Citywide Affordable Housing Loan Committee Meeting

This funding request has two parts: 1. a $9,167,544 loan requested by BRIDGE Housing Corporation (Sponsor) for the demolition of 23 buildings in the Potrero Annex, which coincides with the Potrero HOPE SF Phase III demolition area, and 2. a $308,484 grant to support the MOHCD Community Development team for Services associated with the demolition. This funding is in addition to a predevelopment loan of $778,501 to the Sponsor for demolition and a predevelopment grant of $242,646 to the MOHCD Community Development team for Services associated with demolition approved by loan committee April 4, 2025. This funding request and the previous predevelopment request total $9,946,045 as a loan to the Sponsor for demolition, and $551,130 as a grant to the MOHCD Community Development team for Services.

Due to the significant life safety concerns that the current buildings in the Potrero Annex present, the Sponsor is planning to demolish the 23 buildings in the Annex once current residents can move to the newly completed EVE Community Village (Block B) building, which is anticipating lease up by August 2025. Target start of demolition is estimated for September 2025 and expected to be completed by May 2026.

Regarding Services, this funding request includes an additional $65,838 for maintenance and operations of a community garden through June 2026 that will be relocated from the demolition area to a site in the Potrero Annex. It also includes $242,646 for continued community stewardship services from January 2026 through June 2026. The previous predevelopment request included funding of $242,646 to cover Services associated with demolition through December 2025. Community services July 2026 and beyond will be defined in the coming months in conjunction with the current planning efforts to consolidate and ensure the efficacy of future Potrero community services for the site.

The Sponsor is requesting that the predevelopment loan terms be updated to match the terms in this demolition loan request from 0% interest, 57-year loan, Deferred, In-kind transfer of work product to City to 0% interest, 3 years, possibility of two 1-year extensions, Deferred, In-kind transfer of work product to City.

BRIDGE Housing Corporation

MOHCD Staff request approval of the Program Guidelines for the new Supportive Living Preservation Program (SLPP). SLPP intends to expand opportunities for people receiving, or who will receive, supportive services to live in communal, neighborhood-based settings with appropriate on-site or on-call services and/or treatment (“Supportive Living”) by providing acquisition and rehabilitation loans to Borrowers that have, or by closing will have, an active contract or grant agreement with another City Department (“Partner Department”) for the provision of operating costs, building-related expenses, and/or supportive services. Partner Departments are also expected to provide the capital for the acquisition and rehabilitation loans. SLPP also establishes roles and responsibilities for Partner Departments, which will be memorialized in a Memorandum of Understanding to be executed with each Partner Department following Loan Committee approval.

Mayor’s Office of Housing and Community Development