Construction Begins on New Affordable Housing Project in San Francisco

San Francisco, August 28, 2025

News Summary

San Francisco has commenced construction on an 11-story affordable housing development at 300 De Haro Street in Potrero Hill, aiming to provide 425 new apartments for low to moderate-income tenants. This project is part of a broader initiative to address the city’s housing crisis and reflects recent legislative efforts to accelerate housing production. Criticism regarding community engagement and neighborhood impact has arisen as some residents express concerns about the project.

San Francisco Breaks Ground on 425-Unit Affordable Housing Development at 300 De Haro Street

San Francisco has officially commenced construction on an 11-story affordable housing project at 300 De Haro Street in Potrero Hill. The development will add 425 new apartments intended for tenants earning between 30% and 70% of the area’s median income, a range that translates to roughly $41,000 to $95,000 per year before taxes.

The units will be compact, with many studios sized 300 to 400 square feet. They are designed to include convertible furniture such as Murphy beds, aimed at maximizing usable space in smaller living areas.

This project is among the first implementations of SB 35, a state measure intended to speed up housing production by allowing developers to bypass certain review steps in cities that have not met state housing goals. A state legislator who introduced SB 35 attended the groundbreaking, underscoring the measure’s role in accelerating affordable housing efforts.

Context for such developments includes ongoing affordability pressure in major California cities. San Francisco and other cities have faced challenges meeting housing goals, with the city permitting only 1,074 new units in 2024, the lowest total since the Great Recession. Alongside high rents in California, monthly rents in San Francisco and nearby Los Angeles remain well above typical incomes, contributing to the affordability gap.

Construction costs and the availability of financing have also shaped housing patterns. In some cases, developers have pivoted toward affordable housing solutions as a way to navigate funding hurdles, including financing opportunities tied to low-income housing tax credits.

The 300 De Haro project was originally planned as mixed-income housing but shifted to a fully affordable model due to changing economic conditions and financing opportunities such as LIHTC. The development will include roughly 6,000 square feet of retail space and several community amenities, including lounges, fitness areas, and a rooftop deck, all intended to serve residents and the surrounding neighborhood.

California’s housing goals require substantial new inventory, with the state asking San Francisco to build 82,000 new housing units by 2031 to address the shortage. The planning and construction timeline for the De Haro project reflects a longer arc, as it took six years to reach groundbreaking amid the disruptions caused by the COVID-19 pandemic. The project is positioned as the largest affordable housing development in San Francisco since the onset of the pandemic, representing a significant step toward easing the city’s affordable housing crisis.

Public reaction among neighbors has been mixed, with concerns raised about the height of the building and the rapid decision-making processes enabled by SB 35. Supporters, including project developers, describe the effort as a strategic move to increase the share of affordable housing in San Francisco despite challenging market conditions and financing landscapes.

The completion target for the 300 De Haro project is summer 2027, marking a milestone in efforts to expand affordable housing options in the city and to provide homes for a broader range of income levels. Officials describe the project as a significant step toward addressing the city’s housing crisis and a model for using state tools to accelerate production where it is most needed.

Frequently Asked Questions

What is the 300 De Haro Street project?

The development is a new 11-story affordable housing project in Potrero Hill designed to add 425 apartments for households earning 30% to 70% of the area median income.

How many units are planned and what income levels are targeted?

425 units are planned, targeting tenants with annual incomes approximately between $41,000 and $95,000 before taxes.

What features will the residences include?

Units will be compact studios sized 300 to 400 square feet and will include features such as Murphy beds to maximize usable space. The project also includes about 6,000 square feet of retail space and various community amenities.

Why is SB 35 mentioned in relation to this project?

SB 35 is a state law designed to speed up housing production by reducing review steps in cities not meeting state housing goals. The groundbreaking event involved a state legislator who introduced SB 35, illustrating its role in accelerating affordable housing initiatives.

What is the broader context for this project in California?

The project comes amid housing shortages and high rents in major cities. California requires significant new housing, and many developments seek LIHTC financing and other tools to move projects forward more quickly.

What is the timeline for completion?

The project is planned for completion in the summer of 2027, making it one of the larger affordable housing efforts in the city since the pandemic began.

Key features at a glance

Units

425

Stories

11

Retail Space

6,000 sq ft

Affordability Range

30–70% AMI

Completion timeline

Summer 2027

Deeper Dive: News & Info About This Topic

Additional Resources

• CBS News: San Francisco Develops 425 Unit Affordable Housing
• SF Chronicle: Affordable Apartments in San Francisco
• The Frisc: Supreme Court and SF Affordable Housing Funding
• NBC Bay Area: New Housing at 300 De Haro Street
• SFYIMBY: Affordable Housing at 301 Alves Lane
• Google Search: Affordable Housing San Francisco
• Wikipedia: Affordable Housing
• Encyclopedia Britannica: Housing
• Google News: San Francisco Housing News