Resolution 1) approving and authorizing the Director of Property and the Director of the Mayor’s Office of Housing and Community Development (“MOHCD”) to enter into a Ground Lease for real property owned by the City located at 967 Mission Street (“Property”) with 967 Mission, LP, for a lease term of 75 years and one 24-year option to extend, and an annual base rent of $15,000 (“Ground Lease”) in order to construct a 100% affordable rental housing development consisting of 95-units (including one unrestricted manager’s unit) for senior households, known as 967 Mission, including 40 senior operating subsidy units, 24 local operating subsidy program units reserved for homeless seniors and seniors at risk of homelessness, and five units for referrals from the City’s plus housing list (the “Project”); 2) authorizing the Mayor and the Director of MOHCD to execute loan documents related to a loan to 967 Mission, LP, to provide financing for the development and construction of the Project; 3) approving and authorizing an Amended, Restated and Consolidated Loan Agreement in an amount not to e

This resolution approves a comprehensive plan for the development of 95 units of 100% affordable senior rental housing at 967 Mission Street in San Francisco. The project, known as "967 Mission," is a joint venture by 967 Mission, LP (John Stewart Company and Bayview Hunters Point Multipurpose Senior Services, Inc.).

Key Provisions & Funding:

• Ground Lease: The City will enter a 75-year ground lease (with a 24-year extension option) at an annual base rent of $15,000. This below-market rent is justified by the public purpose of providing affordable housing.
• City Loan: An Amended, Restated and Consolidated Loan Agreement for $44,318,000 (from various City funds including HOME-ARP, 5M Quarter Mile, 2019 GO Bond, Housing Trust, LMIHAF, and Condo Conversion funds) will finance the development. The loan term is a minimum of 57 years, not exceeding December 31, 2083.
• Total Project Cost: The overall development cost is approximately $79.5 million, with additional financing from a $26.6 million construction loan and $33.8 million in tax credit equity.
• Unit Breakdown: The 95 units (including one unrestricted manager's unit) will serve seniors, with specific allocations: 40 Senior Operating Subsidy (SOS) units, 24 Local Operating Subsidy Program (LOSP) units reserved for homeless seniors and seniors at risk of homelessness, and 5 units for referrals from the City’s Plus Housing list.
• Affordability: Units will target various income levels, including 30% AMI (LOSP, Plus Housing), 15% & 25% AMI (SOS), and 50% AMI (other seniors). The project must comply with HUD HOME-ARP requirements, ensuring at least 70% of units benefit qualifying populations.
• Timeline: Construction is scheduled to commence by February 15, 2026, complete by April 30, 2028, and achieve 100% occupancy by October 31, 2028.
• Environmental Review: The project is eligible for ministerial approval under California Government Code Section 65913.4 (SB 35 and 765) and is not subject to CEQA. Environmental reports identified fill material with elevated contaminants, requiring specific mitigation in the design.

This project will create 94 new affordable rental homes for seniors at 967 Mission Street, significantly expanding housing options for low-income, homeless, and at-risk seniors in San Francisco. It ensures long-term affordability through a 75-year ground lease and substantial city funding, providing stable housing and supportive services to vulnerable populations.

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