The Facts

A fully subsidized senior housing project proposed for the former Motel 6 at 1234 Great Highway is paused, despite the developer pursuing “fast-track” approvals. The plan is for two eight-story buildings with 199 homes plus an on-site care center; half the units would be reserved for seniors who were previously homeless.

Tenderloin Neighborhood Development Corporation says shifting federal conditions—especially uncertainty around HUD’s Restore-Rebuild rental-subsidy tool—plus not being awarded a major state grant have pushed them to pause.

The Context

Fully subsidized projects typically require a patchwork of money: the City’s direct contribution is typically only about a third of total development costs—the rest has to come from a fragile mix of state, federal, and private dollars.

The GrowSF Take

San Francisco needs to rethink how it funds subsidized housing, because the old system is breaking down.

We’re encouraged to see Supervisor Myrna Melgar and Supervisor Stephen Sherrill advancing a tax-increment financing proposal to modernize how SF pays for affordable housing. We’d like to see the rest of the Board move it forward faster—because when outside funding gets shaky, SF still needs a plan to keep projects like 1234 Great Highway moving.