Vacant Pennsylvania Avenue Lot to Become Affordable Housing

A 249 Pennsylvania Avenue lot may soon be developed into affordable housing, accommodated within a structure rising nine stories that features 124 units, including 38 studios, 15 one-, 36 two-, and 35 three-bedrooms. The project was approved by the San Francisco Planning Department in April.

The previous site owner, William Spencer Company, sold the property, dislocating the tenant at the time, Center Hardware. The building that’d housed the hardware store was demolished in 2019; the lot has been vacant ever since. 

In 2023, Tenderloin Neighborhood Development Corporation (TNDC) acquired the land, which the Mayor’s Office of Housing and Community Development (OHCD) had designated for affordable housing, through the Community Opportunity to Purchase Act. The nonprofit will develop the project in partnership with Young Community Developers. After construction is completed TNDC will transfer the land to OHCD. 

According to Anne Stanley, OHCD communications manager, 32 units will be reserved for families exiting homelessness, with five residences available to low-income HIV-positive households, along with associated supportive services. Those homes will be set aside for households earning 30 percentage of area median income (AMI).  The remaining residences — excluding the manager’s unit — will be available to households earning between 40 percent and 80 percent of AMI, $43,650 to $87,300 for a single person. Those qualified can submit an application through the City’s housing portal. 

“This development is critical to bringing new affordable units to ensure households of all incomes can call Potrero Hill home and benefit from the neighborhood’s incredible resources and location,” said Alberto Benejam, TNDC associate director of housing development. “We’ve received so much support from neighbors and community groups that are particularly excited to see the transformation of this vacant lot.” 

Daniel Sider, Planning Department chief of staff, said the project includes green spaces, air filtration, upgraded windows and soundproofing due to the proximity to Interstate 280. Other planned amenities are laundry and community rooms, courtyard, bike parking, family day care unit, and a roof with photovoltaic panels and vegetation to mitigate stormwater. 

The developers applied for a grant through the Affordable Housing and Sustainable Communities program, a state-funded initiative that supports construction of affordable housing and associated transportation infrastructure, and plan to seek tax credits in 2027. According to TNDC, if those steps are successful building could begin at the end of next year, with residents moving in by 2029.

J.R. Eppler, who is running for District 10 Supervisor, said that while a significant number of residences have been built in Potrero and Dogpatch over the last 15 years, most of them were market-rate. 

“The current plans that they had emphasize larger units, so more two- and three-bedroom apartments than we generally find in new construction,” said Eppler. “Their plan is to build a family-friendly project. Neighbors have been living with a large pit next to the freeway for a period of time. The lack of any sort of building or activity there has led to some struggles with homeless encampments and other uses of the sites.” 

Alison Heath, Potrero Boosters Development Committee chair, who lives about two blocks from the site, said the committee has seen multiple project iterations, and will work with the developers to ensure the best possible outcome. 

“I think that good design is a community benefit,” Heath said. “Affordable housing is super important, but let’s make sure it looks good and suits the location.”