Construction underway for the new affordable housing project at 300 De Haro Street.
San Francisco, August 28, 2025
San Francisco has commenced construction on an 11-story affordable housing development at 300 De Haro Street in Potrero Hill, aiming to provide 425 new apartments for low to moderate-income tenants. This project is part of a broader initiative to address the city’s housing crisis and reflects recent legislative efforts to accelerate housing production. Criticism regarding community engagement and neighborhood impact has arisen as some residents express concerns about the project.
San Francisco has officially commenced construction on a new 11-story affordable housing project located at 300 De Haro Street in Potrero Hill. The development will provide 425 new apartments aimed at tenants earning between 30% and 70% of the area’s median income, roughly $41,000 to $95,000 per year. The project’s design centers on compact living, with studios sized 300 to 400 square feet that will include convertible furniture such as Murphy beds.
This initiative represents one of the first implementations of Senate Bill 35, a state policy intended to speed up housing production by allowing developers to bypass certain review processes in cities not meeting state housing goals. A state senator who introduced SB 35 attended the groundbreaking and spoke in support of how the measure could unlock more affordable housing projects in San Francisco and beyond.
San Francisco faces a statewide mandate to build housing, with a goal of 82,000 new housing units by 2031. Yet the city has struggled to keep pace, permitting only 1,074 new units in 2024, a figure that represents its lowest annual total since the Great Recession. The affordability challenge is echoed in regional rent levels, with monthly rents around $3,280 in San Francisco and $2,330 in nearby Los Angeles.
The project team notes that construction costs and financing challenges have hindered residential development in recent years. In response, developers have increasingly turned to affordable housing as a strategic approach to advance housing supply under tighter financial conditions.
The 300 De Haro project was originally planned as mixed-income housing but shifted to fully affordable housing due to changing economic conditions and financing opportunities, including programs like low-income housing tax credits. The development will include roughly 6,000 square feet of retail space and a range of community amenities, such as lounges, fitness areas, and a rooftop deck.
Groundbreaking took about six years to reach this milestone, reflecting disruptions caused by the COVID-19 pandemic. Neighborhoods have offered mixed reactions to the project, citing concerns about the height and the speed of decision-making enabled by SB 35. The team emphasizes that the project is part of a broader strategy to increase the share of affordable housing in San Francisco during challenging market conditions.
The 300 De Haro development is positioned as the largest affordable housing project in San Francisco since the onset of the COVID-19 pandemic. It is anticipated to be completed by summer 2027, marking a significant step toward addressing the city’s affordable housing crisis while expanding community amenities and retail opportunities.
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