“Marvel in the Mission” aims to set a new standard for supportive housing
Construction crews have started work on a long-awaited affordable housing project designed to transform a busy urban intersection into hundreds of affordable apartments in San Francisco.
City officials, along with several organizations and financial partners, are planning an official groundbreaking ceremony later this month for the project known as “Marvel in the Mission.” However, work has already begun at the intersection of 16th and Mission Streets, a lively area where commuters pass through a BART station and gather for MUNI buses near a cluster of tall palm trees.
The development is expected to deliver a total of 382 housing units and serve as a model for supportive housing at the northeast corner of the transit plaza. Most of these units will be designated for families. The first phase will include 136 homes for low-income residents earning between 30% and 50% of the area’s median income, as well as formerly homeless individuals. On-site support services will also be provided.
This project is currently the largest affordable housing development underway in San Francisco and ranks among the city’s biggest residential construction projects overall. According to CoStar data, approximately 3,000 housing units are currently in development across the city.
The project is being developed by the nonprofit Mission Housing Development Corporation in partnership with the Mission Economic Development Agency. It is moving forward after years of discussions, community advocacy, and delays caused by financing challenges and broader difficulties in launching new housing projects in San Francisco.
Funding for the development comes from a mix of public and private sources. Recently, city officials approved a financing package that includes a $61 million construction loan from the Mayor’s Office of Housing and Community Development, along with tax-exempt bonds and a long-term ground lease. Additional support includes a $56 million tax-exempt construction loan from Western Alliance Bank, which is also contributing $21.6 million through a low-income housing tax credit investment. Five Star Bank is providing another $10 million through a similar tax credit program.
Storied Site
The history of this site dates back more than a decade. In 2013, a proposal to build a 10-story luxury development at this prominent corner sparked one of the city’s longest housing disputes. Community groups opposed the plan—nicknaming it the “Monster in the Mission”—and successfully pushed for affordable housing instead. The property was later put up for sale just before the COVID-19 pandemic disrupted San Francisco’s real estate market.
Since then, financing housing projects of any kind in the city has become increasingly difficult due to rising construction costs and high interest rates. In response, city and state leaders have introduced several policy changes aimed at increasing affordable housing supply.
These efforts include laws encouraging the conversion of vacant office buildings into residential units. Additionally, the city approved a major rezoning plan last year to allow for taller and denser housing developments in areas that have historically resisted growth. Despite these efforts, debates over housing policy continue, with ongoing legal challenges highlighting disagreements over how far such reforms should go.
Mayor Daniel Lurie stated that his administration is focused on expanding affordable housing so future generations can continue to live and raise families in San Francisco. He emphasized that the project will provide stability for residents while strengthening the Mission District community.
The development, also known as “La Maravilla,” is being built on the site of a former Walgreens and a commercial building that once housed a Burger King at the 16th and Mission transit plaza. This location has long served as a community gathering space, historically hosting everything from political protests to local street vendors.
Over time, the intersection became a symbol of the broader debate over gentrification in the Mission District, especially as the tech industry reshaped San Francisco starting in the 1990s.
According to housing officials, the intersection of 16th and Mission is one of the city’s most historically significant areas and also one of the most in need of investment. Financial partners involved in the project подчерк that stable housing, combined with access to essential services, benefits not only residents but the entire community.
Source: Original reporting by Rachel Scheier, CoStar News.
