Definitions. | |
Program Management and Regulations. | |
Loan Terms. | |
Administration of Loans and Grants. | |
Reports to the Board. | |
Chapter Controlling. |
For purposes of this Chapter 120, the following terms shall have the following meanings:
“Acquisition Programs” means MOHCD programs for the acquisition, rehabilitation, and/or preservation of multi-family residential buildings, including but not limited to the Preservation and Seismic Safety Program under Administrative Code Chapter 66, MOHCD’s Small Sites Program, and any successor acquisition, rehabilitation, and preservation programs. Acquisition Programs does not include the acquisition of vacant land.
“Affordable Housing” means (1) a single-family residential home subject to a recorded restriction to ensure affordability based on income, or (2) a multi-family residential building, including any ancillary commercial space, where 100% of the City-subsidized residential units (not including a manager’s unit) are or will be subject to a recorded regulatory restriction to ensure affordability based on income or provide permanent housing for homeless or formerly homeless persons.
“Board” means the Board of Supervisors.
“Borrower” means a recipient of a Loan.
“City” means the City and County of San Francisco.
“Declaration of Restrictions” means an agreement to be executed by the Borrower or Grantee and recorded against Property as a condition to the receipt of a Loan or Grant, that restricts the use of the Property as Affordable Housing.
“Director” means the Director of MOHCD, or the Director’s designee.
“Fund” or “Funds” means the Housing Trust Fund under Charter Section 16.110, any fund administered by MOHCD under Article XIII of Administrative Code Chapter 10, or any other fund that is administered by MOHCD for Grants or Loans under this Chapter 120.
“Grant” or “Grants” means a grant of Funds made under a Program with a term of 10 years or longer.
“Grantee” means a recipient of a Grant.
“Homeownership Programs” means programs administered by MOHCD that provide income eligible San Francisco residents with Grants or Loans to purchase or rehabilitate single-family homes.
“HOPE SF Program” means the program to revitalize the Hunters View, Alice Griffith, Sunnydale, and Potrero HOPE SF communities by replacing public housing units and building new affordable units, including related infrastructure and community facilities.
“Loan” or “Loans” means a loan of Funds made under a Program, including the modification, refinancing, or restructuring of a loan, with a term of 10 years or longer.
“Loan Committee” means the Citywide Affordable Housing Loan Committee established by and advisory to the Mayor to make recommendations related to affordable housing development, as well as insuring that underwriting standards are uniform, review of funding applications are streamlined, and funding allocations are coordinated. The members of the Loan Committee include the directors or their designees from MOHCD, the Office of Community Investment and Infrastructure, the Department of Homelessness and Supportive Housing, and the Controller’s Office, and any successor to such agencies, and also includes the director of the San Francisco Housing Authority for Loans under the HOPE SF Program or other members appointed by the Mayor.
“LOSP” means the City's Local Operating Subsidy Program that provides operating subsidies to residential buildings providing supportive housing for homeless individuals and families.
“MOHCD” means the Mayor’s Office of Housing and Community Development, or any successor agency.
“Multi-family Programs” means MOHCD programs for the acquisition, development, construction, rehabilitation, and/or preservation of multi-family residential buildings and related infrastructure and ancillary commercial space, as Affordable Housing, including but not limited to the HOPE SF Program.
“Program” means an existing or future Affordable Housing program established or funded by the City and administered by MOHCD, including Acquisition Programs, Homeownership Programs, and Multi-family Programs.
“Program Regulations” means policies, procedures, rules, guidelines, manuals or regulations published by the Director and designed to implement a Program.
“Property” means any real property used for Affordable Housing or to secure a Loan or Grant.
(Added by Ord. 202-19, File No. 190679, App. 8/9/2019, Eff. 9/9/2019)
(a) The Director shall be responsible for the operation and management of all Programs that designate MOHCD as the administrative agency. The Director shall make Grants and Loans consistent with all Program requirements. The Controller, in consultation with the Director, shall disburse Funds consistent with the terms of approved Grants and Loans. The Director and the Controller may appoint agents and consultants to assist with Program administration.
(b) The Director shall publish from time to time Program Regulations as necessary and appropriate to implement each Program, consistent with applicable law and this Chapter 120. The Director shall publish all Program Regulations on MOHCD’s website and in such additional places as the Director deems appropriate, and provide copies or electronic links on request. The Program Regulations shall address matters such as Program and Fund administration, public and competitive processes to apply for Loans and Grants, compliance with applicable laws and regulations, affordability restrictions for the longest possible term, eligible uses of Funds, underwriting criteria, role of the Loan Committee in reviewing Loans and Grants, transaction processing, documentation, compliance monitoring, and enforcement. With the exception of Homeownership Programs, MOHCD shall submit any Program Regulations and any material amendments thereto to the Loan Committee for review and recommendations.
(Added by Ord. 202-19, File No. 190679, App. 8/9/2019, Eff. 9/9/2019)
(a) Loan Term and Repayment. The Director shall prepare Loan documents consistent with Program Regulations. So long as the applicable Property continues to be used for Affordable Housing, the Loan documents may allow payment from net cash flow, defer some or all payments during the term, and allow for debt forgiveness at the end of the term, all as determined by the Director.
(b) Security for Loans and Grants. The Director may require Loans or Grants made under this Chapter 120
to be secured by a deed of trust and other security instruments for the benefit of the City consistent with Program Regulations. The Director may record and subordinate deeds of trust and other security instruments as needed or appropriate to achieve and preserve Affordable Housing.
(c) Declaration of Restrictions. Any Loan or Grant for the acquisition, development, construction, rehabilitation, or preservation of Affordable Housing shall be subject to a Declaration of Restrictions with the longest possible term as determined by the Director, including, but not limited to terms of 55 years or longer or for the life of the applicable building. MOHCD shall not subordinate a Declaration of Restrictions to any third party financing instrument, except to the extent required by federal or state funding sources or financing for the new construction of Affordable Housing.
(d) Combining Loans or Grants. Subject to the applicable requirements of a Fund, Program, or Program Regulations, MOHCD may issue one or more Loans or Grants, in any combination, that the Director deems appropriate to create or preserve Affordable Housing. A Borrower or Grantee shall comply with the requirements of each applicable Program and funding source, which shall be included in the Grant or Loan documents.
(e) Purchase Option. To ensure long-term affordability, MOHCD may require Borrowers and Grantees to execute and record against the Property an agreement that provides the City an option to purchase the Property at a restricted value.
(f) Compliance with Transaction Documents and Applicable Laws. Each Loan and Grant agreement shall require Borrowers and Grantees to comply with applicable laws and regulations, including federal, state, and City regulations and Program Requirements. In addition, MOHCD shall work with the Controller, the City Attorney, and non-City funding sources to monitor compliance with all Loan and Grant agreements, Program Regulations, and applicable laws.
(Added by Ord. 202-19, File No. 190679, App. 8/9/2019, Eff. 9/9/2019)
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