AGENDA SAN FRANCISCO HOUSING AUTHORITY BOARD OF COMMISSIONERS
Agenda Category:
Action- Housing Development & Modernization Department_____________
Agenda Title:
MEMORANDUM OF UNDERSTANDING WITH THE SF MAYOR’S OFFICE OF HOUSING AND SF REDEVELOPMENT AGENCY FOR PROPOSED REDEVELOPMENT OF THE HUNTERS VIEW HOUSING DEVELOPMENT
Presented By:
Barbara Smith, Housing Development & Modernization Manager____________
SUMMARY: Hunters View has been identified by the San Francisco Housing Authority’s (“SFHA”) 1997, 2002 and 2007 Comprehensive Physical Needs Assessments and the Mayor’s 2007 HOPE SF Task Force as a public housing site that is in need of revitalization. Entering into a Memorandum of Understanding (“MOU”) with the City and County of San Francisco, acting through the San Francisco Mayor’s Office of Housing (“MOH”) and the Redevelopment Agency of the City and County of San Francisco (“SFRA”), is the most effective means of achieving these goals and improving living conditions for residents of this site. The MOU affirms that Redevelopment Agency of the City and County of San Francisco (Agency), the Mayor’s Office of Housing (MOH) and the San Francisco Housing Authority (Authority), seek to pursue the revitalization of Hunters View pursuant to the principles and goals of HOPE SF, including replacement of all 267 public housing units with a mix of public housing ACC subsidized units and Section 8 Project Based Voucher subsidized units. The MOU also spells out the roles, responsibilities and commitments of the lead City agencies that are carrying out this ambitious redevelopment effort. [Continued on Page 2] Attachments:
Resolution Memorandum of Understanding
A copy of any attached documents are available at the clerk’s desk. DEPARTMENTS REQUESTED ACTION: Staff recommends adoption of this Resolution. EXECUTIVE DIRECTOR’S RECOMMENDATION:
Agenda Item No. _____ Date: __________
Hunters View MOU November 10, 2010 Page 2 Since May of 2007, the Agency has provided development and entitlement project management, executed a Disposition and Development Agreement for its 1.65 acre adjacent parcel of land, and approved over $15 M in predevelopment, construction and master planning funds. MOH has committed funding of over $18 M and the Authority has managed Phase 1 relocation, committed Phase 1 land (in the form of ground leases) and provided $8 M in funding. MOU General Terms, Roles and Responsibilities Authority Disposition of the 19.65 acre Hunters View property under ground leases for new public and affordable rental housing and fee simple for public rights of way, infrastructure improvements, open space and parcels for market rate homeownership housing. Seek HUD approvals, provide financing, collaborate on funding applications, and provide ongoing ACC and Section 8 subsidies. Continue providing property management, maintenance and repairs for existing housing. Provide outreach, engagement of residents. MOH Provide predevelopment, construction and master planning loans in amounts that will not exceed $32 M. Oversee community building and the development and management of resident services for the project and assist the developer resident engagement and employment. Ensure City agency collaboration. Agency Transfer fee-simple title to parcel at Keith and Fairfax. Provide predevelopment, construction and master planning loans in an amount not to exceed $30 M. Lead general project coordination for entitlements, financing and development. Provide contract compliance oversight of all procurement for the project and assist with workforce development. Residual Rent Payment Any Residual Rent Payment from the rental phases of the project will be considered Surplus Cash Flow and will be divided as described below. Proceeds of Sale of Authority Land for Homeownership Units Authority land sales proceeds for homeownership units will provide additional subsidy to build replacement public housing and be reloaned to the project. Surplus Cash Flow Annual surplus cash from the affordable rental housing identified for repayment of residual debt will be divided amongst the agencies based on the land and financial contributions of each party, however all excess cash flow that is generated from any phase will be re-loaned back to the project until the Hunters View revitalization is fully completed. Authority Right of First Refusal and Option to Purchase The Authority will have a purchase option and right of first refusal to acquire the affordable rental property at the end of the tax credit compliance period (15 years or earlier) and assume all of the City and Agency loans on the property subject the Authority providing plans for performing ownership functions and property management.
RESOLUTION NO. ____________________ ADOPTED____________________________
RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO A MEMORANDUM OF UNDERSTANDING BY AND AMONG THE HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO (AUTHORITY) AND THE CITY AND COUNTY OF SAN FRANCISCO, ACTING BY AND THROUGH THE MAYOR’S OFFICE OF HOUSING (MOH) AND THE REDEVELOPMENT AGENCY OF THE CITY AND COUNTY OF SAN FRANCISCO (AGENCY) FOR THE PROPOSED REVITALIZATION OF THE HUNTERS VIEW HOUSING DEVELOPMENT WHEREAS, the SFHA’s comprehensive physical needs assessments going back to 1997 and the 2007 Mayor’s HOPE SF Task Force identified Hunters View as a public housing development that is in need of revitalization with enormous immediate capital improvement needs; and WHEREAS, the new Hunters View development will be a green and sustainable mixed-income community with new infrastructure, 267 public housing replacement units (comprised of public housing ACC units and Section 8 Project Based Voucher units), 226 affordable rental units, for-sale housing, open space, community space and amenities; and WHEREAS, the Hunters View redevelopment, as the HOPE SF pilot project, incorporates all of the HOPE SF goals into the revitalization and utilizes the “HOPE SF” financing structure with innovative financing from the City as well as funding from the Agency, SFHA, State, Federal and private sources; and WHEREAS, since the Hunters View revitalization plan is ambitious and requires the commitment of significant financial, land and project management resources from numerous City agencies, the Memorandum of Understanding (“MOU”) For the Proposed Redevelopment of Hunters View Housing Development has been prepared to define each entity’s role and responsibilities, anticipated contributions and expected benefits from the project, and agreement regarding disbursement of surplus cash from the project among the SFHA, the Agency and MOH; and WHEREAS, roles and responsibilities under the MOU include: (1) Authority – land (ground lease for rental housing and fee simple for infrastructure and for sale housing), financing and collaboration on funding applications, property management( of existing units), seeking HUD approvals, outreach for engagement for residents and ongoing ACC and Section 8 subsidies; (2) SFRA – land (fee simple), financing, project management, and contract and workforce compliance; and MOH – financing and resident services development and coordination; and WHEREAS, the proceeds of sale of SFHA land for the purpose of developing homeownership units will provide additional subsidy to build replacement public housing that will be re-loaned back to the project; and
WHEREAS, surplus cash from the affordable rental housing that remains at the end of each year for repayment of residual debt will be divided amongst the agencies based on the land and financial contributions of each party, however all excess cash flow that is generated from any phase will be reloaned back to the project until the Hunters View revitalization is fully completed; and WHEREAS, the Authority shall: (1) have a purchase option and right of first refusal to acquire the Master Developer’s or Partnership’s interest in the affordable rental property at the end of the tax credit compliance period (15 years or earlier) and (2) assume all of the City’s and Agency’s loans on those portions of the property subject to the Authority providing the City with plans for performing ownership functions and property management; and
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO THAT: 1. The Commission authorizes the Executive Director to enter into a Memorandum of Understanding For the Proposed Redevelopment of Hunters View Housing Development by and among the Housing Authority of the City and County of San Francisco and the City and County of San Francisco, acting by and through Mayor’s Office of Housing and the Redevelopment Agency of the City and County of San Francisco, for the proposed revitalization of the Hunters View Housing Development. 2. This resolution shall take effect immediately. APPROVED AS TO FORM AND LEGALITY:
REVIEWED BY:
_________________________________ Tim Larsen, Acting General Counsel
Henry A. Alvarez III, Executive Director
Date:_____________________________
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