November 1, 2018

New Proposal Would Provide Affordable Housing or Rent Subsidies to 205 Total Households, Help Mission District Families and Formerly Homeless

Plan Would Build 46 Below Market Rate Apartments

Income from Apartments Would be Used to Provide Annual Rental Assistance to 159 Mission District Households, In Perpetuity

SAN FRANCISCO –Maximus Real Estate Partners, the developer of the proposed 1979 Mission project at 16th and Mission, unveiled an updated community benefits proposal that builds below market rate (BMR) housing and provides ongoing financial aid to low-income families at risk for eviction in the Mission District.

The new affordability plan would build 46 BMR apartments on-site in a five-story building dedicated to the City and County of San Francisco, operated by Maximus, with leasing and subsidy management services coordinated through a local Mission District community nonprofit and the City.  All of the rental funds generated annually by those BMR homes, approximately $1,150,000 per year, would be reinvested annually, in perpetuity, to subsidize low-income rent for 159 existing Mission District households at risk for eviction – making the project’s total affordability package supportive of 205 households.

The 46 BMR apartments would be made first available to families currently living in single-room occupancy (SRO) units, and participants of the City’s Moving-On and SRO Families programs. The SRO Families program assists families moving out of SRO’s, and the Moving-On program moves formerly homeless individuals from supportive housing into independent living.

“Our proposal was drafted in direct response to the community’s feedback and concerns – to help families stay in the Mission, assist those potentially at-risk for eviction, and provide more housing for formerly homeless individuals,” said Seth Mallen, principal for 1979 Mission. “By providing not only affordable rental homes on-site, but also a constant revenue source, we can help at-risk Mission residents with valuable rent subsidies, so they can remain in the Mission forever.”

“The project will also produce new rental apartments to add more housing to the City’s overall supply and help ease the already tremendous demand for homes in the Mission,” continued Mallen. “This proposal was drafted after many meetings with the community and city to determine the best way to maximize every project dollar and make the most impact for the Mission at all income levels.”

All of the income generated by the rent of the BMR units would be managed by a local Mission-based community nonprofit, in coordination with the Mayor’s Office of Housing and Community Development (MOHCD), to fund the annual rental subsidies in perpetuity, for the 159 Mission District households. This new approach to build housing and stabilize existing housing, prevents displacement and helps Mission families and residents stay in their homes at a time when local, state and federal housing dollars are in jeopardy, or no longer available for rental assistance.

A 2015 report published by SRO Families Collaborative listed a 55 percent increase in families living in SROs across the city, with the cost of housing for those in SROs – some of which aren’t rent controlled – up 25 percent from 2011-2015. Nearly half (49 percent) of SROs house up to three people; 40 percent have four or more occupants and 11 percent have five or more. Many of these rooms are approximately 8 feet by 10 feet – comparable to a small hotel room.

The City’s Moving On initiative aims to shift as many as 10 percent of San Francisco’s supportive housing residents into independent living each year. That translates to 650 people, more than double the usual number of new supportive housing units created every year.

The ancillary community benefits outlined in Maximus’ previous proposal from 2015 will remain the same.

They include:

-The construction of a “Mercado” or Market Hall, where local neighborhood serving businesses and artists will have new opportunities to sell their food and products

-A Walgreens or comparable pharmacy on-site

-40% increase in total area of the 16th Street BART plaza, for all to use

-Improved lighting, landscaping and traffic calming measures on Capp Street to make the street safer for children at nearby Marshall Elementary School

-A program, overseen by a local Mission art curator, to allow local artists to showcase, display, and sell their art at the property on a regular basis

-100% union labor for construction

Maximus would subsidize rents for a portion of the available Mercado spaces, so they could be set aside for Mission neighborhood start-ups. The Mercado would serve as an incubator for vendors born and raised in the Mission to promote and grow their businesses, with the ultimate goal of assisting native-born residents to secure brick and mortar space for their enterprises. The Mercado would be managed by a Mission neighborhood non-profit.

The new proposal also includes an increased emphasis on promoting local Mission artists and small-businesses owned by residents born and raised in the Mission. Working in consultation with the project’s community advisory board, Mission 4 All, local artwork will be regularly curated for all of the project’s buildings.

Originally conceived to provide community outreach for the project, Mission 4 All has grown into a community-based organization serving at-risk youth and young adults in the Mission. Over the past two years, the group has organized numerous activities at the 1979 Mission project site, including kids Halloween festivals, Thanksgiving food drives, Christmas toy giveaways, career fairs, health workshops, local artist murals, and art and skateboard shows promoting local Mission-based small businesses.

Maximus remains available to the San Francisco Unified School District (SFUSD) and the parents at Marshall Elementary School to discuss potential community benefits for the school.

The 1979 Mission proposal is compliant with the nine-year community planning process that took place between 2001-2009 as part of the City’s Eastern Neighborhoods – Mission Area plan. That plan, which was unanimously approved by the Board of Supervisors in 2008, reaffirmed previous zoning rules that zoned the 1979 Mission site for 105 feet, due to the site’s location near mass-transit.

More information about the 1979 Mission proposal will be available at: