State giving S.F. $8.8 million for 2 affordable housing projects

The state will grant San Francisco $8.8 million to help fund two affordable housing projects in the Tenderloin and the South of Market neighborhood.

Using proceeds from its cap-and-trade auction, the state will give $6.5 million toward the development of 85 affordable units at 222 Beale St. and $2.3 million for the Eddy and Taylor Family Housing project.

Mercy Housing is developing 222 Beale St., which will provide 120 affordable housing units. The complex is part of the Transbay Transit District.

The state will also give $2.3 million to help build 103 affordable units at the corner of Taylor and Eddy Streets in the Tenderloin. The money is in addition to $10 million the state has already provided for the project.

“It’s fantastic,” said Don Falk, executive director of the Tenderloin Neighborhood Development Corp., which is developing the project. “Eddy and Taylor represent an ideal transit-oriented development site.”

The Hearst Corp. and Forest City are also contributing $18 million toward the project as part of their affordable housing obligation for building the $1 billion 5M project at Fifth and Mission.

Mayor Ed Lee praised the state’s donation.

“This almost $9 million investment in affordable housing in San Francisco is an investment in our city’s low income families and residents,” Lee said in a statement. “This partnership and investment will help us build more affordable housing for low-income San Franciscans, as well as strengthen our neighborhoods. At the same time, it will help California meet its climate action goals.”