The Board of Supervisors' Budget and Finance Committee voted Wednesday to recommend a financing deal for 2059-2065 Mission St., a building owned through the Mission Economic Development Agency (MEDA). The vote came one week after the committee put the item on hold amid an audit and the controller's concerns.
What the deal does
Under resolution File No. 261107, sponsored by the mayor and Supervisor Jackie Fielder, the city would buy the existing $20,258,781 San Francisco Housing Accelerator Fund loan on the building, take on up to $2,033,139 in remaining rehab and reserve funding, and restate it all as a city loan of up to $22,157,500 to MEDA Small Properties LLC for at least 40 years. The building has 35 homes, including a manager's unit, plus four commercial spaces, and is part of the city's Small Sites program. MEDA bought it in 2024 for $11.35 million, Mission Local reports.
Why supervisors moved ahead
On Oct. 19, the controller placed MEDA under its highest level of financial monitoring, citing 10 unresolved findings. Committee chair Matt Dorsey said the week's delay gave him more confidence that the loan is shielded from the nonprofit's organizational problems. "Last week, we did the right thing in trying to slow down and get more information," he said.
Alea Gage of the Mayor's Office of Housing and Community Development told the committee the building's projected income would exceed its first-year debt payments by 37%, above the 15% cushion the loan requires. The property carries a 99-year affordability restriction. Small Sites buildings are held in separate legal entities, and the city will review this one's finances quarterly, as it already does for 15 other MEDA properties. The deal now goes to the full board.