San Francisco approves $36M funding for Hunters Point affordable housing project Block 56

The San Francisco City Commission convened on July 4, 2025, to discuss significant developments in affordable housing, particularly focusing on the Hunters Point Shipyard project. The meeting centered on authorizing a First Amendment to an exclusive negotiations agreement and a loan agreement totaling over $36 million for the construction of a 73-unit affordable housing project at 11 Innes Court.

Elizabeth Colomello, the housing program manager, presented the Block 56 project, which aims to provide 100% affordable housing for families, including one manager's unit. The project is being developed by Mercy Housing and the San Francisco Housing Development Corporation, both recognized for their expertise in affordable housing. The commission previously approved the project's basic concept and schematic design in April 2021.

The Block 56 development is part of a broader initiative to create 218 affordable housing units in the Hunters Point Shipyard area. The project is designed to include a mix of studio, one, two, and three-bedroom units, catering to various family sizes. Additionally, it will feature community amenities such as a central courtyard, a community room, and dedicated spaces for bicycles and vehicles.

Colomello highlighted the project's compliance with environmental regulations, noting that it falls within the scope of the Hunters Point Shipyard Phase I Reuse Final Environmental Impact Report. The commission was informed that extensive soil testing had confirmed the site is safe for residential use, alleviating community concerns regarding contamination.

During the discussion, commissioners expressed their support for the project but raised concerns about the high cost per unit, which is approximately $925,000. They acknowledged the rising construction costs and the competitive nature of funding applications, which may require multiple attempts to secure financing.

The commission ultimately voted in favor of the project, with a 3-0 approval, allowing the development team to proceed with the next steps in securing funding and beginning construction. The anticipated timeline suggests that construction could start in early 2023, pending successful financing applications. This project represents a crucial step in addressing the affordable housing crisis in San Francisco, aiming to provide secure housing for families in need.