NewsMission LocalOctober 28, 2026San Francisco County
San Francisco Budget Committee advances $22.2 million loan purchase for MEDA housing building
Photo: Mission Local
The San Francisco Board of Supervisors’ Budget and Finance Committee advanced a $22.2 million financing agreement on Wednesday to make the city the lender for a Mission District apartment building operated by the Mission Economic Development Agency. The vote follows a one-week delay prompted by the controller placing MEDA under high-level financial monitoring due to unresolved accounting findings. The measure now heads to the full Board of Supervisors for consideration.
Read the full story at Mission LocalWhy It Matters
San Francisco is taking over a $20.3 million loan and potentially committing $22.2 million total in financing for a 35-unit residential and commercial property, while city officials debate how to balance nonprofit oversight with the preservation of affordable housing.
Key Facts
- The San Francisco Budget and Finance Committee voted to recommend a $22.2 million financing agreement for a 35-unit Mission District apartment building.
- The agreement allows the city to purchase an existing $20.3 million loan from the Housing Accelerator Fund, making San Francisco the new lender.
- The measure advances after a one-week delay requested by supervisors due to concerns regarding MEDA's financial management.
- The San Francisco controller placed MEDA under its highest level of financial monitoring on Oct. 19, citing 10 unresolved findings including unsupported invoices and self-dealing allegations.
- An independent audit from Sept. 30 detailed unauthorized IT spending by a former MEDA employee and weaknesses in financial controls.
- MEDA acquired the Mission Street building in 2024 for $11.35 million through San Francisco's Small Sites program.
- The property carries a 99-year affordability restriction, sale limits, and city acquisition provisions to preserve affordability.
- Alea Gage of MOHCD stated that projected building income exceeds first-year debt payments by 37 percent, above the required 15 percent cushion.
- Small Sites properties are held through separate legal entities to insulate them from sponsor debts.
- MOHCD plans to monitor the property's financial performance quarterly.
- MEDA Executive Director Luis Granados stated that the nonprofit has worked with the controller's office and received financial coaching from BDO since July.
Who's Mentioned
PersonJuan Mesa“MEDA spokesperson.”PersonChyanne Chen“Supervisor asking questions about financial risk communication.”OrganizationMission Economic Development Agency“Nonprofit operator and affordable housing developer managing the Mission Street ”OrganizationHousing Accelerator Fund“Original lender that financed the acquisition and rehabilitation of the building”PersonSarah Hopkins“Author of the news article.”OrganizationBDO“Private consulting group providing financial coaching to MEDA.”PersonGreg Wagner“San Francisco Controller.”location2059-2065 Mission Street“Address of the 35-unit apartment building.”PersonSheila Gregorius“Official with MOHCD.”PersonMatt Dorsey“Supervisor who chairs the Budget and Finance Committee.”OrganizationMayor’s Office of Housing and Community Development“City housing department monitoring the property.”PersonWill Reisman“MEDA PR representative.”OrganizationMission Local“News publication reporting on city matters.”PersonLuis Granados“MEDA Executive Director.”OrganizationMEDA“Abbreviation for Mission Economic Development Agency.”locationSan Francisco“City government purchasing the loan.”locationMission District“Neighborhood where the apartment building is located.”OrganizationBoard of Supervisors’ Budget and Finance Committee“City committee that voted to recommend the financing agreement.”PersonAlea Gage“Preservation program manager at the Mayor’s Office of Housing and Community Deve”