The proposed development is intended to provide affordable housing for seniors. The current proposal restricts rent levels for households earning between 15%-60% AMI. This equates to $15,150 to $60,500 per year for a single-person household in San Francisco in 2023. These levels are determined by the HUD Metro Fair Market Rent Area (HMFA)’s Unadjusted Area Median Income levels.

Determining an income mix for an affordable housing development is a complex process. The project sponsors must present a unit and income mix that is eligible for highly competitive State financing and addresses the affordable housing needs for the community, all while ensuring that the property’s rental income can pay for operations expenses (property management staff, maintenance, cleaning, utilities, insurance, etc.) for 20+ years. Once the income mix has been finalized, and state financing has been secured, it is very unlikely the income programming will change as State and City agencies will record deed restrictions limiting the units to the specified income levels.

Roughly 50% of the units are set aside for seniors with prior experience of homelessness. The remainder of units are for seniors earning up to 60% AMI ($60,500) and several of them will be supported by San Francisco’s Senior Operating Subsidy program.

Consistent with City policy and the project sponsor’s mission, approximately 25% of the apartments will be reserved for households who live in District 4 or within a ½ mile radius around the property or have been displaced from housing in San Francisco, expanding access and opportunities for families priced out of the neighborhood.

The proposed project is 100% affordable senior housing. In order to qualify, at least one senior (age 62 and above) must be part of the household and the entire household income is used for income qualification purposes.

TNDC and SHE will deliver a comprehensive wrap-around model of support services through a 1:20 ratio of social workers who will provide individualized services to seniors. Staffing will include 7 social workers, 1 Healthy Aging Coordinator and a part-time Food Security Programming Coordinator. Support services will be available Monday through Friday from 8:30 am to 7 pm, with flexibility for making appointments outside of the regular hours and on-call at all other times to respond to emergencies. Seniors will also have equitable access to support services from staff who can provide services in a language that is most appropriate to meet their needs. The building will also have 24/7 desk-clerks in the secured lobby. There will be an Adult Day Health Care Center at the site on the ground floor. This center and the services provided will aim to support tenants’ economic stability through benefits counseling and their economic mobility through employment training and support.

TNDC and SHE will jointly own, manage and provide services to the future residents of 1234 Great Highway. The building will employ 24-hour staff coverage including staff such as front desk clerks, assistant managers and general managers, who monitor the building and entries. Security cameras will be installed in all common areas and cover all exit and entrance doors and other common spaces. The building will be secured with key fobs and alarms.

A development like this is expected to include a mix of funding, such as Federal or State Tax Credits, State of California grants or loans, private bank loans, and City grants and loans. Many of these sources are limited and require highly competitive applications, especially for State grants, loans or tax credits. While City funding is expected, this typically is only a portion of the overall development budget given the limited City funds available.

TNDC has leased the property to a motel operator, who is operating the motel during the pre-development phase, until TNDC is ready for construction. The lease term is annual with options to renew.

Community feedback is always welcome! We strongly encourage anyone interested in this project to sign up for updates directly from the project developer team. You can do so by emailing 1234greathighway@gmail.com (mailto:1234greathighway@gmail.com)or visiting the project website: www.1234greathighway.com.(www.1234greathighway.com) This will ensure you are among the first to know about any community meetings and project updates. The first community meeting was held in November 2023 and the next is scheduled for June 25, 2024. See here for an overall project schedule.

Since the building will be 100% affordable senior housing, all the units will be rent restricted. More units help pay for operating expenses such as property management, maintenance, supportive services, cleaning, insurance, and utilities. Additionally, the main driving factor is the competitive nature of all financing that the project will need and apply for. The Acquisition Notification of Funding Application (NOFA) under which the project was funded, had a specific requirement for projects to maximize the number of units on each parcel. The reasoning for this requirement is the current housing crisis in San Francisco, and the need to build 100% affordable housing quickly and efficiently. Thus, the project as proposed does maximize the number of affordable housing units to address the housing crisis.

Yes, since the project is a 100% affordable housing development, it is eligible for streamlining under AB 2162. This allows 100% affordable housing projects to be built more quickly by expediting the planning review and approval process.

The project is still in the early stages of conceptual design. The exact date of construction commencement is unknown, as it depends on a variety of factors such as entitlements timeline and funding availability. A rough schedule of the overall project is linked here.