Mayor London Breed Announces Acquisition and Preservation of Affordable Housing in the Richmond
Twelve residential homes will remain permanently affordable thanks to the City’s Small Sites Program
Mayor London N. Breed and Supervisor Sandra Lee Fewer today announced the acquisition and preservation of 12 rent-controlled homes and one commercial space in the Richmond District. The building, located at 369 3rd Avenue, was preserved as affordable housing as part of the City’s Small Sites program, which has stabilized over 500 San Francisco residents.
“We’re in a housing crisis that is pricing out low-income and middle-income residents,” said Mayor Breed. “We need to build more housing of all types, but we also need to make sure that we’re protecting current tenants, and this acquisition ensures that 12 families in the Richmond will remain in their homes for years to come.”
The apartments at 369 3rd Avenue currently serve low- to moderate-income households with a building-wide average of 73% of Area Median Income. Mission Economic Development Agency (MEDA) will acquire the property and preserve it as permanently affordable housing. The acquisition was financed with an $8.2 million loan provided by the San Francisco Housing Accelerator Fund (SFHAF). The Mayor’s Office of Housing and Community Development (MOHCD) expects to provide MEDA with permanent financing for the building in spring 2021, following the completion of critical repairs and upgrades.
“It is because of the Small Sites Program that we are able to purchase buildings like this to preserve affordable housing, stabilize tenants, and prevent displacement,” said Supervisor Fewer. “We should be robustly investing in the Small Sites Program and capacity building so we can preserve more of these buildings and add to our stock of permanently affordable housing. I am so grateful to MEDA for stepping up and working with my office to save this building and keep all the tenants in their homes.”
The rehabilitation plan includes approximately $700,000 in crucial repairs to the building including seismic retrofitting and strengthening; updating electrical and building systems; and additional exterior renovations and improvements.
“We are thrilled to continue expanding our acquisition and preservation efforts across the City. 369 3rd Avenue is MOHCD’s third acquisition in the Richmond District and fourth on the west side of the City,” said MOHCD Acting Director Daniel Adams. “We recognize the need to preserve affordability and prevent displacement of San Francisco’s long-term residents and are committed to the growth of our rapidly expanding Small Sites Program. Thank you to MEDA and the SFHAF for joining us once again in partnership to ensure these homes remain affordable for decades to come.”
“We’re excited to be able to provide the critical bridge funding to MEDA to secure the permanent affordability of these apartments in the second preservation deal in District 1,” said Rebecca Foster, CEO of the San Francisco Housing Accelerator Fund. “Thank you, MEDA for stepping up, once again, to preserve small sites throughout the city; we look forward to continuing to partner with them and the Mayor’s Office to build the capacity necessary to realize preservation in all of the city’s neighborhoods.”
The San Francisco Housing Accelerator Fund innovates smart approaches that put public, private, and philanthropic money to work to expand the supply of affordable housing in San Francisco. SFHAF was incubated in the Mayor’s Office to address gaps in and complement the public sector’s funding mechanisms. The fund was kick-started with investments from the City, Citi Community Development, Dignity Health, and The San Francisco Foundation. In less than three years of operation, SFHAF has raised and deployed over $109 million to fund the preservation and construction of 433 permanently affordable units in San Francisco.
“369 3rd Avenue is a microcosm of the San Francisco tenant community, as the property is home to multi-generational, multi-ethnic families who organized to preserve their affordable housing,” said Juan Diego Castro, MEDA Assistant Project Manager. “The Richmond District’s median rent is twice that of this building. If these tenants were evicted by a different owner, they would not be able to stay in the city. Mission District-based MEDA is proud to partner with other San Francisco communities which can benefit from the Small Sites Program, and wants to thank MOHCD and SFHAF for their ongoing support to preserve affordable housing across our city.”
“I am so grateful that MEDA, the City’s Small Sites Program, and Supervisor Sandra Lee Fewer and her team have done so much to help save families like ours in buildings like ours at risk of losing the tenants that help keep San Francisco whole,” said longtime 369 3rd Avenue resident, Chloe Jackman. “We must stop landlords who only care about lining their pockets and who have lost sight of the diversity and magic that has made this city so amazing. Thank you to everyone who helped make our building a safe and sacred space for the next 99 years. What a beautiful gift.”
Through the City’s acquisition programs, 35 buildings consisting of 290 units have been acquired, and another 15 buildings with 137 total units are in the pipeline. Over $86 million of City funds have been committed for acquisition and preservation programs, and over 500 residents have been stabilized to date. In September, MOHCD issued a $40.5 million Notice of Funding Availability for future Small Sites Program acquisitions and capacity building grants, which is part of Mayor Breed’s strategy to prevent displacement and expand the City’s affordable housing preservation pipeline.