Enterprise Community Partners, Fannie Mae, Chase, and the City and County of San Francisco announce groundbreaking of 7th and Brannan, a 221-home affordable community from Mercy Housing California, financed through the Low-Income Housing Tax Credit.
SAN FRANCISCO – Today, Enterprise Community Partners (Enterprise), Fannie Mae, Chase, the City and County of San Francisco and Mercy Housing California (MHC) announced the groundbreaking of 7th and Brannan. This new eight-story, 221-home affordable housing community in San Francisco’s South of Market neighborhood will be financed, in part, through a $53.3 million equity investment by Enterprise and Fannie Mae under the federal Low-Income Housing Tax Credit program. Construction and permanent financing are being provided by Chase, with additional support from the San Francisco Mayor’s Office of Housing and Community Development. Developed by MHC, 7th and Brannan will provide permanent supportive housing for 120 families and individuals who have experienced homelessness, as well as 100 homes for families with low incomes, and one management unit. Construction completion is slated for the summer of 2024.
“We’ve got to prioritize preventing low-income families from becoming homeless, or being priced out of San Francisco, just as much as supporting people who are experiencing homelessness,” said MHC President Doug Shoemaker. “This development gives us the unique opportunity to do both at once.”
“Affordable homes paired with services that keep people housed are a proven way to end chronic homelessness,” added Scott Hoekman, president of Enterprise’s housing credit investments business. “Developments like 7th and Brannan are possible because of the Low-Income Housing Tax Credit and committed partners like Fannie Mae. We are proud to work together alongside MHC to create long-term affordability in San Francisco.”
“There continues to be a vital need for more affordable housing in the heart of San Francisco and opportunities to shelter those experiencing homelessness,” said James Vossoughi, Executive Director, Community Development Banking, Chase. “We’re committed to working with industry leaders like Mercy Housing to help close that housing gap by supporting communities that will bring more permanent affordable housing to the local communities who need it most.”
The site was awarded to MHC by the City and County of San Francisco through the Mayor’s Office of Housing and Community Development (MOHCD) as a land donation from Equity Residential, the developer behind the market-rate development at 855 Brannan Street. During the early stages of the COVID-19 pandemic, the development site served as a testing site operated by the San Francisco Department of Public Health in partnership with Color.
“Projects like this are key to the City’s work to provide permanent housing and care needed to truly improve the lives of people experiencing homelessness,” said Mayor London Breed. “7th and Brannan is just one example of what we are doing to improve this neighborhood. With eight affordable housing projects currently under construction in District 6 alone, and another eight slated to break ground over the next three years, I’m proud of the momentum that is making a difference for San Franciscans.”
“The 7th and Brannan development is a perfect example of what we need to do as a city to ensure residents aren’t priced out of San Francisco during this housing crisis,” added District 6 Supervisor Matt Dorsey. “To reach our housing goal of 82,000 additional units by 2030, the City needs to push for more affordable housing, not just within District 6, but across all neighborhoods, and I look forward to working with my colleagues at the Board of Supervisors to see this through.”
7th and Brannan will include 100 studios, 23 one-bedroom, 82 two-bedroom and 15 three-bedroom apartments, plus the management unit. 100 homes are designated for families earning between 50% and 60% of the area median income (AMI), while the 120 apartments with supportive housing services will be available to families earning between 30% and 50% of AMI. Amenities for the building include a community room, laundry room, bike room, and landscaped courtyards, with several offices for management and services.
“Fannie Mae is proud to help support housing like 7th and Brannan for underserved communities through our Low-Income Housing Tax Credit program,” said Dana Brown, Vice President, Customer Engagement at Fannie Mae. “Working with partners like Enterprise and Mercy Housing, we help provide affordable housing and supportive services for individuals and families in San Francisco. This is a great example of how we can help address critical housing needs to stabilize and strengthen our communities.”
The ground floor of 7th and Brannan will include more than 5,000 square feet of retail space that will be leased at below-market rent to local small businesses to help meet community needs and strengthen the SoMa neighborhood.
In accordance with MOHCD’s initiative to support public art, MHC is investing $400,000 to sponsor artwork from local artists to adorn the building’s facades. Local artists have submitted proposals for innovative, dynamic works that will have a positive impact on the building’s inhabitants, the local SoMa neighborhood, and all City residents.
7th and Brannan will be managed by Mercy Housing Management Group, and supportive housing services will be provided by Episcopal Community Services of San Francisco. The property was designed by Santos Prescott + Associates and will be constructed by a joint venture between Suffolk Construction and local firm Guzman Construction Group. The building is expected to welcome its first residents in summer 2024.
About Mercy Housing California
Mercy Housing California (MHC) is the largest regional branch of Mercy Housing, Inc. (MHI), a leading national affordable housing nonprofit headquartered in Denver, CO, and founded in 1981. MHC’s mission is to create stable, vibrant, and healthy communities by developing, financing, and operating affordable, program-enriched housing for families, seniors, and people with special needs who lack the economic resources to access quality, safe housing opportunities. MHC owns 160 rental properties across 36 California counties, serving low- and very-low-income working families, seniors, people who have experienced homelessness, people living with HIV/AIDS, and people with disabilities.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorgan Chase had $4.0 trillion in assets and $285.9 billion in stockholders’ equity as of March 31, 2022. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally.
About Enterprise Housing Credit Investments
Enterprise’s housing credit investments business operates under Enterprise Housing Credit Investments, an affiliate of Enterprise Community Partners – a national nonprofit that exists to make a good home possible for the millions of families without one. We support community development organizations on the ground, aggregate and invest capital for impact, advance housing policy at every level of government, and build and manage communities ourselves. Since 1982, we’ve invested $54 billion and created 873,000 homes in all 50 states – all to make home and community places of pride, power and belonging.
West Coast Commercial Real Estate News