City Hall
1 Dr. Carlton B. Goodlett
Place
San Francisco, CA 94102-
4689
City and County of San Francisco
Legislation Details
File #:
Version:
2
220092
Name:
Ground Lease and Loan Agreement - Octavia RSU
Associates, L.P. - 78 Haight Street and 120 Octavia
Street - 100% Affordable Housing - Ground Lease
with Base Rent of $15,000 - Loan Not to Exceed
$26,746,467
Status:
Type:
Resolution
Passed
File created:
In control:
1/25/2022
Clerk of the Board
On agenda:
Final action:
2/25/2022
Enactment date:
2/25/2022
062-22
Enactment #:
Title:
Resolution 1) 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 78 Haight Street and 120 Octavia Street (“Property”) with the Octavia RSU
Associates, L.P. 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, 63-unit multifamily rental
housing development affordable to low-income households, including 32 units for Transitional Age
Youth, of which 15 units will be targeted to residents who qualify as homeless households under the
No Place Like Home Criteria, and including a childcare center (collectively, the “Project”); 2) approving
and authorizing a Loan Agreement in an amount not to exceed $26,746,467 for a minimum loan term
of 57 years (“Loan Agreement”) to finance the development and construction of the Project; 3)
adopting findings declaring that the Property is “exempt surplus land” pursuant to the California
Surplus Lands Act; 4) determining that the less than market rent payable under the Ground Lease will
serve a public purpose by providing affordable housing for low-income households in need, in
accordance with Section 23.3 of the Administrative Code; 5) 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 6) authorizing the Director of Property and/or the Director of MOHCD to
execute the Ground Lease and the Loan Agreement, and make certain modifications to such
agreements, as defined herein, and take certain actions in furtherance of this Resolution, as defined
herein.
Sponsors:
Mayor, Dean Preston
Attachments:
1. Leg Ver1, 2. DRAFT Ground Lease, 3. DRAFT Loan Agreement, 4. DRAFT Deed of Trust, 5.
DRAFT Declaration of Restrictions, 6. DRAFT Amended and Restated Secured Promissory Note, 7.
DRAFT Promissory Note, 8. Loan Committee Approval Memo 011422, 9. PLN Ntc of Final Approval
022120, 10. Amended RFP 081617, 11. Form 126 - Ground Lease, 12. Form 126 - Loan Agmt, 13.
BLA Rpt 020922, 14. Cmte Pkt 020922, 15. Leg Ver2, 16. Board Pkt 021522, 17. Leg Final, 18. Form
126 Final - Ground Lease, 19. Form 126 Final - Loan Agmt
Action By
Date
Action
Result
Ver.
RECEIVED AND ASSIGNED
President
1/25/2022
1
AMENDED, AN AMENDMENT OF THE
WHOLE BEARING SAME TITLE
Budget and Finance Committee
2/9/2022
1
Pass
RECOMMENDED AS AMENDED
Budget and Finance Committee
2/9/2022
2
Pass
ADOPTED
Board of Supervisors
2/15/2022
2
Pass
APPROVED
Mayor
2/25/2022
2