BUILD has entered into a Directed Fee Agreement with the Mayor's Office of Housing to fund three targeted affordable housing projects along Octavia Blvd, on the former Central Freeway Parcels R, S, & U. These affordable housing projects will be developed by a non-profit selected by the Mayor's Office of Housing and will include 72 permanently affordable units within 0.3 miles of the One Oak project. This represents 24% of the unit count at BUILD's One Oak Project. Parcel U will provide deeply affordable units (30% of Area Median Income) for Transitional Age Youth (TAY) at risk of homelessness. These deeply affordable units were identified in the adopted Market-Octavia Plan but funding was never allocated towards their development.
Parcels R & S were awarded to BUILD via a competitive RFP process and the parcels were originally intended to be market-rate units. As part of the Directed Fee Agreement, however, BUILD transferred the development rights to the Mayor's Office of Housing to be developed as Below Market Rate (BMR) units by a non-profit. Rents from 7,500 SF ground floor retail spaces in both parcels will subsidize affordable housing operations. In addition, One Oak will contribute more than $250K in pre-development work (concept design, survey and environmental work) to the non-profit selected to develop the project by Mayor's Office of Housing.
In addition to funding the Octavia parcels, BUILD will contribute approximately $5.3 million to the City's Affordable Housing Trust Fund, in compliance with the Market-Octavia Affordable Housing Fee and the Van Ness & Market Residential SUD Affordable Housing Fee requirements. These funds can provide land or gap funding to non-profit developers to build approximately 21 additional affordable housing units. This represents 7% of the unit count at BUILD's One Oak Project, for a total affordable housing production in excess of 31% of the One Oak unit count.