Mayor Breed commits to spending $100 million on affordable modular housing

Planning for a modular housing facility in San Francisco is underway, promising new, quality union jobs and more affordable housing

Mayor London N. Breed today announced a commitment of $100 million in City funding to purchase affordable housing made using modular construction built in San Francisco. The commitment represents the first production order for a new modular housing facility that will be built in the City in partnership with the San Francisco Building Trades. 

Through a competitive application process, the City selected the international design firm Nelson Worldwide to conduct a feasibility study for a new modular housing factory on Port-controlled industrial lands. To date, Nelson Worldwide has already started conducting stakeholder meetings, data collection, and analysis necessary to support a future facility to determine capital investment requirements, operational and staffing goals, and supply and demand targets. The second phase of the feasibility study, expected to be completed by the end of year, will develop the business plan for the future factory.

“We are in a housing crisis and the reality is we need to produce affordable housing much quicker than we currently do, or we will continue to see displacement of our low and middle-income communities,” said Mayor Breed. “By building a modular housing factory in our own backyard, we can create housing faster and more cost-effectively, while also creating great union jobs in partnership with our labor leaders.”

Mayor Breed’s $100 million commitment will help ensure the financial viability of the modular factory and will allow the City to develop its pipeline in a more cost-effective manner.

"Providing new homes for people experiencing homelessness as fast as we can is essential to creating a compassionate and livable city for all San Franciscans,” said Kate Hartley, Director of the Mayor’s Office of Housing and Community Development. “We are thrilled to be working on a new modular production facility that will create jobs and homes for San Franciscans.”

The San Francisco Building Trades Council is working closely with Mayor Breed to facilitate the creation of a San Francisco-based modular factory with union labor. 

"I want to thank Mayor Breed for recognizing the vital role building trades workers play in addressing the city's housing and homelessness challenges and the importance of keeping these jobs in San Francisco,” said Larry Mazzola Jr., President of the San Francisco Building and Construction Trades Council. “We are proud to partner with our City to help develop a facility that addresses these issues while keeping jobs in our local economy." 

Nelson Worldwide, Mayor Breed, City staff, labor partners and other stakeholders will be working steadily on the factory plan, including feasibility, through the end of 2018.

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