A realistic action plan to build 21,000 SF housing units with 6,000 affordable homes

No Upzoning Is Needed To Accelerate The Approved Treasure Island, Pier 70, Mission Rock, Power Station, And Candlestick Point Projects

Five visionary San Francisco waterfront new town projects are already approved and ready to build when funding for their essential infrastructure, affordable housing, public parks and community facilities is available. A citywide “Enhanced Infrastructure Finance Housing Development District” (EIFD) can provide that funding starting now: $500 million over the next 25 years.

Each master-planned waterfront development is the product of years of detailed and complex urban planning with extensive community input and full environmental review. All are guided by comprehensive development agreements between the City and their developers, including design standards, affordable housing requirements for at least 30% of all units, and commitments for community facilities and quality management of all the new public open spaces.

HOW TO GET THE HOUSING BUILT: INVEST $500 MILLION IN OUR CITY’S FUTURE

San Francisco can dramatically accelerate these five waterfront projects with new funding for their most important public benefits: waterfront parks, affordable housing, and necessary infrastructure. $75 million of citywide tax increment bonds each for the previously approved Pier 70, Power Station, Mission Rock, and Treasure Island projects can support substantial new housing development, market and affordable, within the next 5-10 years. And $200 million for the Candlestick Point project can produce significant residential development 10-20 years from now. To get the job done within the next 20 years, the City legislature can now establish a 30 year $500 million citywide tax increment Housing Development Finance District, technically an Enhanced Infrastructure Finance District (EIFD), that can fund public infrastructure, new parks, and affordable housing. Thanks to the 2019 TODCO-sponsored AB464 state legislation, nonprofit community facilities and small businesses can also be assisted.

TECHNICAL BACKGROUND DETAILS

• A citywide EIFD would include all properties in San Francisco that are not already included in an existing tax increment financing district, like Mission Bay. The principal source of annual citywide tax increment is not new development (although that counts) – it is the ongoing increases in the assessed values of properties when they are sold and re-sold, a dependable long-term economic process. The 2022 Financial Analysis prepared by Kosmont Companies for TODCO excerpted below provides full details for establishing a new San Francisco Housing Production EIFD.

• All five waterfront projects are also tax increment districts now, but they have limited or no available tax increment to use in the next 5-10 years because little or no taxable property has been built within them so far.

• Three of the four projects’ own tax increment funding depends substantially on future commercial development, like office buildings, that are years off. But new market housing development will start to provide tax increment as soon as it’s built.

• The projects’ ambitious waterfront public parks are vital to build first because they will provide the necessary amenity for the new residential development to be an attractive place to live. And they will be open to all residents of San Francisco to enjoy too, like the new Crane Cove Park next to Pier 70 today.

• The citywide EIFD can also provide the necessary local funding for the 6000 affordable housing units the projects include without using other City affordable housing funding needed in other neighborhoods. And the affordable housing sites are usually built first. Once the needed infrastructure is in place middle-income workforce housing can also be built on the designated affordable housing sites utilizing the City’s new revenue bond program.

• The EIFD funding can also pay for the projects’ nonprofit community facilities, like the planned Arts Center at Pier 70.

• Tax increment bond rates typically range from 4% to 6% depending on national interest rates. So each $75 million bond installment issued will need only about $5 to $6 million per year of the citywide tax increment revenues to repay over 30 years. This is the most cost-effective way to get the new affordable and market housing the City needs, 20,000 total units in the four projects, built by 2050.

Concept Prepared by Tenants and Owners Development Corp. (www.todco.org)

Tax Increment Funding Analysis by Kosmont Companies 2022

Founded in 1971 by TOOR, Tenants And Owners Opposed to Redevelopment (in Yerba Buena and South of Market), since 1976 TODCO has engaged in San Francisco redevelopment planning for Yerba Buena Center, Rincon Point/South Beach, Mission Bay, Treasure Island, and Central SOMA. TODCO spearheaded establishment of the South of Market Redevelopment Project, the Treasure Island Homeless Development Initiative (now One Treasure Island), and the Yerba Buena Gardens Conservancy. TODCO developed and operates 8 affordable residences in SOMA with 900 housing units, including 150 homes for formerly homeless San Franciscans.