Mayor’s Office of Housing & Community Development Breaks Ground on “La Maravilla”, a New Affordable Housing Community in San Francisco’s Mission District

SAN FRANCISCO — Today, the Mayor’s Office of Housing and Community Development (MOHCD) joined Mission‑based community organizations, neighborhood advocates, and local development partners to celebrate the groundbreaking of a new 136‑unit permanent supportive housing (PSH) community located at 2970 16th Street in the Mission District.

2970 16th Street will provide 89 studio units and 47 one‑bedroom homes for adults exiting homelessness, along with substantial onsite services and community‑focused amenities. The nine‑story development will include a 1,500‑square‑foot Behavioral Health Services Center, resident case management offices, indoor and outdoor common spaces, and a secure landscaped courtyard designed to foster stability, wellness, and community connection.

“This site represents years of community effort to bring affordable housing to 16th and Mission. With our partners, we’re now transforming that commitment into deeply affordable and service-rich housing built to serve the Mission District and the City as a whole,” said Daniel Adams, Director of the San Francisco Mayor’s Office of Housing and Community Development. “Today marks real progress in our work to expand supportive housing options and move more residents from homelessness into long‑term stability.”

2970 16th Street is the first project to break ground as part of a multi-phase development plan at 1979 Mission Street, also known as “La Maravilla” or “The Marvel in the Mission”. Located near the southwest corner of the intersection of 16th Street, Mission Street, and Capp Street in San Francisco’s Mission District, the 57,325 square foot site was previously occupied by a vacant commercial building and unutilized surface parking lot. Upon completion of all development phases, 1979 Mission Street will be one of the largest 100% affordable housing projects in San Francisco.

“Today’s groundbreaking is a hard-fought victory for the Mission community members who organized for over a decade to ensure affordable housing for our working families, elders, and unhoused neighbors at 16th and Mission. Just last year, Supervisor Fielder and the Board of Supervisors rejected another attempt to block affordable housing here,” said District 9 Legislative Aide Ana Herrera. “We are grateful to the tireless work of the community organizers, development team, and City partners who collaborated over many years to make La Maravilla a reality.”

San Francisco-based nonprofits Mission Economic Development Agency (MEDA) and Mission Housing Development Corporation (MHDC) are leading the project’s development. MEDA and MHDC, along with partners John Stewart Company and Lutheran Social Services, were selected to develop, own, and operate the housing and associated improvements in December 2023 through a Request for Qualifications (RFQ) issued by MOHCD.

"La Maravilla is a declaration that affordable housing belongs on 16th Street, and that economic mobility starts with a stable home. We're grateful to MOHCD for believing in place-based community developers — because the people closest to the problem are closest to the solution," said José García, Chief Real Estate Officer at MEDA.

“This project embodies every element of its namesake: a marvel. A community asset etched in the history books of San Francisco that will stand with the same strength and stature of the countless community members who fought to have it built,” said Mission Housing Development Corporation Executive Team, Sam Moss and Marcia Contreras. “We are deeply grateful to our co-developer MEDA, the Mayor's Office of Housing and Community Development, Department of Homelessness and Supportive Housing, and the numerous partners for making this moment possible. La Maravilla is another huge step in preserving the Mission’s cultural fabric and building a future where families, seniors, and residents with diverse needs can remain and thrive in San Francisco for decades to come.”

The $110.8 million project at 2970 16th Street is made possible thanks to a combination of public and private funding partners with a shared goal of broadening access to affordable housing while strengthening communities. In addition to significant investment from MOHCD, the project is supported by the California Department of Housing and Community Development, Five Star Bank, Merritt Community Capital Corporation, and Western Alliance Bank,

“Five Star Bank knows that strong communities build strong economies. When people have stable housing and the resources they need to thrive, everyone benefits,” said DJ Kurtze, Five Star Bank’s Executive Vice President / San Francisco Bay Area President. “Our investment in the Marvel in the Mission will help provide a PSH development for San Francisco residents and reflects our belief that community banks have an important role to play in supporting projects that bring stability and care to our neighbors.”

“The Marvel in the Mission is a powerful example of what’s possible when mission-driven partners come together with a shared commitment to community,” said Ari Beliak, President and CEO of Merritt Community Capital Corporation. “We’re proud to stand alongside our partners in delivering not just critical housing, but long-term stability and opportunity for San Francisco residents.”

“Western Alliance Bank is proud to deepen our commitment to San Francisco and the Mission District as the senior lender and significant equity partner in La Maravilla," said Mieke Holkeboer, Director, Affordable Housing Finance, Western Alliance Bank. "Housing affordability is the foundation on which families and communities build their futures. Partnering this landmark project reflects exactly the kind of work we believe in.”

The construction of 2970 16th Street is led by a joint venture partnership between Cahill and Guzman Construction Group, both certified local minority-owned contractors. Additional local development partners include Herman Coliver Locus Architecture and Mithun Design. Construction at 2970 16th Street is expected to be completed in late 2027, with full occupancy expected by mid-2028. All units will be leased through San Francisco’s Coordinated Entry system.