SAN FRANCISCO, Dec. 3, 2024 /PRNewswire/ — Freedom West Homes Corporation (“Freedom West”), a nonprofit limited-equity housing co-operative in the Fillmore District of San Francisco, announced the closing of predevelopment funding commitments from the San Francisco Foundation (SFF), Low Income Investment Fund (LIIF), and Menorah Park which has helped the organization surpass $30M in funding to-date raised to achieve operational stabilization and to prepare for it’s $2.3B revitalization plan known as Freedom West 2.0.

“LIIF supports this historic investment to drive economic parity in San Francisco’s once predominantly African American and Asian neighborhood.  We applaud the impact of the resident-led Freedom West 2.0 revitalization plan, a mixed-income, mixed-use masterplan development countering the dire effects of displacement that started in the mid-1950s,” said Daniel A. Nissenbaum, Chief Executive Officer at LIIF. “LIIF provided the first $250,000grant in support of the resident leaders and to catalyze other funders to participate.  We are now providing a $1.25M predevelopment loan under favorable terms to support this unique joint venture among the resident owners and Black-led private development team. This project will both increase the supply of affordable housing units and preserve multi-generational affordable housing stability for the long-term residents who could otherwise be displaced by gentrification and San Francisco’s strong housing market.”

The Freedom West 2.0 place-based development was featured at the November 20 Parity Zone Symposium 2024 as a model for potential replication and scale by others as a sample Parity Zone case study. A Parity Zone is a geographically defined area where a concentrated effort is made to bridge the economic divide and create equitable opportunities for all residents: a place where access to high-paying jobs, access to capital, quality education, and affordable housing in mixed-income communities converge to catalyze economic mobility.

The Symposium included discussions across four panels, initiated by McKinsey & Company’s Global CMO, Shelley Stewart III, highlighting research findings and amplifying the call to action in their 2024 The State of Black Residents report. Symposium co-hosts included SFF, LIIF, Institute for the Future (IFTF), Freedom West Homes, MacFarlane Partners, Avanath Capital Management, JP Morgan Chase, Bethel AME Church of SF, Common Spirit, Terner Labs, and Legacy First Partners.

The San Francisco Foundation was also recognized at the symposium for their $2.5M impact investment in Freedom West 2.0.

“We don’t usually fund individual projects, but this felt like an exception,” said Fred Blackwell,  San Francisco Foundation CEO. “We invested more than we usually do because we saw the transformative potential of Freedom West 2.0 — a vision that goes well beyond the bricks and mortar. Doing this the right way has the potential to impact systems change in San Fransisco, across the Bay Area, and beyond.”

The Parity Zone Symposium concluded with an announcement by the Institute for the Future, the world’s leading futures organization whose stated mission is to prepare the world to create better, more equitable futures by disrupting short-term thinking with visions of transformative possibilities. IFTF will take lead on the creation and management of the post-symposium working group task force, which will convene to document the findings from the Symposium, then refine and build out the Parity Zone framework to be published for the benefit of stakeholders across the country.

“We are excited and honored to support the work of Freedom West. Housing inequality is one of the key drivers of wealth inequality in the US, and Freedom West 2.0 offers an innovative model for achieving not only housing parity but also economic parity for low-income populations in a high-cost urban setting,” said IFTF Executive Director Marina Gorbis. “My hope is that this project will spur larger systemic changes in place-based economic development throughout the country.”

About Freedom West 
Freedom West Homes Corporation is a nonprofit housing cooperative comprised of 382 housing units located in the Fillmore District of San Francisco. In the late 1960s, in a period of civil turmoil, Rev. J. Austell Hall had a vision to preserve a portion of this neighborhood that was being threatened by the City’s urban renewal. From this vision, he established Freedom West with the objective of creating a safe, affordable community, protecting cultural diversity, and providing a source of social and economic empowerment through co-operative ownership. For additional information visit Freedom West Homes.

About MacFarlane Partners
MacFarlane Partners is a real estate investment management and development firm that acquires, develops and manages properties on behalf of some of the world’s largest pension plans and institutions. Founded in 1987, the firm pioneered the urban investment concept among institutional real estate investment managers in the 1990s and today is a leading investor and developer of properties that promote smart growth, urban revitalization and sustainability in urban and high-density suburban areas nationwide. It is headquartered in San Francisco and operates regional offices in Los Angeles and Seattle. For additional information, visit Macfarlane Partners.

MEDIA CONTACT
Julie Chase
(415) 710-7108
jchase@chasepr.com

What is Senate Bill 593 (SB 593)?

Senate Bill 593 (SB 593) is a legislation in San Francisco aimed at addressing the longstanding housing deficits caused by urban renewal policies of the mid-20th century. The bill proposes the construction of over 5,800 affordable housing units by utilizing a specific property tax trust fund. This funding strategy ensures that the necessary resources for housing construction are raised without impacting the city’s general fund, allowing the city to rebuild communities like the Fillmore District and Western Addition without compromising other municipal services.

The bill not only seeks to replenish the lost housing stock but also to promote economic revitalization in areas historically impacted by displacement policies. By rebuilding these communities, SB 593 aims to correct the injustices of past urban planning practices that disproportionately affected communities of color. This legislation is part of a broader effort to make San Francisco a more equitable and inclusive city, acknowledging the deep scars left by past redevelopment efforts and providing a pathway for those displaced to return to their communities.

What is the Purpose of SB 593?

Senate Bill 593 (SB 593) is designed to help rectify the housing crisis in San Francisco that stems from aggressive urban renewal programs that historically displaced thousands of residents in neighborhoods like the Fillmore District and Western Addition. This legislation aims to rebuild affordable housing units without compromising other city funds, by employing a tax increment financing method. SB 593 seeks to restore a significant portion of the housing stock lost during the mid-20th century and provide relief to communities that were disproportionately impacted by past urban renewal efforts, fostering economic revitalization and community repair.

The bill’s broader goal is to address social and racial injustices by prioritizing housing availability for communities of color that suffered the most from previous redevelopment policies. By increasing the supply of affordable housing and ensuring that the benefits of urban development are equitably shared, SB 593 supports not just the physical rebuilding of neighborhoods but also the healing of community ties. It represents a significant step towards reversing the harms of past displacement and setting a precedent for similar initiatives in other urban areas, promoting a sustainable and inclusive approach to urban planning.

About Senate Bill 593 (SB 593)

During the mid-20th century, urban renewal policies, backed by federal initiatives like the Housing Act of 1949, led to the demolition of culturally rich and diverse neighborhoods, ostensibly to combat urban decay but often resulting in significant displacement of Black, Filipino, Japanese, and Jewish communities.

The Fillmore District, once known as the “Harlem of the West,” epitomized this vibrant multiculturalism that was largely bulldozed in the name of progress, leaving a lasting impact on the community fabric and contributing to a housing crisis that persists to this day.

SB 593 leverages a tax increment financing structure that is crucial as it does not siphon off funds from the city’s general tax revenue, thereby supporting the construction of these housing units without compromising other city services. This legislative approach not only promises to replenish the lost housing stock but also aims to boost economic revitalization in these historically marginalized neighborhoods (KQED) (Local News Matters)

How Does SB 593 Impact Freedom West 2.0?

Freedom West 2.0 stands out as a cornerstone project under this new legislative framework. Originally established in the 1970s as a response to the urban renewal displacements, Freedom West is a housing cooperative that has provided affordable living spaces to its residents. The redevelopment plan for Freedom West 2.0 is ambitious, proposing the construction of nearly 2,400 new apartments along with retail spaces and public areas, which are designed to rejuvenate the community and provide substantial housing relief

This bill and its associated projects like Freedom West 2.0 are seen not just as housing initiatives but as acts of reparation, acknowledging the disproportionate impact that previous policies had on communities of color. By increasing the availability of affordable housing and potentially stabilizing the housing market, SB 593 hopes to provide a model for how urban centers can address historical injustices and work towards more inclusive and sustainable urban development (San Francisco YIMBY).

In summary, SB 593 is a transformative piece of legislation that seeks to rectify past harms through proactive urban planning and community investment, paving the way for a more equitable San Francisco.

Fast forward to the modern era, where San Francisco’s booming tech industry has further transformed the urban landscape, bringing with it a new set of challenges for maintaining the district’s diverse character amidst gentrification pressures. Freedom West 2.0 emerges from these challenges with a commitment to inclusive redevelopment. It is a transformative plan that seeks to honor the Fillmore District’s past while creating a sustainable future for its residents.

What is the Freedom West 2.0 Redevelopment Plan?

Freedom West 2.0 is a redevelopment plan for the Freedom West Cooperative Community in the Fillmore District of San Francisco. This plan includes a revitalization of the community itself, as well as commercial and residential additions that align with a 40-year economic self-sustainability plan.

For decades, the residents of Freedom West have faced the challenge of maintaining their co-op housing amidst soaring real estate values and the economic pressures of San Francisco’s highly competitive market. Initially, HUD and the city provided inadequate support for training and capital for building maintenance. By the late 1990s and early 2000s, the real estate dynamics of San Francisco shifted dramatically, favoring a primarily white, high-cost housing market and resulting in the displacement of many residents throughout the city.

A Visionary Plan for the Community

Recognizing the need for a redevelopment plan to save their community and secure a more sustainable future, the visionaries of Freedom West 2.0 embarked with an ambitious goal to design a 40-year economic self-sustainability plan. The plan includes redeveloping Freedom West with commercial and retail spaces and market-rate housing to generate income to the community, all while ensuring no additional monthly housing cost burdens for the residents aside from a modest 3% annual increase.

Unlike the urban renewal projects of the past, Freedom West 2.0 is predicated on the community’s input in the design and development plan, ensuring that the residents’ voices are heard, and their needs met.

Economic Self-Sustainability and Innovation

In addition to the addition of market-rate housing and commercial spaces, Freedom West 2.0 also includes the development of a STEM-focused Innovation Center that will provide residents with job training, entrepreneurship skills, and access to capital to help them participate in the 21^st Century economy. This initiative directly addresses the wealth gap and income disparity, with the goal of fostering a thriving community.

This initiative bridges a previous gap between the community and the tech industry, which historically had detrimental impacts on the integrity of the community. With Freedom West 2.0 and the innovation center, residents will become connected to job opportunities generated by businesses in the neighborhood, creating a more equitable innovation ecosystem in the Fillmore District.

The Community’s Thriving Future

Spanning 10 acres, the project promises that as the neighborhood prospers, the residents will share in the profits. It represents a transformative way to approach development, aligning developers with community members and creating an opportunity where both sides benefit from the wealth that the new development will generate.

This approach does involve more risk, but its stakeholders anticipate a positive social and economic value.

A Transformative Model for Urban Development & Cooperative Communities

Freedom West 2.0 is more than a redevelopment plan; it’s a blueprint for a future where communities can retain their identity while evolving with the times. It is a testament to what is possible when developers and residents work together to build not just buildings, but the foundations of a vibrant and inclusive community.

Freedom West 2.0 is a model for community-driven development that could inspire similar projects around the globe. It is a bold move toward a future where economic growth and community wellbeing are not mutually exclusive but are instead, interdependent and mutually reinforcing.

 SAN FRANCISCO (Nov. 1, 2023) – Freedom West Homes Corporation (“Freedom West”), a nonprofit limited equity housing co-operative in the Fillmore District of San Francisco, announced today $27M in funding commitments to-date to catalyze its revitalization providing low-income families of color with housing stability and the preservation of multi-generational wealth transfer of co-op housing ownership in the second-most expensive city to live in the United States. 

 “The 50th Anniversary of Freedom West is an important milestone for the generations of families who have lived here and will continue to, as well as for the City to acknowledge and support the community of residents who have always called the Fillmore home,” said San Francisco Mayor London Breed. “The Freedom West community, its partners, the 

developers, and neighbors are committed to the shared vision of Freedom West 2.0 that 

The funding milestone, including the latest impact investment of $5 million in Freedom West 2.0 from CommonSpirit, was celebrated this past Saturday October 28th at the Freedom West 50th Anniversary. The event was attended by Freedom West residents, industry and community leaders with city and state government dignitaries, including Senator Scott Wiener, former Mayor Willie Brown, and Mayor London Breed who gave an official proclamation declaring October 28th, 2023 Freedom West Day in San Francisco. 

“Communities of color have been hit hardest by redevelopment and our housing crisis,” said Senator Wiener, author of SB593 the San Francisco Housing Replacement Act, which was signed into law by Governor Gavin Newsom earlier this month, in his keynote. . “This bill is about opening the door to justice for them, and about helping our City meet its state-mandated housing goals. SB 593 can provide the pathway to the funding needed to enable community driven projects like Freedom West to combine with private capital needed to preserve and build affordable housing so that low-income people of color can remain in, and more families can return to, San Francisco.” 

SB 593 creates a tax increment financing structure to replace 5,800 affordable homes San Francisco lost during the Urban Renewal” when neighborhoods suffered widespread clearance, mass demolition, and relocation of communities, particularly lower income communities and communities of color like the Fillmore / Western Addition where Freedom West is located. 

“Prior to SB 593 there has been no city, state or federal funding available for housing co-ops in California,” said Victor MacFarlane, Founder and Executive Chairman of MacFarlane Partners, the exclusive master development partner for Freedom West 2.0. “With this critical legislative victory and the commitment of our capital partners, we have achieved a public-private partnership model that will preserve and deliver to the Freedom West residents the long-term housing stability and economic self-sustainability originally promised to them 50 years ago.” 

The nonprofit housing co-op was originally sponsored and built by Bethel AME Church in 1973 in the wake of government-sponsored Urban Renewal in the 1950s and 1960s which devastated the Fillmore/Western Addition neighborhood by displacing more than 20,000 residents and closing over 800 businesses, most of whom were never able to return. 

“SB 593 will help right the wrongs of the past by funding the preservation and rebuilding of affordable housing while also sparking the economic revitalization needed to create an equitable and sustainable future for our residents of color,” said Mattie Scott, president of Freedom West Homes. “We are forever grateful to Senator Wiener and Governor Newsom for their undying commitment to help rebuild our community.” 

The Freedom West 2.0 revitalization plan will rebuild all 382 units of affordable housing while also adding additional affordable rental units and 20,000 square feet of commercial real estate to be owned by the co-op. This expansion to the Freedom West community will create additional sources of long-term revenue. Plans for the commercial space include a 6,000-square-foot state-of-the art STEM Innovation Center designed to provide residents and the surrounding community with access to the equipment, training, employers, and funding needed to secure high-paying jobs and entrepreneurship opportunities in the 21st Century tech and science-driven economy. 

The $27M in funding commitments that have enabled Freedom West to achieve operational stabilization and prepare for Freedom West 2.0 revitalization were highlighted during the partner recognition segment of the Freedom West 50th Year Anniversary Celebration this past Saturday. Funding partners to date include Bethel AME Church, JP Morgan Chase, MacFarlane Partners, Avanath Capital Management who also serves as co-development partner and property manager for Freedom West, Low Income Investment Fund, Common Spirit, The San Francisco Foundation, Menorah Park and the City of San Francisco.

About Freedom West 

Freedom West Homes Corporation is a nonprofit housing cooperative comprised of 382 housing units located in the Fillmore District of San Francisco. In the late 1960s, in a period of civil turmoil, Rev. J. Austell Hall had a vision to preserve a portion of this neighborhood that was being threatened by the City’s urban renewal. From this vision, he established Freedom West with the objective of creating a safe, affordable community, protecting cultural diversity, and providing a source of social and economic empowerment through co-operative ownership. For additional information visit Freedom West Homes. 

About MacFarlane Partners 

MacFarlane Partners is a real estate investment management and development firm that acquires, develops and manages properties on behalf of some of the world’s largest pension plans and institutions. Founded in 1987, the firm pioneered the urban investment concept among institutional real estate investment managers in the 1990s and today is a leading investor and developer of properties that promote smart growth, urban revitalization and sustainability in urban and high-density suburban areas nationwide. It is headquartered in San Francisco and operates regional offices in Los Angeles and Seattle. For additional information, visit Macfarlane Partners. 

About Avanath Capital Management 

Avanath Capital Management is a privately held, vertically integrated investment firm managing real estate and real estate-related investments generating risk-adjusted returns through current income and capital appreciation from its investments. Founded by Daryl J. Carter, the firm is led by a management team that averages 25 years of experience and that has successfully guided investment funds in defining growth opportunities. 

Contact jchase@chasepr.com for additional images with Mayor Breed, Sen. Wiener and others at the event. 

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