UPDATE: The San Francisco Municipal Transportation Agency (SFMTA) has just announced a significant reduction in its ambitious transit and housing project at the historic Potrero bus yard. Facing a staggering $300 million operating budget deficit, the agency will no longer proceed with plans for up to 575 units of affordable housing above a new transit facility, a project initially hailed as a groundbreaking endeavor.
This urgent development raises critical concerns about housing shortages in San Francisco, a city grappling with rising living costs and a lack of affordable options. Just last year, the project received approval from the San Francisco Board of Supervisors, marking it as a potential model for future public transit and housing collaborations. However, the financial realities have overwhelmed original plans.
Muni’s Chief Mechanical Officer, Michael Henry, showcased the current state of the Potrero bus yard, built in 1915. “To work on some of these buses, you have to climb down in this pit with limited clearance,” he explained. The new facility promised not only modern maintenance solutions but also increased bus storage capacity from 156 to 246 vehicles.
Despite the project’s initial promise, SFMTA leadership confirmed that the scope had to be dramatically scaled back. “We’re just not going to be able to deliver the same amount of projects with the same scope that we originally anticipated,” said Sean Kennedy, SFMTA’s Chief Planning and Delivery Officer.
The decision comes as the city faces an urgent housing crisis. Supervisor Shamann Walton, who represents the district, emphasized the need for affordable housing, advocating for a mix that included “up to 100% but at least 50% affordable.” Yet, the mixed-income formula proved too costly, and the project has ultimately been reduced to only 100 units of affordable housing on Bryant Street, located next to the bus yard rather than above it.
The implications are significant. Sunny Angulo, former legislative aide, noted, “This is a missed opportunity… these units have evaporated overnight.” The Potrero Neighborhood Collective will now cover the costs of the new bus yard, with SFMTA committing to a repayment plan over 30 years. However, questions remain about whether the agency can sustain this financial commitment amid its looming deficit.
As the city struggles to meet state mandates for housing by 2031, the drastic changes to this project reflect broader challenges in balancing urban development and transit needs. The SFMTA’s vision for a modern facility that supports both transportation and affordable living has been complicated by financial constraints and planning delays.
Moving forward, the focus will be on constructing the new bus yard, but the fate of affordable housing in San Francisco hangs in the balance. With each passing day, the urgency of addressing the housing crisis intensifies, leaving residents and officials alike questioning what could have been.
Stay tuned for updates as this story develops, and what steps SFMTA will take next in light of these significant changes.
