funded with state and nonlocal sources and is not receiving local MOHCD capital funds; as a 100% affordable project, the site is eligible for fee waivers.

Supervisor Dean Preston, whose district historically worked on the project, said he would be a co-sponsor and expressed continued support. With no public commenters, the committee voted (Preston and Melgar recorded "aye") to forward the resolution with a positive recommendation.

The resolution asks the city to transmit a supporting resolution to the state to secure the $10,000,000 award and to confirm the availability of fee waivers that count as local match per the state program.

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"This building is not receiving local funding from MOHCD or other city sources. The building is funded solely with monies from the state and other sources," Sheila Nicholas said.

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The committee's positive recommendation will allow city staff to transmit the required supporting resolution to the state and help MidPen leverage the awarded state funds in further financing work toward a 2024 construction target.