T
he US Department of Housing and Urban Development has given the green light for San Francisco's Housing Authority to demolish a dozen public housing buildings at Potrero Terrace and Annex. The site is at the center of a corruption scandal involving an apartment manager who allegedly embezzled rent from tenants. As part of the Hope SF redevelopment project, the 61 two-story apartment buildings will be torn down by year's end.

    The demolition is part of a larger plan to replace World War II-era housing with new apartments, including market-rate units. However, the timeline for these market-rate units is uncertain due to a downturn in the housing market. Bridge Housing, the master developer, has not yet secured a market-rate partner and is unsure when construction can begin.

    The Hope SF program aims to redevelop four public housing sites, replacing 1,900 units with 5,300 apartments, including some market-rate options. At Potrero Hill, 800 affordable units are on track for completion, but the 800 market-rate units may be delayed due to the challenging market conditions.