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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.
“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.
(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.
(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.
(a) Agreements. MOHCD shall prepare standard form Loan and Grant agreements, which will be subject to negotiation as deemed appropriate by the Director. The Board authorizes and delegates to the Director the authority to enter into and amend Loan or Grant agreements consistent with this Chapter 120 , including agreements that extend beyond 10 years as well as ancillary documents and agreements, to create, improve, or preserve Affordable Housing. The Director has the authority to enter into such agreements for the following, so long as they meet the requirements of this Chapter 120 :
(1) Loans or Grants that do not exceed $10,000,000 under Homeownership Programs, Multifamily Programs and Acquisition Programs;
(2) Grants under LOSP subject to annual appropriation by the Board of Supervisors; and
(3) Loans exceeding $10,000,000 for Affordable Housing that faces a life safety emergency where low-income residents are at imminent risk of losing their housing, subject to (A) the Controller’s determination that adequate funds are available and appropriated for the proposed disbursement, (B) the Director’s determination that the owner of such Affordable Housing has fully utilized all other sources of funding or financing available to the owner, and (C) the Mayor and the Board receiving at least 10 days’ advance notice of the Loan.
For all other Loans or Grants that exceed $10,000,000, including any modifications to a Loan or Grant that would increase the total amount to exceed $10,000,000, MOHCD shall obtain prior Board approval by resolution to the extent required under Charter Section 9.118(b).
(b) Loan Committee Recommendation. MOHCD shall consult with applicable City agencies and/or departments regarding new Loans and Grants, which may be accomplished through recommendations made by the Loan Committee. Prior to execution of any agreement, MOHCD shall have the Loan Committee review new Loans and Grants, including material modifications to existing Loans and Grants as determined by the Director, under LOSP, Multifamily Programs, and Acquisition Programs for the purpose of streamlining the review of funding applications and coordinating affordable housing development and services with other City agencies and/or departments. The members of the Loan Committee may, in each member’s discretion, choose to not recommend any proposed Loan or Grant, or make recommendations to reduce the amount of or to condition any proposed Loan or Grant.
(c) Funding Disbursement. MOHCD shall be responsible for approving the disbursement of Loan and/or Grant proceeds and monitoring performance of Borrowers and Grantees under this Chapter 120 and enforcing the applicable agreements. MOHCD shall establish commercially reasonable protocols to oversee the use and expenditure of Loan and Grant proceeds.
(d) Loan Servicing. MOHCD shall collect revenues due and owing under Loans and Grants, maintain records of all such revenues segregated by Program, and maintain annual statements of such accounts. Loan repayments shall be deposited into the applicable Fund in accordance with Program Regulations, and the Director shall work with the Controller to apply revenues toward repayment of bonds as and when required.
(e) Fees for Services. MOHCD may charge reasonable fees, including Loan origination and monitoring fees, and such other necessary fees of consultants and agents retained to administer any Program. MOHCD shall include a statement of the fees in the Program Regulations for each Program.
(f) Refinance and Loan Workouts. To preserve and maintain any Affordable Housing, the Director is authorized to refinance, restructure, modify, or extend the term of any Loan or Grant and any related agreements, provided that a new Declaration of Restrictions is recorded against the Property.
(g) Monitoring and Enforcement. MOHCD shall monitor compliance with Loan and Grant agreements, Declarations of Restrictions, and any other related documents. MOHCD may take such actions as are reasonably necessary to enforce such agreements and documents and collect on any security, including the foreclosure of any deed of trust, possession of rents and other revenues, or the demand and collection under any guaranty or other security instrument. MOHCD may also take action to protect its security or its interest in a Property, including curing a default under a senior loan or acquiring property at a tax sale, foreclosure, through a deed in lieu of foreclosure, or through a judicial process. The Board authorizes and delegates to the Director, following consultation with the Director of Property and the City Attorney, the right to accept a deed or other security or interest in property as part of any remedy or as may be needed to preserve Affordable Housing.
The Director shall submit an annual report to the Board, within 180 days following the end of each fiscal year, with a summary of all Loans and Grants made under this Chapter 120 for the prior fiscal year. The Director's report shall include the primary purpose of the Loan, principal amount, term, and interest rates, and other information, if any, regarding this Chapter that the Director chooses to include in the report. The Director’s report may be combined with any other reporting obligations.
To the extent that the provisions of this Chapter 120are inconsistent with the provisions of any ordinance related to the administration of Funds, the provisions of this Chapter shall control.