A 303-unit project by developer Patrick McNerney is set to commence construction in San Francisco's Lower Nob Hill. This development, split into two buildings, is notable for utilizing creative financing and state programs to address funding obstacles. It will feature 33% affordable units, with a significant portion aimed at lower-income households. The project is a response to rising construction costs and market complexities that have stalled others. Despite these challenges, the project has received necessary approvals and is poised to proceed, demonstrating a proactive approach to addressing housing needs in the area.
McNerney's project, which is technically two projects in one—a state tax credit program required separating the 101 affordable units into their own building, which is 100% affordable—is moving forward with a tight budget and financing now secured.
The project is an exception to the general rule these days, in an era when SF's Board of Supervisors has been granting exemptions to its previously strict and notably large affordable requirements in order to get more housing built.
The chair of the committee, Supervisor Myrna Melgar, says, "Affordable housing is affordable housing—I don't care who builds it."
Multiple major development projects have stalled or been abandoned in recent years because of sky-high construction costs and rising interest rates that make it unable to 'pencil' or reach profitability.
#san-francisco #affordable-housing #real-estate-development #construction-challenges #urban-planning
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