San Francisco County has taken a significant step towards enhancing affordable housing options for low-income and formerly homeless households. During a recent government meeting, the Board of Supervisors approved a resolution authorizing the Mayor's Office of Housing and Community Development (MOCD) to execute a grant agreement with 180 Jones Associates LP. This agreement, valued at approximately $5.98 million, will provide operating subsidies for a 25-year term to support a 70-unit affordable housing project located at 180 Jones Street.

The project, developed by the Tenderloin Neighborhood Development Corporation (TNDC), includes 34 affordable housing units, 35 supportive housing units, and one manager's unit. Completed in February 2024, the project was delivered under budget, allowing for the reallocation of nearly $4 million in savings back to MOCD. This funding will now be used to increase the operating subsidy from a previously approved $2 million to better align with rising operational costs and lower area median income (AMI) levels for some units.

The grant agreement is designed to ensure that the project can effectively serve its intended population by subsidizing operating costs that are typically not covered by tenant income. The subsidy will start at $44,000 this year and is projected to escalate to over $550,000 by 2048, ensuring the long-term viability of the housing project.

In addition to this primary resolution, the meeting highlighted the importance of the 180 Jones Street project in addressing the city's affordable housing crisis. The initiative is part of a broader strategy to provide stable housing solutions for vulnerable populations in San Francisco, particularly in light of the challenges posed by the COVID-19 pandemic and its impact on the rental market.

As the city moves forward with this agreement, it reinforces its commitment to supporting affordable housing development and ensuring that low-income residents have access to safe and stable living conditions. The MOCD and TNDC are poised to collaborate closely in the implementation of this grant, which is expected to have a lasting positive impact on the community.