San Francisco Sun

San Francisco, CA – Mayor London N. Breed and the Mayor’s Office of Housing and Community Development (MOHCD) have announced a new strategy to access federal funding aimed at delivering nearly 3,700 affordable homes in San Francisco, expediting construction timelines.

The initiative, known as “Faircloth to RAD,” is designed to speed up the delivery of affordable homes and conserve local funds for other housing projects. At full buildout, it will provide operating funding for nearly 3,700 affordable homes in the city. The program will initially secure the delivery of 700 new homes currently in the pipeline across various neighborhoods, including the Sunset, Mission, Alamo Square/North Panhandle, and Potrero Hill.

San Francisco is the first city in California to launch a program under this new federal initiative. Faircloth to RAD will complement other affordable housing sources such as the recently approved $300 million affordable housing bond and the City’s inclusionary housing fund.

The program will also work alongside a proposed $20 billion regional housing bond on the November ballot. If passed by Bay Area voters, it could provide up to $2.4 billion for San Francisco.

“Making our City more affordable requires us to pull every lever we have to build more housing faster,” said Mayor London Breed. “This new program will allow us to help fund thousands of new affordable homes all across our City and deliver on our state housing goals. I want to thank the Biden Administration for their support with creative solutions to fund affordable housing in cities like San Francisco.”

The strategy was recommended by the Mayor’s Affordable Housing Leadership Council as part of her “Housing for All” plan, which aims to meet state-mandated goals of building 82,000 new homes by 2031. The council includes representatives from community organizations, housing developers, academia, business, and philanthropy.

“Faircloth to RAD represents a significant opportunity for San Francisco to support new construction, preservation, and acquisition of affordable housing,” said MOHCD Director Daniel Adams. “I am extremely grateful for the ongoing collaboration with the Housing Authority, our non-profit partners, and HUD staff that will help unlock San Francisco’s Faircloth Authority and support the delivery of thousands of affordable homes in the years to come.”

Carol Galante from UC Berkeley's Terner Center for Housing Innovation praised HUD’s Faircloth to RAD program: "While Federal subsidies for affordable housing haven’t kept pace with demand across the U.S., HUD’s Faircloth to RAD program provides a new and important tool in the toolkit for cities."

Tonia Lediju from the Housing Authority of San Francisco stated that better aligning state, federal and local goals would expedite crucially needed housing.

Joaquín Torres from the San Francisco Housing Authority Commission added that maximizing federal resources through Faircloth to RAD moves San Francisco closer to its affordable housing production goals.

The Faircloth Amendment sets limits on public housing units each authority can maintain – this limit is called “Faircloth Limit.” The difference between existing units and this limit is termed “Faircloth Authority.” San Francisco has a Faircloth Authority of 3,667 units.

HUD’s Faircloth to RAD allows authorities like SFHA (San Francisco Housing Authority) to use their Faircloth Authority with project-based vouchers set at Rental Assistance Demonstration (RAD) rents. This could potentially provide rent subsidies for 3,667 units.

MOHCD and SFHA's plan involves accelerating production of approximately 700 units initially while reducing operating subsidy costs by 76%, saving about $130 million over two decades.

New construction projects include:

- Outer Sunset: 1234 Great Highway – 216 units

- Potrero Hill: 249 Pennsylvania Street – 120 units

- Divisadero: 650 Divisadero – 95 units

- Forest Hill: 250 Laguna Honda – 115 units

- Mission: 1979 Mission PSH –150 units

Rehabilitation projects include Larkin Pine Senior Housing with 63 low-income senior units in Nob Hill.

Mission Housing's Executive Team highlighted that "Faircloth to RAD will be a historic investment in 100 percent affordable housing not seen since decades."

Katie Lamont from Tenderloin Neighborhood Development Corporation noted that sustainable operating funding through Faircloth to RAD would allow dignified housing solutions for seniors and families.

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