Mercy Housing California (MHC) has broken ground on a major affordable housing development in San Francisco.
Located in the South of Market neighborhood, the 7th and Brannan project will provide permanent supportive housing for 120 families and individuals who have experienced homelessness as well as 100 homes for families with low incomes and one management unit. Construction completion is slated for summer 2024.
“We’ve got to prioritize preventing low-income families from becoming homeless, or being priced out of San Francisco, just as much as supporting people who are experiencing homelessness,” said Doug Shoemaker, MHC president. “This development gives us the unique opportunity to do both at once.”
The site was awarded to MHC by the city and county of San Francisco through the Mayor's Office of Housing and Community Development (MOHCD) as a land donation from Equity Residential, the developer behind the market-rate development at 855 Brannan St. During the early stages of the COVID-19 pandemic, the development site served as a testing site operated by the San Francisco Department of Public Health in partnership with Color, a health technology company.
The eight-story development will include 100 studio, 23 one-, 82 two-, and 15 three-bedroom apartments, plus the management unit. There will be 100 homes designated for families earning between 50% and 60% of the area median income (AMI), while the 120 apartments with supportive housing services will be available to families earning between 30% and 50% of the AMI. Amenities for the building include a community room, a laundry room, a bike room, and landscaped courtyards, with several offices for management and services.
The ground floor of 7th and Brannan will include more than 5,000 square feet of retail space that will be leased at below-market rents to local small businesses.
The approximately $147 million development will be financed, in part, through a $53.3 million equity investment by Enterprise Community Partners and Fannie Mae under the federal low-income housing tax credit program. Construction and permanent financing are being provided by Chase, with additional support from the MOHCD.
The community will be managed by Mercy Housing Management Group, and supportive housing services will be provided by Episcopal Community Services of San Francisco. The property was designed by Santos Prescott + Associates and will be constructed by a joint venture between Suffolk Construction and local firm Guzman Construction Group.
