The San Francisco Housing Authority, which is responsible for providing homes for 41,500 low-income residents, is projected to run out of cash in two months and have a deficit of $6.4 million by the end of its fiscal year in September, according to reports.
Meanwhile San Francisco mayor Ed Lee is on a visit to China where he is expected to sit down with officials from the China Development Bank during his eight-day trip. Over two days in Beijing, the Chinese-American mayor also will meet with key political leadership, which just changed hands.
Embattled San Francisco Housing Authority Director Henry Alvarez is currently on paid medical leave and the Housing interim director Barbara Smith said Thursday, "We have to become more efficient and lower our costs or we're going to be out of business," according to San Francisco Chronicle.
Alvarez sought a medical leave in late January "to address immediate personal matters" as he faced rising criticism of his leadership, including complaints to Mayor Ed Lee's administration from dozens of employees about his alleged bullying. Alvarez is also facing three lawsuits from authority staff accusing him of discrimination and retaliation, according to the SF Gate.
Meanwhile, Homebuilder Lennar Urban, which has development rights to construct more than 10,000 units at the former naval installations at Hunters Point and Treasure Island, is seeking a $1.7 billion loan from the state-owned bank. Lee said Thursday that he hopes his visit can help the two parties "get closer" to finalizing the deal.
Lennar declined to comment on loan negotiations, but sources close to the deal say that the traditional Chinese caveat of employing state-owned Chinese construction firms on state-funded projects is delaying the deal. In this case, the Chinese Railway Construction Corporation - which recently finished a light-rail system in Saudi Arabia - is said to be pursuing the San Francisco construction contracts.
