The Redevelopment Agency Commission meets Tuesday to discuss the current challenge of selling 275 affordable homes in San Francisco, including the Mission Bay and Hunters Point redevelopment areas.
“The current downturn in the real estate market along with more stringent credit and an unusual amount of competing inventory have slowed sales, especially in the southeast sector of the City,” an agency report said.
“Staff has concluded that a combination of factors led to this challenging sales climate,” the report says.
Among them, “The mortgage market has been in flux, with a tightening of credit, changing underwriting criteria, and investor uncertainty,” “the price decreases in market rate homes has attracted attention of potential below market rate home buyers, especially in the Southeast sector” and “the Mayor’s Office of Housing has more available Below Market Rate home inventory than usual.”
Among the options staff is considering: “increasing the maximum eligible incomes, lowering sales prices, and deepening down payment assistance.”