Why is Mercy Housing pursuing this development?

Mercy Housing was awarded the parcel located at 600 7th Street by the City and County of San Francisco (the “City”), acting through the Mayor's Office of Housing and Community Developemnt ("MOHCD"), as a land donation from the 855 Brannan Street market-rate development. Mercy Housing is committed to work with the City to develop permanently affordable family rental housing which includes units serving formerly homeless households and ground-floor commercial use serving San Francisco’s South of Market (“SoMa”) neighborhood.


In 2014, the City and the developer of One Henry Adams Street and 855 Brannan Street reached an agreement in which both projects could satisfy their inclusionary housing requirements by conveying the 7th and Brannan site to MOHCD. (See Resolution 475-14: Real Property Conveyance — Land Dedication by Archstone Concourse, LLC — 600-7th Street — Inclusionary Affordable Housing.)


What is the planning process for this development?

Mercy Housing will seek entitlements through the Affordable Housing Streamlined Approval process, under Senate Bill 35 (SB35), which allows for a ministerial review of a Planning Application. A development qualifies for SB35 if it consists of 50% or more affordable housing, is in basic compliance with the Planning Code, and involves no demolition of housing units or a historic structure. The ministerial planning review process allows the Planning Department to approve the applications without a Planning Commission public hearing, since only developments that are essentially in compliance with the Planning Code may apply under the Affordable Housing Streamlined Approval process.

Mercy Housing will also apply for a State Density Bonus. The State Density Bonus allows developments that exceed a certain base level of affordability to increase the allowable density of the parcel. 


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