San Francisco Office of Housing and Community Development

The San Francisco Office of Housing and Community Development (OHCD) is the city department responsible for administering affordable housing finance, community development grants, and housing policy programs within the consolidated City and County of San Francisco. This page covers the agency's structure, how it deploys public funds, the types of programs it operates, and the boundaries of its authority relative to other housing bodies. Understanding OHCD's role is essential for developers, nonprofit service providers, and residents navigating San Francisco's publicly supported housing system.

Definition and scope

OHCD operates under the San Francisco Mayor's Office and serves as the primary conduit for federal housing and community development dollars flowing into the city. The agency administers funds received through the U.S. Department of Housing and Urban Development (HUD), including the Community Development Block Grant (CDBG) program, the HOME Investment Partnerships Program, and the Emergency Solutions Grant (ESG). It also manages locally appropriated funds dedicated to affordable housing production, preservation, and community services.

The office's mandate extends to three interconnected domains: affordable housing finance (loans and grants to developers building or preserving deed-restricted units), homeownership assistance (downpayment loans, mortgage assistance, and first-time buyer programs), and community development services (grants to nonprofit organizations providing economic opportunity, neighborhood stabilization, and supportive services). OHCD coordinates closely with the San Francisco Planning Department on land use dimensions of affordable housing projects and with the San Francisco Housing Authority on public housing and voucher programs.

Scope, coverage, and limitations: OHCD's geographic jurisdiction is strictly limited to the City and County of San Francisco. Programs funded through OHCD do not apply to residents or projects located in adjacent counties such as San Mateo, Marin, or Alameda. State-level affordable housing policy — including tax credit allocation administered by the California Tax Credit Allocation Committee (CTCAC) and bond financing through the California Housing Finance Agency (CalHFA) — falls outside OHCD's authority, though OHCD-funded projects frequently layer state financing on top of city loans. Federal Fair Housing Act enforcement is handled by HUD's Office of Fair Housing and Equal Opportunity, not OHCD. The San Francisco Affordable Housing Policy page addresses the broader policy framework that spans multiple agencies.

How it works

OHCD deploys capital through a pipeline that moves from federal and local appropriation to developer loan closing to construction to occupancy. The sequence for an affordable housing project typically follows these steps:

  1. Notice of Funding Availability (NOFA): OHCD publishes a competitive funding notice specifying eligible project types, financing terms, and underwriting criteria. Developers — typically nonprofit or mission-driven for-profit entities — submit applications.
  2. Underwriting and loan committee review: OHCD staff underwrite the project's financial feasibility, site control, development team capacity, and compliance with inclusionary or 100% affordable requirements. A loan committee approves or conditions the award.
  3. Loan closing and disbursement: OHCD issues a loan — generally structured as a residual receipts note, meaning repayment is contingent on net project cash flow — rather than a grant, ensuring public funds remain secured against the property.
  4. Construction monitoring: OHCD inspects construction progress, reviews draw requests, and confirms Davis-Bacon prevailing wage compliance where federal funds are involved (U.S. Department of Labor, Davis-Bacon Act).
  5. Regulatory agreement recording: Upon completion, OHCD records a deed restriction — typically a 55-year affordability covenant for rental housing — against the property with the San Francisco Assessor-Recorder.
  6. Ongoing compliance monitoring: OHCD conducts annual income certification audits and physical inspections over the full term of the regulatory agreement.

For homeownership programs, OHCD administers downpayment assistance loans — typically deferred, low-interest second mortgages — to income-qualified buyers purchasing homes in San Francisco. These loans are subordinate to the primary mortgage and are repayable upon sale or refinance.

Community development grants follow a separate annual cycle aligned with HUD's Consolidated Plan process. OHCD publishes a five-year Consolidated Plan identifying priority needs, then funds nonprofit organizations through annual Action Plans (HUD Consolidated Plan Requirements, 24 CFR Part 91).

Common scenarios

Affordable rental housing production: A nonprofit developer acquires a site in the Mission District (District 9) and seeks gap financing for a 60-unit, 100% affordable project. OHCD provides a residual receipts loan funded through HOME or local housing bonds, layered with 4% Low-Income Housing Tax Credits allocated by CTCAC. OHCD records a 55-year regulatory agreement restricting all units to households earning at or below 60% of Area Median Income (AMI), as defined annually by HUD.

Preservation of at-risk housing: A landlord's loan is maturing on a 30-unit building with expiring affordability restrictions. OHCD provides a preservation loan to refinance and extend the regulatory agreement, preventing conversion to market-rate housing. This scenario contrasts with new construction financing in that the building is occupied throughout, requiring tenant notification and relocation protections under state and local law.

First-time homebuyer assistance: A household earning 80% AMI seeks to purchase a below-market-rate (BMR) unit created through the city's inclusionary program. OHCD administers the BMR ownership program, verifying income eligibility, asset limits, and buyer education completion before approving the purchase.

Nonprofit community grant: A workforce development organization serving residents in District 10 applies under OHCD's CDBG-funded Economic Opportunity program for operating support. OHCD evaluates the application against HUD national objectives — specifically the low-to-moderate income benefit criterion (HUD CDBG National Objectives, 24 CFR 570.208).

Decision boundaries

OHCD's authority intersects with — but is distinct from — three other bodies that handle housing-related functions in San Francisco:

OHCD also does not adjudicate landlord-tenant disputes, enforce rent control (a function of the San Francisco Rent Board), or regulate building construction standards (a function of the San Francisco Department of Building Inspection).

For a broader orientation to San Francisco's governmental structure, the home directory for San Francisco Metro Authority provides an entry point across all city departments and policy areas.

References

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