Resolution approving and authorizing the Director of Property and the Mayor’s Office of Housing and Community Development (“MOHCD”) to enter into a Ground Lease for Real Property owned by the City and located at 105 Wisteria Lane (“Property”) known as Balboa Reservoir Building A with Balboa Lee Avenue, L.P. (“Developer”) 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, 158-unit multifamily rental housing development affordable to very-low and low-income households, plus one manager’s unit; approving and authorizing an Amended and Restated Loan Agreement in an amount not to exceed $29,280,757 for a minimum loan term of 57 years (“Loan Agreement”) to finance the development and construction of the Project; adopting findings that the Project and proposed transactions are consistent with the General Plan, and the eight priority policies of Planning Code, Section 101.1; and authorizing the Director of Property and/or the Director of MOHCD to execute the Ground Lease, Loan Agreement, a

This resolution approves a 75-year ground lease (with a 24-year extension option) and a $29,280,757 loan agreement for the construction of Balboa Reservoir Building A at 105 Wisteria Lane. The project, developed by Balboa Gateway, L.P. (an affiliate of BRIDGE Housing Corporation), will create 158 100% affordable multifamily rental units plus one manager's unit, targeting very-low and low-income households (up to 80% AMI).

Financial Details:

• The ground lease has an annual base rent of $15,000.
• The loan, provided by the Mayor’s Office of Housing and Community Development (MOHCD), has a minimum term of 57 years at 0% interest, with repayment through residual receipts. Funding sources include $3 million from the Affordable Housing Fund Jobs-Housing Linkage Program, $4.96 million from Housing Trust Funds, $3.32 million from Housing Trust Fund Advance, and $18 million from 2024 GO Bond Funds.
• The overall project involves substantial financing, including over $100 million in senior construction loans and $33 million in state AHSC funding.

Project Scope & Affordability:

• The 158 units are distributed across various income levels: 41 units at 40% AMI, 38 units at 70% AMI, and 79 units at 80% AMI.
• Construction is slated to commence by May 1, 2026, and be completed by March 1, 2028, with 95% occupancy by October 1, 2028.
• The project is found consistent with the General Plan and the eight priority policies of Planning Code, Section 101.1, and is part of the larger Balboa Reservoir Project Development Agreement (Ordinance No. 142-20).