California Construction News staff writer
The City of San Francisco is switching gears to expedite construction of about 3,700 affordable homes in San Francisco with federal funding. The new strategy is focused on “Faircloth to RAD,” a national program that aims to streamline the delivery of these essential homes and save local funds for other housing projects.
“Faircloth to RAD represents a significant opportunity for San Francisco to support new construction, preservation, and acquisition of affordable housing,” said MOHCD Director Daniel Adams. “I am extremely grateful for the ongoing collaboration with the Housing Authority, our non-profit partners, and HUD staff that will help unlock San Francisco’s Faircloth Authority and support the delivery of thousands of affordable homes in the years to come.”
San Francisco will initially focus on building 700 new homes at various sites across the city, including the Sunset, the Mission, Alamo Square/North Panhandle and Potrero Hill. Through Faircloth to RAD, San Francisco has the potential to receive federal rent subsidies for 3,667 units, applied to both new units in MOHCD’s pipeline and existing units in the City’s affordable housing portfolio – delivering homes faster.
It’s the first time the program has been used in California and Mayor London Breed says it will complement existing affordable housing sources, such as the recently approved $300 million affordable housing bond and the inclusionary housing fund supported by market-rate developments.
“Maximizing federal resources like Faircloth to RAD moves San Francisco closer to its affordable housing production and stabilization goals,” said Joaquín Torres, president of the San Francisco Housing Authority Commission. “By working together, our city partnerships are drawing more resources to expedite our housing goals and ensuring that San Francisco continues to lead the way in offering smart housing models for other California counties to follow.”
The new program will work alongside a proposed $20 billion regional housing bond on the November ballot, which could provide up to $2.4 billion for San Francisco if approved by Bay Area voters.
“While federal subsidies for affordable housing haven’t kept pace with the demand across the U.S., HUD’s Faircloth to RAD program provides a new and important tool in the toolkit for cities to use to advance their affordable housing goals,” said Carol Galante, founder of the Terner Center for Housing Innovation at UC Berkeley. “I am delighted that San Francisco is taking the initiative to move forward on one of the Leadership Council’s principal recommendations.”
