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Freedom West co-op secures funding to begin redevelopment

Freedom West co-op secures funding to begin redevelopment

Built World San Francisco, CA local

A 50-year-old co-op in San Francisco's Western Addition has city backing to rebuild its four blocks, starting with 115 homes for seniors.

October 20th, 2026: Funding secured for first phase of affordable housing

Overview

Updated Oct 26

San Francisco Mayor Daniel Lurie introduced legislation on Oct. 20, 2026, that would give Freedom West a 25-year development agreement for its four blocks in the Western Addition. The plan covers nearly 2,400 homes, more than 17% of them affordable, and District 5 Supervisor Bilal Mahmood is a cosponsor.

The first phase is a 115-unit affordable senior building at 880 McAllister Street, backed by a $23 million city gap commitment plus state tax credits and bond financing. Residents are set to move out temporarily in late 2026, with construction expected in February 2027 and an opening planned for spring 2029. Later phases would add 267 replacement co-op units and about 1,885 market-rate homes.

Why it matters

If it works, aging affordable housing gets rebuilt without losing residents. If it fails, about 1,000 co-op owners, roughly half seniors, could lose their homes.

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Key Indicators

382
Co-op units to be replaced
All existing Freedom West units will be rebuilt at no added monthly housing cost to shareholders.
~2,400
Total housing units proposed
Revised plan includes 115 senior units, 267 replacement co-op units and about 1,885 market-rate homes.
115
Senior housing units in first phase
100% affordable rentals at 880 McAllister with Section 8 project-based vouchers, for seniors 62 and older.
$23M
City funding for senior building
Preliminary gap commitment from the Mayor's Office of Housing and Community Development, part of a package that also includes state tax credits and bond financing.
$5.1M
Annual federal tax credits recommended
California Treasurer staff recommended reserving this annual credit plus $30 million of tax-exempt bond cap for the 115-unit senior building.

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People Involved

MS
Mattie Scott
President of Freedom West Board of Directors
Leading resident advocacy as the development agreement heads to the Board of Supervisors
RH
Rev. J. Austell Hall
Founder of Freedom West (historical)
Deceased
 Bilal Mahmood
Bilal Mahmood
District 5 Supervisor, San Francisco Board of Supervisors
Cosponsor of the Freedom West 2.0 development agreement legislation

Organizations Involved

Freedom West Homes Corporation
Freedom West Homes Corporation
Nonprofit limited equity housing cooperative
Secured city funding for the senior building and a proposed 25-year development agreement

A resident-owned co-op that provides affordable housing in San Francisco's Western Addition.
MacFarlane Partners
MacFarlane Partners
Real estate investment and development firm
Project sponsor and development partner

Minority-owned real estate firm leading the Freedom West 2.0 rebuild with Avanath Capital Management.
AC
Avanath Capital Management
Real estate investment firm
Development partner on the first phase

Investment firm working with MacFarlane Partners on the Freedom West rebuild.

Timeline

July 2020 October 2026

7 events Latest: October 20th, 2026 · 3 weeks ago
Tap a bar to jump to that date

  1. Funding secured for first phase of affordable housing

    Latest Funding

    Freedom West lines up a $23 million city gap commitment and gap financing from the Crankstart Foundation and the Housing Accelerator fund. The city also plans to commit tax increment funds under SB 593, pending approvals, for the 115-unit senior building at 880 McAllister Street.

  2. Mayor introduces Freedom West 2.0 development agreement

    Legislation

    Mayor Daniel Lurie introduced legislation granting the four-block project a development agreement with a base term of 25 years, cosponsored by District 5 Supervisor Bilal Mahmood.

  3. Planning Commission reviews draft EIR

    Public Hearing

    Commission hears initial presentation on the project and EIR findings.

  4. Draft environmental impact report released

    Environmental Review

    City publishes draft EIR detailing project's impacts and alternatives.

  5. Public scoping meeting held

    Public Engagement

    Community members provide input on the environmental impact report's scope.

  6. EIR notice of preparation filed

    Environmental Review

    City begins environmental review process for the redevelopment plan.

  7. Initial project application submitted

    Planning

    Freedom West and MacFarlane Partners file a pre-application with the city to redevelop the site.

Scenarios

1

First phase breaks ground on senior housing

Likely Resolves by Q2 2027

Discussed by: Freedom West leadership, city officials

The secured funding moves to construction. Temporary relocation of residents from 860, 870, and 880 McAllister begins in late 2026. Senior building opens by 2028, providing a model for later phases.

2

Full redevelopment approved after EIR certification

Possible Resolves by End of 2027

Discussed by: SF Planning, Board of Supervisors

The final EIR is certified and the Board of Supervisors approves the rezoning and development agreement. Construction then proceeds in phases through the 2030s.

3

Project stalls amid funding gap for later phases

Uncertain Resolves by End of 2028

Discussed by: Curbed SF, local housing advocates

The senior building proceeds, but the remaining phases—which rely on market-rate units to cross-subsidize affordable housing—fail to secure financing. The project remains partially built for years.

4

Board of Supervisors approves the Freedom West development agreement

Likely Resolves by Q2 2027

Discussed by: Mayor's Office of Economic and Workforce Development, District 5 Supervisor Bilal Mahmood

The legislation introduced Oct. 20, 2026 goes to the Board of Supervisors. Approval would secure entitlements for 25 years and clear the way for the 267 replacement co-op units and the market-rate phases that pay for them.

5

State tax credit award locks in financing for the senior building

Likely Resolves by Jan 31, 2027

Discussed by: California Treasurer's staff, Freedom West Senior Partners

Treasurer's staff recommended reserving $5.1 million a year in federal tax credits and $30 million of tax-exempt bond cap for the 115-unit building at 880 McAllister. An award would let construction start in February 2027 as planned.

Historical Context

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

1950s-1970s

Urban Renewal in the Fillmore (1957-1970)

San Francisco's redevelopment agency demolished the Fillmore district, displacing over 20,000 African American residents and closing 800 businesses. The destruction was justified as slum clearance but wiped out a thriving Black cultural hub.

Then

Tens of thousands lost homes and livelihoods; many moved to other parts of the city or left entirely.

Now

The African American population of San Francisco dropped sharply, and the Fillmore never fully recovered.

Why this matters now

Freedom West was founded as a direct response to this displacement. Today's redevelopment plan explicitly promises to repair that harm through replacement housing and community ownership.

1962

St. Francis Square Co-op (1962)

Another Western Addition co-op, St. Francis Square, was built with union and government support as a model of interracial affordable housing. Architect Henry Hill designed it as a low-rise green oasis.

Then

It became a successful cooperative that still operates today, with renters owning shares.

Now

It demonstrated that co-op ownership can provide long-term affordability and community stability.

Why this matters now

Freedom West was explicitly inspired by St. Francis Square. The new plan, with its higher densities, departs from that model—raising questions about whether it can preserve the same community spirit.

Sources

(11)
+5
SFist San Francisco Planning Department Freedom West Homes SF YIMBY City and County of San Francisco The Registry Northern California Focal News SF Daily Brief California State Treasurer Freedom West Homes City and County of San Francisco