MOHCD’s planned projects need to meet key criteria for other public investment, including scale, readiness, proximity to public transit, ability to leverage non-City sources of funding, and location in high resource neighborhoods, as defined by the State. The pipeline includes: 100% affordable multifamily buildings that are either stand-alone developments or part of multi-phased development areas, and below-market-rate (BMR) inclusionary units in market-rate buildings. MOHCD’s pipeline includes all projects that are financed through city funding agreements, ground leases, disposition and participation agreements and conduit bond financing. Affordable housing developments, such as state-funded projects, that do not meet these criteria are not included in the pipeline.

The pipeline of 10,670 affordable units in 212 projects is an ambitious and significant commitment to producing more affordable housing in San Francisco. However, many more units are needed to meet the 2022 Housing Element goals, and the City will need to pursue opportunities and continue to prioritize affordability into the future.

Future projects are opportunities to expand MOHCD’s pipeline that are not currently accounted for in MOHCD’s pipeline and allocations budget. Non-deed-restricted moderate-income housing is produced primarily through the City’s Accessory Dwelling Unit (ADU) program.

To meet 100% of the Housing Element targets, excluding the portion that is projected to be met through inclusionary units, the total housing expenditure plan would need to increase by approximately $25.1 billion. Meeting this full RHNA allocation requires funding and policy decisions outside the purview of the Capital Plan and would depend on the contribution of inclusionary units delivered through market rate production, which is extremely difficult to model. San Francisco strives to deliver as much affordability as possible while meeting other urgent challenges in its public capital portfolio and other service obligations.

Planning – SRO Rehab Assessment  

Planning is launching a study to evaluate rehab needs and conduct cost benefit analysis for various scenarios of rehab for existing SROs in the Tenderloin. The results of this analysis will inform priority properties for rehab, the scale of investment needed, or other solutions needed to provide dignified standards of living in SROs that are a critical City asset to provide housing for extremely low-income households. This work began in 2024 and is intended to be complete by early 2026.     

Vertical Developers have multiple rental and condominium projects in the second Sub-Phase area in various stages of planning and building permit review and are expected to start construction in the next two years. These buildings will include for-rent and for-sale inclusionary affordable units.

TICD has demolished most structures within the third Sub-Phase area and geotechnical improvement of soil is underway, with street improvements and infrastructure work expected to start early 2025.

TIDA – Affordable
Housing Developments

The third Sub-Phase area includes four additional parcels for the development of 100% affordable housing. The Behavioral Health Building, which includes a minimum of 240 residential step-down beds, received Vertical Development Approval from San Francisco Planning in August 2024 and is expected to start construction early 2026. The Senior Housing building will include up to 120-units, and the building on parcel IC4.3 will include 150-units. Both the Senior Building and IC4.3 development are currently under design and preparing to submit applications to SF Planning for Vertical Development Approval for construction starts in 2026. Parcels E2.3/4 will include the last 100% affordable housing building in the third Sub-Phase area to be completed and is expected to include 155-units. Predevelopment work for parcel E2.3/4 has not yet started.The third Sub-Phase area includes four additional parcels for the development of 100% affordable housing. The Behavioral Health Building, which includes a minimum of 240 residential step-down beds, received Vertical Development Approval from San Francisco Planning in August 2024 and is expected to start construction early 2026. The Senior Housing building will include up to 120-units, and the building on parcel IC4.3 will include 150-units. Both the Senior Building and IC4.3 development are currently under design and preparing to submit applications to SF Planning for Vertical Development Approval for construction starts in 2026. Parcels E2.3/4 will include the last 100% affordable housing building in the third Sub-Phase area to be completed and is expected to include 155-units. Predevelopment work for parcel E2.3/4 has not yet started.