Resolution authorizing the Mayor’s Office of Housing and Community Development (“MOHCD”) to execute the Standard Agreements with the California Department of Housing and Community Development (“HCD”) under the Affordable Housing and Sustainable Communities Program for a total award of $47,579,100 including $35,000,000 disbursed by HCD as a loan to Mercy Housing California 109, L.P. for a 100% affordable housing project at 1939 Market Street and $12,579,100 to be disbursed as a grant to the City for public transportation improvements near 1939 Market Street, for the period starting on the execution date of the Standard Agreement through December 10, 2080; and authorizing MOHCD to accept and expend the grant of up to $12,579,100 for transportation, streetscape and pedestrian improvements and other transit oriented programming and improvement as approved by HCD.

This resolution authorizes the Mayor’s Office of Housing and Community Development (MOHCD) to execute agreements with the California Department of Housing and Community Development (HCD) for a $47,579,100 award under the Affordable Housing and Sustainable Communities (AHSC) Program. This significant funding supports a mixed-use project at 1939 Market Street, San Francisco, with a long-term commitment extending through December 10, 2080.

Funding Breakdown:

• Housing Project: A $35,000,000 loan is allocated to Mercy Housing California 109, L.P. for a 100% affordable housing development at 1939 Market Street. This project will feature 187 units (185 rental units for low-income households, including LGBTQ+ elders, HIV/AIDS survivors, formerly homeless individuals, and veterans, plus 2 manager units). The 15-story building will be all-electric, include high-speed internet, secure overnight bike parking, and various community amenities. The housing component is exempt from CEQA under SB 35.
• Transportation & Community Improvements: A $12,579,100 grant is provided to the City for public transportation and community-oriented improvements:
  • SF Department of Public Works (SFDPW): $8,000,000 for over 2,000 feet of safe and accessible walkway improvements on 11th Street, including ADA ramps, traffic signals, street lights, bulbouts, and 0.95 lane miles of Class IV bike lanes.
  • SF Municipal Transportation Agency (SFMTA): $3,713,000 for permanent Class IV bikeways along 1.29 miles on 8th, 13th, and Polk Streets, and Transit Signal Priority (TSP) at 45 intersections to improve six Muni bus routes.
  • Program Costs (PGM): $866,100 for initiatives including $150,000 for Mission Hiring Hall's workforce development, $150,000 for San Francisco Community Land Trust's anti-displacement program, and $566,100 for providing free transit passes for three years to all 185 restricted housing units.

The project is exempt from AB 680 workforce standards due to its 100% affordable housing status.