Preservation and S Seismic S Safety ty ( (PASS) ) Program (2016 - PowerPoint PPT Presentation

Preservation and S Seismic S Safety ty ( (PASS) ) Program (2016 Affordable Housing GO Bond) CGOBOC Presentation December 2019 Mayor’s Office of Housing and Community Development City and County of San Francisco 1

Key Milestones: • Nov 1992 – Proposition A: $350M SSLP Program Approved • Nov 2016 – Proposition C: $260.7M PASS Program Approved • Feb 2019 – First Issuance: $72.4M 2019A • May 2019 – First closing Background • Dec 2019 – Ten closings totaling $26.7M, 104 residential units, 14 commercial spaces, loans performing with no defaults, no delinquencies, no workouts. PASS Program: Low-cost, long-term, and nimble debt financing not available on the conventional market Eligible Uses • Acquisition/rehabilitation, preservation of affordable housing • Small Sites (buildings with 5-25 units) Larger multifamily and mixed-use residential buildings (25+ units) • • Single-Room Occupancy hotels (SRO) • Seismic retrofits of unreinforced masonry buildings (pursuant to original 1992 SSLP authority) What’s not eligible • New construction • Acquisition without rehabilitation Mayor’s Office of Housing and Community Development 2

Displacement Mayor’s Office of Housing and Community Development 3

PASS & SSP PASS vs. Conventional Bank Financing OPERATING BUDGET 1201 Powell Street Affordable Rents 247,303 ~50% AMI rents Operating Expenses 139,207 Sponsor CCDC Neighborhood Nob Hill, District 3 Net Operating Income 108,096 Amount available for debt service Loan Closing Date June 28, 2019 Program Type PASS SOURCES & USES Number of Units 13 studios Conventional Loan PASS Loan Remarks 4 one bedrooms 17 total units 5.50% 3.41% Interest Rate 30 40 Loan Term (years) Total Bond Funding $2.1 million 1.15 1.10 Debt Coverage Ratio Total Development Cost $8.1 million 93,997 98,269 Net Available for Debt Service SOURCES Senior Loan 1,379,000 2,143,000 Small Sites Program (SSP) Gap 6,692,000 5,928,000 $764k reduction in City funded gap Total Sources 8,071,000 8,071,000 USES Acquisition 4,312,000 4,312,000 Rehabilitation 1,819,000 1,819,000 Soft Costs 1,940,000 1,940,000 Total Uses 8,071,000 8,071,000 Note: Figures are for illustrative purposes only. Mayor’s Office of Housing and Community Development 4

Progress Metrics of Success: • Demand for PASS financing continues to be very strong • $26.7 million invested to date • Robust pipeline for remaining funds and second issuance • Preserving permanent affordability of at-risk housing stock • 10 projects • 104 residential units • 14 commercial spaces with local businesses • San Franciscans kept in their homes • 196 residents stabilized • Household incomes averaging <60% AMI, including seniors, multigenerational families, and people of color. • Strong loan performance • No defaults, no delinquencies, no workouts Mayor’s Office of Housing and Community Development 5

Anticipated Pipeline: Pipeline & 1 st Issuance 2 nd Issuance 3 rd Issuance Total Amount 2019A 2020X 2023X Next Steps Par Amount 260,684,550 72,420,000 96,060,000 92,204,550 Projects 80 28 24 28 Residential Units 1,323 396 459 468 Commercial Units 84 21 33 30 Next Steps: • Originations • Pipeline refinement and development • Issuance of Series 2020X • Performance tracking and reporting Mayor’s Office of Housing and Community Development 6

Preservation and S Seismic S Safety ty ( (PASS) ) Program (2016 Affordable Housing GO Bond) CGOBOC Presentation December 2019 Mayor’s Office of Housing and Community Development City and County of San Francisco 7