SFCLT announces that the 285 Turk Street building has finally been taken off the speculative market
San Francisco Community Land Trust (SFCLT) announced that on Wednesday, January 19th, 2022 the building at 285 Turk Street and the land it stands on has been moved into community ownership. Previously, 285 Turk was exempted from the Rent Control Stabilization Ordinance, which led to tenants being subject to unchecked rent increases and not having the protections of rent control. Now the building is no longer vulnerable to falling into the hands of eviction-prone landlords backed by private equity.
285 Turk Street, the towering apartment building at the corner of Turk and Leavenworth, in the heart of the vibrant Tenderloin neighborhood of San Francisco is home to a highly diverse population of Black, Indigenous, and AAPI tenants. In addition to its 40 residential units, 285 Turk includes 2 units of neighborhood-serving commercial space and is located within the Tenderloin's Transgender Cultural District.
Lorenzo Listana, a tenant organizer with the Filipino Community Development Corporation (FCDC) who has been working with tenants for more than 6 years said: ”The tenants sighed with relief once they heard that SFCLT had been able to buy the building. They have persisted and won this battle.”
Keith Hennessy, SFCLT Board President said of the 285 Turk acquisition, “It is an unlikely, extraordinary, and historic victory for affordable housing in San Francisco and a model for social housing advocates everywhere.”
Executive Director at SFCLT, Saki Bailey said about 285 Turk, “Our goal is to form, with BIPOC leadership, a Limited Equity Housing Co-operative (LEHC) to not only promote neighborhood stability and prevent displacement but also to improve the distribution of wealth to BIPOC communities through limited-equity homeownership and asset building by tenants. LEHCs historically have offered important ownership opportunities to those of low income and communities of color who have been kept out of the homeownership market as a result of the astronomical cost of housing in San Francisco, as well as by racially discriminatory zoning and lending practices.”
The purchase of 285 Turk Street was made possible by an innovative capital raise plan. The project combined permanent financing through several community-minded lenders, and gap financing from donations, impact investments, and below-market bridge loans.
Keith Cooley, Director of Asset Management at SFCLT said, “We appreciate Self-Help Credit Union for their commitment to providing permanent financing to the project. It was their early support that convinced the seller that SFCLT was credible in their offer to buy the building. The unwavering support by Bay Area LISC was also crucial in getting into contract with the seller in July. The support of both lenders has been strong and continuing despite a series of complications that delayed closing on the acquisition for three months.”
When a community-based organization such as a Community Land Trust acquires a residential building for preservation as affordable housing, there is a gap in financing between the permanent financing that can be applied and the purchase price. Typically, the gap is filled by public funding of one form or the other but for the 285 Turk acquisition, there was no public funding of any kind.
Keith Cooley said, “Self Help and LISC challenged SFCLT to raise $1.4 million in gap financing. Through personal connections, we were fortunate to be put in touch with Solidaire – an Oakland-based donor network. With their support and encouragement, SFCLT raised more than $700,000 in donations. Solidaire as an organization also provided an impact investment in the project of $500,000.”
But the fundraising is not yet over. Further funds are needed to guarantee the success of the building, including hiring a staff person dedicated to resident support. 285 Turk Street Community Holding LLC is seeking both large and small investments for post-acquisition costs, including preparing residents for the co-op conversion in order to build community power.
More information can be found at: https://www.smallchange.co/projects/BIPOC-Homeownership.
Join residents of 285 Turk in securing a future for affordable housing in San Francisco!
To find out more about this project please contact:
Keith Cooley, Director of Asset Management at SFCLT: (415) 480-0397 – kcooley@sfclt.org
Saki Bailey, Executive Director at SFCLT: (510) 776-0902 - sbailey@sfclt.org
About the San Francisco Community Land Trust (SFCLT)
SFCLT is dedicated to creating and preserving permanently affordable housing through the community ownership of land, toward the goal of racial and economic justice.