By Laura Waxmann : sfchronicle – excerpt

For nearly four decades, the Tenderloin Neighborhood Development Corp. has operated on a rare promise in San Francisco real estate: acquire or build affordable housing and hold it forever.

That covenant is now shifting.

For the first time in its history, the nonprofit housing developer and operator is planning to sell four buildings from its extensive Tenderloin housing portfolio, citing the need to shore up its long-term financial health. The decision marks a significant change in course for one of the city’s most influential nonprofit landlords, and could be a sign of trouble facing the nonprofit affordable housing sector…

Vacancy rates across the four properties range from 12% to 22%, compounding financial losses, the nonprofit said…

Deferred maintenance and aging building systems have added risk and expense, while outdated layouts — tiny rooms, shared bathrooms and limited kitchen access — have increased vacancy and turnover…

Meanwhile, new affordable housing construction is facing similar financing constraints: Thousands of units across 313 projects are currently stuck in San Francisco’s affordable housing pipeline. Katie Lamont, TNDC’s chief operating officer, said the organization is pausing work on two of its big projects: the 199-unit senior project at 1234 Great Highway and the 120-unit 149 Pennsylvania St…

“The city’s priority is ensuring that any changes involving these properties are tenant-centered and protect the long-term housing stability of residents: They must remain stably housed and continue to receive the supports they rely on,” representatives of the Mayor’s Office of Housing and Community Development and the Department of Homelessness and Supportive Housing said in a joint statement to the Chronicle.

The departments said that they are “actively coordinating with partners to understand potential impacts and to ensure tenant protections remain central throughout this process.”…(more)