City and Mercy Housing advance senior affordable housing plan at Laguna Honda campus

San Francisco officials and Mercy Housing California on Monday presented a two-phase proposal to build 100 percent affordable senior housing and on-site child care at the Laguna Honda Hospital campus, describing a path intended to add independent-living units in a first phase and enhanced-services units with an adult day health center in a later phase.

The Mayor’s Office of Housing and Community Development and Mercy Housing said Phase 1 would include independent-living senior rental housing targeted to households at a maximum of 55% of area median income (the presenters said that is roughly $65,000 annually for a two-person household) and an Early Childhood Education Center. Phase 2 is described as supportive “enhanced services” housing with an adult day health center; Mercy and MOHCD said additional coordination with the Department of Public Health will be required to finalize service elements and financing for Phase 2.

Project backers said the idea traces to prior bond commitments and city planning dating back decades, and that a $50 million set-aside for senior housing was included in Proposition A, the 2019 general-obligation affordable housing bond. Mercy Housing received a $3 million predevelopment loan in 2020 and restarted planning after Laguna Honda regained Medicare/Medicaid certification in 2024. Mercy and the mayor’s office described a preliminary schedule that would advance site…