SOCIAL HOUSING
FINANCIAL FEASIBILITY ANALYSIS
City of South San Francisco
July 13, 2022
bae urban economics
Government Code Section 54957.5
SB 343
Agenda: 07/13/2022 Reg CC
Item # 14
DEVELOPMENT PROTOTYPES
Prototype 1 Prototype 2 Prototype 3
Site Size (Acres) 1.00 1.00 1.00
Number of Units 150 150 150
Affordability Levels
50% AMI 100% 100% 50%
Market Rate 0% 0% 50%
Unit Type
Studio 0.0% 0.0% 16.7%
1-BR 33.3% 33.3% 33.3%
2-BR 33.3% 33.3% 33.3%
3-BR 33.3% 33.3% 16.7%
Capital Funding Assumptions
City Gap Funding Yes Yes Yes
Low -Income Housing Tax Credits No Yes No
FINANCIAL FEASIBILITY SUMMARY
Project Type and Funding Plan
Prototype 1: Prototype 2: Prototype 3:
100% Affordable 100% Affordable Mixed-Income
150-Unit Project City Funding LIHTC and City Funding City Funding Total Development Cost $104,500,044 $104,500,044 $94,818,247 TDC Per Unit $696,667 $696,667 $632,122
Supportable Debt Amount $19,739,777 $19,739,777 $40,985,297 LIHTC Equity $0 $37,620,016 $0
City Gap Funding ($84,760,267) ($47,140,251) ($53,832,951) Per Unit ($565,068) ($314,268) ($358,886)
Sources: City of South San Francisco; BAE, 2022.
FUNDING CAPITAL STACK COMPARISON City Subsidy City Subsidy City Subsidy City Subsidy
SOCIAL HOUSING ASSESSMENT SUMMARY
• Potential for Faster Delivery
• Long-Term City Control
• High Upfront Costs
• High Capital Costs
($300k-$565k per unit)
• More Complex Transaction
Documents
(Co-Developer and Management Partners)
• Higher Development Risk
• Dependent on Developers
• Less City Control
• No Upfront Costs
• Low Capital Costs
($75k per unit)
• Less Complex Transaction
Documents
(Standard Loan Agreements, DA, DDA)
• Limited Development Risk
Social Housing Model Status Quo – City Support
AFFORDABLE HOUSING COST V. SPEED
City Capital Contribution and Risk
Low High
Housing Delivery Speed
Slow Fast
Current City Efforts
(Higher Leverage, Less City Risk, Reliant on Developers) Social Housing Model
(High City Costs, Higher City Risk, Faster
Delivery)
Unit Production Potential
$122 Million of Commercial
Linkage Fee
Social Housing=200-400 Units
Status Quo=1,600-2,500 Units
THANK YOU!
QUESTIONS AND DISCUSSION