S.F. Approves Slashing 365 Units From Potrero Yard Housing Project

SFMTA board greenlights reduced plan at Muni bus yard in the Mission despite community opposition.

Published on Mar. 4, 2026

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The San Francisco Municipal Transportation Agency (SFMTA) board voted to dramatically downsize an affordable housing project in the Mission District, reducing it from 465 units to just 100 units. The decision was made due to Muni's budget deficit, inflation, and increased construction costs, but has faced strong opposition from community members and advocates who feel the city is failing to deliver on promised affordable housing.

Why it matters

The Potrero Yard housing project was seen as a crucial opportunity to bring much-needed affordable housing to the Mission District, which has faced significant gentrification and displacement in recent years. The dramatic reduction in units is a major setback for the community's efforts to maintain economic diversity and access to housing.

The details

The revised plan downsizes the project at Bryant Street between 17th and Mariposa from 465 units of affordable housing to just 100 units. The project would sit alongside the SFMTA's Potrero Yard, which houses dozens of buses and includes a four-level bus storage and maintenance facility. The 100 units would be studio and three-bedroom apartments reserved for households earning up to 80% of the area median income.

  • The SFMTA board approved the reduced plan on March 3, 2026.
  • Demolition work for the bus yard is planned to start in 2027, with construction completion expected in 2030.
  • The project still needs to be approved by the San Francisco Board of Supervisors, scheduled to vote on the matter on March 17, 2026.

The players

SFMTA

The San Francisco Municipal Transportation Agency, the city agency responsible for overseeing public transportation and infrastructure projects.

Erick Arguello

A Mission resident and president of the Calle 24 Latino Cultural District, an organization that opposed the reduction in affordable housing units.

Roberto Hernandez

The founder of the Our Mission No Eviction group, who was part of an SFMTA working group focused on the Potrero Yard project for the past eight years.

Julie Kirschbaum

The SFMTA's director of transportation, who apologized for the loss of housing units at the beginning of the meeting.

Stephanie Cajina

The vice chair of the SFMTA board, who was the only commissioner to vote against the reduced project, citing the failed commitment to building affordable housing.

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What they’re saying

“We feel a little used. We worked making sure this was all available for the community to give input, and then this is what we end up with.”

— Erick Arguello, Mission resident and president of Calle 24 Latino Cultural District (Mission Local)

“There is clearly poor planning on both the SFMTA and the Mayor's Office of Housing. I just didn't get a sense that they were even coordinating any kind of effort to get the financing.”

— Roberto Hernandez, Founder of the Our Mission No Eviction group (Mission Local)

“I urge you to make all those considerations and hope that you will move this project forward in a way that brings us all the housing that was promised to the community.”

— Tracy Gallardo, Longtime Mission resident and District 10 legislative aide (Mission Local)

“I'm sorry that I can't do more today than just cast my one vote, but I'm very disappointed how this ended up.”

— Stephanie Cajina, Vice chair of the SFMTA board (Mission Local)

What’s next

The project still needs to be approved by the San Francisco Board of Supervisors, scheduled to vote on the matter on March 17, 2026.

The takeaway

The dramatic reduction in affordable housing units at the Potrero Yard project is a major setback for the Mission District community, which has long struggled with gentrification and displacement. The decision highlights the ongoing challenges of financing affordable housing projects in San Francisco, even when there is strong community support.