San Francisco Secures Over $163 Million in State Funding for Affordable Housing and Transit Improvements

Funding will support transit improvements, essential infrastructure work, and the construction of more than 1,200 new homes
September 13, 2023

San Francisco, CA — Today, Mayor London N. Breed announced San Francisco has been awarded more than $163.6 million in funding from the California Department of Housing and Community Development (HCD), California Business, Consumer Services and Housing Agency (BCSH), and California Strategic Growth Council (SGC) to support the development of climate-friendly affordable housing, transit improvements, and essential city infrastructure.  

These dollars come from the Affordable Housing and Sustainable Communities (AHSC) Program and the Catalytic Infill Infrastructure Grant (IIGC) program, both of which aim to advance the near-term construction of affordable housing and greener, more walkable communities.   

“This funding will tremendously help advance our work to create a more sustainable, affordable, and accessible San Francisco,” said Mayor London Breed. “Not only will this help advance our goals to build 82,000 units of housing in eight years, but it’s also going to provide safe and reliable transit access so people who use Muni and BART have a better experience, and help create bike lanes and sidewalks that are safe for our residents and visitors. I want to thank our state partners for this critical funding that will help create lasting communities for many who call San Francisco home.”  

In total, this funding will support the development of six projects with 1,224 new affordable and market-rate homes while supporting critical transit and infrastructure improvements. These projects include:  

Catalytic Infill Infrastructure Grant (IIGC) - Three projects totaling $45 million  

Potrero HOPE SF  

Funding will support the third phase of infrastructure at the Potrero HOPE SF site, supporting up to 213 new affordable homes in this phase of the development. Work will include demolition and abatement, soil replacement, geotechnical mitigation, grading, and new utilities which will ultimately provide the necessary infrastructure. 

Sunnydale HOPE SF  

Funding will support the fourth phase of infrastructure at the Sunnydale HOPE SF site, supporting 184 new affordable homes and new open space. Work will include demolition and abatement, soil replacement, geotechnical mitigation, grading, and new utilities.   

India Basin  

The first phase of the India Basin project will include 392 new homes, 157 of them affordable. This funding will support the first phase of public infrastructure construction, including site grading and geotechnical improvements, new public streets and bikeways, restored tidal and seasonal wetlands, green infrastructure to treat stormwater, and the initial phase of the project’s 14 acres of public parks and waterfront open spaces.  

Affordable Housing and Sustainable Communities (AHSC) - Three projects totaling $118.6 million  

Balboa Reservoir Building A - $45.7 million  

Building A will consist of 159 affordable homes as part of the Balboa Reservoir project. The Balboa Reservoir project will transform a current parking lot into a new mixed-income neighborhood with a publicly accessible park, childcare center, and access to a variety of public transit options. Funding will also support the SFMTA’s 29 Sunset Transit Optimization project, a part of the Muni Forward program which will improve reliability and shorten travel times along the eastern half of the route.  

850 Turk Street - $31.9 million  

850 Turk will create 92 affordable homes with resident amenities including extensive common spaces, laundry facilities, bike storage room, outdoor spaces, and play structures. Onsite services will focus on those services important to the target population, such as service coordination, adult education classes, and afterschool programs. The project is further enhanced by improving transit reliability through targeted improvements to traffic signals, as well improving bicyclist and pedestrian safety through upgraded protections to existing protected bicycle facilities, upgraded crosswalks, accessible pedestrian signals, and other walking infrastructure.  

Transbay Block 2 - $41 million  

Transbay 2 is an expansive project transforming prime, downtown real estate into more 184 new affordable homes. As a part of BART’s Transbay Corridor Core Capacity Program, funding for this project will go towards the purchase of two new BART cars, increasing train length and the number of trains operating during peak hours and maximizing capacity throughout the system. Transbay 2 will also include improvements to support San Francisco’s Vision Zero commitment, including new bulb-outs and curb ramps for pedestrian safety, a two-way protected bikeway, bike signals, and traffic signal modifications.  

“OCII aims to create inclusive neighborhoods providing opportunities for individuals and families of all backgrounds,” said Thor Kaslofsky, Executive Director at the Office of Community Investment and Infrastructure. “Transbay Block 2 East is a critical addition to the growing Transbay neighborhood. In addition to providing urgently needed homes and childcare, funding for this project will facilitate improved bicycle and transit access that will benefit residents and the greater neighborhood, encouraging the use of climate-friendly modes of transportation.”  

“We’re very grateful for the important funding for BART’s Transbay Corridor Core Capacity Program,” said BART General Manager Bob Powers. “The Program is a package of strategic investments that will increase reliability and prepare BART for the future.”  

“The best way for us to address regional traffic problems is to build more housing so more people who work in San Francisco can live in San Francisco,” said SFMTA Director of Transportation Jeff Tumlin. “We love the AHSC program because it not only helps us meet our housing goals, but also provides critical funding for transit reliability, pedestrian safety, and smooth traffic management.”  

Increasing housing affordable to lower-income and vulnerable residents is a key priority in the City’s Housing Element which calls for additional funding for affordable housing production and preservation, as well as Mayor Breed’s Housing for All Executive Directive that sets out the steps the City will take to meet the bold goal of allowing for 82,000 new homes to be built over the next eight years. Today’s funding announcement emphasizes the importance of regional and state collaboration in order to reach our housing and climate goals.  

“These combined awards will allow us to lay the groundwork that makes building sustainable communities possible – such as upgrading utilities and creating parks, bike lanes, and features for pedestrian safety,” said HCD Director Gustavo Velasquez. “With this foundation in place, we can then create affordable homes that provide stability, connect residents to opportunity, and greatly reduce vehicle miles traveled, curbing emissions and setting us on the path to a zero-carbon future.”  

“We congratulate San Francisco on securing over $163 million in competitive funding to accelerate transformative neighborhood change with housing and infrastructure improvements as the foundation,” said BCSH Secretary Lourdes Castro Ramírez. “These investments are focused on building more climate friendly communities in the right places — where families will be closer to jobs, parks, clean transit, and other amenities that will allow them to thrive.”