Commission selects SFHDC/Mercy and TNDC/YCD to build 290 affordable family units at Candlestick Point

The Successor Agency Commission on Aug. 16 approved the selection of San Francisco Housing Development Corporation paired with Mercy Housing California to develop Candlestick Point South Block 11A and Tenderloin Neighborhood Development Corporation together with Young Community Developers to develop North Block 10A.

Staff presented the parcels as OCII’s first 100% affordable agency lots in Phase 2 of the Candlestick Point / Hunters Point Shipyard project, describing a combined program that will include family-oriented rental housing, two on-site family childcare units per parcel and ground-floor retail facing Harney and Ingersoll. Officials said 25% of units across the sites are reserved for formerly homeless households; staff said the two sites will house a total of 73 formerly homeless households, including 10 units set aside for parents aged 18–24.

"This is a truly exciting milestone," OCII staff said in introducing the recommendations, adding the choices advance the mayor's goal to deliver 10,000 permanently affordable units by 2020. OCII’s evaluation panel ranked Mercy/SFHDC highest for 11A and TNDC/YCD second-highest; staff recommended splitting teams so each site can be delivered on its own schedule and so Southeast neighborhood partners get leading roles.

SFHDC’s executive director David Sobel said the SFHDC–Mercy proposal "took to heart" the parcel’s role as a gateway and emphasized housing counseling and supportive services to help residents apply and succeed in leasing. Don Faulks of TNDC said the TNDC–YCD partnership was "resonant with our mission to provide equitable access to opportunity and resources for low-income people."

Public commenters repeatedly urged stronger, predictable pathways for local and minority contractors and workforce. Pete Varma of the National Association of Minority Contractors told the commission that if neighborhood firms are not included "from the beginning we will be left behind again"; others said prequalification thresholds and outreach channels can exclude small local firms.

Commissioners pressed staff and the teams on outreach and hiring: Commissioner Pimentel asked which outreach methods were used and was told OCII hired consultant JVR to expand community outreach, and staff said they are expanding outreach tools beyond paid newspaper ads to tabling, social media and neighborhood events. Commissioners also questioned childcare selection, parking ratios (0.6 spaces per unit for Candlestick parcels) and the loan/financing structure for agency loans; staff said parking will be assigned by lottery and childcare spaces will be leased via a separate lottery and selection process that may prefer on-site residents.

On motions from the dais (moved by Commissioner Bustos, seconded by Commissioner Singh), the commission voted 4–0 with one absence to approve both staff recommendations separately: 5B (TNDC/YCD for Block 10A) and 5C (SFHDC/Mercy for Block 11A). Staff said schematic design will return for further review and that staff will present predevelopment loan agreements and gap financing in coming months.

The commission’s action means the two nonprofit-led teams will refine designs, finalize financing plans and return for schematic design and loan approvals ahead of expected construction starts in 2018 and full occupancy by 2020 if schedules hold.