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long-planned redevelopment of the dilapidated Plaza East public housing complex in San Francisco's Western Addition has hit a roadblock, with Strada Investment Group abandoning its role in the market-rate component. The project aimed to replace 193 run-down apartments with 755 new homes, including 292 affordable units and 270 market-rate units.

    Strada had partnered with McCormack Baron Salazar and Without Walls on the plan, which would have also included a gym or day care center, rooftop terraces, private open space, and parking for cars and bicycles. However, the developer has declined to comment on its decision to leave the project.

    The Plaza East complex was built in 2001 with $43.2 million in funding, including $20.2 million from federal sources. Residents have long complained about substandard conditions, including leaks, electrical fires, and pests. A tenant group sued the developer in 2021 over "severe health and safety hazards."

    The San Francisco Housing Authority has secured $10 million in federal funds to repair the complex instead of replacing it with new homes. While the authority says the plan to demolish the complex remains alive, it's unclear when or if a market-rate redevelopment will move forward.

    This is not the first public housing rebuild to stall in San Francisco. Last month, federal officials approved plans to raze 600 World War II-era apartments at Potrero Terrace and Annex, only to have the Housing Authority and Bridge Housing struggle to secure a market-rate developer due to changing market conditions.