Pull to refresh
Logo
Mission District housing project to break ground after community deals expire

Mission District housing project to break ground after community deals expire

Built World San Francisco, CA local

152-unit complex at 321 Florida St. starts construction next month with fewer affordable units and smaller payouts than approved in 2021

Today: Mission Local reports reduced benefits at 321 Florida

Overview

Updated 1 hour ago

Next month, a nine-story, 152-unit apartment complex breaks ground in San Francisco's Mission District. The developer's community commitments look different than they did when the project won approval in 2021.

Back then, DM Development promised $2 million toward an affordable-housing purchase, a free ground-floor gallery, and cash for a preschool and park. Those agreements expired in 2023. Construction starts with 15 affordable units instead of 23, and a $500,000 pledge instead of $2 million.

Why it matters

When the Mission's next housing project breaks ground without its promised benefits, it sets the template: community agreements expire, and developers move on.

Monday: what changed in San Francisco, CA

One short email a week with the openings, closings, permits and council votes we covered. Free. Unsubscribe in one click.

Questions about this story

Free account needed to ask — your question is kept and asked for you right after sign-up. Answers are public.

No questions yet — be the first to ask.

Key Indicators

152
Total units
Down from 168 units in the 2021 approval.
15
Affordable units
Down from 23 in the 2021 plan; share dropped from 14% to under 10%.
$61.7M
Construction loan
PNC Bank loan backed by Ascentris equity, funding the build.
$500K
Community donation pledged
Down from the $2 million promised toward purchasing 2675 Folsom St.

Voices

Curated perspectives — historical figures and your fellow readers.

Ever wondered what historical figures would say about today's headlines?

Sign up to generate historical perspectives on this story.

People Involved

Organizations Involved

Timeline

December 2018 2028

8 events Latest: Today
Tap a bar to jump to that date
  1. Completion expected

    Upcoming Milestone

    Project slated to open in late 2028.

  2. Groundbreaking expected

    Upcoming Milestone

    Construction to begin with $61.7 million PNC loan secured.

  3. Mission Local reports reduced benefits at 321 Florida

    Today Report

    Project to break ground next month; benefits shrink to $500K pledge and no gallery.

  4. Supervisors cut housing requirements

    Policy

    Board of Supervisors eliminates inclusionary rules for smaller projects, cuts impact fees 67%.

  5. Community agreements expire

    Contract

    Memorandums of understanding with community groups lapse.

  6. Interest rates stall construction

    Market Condition

    Rising rates freeze the project; CAST stops hearing from the developer.

  7. City approves 168-unit project

    Approval

    Planning commission approves 168 units, 23 affordable; community agreements signed.

  8. Developer buys Florida Street parking lot

    Property Purchase

    DM Development buys the lot at 321 Florida St. for $11.2 million.

Scenarios

1

Groundbreaking Proceeds, Construction Runs to 2028

Likely Resolves by Nov 30, 2026

Discussed by: Reported plan; DM Development CEO Mark MacDonald

DM Development breaks ground in November 2026 as scheduled, with the $61.7 million PNC loan in place. Construction proceeds toward a late 2028 opening. Community benefits stay at the reduced level: $500,000 to CANA plus a match, no gallery space, no $2 million affordable-housing fund.

2

Developer Restores Some Benefits After Public Pressure

Possible Resolves by Q2 2027

Discussed by: Friends of Franklin Square's Jolene Yee; DM Development's statement on ongoing conversations

DM Development signs new agreements with some community groups. Sweet Peas preschool gets its playground improvements. Friends of Franklin Square gets a renewed MOU and continued clean-up sponsorship. The CAST gallery and $2 million anti-displacement fund remain cut.

3

Financing Falls Through, Construction Delayed Again

Unlikely Resolves by End of 2026

Discussed by: Historical pattern; the project has stalled since 2022

The $61.7 million loan falls through or construction costs escalate, forcing another delay before or shortly after the planned November 2026 groundbreaking. The project returns to limbo.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2017-2027

Casa Adelante / 1515 South Van Ness (2017-2027)

A market-rate proposal on a South Van Ness lot drew heavy community opposition. Developer Lennar agreed in 2017 to make 20% of units affordable, then rising costs killed the project. The city bought the site in 2019 and handed it to two nonprofits to build affordable housing.

Then

The project broke ground in April 2025 as a 168-unit all-affordable complex for families, expected to open in early 2027.

Now

It became a model of community organizing converting market-rate plans into public housing in the Mission.

Why this matters now

Shows a Mission lot where community power flipped a project toward affordability. 321 Florida runs the other direction.

before 2021

Mission 'monster' project era (before 2021)

Market-rate buildings in the Mission met organized opposition with nicknames like 'Monster in the Mission,' 'Beast on Bryant,' 'Fright on Folsom,' and 'Titanic Mess on South Van Ness.'

Then

These projects drew protests and delays as community groups pressed for concessions.

Now

The opposition era shaped what community groups could expect from later developers.

Why this matters now

Mission Local cites this era as the backdrop to 321 Florida's quiet, low-conflict approval, a sign of shifting leverage between community groups and developers.

Sources

(4)