Board approves 365 Fulton ground lease for 20-unit supportive housing; neighbors voice parking, safety concerns

The Board of Supervisors adopted a resolution approving a ground lease for 365 Fulton Street (Central Freeway Parcel G) to develop 20 supportive housing studio units with onsite services for formerly homeless people.

Redevelopment Agency staff described the project as a partnership between Mercy Housing and Community Housing Partnership (CHP), including a 65‑year ground lease with a 34‑year extension option and an annual lease amount of $15,000. The project has planning entitlements and will pursue low‑income housing tax credits; major funding sources cited were LIHTC equity, tax increment financing and the state’s multifamily housing program. The agency said construction is anticipated to begin in February.

Community Housing Partnership’s staff and the project developer addressed neighborhood concerns in public testimony. Jeff (identified in remarks as an executive of Community Housing Partnership) outlined building operations and said, "We will have 24 a day, 7 day a week security staffing, at the front desk of the building that will also be monitoring perimeter cameras in order to ensure the safety of both our tenants and people in the neighborhood." The developer said the project includes on‑site supportive services coordinated with the Department of Public Health, an internal courtyard, retail space at ground level and preservation of a mural view from the Performing Arts Garage.

Speakers at the hearing included supporters from neighborhood groups and small businesses as well as employees of cultural institutions who raised concerns about parking and late‑night safety. Ruth Karen Jacobs, a volunteer at the San Francisco Opera, said converting the parking lot would force opera staff to park elsewhere and noted safety concerns for volunteers walking to work. Musicians and orchestra representatives asked that the city consider the needs of employees who work evenings and travel with instruments.

Project proponents said they had extensive outreach — CHP noted 39 community meetings — and endorsements from local groups including the Hayes Valley Neighborhood Association and the Western Addition Community Advisory Council. Public testimony also included people with lived experience of homelessness who said the housing would be life‑changing.

The Clerk recorded 9 ayes on the resolution. The Board adopted the resolution authorizing the ground lease.

Why it matters: The lease frees a former freeway parcel for permanent supportive housing with on‑site services, a key component of the city’s homeless services strategy. Neighbors’ concerns about parking and safety underscore typical trade‑offs in siting affordable and supportive housing near major cultural institutions.