The San Francisco City Commission has approved an additional $8 million in funding for the construction of a 148-unit affordable housing project at 400 China Basin Street in Mission Bay. This decision aims to maintain the affordability of the homes amid rising interest rates that have impacted the project's financial viability.

The total budget for the project now stands at approximately $83.2 million. The increase in funding is necessary to counteract the effects of escalating mortgage rates, which have surged from an assumed 4.2% to 7.5% since the project's inception. This rise has made it more challenging for first-time homebuyers to qualify for loans, threatening the affordability of the units intended for low to moderate-income families.

Pam Sims, a senior development specialist with the Office of Community Investment and Infrastructure (OCII), presented the funding request, emphasizing the importance of keeping the sales prices within the targeted Area Median Income (AMI) levels. The project will offer a mix of one, two, and three-bedroom units, with prices set to remain accessible for households earning between 80% and 110% of the AMI.

The Mission Bay project area, originally approved in 1998, has a commitment to providing affordable housing, with 30% of the total units designated for this purpose. To date, 905 affordable units have been constructed, with an additional 313 planned or under construction.

The 400 China Basin project is currently about 70% complete and is expected to be ready for occupancy by September 2024. The development team has been proactive in outreach efforts, ensuring that potential buyers, particularly those with certificates of preference, are informed about the upcoming homeownership opportunities.

In addition to the funding approval, the commission discussed the project's marketing strategy, which includes outreach to local residents and partnerships with community organizations to facilitate homeownership classes. The goal is to ensure that the affordable units reach a wide audience, particularly those most in need.

As the city continues to grapple with housing affordability challenges, this project represents a significant step toward providing accessible homeownership options for San Francisco residents. The commission's decision underscores the city's commitment to maintaining affordable housing amidst changing economic conditions.