For nearly two decades the corner building at 18th and Mission has stood empty, its once‑modern façade now a canvas for graffiti and street vendors. In 2017 the Mission Economic Development Agency (MEDA) bought the property with the goal of creating 63 below‑market‑rate condominiums for San Francisco teachers.
Funding setbacks stall the project
City officials quietly paused the development after more than a year of failed attempts to secure financing. Emails exchanged between MEDA and the Mayor’s Office of Housing and Community Development from February 2025 to April 2026 reveal that MEDA’s bids for up to $9 million in federal tax‑credit funding and $15.6 million in federal grants were rejected.
The federal tax‑credit application failed because the Mission District did not meet the “severe distress” criteria—its poverty rate fell below 30 % and median family income rose, according to the latest American Community Survey data. An EPA grant sought in November 2024 was also denied after an eligibility review.
City’s financing deadlines missed
MEDA had secured promises of more than $5 million from two sources: $2 million from the regional affordable‑housing program (deadline May 2025) and $3.1 million from the state CalHOME program (deadline June 2026). Both deadlines passed without the required construction start.
In June 2025 the city rejected MEDA’s request for $500,000 to cover demolition costs, noting the rationale was not compelling. MEDA argued demolition would save $12,000 a year in holding costs and improve the neighborhood, but the city declined.
Possible paths forward
By late 2025 city staff presented three options: keep the land idle while awaiting better market conditions, sell the property to repay the loan, or transfer the project to another nonprofit developer with city approval. MEDA’s chief real‑estate officer, José García, said selling would not cover the $6.4 million loan balance, and transferring would leave MEDA without any control.
The project’s original ownership model targeted teachers with household incomes up to 120 % of the city’s median ($136,150 for a single person, $194,500 for a family of four). MEDA later proposed raising the income ceiling to 130 % to attract higher‑priced sales, but the city rejected the change, citing the original $12 million loan was based on a condo model.
Context for San Francisco affordable housing
Unlike the 135‑unit Shirley Chisholm Village in the Sunset, which opened in 2024 for educators, the Mission project remains stalled. The city’s broader affordable‑housing efforts continue to face funding gaps and stringent federal eligibility rules, underscoring the challenges of delivering low‑cost homes for teachers in a high‑cost market.
Original reporting: Mission Local — read the source article.
