Mayor London N. Breed and community leaders today celebrated the acquisition and preservation of 86 units of affordable housing at 270 Turk Street in the Tenderloin. A portion of the units in the building will be designated for formerly homeless individuals through funding from the Educational Revenue Augmentation Fund (ERAF) discretionary portion windfall, as previously authorized by Mayor Breed.
“As we work to build more affordable housing throughout San Francisco, preserving our existing affordable housing is a crucial part of our strategy to keep people housed and help prevent homelessness,” said Mayor Breed. “By preserving these homes, we’re ensuring that these residents can continue to live here for years to come, and can stay connected with their friends and community.”
The building at 270 Turk St. is currently home to low- and moderate-income residents earning anywhere from 20% to 170% Area Median Income (AMI). The Tenderloin Neighborhood Development Corporation (TNDC) acquired 270 Turk in March 2019 in order to preserve it as permanently affordable housing. TNDC acquired the building with a $24 million bridge loan provided by the San Francisco Housing Accelerator Fund (SFHAF). The Mayor’s Office of Housing and Community Development (MOHCD) expects to provide TNDC with permanent financing for the building in March 2020, following the completion of critical repairs to the building systems and residential units.
The Department of Homelessness and Supportive Housing (HSH) plans to partner with TNDC and MOHCD to provide rental contracts for a portion of the units at 270 Turk to be made available to formerly homeless individuals. The ERAF windfall legislation that Mayor Breed signed in March 2019 included $15.2 million in funding to HSH for the master leasing of approximately 300 permanent supportive housing units for formerly homeless individuals.
“Preservation of vulnerable properties is one of MOHCD’s key initiatives and we are thrilled that households at 270 Turk will be able to remain in their homes without fear of displacement, and the building will forever serve low and moderate income San Franciscans,” said Dan Adams, Acting Director of the Mayor’s Office of Housing and Community Development. “Thank you to the SFHAF and TNDC for collaborating on this crucial acquisition that will help to maintain the vibrancy of the Tenderloin community.”
“Nonprofit acquisition is an essential tool to prevent displacement and—in the case of 270 Turk—create new homes for those who need them most,” said Rebecca Foster, CEO of SFHAF. “We’re thrilled we could provide TNDC with the flexible capital needed to acquire this building and to take it off the speculative market, ensuring permanent affordability for its current and future residents. We stand ready to support TNDC and other nonprofits in the critical preservation work they do.”
“I am deeply proud that we collaborated with the City and the SFHAF on a creative solution to protect essential affordable housing right here in the Tenderloin at 270 Turk,” said Don Falk, CEO of TNDC. “We are freezing the existing level of affordability for 86 households across a range of incomes to help ensure that San Francisco remains a city for all, while also preserving the character of the neighborhood.”
The acquisition and subsequent rehabilitation plan includes approximately $2.25 million in funding for upgrades to the building’s life safety systems, including fire alarms, sprinklers, and an elevator. The upgrades will also include the installation of a mechanical ventilation system to improve indoor air quality and remediate mold.
“I moved to the United States from Cambodia as a teenager, and quickly settled down in San Francisco and into 270 Turk Street,” said Visot Bun, San Francisco resident. “I’ve lived here with my family in this building, and my Cambodian community here in San Francisco. I’m grateful for this home, it’s close to everything! I’m happy with the new ownership and am pleased that I don’t have to move.”
The San Francisco Housing Accelerator Fund innovates smart approaches that put public, private, and philanthropic money to work to expand the supply of affordable housing in San Francisco. SFHAF was incubated in the Mayor’s Office and kick-started with investments from the City, Citi Community Development, Dignity Health, and The San Francisco Foundation. In two years of operation, SFHAF has deployed over $100 million to fund the preservation and construction of 417 affordable homes in San Francisco.
TNDC is a community-based nonprofit whose mission is to provide affordable housing and services for low-income residents, build community, and promote equitable access to opportunity and resources. They provide housing for over 5,000 people, about a quarter of whom came to the organization after exiting homelessness.
Through the City’s acquisition programs, 34 buildings consisting of 278 units have been acquired, and another 12 buildings with 110 total units are in the acquisition pipeline. $84 million of City funds have been committed for acquisition and preservation programs, and over 500 San Franciscans have been stabilized to date.
270 Turk was originally constructed in 1927, and is currently on the National Register of Historic Places as a contributing structure to the Uptown Tenderloin Historic District.