Demand for low-income units illustrates trend

The intense competition for homes in two new high-rises south of Market Street illustrates the shortage of affordable housing in San Francisco for lower-income families and seniors - a problem expected to worsen as more residents near retirement age and public funding sources decline.

Nearly 3,750 seniors applied for 107 units at the Edith Witt Senior Community at 66 Ninth St. The 11-story tower was constructed this year by the nonprofit developer Mercy Housing in conjunction with the local firm KMD Architects and is expected to be occupied in the coming weeks.

Nearby, 6,641 people have requested one of 136 spots in a 12-story structure for families and children built by Mercy last year at 10th and Mission streets.

Combined, the two buildings provide more housing than any of Mercy's 124 projects built in California since 1983. The large number of units makes for a dense living environment akin to apartment complexes in Manhattan, but the builders did not scrimp on design details and open space.

If there is a question about the new buildings, it's that, given the need, why aren't there more like them?

The developers and their architects hope the project can serve as a model for future living spaces as urban working families continue to struggle to find decent housing and the senior population expands in San Francisco and nationwide. The development combines family and senior housing, and there are plans to encourage the residents of the two buildings to interact.

The U.S. population of people over 65 is expected to reach 72 million by 2030, twice the number in 2000. The oldest portion of the population - those 85 and older - will also double during that period, reaching 9.6 million.

In San Francisco, which has a population of about 800,000, 148,000 residents are age 60 or older. By 2020, that number is expected to be 174,000, according to city data.

"Developments like this become havens in the city," said Jane Graf, president of Mercy Housing. "With the senior tsunami landing now, investing in this type of housing is a public health issue. ... There's enormous benefits to keeping people out of nursing homes and emergency rooms, and the better their housing is, the more likely they'll stay healthy."

Many lack resources

San Francisco includes nearly 100,000 households that earn less than the median income - $89,450 for a three-person household - according to Anne Hinton, director of the city's department of aging and adult services. Nearly half of the 57,000 San Franciscans receiving government assistance are seniors, she said. Their incomes are no more than $85o per month.

Many of the city's elderly live in single-room-occupancy buildings (SROs) in the Tenderloin neighborhood that were constructed just after the 1906 earthquake. As a result, the dwellings often don't meet today's standards for access and convenience, Hinton said.

"The vast majority of people living in SROs are older than 50, and a number of them are in their 70s and 80s," Hinton said. "Those buildings aren't designed for people who are older or have disabilities, ... so you can see why so many people would be applying for the Mercy buildings."

Hinton noted that in the past year, several new senior affordable housing apartments have been built or are under construction in the city. The need for more is nonetheless profound, she said.

Mercy, which was founded in 1981 and has developed 10,525 affordable housing units in California has had control of the two SoMa parcels since 2000. For years, the plots where the new structures now stand were one large, asphalt parking lot.

The neighborhood is nondescript, with four-lane streets, some old office buildings, retail showrooms, vacant lots, condos and apartments.

It has taken most of a decade to organize the funding for the $70 million project (a mix of private loans and city, state and federal funds), obtain the necessary permits and complete construction, Graf said.

Some of the money has come from the U.S. Department of Housing and Urban Development, but Graf said federal resources have dwindled during the past 20 years and are not expected to increase any time soon. Private lenders generally demand the same loan terms from nonprofit developers as they do from for-profit builders, she noted.

A place to be proud of

Mercy sought out KMD Architects because the firm had successfully completed high-quality, dense urban projects and believed they could craft the complex at a reasonable cost.

KMD accomplished the goal of connecting the family and senior housing with two walkways that join a spacious terrace veranda and courtyard on the senior side with a youth center playground that is part of the family-oriented building.

The family building at 10th and Mission streets features a distinct glass staircase that protrudes from the side of the building, providing unencumbered views of the south and east parts of town. It also houses the 5,400-square-foot youth center with an activity room, computer lab and kitchen.

The senior building at Jessie and Ninth has a lounge, library, dance studio, computer lab or laundry room on each of its 12 floors. It also will include a 400-square-foot health clinic.

"We wanted to design an affordable building, but we also knew that we could do that and create pride of residency and enhance the space," said KMD Architects project manager Richard Sheng. "We added some important touches that didn't cost a lot more, but took some thought."

Graf said that the project's high percentage of housing per acre may be its most outstanding characteristic and shows that densely built urban housing is a good alternative for seniors and families. One tower has 179 units per acre; the other, 365. Most other affordable housing developments in San Francisco have much smaller unit-to-acre ratios, Graf said.

Mercy is still in the process of choosing the new senior residents from a lottery. They are scheduled to sign leases in the coming weeks.

A satisfied customer

Just down the street, Myisha McNairy moved into the family housing at 10th and Mission in March.

McNairy, 32, had been living in a transitional housing complex for women for a year before learning about the new Mercy development. A single mother who is unemployed and caring for two small children, she qualified for one of 44 units reserved for formerly homeless people.

McNairy is attending mental health counseling and career courses and said she hopes to work as an elder care aide.

Because her rent is subsidized by city funds, she currently pays $385 per month. When she gets a job, she will pay in the mid-$400 range. The highest income allowed at the building is 50 percent of the area median income.

"This building is really nice and it's helping to get people off the streets," McNairy said. "It's also brought a lot more life to the area. If they could build more like this right here, that would be great."

E-mail Robert Selna at rselna@sfchronicle.com.

This article appeared on page D - 1 of the San Francisco Chronicle