California Expected to Approve $47.6M Grant for Mercy’s LGBTQ Senior Housing Tower

By: Paul Goldberg, Senior Editor | JRL CHARTS – LGBT Politics

A long-fought victory for LGBTQ seniors in San Francisco

SACRAMENTO, CA — (December 5, 2025) — A long-awaited LGBTQ-affirming affordable senior housing project in San Francisco is finally on track to receive state funding, after being denied twice in previous years. Approval of this funding would unlock the start of construction for a 187-unit development at the high-visibility corner of 1939 Market Street and Duboce Avenue, serving low-income LGBTQ seniors who are most at risk of housing insecurity.

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The project is led by Mercy Housing California with LGBTQ senior services provider Openhouse, building on their proven success with the 119-unit LGBTQ-welcoming senior housing already completed one block away at 55 and 95 Laguna Street.

State grant recommendation marks major turnaround

Mercy Housing had applied under the Affordable Housing and Sustainable Communities (AHSC) program — overseen by the California Strategic Growth Council (SGC) — but its nearly $39M request was previously rejected despite glowing feedback from reviewers.

This year, the agency now recommends a $47,579,100 award for the 1939 Market Street development, one of just 21 selected out of 47 applications statewide. The decision will be voted on Wednesday, December 10, when the SGC meets publicly.

Mercy’s AHSC score rose dramatically — from 77 in 2024 to 87 this year, signaling stronger alignment with the program’s housing and sustainability goals.

Transit-focused, climate-smart, and LGBTQ-affirming

Although the project does not fall within the AHSC “disadvantaged community” set-aside, state analysts project it will result in 38,527 metric tons of greenhouse gas reductions, thanks to its location directly on the F-line historic streetcar route along Market Street.

The development is 100% rent-restricted and tailored to the medical, mobility, and social needs of older LGBTQ residents — many of whom face discrimination in traditional senior housing.

Unit breakdown and priority for seniors in greatest need

The planned tower, approved by San Francisco’s city planners, will include:

106 rent-restricted studios
79 rent-restricted one-bedrooms
1-bed and 2-bed staff units for on-site management

Housing priority will be given to:

40 units for formerly homeless seniors via the Local Operating Subsidy Program
75 units for extremely low-income seniors
9 units for Plus Housing (LGBTQ homeless seniors at 50% AMI)
Remaining 70 units for seniors between 50–60% AMI

Openhouse will deliver on-site programming and services, while tenant selection will be handled through a city-run lottery process.

A project built through community persistence

The triangular 7,840 sq-ft lot was purchased by the city in 2020 for $12M from Sheet Metal Workers Local 104, with the union set to vacate when construction begins.

Local officials previously committed $4M in predevelopment funds, with an additional $52.36M in gap financing contingent on securing this state grant. The tower’s total projected cost is estimated at $159,669,745 including developer fees.

If the state award is finalized next week, construction is expected to begin in 2026, with seniors moving into the building as early as 2029.

JRL CHARTS Statement of Support

JRL CHARTS strongly supports the state’s approval of Mercy Housing’s funding request for 1939 Market Street — and we applaud the resilience it took to bring this community-driven project to the finish line.

For LGBTQ seniors who survived the AIDS crisis, fought for equality, and built the modern queer movement brick-by-brick — safe, stable, and welcoming housing is not a privilege. It is dignity. It is justice.

This development is more than a building — it is a message that California honors its LGBTQ elders and will not allow them to age into homelessness or discrimination.

We urge the California Strategic Growth Council to finalize this award on December 10 — and deliver the future that LGBTQ seniors deserve.

JRL CHARTS — Championing LGBTQ equality, one community victory at a time.

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