The San Francisco City Council convened on July 4, 2025, to discuss significant developments related to the Transbay Block 2 project, focusing on the commitment of funding for affordable housing initiatives. The meeting addressed three key agenda items, all aimed at facilitating the construction of affordable rental units in the area.

The first item involved authorizing a permanent gap loan of approximately $61.9 million to Transbay 2 Family LP for the development of 184 affordable rental housing units, including two manager units. This funding is part of the broader Transbay Terminal redevelopment project, which aims to revitalize the area following the demolition of the Embarcadero Freeway.

The second item was a proposed amendment to an existing pre-development loan agreement, increasing the loan amount by $4.5 million to a total of $8 million. This additional funding is intended to support the development of the same 184 rental units, along with a childcare facility and retail space.

The third item discussed was the authorization of a horizontal ground lease with Transbay 2 Family LLC, which would facilitate site preparation work for the construction of a total of 335 affordable rental units across two projects—184 units at Block 2 East and 151 units at Block 2 West. The funding for this site work is capped at approximately $2.3 million.

Director Koslovsky emphasized the importance of these approvals as critical steps in advancing affordable housing development in San Francisco. The project is designed to meet the city's affordability requirements, with units aimed at low-income families and those experiencing homelessness. The anticipated timeline for construction on Block 2 East is set to begin in early 2024, with completion expected by 2026.

The meeting also highlighted the ongoing efforts to secure additional funding through state programs, with results from a recent application expected by the end of August. The council's actions are seen as vital to ensuring that the project can compete effectively for limited financing resources.

In conclusion, the council's decisions mark a significant advancement in San Francisco's commitment to increasing affordable housing availability, addressing a pressing need in the community. The next steps will involve further approvals and the commencement of construction activities as planned.