Massive Mission District affordable housing plan slashed to 100 units amid funding crisis
by the El Reportero staff, with reports by Marina Newman of Mission Local
A bold vision for affordable housing in San Francisco’s Mission District has been dramatically reduced, as the San Francisco Municipal Transportation Agency (SFMTA) confirmed that the Potrero Yard Modernization Project will now include just 100 units — down from the original 513-unit plan.
Originally designed to rise above the city’s sprawling Muni bus yard at 17th and Bryant streets, the project promised more than 700 bedrooms of rental housing, three ground-floor retail spaces, and a rooftop park to serve the surrounding neighborhood. It would have been the largest addition of affordable housing in the Mission in decades.
The project had already been downsized last year from 513 units to 465 to accommodate larger family-sized apartments. But the agency announced on September 30 that, due to financial constraints, it would shrink the development even further — an 80 percent reduction.
“Unfortunately, the current scope of the project is well beyond what we can afford,” the SFMTA said in a statement. “To move forward with this critical investment in Muni service, we have to make very difficult decisions to lower costs.” The agency declined further comment.
Modernizing the century-old Potrero bus yard is estimated to cost $560 million, with a large portion of that budget needed to reinforce the roof to support housing above. The new plan envisions a single-story bus maintenance facility with a slim row of affordable housing along Bryant Street between 17th and 18th streets.
The details of the income levels for the remaining subsidized units have not yet been clarified. Previous proposals aimed to accommodate tenants with household incomes ranging from $30,250 to $121,000 for single residents and $43,350 to $172,900 for families of four.
Funding has long been a challenge. Earlier plans relied on a combination of local, state, federal, and regional resources, which have been difficult to secure. In January 2024, SFMTA expressed optimism about finding the necessary financing, but four months later the agency announced that the full project remains unaffordable.
The project now faces a deadline: if the SFMTA Board of Directors does not approve a project agreement by March 31, 2026, the bus yard modernization and even the 100-unit housing plan could be canceled.
Local housing advocates are frustrated. Chris Arvin, a member of SFMTA’s Citizens Advisory Committee, criticized the city for failing to allocate adequate funding. “This is a failure on the part of the city,” Arvin said. “The SFMTA is just working with what they have.”
Anne Stanley, a spokesperson for the Mayor’s Office of Housing and Community Development (MOHCD), emphasized that the office remains committed to building housing at the site, while noting that funding depends on state and federal resources. “MOHCD continues to work closely with SFMTA to ensure the Potrero Yard project is financially viable, which is a critical step toward advancing both infrastructure and future housing development,” she said.
As the Potrero Yard project is scaled back, San Francisco faces a sobering reminder of the financial and logistical obstacles in delivering affordable housing in one of the city’s most expensive neighborhoods.
