Mayor Lurie Celebrates $93 Million in State Funding for Affordable Housing and Transit Improvements

SAN FRANCISCO – Mayor Daniel Lurie today announced $92.7 million in critical funding awarded by the California Strategic Growth Council (SGC) to support the development of affordable housing, transit improvements, and essential city infrastructure. These dollars come from the Affordable Housing and Sustainable Communities (AHSC) program which aims to advance the near-term construction of affordable housing and more walkable communities.   

Mayor Lurie has taken steps to make San Francisco more affordable and build housing. This funding follows the passage of Mayor Lurie’s landmark Family Zoning plan, a legislative package supporting the development of housing for all income levels across San Francisco. In the last six months, Mayor Lurie cut the ribbon on affordable housing communities across San Francisco’s South of Market, Richmond, Bayview, Sunnydale, Hunters Point Shipyard, Civic Center, and Outer Sunset neighborhoods.  

“The funding awarded today will help us add housing so that more San Franciscans can have a safe, stable place to call home,” said Mayor Lurie. “This investment reflects the kind of work our administration is doing every day—delivering affordable homes for families, seniors, and longtime residents who want to continue calling San Francisco home. Thank you to our state partners, our nonprofit developers, and the communities behind these projects for their partnership as we continue the work to build more housing.” 

In total, this funding will support the development of more than 330 new homes across two 100% affordable housing projects while supporting critical transit and infrastructure improvements. 

1939 Market Street - $47.6 million 

The 1939 Market Street project will transform an underutilized infill site in San Francisco’s thriving Market-Octavia neighborhood into 187 deeply affordable homes designed to serve LGBTQ+ elders, long-term HIV/AIDS survivors, formerly homeless seniors, and low-income veterans. Developed by Mercy Housing CA in partnership with Openhouse, the project builds on the success of the LGBTQ-welcoming 65 Laguna development and directly connects to an existing hub of senior services, including the Bob Ross Senior Center. 

“By pairing affordable, service-enriched housing with climate-conscious design and transit access, 1939 Market will offer homes for LGBTQ+ seniors while contributing to a healthier, more resilient San Francisco,” said Tiffany Bohee, President of Mercy Housing CA. “This AHSC award affirms our shared commitment to sustainability and equity and provides the critical resources to make this vision a reality. We are honored to collaborate with Openhouse on this transformative project and deeply grateful to the Strategic Growth Council and the Department of Housing and Community Development for their support in making this community possible.” 

“It’s rare—but so important—to have good news to share in these difficult times,” said Morey Riordan, Openhouse Executive Director. “With this new, truly affordable housing project, we are one step closer to a world in which LGBTQ+ older adults can remain part of the communities they helped to shape.” 

“Openhouse housing has always been more than bricks and mortar, but rather building and strengthening community by valuing and caring for one another, especially those in later life,” said Dr. Marcy Adelman, Openhouse Co-Founder. “With the addition of 1939 Market Street, Openhouse will exponentially expand the number of safe, accessible, affordable, and supportive environments where LGBTQ+ older adults can live and thrive in community." 

1939 Market integrates a continuum of care model—ranging from traditional senior housing to supportive housing—allowing residents to age in place with dignity. The $47.6 million in funding is inclusive of $11.7 million to improve nearby transit reliability and safety through signal priority on six Muni lines and funds upgraded bikeways near the project and over 2,000 feet of sidewalk repair. 

Treasure Island IC 4.3 - $45.1 million 

Treasure Island Parcel IC4.3 will provide 150 permanently affordable rental homes for low-income households. Located at Avenue F and Eastside Commons, the six-story building will include a mix of studios, one-, two-, three-, and four-bedroom homes, with dedicated homes for families, existing Treasure Island residents, and formerly homeless households. 

The project will be developed by The John Stewart Company in partnership with Catholic Charities San Francisco and will feature a community-serving childcare center with capacity for 58 children, outdoor courtyards, resident services offices, and 43 parking spaces. 

“This funding marks important progress toward expanding affordable housing in District 6 and throughout the city,” said District 6 Supervisor Matt Dorsey. “These investments will help deliver stable, long-term opportunities for the residents who need them most.” 

“Given the John Stewart Company’s long history on Treasure Island, including our financing, renovation and conversion of over 700 units of former Navy Housing to civilian occupancy 25 years ago, we are absolutely thrilled by the state’s award of over $45 million to our new transit-oriented development on the Island,” said Jack D. Gardner, Chairman of the Board at The John Stewart Company. “Working with our partners at Catholic Charities, One Treasure Island and the Treasure Island Development Authority, our new project will provide 150 units of high-quality housing to support the on-going redevelopment of the Island, as well as much-needed enhancements to the Island’s ferry terminal and transit infrastructure.” 

“Stable housing is the foundation for healthy living, but it must be paired with supportive services to be truly effective. The Treasure Island housing project demonstrates how the Mayor of San Francisco is investing in permanent supportive housing that prioritizes equity, wellness, and dignity for residents who are facing the challenges of homelessness,” said Dr. Ellen Hammerle, Chief Executive Officer of Catholic Charities San Francisco. “Through this partnership with The John Stewart Company, we are honored to provide not only a safe place to live but also the Treasure Island Child Development Center and supportive services that will help residents and their children heal, grow, and build lasting stability.” 

As part of the broader Treasure Island/Yerba Buena Island Redevelopment Plan, Parcel IC4.3 reflects the city’s commitment to sustainable, inclusive development. The $45.1 million in funding includes $10.9 million to support the project’s transportation components, including the installation of a new protected bikeway network, new ADA-compliant sidewalks, 10 new bus shelters, and continued improvements to the Treasure Island ferry terminal. 

“Treasure Island has an ambitious goal for more than 27 percent of the housing delivered – 2,173 units in total – to be affordable. The support of programs like AHSC are critical for us to fulfill that goal and for the delivery of affordable housing to keep pace with the production of market rate units,” said Bob Beck, Executive Director of Treasure Island Development Authority. “This award will help advance our program’s transportation objectives as well as our efforts to relocate current residents out of former Navy housing into permanent homes on the island.” 

“Investments like these are exactly what strengthen San Francisco’s transportation network while supporting the communities who rely on it most,” said Julie Kirschbaum, SFMTA Director of Transportation. “By pairing new affordable housing with safer streets and more reliable Muni service, this $3.7 million in capital funding helps us deliver a cleaner, more equitable, and more connected city.” 

The AHSC Program is administered by SGC and implemented by the California Department of Housing and Community Development. It is part of California Climate Investments, a statewide Cap-and-Invest program which requires polluters to buy allowances for the greenhouse gases they emit and supports climate-friendly projects including affordable housing, renewable energy, public transportation, environmental restoration, and more.   

“California continues to build affordable homes that strengthen our climate resilience,” said Tomiquia Moss, Business, Consumer Services and Housing Agency Secretary. “With more than $4.8 billion invested to date, we are creating healthier, more connected neighborhoods where all Californians can thrive. Our state and our Governor are all in when it comes to supporting safe and livable communities.”