A long-vacant half-acre parcel at 249 Pennsylvania Avenue in Potrero Hill is on track to trade dirt and fencing for a nine-story, 124-unit affordable apartment building, according to city records and developer filings. The Tenderloin Neighborhood Development Corporation is leading the project with co-developer Young Community Developers, and the plan leans heavily on larger two- and three-bedroom apartments aimed at families. Project sponsors say the schedule depends on public financing; if grants and tax credits line up, construction could start late next year and residents could be moving in by 2029.
The San Francisco Planning Department’s project listing outlines a nine-story building with 124 units and a bundle of resident amenities. As detailed by the San Francisco Planning Department, the application calls for laundry and community rooms, a family day care unit and rooftop open space. SF YIMBY reports a proposed unit mix of 38 studios, 15 one-bedrooms, 36 two-bedrooms and 35 three-bedrooms, tilting the building toward family-sized apartments.
Who the Homes Are For
City officials and the project team say the development will blend permanently supportive housing with lower-income rental apartments. In an interview with Potrero View, the Mayor’s Office of Housing and Community Development’s communications manager said 32 units will be reserved for families exiting homelessness and five homes will be set aside for low-income people living with HIV. The remaining apartments, excluding a manager’s unit, are expected to serve lower area median income bands. City project files also spell out a requirement that a portion of the homes be permanently supportive and deeply subsidized.
Design, Amenities and Freeway Mitigation
Planning documents describe courtyard open space, laundry and community rooms, bike parking and a vegetated roof topped with photovoltaic panels. The proposal includes an on-site family day care unit and other resident services meant to support larger households. Because the site sits immediately beside Interstate 280, project materials call for upgraded windows, improved air filtration and sound-insulation measures to reduce indoor noise and protect air quality, as outlined by the Mayor’s Office of Housing and Community Development.
Funding and Timeline
The developer team has applied for a state Affordable Housing and Sustainable Communities grant and plans to pursue low-income housing tax credits in 2027. TNDC told Potrero View that if those efforts are successful, construction could begin at the end of next year, with residents moving in by 2029. In the meantime, TNDC has used acquisition and predevelopment financing to hold the property and prepare it while longer-term funding is assembled.
Where This Fits in the Neighborhood
The parcel, once home to Center Hardware and cleared after a 2019 demolition, was acquired by TNDC in 2023 for roughly $11.3 million, according to public records. SF YIMBY and city filings trace the site’s long vacancy and the nonprofit’s push to convert it into family-oriented affordable housing. Local groups have spent years calling for more subsidized family units in Potrero Hill, and developers say the current plan is meant to respond to that demand while addressing design and environmental concerns tied to the freeway-adjacent site.
Qualified applicants will eventually be able to apply through the city’s centralized housing portal. Listings, eligibility details and lottery information will appear on the DAHLIA site at housing.sfgov.org. Specific AMI targets, neighborhood preferences and the application window will be announced when the project’s leasing program is launched.
