Title 1 — GENERAL PROVISIONS AND DEFINITIONS SEC. 43.15.1. TITLE.

This Article XV may be cited as the Workforce Housing and Affordable Middle-Income Revenue Bond Law.

(Added by Ord. 211-24, File No. 240726, App. 8/1/2024, Eff. 9/1/2024)

The Board of Supervisors hereby finds and declares that it is necessary and essential, serves a critical public purpose, and is a municipal affair, for the City to address its middle-income and workforce affordable housing crisis by issuing bonds to finance the acquisition, development, rehabilitation, and construction of housing for middle-income and workforce individuals and households. The City can promote such interests pursuant to this Article XV without adversely affecting areas outside the City and without conflicting with efforts by the State of California to solve problems of statewide

concern.

(Added by Ord. 211-24, File No. 240726, App. 8/1/2024, Eff. 9/1/2024)

This Article XV is full authority for the issuance of bonds by the City for the purposes described herein, and other purposes reasonably related and subordinate to the purposes described herein.

(Added by Ord. 211-24, File No. 240726, App. 8/1/2024, Eff. 9/1/2024)

(a) This Article XV shall be deemed to provide a complete, additional, and alternative method for taking the actions authorized thereby, and shall be regarded as supplemental and additional to the powers conferred by other laws, including the City’s ability to issue debt pursuant to Article I of this Chapter 43, and loan the proceeds thereof to an organization of the type described in Section 501(c)(3) of the Internal Revenue Code. The issuance of bonds under the provisions of this Article need not comply with the requirements of any other law applicable to the issuance of bonds.

(b) The purposes authorized hereby may be effectuated and bonds may be issued for any such purposes under this Article XV notwithstanding that any other law may provide for such purposes or for the issuance of bonds for like purposes and without regard to the requirements, restrictions,

limitations or other provisions contained in any other law.

(c) This Article XV shall not be construed to limit any power the City may have under any other State or local law, including the City’s ability to issue debt pursuant to Article I of this Chapter 43, and loan the proceeds thereof to an organization of the type described in Section 501(c)(3) of the Internal Revenue Code. Nothing contained in this Article shall be construed to prohibit the City from exercising any power granted under any other State or local law.

(Added by Ord. 211-24, File No. 240726, App. 8/1/2024, Eff. 9/1/2024)

Unless the context otherwise requires, the terms defined in this Article XV shall have the following meanings:

“AMI” (or “Median Income”) means the median family income, adjusted for household size, for the San Francisco Metro Fair Market Rent Area published annually by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937.

“BMR” means below market rate units.

“Bonds” means any bonds, notes, certificates, debentures, leases, or other obligations or evidence of indebtedness issued, incurred, or undertaken by the City pursuant to this Article XV and payable as provided in this Article.

“City” means the City and County of San Francisco or any entity controlled by the City and County of San Francisco.

“Cost” means the total of all costs incurred by or on behalf of the City to carry out all works and undertakings and to obtain all rights and powers necessary or incident to the acquisition, development, construction, improvement, repair, maintenance, operation, or rehabilitation of a Residence. “Cost” may include all costs of issuance of bonds for such purposes and costs for acquisition, development, construction, improvement, repair, maintenance, operation, or rehabilitation undertaken directly by either the City or a Sponsor.

“HUD” means the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937.

“Indenture” means any indenture, trust agreement, funding loan agreement, pledge and assignment agreement, or other instrument providing for the issuance of and security of bonds.

“Median Income” has the same meaning as AMI.

“Program Administrator” means the Mayor’s Office of Housing and Community Development or its successor agency.

“Qualified 501(c)(3) Sponsor” means a Sponsor that has received a determination letter from the Internal Revenue Service qualifying it as an organization of the type described in Section 501(c)(3) of the Internal Revenue Code, and whose charitable purpose is furthered by the financing, ownership, and operation of a Residence pursuant to this Article XV.

“Residence” means real property improved with a structure primarily for residential rental purposes. “Residence” includes real property improved with one or more structures primarily for multi-family residential rental purposes. A Residence may consist of one or more legally subdivided portions

of a building and may consist of one or more entire buildings.

“Revenues” means any or all of the amounts received by or on behalf of the City: for the payment of principal, interest, and all other charges with respect to a bond or a loan under this Article XV; as payments under a loan, lease, sublease or sale agreement with respect to a Residence; as proceeds received by the City from mortgage, hazard, or other insurance with respect to a Residence or with respect to such a loan (or any property securing such loan), lease, sublease, or sale agreement; all rents, charges, fees, income, and receipts derived by the City from the ownership, operation, or disposition of a Residence; all other rents, charges, fees, income, and receipts derived by the City from the financing of a Residence under this Article XV; any amounts received by the City as investment earnings on moneys deposited in any fund securing bonds and such other legally available moneys; in each case as the same may be pledged or assigned by the City as security for the payment of bonds pursuant to an ordinance, or to any indenture or other financing document authorized by such ordinance.

“Sponsor” means any individual, association, corporation, partnership, or other entity which is approved by the City to undertake the acquisition, building, development, construction, rehabilitation, improvement, management, or operation of a Residence pursuant to this Article XV.

“Stabilized Occupancy” means the point in time at which (1) all income-restricted units are occupied for the first time, for a new construction Residence acquired or developed with proceeds of bonds, (2) all income-restricted units are occupied for the first time after acquisition of the Residence, for an existing Residence acquired without existing tenants or with tenants to be permanently relocated, or (3) all income-restricted units with existing over-income tenants upon acquisition of the Residence have vacated such units and have been replaced with new tenants, for an existing Residence acquired with existing tenants who will not be permanently relocated.

(Added by Ord. 211-24, File No. 240726, App. 8/1/2024, Eff. 9/1/2024)