San Francisco Affordable Project Lands $78M in Financing
It's the largest affordable development in the Mission District.
Mission Housing Development Corp., in partnership with the Mission Economic Development Agency, has secured a $77.9 million financing package for the first phase of an affordable housing development in San Francisco’s Mission District. The deal combines Low-Income Housing Tax Credits and construction financing provided by Western Alliance Bank.
Known as The Marvel in the Mission—or La Maravilla—it’s the largest affordable housing development in the area. At full build-out, the community will bring nearly 400 affordable residences to the Mission District. Phase 1 of the project will deliver 136 units for households earning 30 to 50 percent of the area median income and formerly unhoused residents.
Western Alliance Bank provided a $56.3 million tax-exempt construction loan that will convert to a $5.6 million permanent loan after stabilization. The package also included $21.6 million in LIHTC equity through the SFMH Club Fund.
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Mission Housing and Lutheran Social Services will provide future residents with permanent supportive housing for resident stability.
The Marvel in the Mission construction site is located at 1979 Mission Street near the 16th Street BART Plaza. The San Francisco International Airport is approximately 13 miles away.
Additional financing for the project
Separately, Marvel in the Mission received $10 million in LIHTC funding from Five Star Bankcorp. The San Francisco Board of Supervisors also previously agreed to a $61 million loan from the San Francisco Mayor’s Office of Housing & Community Development as well as the issuance of tax-exempt bonds and a long-term tax-exempt ground lease for the first phase.
Construction on Phase 1 is underway and has an estimated completion date of December 2027 with Cahill & Guzman, a joint venture, acting as the general contractor. Preleasing is expected to begin March 2027. Future stages of the project will include communities on Mission Street and Capp Street.
Addressing the housing crisis in San Francisco
Overall occupancy in San Francisco remains high at 95.8 percent, up 40 basis points year-over-year, according to a Yardi Matrix report on the area. Construction of affordable housing communities remains low throughout the state of California. Enterprise Community Partners reports 39,217 affordable units stuck in the near-construction pipeline.
Some affordable housing communities are still months from completion. Last April, the Mission Economic Development Agency and Chinatown Community Development Center broke ground on Casa Adelante, a 168-unit project also taking shape in the Mission District. The project is aiming for completion in 2027.
Also expected to open in 2027 is MidPen Housing Corp.’s Midway Village Phase 2, a 113-unit income-restricted community, which began in May 2025. The project includes four phases that are redeveloping a 1977-built San Mateo County Housing Authority community in Daly City, Calif. The full redevelopment will total 555 apartments.
