La Maravilla Affordable Housing Project Secures $61 Million Loan, Construction Slated for Early 2026

San Francisco, CA – The long-contested site at 16th and Mission Streets, known as 1979 Mission Street, is poised for significant development as the La Maravilla affordable housing project has secured a $61 million loan, with construction for its first phase expected to commence in early 2026. This development follows a decade-long community struggle and a complex land transfer that saw the property designated for 100% affordable housing.

The journey to this point has been protracted, with the site previously targeted for a market-rate development by Maximus Real Estate Partners, which community activists dubbed the "Monster in the Mission." Following sustained pressure from local groups like the Plaza 16 Coalition, Maximus sold the property to Crescent Heights in 2021. Crescent Heights subsequently donated the land to the City and County of San Francisco to fulfill affordable housing requirements tied to another major development at 10 South Van Ness Avenue.

The donation, while meeting regulatory obligations, paved the way for the "La Maravilla" project, which is being spearheaded by the Mission Economic Development Agency (MEDA) and Mission Housing Development Corporation. The project aims to deliver a total of 382 affordable homes across three phases. The initial phase will focus on 136 units of permanent supportive housing for formerly homeless residents.

Recent reports indicate that preliminary permits have been filed for the second and third phases, which will add 134 and 112 units, respectively, including family housing. While the site has not yet seen the construction of permanent homes, it currently hosts a temporary Tiny Homes Village, managed by the city's Department of Homelessness and Supportive Housing, providing interim shelter.

The San Francisco Board of Supervisors recently approved the $61 million loan from the Mayor’s Office of Housing and Community Development, alongside tax-exempt bonds and a long-term ground lease, marking a critical financial milestone. District 9 Supervisor Jackie Fielder expressed gratitude to community organizers, stating, "I am deeply grateful to the Mission community organizers who fought for over a decade to make La Maravilla a reality." This final legislative step clears the path for developers to break ground on what is anticipated to be one of San Francisco’s largest 100% affordable housing projects.