Construction is in the home stretch at 1633 Valencia Street in San Francisco, where a six-story, 146-unit Mercy Housing building has filled in the block between Bernal Heights and the Mission District with a new brick-and-tile facade. The project delivers 145 permanently supportive studio apartments for seniors plus a manager's unit, with a rent structure designed so residents pay no more than 30% of their income. Exterior work on the streetfront and courtyard now appears complete, and operators are planning to start moving residents in early 2026.
Exterior Looks Move-In Ready, Photos Show
A recent site check by San Francisco YIMBY found the facade and sidewalk zone largely finished. The outlet describes brick cladding accented with blue and white glazed tiles, angular bay windows and thick metal solar shades, plus two vertical cut-outs stacked above the main and service entrances. Photos also show completed street plantings and a landscaped rear courtyard. The same report names Cahill Contractors as the general contractor and Mercy Housing as the developer.
Design, Size and Units
David Baker Architects lists the building at roughly 67,648 square feet across six stories, with 146 total apartments that include 145 studios and one manager unit, along with parking for 32 bicycles. Mercy Housing describes the property as permanent supportive housing for residents 55 and older, with an on-site supportive services suite, a community room and furnished units. Both the architect and developer credit Fletcher Studio for the backyard landscaping and Dolores Street Community Services as the community service provider.
How It Was Financed And Scheduled
According to City of San Francisco loan-committee documents, the capital stack combines 4% Low Income Housing Tax Credits, tax-exempt bonds and support from the San Francisco Housing Accelerator Fund, along with a Local Operating Subsidy Program commitment to cover services. Those documents project construction finishing in December 2025 and operations starting in January 2026, while an earlier announcement from the Mayor's Office pointed to a May 2026 move-in window. The financing structure is set up to keep rents below 30% of each resident's income and to preserve affordability for households earning up to 50% of area median income.
Design-Build Strategy Shortened The Schedule
Project partners leaned on a design-build delivery method paired with prefabricated components to trim both time and cost, a hybrid approach the San Francisco Chronicle reports has brought per-unit costs below typical local levels. The team drew lessons from Mercy Housing's Tahanan development while stopping short of a fully modular process, and officials say that mix helped accelerate roof, window and waterproofing installation compared with standard schedules. City and nonprofit leaders are watching closely, hoping the model can be repeated to deliver more permanently supportive homes across San Francisco.
Block-Level Impact And A Neighboring Project
The 1633 Valencia site sits on land banked by Sequoia Living, which is planning a seven-story, 126-unit senior building at 3485 Cesar Chavez Street that is slated to break ground after the Mercy Housing project, according to Sequoia Living. Taken together, the two developments are expected to bring more than 250 affordable senior homes to the block, along with new ground-floor services next to the CPMC Mission Bernal Sutter campus. Neighbors will also see added street landscaping, secured bike storage and a landscaped backyard reserved for residents.
What’s Next
Referrals and placements into the building will be coordinated with the San Francisco Department of Homelessness and Supportive Housing and partner agencies. Mercy Housing and city filings indicate the team expects to begin accepting referrals and moving residents in early 2026. Onsite services will be run by Dolores Street Community Services, and building staff will manage the community room and supportive-services suite for tenants. As San Francisco looks to speed up affordable construction, 1633 Valencia is likely to be watched closely as a test case for lower-cost permanent supportive housing for older adults.
