Supervisors Approve Housing Package to Add 671 Homes, More Than 40% Affordable

SAN FRANCISCO — The Board of Supervisors unanimously approved today a housing package proposed by Supervisor Preston that will add up to 671 homes, unsticking a mixed-use project at 98 Franklin Street, enabling a land dedication for 100% affordable housing at 600 McAllister Street, and jumpstarting the affordable project at Parcel K in Hayes Valley.

“This is a quadruple win: a new high school, a new site in District 5 for 100% affordable housing, a renewed investment in delivering on Parcel K, and good jobs for San Franciscans building new housing at 98 Franklin,” Preston said.

Preston’s legislation increases the height and density at 98 Franklin Street, while allowing a land dedication to purchase 600 McAllister Street, and securing an additional $1 million to jumpstart a long-delayed affordable project in Hayes Valley. All told, the package will help create up to 671 homes, more than 42% of which will be permanently affordable housing.

The 98 Franklin Street project was rezoned in 2020 by a unanimous vote of the Board of Supervisors, but because of rising construction costs and pandemic-fueled supply chain issues, the development has not moved forward to construction. Project sponsor Related California approached Preston’s office to collaborate on a path that could deliver on 98 Franklin, which includes facilities for the French American International School, while providing more affordable housing than originally proposed through a land dedication.

“We’re pleased to see this legislation move forward that will help bring 98 Franklin one step closer to reality, eventually creating a new mixed-use building and much-needed affordable housing in the Hayes Valley neighborhood,” said Matthew Witte, Senior Vice President of Acquisitions and Development with Related California. “We want to sincerely thank Supervisor Preston for his work to make this happen.”

Preston was able to secure an additional $1 million in fees that will help jumpstart an affordable housing project at Parcel K in Hayes Valley. The property, currently used by outdoor venue Proxy, is one of a dozen parcels in the neighborhood where the Octavia Freeway once stood. When activists successfully advocated for the city to tear down the freeway in the late 1990s, the state transferred ownership to the city to create permanently affordable housing. More than 20 years later, the site remains undeveloped. Preston’s earmarked contribution, combined with his advocacy to build affordable housing on Parcel K, is designed to kick off the predevelopment phase, with an RFP for building the affordable housing on the site promised by the Mayor’s Office of Housing and Community Development this summer. MOHCD estimates the site will yield between 80-90 units of affordable housing.

“I am proud to push the envelope to create as much affordable housing as possible,” Preston said. “In this down market, with many private developments stalled or abandoned, the City should aggressively pursue site acquisitions for affordable housing. Bold pursuit of these opportunities is the only way we will meet our affordable housing goals.”

Leaders at the French American International School noted their gratitude. “We want to express our appreciation to Supervisor Preston for his assistance in helping us inch closer to making our new state-of-art high school a reality so we can continue to grow and remain a part of the Civic Center and Hayes Valley communities,” said Melinda Bihn, Head of French American International School.

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