Citywide Affordable Housing Loan Committee Meetings

Mercy Housing California and Young Community Developers, acting through Transbay Block 4 West, LP, request predevelopment financing in the amount of up to $5,000,000 to support the development of 314 units of affordable rental housing, including units set aside for families experiencing homelessness, at Transbay Block 4 West located within the Transbay Redevelopment Project Area. The sponsors will seek preliminary gap loan approval in February 2027 in preparation for financing applications for Affordable Housing and Sustainable Communities funding in May 2027 and 4% low-income housing tax credits and tax-exempt bonds in February 2028. The Project is scheduled to begin construction by October 2028.

Mercy Housing California and Young Community Developers

Swords to Plowshares (“Sponsor”), a nonprofit serving Veterans, requests MOHCD approval of City permanent loan financing and authorization to apply for State Homekey+ capital funding to rehabilitate 629 Post Street into 63 units of deeply affordable housing with one ground-floor commercial space. The Project will provide 43 units of permanent supportive housing for unhoused and formerly unhoused Veterans and 19 units for the Safe Haven interim housing program, serving extremely low-income households. This request builds on the previously approved Small Sites Program (SSP) loan and reflects revisions to project scope and financing to maximize State leverage and reduce City capital investment.

The City approved an SSP acquisition loan in February 2023 following the Sponsor’s $14 million purchase of the property, with plans to convert the loan to permanent financing. Due to permitting and procurement delays, the SSP term was extended to June 2027. Changes in anticipated operating subsidies have led the Sponsor to pursue Homekey+ funding to address operating and capital needs. The Sponsor may apply for up to $13.3 million in Homekey+ funds, which would reduce the City’s capital contribution by approximately $7.2 million, despite increased construction costs. Construction is anticipated to begin in November 2026 and be completed in a year, with lease-up commencing prior to completion.

Swords to Plowshares